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Operational Excellence[1]
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3. Why is it that some companies endear themselves to us while others don’t seem to please? Why is it that it takes only a few minutes for pick up or drop off a rental car at Hertz’s #1 Club Gold, but twice that time and an annoying address form to check into a Hilton Hotel? Why is it that FedEx can ‘absolutely positively” deliver a package overnight, but Delta, American and United Airlines have trouble keeping your bags on the plane?
4. To Be A Leader… Companies must sell something more than the obvious. This something is customer value. Not just ordinary value…superior value. And, not just superior value… but continually improving superior value.
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11. Not providing lunch? Not providing baggage handling? Not providing advance check in?
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14. Threshold vs. Leadership in Customer Value Product Leadership “ best product” Operational Excellence “ best total cost” Customer Intimacy “ best total solution” Product Differentiation Operational Competence Customer Responsive
15. Can you name other icons of Operational Excellence and describe their formulas? Question -
24. Operational Excellence Model’s Key Features 1. Processes for end-to-end product supply and basic service that are optimized and streamlined to minimize costs and hassle. 2. Operations are standardized, simplified, tightly controlled and centrally planned. 3. Management systems that focus on integrated, reliable, high-speed transactions and compliance to norms. 4. A culture that abhors waste and rewards efficiency.
Companies can no longer raise prices in lockstep with higher costs; they have to try to lower costs to accommodate rising customer expectations. Companies can no longer aim for less than hassle-free service. Their customers enjoy effortless, flawless, and instantaneous performance from one industry and want it from every other. Companies can no longer assume that good basic service is enough; customers demand premium service—and raise their standards continuously. Companies can no longer compromise on quality and product capabilities. They must build products to deliver nothing less than superiority and eye-popping innovation.
![OBJECTIVES ,[object Object],[object Object],[object Object],[object Object],[object Object],No company can succeed today by trying to be all things to all people Companies thrive because they shine in a way their customers care about They have honed at least one component of value to a level of excellence that puts competitors to shame](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)