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Operational Excellence and Business and Business Excellence Framework

Title: Operational Excellence – Development of OE Model for Pharmaceutical Industry 

Learning outcomes:

  • Critically assess and appraise the established ‘Operational Excellence’ models utilised to drive business success across a range of industries today. 
  • Evaluate the key factors that underpin a successful Operational Excellence (OE) implementation. 
  • Design an Operational Excellence Assessment tool to gauge an organisations suitability and performance.
  • Evaluate a range of tools for scientific innovation and the generation of ideas and collaboration. 
  • Apply the framework and tools to the development of strategy in an industrial situation. 

Answer

Introduction 

Operational excellences refer to the improvisation and betterment in the performance of the employees and the organisation. Employees act as an integral part in the production process whose performance is parallel to the productivity of the organization. Skilled and experienced employees help in deriving positive outcome and meet the expectation of customer’s need. Pharmaceutical industry deals with the production of drugs and medicines. It needs a group of skilled chemist, physician and employees in preparation, marketing and selling of the drugs and medicines. The operational process in the pharmaceutical industry is more productive and experimental as compared to other sectors. The medicines and drug acts as the sustenance of life for the people suffering from diseases. Skilled labours and experimental operational process need to be controlled in producing the medicines for any negligence can result in discrepancy that will affect the health of people. Operational excellence helps in reducing operational complexities and chance of occurrence of risks.


Overview of the business model 

The facet of operational excellence refers to the definite framework with the help of which the management of philosophy associated with leadership takes place, which ultimately results in continuous improvement throughout the premises of the organisation. On the other hand, in the viewpoint of Pandey and Bharadwaj (2016), it is also important to note that, there are varied approaches and models, which are associated with the working principles of operational excellence. In the context of the pharmaceutical industry, it can be said that, the definite facets and processes associated with operational excellence tends to play an important role in the promulgation of the definite operative methods, which needs to be taken into effective account. Therefore, as per commented by Chaturvediet al. (2017), it is to be noted that, in order to facilitate the current overview of the pharmaceutical industry, with an emphasis on the operational excellence, the operational excellence strategy model has been chosen to proceed with the study. It is to be noted that, the propositions that are prevalent in the strategic business model is considered to be a manifestation of the definite processes and procedures that are relative of the current working condition of the pharmaceutical industry. 


In the viewpoint of Lawrence and Kopcha (2017), it is to be noted that, an operational excellence strategy model tends to create a proper business management process that effectively encourages the improvement of the denoted processes. On the other hand, it is also important to note that, the facet of operational excellence tends to serve as the primary focus on the event based model of development towards a definite long term change in the organisational culture. 


As per the propositions of the operational excellence framework and model, it can be said that, in the present scenario of the pharmaceutical industry, the organisations need to reshape and rethink about their definite approach towards the proper execution of the development methods that are being adopted by them. As per commented by Kleinebudde et al. (2016), it is to be noted that, the adequate achievement of the operational excellence model tends to require an accomplishing implementation of the strategic interventions that are prevalent in the pharmaceutical industry. However, it is to be noted that, the integration of the operational excellence model is based on four definite building blocks, which are as follows:


Strategy development: the facet of strategy development comprises of strategic mapping of the definite processes and procedures that are to be adopted by the pharmaceutical industry. On the other hand, in the viewpoint of Jone et al. (2015), this facet also refers to the definition of a well implemented strategy that tends to serve the needs and requirements of the definite processes that tend to ensure effective collaboration and alignment. Within the different parts of the organisation, strategy development tends to play a significant role in the promulgation of the definite processes and procedures. However, as per commented by Gereffi (2017), it can be said that, after much assessment, it has been found that, based on definite Balanced Scorecards, the initiation of the critical operational excellence takes place in the context of definite projects and assigned activities. 


Performance management: the second building block of operational excellence model is the aspect of performance management. It is to be noted that, the operational excellence processes that are prevalent within the premises of the organisation tends to significantly translate the definite features that are associated with strategic or operational objectives. These objectives tend to ensure effective alignment among the different levels and parts of the desired pharmaceutical organisations. Performance management helps in ensuring alignment of definite organisations under the pharmaceutical industries towards the achievement of common and specified goals and objectives (Messner, 2016).


Process excellence: the primary characteristic feature of the pharmaceutical industry is essentially process centered organisations, which are well designed, effective and efficient. In the viewpoint of Haleem et al. (2015) are responsible for value creation and tend to support the processes in order to significantly deliver the pharmaceutical products and services to their customers in a convenient manner. The significance of process excellence lies in the fact that, with the help of effective methods and processes, it will be easy and convenient for the pharmaceutical industry to adopt significant operational excellence within the premises of the definite organisation. 


High performance work team: the work teams those are present in the pharmaceutical industry needs to have a right and proper attitude, which will be convenient to carry out the necessary processes and procedures that needs to be taken into effective consideration. The organisations with operational excellence tend to achieve and sustain the right mindset and competencies in order to strive an increase in the education and engagement of the necessary processes and propositions, which are to be taken into consideration. With the help of strong values and guiding principles along with competence development in a constant manner, it will be easy and convenient to attain high performance work teams (Gereffi, 2017).


Key principles of the OE model 

Operational Excellence Strategy Model is an element that stresses on the usage of principles and tools and that results in supportable improvement for the key performing procedures in the metrics. The Model works under some strategies that helps in completing the works on time and easily are as follows:

  1. It offers predictive reporting performance metrics      which involves the closure rate, quality and system in different format      which is more appropriate that occurs in the operational excellence      strategy model.
  2. Incorporation of the different methodology that is      being used in the company and makes it an efficient working process.
  3. It helps in providing the metric process that      encourages the improvement of works and in this strategy model excellence.
  4. It offers accessibility to the different process      documentation and different operating procedures that impacts the      performance metrics of the company.
  5. Incorporates the innovatively determined strategies      that helps in working in the overall system of the operations that are      being done as per the systems

The provided points help in determining the different strategies under which the model works and make it easy for the company to complete the works on time and efficiently. The principles under which the company on are as follows that helps in making the performances as per the needs and wants of the customers.


Principle 1: Design lean value streams

Designing end-to-end value stream flow that will help in starting the time received from the order or requires from the different services that is being worked out in the company. This helps in setting up the future stage map for the company. This process helps in knowing the information that will make the flow effective in various ways possible. The connections are being created through the different process through which products are being done and make it effective for the company in various ways possible. 


Principle 2: Make lean value the streams flow

The products that had been developed through the process of lean value system may need to be done in efficient manner. This will provide the company to work and perform the work as per the needs of the customers. Under this the company may need to take care of the products in an efficient manner. If the flow will be efficient in performing the tasks, then the company would be able to take up the charge and work efficiently. It is the duty of the higher authority to make specify the communication system among the employees in terms of bring clarity in the process of specifying the instruction.


Principle 3: Make flow optical

The performances that is being done will need to be visible to the customers this will improve the performance of the company even more. This will take up the works to the point under which the performance of the company will make it effective for the company to take a look at the performances of the company in different ways possible.  In the strategic plan the management can provide stress on efficiency of team work as well as the responsibility of the team leader. Assessing the performance and knowledge, management can provide responsibility to the employee to play the role of leader. 


Principle 4: Create an standard of work flow

It may need to be the duty of the company to effectively deal with the works that are being done and on the virtue of which the standards that had been set up helps in working and performing efficiently. Management of organizations can follow the program relating to the departments such as govern, design, implement and nurture the organisational excellence. The standard will be helpful in completing the works in time and without any problem. Under this the company needs to take up the performance as per the needs of the customers. This may need to be the duty of the customers to know about the performances of the company on the virtue of which it may lead the products to be observed in market. 


Principle 5: Creating of abnormal flow visuals

If there will be any abnormal flow of working, the company may need to take care of the works and perform in an effective manner. Under this way the company may need to be on the mark and perform as per the ways this will take up the performance to the next level. There may be some abnormal visuals way of performances under which the performance may need to be taken into consideration in the different ways possible.


Principle 6: creating a standard work for the abnormal flow of works

The standard of works may need to be maintained under which the performance of the company will lead up to a great extent. This standard will lead up the performances of the company to be done as per the ways the company may get up to the next level of performance (Haleem et al. 2015). Under this the abnormal flow of work it may need to be taken care in different efficient processes as follows. This will take up the works to the point under which the performance of the company will make it effective for the company to take a look at the performances of the company in different ways possible.


Principle 7: having employees that may help in improving the works

Employees would need to be the person who may need to take care of the performances of the company and on the virtue of which it may lead up the works in different ways possible.  It can be added that the organization is required to focus on the business process through understanding the performance and capability. Employees are referred as the main individual who take up all the works of the company and performs in different efficient ways possible. Under this way of working the employees are the responsible individual that looks after the performance of the organization in an efficient way possible. It is the duty of the higher authority to make specify the communication system among the employees in terms of bring clarity in the process of specifying the instruction. 


Principle 8: Performing offense activities

It is to be noted that, the facets and features that are associated with operational excellence is characterized by effective business growth. On the other hand, it is also important to note that, this tends to give management ability to the running of operation into the growth of business. Therefore, in the context of pharmaceutical industry, it can be said that, effective business propositions can only take place with the help of reducing and eliminating the pointed put activities and operations that are performed by the managerial heads of the organisations.  The different activities related to offense and its principle attached with the harmful consideration of different situation that can lead towards harming the individual. The preventive measures and actions thus need to guide the entre perspective in a suitable manner. Principles of utility and its planning-based activities cordially s connected with another set of offense activities. 


Civilised community often purposefully or non-purposefully exercise some of the unlawful actions that directs towards social issues against the will of an individual if any action get initiated or not getting informed by the entire criteria, forcefully indulge into something wrong.  The declaration of different rights of men needs to be advocated within eth industry in conducting smooth operational process. The principles justifying different legislations incorporating some of the important rules and regulations will be able to prevent the occurrence of risk within eth industry. Addressing some of the specific problem within the setting of pharmaceutical sector needs to consist of solution-based evidences. For the purpose of this paper, the principles essentially follow up the distinctions and exposition of the situational variants catered the systematic way out while the offense principle has been received the scant attention with the incorporation of significant exposition. The Justification of Federal Communication Commission , the federal government and authority of overseas has been shouldering the power  of revoking the license of authorized companies. 


Key elements of the model 

After an assessment, regarding the proper assonance of operational excellence, it can be said that, there are certain elements and key determinants, which tends to act as a significant manifestation of the existing rules and regulations along with necessary business propositions, which needs to be taken into consideration. On the other hand, it is also important to note that, these key elements tend to act as an epitome of the definite processes methodologies, which are associative of the current overview of the pharmaceutical industry. Thus, in the viewpoint of Sieckmann et al. (2018), the projected determinants and key elements of the operational excellence model vested are as follows:


Manufacturing strategy: the research that is based on the manufacturing of the strategy is well known and is effectively accepted in the organisations. The compositional and elemental facets those are associated with the processes of manufacturing strategy tends to objectify the distinctions that are prevalent under the competitive priorities. It is to be noted that, these definite strategies are required to draw customer attention towards the acquisition of the pharmaceutical propositions of the definite industry.  On the other hand, in the viewpoint of Lee et al. (2015), it is to be noted that, product quality in the pharmaceutical industry is often considered as qualifier in the facets of operational excellence that needs to be met for effective market access. Thus, in the markets of the pharmaceutical industry, it is essential and mandatory to meet up with the quality requirements in order to grant market access in a convenient manner. Thus, it can be propagated by stating the fact that, the manufacturing strategy and the processes that are associated with the current business framework of the pharmaceutical industry, it is important to point out the essential necessary requirements, which needs to be taken into consideration (Dodgson, 2018). 


Manufacturing output and capabilities: this particular aspect states the fact that, there have been a number of strategic priorities, which needs to define the key manufacturing strategies that are being propagated by the organisations under the pharmaceutical industry. In the viewpoint of Adamo et al. (2016), it is to be noted that, as per the current scenario and overview of the communicable and non-communicable diseases, the primary focus of the pharmaceutical industry lies in the fact that, it intends at the strengthening of the disease management processes in order to entrust the responsibility of a dedicated task force in order to effectively locate the manufacturing capabilities in each of the medical vertical in the production of pharmaceutical products. With a set of competitive priorities, it is important to specify and measure the extent to which a definite pharmaceutical dimension that are applied in order to control the manufacturing capability of the in order to improve the change. It is to be noted that, the existence of manufacturing capability tends to create an opportunity to attain creativity and effective productivity within the premises of the pharmaceutical industry (Gutmann et al. 2015). 


Total productive maintenance: the primary aim of TPM is designed to effectively denote the equipments that are required for the easy access and affordability of the designated efficiency, which occurs throughout the organisational premises. On the other hand, in the viewpoint of Madhav et al. (2018), it is also important to note that, the maintenance of management within the premises of the TPM program are usually divided into definite short term activities in order to attain long term efforts.


Total quality management:  it is often considered as one of the dominant aspects and paradigms, which are associated with quality management. On the other hand, as per commented by Singh and Bhatia (2015), it is also important to note that, the theoretical and practical approaches that are associated with the attainment of recognizable results tend to play an important role in the promulgation of necessary facets and procedures. The controlling and inspection of the final product is essentially inspected into the sorting out of the defensive units by a definite and separate department and procedures. The current modern approaches that are associated with total quality management tends to focus on the process quality and with the implementation of the prevention of failure methods, it will be easy and convenient to undertake and adopt definite facilitations that are present in the pharmaceutical industry. 


Lean manufacturing: the processes and procedures that are associated with lean production in the pharmaceutical industry tend to state the fact that, in the times of global competition, the manufacturing companies essentially strive for the improvement of the performance level. On the other hand, in the viewpoint of Jainet al. (2014), it is also important to note that, the application and implementation of the lean approaches that are associated in the tenets of the pharmaceutical industry, intends at influencing the practical approaches of lean production in the delivery of products and services. 


Implementation of good governance: it is to be noted that, the implementation of good governance tends to play an important role in the effective governance principles of the identification of the necessary responsibilities that are being implemented in order to manage the legal as well as financial and ethical obligations (Valmohammadi and Roshanzamir, 2015). 


Therefore, in the viewpoint of Annabiet al. (2015), it is important to speculate that, after an extensive assessment, it can be propagated by stating the fact that, the predominant elements of operational excellence plays a significant role in the propagation and formulation of the necessary processes and procedures that needs to be taken into account. It is to be noted that, the primary goal that is assigned to operational excellence tends to state the fact that, the management of business in the present pharmaceutical industry, has become integrated largely and is characterised by the specification of provision of equipments, which include supply chain as well as technical capabilities. On the other hand, it is also important to note that, the complexities that are prevalent in the overview of the pharmaceutical industry can be a challenging aspect through the process of implementation. It is also important to note that, the facet of product development and application of thinking also tends to play an important function in the growth of business. Thus, in the context of pharmaceutical industry, it can be said that, it is important to identify the necessary propositions, which are associated with the factors relative of leadership and management (Schillingand Neubauer, 2017). 


The definite value system that is present in the pharmaceutical industry defines the presence of stakeholders that tends to denote the ways by which the organisation essentially operates. Thus, it can be said that, the current employees who are working with the industry needs to be provided with a developmental path, which will eventually result in the management of teamwork and development. However, as per the tenets generated by business excellence framework, it can be said that, with the development of value proposition and release of individual skill of the employees of the organisations, it will be beneficial for the continuous improvement of the effective responsiveness and adaptability of the processes and procedures that needs to be taken into effective account. Furthermore, it is imperative to note that, the pharmaceutical industry also needs to focus on the sustainable results that are effectively pointed out in order to attain results and definite outcomes. Improvement of performance with the use of relevant data and logistic in order to understand the variability of improving strategic as well as operational decision making processes. The cost and performance management in the premises of the pharmaceutical industry is also an important facet, which is associated with the improvement of the basic methods that are extensively followed (Brownand Grundy, 2016).  


Assessment and implementation of model 

As per the proposition of operational excellence, it can be said that, the operational excellence model and the propositions that are associated with it tends to play an important role in the promulgation of the necessary processes and procedures that needs to be taken into effective consideration. Thus, the assessment and implementation of the model is as such that, the strategic interventions need to be adopted by the pharmaceutical industry in order to attain creativity and significant productivity in the organisational premises. 


The application of OE model by an organisation in Pharmaceutical industry

Operational excellence model can be mentioned by the process through an organisation can develop their work procedure as well as enhance the business growth of an organisation. It can be added that the operation excellence model can be implemented in the organisational industry in terms of creating value of the business process (Stojanovic and Nedic, 2016). In addition to that, it can be said that the pharmaceutical organisation has to focus on the matter of accuracy in terms of preparing medicine using drugs. For this reason organisation is needed to focus on the recruitment procedure in terms of ensuring quality of preparing medicine.


It can be said that management of organisation of a pharmaceutical organisation is needed to focus on the process of preparing a strategic plan in order to reach the business goal of the organisation (Schneider et al. 2015). For this reason the management of the organisation is required to prepare an effective business operational budget to assess the requirements of the financial funding in terms of executing the operational plan. Management of organisations can follow the program relating to the departments such as govern, design, implement and nurture the organisational excellence.


It can be added that the management of an organisation can focus on the infrastructure as well as organizational structure. In the strategic plan the management can provide stress on efficiency of team work as well as the responsibility of the team leader. Assessing the performance and knowledge, management can provide responsibility to the employee to play the role of leader.


Primarily, strategic planning can be prepared based on the capability of the strength of the organisation specifically the value creating ability of the employees of the organisation. In the strategic planning, the management is required to focus on the communication process regarding the matter of improving the work operation in the organisation. It is the duty of the higher authority to make specify the communication system among the employees in terms of bring clarity in the process of specifying the instruction. It can be added that the management is required to follow the effective and specific communication system in relation to keep evidence of communication system. On the other hand the management of the organisation can concentrate on the issue of proper application of feedback relating to the matter of following the way of work operation. It can be said that it is duty of the management of the pharmaceutical organisation to implement the procedure through which the employees and the higher authority or the employees who are provided the responsibility to supervision can be interrelated.


In order to implement the operational excellence planning, the management of a organisation is required to focus on the matter of keeping organisational structure well. For these reason the management of the organisation has to control the irrelevant issues like behavioural problems, ego problems among the employees. In order to reach the goal the management is required to implement the value such as providing priority in the competency (McGlacken et al. 2018). In relation to that the management of a pharmaceutical organisation can keep the neutral image and can control the organisational politics. In addition to that the management can avoid allegation regarding the matter of biased in the organisation. The management is required to assess the system of communication in relation to maintain the process of feedback properly. It is needed to specify the matter of responsibility in terms of performing a particular task. It means an employee is needed to know that in terms of executing the task if any problem is raised then whom to be informed or where to go. On the the other hand the higher authority is also needed to specify the responsibility in terms of performing the act of supervision (Dubey et al. 2015).


On the other hand the management of the organisation is needed to introduce motivational approaches regarding the matter of upgrading the work atmosphere of the organisation. It can be added that these approaches can heighten the business value of the organisation.


Approach of assessing performance of the organisation through the OE model

Successfulness of operational excellence model is depended on the proper system which is required to implement in order to heighten the business organisation. It can be added that the organisation is required to focus on the business process through understanding the performance and capability. The management of the organisation is also needed to keep data and information in terms of keep the evidence to bring changes in plan as per requirement of organisation and the market condition.


  • Keep proper documentation of  the productivity of the employees:

The management of the organisation is required to focus on the the matter of keeping documents of the performance of the employees in relation to the matter of reaching to the goal and objective. In addition to that mitigation of deadline can be marked as a criteria to assess the performance of the employees. On the other hand the management of the organisation is required to provide stress on the matter of upgrading productivity of the employees relating to the matter of heightening the business process of the organisation (Chaturvedi et al. 2017). The management can keep the documentation of the performance of the employee in terms of assessing the value of the performance in terms of upgrading the performance of the employees. 


In relation to that the higher authority has to recruit neutral performance indicating system in connection to assess the performance of the organisation. The management can provide the responsibility to the HR department of the organisation in relation to make assessment of the performance of the employee. Through the process the management can assess the performance of the employee based on the effectiveness of the employee. It can be marked that the management can make decisions assessing on the different qualities of the employees such as the the decision making ability of the organisation as well as the multitasking ability of the employees. In addition to that based on the performance of the employees the process of business growth can be occured. 


  • Arrange meeting to provide proper feedback:

Performance indicating process and its result can be implemented by the arrangement of meeting procedure. It can be added that the management is required to organise meeting in relation to inform the employees about their strength, weakness and the way out of the problems can be analyzed in the meeting. The management, especially the HR team is required to focus on the meeting procedure in terms of clarifying the growth of the employees in relation to their performance. The HR team is required to handle the situation regarding the matter of the say or complain of the employees regarding the work procedure (Leker and Utikal, 2017). 


  • Providing motivational approaches as well as stress free atmosphere:

An organization in pharmaceutical industry needs to focus on motivational process to enhance the performance of the employees. The HRM needs to implement performance appraisal process to find out the performing and nonperforming employees. Based on it, an organisation needs to implement reward policies in which it needs to provide rewards for the achievement of the employees. An organization can also promote its employees and provide incentive to motivate them to work effectively. It can also arrange training process of non performing employees and communicate with them to gain knowledge about their problems. It can be helpful to develop trust and motivate those employees to improve their work (Leker and Utikal, 2017). 


  • Arrangement of the training classes to improve the quality regarding the matter of improving work process: with the implementation of effective training classes, it will help in the improvement of the quality assurance that are associated with improvement of work process. In the context of operational excellence, it can be said that, as the employees who are working with the pharmaceutical industry is provided with proper training and induction, it will be easy and convenient for the employee to understand the framework of business excellence that are present within the premises of the industry. Furthermore, in the viewpoint of Graban (2016), it can also be said that, the basic objectives that are being protected by the managerial heads of the organisation also tends to play an important role in the promulgation of the necessary processes and procedures that needs to be taken into effective consideration. On the other hand, it is also important to note that, unlike the initiatives of continuous development, the employees are employed at a lower in order to increase the productivity. However, with the help of proper training, the employees tend to understand the roles and responsibilities that have been assigned to them, in order to create an increase of creativity and excellence towards their work (Robinson, 2017). 


The application of the plan to improve the work process

In pharmaceutical industry, the organisational excellence model is necessary to manage the workflow and enhance productivity. In this process, different components of organizational excellence can be implemented effectively to get desired results in the organisations under this industry. The communication is necessary to maintain the interaction between the employees and management and also with customers, suppliers and distributors. Effective communication is helpful to mitigate any conflict between different stakeholders within this industry and the workflow can be maintained by the management of an organisation. An organisation needs to maintain internal communication to gain knowledge about different problems and performance gap and it is helpful to take proper steps to enhance productivity (McGlacken et al. 2018). 


The leadership and management is also necessary plan the workflow in the organisations under pharmaceutical industry. The management needs to divide and allocate the work within different teams and the leaders must show the correct path to their subordinates to complete the works effectively within a specific time. The management also needs to conduct performance appraisal process to identify the employees who can work efficiently. 


The human resource is an essential part of the organizational excellence as they are assigned to manage the organisation. The HRM needs to plan properly to run the organization recruit employees on their skills and experience. They need to be unbiased in this process and also conduct effective training and development process or the employees. The training and development is helpful to enhance the skills of the employees and help them to acquire new skill that enables their productivity (Nolan and Anderson, 2015). 


Conclusion 

The global world is undergoing complications and complexities due to the changing needs and demands of people. Operational excellence depends n the actions and experience of the employees. The talents, skills and experience need to be exercised effectively within the given period of time. The employees need to manage their skills and experience and shape them towards dynamism. Therefore, it can be concluded by stating the fact that, the facets and principles of operational excellence tends to play an important role in the promulgation of the processes and procedures that needs to be taken into consideration. On the other hand, it is also important to note that, with the proper guidance from the business excellence framework, it becomes easy and convenient for the industry to get an idea regarding the importance of such management strategies in a definite industry. 

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