Capgemini Consulting the way we do it

Operational Excellence
An Approach to Operational Excellence That Delivers
Real Performance Optimization through Process
Improvement and Innovation

What is meant by Operational higher yields, faster throughput, and

Excellence? Will it help provide the less waste. Operational Excellence is
real sustainable competitive advantage now as relevant in commercial and
necessary to succeed in today’s ever service sectors as it is in traditional
challenging business environment? product manufacturing industries.
How can I ensure success? Are there
alternatives? When is the right time to How does Capgemini’s
stop focusing on improvements and approach work?
start focusing on innovation? Our approach to operational
excellence is built around three
Achieving Operational Excellence is a distinct and important concentric
challenge in itself, but Capgemini has layers (shown in the accompanying
a new, holistic approach that will help excellence diagram).
you to achieve significant, sustainable
improvements throughout your Many people see a need for
organization. improvement and pick a tool to fix it
—be it Lean, BPR, or the like. That, in
What is Operational Excellence? itself, is not a wrong approach, and
Operational Excellence involves can reap benefits (inner layer).
reaching a pinnacle in the execution
of business processes—allowing you
to conduct business in a manner that
satisfies customer demand, improves
quality, generates
We have found that significantly Layer 2: Identifying the Layer 3: Selecting the Tools:
greater benefits can be realized if the challenges: Our approach calls on some or all of
tools are selected with regard to the The issue-based approach uses four leading methods to deliver
particular issues that need to be techniques such as root cause Operational Excellence. Each of these
addressed (mid layer), and in turn, modeling to identify specific techniques is directed at a specific
the issues are viewed in the context of challenges, the focus points for action area for operational improvement.
the organizational setting (outer layer). and their inter-dependence and Together, they can be used to
Hence the three layers in our model. priority—thereby identifying the address the spectrum of potential
appropriate tools with which they can operational challenges.
Layer 1: The Organizational be tackled.
Setting:
The outer layer of the model contains
six areas that encompass all of the
main areas that an organization Figure 1: Capgemini’s Operational Excellence Accelerator
must address when striving for
Operational Excellence.
Strategy
Strategy

Def cing
n Connecting the strategy and vision

s
Con
(Ris rol

Pr o
ect
ct

u
Red
du

t
k)
of a company to tangible operational pa Tra
s

ce
es y
ra ns oc lit
Pr o

ss
goals, from which detailed and/or nc
y Pr u a
6S Q
S l
shorter term operational targets can Com ona
rati y
M

ig
p lian Ope icienc
BP

ma
ce
be cascaded. Operational Eff
Excellence
Process Agility
LE
Me
n Defining the primary, priority
IZ
ct Acq rgers
TR AN
du e
Pro Cycl uis
itio
&
re

e ns

As
processes of an organization and Lif Re C
du os
on
ltu

ct t
se
Effic
ati

Was ncy

finding ways to optimize and io

Cu

n
ov

ts
ie
Inn

te

redesign them, whilst ensuring

alignment with strategic goals. Organizational
Assets Model
n Investigating the best way to use

fixed and variable assets (such as

knowledge, resources and parts).
Organizational model Figure 2: Planned Change Approach
n Designing and structuring the

governance model and the way in

which it is applied. Maturity Planned Change Approach

Culture
Strategy Focus

n Recognizing the way in which

human resources are deployed in a Target Value

company and how they support the
agreed strategy and values. Also
creating the platform for sustainable
Business Focus

Triz Innovation
change within the organization. Workflow Automation

Product/Service
n Ensuring that product & service,

and customer relationship matter,

and are addressed in line with the
Process Focus

BPM Six Sigma Optimization

agreed strategic goals.

Time

2
 Capgemini Consulting the way we do it

Case study Essent Energy (Trade Figure 3: Cost/Benefit Analysis per Industry
Services)
Investment Benefit
4500000
The Dutch power company Essent ran
an operational excellence program for 4000000

its Energy Management Group. In order

3500000
to see its effect, Essent decided to test
the Six Sigma approach in several of its 3000000
operational management processes,
2500000
such as forecasting power load and
power dispatch. 2000000

1500000
The result reduced costs by €3.3
million annually. 1000000

500000
Four full-time process teams have been
launched subsequently to increase 0
operational efficiency even further. Airline Finance Energy Utilities
Indu stry

In many cases, companies who do not The figure also shows that the Figure 3 shows cost/benefits of real
use this “joined up” approach are at potential for optimization diminishes Operational Excellence programs by
risk of selecting inappropriate tools with time, following an S curve, at industry, together with results from
for the issues or setting, leading to the which point attention should be industry research on the cost/benefit
projection of only short term transferred to activities on the next analysis of Operational Excellence.
improvements, poor return on innovation S curve.
investment, or worse—lead to How can I help guarantee
complete project failure. Capgemini has developed a process success when embarking
maturity matrix that helps you on an Operational Excellence
Why should I use the monitor process lifecycle and identify program?
Capgemini approach? the most appropriate optimization Effective and well managed
The Capgemini approach offers a techniques to apply. deployment is crucial to the success of
proven, structured model, bringing an Operational Excellence program.
together the main elements of The TRIZ tool is a long-established
performance improvements that impact technique for promoting innovative Our unique “build and deploy model”
people, processes and technology. solutions to problems associated with, allows you to address, in sequence,
for example, product or process design. five key stages right from initial
This integral approach delivers assessment of the situation till the
improved benefits compared with Does implementation require delivery of sustained improvement.
more traditional models. large investments of time and
money? The five key stages are:
When is the right time to stop Whilst Operational Excellence 1. Assess—Analyze and assess the
focusing on optimization and programs can be costly, our method current (As-is) situation, including
instead invest in product & focuses on maximizing return on business strategy, processes,
process innovation? investments. Even smaller projects resources and assets. Define the
Our belief is that different types of can deliver rapid payback and future (To-be) vision of what
optimization tools are more appropriate significant benefits. operational excellence can deliver.
depending upon the maturity of the
process under review. An example of
this is shown in Figure 2.

Operational Excellence 3
 www.capgemini.com/supplychain

2. Design—Develop a clear route Capgemini’s Supply Chain

map showing the actions and practice
milestones on the road to Capgemini develops sector-specific
operational excellence, including supply chain solutions for the
both short and long term actions. Automotive, High Technology, Life
3. Optimize—Select the methods, Sciences, Financial Services,
tools and techniques to be Government, Retail/Consumer
deployed. Products, Manufacturing,
Telecommunications, Distribution,
4. Deploy—Apply the tool(s) to the
and Chemicals industries. The
improvement areas identified.
Capgemini goal is to help clients
These can be applied sequentially
increase shareholder value with speed
or simultaneously as required.
and efficiency by getting closer to
5. Sustain—The most important their customers, collaborating with
objective of any Operational suppliers, leveraging emerging trading
Excellence program is not just the communities, and making use of
achievement of excellence, but information flowing within and across
establishing the fundamental company and geographic boundaries.
process and cultural changes
necessary to sustain excellent For more information, please visit
performance. For this reason, we www.capgemini.com/supplychain.
focus on continuous improvement,
skills transfer to client teams,
continuous performance
measurement and the use of
appropriate IT support tools.
About Capgemini and the
Collaborative Business Experience

Capgemini, one of collaboration-focused methods and tools.

the world’s foremost Through commitment to mutual success
providers of Consulting, Technology and the achievement of tangible value,
and Outsourcing services, has a unique we help businesses implement growth
way of working with its clients, called strategies, leverage technology, and thrive
the Collaborative Business Experience. through the power of collaboration.

Backed by over three decades of industry Capgemini employs approximately 61,000

and service experience, the Collaborative people worldwide and reported 2005
Business Experience is designed to global revenues of 6,954 million euros.
help our clients achieve better, faster,
more sustainable results through More information about our services,
seamless access to our network of offices and research is available at
world-leading technology partners and www.capgemini.com.

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