THE SHINGO MODEL
Leaders around the world have invested a substantial amount of time and money on initiatives that achieve positive results. However, it is hard to maintain and sustain momentum. Each new tool becomes another possible solution or “best practice” only to create confusion that often results in the “sugar high” – a temporary boost in results accompanied by a fleeting feeling of victory. People begin to believe that sustainable solutions are not only elusive, but that each new initiative eventually becomes “flavor-of-the-month” and leaves unfulfilled aspirations.
The Shingo Model™ is not an additional program or another initiative to implement; rather, it introduces Shingo Guiding Principles on which to anchor your current initiatives and to fill the gaps in your efforts towards ideal results and enterprise excellence.
Create Value for the customer
Create Consultancy of Purpose Think Systematically
Flow & Pull Value - Assure Quality at the Source. Focus on Process - Embrace Scientific Thinking Seek Perfection
Lead with Humanity. Respect Every Individual.
Our foundational, two-day workshop that introduces the Shingo Model™, the Guiding Principles and the Three Insights to Enterprise Excellence™. With real-time discussions and on-site learning at a host organization, this program is a highly interactive experience. It is designed to make your learning meaningful and immediately applicable as you learn how to release the latent potential in your organization and achieve enterprise excellence.
ENABLE builds upon the knowledge and experience gained at the DISCOVER EXCELLENCE workshop and takes you deeper into the Shingo Model™ by focusing on the principles identified as Cultural Enablers:
Cultural enablers make it possible for people within the organization to engage in the transformation journey, progress in their understanding and, ultimately, build a culture of enterprise excellence. Enterprise excellence cannot be achieved through top-down directives or piecemeal implementation of tools. It requires a widespread commitment throughout the organization to execute according to the principles of enterprise excellence.
Continuous improvement begins by clearly defining value through the eyes of customers. IMPROVE continues the discussion around ideal behaviors, fundamental beliefs and behavioral benchmarks as they relate to the principles of Continuous Improvement:
To succeed, organizations must develop management systems that align work and behaviors with principles and direction in ways that are simple, comprehensive, actionable and standardized. The work of a team is greater than the sum of its individual parts.
Creating value for customers is ultimately accomplished through the effective alignment of every value stream in an organization. ALIGN concludes the Shingo workshops diving into the principles of Enterprise Alignment:
The Build Excellence is the capstone course that takes all the detailed learnings from the previous four Shingo courses which develop the structure of the Shingo Model™ . This final course demonstrates the integrated execution of systems that drive behavior toward the ideal as informed by the principles in the Model. BUILD EXCELLENCE helps build a structured road map to execute a cultural transformation. It builds upon a foundation of principles, using tools that already exist within many organizations. It teaches the student how to build systems that drive behavior which will consistently deliver desired results.
Our practitioners have unrivaled experience in supporting manufacturers on their Enterprise Excellence journey. Typically we offer the following support:
Based on the Shingo model’s guiding principles, the Enterprise Excellence Framework has been developed by The Manufacturing Institute as a proven method to guide organisations through the complex process of achieving and sustaining world-class performance. The Framework drives excellence into every corner of the business. Crucially, it establishes a culture that ensures every individual is committed to strategic objectives, inspiring and motivating them to participate in the organisation’s transformation and subsequent long-term success.
The framework features a vertical and horizontal axis. The horizontal axis of operational alignment uses continuous improvement to drive incremental improvement across all the functions between supplier and customer. What sets the Framework apart, however, is the vertical axis, which drives true step change in the organisation. This defines vision, core purpose and strategy – boosting employee value creation through engagement, involvement and participation in the strategic direction of the business. The Framework brings the Shingo Model to life, turning the ‘why’ into ‘how’, which has been the missing piece of the jigsaw for many companies.
When the first engine rolls off the line at Jaguar Land Rover’s new plant in Wolverhampton in January 2015, this will mark a major milestone in a journey to world-class manufacturing.
Jaguar Land Rover built the Powertrain organisation to be operationally excellent from the ground up – driven by its implementation of the Enterprise Excellence Framework.
Jaguar Land Rover’s much-heralded new engine plant in Wolverhampton represents a key element of its enterprise transformation strategy, with the decision to manufacture engines in house for the first time in over 16 years. When Jaguar Land Rover manufacturing recruited former BAE Systems Director Nigel Blenkinsop to lead the transformation, he had a golden opportunity – to create a new organisation, with systems that would deliver operational excellence from day one, in both its infrastructure and its culture.
“There are plenty of organisations ready to talk to you about lean systems. But we wanted something sustainable, not just short-term practical change,” explains Blenkinsop. “That was the Shingo model and The Manufacturing Institute – not an automatic choice but, based on my BAE experience, an obvious one.
“The Shingo model has been developed over 20 years and there are lots of examples of that, particularly in the US,” he adds. “The Manufacturing Institute could give us access to that body of knowledge, and that was most attractive.”
Using the Shingo Model, The Manufacturing Institute has stretched the traditional boundaries of operational excellence to develop the Enterprise Excellence Framework, which is being applied fully at Jaguar Land Rover.
The process began with the newly-appointed leadership team, a group of five individuals with extensive experience. The Manufacturing Institute organised a one-week study tour to Shingo Prize- winning sites, the key objective: to establish a new leadership ethos, based on long-term direction, motivation and alignment, not short-term focus and fire-fighting.
The study tour, led by The Manufacturing Institute’s Managing Consultant Adam Buckley, revealed to the team that it was important how they led the business, not how they managed it, and enabled them to see and define that reality.
At this time Jaguar Land Rover had recruited many of its new senior managers so two more study tours were arranged: one to businesses in Northern Ireland and another to sites in North West England. Each tour took 15 managers to see the sites of four leading manufacturers in that region. Tours were structured to give the management team the same experience as the leadership team, wrapping many of the Shingo principles and operational excellence learning points into the site visits.
The Manufacturing Institute staged seven workshops, aligned to the ongoing recruitment programme, to spread the awareness of operational excellence further through the organisation. Some workshops took place within Jaguar Land Rover; others were held at external sites to increase the learning experience. Eighty employees in total were taken through the same process as the leadership and management teams. They were asked to define how they saw the organisation’s future, before being asked to review and assess the work done to date on this by the leaders and managers. This fitted perfectly with the ‘one vision, one team, one plan’ aim. A member of the leadership team attended every workshop, delivering an introduction and a conclusion to demonstrate leadership commitment and encourage engagement and involvement.
Strong importance is placed on leadership principles within the Enterprise Excellence Framework. “The first step a leader must take in leading culture is a personal journey,” Buckley says. “Without understanding what the principles mean personally, it becomes impossible to lead the development of a principle-based culture.”
The Manufacturing Institute provided personal and team guidance to help Jaguar Land Rover leadership recognise that the best companies and leaders operate with a strong sense of purpose and consistent set of principle-based values. A clear explanation of the Enterprise Excellence Framework, and how this approach would develop a culture and systems based upon the guiding principles, helped both the individuals and the team to understand the task ahead.
“What I’ve learned as a leader, from being at the vanguard of change and deployment of the Enterprise Excellence Framework, is the power of the mission, the vision and the goal,” states Blenkinsop.
Buckley adds: “People like working for leaders who have clear and consistent purpose. The leader’s job is to ignite the organisation’s vision within all employees and align every part of the organisation towards achieving that vision. Leadership is about behaviour, not personality. It is also something that happens between people – as such, it doesn’t depend on one person, but on how people act together.”
He continues: “It was important from the outset that the broader leadership and management teams were totally aligned, as this group are the role models for the rest of the organisation. There is significant personal commitment required to become a principle centred leader, first adopting and living by a set of guiding principles and shared values. The next challenge is to embed these principles across the organisation so that all employees adhere to these, resulting in ideal behaviour and an aligned culture. Having a deep sense of what is required of today’s leaders, both personally and collectively, created the commitment required to enable the Enterprise Excellence Framework to be brought to life.”
Guided by The Manufacturing Institute, Jaguar Land Rover’s leadership team began to develop a vision for the new Powertrain operation. Within mature organisations, this step would involve a cross-representative mix of the business, including those who will be champions and advocates of excellence within the organisation.
Buckley explains: “Many organisations set out a vision which is quantifiable and often link this to the customer. We firmly believe that a vision exists only for employees, not for customers, and so should be inspiring and create a vivid picture of the future. Powertrain developments come thick and fast, so JLR was keen to avoid explicit terms about engines as they are today. Instead, the leaders de ned a 10-30 year vision based on creating a legacy and being the benchmark for excellence, delivering this in a supportive learning environment with proud and passionate people. Its stated mission is ‘to power the freedom and fulfilment in people’s lives’.”
The team then de ned the values which would underpin that vision. The Manufacturing Institute encouraged them to align business values with personal values. Each of the leaders submitted their own values and these were developed into an agreed value set for the new Powertrain business: nurture, fun, integrity, respect, simplicity and tenacity. This was a special moment: the values, coincidentally, spelt ‘Nurture FIRST’ – precisely what was happening at Jaguar Land Rover.
The Manufacturing Institute worked with Jaguar Land Rover leaders, taking the Nurture FIRST values, aligning them to the ten guiding Shingo principles and defining behaviours for each. Buckley explains: “Success hinges on these values being ‘lived’ as part of everyday business life, not merely a statement published on a noticeboard. Jaguar Land Rover’s leaders agreed a set of behaviours – some generic, some specific – and shortlisted these to four, which were then published and are now worn by each of them on a lanyard as a visible leadership contract. By doing so, they commit to uphold these behavioural standards, and this is backed up by a process of challenge and recognition.”
Having de ned its core purpose with a mission, vision and goal, the next task for Jaguar Land Rover was to set strategic objectives that would drive it towards its vision. The Manufacturing Institute steered the team through this process, using a business model canvas, which focuses on key business segments, such as partners, resources, activities, customers, value propositions, etc.
Environmental and SWOT analysis was then performed on each segment: this detailed approach reveals unique strengths, challenges and opportunities which can deliver radical change to the overall business model.
The strategic themes cover a 3-5-year period and, again, unlike traditional methods, do not state quantifiable or measurable deliverables. For Jaguar Land Rover, six strategic objectives cover the four main areas of people, processes, customer and performance. The team has created a strategy map, a balanced scorecard and a set of enablers – the attributes that JLR has to shine at in order to deliver those objectives.
Most organisations deploy their policies by pushing targets and objectives down through the business at individuals. However, the Enterprise Excellence Framework uses a ‘catch ball’ technique, to ensure policy deployment is one of real participation, where people take ownership of the initiatives and results needed to deliver the strategy.
Using a structured Enterprise Excellence Framework x-matrix document, the Jaguar Land Rover team looked at each of its breakthrough strategic objectives, deciding which to focus on in the first year. It then agreed the projects and initiatives that would have to be in place to achieve those first annual objectives which, in turn, would ultimately deliver the 3-5-year strategic objectives and move it towards its stated vision.
A project charter was produced for every initiative, using a structured A3 approach. Initially, these draft A3 charters were discussed with the relevant teams to research and review.
Once agreed, they are signed by both the delivery team and the leadership team. It’s a two-way process that may take time but ensures a higher degree of success. Many businesses, for example, instruct a team to deliver a 5% improvement in OEE and this is rarely achieved.
Using the two-way ‘catch ball’ method, the team is asked how it might improve OEE and to what extent. Typically, they will suggest a higher rate of improvement and, crucially, will deliver it thanks to the sense of ownership that ‘catch ball’ engenders.
Once policy deployment was agreed, this created the need for a continuous improvement (CI) framework. Jaguar Land Rover had its projects, with resources, targets and outputs, so set about defining a CI structure to manage those. It has created performance metrics, visual management techniques and agreed daily, weekly and monthly management reviews.
“Without a structured CI platform, it is difficult to manage the programme of initiatives in a coherent way – and almost impossible to sustain or build upon the gains made,” explains Buckley. “The CI platform becomes the ‘pivotal point’ in the Enterprise Excellence Framework, where the vertical strategic alignment coincides with the horizontal operational alignment. In this way, the day-to-day operational challenges are managed effectively and do not become an ever- consuming distraction, freeing up employee energy to focus on the strategic step change and improvement activities.”
A common weakness and cause of failure for some businesses is to agree a strategy and then try to deliver that with the existing organisational structure and capability. The Enterprise Excellence Framework focuses on organisational design as a key driver for success. As a new-build, Jaguar Land Rover was able to structure the manufacturing business correctly from the outset, ensuring it has the required capability – people and processes – to deliver its objectives. For Jaguar Land Rover, the induction process has changed to demonstrate to individuals that their beliefs and values are as important as their skillset.
In contrast, by considering the extended enterprise, The Manufacturing Institute has helped Jaguar Land Rover to increase alignment across engineering, procurement and the new manufacturing operation, by identifying barriers and risks associated with the reliability of the end-to-end supply chain. In-depth work determined the core value proposition and how this could be delivered by aligning its structure, people and systems across previously silo-based organisations.
For established businesses, this process needs to be handled sensitively, since it may result in significant changes to individual roles, traditional reporting hierarchies and business functions.
Blenkinsop agrees: “JLR is a well-established organisation which has legacy manufacturing, systems at three other UK sites. I’ve realised already how far ahead of those we are, by planning our operation based on the Framework. It focuses as much on people, engagement and the behaviour of leaders as it does on processes and systems. For me, that’s been the game-changer: it has really differentiated us as a team.”
This hasn’t gone unnoticed elsewhere, as Blenkinsop says: “There has been real interest from the rest of the organisation.”
Clearly, the Enterprise Excellence Framework is already delivering results for Jaguar Land Rover – but no one should underestimate the commitment required to make it work, says Blenkinsop: “You have to recognise this is not something you bolt on to the side of an organisation and hope for the best. You have to be serious about making change happen, by immersing yourself in it and making it the way you drive, develop and improve your business. The Enterprise Excellence Framework is right at the heart of everything we do – the way we review our performance, the way we plan our business and the way we develop our people.”
“I’d have no hesitation in recommending The Manufacturing Institute to support any change management process. I rate their people very highly – they are credible and competent.
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