Most companies want to be part of a continuous improvement process that will allow them to continue to grow while limiting costs, in order to better resist their competitors. Such a strategy requires a multitude of transformations at different levels (management, teams, individual behaviors, etc.). It is also based on an approach calledoperational excellence. Here are some details that may be useful to you on this subject.
What is this concept?
You may be surprised to learn that there is no official definition of operational excellence. In practice, and regardless of the sector of activity, this notion is associated with the ability to implement principles and processes that allow production in accordance with customer expectations with maximum profitability. It also includes various methods aimed at achieving the best possible productivity. It is therefore a real growth lever for companies. It boosts production, while reducing potential operational risks. To assess the relevance of its implementation, there are several systems such as the EFQM model, six sigma or “lean management”, to name only the best known. This approach must be shared by all of the company’s players in order to achieve its full potential. This will allow it to become an integral part of the internal philosophy. Operational excellence is based on solid processes whose quality is certainly no longer in question. Some can be described as fundamental and require the definition of an action plan to maximize their natural effectiveness. Three of them will be detailed in the following paragraphs.
Manage work standards
In an industrial environment, the documentation of manufacturing principles or decision making circuits is essential. Each work standard must also be documented. Indeed, it is precious that each task performed by the operators is described (as well as all the phases that constitute it), especially those that will have a direct impact on the reduction of risks affecting the overall productivity of the teams and the company (manufacturing delays, non-conforming products, various wastes, etc.). Such information must also be updated in line with changes in products, working methodologies, resources available to produce them and changes in the system or technology present in the working environment. Without this monitoring, the standards will quickly lose their effectiveness over time. The digitization of these documents makes it possible to face this challenge. It also contributes to a better dissemination of information to the various actors. The management of work standards can also be considered as one of the steps of “lean management”.A tool to reach
operational excellence at work?
A3 methods
They owe their name to the famous paper format equivalent to twice the size of an A4 sheet. The A3 system is a grouping of methods for solving problems. It is essentially based on the breakdown of difficulties and its operation is based on six stages:
- The first step is to clearly identify the problem and all its components (origins, consequences on the sectors of activity, etc.).
- Secondly, it is essential to make a precise inventory and define the objectives to be reached.
- The next step is to focus your attention on the causes of the current problem. Analyze them precisely to understand their real impact.
- It is then possible to solve the difficulty. Identify at least five potential solutions. Then rank them according to the importance of their impacts.
- An action plan for the implementation of the decisions you have chosen can be defined. Try to be as precise as possible from now on.
- The last phase of this process consists of following up on the corrective actions. Are they having the desired effect on the issue in question or do they need to be adjusted?
Reducing waste
Operational excellence also means reducing (or even eliminating outright) the waste generated by production and thereby reducing costs. This waste is of different kinds. Seven main families can be distinguished:- Overstock: refers to “dormant” or “dead” stocks. This is indicative of a dysfunction in the balance of supply management, finished product production and delivery.
- Overproduction: as the name suggests, this is the production of more parts than are actually ordered. This will almost inevitably lead to overstocking.
- Unnecessary transport: this is common on sites with several storage locations. This often requires the displacement of raw materials, resulting in unnecessary consumption of time, resources and technology.
- Unnecessary travel: the focus is on the workstation. If the space is poorly organized or not ergonomic, then staff are forced to move around, which wastes time and increases the risk of a work-related accident.
- Over-processing: this typically refers to all tasks without any real added value.
- Waiting times between tasks: they must be reduced to a minimum.
- The manufacture of non-conforming parts: it directly affects the profitability and reputation of the company. Rejection rates should also be as low as possible.