Sharing Date12 May, 2025
Driven by the competitive pressure created by sustainability in the business world, companies have increasingly begun to pursue opportunities that will advance them, with the aim of minimizing their environmental and social impacts and becoming more sustainable. This trend has heightened interest in operational excellence initiatives. Operational excellence is a continuous improvement approach that aims to increase efficiency and effectiveness in business processes. Businesses that optimize their processes, prevent waste, and improve working conditions achieve significant gains in both competitive advantage and sustainability. In this context, operational excellence can be analyzed in terms of environmental, social and governance impacts.
One of the main motivations of operational excellence is to minimize the environmental impacts caused by production processes. The most important step to achieve this goal is to establish an effective monitoring system by determining the right performance metrics. As part of the operational excellence projects implemented in 2020, Coca-Cola A.Ş. focused on areas such as energy management, sustainable packaging, and water management. In this context, 330 million MJ of energy savings were achieved, 45,000 tons of CO2 emissions and 104,000 m³ of water consumption were reduced.[1]
Regular data monitoring, which is one of the most important steps in operational excellence efforts and is carried out diligently by the organizations that understand the importance of the issue, facilitates the management of environmental impacts. Choosing the appropriate product (raw material) and production method plays a critical role in reducing environmental impacts as much as an effective monitoring system and accurate data analysis. Continuous improvement efforts direct businesses towards a sustainable product portfolio in line with the goal of “finding better” and encourage them to adapt to green technologies and systems. Environmental impacts can significantly be reduced through system development efforts and green innovation investments. Thus, increased efficiency in operational processes not only reduces costs, but also provides a direct gain in terms of environmental sustainability.
As much as the equipment used in production, how this equipment is used also plays a critical role in terms of environmental sustainability. Equipment whose maintenance work is delayed experiences more breakdowns, which makes maintenance processes much more complicated. Furthermore, delayed maintenance can lead to occupational accidents and jeopardize employee safety. In this context, excellence efforts are being carried out to increase the efficiency of equipment under the hat of regular maintenance work. For example, Total Productive Maintenance (TPM) is a maintenance management system that aims to minimize machine breakdowns. Periodic preventive maintenance work extends the life of machines and contributes to the reduction of occupational accidents.
3M’s “Pollution Prevention Pays (3P)” program and Lean Six Sigma practices have enabled the company to achieve its environmental targets beyond expectations. Looking at the 2000-2005 environmental targets, a 61% reduction in volatile air pollutants was achieved against a 25% reduction target, and a 64% reduction in toxic emissions against a 50% target. The target of 20% improvement in energy efficiency was exceeded, reaching 27%, and the target of 25% reduction in waste generation was realized as 30%. In addition, the number of 3P projects tripled from the targeted 400 to 1262 projects. From 1975 to 2005, the company achieved dramatic sustainability successes, avoiding 2.6 billion pounds (1.18 million tons) of pollutants and saving more than $1 billion. This case is a concrete example of how the tools of operational excellence can bring huge environmental and financial gains in the long term.[2]
Operational excellence not only supports environmental sustainability but also transforms the employee experience and business processes. A study of more than 300 Nike supplier factories in 11 developing countries found that lean manufacturing practices reduced non-compliance with labor rights standards by 15%. Compliance with labor standards on issues such as overtime and wages in factories has increased. This result shows that lean production can improve social performance by improving employee relations.[3] Operational excellence efforts such as lean production pave the way for employees to unite towards common goals and require effective team management. Projects carried out with the right teams increase employee participation and loyalty, thereby boosting productivity. At the same time, they strengthen the competencies of employees by supporting the development of technical and personal skills. The Kaizen approach, which adopts the principle of continuous improvement, aims to create big effects with small changes. In Kaizen-implemented enterprises, industrial relations are strengthened, more disciplined projects are carried out with small teams, and more emphasis is placed on employee training. This process also supports leader development more strongly than in previous structures.[4]
Using data collected from 411 production managers in Mexico, a study found that continuous improvement practices such as Kaizen have a rapid and significant impact on employee well-being. According to the model results, in a scenario where lean manufacturing practices are fully adopted, the time for businesses to maximize their social sustainability performance is calculated to be approximately 10.25 years. In particular, the approach can be fully implemented in less than five years, but longer time is needed for the integration of other lean tools. This indicates that a long-term transformation is required for lasting social improvements.[5] However, each step taken in this transformation process ensures that the continuous development approach is integrated into the corporate culture and that employees gain new perspectives. Thanks to regular projects, employees’ operational blindness is reduced and areas for improvement can be identified more easily. Employees gain greater command over processes, seize opportunities for improvement, and develop their skills. Thus, productivity increases, work accidents decrease, and occupational diseases are prevented by correcting ergonomic errors.
In 2012, Turkcell Superonline launched the “Operational Excellence Program”, which has taken significant steps towards customer satisfaction and improved working conditions through operational excellence efforts. The program was designed as a combination of PMBOK standards, the basic project management standard for companies set by the Project Management Institute (PMI), and Lean 6 Sigma methodology. Based on Lean 6 Sigma methodology, a management strategy that uses statistical tools to define, measure, analyze and control all processes, the Program improved Turkcell Superonline’s process management, transferred manual work to software and prevented overtime. To increase customer satisfaction, a proactive notification in case of possible interruptions made it possible for maintenance teams to take action to solve the problem before the customer’s request is received. Thus, the goal of uninterrupted communication with stakeholders was strengthened and employee loyalty was increased through clear workflows. The program reduced operational costs, strengthened risk management, and increased competitiveness. The fault resolution time was reduced by 60 minutes, the complaint rate was reduced by 60% in the fourth quarter of 2013 compared to the first quarter of the year, and the opening and closing time of the fiber internet infrastructure was shortened by 76.[6]
Strengthening governance processes in the context of sustainability can emerge because of operational excellence approaches. These processes, which transform the management approach and the way of doing business, increase accountability, raise sensitivity to ethical values, reinforce transparency, and encourage companies to adopt a sustainable management approach. In this framework, operational excellence not only increases the efficiency of processes, but also raises governance standards and makes strategic decision-making mechanisms more effective.
Total Productive Maintenance (TPM), which supports sustainable governance, is an integrated system that provides improvement in environmental, social and governance areas. TPM includes basic elements such as planned maintenance, quality management, training, occupational health, and safety (OHS) together with the Kaizen approach. In this context, environmental impacts are minimized by preventing resource losses, reducing malfunctions, and avoiding unnecessary expenditures, the rate of quality products and thus customer satisfaction is increased, and positive impacts are created to protect human health through periodic trainings and strict OHS rules for office and production areas. Therefore, TPM, which plays a role in the development of management processes for the adoption of all these elements within the organization, is considered as a comprehensive improvement and development work, and the successful implementation of TPM provides the opportunity to strengthen corporate management processes.[7]
Such a transformation facilitates the consolidation of corporate trust, and the adoption of a management approach aligned with sustainability goals. Improving operational processes contributes to accelerating decision-making mechanisms, strengthening the leadership structure, and increasing interaction with stakeholders. Thus, companies can move towards their long-term strategic goals on a more solid foundation and support sustainable growth.
Approaches such as “Lean Thinking” that encourage waste prevention and efficient use of resources also improve the performance of businesses. For example, by applying this method in 1991, Wiremold halved its production area, eliminated the need for warehousing and reduced delivery time from four weeks to two days. In this process, 11 million dollars’ worth of products in stock turned into 24 million dollars’ worth of sales. Similarly, Porsche halved its production area, doubled productivity, reduced lead times from six weeks to three days, and reduced supplier errors by 90% through operational excellence projects in 1994.[8]All of these contribute to many of the issues addressed under the heading of sustainability.
Operational excellence and sustainability are two fundamental elements that feed each other and shape long-term corporate success. Operational excellence is an approach that creates sustainable value in environmental, social and governance areas while increasing efficiency. Businesses focusing on operational efficiency first achieve short-term operational efficiency gains and then secure their long-term sustainable success. Minimizing environmental impacts and using resources efficiently allows businesses to reduce their environmental footprint while saving costs. Improvements in the social dimension strengthen corporate culture by increasing employee satisfaction and loyalty. A strong corporate structure creates a more efficient business environment and enables competitive advantage. Improvements in governance enhance stakeholder trust by improving companies’ internal audit and transparency processes. Thus, in light of the roadmaps provided by operational excellence studies, businesses can reach their sustainability targets with a more systematic change and shape the sector with the best practices implemented. This circular interaction guarantees both corporate success and wider social and environmental benefits.
Footnotes:
1) SKD Türkiye. (2022). Türkiye’de Beş Sektörde Döngüsellik Potansiyeli Ön Araştırma Raporu. Şu adresten erişilebilir: https://www.skdturkiye.org/files/yayin/turkiyede_bes_sektorde_dongusellik_potansiyeli_on_arastirma_raporu_180522.pdf. Son erişim tarihi: Mart 2025.
2) EPA. (2024). 3M – Lean Six Sigma and Sustainability. Şu adresten erişilebilir: https://www.epa.gov/sustainability/3m-lean-six-sigma-and-sustainability. Erişim Tarihi: Mayıs 2025.
3) SSRN. (2015). “Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain”, Management Science, Forthcoming, Watson Institute for International Studies Research Paper No. 2013-09, Rotman School of Management Working Paper No. 2337601. Şu adresten erişilebilir: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2337601 . Erişim Tarihi: Mayıs 2025.
4) Imai, M. (1986). Kaizen: The Key to Japan’s Competitive Success, New York: McGraw-Hill. Şu adresten erişilebilir: https://maaw.info/ArticleSummaries/ArtSumImaiKaizen1986.htm. Erişim Tarihi: Mart 2025.
5) Díaz-Reza, J.R. vd. (2023). “Lean Manufacturing Tools as Drivers of Social Sustainability in the Mexican Maquiladora Industry”, SSRN. Şu adresten erişilebilir: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4640461. Erişim Tarihi: Mayıs 2025.
6) HR Dergi. (2014). Turkcell Superonline’da “iyiden mükemmele” giden bir yolculuk: Operasyonel Mükemmellik Programı. Şu adresten erişilebilir: https://hrdergi.com/turkcell-superonline-da-iyiden-mukemmele-giden-bir-yolculuk-operasyonel-mukemmellik-programi. Erişim Tarihi: Mart 2025.
7) Mwanza, B. G. & Chanda, H.. (2015). Impact of Total Productive Maintenance (TPM) Practices on Manufacturing Performance: A Case Study of a Manufacturing Company. Şu adresten erişilebilir: https://www.academia.edu/93756566/Impact_of_total_productive_maintenance_TPM_practices_on_manufacturing_performance_a_case_study_of_manufacturing_company .Erişim Tarihi: Mart 2025.
8) Womack, J. P., & Jones, D. T. (1996). “Lean Thinking: Banish Waste and Create Wealth in Your Corporation”, Journal of the Operational Research Society, 48(11), Ocak 1996. Şu adresten erişilebilir: https://www.researchgate.net/publication/200657172_Lean_Thinking_Banish_Waste_and_Create_Wealth_in_Your_Corporation . Erişim Tarihi: Mart 2025.
