Friday 30 November 2018

3 terms of excellence: Process, Business and Operational Excellence

Terms of excellence: Process Excellence, Business Excellence and Operational Excellence. These three terms are often thrown, sounding similar, but not the same. Not only that, these three terms are also often mistaken for each other.

Understand all three excellence

In fact, they form a hierarchy, starting with Process terms of  excellence as the smallest subset of Business Excellence and Operational Excellence.

  • Process Excellence (PEX)

    Process Excellence relates to the process itself; making the process more efficient and effective through design and testing. The main goal is to provide consistent and positive results with minimal variations. Which are handled by Six Sigma. Even and waste (which Lean faces). The process of Excellence and Operational Excellence is often equate. Whereas the implementation is very different.

  • Business Excellence

    Up to a more macro level, Business Excellence includes both PEX and OPEX with a perspective of achieving results. Business Excellence also covers the entire business strategy, investors, customers, partners, and stakeholder communication, and overall organizational development forward.

    The process by itself is not a guarantee of success. Because you may have a very good process there. But it takes you in the wrong direction. Furthermore, if the business strategy is weak or false, then an efficient and effective process can take you through a much faster cliff. Business Excellence requires a holistic view of the whole organization. All set in the main context to deliver results.

  • Operational Excellence (Opex)

    This is the broadest concept of all three. Operational Excellence includes not only processes throughout the organization. But also brings in some other ingredients, especially culture and how organizations are view from a value perspective. How people, technologies, equipment, and other resources combine and interact with each other. Even and with your process, all form a key component of the Operational Excellence mix.

    Well, if we summarize the three briefly: PEX creates an effective and efficient process resulting in output consistent with minimal variation and waste. Business Excellence focuses on delivering overall results in a pragmatic and consistent way. While OPEX is a PEX plus the culture, people, resources, system, and how they can work together optimally.

After knowing the difference between Process Excellence, Business Excellence, and Operational Excellence. You now understand what the most comprehensive "excellence" for your company is not it?.

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