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Unlock Operational Excellence Through Artificial Intelligence

Updated: Nov 15, 2023

The adoption of digital technologies enables companies to improve their processes and achieve very competitive operational targets. Especially in recent years, AI has emerged as the go-to choice for businesses trying to achieve operational excellence. When AI is used accurately in operations, it can help companies to make insightful decisions that improve the business's profitability and efficiency while enhancing the end-user experience.

If there is an unknown technology, it is Artificial Intelligence (AI) itself. This is partly because it is still relatively unknown territory for most companies. In addition, it's partly because the technologies in artificial intelligence themselves continue to evolve. By means of Covid-19, business process automation has seen a huge increase as many companies transform their internal operations to meet evolving market conditions and customer expectations.

Companies have developed various methods and solutions to extract meaningful information, such as gathering data from production, automatic process analysis, and lean tools for the productivity of the company. Innovation with AI has enabled companies to reduce operating expenses and increase revenues. The progress in organizational competitiveness is apparent through technological improvements in companies, resulting in achieving operational excellence.

There is no argument that AI has the potential to deliver huge returns on a company's efficiency. Achieving operational excellence within your organization becomes a collaborative effort between your people and digital tools such as AI-based technologies.

So what exactly is meant by operational excellence?

To understand this term in-depth, it is important to describe both concepts: 'excellence and operation'. The precise meaning of "excellence" is: singularly worthy of admiration or respect or superior in goodness. “Operation” is defined as the execution of something.

Operational Excellence is a methodology that focuses on growth via process improvement. The goal of operational excellence is to create an operational plan through a database and predictive analytics to improve quality, materials, performance and reduce costs accordingly.

A recent survey suggests that close to half of respondents have a formal enterprise-wide operational excellence program (45%), while a majority, 54%, believe that a wider understanding of operational excellence methodologies is on the rise.

Directors want to compete with the efforts of leading tech companies with operational excellence like Amazon, Google, and Microsoft. Putting lean and quality on the map, Toyota is interestingly at the top of the list. Let's take a closer look at Toyota:

Toyota is one of the largest carmakers in the world, also it was the first automobile manufacturer to produce more than 10 million vehicles in 2012. As a pioneer of Lean manufacturing through the Toyota Production System (TPS), Toyota is constantly breaking records and is ahead of the game in its commitment to operational excellence.

Why Operational Excellence?

Simply Operational Excellence is cheaper, better, and faster. Here are some reasons why a company should adopt Operational Excellence to their manufacturing process:

Operational excellence enables companies to seek for perfection in each process, and task. Continuously defining problems, developing solutions, and implementing and controlling them results in eliminating problems that create costs.

Eliminating Losses

Operational Excellence focuses on delivering value to the customer and eliminating of non-value added activities. The best thing about AI is that it automatically highlights areas that require immediate attention such as continuous losses.

Digital transformation makes work easier by automating tasks that used to require manual interaction. In addition to reducing error, it allows companies to do more in less time. For example; the latest AI systems process way more information than humans can analyze. This results in concrete productivity benefits.

And there you have it; how AI solutions can help you drive operational excellence. We hope this article clears any doubts you may have about the correlation between the two.

Why Khenda?

With Khenda, you can take the first step towards operational excellence by analyzing key operational processes, designing efficient workflows, and developing insightful metrics to measure the performance of your company.

One of the Khenda solutions, Khenda Analyze, increases productivity by digitizing manual process analysis with AI-based video analytics. It automatically extracts cycle time from recorded videos of processes. Also, it accelerates continuous improvement to achieve operational excellence through various advanced engineering tools including time study, line balancing, root cause analysis, method analysis and value-added analysis and more.

Thanks to our experience in the industry, we are helping countless organizations and companies improve their process efficiency to achieve operational excellence.

Contact us today to find out how your company can benefit from our AI solutions!


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