The Shingo Prize for Operational Excellence

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Presentation Description

The Shingo Prize is the world’s highest standard for operational excellence. The prize recognizes organizations’ efforts to build cultures of operational excellence and continuous improvement. The prize is named after Shigeo Shingo, a Japanese industrial engineer who is widely recognized for his work in developing many of the revolutionary manufacturing practices that originated at Toyota. The Shingo Prize is based on the principles, systems and tools that deliver world class levels of excellence across an enterprise. The Shingo Model is useful for companies/organizations who have embarked on the lean journey. The model can be used to assess the level of lean maturity and identify strengths and opportunities for improvement. This training presentation can be used to brief employees to gain buy-in to the Shingo Model and prepare them for site visit assessments. LEARNING OBJECTIVES 1. Understand The Shingo Prize as a Model for Operational Excellence 2. Explain the Shingo Assessment Criteria for Operational Excellence 3. Define the Shingo Model Assessment and Scoring Guidelines 4. Gain an Overview of the Shingo Application Process ​ CONTENTS 1. Overview of the The Shingo Prize 2. Assessment Criteria 3. Assessment & Scoring System 4. Application Process 5. Shingo Award Winners To download the complete presentation, visit: http://www.oeconsulting.com.sg

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© Operational Excellence Consulting THE SHINGO PRIZE for OPERATIONAL EXCELLENCE

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2 © Operational Excellence Consulting 2 Learning Objectives By the end of the program you will be able to: 1.  Understand The Shingo Prize as a Model for Operational Excellence 2.  Explain the Shingo Assessment Criteria for Operational Excellence 3.  Define the Shingo Model Assessment and Scoring Guidelines 4.  Gain an Overview of the Shingo Application Process Copyrights of all the images used in this presentation are held by their respective owners.

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3 © Operational Excellence Consulting 3 Contents 1.  Overview of the The Shingo Prize 2.  Assessment Criteria 3.  Assessment Scoring System 4.  Application Process 5.  Shingo Award Winners NOTE: This is a PARTIAL PREVIEW. To download the complete presentation please visit: http://www.oeconsulting.com.sg

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© Operational Excellence Consulting “The Shingo Prize is the only award program in the world focused on lean manufacturing and elimination of “muda”.” Masaaki Imai

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5 © Operational Excellence Consulting 5 What is the Shingo Prize §  The Shingo Prize is the world’s highest standard for operational excellence §  The prize recognizes organizations’ efforts to build cultures of operational excellence and continuous improvement

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6 © Operational Excellence Consulting 6 Background of The Shingo Prize §  Established in 1988 and administered by the Jon M. Huntsman School of Business at Utah State University §  The prize is named after Shigeo Shingo a Japanese industrial engineer who is widely recognized for his work in developing many of the revolutionary manufacturing practices that originated at Toyota §  The Shingo Prize is based on the principles systems and tools that deliver world class levels of excellence across an enterprise

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7 © Operational Excellence Consulting 7 Who was Shigeo Shingo §  The Shingo Model is named in honor of the late Dr. Shigeo Shingo a Japanese industrial engineer and expert on the Toyota Production System §  Shingo had developed many improvement methods such as Single-Minute-Exchange-of- Die quick changeover Poka Yoke mistake proofing and non-stock production minimum inventory

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8 © Operational Excellence Consulting 8 “The Nobel Prize for Manufacturing Excellence.” Business Week

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© Operational Excellence Consulting Shingo Institute’s Mission: The Shingo Institute’s mission is to guide leaders in creating sustainable cultures of excellence based on principles. Shingo Institute’s Vision: The Shingo Institute’s vision is to be recognized as the global thought-leader in enterprise excellence. Promotion of Operational Excellence

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10 © Operational Excellence Consulting 10 The Shingo Model: Three Levels of Transformation Source: Shigeo Shingo PRINCIPLE-DRIVEN SYSTEM-DRIVEN TOOLS-DRIVEN Imbedding principles into culture Using specific methods to create point solutions Structuring tools into a system concept

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11 © Operational Excellence Consulting 11 The Shingo Model for Operational Excellence Source: Shingo Institute RESULTS SYSTEMS TOOLS INDIVIDUAL FOCUS ORGANIZATIONAL FOCUS Core Values Anchored to GUIDING PRINCIPLES Culture Behavioral Evidence

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12 © Operational Excellence Consulting 12 Shingo Guiding Principles Results Create Value For the Customer Continuous Improvement Flow Pull Value :: Assure Quality at the Source Focus on Process :: Embrace Scientific Thinking Seek Perfection Enterprise Alignment Create Constancy of Purpose Think Systematically Cultural Enablers Lead with Humility Respect Every Individual Source: Shingo Institute

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13 © Operational Excellence Consulting 13 Source: Shingo Institute The Shingo Principles of Operational Excellence Results Enterprise Alignment Continuous Process Improvement Cultural Enablers Create Value for the Customer Measure what Matters Align Behaviors with Performance Identify Cause Effect Relationships See Reality Focus on Long-term Align Systems Align Strategy Standardize Daily Management Stabilize Processes Relay on Facts Data Standardize Processes Insist on Direct Observation Focus on Value Stream Keep it Simple Visual Identify Eliminate Waste No Defects Passed Forward Integrate Improvement with Work Assure a Safe Environment Develop People Empower Involve Everyone Create Constancy of Purpose Think Systematically Focus on Process Embrace Scientific Thinking Flow Pull Value Assure Quality at the Source Seek Perfection Lead with Humility Respect Every Individual GUIDING PRINCIPLES SUPPORTING CONCEPTS ADMINISTRATION SUPPLY OPERATIONS CUSTOMER RELATIONS PRODUCT SERVICE DEVELOPMENT

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14 © Operational Excellence Consulting 14 Who Can Apply for the Shingo Award §  Applying entities may be from any industry including but not limited to: •  Services •  Manufacturing •  Healthcare •  Public sector

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15 © Operational Excellence Consulting 15 How is The Shingo Award Evaluated §  Shingo examiners focus on the degree to which the Shingo Guiding Principles of the Shingo Model are evident in the behavior of every employee §  Evaluation criteria include the establishment of a continuous improvement culture results achieved enterprise alignment and people development systems §  A Board of Examiners consisting of more than 250 lean practitioners who come primarily from Shingo Prize recipient companies carries out the evaluation process which includes a 2- to 3-day site visit

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16 © Operational Excellence Consulting 16 The Assessment Criteria Covers Four Dimensions of the Shingo Model Dimension Description Points 1 Cultural Enablers 250 2 Continuous Improvement 350 3 Enterprise Alignment 200 4 Results 200

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17 © Operational Excellence Consulting 17 Dimension 1: Cultural Enablers §  Guiding Principles •  Lead with Humility •  Respect Every Individual §  Supporting Concepts •  Assure a safe environment •  Develop people •  Empower and involve everyone

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18 © Operational Excellence Consulting 18 Dimension 1: Cultural Enablers §  Systems •  Individual development •  On-the-job training/training within industry OJT/TWI •  Coaching •  Standard daily management •  Leadership development •  Idea sharing •  Suggestion and involvement •  Reward and recognition •  Communication •  Environmental health and safety Education/training •  Community involvement •  Recruitment and succession planning •  Accountability

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19 © Operational Excellence Consulting 19 Scoring Matrix Senior Leadership Operations Support Managers Associates Managers Associates Cultural Enablers 250 pts. Cultural Enablers Weight 40 20 10 20 10 Continuous Process Improvement 350 pts. Continuous Process Improvement Weight 15 35 15 25 10 Enterprise Alignment 200 pts. Cultural Enablers Weight 50 20 5 20 5 Results 200 pts. Quality Measures 20 Cost/Productivity Measures 20 Delivery Measures 20 Customer Satisfaction Measures 20 Safety/Environment/Morale Measures 20 Source: Shingo Institute

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20 © Operational Excellence Consulting 20 Behavior Assessment Scale Lenses Level 1 0-20 Level 2 21-40 Level 3 41-60 Level 4 61-80 Level 5 81-100 Role Leaders are focused mostly on fire-fighting and largely absent from improvement efforts Leaders are aware of other’s initiatives to improve but largely uninvolved Leaders set direction for improvement and supports efforts of others Leaders are involved in improvement efforts and supports the alignment of principles of operational excellence with systems Leaders are focused on ensuring the principles of operational excellence are driven deeply into the culture and regularly assessed for improvement Managers are oriented toward getting results “at all costs” Managers mostly look to specialists to create improvement through project orientation Managers are involved in developing systems and helping others to use tools effectively Managers focus on driving behaviors through the design of systems Managers are primarily focused on continuously improving systems to drive behavior more closely aligned with principles of operational excellence Associates focus on doing their jobs and are largely treated like an expense Associates are occasionally asked to participate on an improvement team usually led by someone outside their natural work team Associates are trained and participate in improvement projects Associates are involved every day in using tools to drive continuous improvement in their own areas of responsibility Associates understand principles “the why” behind the tools and are leaders for improving not only their own work systems but also others within their value stream Source: Shingo Institute

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21 © Operational Excellence Consulting 21 Measures Assessment Scale Lenses Level 1 0-20 Level 2 21-40 Level 3 41-60 Level 4 61-80 Level 5 81-100 Stability Little to no evidence of stability Little to no predictability Beginning to implement Unpredictable 0-1 years Has begun to stabilize Initiating predictability Building maturity All levels have become comfortable with the measures 2-3 years Stable Predictable Long-term Mature 4+ years Trend/Level Level is low Trend is poor Little to no evidence of goals Little evidence to no evidence of benchmarking Moderate improvement in level Benchmarking is industry-focused Trends are mostly positive to at with some backsliding High level of attainment considered world- class Benchmarks constantly raise the bar and are a function of process not industry Positive trend with very few anomalies to explain Trend is well above expectations Source: Shingo Institute

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22 © Operational Excellence Consulting 22 Assessment Feedback Process Shingo Readiness Workshop Achievement Report Submitted Achievement Report Reviewed by Examiners Site Visit Assessment Report Feedback Intent to Apply Submitted

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23 © Operational Excellence Consulting 23 The Shingo Award Recognition Levels AWARD SCORE The Shingo Prize 775 + Silver Medallion 675 – 774 Bronze Medallion 575 – 674

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24 © Operational Excellence Consulting 24 Shingo Prize Recipients Year Company/Organization Country 2017 Ball Beverage Packaging Europe Naro Fominsk Ends Naro Fominsk Russia 2016 Boston Scientific Cork Cork Ireland Rexam Querétaro Querétaro Mexico 2015 Abbott Diagnostics Longford Longford Ireland Envases Universales Rexam de Centroamerica S.A. Amatitlan Guatemala 2014 NewsUK - Newsprinters Ltd Holytown Motherwell UK Barnes Aerospace OEM Strategic Business Ogden Utah DePuy Synthes Ireland Cork Ireland Abbott Vascular Clonmel Tipperary Ireland 2012 Ethicon Inc. Juarez Chihuahua Mexico Rexam Beverage Can Águas Claras Cans Águas Claras Rio Grande do Sul/ Viamão Brazil Source: Shingo Institute

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25 © Operational Excellence Consulting 25 About Operational Excellence Consulting §  Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. §  One of our unique strengths is going beyond a tools-focused approach to seamlessly integrate people processes technology and continuous improvement initiatives to suit the specific needs and situations of our clients. §  We provide corporate learning programs and management advisory services to assist our clients to achieve breakthrough in business performance and effectiveness. Our aim is to support our clients in designing managing and executing lasting beneficial change.

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© Operational Excellence Consulting END OF PREVIEW To download this presentation please visit: www.oeconsulting.com.sg

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