Operational Excellence: Journey to Creating Sustainable Value

CHAPTER 3FOUNDATION PRINCIPLES

Operational Excellence has been defined as a management system—in reality, it is much, much more. Operational Excellence described in this book is a high performance, cooperative, success-oriented work culture. It is the way of the working life that elevates mindset, actions, and activities to safely create greatest sustainable value. As was explained in Chapter 1, Operational Excellence is an overall, master program that includes, governs, and coordinates all of an enterprise's functional improvement programs to achieve a common set of business value objectives. It relies on a set of governing principles that are constants across a broad range of operating enterprises.

OPERATIONAL EXCELLENCE—A PROGRAM EQUIVALENT TO SAFETY

In terms of the working culture, organizational, and individual commitment to program requirements, Operational Excellence is equivalent to safety. Consciously and unconsciously, everyone recognizes that safety is much more than a program, much more than a system. It begins at employment with extensive training. Safety is procedural. It avoids hazards and minimizes risk. Safety is a working culture that demands constant effort, thought, vigilance, and reminders to assure all activities are performed safely. Requirements are continually reinforced with reminders and training. Compliance is imperative.

The same is true for Operational Excellence. Operational Excellence demands focus on safe, sustainable value improvement. How ...