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'''Operational excellence''' refers to the systematic implementation of principles and tools designed to enhance [[organizational performance]] and create a culture focused on [[continuous improvement]]. It enables employees at all levels to identify, deliver, and enhance the flow of value to customers. Common frameworks associated with operational excellence include [[Lean Management|Lean management]] and [[Six Sigma]], which emphasize efficiency, waste reduction, and quality improvement. Organizations that adopt these practices often report increased customer satisfaction and operational efficiency.
This approach employs the tools of earlier [[continuous improvement]] methodologies, such as [[Lean thinking]], [[Six Sigma]], OKAPI<ref>{{Cite web |last=Flint |first=Jacob |date=
The concept of operational excellence was first introduced in the early 1970s by Dr. Joseph M. Juran<ref name="juranwhat">{{Cite web|date=2020-08-05|title=What Does Operational Excellence Look Like?|url=https://www.juran.com/blog/introduction-to-operational-excellence-opex/|access-date=2021-12-07|website=Juran|language=en-US}}</ref> while teaching Japanese business leaders how to improve quality. It was formalized in the United States in the 1980s in response to "the crisis" among large companies whose [[market share]] was shrinking due to quality goods imported from Japan.<ref>{{Cite web |last=DeFeo |first=Joseph |date=5 January 2024 |title=What Does Operational Excellence Look Like? |url=https://www.juran.com/blog/introduction-to-operational-excellence-opex/ |access-date=16 October 2024 |website=Juran}}</ref>
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There are five key components fundamental to operational excellence, illustrated in Juran's Model, that lead to better business results and cultural excellence.<ref name="juranwhat" />
The first component, an integrated management system (IMS), consists of a framework of processes and standards that define where the organization is going, identify the risks to getting there, mitigate them, manage change, and continuously improve. Having one single, integrated management system reduces overlap, redundancy, and conflict. Early adopters of this practice have been companies such as [[Exxon]] and [[Chevron Corporation|Chevron]] utilizing Operations Integrity Management System (OIMS)<ref>{{Cite news |title=Learn about the Operations integrity Management System at ExxonMobil |url=http://corporate.exxonmobil.com/en/company/about-us/safety-and-health/operations-integrity-management-system |archive-url=https://web.archive.org/web/20171206143231/http://corporate.exxonmobil.com/en/company/about-us/safety-and-health/operations-integrity-management-system |archive-date=2017-12-06 |access-date=2017-12-07 |work=ExxonMobil |language=en}}</ref> and Operations Excellence Management Systems (OEMS),<ref>{{Cite web |
The second component, a culture of operational discipline, is commonly described as doing the right thing, the right way, every time. This culture is built upon five guiding principles developed from the United States Nuclear Navy, a [[high reliability organization]]. Those principles are integrity, questioning attitude, level of knowledge, watch team backup, and formality. These values are used to identify the behaviors expected of each and every employee and how they support the organization's mission and outcomes.
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