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Operational Excellence: the basic principles

Operational Excellence is an important topic for organizations when it comes to achieving efficiency and effectiveness. It represents the philosophy in which all aspects of an organization are optimized in order to create maximum value for customers and stakeholders. But what are the basic principles of Operational Excellence and why is it so important?


Totus Consultancy
operational excellence

Definition of Operational Excellence

Operational Excellence is a way of working in which the entire organization is focused on optimizing processes to create value for customers and stakeholders. It's about continuously improving processes, eliminating waste and striving for perfection.


Why Operational Excellence is important

Operational Excellence is important because it can help reduce costs, improve the quality of products or services, increase customer satisfaction and create a more agile organization. By applying the principles of Operational Excellence, an organization can work more efficiently and effectively and adapt better to changing circumstances.


Basic principles of Operational Excellence

There are several principles of Operational Excellence that can help improve the performance of an organization. Some of the key principles are discussed below:

  1. Eliminate waste: Waste in processes can lead to unnecessary costs, delays and quality problems. By eliminating waste, an organization can work more efficiently and create value for customers and stakeholders. Some examples of waste are overproduction, unnecessary movement of people or materials, waiting, and errors.

  2. Implement continuous improvement: Continuous improvement is an important principle of Operational Excellence. It concerns the systematic and structured improvement of processes and the involvement of employees in this. By continuously learning and improving, an organization can improve its performance and competitive advantage.

  3. Promote collaboration: Collaboration between departments, teams and employees is essential for achieving Operational Excellence. By working together and communicating, processes can connect seamlessly and more value can be created for customers and stakeholders.

  4. Striving for perfection: The pursuit of perfection is an important principle of Operational Excellence. It is about continuously improving the performance of an organization, striving for the highest quality, efficiency and customer satisfaction.

Examples of companies that have applied Operational Excellence

There are many examples of companies that have been successful in implementing the principles of Operational Excellence. Toyota is a well-known example of a company that has applied the principles of Operational Excellence, and McDonald's, Ikea, Hema, Aldi and Wal-Mart are also known for successfully applying Operational Excellence.

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