1. From Operational Excellence to
Enterprise Excellence
Eilish Henry
Managing Consultant: The Manufacturing Institute
2. About The Manufacturing Institute
• Our role is to inspire, educate and improve organisations and their people
• We delivery high quality commercial services to fund our charitable
objectives
• Our charitable status makes us unique, we do not exist primarily to make
profit
Founded in 1994
4. Developed originally as a system to
recognise and thus promote Operational
Excellence in manufacturing companies in
the USA
The Shingo Prize
5. A World Standard in a Global Economy
Government
Aerospace
Automotive
Textiles
Service
Healthcare
Education
Shingo VisionShingo Vision
for OPERATIONAL EXCELLENCE
7. A World standard in a global economy
Thousands of Companies over 26 years Decades Of Learning & Research
Dr Eli Goldratt
The Goal
Its not luck
etc
W. Edward Deming
Out of the crisis
The Deming Management method
etc
Peter Drucker
The Landmarks of Tomorrow
People & Performance
etc
Dr Stephen Covey
The 7 Habits of Highly Effective People
The 8th habit
etc
Jim Collins
Good to Great
How the mighty fall
Jeffrey K Liker
The Toyota Way
James Womack & Dan Jones
Lean Thinking
The machine that changed the world
John Shook
Managing to learn: using A3
etc
Shigeo Shingo
SMED
Poka-Yoke
Minimum inventory
Etc
9. Why organisations choose Shingo as an OpEx Model:
• Only Global recognition standard
• Used to align group sites to a corporate standard
• Used to differentiate site against internal (group) competition
• Helps Group/site influence external customers
• Driver of competiveness and growth – reported by successful challengers
• A catalyst for organisational change – helps unite the organisation around shared
goals – ‘one team one plan’ and
• Provides a framework on which to structure the improvement journey
• Benchmarking and evaluating world class (manufacturing) performance
• The realisation that Tools & Systems alone are not enough
• The Right Focus for the Right Role
• Survival! > compelling reason to do things differently > creating a sense of
urgency
• Impact on the bottom line!
What have we learned?
11. Year Company Location
2014 Abbott Vascular, Clonmel, Co. Tipperary, Ireland
DePuy Synthes Ringaskiddy, Cork, Ireland
2012 Ethicon Inc (Johnson & Johnson) Juarez, Chihuahua, Mexico
Rexam Beverage Cans Aguas Claras, Rio Grande do
Sul/Viamao, Brazil
2011 Goodyear do Brasil Produtos de Borracha Ltda Sao Paulo, Brazil
US Synthetic Orem, Utah
2010 John Deere, Power Products Greeneville, Tennessee
Lycoming Engines Williamsport, Pennsylvania
2009 Autoliv Airbag Module Facility Ogden, Utah
E-Z-GO Augusta, Georgia
Guanajuato Manufacturing Complex North Plant Silao, Mexico
Interiores Aéreos S.A. De C.V. Gulfstream
Aerospace
Mexicali, Mexico
Shingo Prize Recipients (recent)
12. • Most organisations start their OpEx journey by
acquiring some Improvement Tools,
specifically in Operations/Production
• This is not bad or wrong – it is simply not
enough!
• Sustaining excellence over the long term
requires a focus on Principles and Principle-
based Behaviour across the whole Enterprise
What else have we learned?
13. “’Know-how’ alone isn't enough! You need to
‘Know-why’! All too often, people visit other
plants only to copy their tools and methods.”
How we THINK – ‘Know why’
How we BUILD – ‘Know how’
PRINCIPLES SYSTEMS TOOLS
SHIGEO SHINGO
1988 Honorary Doctorate,
Utah State University
January 8, 1909 – November 14, 1990
14. Levels 1-2:
Tools Focus
Usually limited to
Operations
Level 3: Systems Focus
Primarily Operations
Levels 4/5: Principle Focus
Enterprise-wide
.
Principles, Systems and Tools
15. How do organisations move from Tools
Focus to Principle Focus?
• Start with the end in mind! (Covey)
• If you start your journey by introducing Tools
then teach the Why as well as the How so that
your people understand the principle that
underpins the Tool and
• If you are currently at Level 3: Systems Focus,
then you need to recognise the additional
leadership challenges you must address in
order to continue to improve.
16. Our conclusion?
Designing and building Culture is
perhaps the most important Leadership
responsibility!
Leaders get the
culture they
deserve!
17. Develop
programs to
engage people in
behavioural
change
Identify
desired
behaviours
Define
culture shifts
required
Leadership
role model
behaviours
Align
systems and
processes to
culture
Determine
current
culture
Culture Change
(Behaviours)
Vision, Values, Strategy
Culture
Stay ahead of the culture by
creating the culture
18. “How do we do this and move from a
Tools to a Principles focus?”
Organisations who want to bring the
Shingo Model to life ask us:
21. Final thoughts:
• See Reality - learn from good practice,
wherever you find it
• Network – visit other sites & organisations &
invite others in
22. Discover the Principles of OpEx Workshops:
April 8/9 Linpac, St.Helen’s UK
April 29/30 Optos, Dunfermline Scotland
May 14/15 Volvo Trucks, Lyons France
June 4/5 Kellogg’s, Manchester UK
June 18/19 Entek, Newcastle N.E. England
July 16/17 Vector, Gosport UK
Sept 10/11 Post Denmark, Copenhagen
Sept-Oct 30/1 Jaguar LandRover, Halewood UK
23. Thank you
Eilish Henry
Managing Consultant
The Manufacturing Institute
eilishh@tpmi.co.uk
eilishh@shingoprize.co.uk
Tel: 0161 875 2513
Mob: 07870 407319
Mike Price
Managing Director
TMI Enterprises
Mike.Price@manufacturinginstitute.co.uk
Tel: 0161 875 2458
Mob: 07795 028269