Beyond Operation Excellence - Eilish Henry, TMI - Enterprise excellence


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Beyond Operation Excellence - Eilish Henry, TMI - Enterprise excellence

  1. 1. From Operational Excellence to Enterprise Excellence Eilish Henry Managing Consultant: The Manufacturing Institute
  2. 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
  3. 3. Clients in Multiple Sectors
  4. 4. Developed originally as a system to recognise and thus promote Operational Excellence in manufacturing companies in the USA The Shingo Prize
  5. 5. A World Standard in a Global Economy Government Aerospace Automotive Textiles Service Healthcare Education Shingo VisionShingo Vision for OPERATIONAL EXCELLENCE
  6. 6. 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
  7. 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
  8. 8. The Shingo Model
  9. 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?
  10. 10. Who has chosen Shingo?
  11. 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. 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. 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. 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. 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. 16. Our conclusion? Designing and building Culture is perhaps the most important Leadership responsibility! Leaders get the culture they deserve!
  17. 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. 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:
  19. 19. Answer: The Enterprise Excellence Framework
  20. 20. MANAGER Enterprise Excellence LEADER Enterprise Excellence CHAMPION Enterprise Excellence MASTER Enterprise Excellence EXPLORE Enterprise Excellence DISCOVER Enterprise Excellence ‘Why’ ......... to the ........... ‘How’
  21. 21. Final thoughts: • See Reality - learn from good practice, wherever you find it • Network – visit other sites & organisations & invite others in
  22. 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. 23. 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