Operations Excellence and Continuous Improvement Culture in Operational Excellence Kit (Publication Date: 2024/02)

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Discover Insights, Make Informed Decisions, and Stay Ahead of the Curve:



  • What percentage, on average, does your organization have in shared services for areas?
  • What are the biggest obstacles to your organization in achieving operational excellence, in your view?
  • How is your operational function aligning to support your organizations strategy for growth?


  • Key Features:


    • Comprehensive set of 1530 prioritized Operations Excellence requirements.
    • Extensive coverage of 89 Operations Excellence topic scopes.
    • In-depth analysis of 89 Operations Excellence step-by-step solutions, benefits, BHAGs.
    • Detailed examination of 89 Operations Excellence case studies and use cases.

    • Digital download upon purchase.
    • Enjoy lifetime document updates included with your purchase.
    • Benefit from a fully editable and customizable Excel format.
    • Trusted and utilized by over 10,000 organizations.

    • Covering: Value Stream Mapping, Team Building, Cost Control, Performance Measurement, Operational Strategies, Measurement And Analysis, Performance Evaluation, Lean Principles, Performance Improvement, Lean Thinking, Business Transformation, Strategic Planning, Standard Work, Supply Chain Management, Continuous Monitoring, Policy Deployment, Error Reduction, Gemba Walks, Agile Methodologies, Priority Setting, Kaizen Events, Leadership Support, Process Control, Organizational Goals, Operational Metrics, Error Proofing, Quality Management, Productivity Improvement, Operational Costs, Change Leadership, Quality Systems, Operational Effectiveness, Training And Development, Employee Engagement, Quality Improvement, Data Analysis, Supplier Development, Continual Improvement, Data Integrity, Goal Alignment, Continuous Learning, People Management, Operational Excellence, Training Systems, Supply Chain Optimization, Cost Reduction, Root Cause Identification, Risk Assessment, Process Standardization, Coaching And Mentoring, Problem Prevention, Problem Solving, Variation Reduction, Process Monitoring, Value Analysis, Standardized Work Instructions, Performance Tracking, Operations Excellence, Quality Circles, Feedback Loops, Business Process Reengineering, Process Efficiency, Project Management, Goal Setting, Risk Mitigation, Process Integration, Strategic Alignment, Workflow Improvement, Customer Focus, Quality Assurance, Quality Control, Risk Management, Process Auditing, Value Add, Statistical Process Control, Customer Satisfaction, Resource Allocation, Goal Implementation, Waste Elimination, Process Mapping, Cost Savings, Visual Management, Time Reduction, Supplier Relations, Stakeholder Management, Root Cause Analysis, Project Planning, Time Management, Operations Management




    Operations Excellence Assessment Dataset - Utilization, Solutions, Advantages, BHAG (Big Hairy Audacious Goal):


    Operations Excellence

    Operations Excellence refers to the efficient management of a company′s resources and processes in order to achieve high performance and productivity. A shared services model involves centrally organizing support functions within an organization to increase efficiency and reduce costs. The percentage of shared services within an organization can vary, but on average, it is around 60-70%.


    1. Implement cross-functional teams: Encourages collaboration and knowledge sharing for continuous improvement.
    2. Utilize lean principles: Reduces waste, improves efficiency, and standardizes processes.
    3. Use data-driven decision making: Provides insights for identifying areas of improvement and measuring progress.
    4. Conduct regular training and development: Equips employees with necessary skills for process improvement.
    5. Establish a culture of innovation: Encourages employees to continuously seek ways to improve processes.
    6. Regularly review and update processes: Ensures processes are aligned with business goals and evolving needs.
    7. Implement process automation: Increases speed and accuracy while reducing human error.
    8. Encourage feedback and suggestions from all employees: Promotes a sense of ownership and encourages participation.

    CONTROL QUESTION: What percentage, on average, does the organization have in shared services for areas?


    Big Hairy Audacious Goal (BHAG) for 10 years from now:

    In 10 years, our goal for Operations Excellence is to have at least 90% of our organization′s departments and functions operating under shared services. This means having centralized, efficient processes and systems in place for areas such as IT, accounting and finance, human resources, supply chain management, and customer service. By streamlining our operations and reducing redundancy, we aim to see a significant increase in overall productivity, cost savings, and customer satisfaction. This ambitious goal will require strong collaboration and cooperation across all teams and departments, but we believe it is crucial for achieving sustainable growth and success in the long term.

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    Operations Excellence Case Study/Use Case example - How to use:



    Case Study: Improving Operations Excellence through Shared Services at XYZ corporation

    Synopsis of Client Situation:
    XYZ corporation is a large multinational company that operates in various industries including manufacturing, retail, and technology. The company has multiple business units across different regions, resulting in a fragmented organizational structure with siloed functions. Each business unit had its own support services and back-office functions, leading to duplication of efforts and increased operational costs. Due to the lack of standardization and coordination, the company faced challenges in effectively managing resources, implementing best practices, and achieving operational excellence.

    The senior leadership at XYZ corporation recognized the need to improve operations by leveraging shared services for non-core functions. They wanted to simplify the organizational structure, streamline processes, and achieve cost savings while maintaining high-quality service delivery. To achieve this, they engaged a management consulting firm to help them design and implement a shared services model.

    Consulting Methodology:
    The consulting firm followed a six-step methodology to identify the most suitable shared services model for XYZ corporation.

    Step 1: Assessment and Analysis
    The first step involved conducting a comprehensive assessment of the company′s current operations and identifying areas that could benefit from centralization. This included analyzing the existing organizational structure, business processes, and performance metrics.

    Step 2: Benchmarking and Best Practices
    In this step, the consulting team benchmarked XYZ corporation′s performance against industry peers and identified best practices from leading organizations that could be implemented in the shared services model.

    Step 3: Designing the Shared Services Model
    Based on the assessment and benchmarking results, the consulting team designed a shared services model that would centralize specific functions such as finance, IT, procurement, human resources, and customer service. The model included a governance framework, service level agreements, and a communication plan for effective implementation.

    Step 4: Change Management
    The success of the shared services implementation depended on the acceptance and adoption by key stakeholders. Hence, the consulting team worked closely with the leadership team to develop a change management plan that would address any resistance to change and ensure smooth implementation.

    Step 5: Implementation and Integration
    In this step, the shared services model was piloted in one business unit to test its effectiveness before rolling it out across all units. The consulting team worked closely with the shared services team to ensure seamless integration and enable a smooth transition of processes and tasks.

    Step 6: Continuous Improvement
    Once the shared services model was fully implemented, the consulting team continued to provide support to monitor its performance and make necessary improvements to optimize its effectiveness.

    Deliverables:
    • Assessment report highlighting areas for centralization and cost savings opportunities
    • Shared Services model design document
    • Change management plan
    • Governance framework and service level agreements
    • Communication plan
    • Training materials for shared services team
    • Performance dashboard with KPIs to measure the success of the shared services model

    Implementation Challenges:
    The primary challenge faced during the implementation of shared services at XYZ corporation was resistance to change. Many employees were hesitant to let go of their traditional roles and feared job loss due to centralization. To address this, the consulting team included key stakeholders in the design and planning process and communicated regularly with employees to address concerns and build trust. The change management plan also included training and upskilling programs to equip employees with the necessary skills to thrive in the new shared services model.

    Key Performance Indicators (KPIs):
    The success of the shared services model at XYZ corporation was measured through the following KPIs:
    • Cost savings achieved through centralization of functions
    • Decrease in processing time for back-office functions
    • Increase in customer satisfaction levels
    • Improvement in service level agreements
    • Efficiency gains through standardization and automation of processes

    Management Considerations:
    To ensure the sustainability of the shared services model, XYZ corporation′s leadership had to consider the following:
    • Regular review of processes to identify opportunities for improvement and streamline operations
    • Ongoing training and upskilling to keep employees updated with new technologies and best practices
    • Continuous communication with stakeholders and addressing any concerns or resistance to change
    • Periodic benchmarking against industry peers to identify any gaps and incorporate best practices

    Conclusion:
    Through the implementation of a shared services model, XYZ corporation was able to reduce operational costs by 20%, streamline processes, and achieve greater efficiency. The centralized support functions also enabled the company to focus on core business objectives and drive innovation. The success of the shared services model is evident from the continued expansion of centralized functions across all business units at XYZ corporation. This case study highlights the importance of leveraging shared services to enhance operations excellence and achieve sustainable growth.

    References:
    1. Deloitte (2019). The Rise of Shared Services: Driven by Globalization and Digitization. Available at: https://www2.deloitte.com/us/en/insights/industry/manufacturing/trends-in-shared-services-functions.html
    2. McKinsey & Company (2019). From Cost Efficiency to Value Creation: Reimagining Shared Services. Available at: https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/from-cost-efficiency-to-value-creation-reimagining-shared-services
    3. Forbes (2021). How Shared Services Improve Operational Excellence. Available at: https://www.forbes.com/sites/sap/2021/04/08/how-shared-services-improve-operational-excellence/?sh=61ae681c5745

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