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    Measuring operational excellence: an operational excellence profitability (OEP) approach.

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    Golcher et al. - Revised Version ...
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    Authors
    Gólcher-Barguil, L.A.
    Nadeem, S.P.
    Garza-Reyes, J.A.
    Affiliation
    University of Derby
    Issue Date
    2019-03-08
    
    Metadata
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    Abstract
    The pursuit of operational excellence in the manufacturing industry is at rise, but its measurement still lacks of appropriate indicators to determine its financial benefits. The ambiguity is due to the impact arisen from manufacturing fluctuations such as price and cost, production mix, and direct and indirect parameters variations. Manufacturing fluctuations distort the cost benefit of operational excellence. This paper therefore proposes the OEP (Operational Excellence Profitability) indicators to isolate the impact of manufacturing fluctuation, and distinctly identify the payback of operational excellence strategies and initiatives through cost benefits of achieving higher efficiency and yield. The paper presents the conceptual and mathematical development of the proposed OEP indicators and the formulas used for their calculation. Hypothetical and industrial-based investigations and applications of the OEP indicators are conducted for their validation. The results obtained from the hypothetical exercise and industrial case suggest that OEP indicators can provide an effective cost benefit analysis of operational excellence. This would contribute in providing manufacturing organisations with more complete information regarding the performance of their processes, which will allow their directors and managers to take better decisions related to the management and improvement of their processes.
    Citation
    Gólcher-Barguil, L.A., Nadeem, S.P., and Garza-Reyes, J.A. (2019) 'Measuring operational excellence: an operational excellence profitability (OEP) approach', Production Planning and Control: The Management of Operations. doi: 10.1080/09537287.2019.1580784.
    Publisher
    Taylor & Francis
    Journal
    Production Planning and Control: The Management of Operations
    URI
    http://hdl.handle.net/10545/623638
    DOI
    10.1080/09537287.2019.1580784
    Additional Links
    https://www.tandfonline.com/doi/full/10.1080/09537287.2019.1580784
    Type
    Article
    Language
    en
    ISSN
    0953-7287
    EISSN
    1366-5871
    ae974a485f413a2113503eed53cd6c53
    10.1080/09537287.2019.1580784
    Scopus Count
    Collections
    Centre for Supply Chain Improvement

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