What does operational excellence mean in the Fourth Industrial Revolution era?

Although the term Operational Excellence (OE) has been widely applied over the past few decades, its meaning is still ill-defined. This issue may be especially aggravated after the advent of the Industry 4.0 (I4.0), which introduces disruptive digital technologies that may help to overcome tradition...

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Veröffentlicht in:International journal of production research Jg. 60; H. 9; S. 2901 - 2917
Hauptverfasser: Luz Tortorella, Guilherme, Cauchick-Miguel, Paulo A., Li, Wen, Staines, Jo, McFarlane, Duncan
Format: Journal Article
Sprache:Englisch
Veröffentlicht: London Taylor & Francis 03.05.2022
Taylor & Francis LLC
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ISSN:0020-7543, 1366-588X
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Abstract Although the term Operational Excellence (OE) has been widely applied over the past few decades, its meaning is still ill-defined. This issue may be especially aggravated after the advent of the Industry 4.0 (I4.0), which introduces disruptive digital technologies that may help to overcome traditional barriers in operations management. This paper examines the concept of OE in the Fourth Industrial Revolution. For that, we conducted semi-structured interviews with experts from both academia and manufacturing companies, focusing on the shifts in OE's concepts implied by the I4.0 with regards to four key aspects (people, partnerships, processes, and products and services). Experts' responses had their content analysed through the lens of General Systems Theory, which allowed the formulation of propositions towards the conceptualization of OE in the digital transformation era. Our findings indicated that, although some attributes may remain the same, the emphasis of OE in the Fourth Industrial Revolution is likely to change. The extensive integration of digital technologies into manufacturing companies tends to entail different expectations in terms of excellence in people, partnerships, processes, and products and services. As interconnectivity and cyber-physical systems gain prominence, a more integrative and systemic perspective of OE is facilitated, expanding its meaning and understanding.
AbstractList Although the term Operational Excellence (OE) has been widely applied over the past few decades, its meaning is still ill-defined. This issue may be especially aggravated after the advent of the Industry 4.0 (I4.0), which introduces disruptive digital technologies that may help to overcome traditional barriers in operations management. This paper examines the concept of OE in the Fourth Industrial Revolution. For that, we conducted semi-structured interviews with experts from both academia and manufacturing companies, focusing on the shifts in OE's concepts implied by the I4.0 with regards to four key aspects (people, partnerships, processes, and products and services). Experts' responses had their content analysed through the lens of General Systems Theory, which allowed the formulation of propositions towards the conceptualization of OE in the digital transformation era. Our findings indicated that, although some attributes may remain the same, the emphasis of OE in the Fourth Industrial Revolution is likely to change. The extensive integration of digital technologies into manufacturing companies tends to entail different expectations in terms of excellence in people, partnerships, processes, and products and services. As interconnectivity and cyber-physical systems gain prominence, a more integrative and systemic perspective of OE is facilitated, expanding its meaning and understanding.
Author Staines, Jo
Luz Tortorella, Guilherme
Li, Wen
McFarlane, Duncan
Cauchick-Miguel, Paulo A.
Author_xml – sequence: 1
  givenname: Guilherme
  surname: Luz Tortorella
  fullname: Luz Tortorella, Guilherme
  email: gtortorella@bol.com.br
  organization: Universidade Federal de Santa Catarina
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  givenname: Paulo A.
  surname: Cauchick-Miguel
  fullname: Cauchick-Miguel, Paulo A.
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  surname: Li
  fullname: Li, Wen
  organization: The University of Melbourne
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  givenname: Jo
  surname: Staines
  fullname: Staines, Jo
  organization: The University of Melbourne
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  givenname: Duncan
  surname: McFarlane
  fullname: McFarlane, Duncan
  organization: University of Cambridge
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Snippet Although the term Operational Excellence (OE) has been widely applied over the past few decades, its meaning is still ill-defined. This issue may be especially...
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SubjectTerms Cyber-physical systems
Digital technology
Fourth Industrial Revolution
General systems theory
Industry 4.0
Manufacturing
Operational excellence
Operations management
Partnerships
qualitative study
System theory
Systems theory
Title What does operational excellence mean in the Fourth Industrial Revolution era?
URI https://www.tandfonline.com/doi/abs/10.1080/00207543.2021.1905903
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Volume 60
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