Operational Excellence (OE) is the systematic implementation of principles and tools designed to enhance organizational performance, and create a culture focused on continuous improvement. It is intended to enable employees to identify, deliver, and enhance the flow of value to customers. Common frameworks associated with operational excellence include: lean management and Six Sigma, which emphasize efficiency, waste reduction, and quality improvement. Organizations that adopt these practices may report increased customer satisfaction and operational efficiency.
Operational Excellence leverages earlier continuous improvement methodologies such as Lean Thinking, Six Sigma, OKAPI, and scientific management. The concept was introduced in the 1970s by Dr. Joseph M. Juran, who taught Japanese business leaders quality improvement methods. It gained prominence in the United States during the 1980s as a response to the competitive pressure from Japanese imports, leading to what some termed a "quality crisis".