Operational excellence is a lofty goal. However, if your business takes strategic, thoughtful steps, operational excellence – and financial excellence, for that matter – is achievable. Operational and financial excellence at its heart is being the best in class in your space: best in customer experience, best in products or services, and being the best globally. To do that, the first step is to identify hurdles that come between you and excellence.

Here, we discuss four of those hurdles you can overcome to get you closer to operational and financial excellence:

  1. Reduce Overtime

Overtime results in unnecessary human resources costs. Tasks have deadlines and there are times when management mandates overtime for the sake of a shipment. But what if you had the data to prevent or minimize overtime? With historic data, also known as big data, you know when a busy production time is approaching. You can strategically ramp up employee resources instead of requiring emergency overtime, which costs you more financial resources than you need to spend.

  1. Eliminate Unnecessary Repair Costs

With predictive maintenance, you can maintain your equipment without downtime. Through IoT, data connectivity and an Enterprise Resource Planning system (a database that connects operations to the financial department; also known as an ERP), the sensors on a piece of equipment will notify you if it needs maintenance, before it fails. Knowing which equipment needs repair or maintenance reduces or eliminates the amount of time involved in a complete facility shutdown.

  1. Identity & remove bottlenecks

Improve production KPIs by increasing the throughput and output. Big data gathered through IoT, helps you spot patterns and anomalies in your equipment. Data connectivity assists in identifying which department needs more support or more clarification in how to optimize their tasks. Sometimes, bottlenecks are between departments or within departments. Have you ever wanted to find out exactly where the slowdowns were located? Having full visibility in your operations allows you to do exactly that. In short, more granular knowledge of how exactly each of your processes are behaving can give you information to make your operations run faster. And when your operations run faster and more efficiently, you save financial resources.

  1. Move from a culture of status quo to innovation

We, at HSO, talk a lot about getting your business running at the speed of the market. What we’ve found is that businesses who value change and innovation achieves operational and financial excellence. How fast your business runs and innovates depends on the engagement and skill level of your employees. Technology enables your employees to do what they do best. Therefore, training is of high importance because it helps your operations — and your people– make the most of your technological investment.

Conclusion

Operational and financial excellence is about eliminating challenges. It’s about taking advantage of your technology to help your employees work faster and make their work easier. If your business hasn’t implemented many innovational technologies, it’s not too late to use them to achieve operational and financial excellence.

 >> Read related: Infographic: Factory of the Future

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