Operational excellence

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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 is intended to enable employees of all levels to identify, deliver, and enhance the flow of value to customers. Common frameworks associated with operational excellence include lean management and Six Sigma, which emphasize efficiency, waste reduction, and quality improvement. Organizations that adopt these practices may report increased customer satisfaction and operational efficiency.^{[citation needed]}

This approach employs the tools of earlier continuous improvement methodologies, such as Lean thinking, Six Sigma, OKAPI^[1], and scientific management.^[2]

The concept of operational excellence was first introduced in the early 1970s by Dr. Joseph M. Juran^[2] 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.^[3]