Beyond Six Sigma and Lean! Design your processes to facilitate real business growth, in both healthy and unhealthy economies Design for Operational Excellence defines why companies embark upon continuous improvement―and the true answer is not to improve efficiency, quality, or eliminate waste! The reason is to achieve Operational Excellence. Duggan, an established authority on OpEx, 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. Founded on eight key principles, this groundbreaking system facilitates the continuous flow of value into any operation―from customer service to sales to manufacturing. Kevin J. Duggan is a renowned speaker, executive mentor, and educator in applying advanced lean techniques to achieve Operational Excellence and the author of two books on the subject: Creating Mixed Model Value Streams and The Office That Grows Your Business―Achieving Operational Excellence in Your Business Processes . As the Founder of the Institute for Operational Excellence, the leading educational center on Operational Excellence, and Duggan Associates, an international training and advisory firm, Kevin has assisted many major corporations worldwide, including United Technologies Corporation, Caterpillar, Pratt & Whitney, Singapore Airlines, IDEX Corporation, GKN and Parker Hannifin. A recognized expert on Operational Excellence, Kevin is a frequent keynote speaker, master of ceremonies, and panelist at international conferences, and has appeared on CNN and the Fox Business Network. Kevin J. Duggan is the author of Creating Mixed Model Value Streams and the lead author of The Office That Grows Your Business: Achieving Operational Excellence in Your Business Processes . A sought after international speaker on Operational Excellence, Duggan has appeared on CNN Headline News and Fox Business Network as the expert in Lean Manufacturing. He lives in North Kingstown, RI. Kevin J. Duggan is the author of Creating Mixed Model Value Streams and the lead author of The Office That Grows Your Business: Achieving Operational Excellence in Your Business Processes . A sought after international speaker on Operational Excellence, Duggan has appeared on CNN Headline News and Fox Business Network as the expert in Lean Manufacturing. He lives in North Kingstown, RI. Design for Operational Excellence: A Breakthrough Strategy for Business Growth By Kevin J. Duggan The McGraw-Hill Companies, Inc. Copyright © 2012 Kevin J. Duggan All rights reserved. ISBN: 978-0-07-176824-5 Contents Foreword by Jeffrey K. LikerAcknowledgmentsIntroduction: The Return on Your InvestmentPART I: Destination: Creating Operational ExcellenceChapter 1: The Engine of the BusinessChapter 2: The Myth of ImprovementChapter 3: The LeapfrogChapter 4: Defining Operational ExcellenceChapter 5: Creating the Road Map to Operational ExcellencePART II: Nine Tough Questions on Continuous ImprovementChapter 6: Preparing People to JumpChapter 7: The First Question: Why Do We Do Continuous Improvement?Chapter 8: The Second Question: What Is the Best Way to Improve?Chapter 9: The Third Question: How Do We Know Where to Improve?Chapter 10: The Fourth Question: Why Do We Strive to Create Flow?Chapter 11: The Fifth Question: What Causes the Death of Flow?Chapter 12: The Sixth Question: What Would the Shop Floor Look Like if We Did Everything Right?Chapter 13: The Seventh Question: What Would the Office Look Like if We Did Everything Right?Chapter 14: The Eighth Question: What Would the Supply Chain Look Like if We Did Everything Right?Chapter 15: The Final Question: Where Will Our Continuous Improvement Journey Take Us?PART III: The Eight Principles of Operational ExcellenceChapter 16: The New Operations "Engine Design" for Operational ExcellenceChapter 17: The First Principle: Design Lean Value StreamsChapter 18: The Second Principle: Make Lean Value Streams FlowChapter 19: The Third Principle: Make Flow VisualChapter 20: The Fourth Principle: Create Standard Work for FlowChapter 21: The Fifth Principle: Make Abnormal Flow VisualChapter 22: The Sixth Principle: Create Standard Work for Abnormal FlowChapter 23: The Seventh Principle: Have Employees in the Flow Improve the FlowChapter 24: The Eighth Principle: Perform Offense ActivitiesPART IV: Extended Case StudiesIntroduction to Case StudiesChapter 25: Parker Hannifin CorporationChapter 26: IDEX CorporationChapter 27: HyperthermConclusion: Our Blueprint for GrowthNotesIndex Excerpt CHAPTER 1 The Engine of the Business In the early 1970s, there probably was a day in most people's lives when therewas an important event that they had to attend in the morning, let's say aninterview or a final exam. They were probably nervous about the event, havingstudied or prepared for it the entire night before. When they got up that day,they were apprehensive