Operational Excellence

In this chapter, we emphasized the importance of focusing on operational excellence (OE) for any product/service enterprise. OE is determined on doing things right (as related to internal work processes, employee’s motivation, customer problem solving, corporate knowledge management practices, speed of service delivery, and other supplemental service elements important to customers). It addresses issues related to cost, service quality, service availability, and work process reliability in order to maximize current corporate net income, and hence cash flow. For profit-oriented product/service enterprises, if there is no cash flow, there could be no activity and hence no corporate profitability. OE is centered on preserving the short-term performance of an enterprise.