Abstract

Quality improvement systems can contribute to operational improvements, but they cannot eliminate operational costs arising from deviations and nonconformances caused by human error. In order to grow in today's competitive business environment, companies must eliminate unnecessary operational costs. This means management must recognize the organization's strengths and weaknesses and be committed to continuous improvement. To achieve the key goals of operational excellence, management must establish requirements that are clear and appropriate for their intended purpose. The second step is to communicate these requirements to employees through meetings and training sessions. To ensure compliance with communicated requirements, continuous assessment is needed to determine compliance levels, verify actual practices, and test the requirements' effectiveness. The principles of the defined operational excellence cycle apply to all organizations, regardless of structure.