Having discussed operational excellence measures now we'll take you through the some of the typical mindset or behavior we have in measuring the metrics. First one is inclinations towards isolated measurement. As we have seen the operational excellence mature, most of the measurements are meant for isolated measurement, for example, efficiency improvement, it talks about only the productivity improvement or rejection percentages talk about only the rejection percentage. It didn't talk about any equalization aspect, we didn't talk over the efficiency aspect. On Time delivery. It is talking about only the aspect of on time delivery is not doesn't talk about the other aspects of efficiency.

Addition bought another thing. So, most of the measurements are isolated measurements and the more weightages given to resource utilization, the resources can be equipment people or material can be anything else, more weightage going to the transition aspect, but that alone is not operational excellence utilization is important, but that alone will not drag organization towards profitability. And important thing is there is no differentiation between critical and non critical resources. For example, from the previous discussion, we talked about the efficiency improvement in which area machinery whether it is a critical area, critical area, it doesn't talk about it doesn't insist about them, what happens is even in non critical area, we can improve the efficiency and we can claim that we are improving the productivity we are claiming that operational excellence is good or bad robust, the point is it has to be measured in a critical area, the ones that critical areas improved automatically the organization growth also will improve, but this isolated mindset of measurement doesn't give room for this classification critical or non critical.

As we said earlier, the more focus is given on individual isolated measurement or resource utilization or it is more of self centered kind of measurement, the survey only being measured we can put it as a summary it is more focused on localized optimization, rejection percentage our inventory reduction, utilization improvement or efficiency improvement, these are related with localized optimization irrespective of meeting the customer requirement, it is more focused on individual or localized optimization. So, because of this what happens is there is no strong correlation with the business profitability, for example, I will improve my productivity I will improve my inventory turn, I will improve by utilization per se, I will improve my rejection percentage, but whether it is directly related to the business profitability or not, that measurement doesn't do much clarity, because it is more focused on the localized optimization or it is measured in a isolated environment, the focus that mentality is functional optimization or isolated optimization, which will never have a linkage with the business profitable there are only we need some measurement which takes care of holistic play and it will have a linkage on business profitability, that is a essence of this oily subject which you are discussing you know.

Anyway, we are going to discuss In the subsequent session as a foe, I want you to appreciate the advantages and drawbacks in the isolated measurement under operational excellence. Now, the next question is what will happen if it continues what it results. So, this kind of isolated measurement of localized optimization, no differentiation between critical and non critical there is no linkage with the business profitability, what will happen in results in incremental improvements, standalone benefits have not much impact on profitability. Definitely this measurements will do improvements but it is only incremental not a radical improvement because only standalone benefits for example, space productivity It is only standalone benefits. Little you improvement only few percentage of the incremental benefits is not a radical improvement and all those measurements and all those drives under operational excellence pillar, how much impact on profitability. So, there is a need for having a measure which will take care of most other things, it could be material it could be equipment, it could be people, what is the mission?

There only this UI measurement or UI metric comes into picture. It bridges the gap to some extent as of No, a given some clarity about what is mean by operation excellence. Why is a session pursuing operational excellence initiatives? How it is being measured? On each measure? We have some Kp what is the purpose of this KPI And it is adding some advantages as well as the design some drawbacks, the main drawbacks we're seeing is it is not linked with the business profitability, it is not differentiating critical or non critical, it is not seeing in a holistic way, there are only these we comes into picture from our experience wherever we implemented this UI, we are senior significant improvement in the business profitability.

So, we are concluding this buoy measurement, which is the gap to some extent. The next session, we are going to discuss in depth on we Oh it is being measured, how it is encompassing all the aspects of organization how it is linked with the business profitability.