What is Operational Excellence?
OE is a robust and proven methodology to bring the entire Sales and Operations Planning cycle to World Class Standards based on Oliver Wight Process Principals, through which the executive/leadership team continually achieves focus, alignment and synchronization among all functions of the organization.
What are some of the benefits?
A Sales and Operations process to review, reconcile, re-calibrate and re-communicate the total company operating plan. Customer on time delivery, Inventory accuracy, supplier performance and manufacturing schedule all above 95% accuracy.
Who has used it?
Customers benefiting from OE and attaining World Class Standards include 3M, Caterpillar, Heinz and Pfizer.
How do you execute an Operational Excellence Project?
- Develop a Class A Check List based on Oliver Wight Process Principals on functions and performance metrics.
- Develop a Level 2 Audit check list based on major functions with 100 + checkpoints.
- Create a project Task Team by department.
- Perform an initial audit by function to measure performance based on a scale of 1-5. Perform audits every 3 months to measure progress.
- Identify Areas of improvement with the task team and consultants.
- Ensure a ROI analysis is performed on improvements to clarify business priorities.
- Hold weekly and monthly executive Project meetings to provide status and make sure any issues are escalated.
- Improve Audits and Performance metrics until World Class Standards are attained.
Sounds straight forward and simple? It will take a 100% commitment from your CEO, executives and users to optimize your S&OP process. This will revolutionize your business and bring it to World Class Standards.
Terry Vermeylen is a Project Manager, Business Optimization, SAP and Supply Chain expert that has advised the US Navy, spoken at conferences, lost his soul a few times, and inspired teams to the point that they want to hug him.