by
Jim Pinto
The future manufacturing operation
will not be just a "factory", but rather a completely integrated business enterprise
using the methods of Operational Excellence (OE). This is a discipline of leadership,
teamwork and problem solving that achieves continuous improvement through empowering
all employees and optimizing all activities in the business process.
OE is a holistic approach to realizing
efficiencies in all parts of a business, adding value at every step - from innovation,
to design and development, to testing, manufacturing, logistics and services.
Toyota has turned OE into a strategic
weapon, based on quality improvement methods made famous in the manufacturing world
- just-in-time, kaizen, one-piece flow and similar disciplines. OE also changes
management for every part of the enterprise.
To succeed, top management must have
an intimate understanding of the human side of change management - alignment of
the company's culture, values, people and behaviors that bring desired results on
a continuing basis. Planning does not capture value; value is realized only through
the sustained, collective actions of all employees who are responsible for designing,
executing and working within the changed environment.
Change may appear externally to be
about changing jobs, places, products. But actually, it occurs first inside people's
heads. Excellence can only be achieved by understanding and shaping this invisible
element. The goal of Operational Excellence is to make manufacturing the vital heart
of a high-value enterprise.
