1. VALUE OF OPERATIONAL EXCELLENCE
2/3/2017 1
Danaher stock significantly outperforming:
• General Electric
• Berkshire Hathaway
• Dow Jones
• Even Microsoft
Cooper Industries prior to Danaher
attempted acquisition, underperforming
to Dow Jones
Cooper tracking to Danaher since
Operational
excellence
can create
as much
value as
innovation,
and more
steadily.
2. OPERATIONAL EXCELLENCE – TWO KEYS
5
24 month Demand,
Supply, & Inventory
plans
Management
Business Review
Demand
Review
Supply
Review
Product
Review
Finance IR
Review
Start
(Begin Month)
MRP
• Executive led
• One plan aligned
with financials
Doing the Routine Routinely
Sales & Operations Planning
2/3/2017 2
Modern operational excellence is 75% lean and 25% S&OP in terms
of effort/focus, but S&OP comes first because it sets the direction
3. GRAPHICAL REPRESENTATION
2/3/2017 3
• Fully comprehensive monthly Integrated
Business Planning (including cash)
• Plans shared every month with suppliers
• Enables
• Kanban and consignment
• Focusing on eliminating waste