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Design for Operational Excellence: A Breakthrough Strategy for Business Growth

Book Description

Design processes wisely.

Grow your business endlessly.

Design for Operational Excellence is a blueprint for a joined up, end-to-end designed operation that makes Operational Excellence a reality. The book excellently outlines the process of creating flow that every employee can see and, most importantly, fix without management intervention. Kevin Duggan’s emphasis on creating standard work for abnormal flow hits one of the biggest gaps in most continuous improvement initiatives. This book will change the way that you think about continuous improvement and the case studies will demonstrate that it works.”

−Philip Holt, Director, Customer Collaboration Online, Philips Consumer Lifestyle

“The approach outlined here can transform the phrase ‘leapfrog the competition’ from cliché to reality. Kevin’s approach is clear, the method sound, and the results achievable. Don’t just read this book: use it!”

−Jack McQuellon, Global Parts Manager, Caterpillar Paving Products

“In Design for Operational Excellence, Kevin Duggan provides a framework that focuses on the real endgame—levering operational excellence as a means of driving business growth. This book provides a comprehensive and systematic approach to designing and implementing value streams and supporting processes that will enable a business to assertively grow the top line as well as the bottom line.”

−Al Mason, Corporate Director, Altra Business System, Altra Industrial Motion

About the Book:

The ability to implement and maintain improvement initiatives like Lean and Six Sigma is essential for improving quality, eliminating waste, reducing costs, and increasing output—but it’s only the first step. Eventually, the improve-sustain-improve-sustain pattern itself becomes the end product. But it doesn’t have to be this way.

Why make operational improvement a perpetual process when you can make business growth a perpetual process?

In this trailblazing book, Kevin Duggan—author of Creating Mixed Model Value Streams and founder of the Institute for Operational Excellence and Duggan Associates—takes you beyond Lean and Six Sigma to achieve true Operational Excellence. By developing a “design for operational excellence” you can leverage the operations side of the business to enable continuous growth.

Design for Operational Excellence provides the design criteria and guidelines that enable you to grow your business organically by refocusing management’s attention from running the business to growing the business. Duggan takes you step by step through the new principles of Operational Excellence:

#1: Design Lean Value Streams

#2: Make Lean Value Streams Flow

#3: Make Flow Visual

#4: Create Standard Work for Flow

#5: Make Abnormal Flow Visual

#6: Create Standard Work for Abnormal Flow

#7: Have Employees in the Flow Improve the Flow

#8: Perform Offense Activities

Case studies illustrate how companies that applied Duggan’s methods grew consistently over time by designing and implementing a lean flow of product to the customer. The result was a flow that “self healed” when interruptions occurred, which removed the need to manage flow. These methods work in any business environment, not just manufacturing. Everything from insurance, financial, and banking organizations to hospitals, mining companies, universities, and even government can benefit from the bottom-line and topline business results Duggan’s methodology offers.

Design for Operational Excellence is the next great leap in the evolution of sustained business growth. Begin designing for growth now and stop reacting to customer needs. Instead, position your operation to provide customer solutions in changing markets, which will lead to profit and growth in even the most severe economic and market downturns.

Table of Contents

  1. Cover Page
  2. Design for Operational Excellence
  3. Copyright Page
  4. Contents
  5. Foreword
  6. Acknowledgments
  7. Introduction: The Return on Your Investment
  8. PART I: Destination: Creating Operational Excellence
    1. Chapter 1: The Engine of the Business
    2. Chapter 2: The Myth of Improvement
    3. Chapter 3: The Leapfrog
    4. Chapter 4: Defining Operational Excellence
    5. Chapter 5: Creating the Road Map to Operational Excellence
  9. PART II: Nine Tough Questions on Continuous Improvement
    1. Chapter 6: Preparing People to Jump
    2. Chapter 7: The First Question: Why Do We Do Continuous Improvement?
    3. Chapter 8: The Second Question: What Is the Best Way to Improve?
    4. Chapter 9: The Third Question: How Do We Know Where to Improve?
    5. Chapter 10: The Fourth Question: Why Do We Strive to Create Flow?
    6. Chapter 11: The Fifth Question: What Causes the Death of Flow?
    7. Chapter 12: The Sixth Question: What Would the Shop Floor Look Like if We Did Everything Right?
    8. Chapter 13: The Seventh Question: What Would the Office Look Like if We Did Everything Right?
    9. Chapter 14: The Eighth Question: What Would the Supply Chain Look Like if We Did Everything Right?
    10. Chapter 15: The Final Question: Where Will Our Continuous Improvement Journey Take Us?
  10. PART III: The Eight Principles of Operational Excellence
    1. Chapter 16: The New Operations "Engine Design" for Operational Excellence
    2. Chapter 17: The First Principle: Design Lean Value Streams
    3. Chapter 18: The Second Principle: Make Lean Value Streams Flow
    4. Chapter 19: The Third Principle: Make Flow Visual
    5. Chapter 20: The Fourth Principle: Create Standard Work for Flow
    6. Chapter 21: The Fifth Principle: Make Abnormal Flow Visual
    7. Chapter 22: The Sixth Principle: Create Standard Work for Abnormal Flow
    8. Chapter 23: The Seventh Principle: Have Employees in the Flow Improve the Flow
    9. Chapter 24: The Eighth Principle: Perform Offense Activities..
  11. PART IV: Extended Case Studies
    1. Introduction to Case Studies
    2. Chapter 25: Parker Hannifin Corporation
    3. Chapter 26: IDEX Corporation
    4. Chapter 27: Hypertherm
  12. Conclusion: Our Blueprint for Growth
  13. Notes
  14. Index