First thing I understood was a counter intuitive concept that excellence is not in exclusivity. We often think of excellence as something possessed or commanded by a few and is often at disposal of only a few. But actually excellence is in something thats accessible to the masses. Excellence enriches the society at large. examples of excellence are many like Google, Microsoft, Apple, Delhi metro, Bandra-Worli sea link, Xerox and nature itself! (etc..)
Efficiency as defined by Peter Drucker is "doing things right" and effectiveness is " doing the right things". Efficiency is basically output divided by input. Efficiency impinges on the techniques and methods followed. Efficiency depends on the way you choose to achieve your goals.
Effectiveness is, on the other hand, the decision of the destination itself. To decide on a particular sequence of operation in order to minimize throughput time can be called as effectiveness. If i have decided to carry on a punching operation before bending operation to maximize usage of the sheet of metal and minimize tool change time, i am making (or rather designing) an effective process.
But my machines will still have to be efficient. They will still have to be maintained to prevent breakdown and to ensure that the produce minimum unacceptable parts. My machines have to achieve a production rate at minimum tool wear. Thus we can see how important it is for a shop floor to be designed effectively and to make sure individual machining units are efficient.
Its important to remember that excellence is not a destination but a journey. Nothing is 100% perfect right? so there is always scope for improvement. Its also important to remember that what is excellent today might or might not be excellent tomorrow. Ex. Re 1 call at the advent of this millennium was considered to be excellent but today its not.
Hence for an organization to be able to maintain a sustainable competitive edge its leaders have to strive to make its processes and people more effective and efficient. Thats the only way to ensure continued excellence.
I believe 'Toyota' is one of the most inspiring stories of excellence. It did not only revolutionize auto manufacturing, but almost all kind of manufacturing done all over the world. Even its competitors accept this as a fact and have a lot of respect for toyota and its production systems which have become a norm in the auto industry.
http://www.youtube.com/watch?v=T5zcCk-uF3g
I hope you like this inspirational video. Please feel free to comment.
Efficiency as defined by Peter Drucker is "doing things right" and effectiveness is " doing the right things". Efficiency is basically output divided by input. Efficiency impinges on the techniques and methods followed. Efficiency depends on the way you choose to achieve your goals.
Effectiveness is, on the other hand, the decision of the destination itself. To decide on a particular sequence of operation in order to minimize throughput time can be called as effectiveness. If i have decided to carry on a punching operation before bending operation to maximize usage of the sheet of metal and minimize tool change time, i am making (or rather designing) an effective process.
But my machines will still have to be efficient. They will still have to be maintained to prevent breakdown and to ensure that the produce minimum unacceptable parts. My machines have to achieve a production rate at minimum tool wear. Thus we can see how important it is for a shop floor to be designed effectively and to make sure individual machining units are efficient.
Its important to remember that excellence is not a destination but a journey. Nothing is 100% perfect right? so there is always scope for improvement. Its also important to remember that what is excellent today might or might not be excellent tomorrow. Ex. Re 1 call at the advent of this millennium was considered to be excellent but today its not.
Hence for an organization to be able to maintain a sustainable competitive edge its leaders have to strive to make its processes and people more effective and efficient. Thats the only way to ensure continued excellence.
I believe 'Toyota' is one of the most inspiring stories of excellence. It did not only revolutionize auto manufacturing, but almost all kind of manufacturing done all over the world. Even its competitors accept this as a fact and have a lot of respect for toyota and its production systems which have become a norm in the auto industry.
http://www.youtube.com/watch?v=T5zcCk-uF3g
I hope you like this inspirational video. Please feel free to comment.
Nice video! ! This scores well on both effectiveness and efficiency fronts. So excellence multiplied.
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