Why Deploy an Operational Excellence Program

why-deploy-an-operational-excellence-programSo you want to implement an operational excellence program. Before you take any action step back and ask yourself “Why?”

In our years of practice we have seen Operational Excellence (OpEx) deployments implemented for a variety of reasons.

In working with executives at various fortune 500 companies we have found that the most commonly quoted reasons for “Why?” to deploy an improvement program are:

  • “I need to provide all employees with training in Six Sigma and Lean tools”
  • “We need to develop and work a constant flow of projects in every department”
  • “We need to help change the culture of the company”
  • “I have to do something to get these costs down”
  • “We want to improve the way that people do their work”
  • “I want to unleash the creative power of the employees”

Which of these is the proper purpose for a deployment? While each executive was well intentioned, none of the statements above define the proper reason for “why deploy an operational excellence program”.

Does the purpose of an operational excellence program matter?

Yes! As Yogi Berra said “if you don’t know where you’re going, you’ll end up someplace else.” Defining the purpose of your program is the first of many critical decisions you will make.

Think of your purpose as the North Star of your program. Once you set sail in the implementation, things will get rough and confusing. You will be forced to make decisions that could compromise the overall success of the program. You need a stable, logical point of reference to unite everyone and help them make the right decisions.

What is the proper purpose?

The only two reasons to deploy an operational excellence program is that it will help:

  1. Create value for your customers
  2. Increase the profitability of your organization

To test if these purposes are valid ask yourself, If my company succeeded in “providing all employees with training in Six Sigma and Lean tools” would I feel confident that the program would be funded during a market downturn?

*feel free to replace the quoted words with whatever you feel is the purpose of your deployment program*

Improving value for the customer is the only thing that will keep you in business and increasing your profitability is what keeps shareholders invested.

If you are honest, the only reason that the deployed program will be supported when budgets get tight will be if there is direct evidence that it is helping the company achieve significantly better results. If it is not part of the solution, it will die as one of the problems. We have seen multiple programs drastically defunded or terminated because leadership did not see them as achieving significant real financial improvement or creating value for the customer.

At the first market down turn misdirected programs are the first departments to be cut. Surprisingly, shortly after the market turns positive again, companies buy into another deployment or “flavor of the month” and the deployment carousel will continue to turn. Our goal is to keep you from becoming the flavor of the month and help you implement a program that delivers value to customer and improves profitability.

“Why” is not “How”

We have answered the first question “why deploy”, the next question is “how to successfully deploy and operational excellence program”. This is difficult to accomplish but exponentially beneficial when done well. To be successful, each deployment must be customized to the needs of the individual company and managed using key principles.

You must understand that an operational excellence deployment is a complicated system defined by six key components. Understanding these are essential to helping you design and deploy a program that will achieve its purpose.

Learn how we make deploying an operational excellence program easier for you

About Scott Payne

Scott Payne: MBA, PMP, LSSBB, is co-founder and managing partner of PM Master Prep and author of the PMP Exam prep book "PMP Exam Master Prep". PM Master Prep is a brand of Lean Sigma Corporation where Scott also serves as a managing partner. Scott's continuous improvement and process excellence background is 15 years deep and comprised of experience designing and deploying lean six sigma and kaizen improvement programs within multiple Fortune 500 companies. As a deployment expert, Scott has designed, implemented, and managed multi-site kaizen improvement programs, generating $20+ million in annual savings, in multiple industries. An experienced facilitator and Black Belt, Scott has had oversight of six sigma project portfolios as large as 40 concurrent projects and facilitated 50+ value stream mapping and kaizen events. He is a systems engineer by education earning his Bachelor of Science degree from the United States Merchant Marine Academy while also lettering 4 years as an NCAA division III swimmer. An MBA graduate of the College of William and Mary, Scott has earned his Six Sigma Black Belt certification from Villanova University, Certification in Lean Practice from Old Dominion University, and Theory of Constraints Project Management Technical Expert certification from the AGI-Goldratt Institute.

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