OpEx, or Operational Excellence, is a tactical methodology that focuses on efficiently using resources to achieve an organizational objective. In this case, that would be Six Sigma quality in manufacturing or lean distribution.
In its purest form, Operational Excellence is a set of core values and guidelines engineers can use to assess their company’s efficiency, identify areas for improvement, and streamline processes. The goal is to maximize throughput while minimizing waste and overhead costs.
The following article will explain about OpEx Six Sigma learning and its benefits to the organization, management, and training, such as the Business Excellence Model (BEM).
What is Operational Excellence?
Operational Excellence is a set of values and guidelines used to assess an organization’s efficiency and identify areas for improvement. Optimization aims to maximize throughput while minimizing waste and overhead costs.
It is a tactical methodology that focuses on six sigma quality in manufacturing or lean distribution.
What is Six Sigma?
Six Sigma is a business process that has three goals in mind:
1) Define a process so that it is repeatable.
2) Make the process predictable, so there are no surprises.
3) Improve quality while lowering costs.
In other words, Six Sigma focuses on increasing customer satisfaction by eliminating defects in processes. It is done through several tactics, such as optimal resource allocation and accurate forecasting. An organization must first design a process and set goals using the DMAIC (Define, Measure, Analyze, Improve, and Control) methodology to reach these goals.
What is OpEx Six Sigma, and Why Do You Need It?
Operational Excellence focuses on efficiently using resources to achieve an organizational objective. In this case, that would be Six Sigma quality in manufacturing or lean distribution.
Just as Six Sigma can measure process quality levels, Operational Excellence can pinpoint areas where waste occurs and map out the most efficient way for completing a transaction.
For example, OpEx can help you identify how many people are needed to staff a particular machine at different times of the day. It ensures that employees aren’t overworked and production levels remain high.
At its most basic level, Operational Excellence is a set of core values, and guidelines engineers and managers can use to assess their company’s efficiency.
Here are the benefits of OpEx Six Sigma learning.
1. Increase efficiency
According to reports, 62 percent of organizations have up to 25 percent of their business processes modeled.
Optimizing resources can help you achieve higher quality levels while lowering costs. It is essential because high-quality products with lower costs are more attractive to existing and potential customers alike.
2. Improve Your Strategic Position
Improving your operational efficiency means that you will be able to maintain a competitive advantage over your competitors, who may still be stuck in old-fashioned, inefficient ways of thinking.
3. Cut Costs
If you can improve efficiency by 20 percent and lower costs by the same amount, that means you’ll see a return on investment (ROI) of 20 percent. That’s pretty good for two years!
4. Gain Visibility into the Company’s Operations
The more transparent your operations, the easier it will be to identify any opportunities for improvement.
5. Create a System that Can Scale and Grow as Your Business Grows
If you create a system where the company can grow as fast as its customers want, you won’t have to worry about your business slowing down. Instead, you’ll be able to scale along with demand.
6. Gain Competitive Advantage
When your business is the only one that can effectively execute on Operational Excellence, you’ll gain market share and momentum. You’ll also be able to set yourself apart from your competitors who are still stuck in the past!
How Does OpExSix Sigma Work?
OpEx Six Sigma is a process that runs in the following way.
Identify Target Area of Enhancement
Once an operational area has been identified, the process begins by defining specific goals for that target area of enhancement. These areas can include everything from inventory management to delivery times to the performance of machines.
Measure the Current State of the Process
Next, you want to figure out where and when things aren’t working correctly and how much improvement is needed to succeed. Finding this information can be quickly done with tools like customer surveys and walkthroughs of current processes to ensure accuracy.
Create the Optimized System
Now that you have your goals and the current state of the process, it’s time to create a new system. It can be done by mapping out all tasks required for that system to work correctly.
It’s important not to focus on just one area or aspect of the process during this step. Instead, map out and document every step. It’s also important to consider each step as a potential opportunity for improvement. Once you have your optimized system, it’s time to implement it.