The Shingo Prize for Operational Excellence (The Shingo Model)

© Operational Excellence Consulting
THE
SHINGO
PRIZE
for OPERATIONAL
EXCELLENCE

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.

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

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

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

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

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)

“The Nobel Prize for
Manufacturing Excellence.”
Business Week

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

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

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)

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

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
ADMINISTRATIONSUPPLY
OPERATIONS CUSTOMER
RELATIONS
PRODUCT &
SERVICE
DEVELOPMENT

Who Can Apply for the Shingo Award?
 Applying entities may be from any industry including, but
not limited to:
• Services
• Manufacturing
• Healthcare
• Public sector

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

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

Dimension 1: Cultural Enablers
 Guiding Principles
• Lead with Humility
• Respect Every Individual
 Supporting Concepts
• Assure a safe environment
• Develop people
• Empower and involve everyone

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

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%)

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

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

Assessment & Feedback Process
Shingo
Readiness
Workshop
Achievement
Report
Submitted
Achievement
Report
Reviewed by
Examiners
Site Visit
Assessment
Report &
Feedback
Intent to
Apply
Submitted

The Shingo Award Recognition Levels
AWARD SCORE
The Shingo Prize 775 +
Silver Medallion 675 – 774
Bronze Medallion 575 – 674

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

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.

END OF PREVIEW
To download this presentation,
please visit:
www.oeconsulting.com.sg

The Shingo Prize for Operational Excellence (The Shingo Model)

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