It is important to understand the terms Effectiveness, Efficiency, and Excellence. They are applicable to all management areas and their specific application for Operations and Operations Management has also to be understood by operations managers.
Chase, Shankar, Jacobs. - Operations and Supply Chain Management, 14th Ed.
Efficiency means doing something at the lowest possible cost. The goal of an efficient process is to produce a good or provide a service by using the smallest input of resources. These important resources are material, machine (equipment), man (labor), energy, and information/IT resources. Industrial engineering has a special focus on efficiency in engineering processes and systems.
Effectiveness mean doing the right things to create the most value for company. There are multiple aspects or attributes of effectiveness. The products supplied must satisfy the needs of customer and a want has to be created for them. The specification has to be acceptable to the customer, the price has to be acceptable and the delivery terms have to be convenient.
Gleich & Sautter:“OE is the development of enablers to generate competitive benefits in a dynamic
environment based on the resources of an organization (adaptability). The composition and expansion of enablers is the basis for continuous improvement, change, and the optimization of business processes. Therefore,Operations Excellence (OE) is the dynamic capability to realize effective and efficient core processes in the value creation chain utilizing technological, cultural and organizational factors in an integrative way and based on the respective strategy.”
Sutton: He arguments that “Operations Excellence means focusing strategically on maximizing the value that operations deliver to customers, through strong leadership, the power of people, the use of industry best practice and the application of value-add technologies. Operations Excellence enables sustained delivery of high-quality, cost-effective services and capabilities that provide exceptional customer value. Companies that leverage Operations Excellence as a strategic competitive advantage recognize that the effectiveness of their operation plays a central role in creating and sustaining customer satisfaction and loyalty.”
ORGANIZATIONAL ASSESSMENT: EFFECTIVENESS VS. EFFICIENCY
Ilona Bartuševičienė
Mykolo Romerio universitetas, Lithuania
Evelina Šakalytė
Mykolas Romeris University, Lithuania
‘‘Social Transformations in Contemporary Society’’, 2013 (1)
ISSN 2345-0126 (online
http://stics.mruni.eu/wp-content/uploads/2013/06/ 45-53.pdf
Development of an assessment framework for Operations Excellence (OsE), based on the paradigm change in Operational Excellence (OE),
A.Jaegera, K.Matyasb and W.Sihn
Variety Management in Manufacturing. Proceedings of the 47th CIRP Conference on Manufacturing Systems. Procedia CIRP 17 ( 2014 ) 487 – 492
Gleich & Sautter:“OE is the development of enablers to generate competitive benefits in a dynamic
environment based on the resources of an organization (adaptability). The composition and expansion of enablers is the basis for continuous improvement, change, and the optimization of business processes. Therefore,Operations Excellence (OE) is the dynamic capability to realize effective and efficient core processes in the value creation chain utilizing technological, cultural and organizational factors in an integrative way and based on the respective strategy.”
Sutton: He arguments that “Operations Excellence means focusing strategically on maximizing the value that operations deliver to customers, through strong leadership, the power of people, the use of industry best practice and the application of value-add technologies. Operations Excellence enables sustained delivery of high-quality, cost-effective services and capabilities that provide exceptional customer value. Companies that leverage Operations Excellence as a strategic competitive advantage recognize that the effectiveness of their operation plays a central role in creating and sustaining customer satisfaction and loyalty.”
ORGANIZATIONAL ASSESSMENT: EFFECTIVENESS VS. EFFICIENCY
Ilona Bartuševičienė
Mykolo Romerio universitetas, Lithuania
Evelina Šakalytė
Mykolas Romeris University, Lithuania
‘‘Social Transformations in Contemporary Society’’, 2013 (1)
ISSN 2345-0126 (online
http://stics.mruni.eu/wp-content/uploads/2013/06/ 45-53.pdf
Development of an assessment framework for Operations Excellence (OsE), based on the paradigm change in Operational Excellence (OE),
A.Jaegera, K.Matyasb and W.Sihn
Variety Management in Manufacturing. Proceedings of the 47th CIRP Conference on Manufacturing Systems. Procedia CIRP 17 ( 2014 ) 487 – 492
Efficiency, Effectiveness and Excellence are well explain
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