Operational excellence is no longer a competitive advantage. Globalization, access to technology, sophisticated communications and highly demanding and knowledgeable customers make it a competitive necessity. If your company is not world class now or becoming world class, chances are it won't be any class in the not too distant future. The good news is that world class business tools and techniques are available and affordable for virtually any company. The brutal truth, however, is that operational excellence has as much to do with the will, drive and focus of the company's leaders as it does with scientific management. Here are a few of those key characteristics that go hand in hand with operational excellence, along with some tips on how to make them work for you.

SCOR is a cross-industry standard for supply chain management and has been developed and endorsed by the Supply-Chain Council (SCC), an independent not-for-profit corporation. The SCC was organized in 1996 by Pittiglio Radin Todd & McGrath (PRTM) and AMR Research, and initially included 69 voluntary member companies. Council membership is now open to all companies and organizations interested in advancing supply chain management practices and technologies.

SCOR is based on five distinct management processes: Plan, Source, Make, Deliver, and Return. Please refer to Figure 1 for an illustration of SCOR and a brief overview of each management process.

Recently, I came across a production manager at a conference and was engaged in a conversation. It was evident to me from the way the manager was talking that he was excited. He thought he had found a way to really enhance the effectiveness and efficiency of his operations that could give his plant a true competitive advantage.

He had just received a mailing sent out by a well-known professional society. The organization had developed numerous benchmarks, along with guidelines on how to implement them. The implications of this mailing were clear: Join us, learn about these benchmarks, implement them, and succeed.

After reviewing the material and asking the manager a few questions about his operations, it become clear to me that applying these benchmarks only would help the manager prevent failure, rather than lead to his ultimate success. A fundamental question was then posed: "Do you want to succeed, or are you simply interested in not failing?"

Achieving true integration between factory floor and business systems entails a good deal of creative thinking and "what-if" type analysis of your plant's workflow.

The New Role For Operations Management

Today’s operations environment is a complex, fast-changing world where mistakes, even small ones, can be fatal for organizations. The Internet has accelerated that change and made competition more lethal.

The challenges for operations and materials managers are extreme, and the areas that must be mastered is increasing exponentially. These include the Internet, ERP systems, cellular manufacturing technology, robotics, environmental regulations, multi-cultural organizations, and new product development.

Mastering any one of these areas require college courses or special certification, and no one person can master them all. But somehow, operations and materials professionals must integrate all these functions into a smooth-running process that delivers products and services on a routine basis. In effect, they must become symphony conductors.