3rd Building Block of a Stable and Capable Delivery System | Operational Excellence Quick Hits
Quick Hits share weekly tips and techniques on topics related to Operational Excellence. This week’s theme relates to Operational Excellence Operating Structure Part 6: Capable Processes. We hope you enjoy the information presented!
Speaker 1: (00:04)
In this session, we’re going to talk about the third building block in creating a stable and capable delivery system in our house of operational excellence. In the last two sessions, we talked about the synchronous flow and employee involvement in teamwork. If we implement those two building blocks, then we’re well on the way to a stable delivery system, but it still might not be capable.
Speaker 1: (00:34)
Therefore, when we look at stable and capable delivery system, again, we want to make sure that the system is able to meet all our customer requirements and all our customer needs, not just a few of the customer requirements or just a few of the needs. So we need to get the variability in our system minimized, so that we’re able to deliver on time, in full, within the lead time that the customer is asking for, at the right quality. If we can achieve that, then we’re stable and capable.
Speaker 1: (01:10)
But in our third building block, if we’re still not capable, we’re still not able to meet all those needs of the customer, then we need to do some focused improvement efforts and understand which processes are not capable and which ones need to be improved to be able to establish that stable and capable delivery system and to sustain. So again, one of the key parts of operational excellence is sustainability. When we get the process improvements in place and the system stable and capable, then we need to maintain that through sustainability.
Speaker 1: (01:48)
At this point, when the capable delivery system is in place, you should start receiving more and more customer orders because you’re satisfying their needs to the extent that no significant competitor can deliver. And so in that case, we need to ensure that we stay stable and capable through growth. So if you think that stable and capable is difficult, yes, it’s difficult. But to remain stable and capable, while getting more sales is even more difficult. I would say, five times more difficult. So this is an important pillar to have in place to achieve operational excellence.