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10 - Operations Excellence

Published online by Cambridge University Press:  05 June 2012

Danny Samson
Affiliation:
University of Melbourne
Prakash J. Singh
Affiliation:
University of Melbourne
Ross Chapman
Affiliation:
University of Western Sydney
Terry Sloan
Affiliation:
University of Western Sydney
Ron Beckett
Affiliation:
University of Western Sydney
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Summary

Learning objectives

After reading this chapter you should be able to:

  • discuss the characteristics of high performing organisations

  • describe an excellence framework for operations

  • explain the role of standards in the development of models of excellence

  • compare differing excellence models

  • analyse an organisation using a model for excellence such as the Australian Business Excellence Framework

  • describe the different types of organisational performance measurements

  • describe some of the tools that can be used for driving transformation of organisations towards becoming better performers.

Box 10.1: Management challenge: what is operations excellence?

Coca-Cola, IKEA, Toyota. These world famous corporations have one common feature – they have all achieved operations excellence. So, what is operations excellence? What are the dimensions of operations excellence? How might organisations strive to go beyond operations excellence? These challenges presented here are concerned with the ability of organisations to develop and balance a number of characteristics of high performing organisations in order to achieve operations excellence. For example, senior managers within the Toyota Corporation in both Australia and Japan have told one of the editors of this book that Toyota's quality of cars built in Australia is the best in the world, including even the ‘parent’ plants in Japan. Does this constitute operations excellence? How can it be measured? How do we know when we have achieved it? What do we do next? Is it worth striving for operations excellence? What are the costs and benefits of doing so? […]

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