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Operational

Excellence by Shingo
Model
A Brief History

 Dr. Shigeo Shingo was born in Saga City, Japan, was a Japanese
industrial engineer who is considered as the world’s leading expert on
manufacturing practices and the Toyota Production System.
 The Shingo Prize is given to companies around the globe that "achieve
world-class operational excellence status." It was established in 1988
and is named in honour of Shigeo Shingo. Dubbed the “Nobel Prize of
Manufacturing” by Business Week, the Shingo Prize is recognized as
the premier award for operational excellence.
The Principles of Shingo Model

 Shingo model of operational excellence is divided into Principles, Systems and


Tools. Shingo Institute did lot of research and found that sustaining operational
excellence requires five fundamental paradigm shift:
 Operational excellence requires a focus both on results and behaviors.
 Ideal behaviours in an organization are those that flow from the principles that
govern the desired outcomes.
 Principles construct the only foundation upon which a culture can be built if it is
to be sustained over the long-term.
 Creating ideal, principle-based behaviours requires alignment of the management
systems that have the greatest impact on how people behave.
 The tools of lean, TQM, JIT, Six Sigma, etc. are enablers and should be
strategically and cautiously inserted into appropriate systems to better drive ideal
behavior and excellent results.
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Shingo Principles

 Lead with Humility


 Respect for Individual
 Focus on Process
 Embrace Scientific Thinking
 Flow and Pull value
 Assure Quality at the source
 Seek Perfection
 Create Constancy of Purpose
 Think Systematically
 Create Value for the customer

4
The Shingo Model

 Principles of Operational  These four dimensions overlay


Excellence five core business systems:
product/service development,
 The principles are categorized customer relations, operations,
into four dimensions: supply and a variety of
 D-1: Cultural enablers, management or administrative
support systems.
 D-2: Continuous process
improvement,
 D-3: Enterprise alignment and
 D-4: Results – the ultimate end
of all business initiatives.
 These four
Shingo Diamond illustrating that Systems, Tool and results
must be supported by principles.

 Real change is only possible when timeless


principles of operational excellence are
understood and deeply embedded into
culture.
 The focus of leaders must change to
become more oriented toward driving
principles and culture while the manager’s
focus becomes more on designing and
aligning systems to drive ideal principle-
based behaviour.
 The Shingo model may be used as a
benchmark for what excellence at the
highest level should look like.
 It may be used to align all elements of an
organization around a common set of
guiding principles and a proven
methodology for transformation.

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