{"id":35556,"date":"2018-03-05T13:05:02","date_gmt":"2018-03-05T13:05:02","guid":{"rendered":"https:\/\/staging.kepner-tregoe.com\/resources\/white-papers\/operational-excellence-through-organizational-discipline\/"},"modified":"2025-07-16T09:47:24","modified_gmt":"2025-07-16T09:47:24","slug":"operational-excellence-through-organizational-discipline","status":"publish","type":"white-paper","link":"https:\/\/staging.kepner-tregoe.com\/de\/ressourcen\/whitepapers\/operational-excellence-through-organizational-discipline\/","title":{"rendered":"Operational Excellence through Organizational Discipline"},"content":{"rendered":"

Operational Excellence is a broad term that encompasses a variety of programs and\u00a0initiatives. Improvements often occur with Lean, or Six Sigma, initiatives that are\u00a0designed to fix problems, eliminate waste and create consistency in standardized\u00a0processes.<\/p>\n

Operational excellence is much more than these approaches, however, and includes a continuous desire to\u00a0improve company operations and productivity. It is a process that requires innovation with both employee\u00a0and customer engagement to create continuous improvement.<\/p>\n

Manufacturing organizations have cultures that thrive on routine and consistency and often have difficulty\u00a0changing the mindset of \u201cthat\u2019s the way we\u2019ve always done it\u201d to adjust procedures and strive for further\u00a0performance improvement. Sometimes, an external prompt is helpful to avoid being \u201cstuck in a rut\u201d and focus\u00a0your attention on the future. The Kepner-Tregoe (KT) approach leverages the knowledge of your site staff\u00a0about the issues, and challenges your employees to develop solutions to overcome them. KT can help you\u00a0identify and address the specific problems that must be resolved to experience the perfect run and perfect\u00a0day and achieve the operational excellence you have envisioned.<\/p>\n

Root-Cause & Problem-Solving Fundamentals<\/h4>\n

Operational excellence is a journey, not a sole destination. As you travel this path, there are a variety of skills,\u00a0techniques and methods you will employ to help address the unique situations you encounter. Key to this,\u00a0and underpinning every operational excellence journey, are the fundamentals of root-cause analysis and\u00a0problem solving.<\/p>\n

Root-Cause Analysis<\/span><\/h4>\n

There are several reasons for the current operational methods and outcomes at your organization, and an equal number of reasons your manufacturing operations are not perfect. Root-cause analysis requires separating the symptoms from the causes, understanding how the various components interact with each other and determining where improvements must be made.<\/p>\n

Modern manufacturing operations are complex \u2013 a change in one place could impact the entire system.<\/p><\/blockquote>\n

Understanding the true root cause of most issues requires untangling complex systems and their\u00a0dependencies \u2013 often including the participation of multiple parties that must be coordinated. The impacts\u00a0of both the original issue and any corrective activities can be widespread. The risk of being wrong about the\u00a0root cause and\/or not understanding the consequences of resolution options can lead to solutions being\u00a0implemented that aren\u2019t in the best interest of the company. In some cases, fixing the root cause of the issue\u00a0might not be the best solution.<\/p>\n

\"\"<\/p>\n

Problem Solving<\/span><\/h4>\n

Problems in manufacturing operations\u00a0should not be (but often are) solved in\u00a0isolation or on a blank sheet of paper \u2013\u00a0problems have context and a history that\u00a0must be considered. Applying analysis,\u00a0innovation and creativity to the problemsolving\u00a0process can help your employees\u00a0look beyond the obvious to discover\u00a0the truly impactful opportunities for\u00a0improvement. Data, problem-solving\u00a0processes and structured decisionmaking\u00a0techniques are all helpful\u00a0inputs to enable your employees to\u00a0understand the overall environment in\u00a0which problems exist, and apply their\u00a0knowledge and experience to develop\u00a0solutions.<\/p>\n

Effective problem-solving requires\u00a0the involvement of some of your best\u00a0people, so optimizing the use of their\u00a0time is essential. Conflicting priorities,\u00a0constrained resources and collaboration\u00a0challenges make it difficult to apply the right problem-solving resources. By treating problem solving as a\u00a0fundamental operations process, you not only overcome these challenges, but also you enable scalability\u00a0to address more complex problems, manage multiple problems in parallel and balance long- and short-term\u00a0impacts effectively.<\/p>\n

These fundamentals of operational excellence are about changing the culture of your manufacturing\u00a0organization, so it\u2019s focused on continuous improvement and making the future better. Training, process,\u00a0best-practices and coaching are some of the key resources available to you to improve root-cause analysis\u00a0and problem-solving fundamentals in your organization. These are all particularly effective in manufacturing<\/p>\n

environments because they leverage the inherent culture of routine and consistency \u2013 once the\u00a0fundamentals are introduced, the organization is well positioned to execute on them.<\/p>\n

Improving Operational Maturity through Process and Best Practices<\/h4>\n

\"\"<\/p>\n

Root-cause analysis and problem-solving capabilities are not enough to achieve your operational excellence\u00a0vision. These fundamentals must be embedded in the daily discipline of operations, including your staff\u00a0activity on the shop floor, your supply chain, the equipment you use, the activities being performed and the\u00a0manufacturing processes being executed.<\/p>\n

Continuous Improvement<\/span><\/h4>\n

Continuous improvement starts with front-line staff focused on improving outcomes each day. Lean and Six\u00a0Sigma programs are givens for most manufacturing organizations today, and most manufacturing staff have\u00a0at least a broad understanding of the concepts and terms that each employ. Both methodologies are applied\u00a0broadly across manufacturing operations and build on the common foundations of root-cause analysis\u00a0and problem solving. Often, staff members struggle to explain how they work in concert with each other.\u00a0KT\u2019s operational-excellence methodologies offer logic and a common language to weave these approaches\u00a0together to enable you to receive more value from each of them. The Johnson Controls story<\/a> (now part of Yanfeng) is an\u00a0example of the benefits that KT can bring to a manufacturer’s continuous improvement effort, and how\u00a0leveraging Kepner-Tregoe became part of JCI’s continuous improvement journey.<\/p>\n

\"Engineer<\/p>\n

A key to achieving results in your continuous\u00a0improvement effort is embedding key activities\u00a0in the daily disciplines of your employees. Lean\u00a0consultants commonly recommend \u201cPlan Do Check\u00a0Act,\u201d Practical Problem Solving<\/a> and concern strips<\/a>\u00a0as methods to engage your staff directly in the\u00a0continuous improvement process. Measures, such\u00a0as Overall Equipment Effectiveness (OEE), can\u00a0further enhance these daily disciplines by putting\u00a0observations into the context of their overall impact\u00a0to operations, and guide staff to employ priority\u00a0tools, such as KT Situation Appraisal, when they\u00a0need to prioritize action items, or KT Problem\u00a0Analysis, to determine why something is broken.<\/p>\n

Continuous improvement is more than a process. To be effective in helping you achieve your operational\u00a0excellence aspirations, cultural change is required \u2013 with knowledge, process and behaviors interconnected\u00a0in the context of the operating environment. Just as in Six Sigma (with yellow belt, greenbelts, blackbelts,\u00a0master blackbelts, sponsors, etc.), KT process and thinking promotes the idea that everyone should be\u00a0involved. Including experts and facilitators in the continuous improvement program is critical to ensure\u00a0success. When KT is deployed well, internally trained KT coaches and KT facilitators interact with staff to inject\u00a0as much or as little KT process as needed.<\/p>\n

\"\"<\/p>\n

Improving operations to move closer to that\u00a0perfect day requires picking the best \u201ctools\u201d for\u00a0the problem at hand. If the need is to reduce\u00a0downtime, qualify issues and improve consistency,\u00a0then organizations might use Six Sigma. If the need\u00a0is to improve process efficiency, reduce waste and\u00a0optimize activities, such as shift handovers, then\u00a0they might use Lean. As stated above, KT offers the\u00a0logic and common language to use both Lean and\u00a0Six Sigma effectively. The book by Lonnie Wilson,\u00a0How to Implement Lean Manufacturing,<\/a> is a great\u00a0source to understand how KT interacts with Lean\u00a0and Six Sigma.<\/p>\n

Targeted Performance Improvement (TPI) with People<\/h4>\n

When the cause of a problem (or set of problems) has been determined (or at least narrowed to a specific\u00a0area), Targeted Performance Improvement (TPI) techniques provide a structure to use the knowledge and\u00a0skills of your employees to address the problems directly that are blocking you from achieving the vision of\u00a0Operational Excellence. TPI examines a specific process or scope area with the goal of driving improvements\u00a0where problems are known to exist. It can be applied to problems with a part or a piece of equipment, a\u00a0specific quality issue, scheduling\/handover issues, downtime, inventory issues and many other common\u00a0manufacturing problems.<\/p>\n

A key differentiator of Targeted Performance Improvement from other methods is that it can enable\u00a0companies to achieve results, often without spending capital, by focusing on the human resources already\u00a0present in the organization. This not only\u00a0leverages the resources you have, but also\u00a0it provides opportunities to expand the\u00a0skills and experience of your employees to\u00a0enable even greater value in the future. In\u00a0a TPI initiative, a select set of individuals\u00a0are tasked to achieve a measurable and\u00a0sustainable improvement during a discrete\u00a0period of time (usually no more than 3\u00a0months). Many of these individuals would\u00a0have extensive, existing technical expertise,\u00a0or be considered masters in their area\u00a0while others will develop and refine that\u00a0expertise during the targeted performance\u00a0improvement effort. A few critical initiatives\u00a0are quantified and baselined in terms\u00a0of tangible value. More often, it is about\u00a0capacity increase or cost reduction, which\u00a0enables a clear decision to be made on the\u00a0value of further investment.<\/p>\n

The basic steps of Targeted Performance\u00a0Improvement are:<\/p>\n

1<\/span><\/strong> Perform a diagnostic assessment to\u00a0understand the state of the operations.<\/p>\n

2<\/span><\/strong> Identify the levers that can enable the\u00a0organization to achieve the intended\u00a0result.<\/p>\n

3<\/strong><\/span> Assemble a short-term team to work\u00a0on the outputs of the diagnostic\u00a0assessment.<\/p>\n

4<\/span><\/strong> Develop road maps to define how\u00a0results will be achieved.<\/p>\n

5 <\/span><\/strong>Empower a team leader to deliver the\u00a0desired results during a period of a few\u00a0months.<\/p>\n

The last step is critical and one of the\u00a0key differentiators of the KT Targeted\u00a0Performance Improvement method \u2013 skills\u00a0take on a stickiness because the team leader\u00a0is embedded in the process and learning\u00a0as the process progresses. By focusing\u00a0on developing skilled leaders who are able\u00a0to facilitate effectively and repeat the TPI\u00a0process, improvement benefits can be\u00a0sustained for the organization well after the\u00a0project has been completed \u2013 sustainable\u00a0improvements and sustainable skills.<\/p>\n

Modern Trends Provide New Hope for Achieving Operational Excellence<\/h4>\n

Fundamentals, best practices and targeted improvements provide high-potential materials for building\u00a0operational excellence; however, cultural shifts and technological developments enable companies not just\u00a0to aspire to experience \u201cthe perfect day\u201d once, but also provide hope that it can be established as the new\u00a0norm, and achieved every day. Technology developments, such as IoT, operational technology, remote\u00a0sensing and enhanced analytics, so operators are able to manage processes using a screen of monitors and\u00a0alerts, enable better, faster identification of issues, diagnosis and problem resolution.<\/p>\n

Enhanced automation is enabling more decisions to move to the shop floor \u2013 giving frontline employees the\u00a0information and tools they need to solve complex problems effectively. This is powerful because the shopfloor\u00a0employees are the operators who know the processes, products and equipment best, and can combine\u00a0their vast experience and intuition with a new (technology-enabled) toolset to leverage the best of both.\u00a0Empowering these employees to take actions can dramatically increase issue-resolution time by moving\u00a0decision making closer to the actual operations.<\/p>\n

\"\"<\/p>\n

Take the First Step on your Path to\u00a0Operational Excellence<\/h4>\n

Operational Excellence is a journey, not a\u00a0destination. The journey involves leadership and\u00a0strategy as well as execution \u2013 doing the right\u00a0things and doing them right. While the perfect day\u00a0for your manufacturing organization may seem\u00a0unachievable, the path starts with taking the\u00a0first step. The good news is that you don\u2019t have\u00a0to take the first step alone. Kepner-Tregoe has\u00a0guided many companies on the journey and have\u00a0learned much on the way. To learn more about the\u00a0operational excellence journey, read the whitepaper\u00a0\u201cPath to Operational Excellence.\u201d<\/p>\n

The Kepner-Tregoe framework for high-reliability organizations can help you travel the path to operational\u00a0excellence by focusing employees on their destination, not just where they are today. The first step to\u00a0achieving that \u201cperfect day\u201d (the happy place for your manufacturing organization) is to bring clarity to what\u00a0success looks like and then to identify the barriers to your success. By overcoming these barriers through the\u00a0enhanced fundamentals of root-cause analysis and problem solving; implementing processes, techniques and\u00a0best practices; and leveraging the skills and experiences\u00a0of your people to achieve and sustain results \u2013 the\u00a0vision of Operational Excellence can become a reality.<\/p>\n","protected":false},"excerpt":{"rendered":"

Operational Excellence is a broad term that encompasses a variety of programs and\u00a0initiatives. Improvements often occur with Lean, or Six Sigma, initiatives that are\u00a0designed to fix problems, eliminate waste and create consistency in standardized\u00a0processes. Operational excellence is much more than these approaches, however, and includes a continuous desire to\u00a0improve company operations and productivity. It is […]<\/p>\n","protected":false},"author":8,"featured_media":35557,"template":"","white-paper-type":[],"class_list":["post-35556","white-paper","type-white-paper","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nOperational Excellence through Organizational Discipline - Kepner-Tregoe<\/title>\n<meta name=\"description\" content=\"Operational Excellence is a journey, not a destination. 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