We Help You Achieve Unimaginable Improvements in Your Products and Processes by Eliminating Defects and Waste.
Operational Excellence is defined as the relentless pursuit of finding ways to improve performance and profitability. Besides Service Excellence, this means that companies that produce products also need to find ways to manufacture reliable and defect free products.
Service and product excellence need to be a key priority because they are directly linked to the customer experience a company provides. Equally important is also the focus on your bottom line performance.
Stagnant or declining profit margins can be a sign of inefficiency and loss of productivity in your organization. The pursuit of Operational Excellence should therefore focus on processes that perhaps aren’t directly linked to the customer experience but do impact your profit margins. This includes operational processes in addition to corporate functions like human resources, finance, sales & marketing.
Operational Excellence is a competitive differentiator. In addition to improved customer experience, improving your profit margins will give you the ability to make cash funds free to invest in your growth initiatives.
Many processes run at a high error rate (often without people realizing it) and there are bound to be a few processes where there is significant cost savings to be gained, fast! It doesn’t matter if you are public, private, non-profit or government, you need this money to fund your growth initiatives. It is there for you to grab and in the beginning of an operational excellence improvement initiative, there is a lot of low hanging fruit like this.
Cost of Poor Quality
Don’t be ignorant about the cost of poor quality. It is everywhere and in amounts higher than you think. Here are some examples to consider, all of which are a result of inefficiencies and inconsistencies in how processes operate:
- Loss of customers and/or referrals
- Product returns
- Inspection costs
- Warranty costs
- Delivery delays
- Invoice errors
- Unqualified leads
- Human errors/variation
- Expediting costs
- Excess inventory
- Increased travel expenses
- Variation in profit per retail store/business unit
- Price erosion
Millions of dollars are wasted on all of these costs. Executives need to recognize and acknowledge that the cost of poor quality also exists in their own companies.