Eilish Henry Head of Practitioner Services, The Manufacturing Institute

2

Today s economic realities are forcing manufacturers to improve quality, delivery, and cost simultaneously and at a more rapid pace than ever before.
UK USA

Competing Priorities of Quality, Cost & Delivery

Delivery

Quality

The Triple Bottom Line
Customers want more: ‡ People
- Ethical businesses where people are treated with respect

‡ Planet
- Environmental impact is recognised and scarce resources are carefully managed

‡ Profit
- How it is made and not just how much

THE ROOTS OF THE SHINGO PRIZE RECOGNIZING OPERATIONAL EXCELLENCE

MISSION
The mission of The Shingo Prize is to create excellence in organisations through the application of timeless, universal and self-evident principles of operational excellence, alignment of management systems and the wise application of improvement tools and techniques across the entire organisational enterprise.

VISION
Our vision is to be the Standard of Excellence for every organisation.

A World Standard in a Global Economy

1988 Honorary Doctorate, Utah State University January 8, 1909 November 14, 1990

PRINCIPLES OF OPERATIONAL EXCELLENCE THE SHINGO MODEL

GUIDING PRINCIPLES

SUPPORTING PRINCIPLES

THE VALUE OF HAVING RECOGNITION ROOTS« 1. DEFINE ³EXCELLENCE´ 2. BUILD ³SUSTAINABILITY´ 3. FOCUS ON ³TRANSFORMATION´ 4. TELL THE TRUTH

OPERATIONAL EXCELLENCE MUST BE BAKED INTO THE CULTURE

ORGANIZATION CULTURE IS«
´THE SUM OF ALL THE FORMS OF BEHAVIOUR, WHICH, OVER THE COURSE OF TIME, HAVE COME TO DEFINE THE WAY WORK GETS DONE IN AN ORGANIZATION«..WHOEVER INFLUENCES THE BEHAVIOUR, CONTROLS THE CULTURE.µ

LEADERS MUST BUILD CULTURE ON THINGS THAT LAST! ‡ ‡ ‡ ‡ Personality Programmes Tools Personal Values?

CHANGING A CULTURE REQUIRES: CHANGING ROLES AND RESPONSIBILITIES

COMMON FOCUS Senior LeadershipTHE
Here & Now Short-term Strategy Driving Performance

OPERATIONAL EXCELLENCE FOCU
T S

URGENT

PRINCIPLES

T

P

Managers

SYSTEMS & SYS. FAILURES TOOLS

SYSTEMS

S

P

Associates

TOOLS

Leaders Must Understand Reality

ONLY A CULTURE BUILT ON CORRECT PRINCIPLES IS SUSTAINABLE
Principles: Natural laws«impersonal, factual, objective and self-evident. (Timeless & Universal) (Covey) self-

Jon M. Huntsman Presidential Chair in Leadership«UTAH STATE UNIVERSITY

LEADERS MUST GO BEYOND DEFINING:

1. MISSION 2. VISION 3. VALUES«

Values: Social norms«.personal, emotional, subjective and arguable. (Covey)

LEADERS MANAGERS ASSOCIATES

? ? ?

TEAM WORK LOYALTY PRECISION INNOVATION
´They were your height, but thinner and better looking. You haven·t caught them yet, so obviously they·re smarter.µ

VALUES

TEAM WORK LOYALTY PRECISION INNOVATION
´They were your height, but thinner and better looking. You haven·t caught them yet, so obviously they·re smarter.µ

VALUES

TEAM WORK LOYALTY PRECISION INNOVATION

VALUES

PRINCIPLES
(RESPECT EVERY INDIVIDUAL)

Principles: Natural laws«impersonal, factual, objective and self-evident. (Timeless & selfUniversal) (Covey)

Ideal
LEADERS MANAGERS ASSOCIATES

SUSTAINABILITY REQUIRES PRINCIPLES BE EMBEDDED INTO« THE WAY WE THINK

Any Sailors?

Mission Vision

(Rudder)
Core Values Strategic Metrics (KPI)

(Keel) GUIDING PRINCIPLES

Think in terms of categorical principles.
Results Create Value for the Customer

Alignment

Create Constancy of Purpose Think Systemically Focus on Process Embrace Scientific Thinking Flow & Pull Value Assure Quality at the Source Seek Perfection Lead with Humility Respect every Individual

Process

People

³Know-how" alone isn't enough! You need to "Know-why"! All too often, people visit other plants only to copy their tools and methods.´
- Shigeo Shingo

How we THINK ² ³Know why´

PRINCIPLES

SYSTEMS

TOOLS

How we BUILD/RESULTS ² ³Know how´

3 NEW Paradigms Relationship between Principles, Systems and Tools Focus must be on BOTH Performance & Behaviour Systems Drive Behaviour

THINKING
Systems Drive Behaviour

The Power of Visual Systems
‡ I am going to show you a set of number = symbol combinations (for example 1 = ) ‡ I will give you a few seconds to view the combinations then right down as many as you can remember.

1= 2= 3= 4=

5= 6= 7= 8=

9=

The Value of a Systems Perspective
2nd Chance
± I am going to show you the combinations again in a slightly different arrangement and see if you can do better.

1 4 7

2 5 8

3 6 9

The Persistence of Systems
Arocdnicg to rsceearch at Cmabrigde Uinervtisy, it deosn t mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer are in the rghit pcale. The rset can be a toatl mses and you can sitll raed it wouthit pobelrm. Tihs is buseace the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe.

Think in terms of categorical principles.
Results Create Value for the Customer

Alignment

Create Constancy of Purpose Think Systemically Focus on Process Embrace Scientific Thinking Flow & Pull Value Assure Quality at the Source Seek Perfection Lead with Humility Respect every Individual

Process

People

´RESPECT EVERY INDIVIDUALµ

´LEAD WITH HUMILITYµ

´SEEK PERFECTIONµ

´ASSURE QUALITY AT THE SOURCEµ

´FLOW VALUE FOR CUSTOMERSµ

Leaders must develop a truly balanced scorecard - Results and Behaviours - Equal accountability for both

?
Results

Objective

Subjective

Actual Culture (Reality)
misaligned Behavior

GUIDING PRINCIPLES

ANCHORED VALUES

Ideal Behavior Ideal Behavior Ideal Behavior

Desired Culture

Systems
(Go & See)

misaligned Behavior
The Shingo Prize

Operational Excellence
DRIVEN DRIVEN Strategic Subjective Actual Performance (Reality)
misaligned Metric

BEHAVIOR

PERFORMANCE

Mission/ Vision

Objectives & Goals

Key Metric/s [Quality] Key Metric/s [Cost] Key Metric/s [Delivery] Key Metric/s [Morale]

Balanced Scorecard

Systems
(Go & See)

misaligned Metric

Learn How to Measure Culture ´Tell the Truthµ ‡ Go to the Gemba and learn to see (culture)
‡ Learn to ask the right questions ‡ Recognise ´Cause and Effectµ & teach others ‡ Annual assessment (Perhaps replace Attitude Surveys)

Without constant attention, the principles will fade. The principles have to be ingrained, it must be the way one thinks.

- Taiichi Ohno

There is no silver bullet! Rather the transformation journey requires consistent, committed leadership and a deep understanding of the principles of operational excellence.

www.shingoprize.co.uk www.shingoprize.org