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OPERATIONALEXCELLENCECONSULTING1-January11,2020–v3.0IntroductiontoOperationalExcellenceWorkshopInstructor&Facilitator:FrankAdler,Ph.D.OperationalExcellenceConsultingStrategyDeploymentProcessExcellencePerformanceManagementHighPerformanceWorkTeamsOperationalExcellenceOPERATIONALEXCELLENCECONSULTING2-January11,2020–v3.0“ExcellenceinExecution”isthe#1CEOPriorityOPERATIONALEXCELLENCECONSULTING3-January11,2020–v3.0Section1:WhatisOperationalExcellence?Section2:OurOperationalExcellenceApproachSection3:StrategyDeploymentSection4:PerformanceManagementSection5:ProcessExcellenceSection6:HighPerformanceWorkTeamsSection7:SummaryIntroductiontoOperationalExcellence–TableofContentOPERATIONALEXCELLENCECONSULTING4-January11,2020–v3.0Section1:WhatisOperationalExcellence?Section2:OurOperationalExcellenceApproachSection3:StrategyDeploymentSection4:PerformanceManagementSection5:ProcessExcellenceSection6:HighPerformanceWorkTeamsSection7:SummaryIntroductiontoOperationalExcellence–TableofContentOPERATIONALEXCELLENCECONSULTING5-January11,2020–v3.0OperationalExcellence–ADefinitionABusinessStrategy:InTheDisciplineofMarketLeaders,MichaelTreacyandFredWiersemadescribethreedistinctvaluepropositionsordisciplines:OperationalExcellence,ProductLeadership,andCustomerIntimacy.Marketleaderschoosetoexcelindeliveringextraordinarylevelsofoneofthesethreevaluepropositions,whilemaintainingreasonablestandardsintheotherdisciplines.OrganizationspursuinganOperationalExcellencestrategy,strivetodeliveracombinationofquality,price,andeaseofpurchaseandservicethatnootherorganizationintheirmarketorindustrycanmatch.OPERATIONALEXCELLENCECONSULTING6-January11,2020–v3.0OperationalExcellence–ADefinitionAPhilosophy:OperationalExcellenceisaphilosophyofleadership,teamworkandproblemsolvingresultingincontinuousimprovementthroughouttheorganizationbyfocusingontheneedsofthecustomer,empoweringemployees,andoptimizingexistingactivitiesintheprocess.OPERATIONALEXCELLENCECONSULTING7-January11,2020–v3.0OperationalExcellence–ADefinitionAValueStreamManagementApproach:OperationalExcellenceiswheneachandeveryemployeecanseetheflowofvaluetothecustomer,andfixthatflowbeforeitbreaksdown.OPERATIONALEXCELLENCECONSULTING8-January11,2020–v3.0OperationalExcellence–ADefinitionAnIntegratedManagementSystem:OperationalExcellenceisanintegratedmanagementsystemdevelopedthatdrivesbusinessproductivitybyapplyingprovenpracticesandproceduresinthree“foundationblocks”–AssetProductivity,CapitalEffectiveness,andOperationsRiskManagement.TheOperationalExcellencemanagementsystemgivesacompanythebenefitsoflowercosts,increasedefficiencies,fewerinjuries,maximumsustainablereturnsonoperatingassets,andanenhancedcompetitiveposition.OPERATIONALEXCELLENCECONSULTING9-January11,2020–v3.0OperationalExcellence–ADefinitionAFramework:BaldrigeCriteriaforPerformanceExcellenceLeadership:Howuppermanagementleadstheorganization,andhowtheorganizationleadswithinthecommunity.StrategicPlanning:Howtheorganizationestablishesandplanstoimplementstrategicdirections.CustomerandMarketFocus:Howtheorganizationbuildsandmaintainsstrong,lastingrelationshipswithcustomers.Measurement,Analysis,andKnowledgeManagement:Howtheorganizationusesdatatosupportkeyprocessesandmanageperformance.HumanResourceFocus:Howtheorganizationempowersandinvolvesitsworkforce.ProcessManagement:Howtheorganizationdesigns,managesandimproveskeyprocesses.Business/OrganizationalPerformanceResults:Howtheorganizationperformsintermsofcustomersatisfaction,finances,humanresources,supplierandpartnerperformance,operations,governanceandsocialresponsibility,andhowtheorganizationcomparestoitscompetitors.OPERATIONALEXCELLENCECONSULTING10-January11,2020–v3.0OperationalExcellence–ADefinitionAModel:TheShingoModelTheShingomodelisbasedontheLeanmanagementapproachandmodeltaughtbyDr.ShigeoShingo,aswellasthethinkingsharedfromToyotaandothercompaniesthathaveachievednewlevelsofoperationalexcellence.TheShingomodeliscomprisedoftwoelements:thehouseandthediamond.Thehousedetailstheprinciplesofoperationalexcellenceandthepowerofbalancingeffortacrossallthedimensions.Thediamondrepresentsthetransformationprocessforembeddingtheprinciplesofoperationalexcellenceintotheorganizationalculture.TheShingomodelisarobustmodelthatcharacterizestheconnectionsbetweenSixSigma,TQM,TPS,JIT,andLean.OPERATIONALEXCELLENCECONSULTING11-January11,2020–v3.0OperationalExcellence–WhatwillbeyourDefinition?Everyorganizationneedstodecideforitselfwhichmanagementsystem,model,orframeworkdescribesbesttheirdefinitionofOperationalExcellence.OPERATIONALEXCELLENCECONSULTING12-January11,2020–v3.0Section1:WhatisOperationalExcellence?Section2:OurOperationalExcellenceApproachSection3:StrategyDeploymentSection4:PerformanceManagementSection5:ProcessExcellenceSection6:HighPerformanceWorkTeamsSection7:SummaryIntroductiontoOperationalExcellence–TableofContentOPERATIONALEXCELLENCECONSULTING13-January11,2020–v3.0OperationalExcellence–OURApproachAnyOperationalExcellenceinitiative,tobesuccessful,needstobeastrategicinitiativeandfocusonthefollowingfourcornerstonesorbuildin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