Operational Excellence (OE) is the systematic implementation of principles and tools designed to enhance organizational performance, and create a culture focused on continuous improvement.
Common frameworks associated with operational excellence include: lean management and Six Sigma, which emphasize efficiency, waste reduction, and quality improvement.
[1][2] Operational Excellence leverages earlier continuous improvement methodologies such as Lean Thinking, Six Sigma, OKAPI,[3] and scientific management.
As more companies began to adopt the methods of Juran, William Edwards Deming, and others, Toyota's Operational Excellence movement grew.
The second component, a culture of operational discipline, refers to the consistent adherence to established procedures and standards ensuring tasks are performed correctly and uniformly.