beyond operation excellence - eilish henry, tmi - enterprise excellence
TRANSCRIPT
From Operational Excellence to Enterprise Excellence
Eilish Henry
Managing Consultant: The Manufacturing Institute
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
Developed originally as a system to
recognise and thus promote Operational Excellence in manufacturing companies in
the USA
The Shingo Prize
A World Standard in a Global Economy
Government
Aerospace
Automotive
Textiles
Service
Healthcare
Education
Shingo Vision
Shingo Vision
for OPERATIONAL EXCELLENCE
1988 Honorary Doctorate, Utah State University January 8, 1909 – November 14, 1990
Copyright © The Shingo Prize Administered by the Jon M. Huntsman School of Business at Utah State University
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
The Shingo Model
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?
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)
• 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?
“’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
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
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.
Our conclusion? Designing and building Culture is
perhaps the most important Leadership
responsibility!
Leaders get the culture they
deserve!
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
“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:
Answer:
The Enterprise
Excellence Framework
MANAGER Enterprise Excellence
LEADER Enterprise Excellence
CHAMPION Enterprise Excellence
MASTER Enterprise Excellence
EXPLORE Enterprise Excellence
DISCOVER Enterprise Excellence
‘Why’ ......... to the ........... ‘How’
Final thoughts:
• See Reality - learn from good practice, wherever you find it
• Network – visit other sites & organisations & invite others in
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
Thank you
Eilish Henry
Managing Consultant
The Manufacturing Institute
Tel: 0161 875 2513
Mob: 07870 407319
Mike Price
Managing Director
TMI Enterprises
Tel: 0161 875 2458
Mob: 07795 028269