Axiomatic Design of Production Systems for Operational Excellence

Companies should design unique production systems according to each company’s overall strategy. The production system is the set of methods that transform resources into finished goods and services. To be competitive and profitable, these resources should be appropriately managed. While what is appropriate depends on the company, every organization should be dynamic and adapt to changing market conditions. It is not sufficient to improvise, so it is necessary to structure companies considering all the variables and scenarios. This should guarantee that all the different contexts and situations have been accommodated in the best way. This paper focuses on Axiomatic Design of production systems. Adding global operations optimization to a global manufacturing strategy can provide cost-reduction opportunities and process efficiency. In particular, the paper focuses on building and sustaining the organization and capabilities of the supply chain. At the same time, the paper compares different operational excellence models to balance efforts and advantages. Design for operational excellence means creating a strategic operating model.