“Operational Excellence is a state of readiness that is attained as the efforts throughout the organization reach a state of alignment for achieving its strategies; and where the corporate culture is committed to the continuous and deliberate improvement of company performance AND the circumstances of those who work there – to pursue ‘Operational Excellence by Design‘, and not by coincidence.” -Joseph F Paris Jr; Chairman, XONITEK® Group of Companies
Government; Has the need but lacks the will, even the want.
By Joseph Paris; Chairman, XONITEK Group of Companies
In a global marketplace, companies have a primal motivation for continually improving the value-proposition of their offering. They have to outpace the competition and offer more and more, for less and less, otherwise risk losing the customer. To meet these demands of the customer requires that companies constantly seek to increase the velocity of throughput (Lean) as well as improving the quality of the process (Six-Sigma) – to drive out waste and leave only value.
Some might argue that innovation can create a “Blue Ocean” when there exists, for a moment, a condition where demand generation can result in a business state where the price a customer pays matters far less. But the Innovation Benefit Premium (“IBP”) to a company is fleeting. We need look no further than Apple and the iPhone. When the iPhone first came out, it was a game changer. It pushed the former leading companies like Nokia and Blackberry to the edge. But other companies such as Samsung and HTC were quick to respond and now Apple’s IBP on smartphones has all but vanished. So for a company to rely upon IBP for its strategy requires a constant stream of transformational innovation – which is very difficult, as Apple has discovered.
But what if a company didn’t have to worry about competition or to become innovative to gain or retain its customers? What if it knew that the customer had no choice but to purchase or otherwise engage with them? What if the company knew that, if it needed more cash, it can just raise it with little real accountability? What would be the incentive for a company to make improvements? Would it even try?
We look forward to seeing in Montreal for the largest Industrial and Systems Engineering event of the year! XONITEK’s Joseph Paris is the Track Chairperson for the Process Industries Division and will be delivering a Session.
Experts from the oil and gas industry will be collaborating with operational excellence stalwarts to improve efficiency in their day-to-day operations and keep a control on rising costs. XONITEK’s David Boyman will be delivering the Keynote as well as serving as Conference Chairperson.
Known as the industry “Flagship event of the Year” for the manufacturing sector, it supports and recognizes manufacturing success in all sectors of industry. Sponsored by XONITEK & OpEx Society. Joseph Paris will be speaking and serving on the Jury to evaluate nominated companies.
This year’s Lean Management Journal conference will again feature a cutting edge programme seminar designed to challenge the most experienced lean practitioner. XONITEK’s Joseph Paris is a member of the LMJ Editorial Board and will deliver the morning Keynote.
Is your OpEx Program Suboptimizing your Profitability?
By Tim Raven
Many complex manufacturing businesses have come to understand that operational excellence is an on-going process in which companies strive to produce better results. It has an inherent collaborative nature and typically includes participation from all parts of the organization. But the challenge in manufacturing today is that the metrics upon which the business silos of sales & marketing, production, and finance are measured are all different which makes collaboration nigh on impossible. The outcome of this, in Lean parlance, is waste in the form of time not being used efficiently to sell and manufacture orders that produce the most profit with the existing production capacity, thus constraining the flow of profits to the shareholders.
A closer look at this issue reveals the following metrics used by each of these silos and the underlying problems at the heart of this muda*.
Adopting Lean Management Practices is the Key to a Successful Lean Transformation
By Bertrand Olivar
It can be difficult to succeed in implementing Lean transformation and improve a company’s metrics over 10 percent. Particularly when managerial behaviours don’t follow this transformation. In fact, in a Lean environment, managerial behaviours and the company’s culture have to change in order to sustain results. Especially supervisors & team Leaders.
Read on for a list of new Lean behaviors that need to be adopted…
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