a world standard...

for a global economy

Model &
Application
GUIDELINES
Dear Shingo Associates,

Thank you for taking time to study our model for operational excellence and considering the
benefits of using the model within your organization. Many of our associates have indicated that
the model and assessment can assist in better understanding where you are on your journey
toward operational excellence and how to accelerate your efforts. We sincerely hope that this
document will enable you to become more keenly aware of not only your strengths, but also your
greatest opportunities for improvement.

If your intentions are to eventually challenge for The Shingo Prize, this booklet will introduce you
to the process of applying and preparing your achievement report. You will learn how our exam-
iners, your peers from other companies, will evaluate, score and provide feedback to your facility.

This booklet is different from past issues. Based on our decades of experience in searching for,
evaluating and recognizing some of the world’s very best companies, we have come to understand
how truly difficult it is for even the best to create sustainable transformation and build lasting
cultures of operational excellence.

In the past, our search for great companies focused primarily on determining “the degree to

Model &
which” the organization had successfully deployed the tools and techniques often associated with
most of the business improvement programs conceived over the past few decades. Based on our
long-term association with these companies and thought-leaders, we have come to understand
that the focus on tools and techniques must be led by a thorough understanding of key concepts –
or guiding principles around which the tools have been developed. Those guiding principles
become the bedrock of a corporate mind-set and the foundation for the design of systems that
reinforce these principles in every action of every associate.
Application
This relationship between guiding principles, management systems and improvement tools is the
basis for The Shingo Prize model and our approach to organizational assessment. We invite all to
review and engage in critical dialogue with your peers around the ideas presented here. Then
GUIDELINES
contact us at www.shingoprize.org and we will be eager to share with you more of the details
behind the model and assessment methodology.

Robert D. Miller
Executive Director
The Shingo Prize for Operational Excellence
Jon M. Huntsman School of Business THE SHINGO PRIZE FOR OPERATIONAL EXCELLENCE
JON M. HUNTSMAN SCHOOL OF BUSINESS
UTAH STATE UNIVERSITY
LOGAN, UTAH USA
WWW.SHINGOPRIZE.ORG

VERSION 7 — MAY 2012

COPY RIGHT © 2012 THE SHINGO PRIZE FOR OPERATIONAL EXCELLENCE. ALL RIGHTS RESERVED
 Shingo Mission Board of Governors
Paul A. Brent Bruce E. Hamilton Mike Martyn David Rowlands
Retired General Director President Principal CEO
Global Supply Mgt. Greater Boston SISU Consulting Group Gold Pride Pass
The mission of The Shingo Prize is to create excellence Restructuring Manufacturing
John E. Marushin Richard J. Schonberger
Delphi Partnership, Inc.
in organizations through the application of timeless, Chief Operating Oicer President
Jerry Bussell Thomas G. Hartman Clear Path Solutions Schonberger & Associates,
universal, and self-evident principles of operational Executive Advisor President & Managing Inc.
Robert D. Miller
Underwriters Laboratories Director
Executive Director John Shook
excellence; alignment of management systems; and the Knowledge Services AutoLiv do Brasil Ltda
he Shingo Prize for President & CEO
Arthur P. Byrne Jack Helmboldt Operational Excellence Lean Enterprise Institute
wise application of improvement techniques across the Operating Partner Senior Vice President
R. David Nelson Kenneth Snyder
J.W. Childs Associates Denso Manufacturing
Chairman Executive Dean & Chief
entire organizational enterprise. Douglas F. Carlberg
Tennessee, Inc.
Quality Analytics Administrative Oicer
President & CEO Luis Izquierdo Jon M. Huntsman School
Rusty Patterson
M2 Global Technology, Vice President, Corporate of Business, Utah State
Chairman & CEO
Ltd. Operations University
NCFAM
Raytheon Company
Gary Convis Carl G. Thor
Dennis K. Pawley
COO Michael Joyce President
President & CEO
Bloom Energy Senior Vice President, Jarretthor International
Pawley Enterprises
Corporation Operations and Program
John J. Van Gels
Managment Gary Peterson
Shingo Vision Carolyn Corvi
Vice President, General
Manager, Airplanes
Lockheed Martin
Bill Kessler
Executive Vice President–
Supply Chain
Vice President Operations
& Supplier Management
he Boeing Company
O.C. Tanner Company
Programs Professor & Director of
Alejandro von Rossum Sr.
The Boeing Company Executive Programs Clifford F. Ransom II Chief Executive Oicer,
Georgia Tech Tennenbaum President
Timothy A. Costello Chemical Division
Institute Ransom Research, Inc.
Chairman & Chief Cydsa Corporation S.A.
Our vision is to be the Standard of Executive Oicer George J. Koenigsaecker Peter N. Riley de C.V.
Builder Homesite, Inc. President EVP Integrated Operations
Excellence for every organization. Lean Investments, LLC Bell Helicopter Textron
Helen Zak
Michael N. DaPrile President & COO
Inc.
Executive Vice President Julie Madigan hedaCare Center for
SW Manufacturing, Inc. Chief Executive Don Ronchi Healthcare Value
he Manufacturing Chief Human Resource
Institute Oicer
Ceberus Operational and
Advisory Company, LLC

Acknowledgements
We wish to thank various people at he Shingo Prize for Operational Excellence and he Jon M. Hunstman
School of Business who made up the team that provided scholarly work, ideas that signiicantly enhanced
the clarity of the model and guidelines, and content editing. hose most closely involved with the project
include: Randall Cook, Robert Miller, Jacob Raymer, and Shaun Barker. A special thanks to Brian Atwater
for his contribution regarding systemic thinking, especially the idea to create a systemic process model.
We would also like to thank the members of our Board of Governors who provided practical insights and
critical feedback through the years as the Shingo model evolved. Finally, each time we teach a course we
receive valued input and ideas from our Shingo ailiates, whose expertise and friendship we truly value.

4 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 5
 THE SHINGO MODEL FOR OPERATIONAL EXCELLENCE
Shingo Academy 8 The House - The Shingo Principles of Operational Excellence
9 The Diamond - The Shingo Transformational Process
12 Dimension 1: Cultural Enablers
James F. Albaugh Mark DeLuzio Hank Lenox Harold M. Simons
Executive Vice President President Director, Ford Production SystemFord Executive Vice President,
12 Principle - Respect Every Individual
The Boeing Company Lean Horizons Consulting, LLC Motor Company Manufacturing 13 Principle - Lead with Humility
O.C. Tanner Company
Joji Arai Frank J. Ewasyshyn David J. Logozzo 14 Table One - Examples of Ideal Behavior for Cultural Enablers
Secretary General International Executive Vice President - President, LE Partners Art Smalley
Productivity Service Manufacturing Lean Enterprise Institute President 16 Dimension 2: Continuous Process Improvement
Chrysler Group Art of Lean, Inc. 16 Principle - Focus on Process
Stan A. Askren Jack Michaels
Chairman, President & CEO Orest J. Fiume Chairman, President & CEO Mohsen Sohi 17 Principle - Embrace Scientific Thinking
HNI Corporation Former Vice President, Finance he Snap-On Incorporated President & Chief Executive
Wiremold Company Oicer 17 Principle - Flow and Pull Value
J. T. Battenberg R. David Nelson Freudenberg-NOK General
Chairman & Chief Louise L. Francesconi Chairman Partnership
17 Principle - Assure Quality at the Source
Executive Oicer President Quality Analytics Inc.
Delphi Corporation Raytheon Missile Systems James L. Solberg
17 Principle - Seek Perfection
Rodney O’Neal
Warren Batts Eliyahu M. Goldratt President & Chief Operating Oicer
Executive Director, Manufacturing, 18 Table Two - Examples of Ideal Behavior for Continuous Process Improvement
North American Powertrain’s
Chairman NAM Founder Goldratt Institute Delphi Corporation 22 Dimension 3: Enterprise Alignment
Operations
Tupperware Corporation
Benjamin S. Griin Paul O’Neill Ford Motor Company 22 Principle - Create Constancy of Purpose
Norman Bodek Commanding General, Retired US Former Secretary, US Treasury Anne Stevens 23 Principle - Think Systemically
Former President Army Materiel Command Former Chairman and CEO, Alcoa, Chairman, President & CEO
Productivity, Inc. Inc. 23 Systemic Thinking Chart
Andrew M. Guarriello Carpenter Technology Corporation
Guy D. Briggs Former Vice President & CEO Hajime Ohba 25 Table Three – Examples of Ideal Behavior for Enterprise Alignment
Carl G. hor
Vice President, General Motors AT&T Microelectronics’ Power President, TSSC, Inc. President
General Manager, GM North America Systems Toyota Suppler Support Center Jarretthor International 28 Dimension 4: Results
Vehicle Manufacturing
Bruce Hamilton James J. Padilla John S. Toussaint 28 Principle - Create Value for the Customer
Giford M. Brown President Chief Operating Oicer CEO 29 Table Four - Examples of Ideal Behavior for Results
Plant Manager Greater Boston Manufacturing Ford Motor Company hedaCare Center for Healthcare
Cleveland Engine Plants, Ford Motor Partnership, Inc.
Company Dennis K. Pawley Value 30 Scope of Transformation
homas G. Hartman President & CEO
Vernon M. Buehler President & Managing Director Pawley Enterprises
Robert H. Transon 30 Business & Management Systems
Group Vice President Manufacturing -
Professor Emeritus AutoLiv do Brasil Ltda 32 Summary
Cliford F. Ransom II Executive Oice
Utah State University
Masaaki Imai President Ford Motor Company 34 The Shingo Model
Jerry Bussell Chairman Ransom Research, Inc. Nickolas Vande Steeg
Executive Advisor KAIZEN Institute of Japan
UL Knowledge Services Ross E. Robson President & COO ASSESSMENT GUIDELINES
Jerry J. Jasinowski President & CEO Parker Hanniin Corporation
Arthur P. Byrne President DnR Lean LLC Alejandro von Rossum, Sr.
38 Assessment Criteria
Operating Partner National Association of Manufacturers
J.W. Childs Associates Donald L. Runkle CEO-Chemical Division 39 Dimension 1 - Cultural Enablers
Brian S. Jones Former Vice Chairman, Enterprise Cydsa Corporativo S.A. de C.V.
Timothy A. Costello President & CEO Technologies
40 Dimension 2 - Continuous Process Improvement
Michael J. Ward
Chairman & Chief Nypro, Inc. Delphi Corporation President 42 Dimension 3 - Enterprise Alignment
Executive Oicer
Builder Homesite, Inc. Daniel T. Jones Russell Scafede Autoliv Americas 43 Dimension 4 - Results
Founder & Chairman Owner Lean Manufacturing Systems Donald J. Wetekam 46 Assessment and Scoring
Stephen R. Covey Lean Enterprise Academy Group, LLC President
Co-founder/Co-chairman 46 Assessment Areas
Michael Joyce Richard J. Schonberger Aircrat Services AAR Corporation
Franklin/Covey Company
Senior Vice President, Operations and President 49 Behavior - Assessment Scale
David Wohleen
H. Lawrence Culp, Jr. Program ManagementLockheed Schonberger & Associates, Inc. President, Electrical, Electronics,
President & CEO Martin Safety & Interior Sector
50 Results - Assessment Scale
Anand Sharma
Danaher Corporation
James H. Keyes President & CEO Delphi Corporation
Michael N. DaPrile Chairman & CEO TBM Consulting Group APPLICATION GUIDELINES
James Womack
Executive Vice President Johnson Controls Inc.
SW Manufacturing, Inc. Ritsuo Shingo Founder & President 52 Application Process
George J. Koenigsaecker Former President Lean Enterprise Institute
Joseph C. Day President Toyota China and Hino Motors China 58 Writing the Achievement Report
CEO & President Lean Investments, LLC 59 Introduction
John Shook
Freudenberg, NOK
Peters Lawson President & CEO 59 Achievement Report Format
Earnest W. Deavenport, Jr. Vice President, Manufacturing Lean Enterprise Institute
Former Chairman Ford Motor Company of Australia 60 Dimension 1 - Cultural Enablers
Eastman Chemical
60 Dimension 2 - Continuous Process Improvement
60 Dimension 3 - Enterprise Alignment
60 Dimension 4 - Results

6 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 7
 inarguable because it is self-evident. Dr. For organizations to be successful
Covey teaches that values govern our actions over the long term, leaders must
and principles govern the consequence of our
deeply and personally understand

MODEL
actions.
the principles that govern their
Values are cultural, personal, interpretable, and success. Further, they must ensure
variable. Our personal values inluence how
we see the world and ultimately our choices for the behaviors of every person who
Principles of Operational Excellence
THE SHINGO he search for improvement is instinctive. For
businesses and indeed any organization to
how to behave. Principles govern the outcomes
of our choices. In other words, the values of an
contributes to the business are in
harmony with these principles. In
unprincipled person will very likely lead to
MODEL FOR be successful in the long term, they must be
engaged in a relentless quest to make things
better. Failure to make this an organizational
behaviors that have negative consequences. short, the organizational culture
they build must be grounded in
Principles govern everything that happens
OPERATIONAL priority will inevitably result in organizational
decline. Excellence must be the pursuit of all in the natural world. Scientists the world-
over continually search to understand more
correct principles.
great leaders. In fact, the passionate pursuit of
EXCELLENCE perfection, even knowing it is fundamentally
impossible to achieve, brings out the very best
of the principles that govern the universe.
They do not invent them; they only discover
their existence and seek to do good by taking
lasting improvement. Quality Circles, Just-in-
Time, Total Quality Management, Business
in every human being. Process Re-engineering, Six Sigma, and most
purposeful action based on knowledge of the
guiding principle. Principles govern the laws recently, Lean are a few illustrations of well-
Why So Many Fail of science; they determine the consequences intentioned initiatives that have far under-
Improvement is hard work! It requires great delivered on their promised beneits. Our study
of human relationships, and ultimately,
leaders, smart managers, and empowered of these programs over the last 25 years has led
principles inluence the successful outcome of
people. Improvement cannot be delegated us to believe that the problem has nothing to
every business endeavor.
down, organized into a program, or trained into do with the concepts and everything to do with
the people. Improvement requires more than the programmatic, tool-oriented deployment
the application of a new tool set or the power Principles Predict Performance of them.
of a charismatic personality. Improvement One of the most powerful aspects of principles
requires the transformation of a culture to one is their ability to predict outcomes. Principles he Shingo model for operational excellence
where every single person is engaged every day, govern the outcome or consequence of the is based on a systematic study of each of
in most oten small, but from time to time, large behavioral choices we each make. The closer these improvement initiatives. Our approach
change. our actual behavior aligns with the ideal bi-passes the tools that each program has
behavior that is linked to the principle, the engendered and focuses rather on the
In reality, every organization is naturally in greater the likelihood that the outcomes of underlying/guiding principles and supporting
some state of transformation. he critical our behavior will be positive. This is profound key concepts behind them. We recognize the
question is, to what end is the organization given that very few things in any business can necessity of good improvement tools but focus
being transformed and who are the architects be predicted with a high degree of certainty. on them only within the context of enabling
of the transformation? he Shingo model of A culture where every employee understands a system to better drive ideal, principle-based
operational excellence asserts that successful and is committed to principle-based behavior behaviors. he Shingo “House” provides a
organizational transformation occurs when will be a culture with a very high likelihood of summary and categorization of this collection
leaders understand and take personal achieving great business results. of guiding principles and supporting concepts.
responsibility for architecting a deep and
abiding culture of continuous improvement. Similarly, a corporation not grounded in When taken in their totality, these timeless
his is not something that can be delegated principles, will result in a wide variety of principles become the basis for building a
to others. As the CEO of a very successful personal interpretations of how to apply their lasting culture of excellence in the execution
organization recently said, “Leaders lead values in work situations. of one’s mission statement. We call this
culture!” relationship between business results and
Why Operational Excellence? principle-based behavior, “operational
A Culture Built on Correct Principles For decades we have watched, and all too excellence.” Operational excellence cannot be
Stephen R. Covey describes principles as often experienced, the disappointing eforts a program, another new set of tools, or a new
fundamental truths. He deines a principle as of programmatic improvement initiatives, management fad. Operational excellence is the
a natural law that is universally understood, leaving in their wake a trail of unintended consequence of an enterprise-wide practice of
timeless in its meaning and fundamentally negative consequences rarely resulting in ideal behaviors, based on correct principles.

8 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 9
 As long as improvement is seen as something each category are also listed many important The dimensions are the result of “thinking some kind of order. Finally, they create tools
outside the core work of the business, as supporting concepts. categorically about the principles.” It is clear to better enable the systems to accomplish the
long as it is viewed as “something else to do,” that all four dimensions of the model require purpose for which they were created.

MODEL
operational excellence will remain elusive. he principles are categorized into four focus in order to achieve excellence. In the
dimensions: cultural enablers, continuous same way that we need to comprehend objects Learning and Teaching the Principles
When leaders anchor the corporate mission, process improvement, enterprise alignment, in three dimensions to truly appreciate all of he irst step a leader must take in leading
vision, and values to principles of operational and results – the ultimate end of all business their characteristics, operational excellence cultural transformation is a personal journey
excellence and help associates to connect and initiatives. hese four dimensions overlay must be viewed in these four dimensions to understand what each of these guiding
anchor their own values to the same principles, ive core business systems: product/service in order to fully appreciate the power of the principles mean conceptually and then what
they enable a shift in the way people think and development, customer relations, operations, principles to afect business outcomes. they mean personally. It is impossible for a
behave. Changing the collective behavior of the supply and a variety of management or leader to lead the development of a principle-
group changes the culture. This is leadership administrative support systems. Transforming a Culture based culture until he or she has gone through
responsibility that cannot be delegated. (Shingo Transformation Process) the deep relection required to begin a
Guiding Principles Many organizations and their leaders are personal transformation. his is no trivial
Principles of Operational Excellence he Shingo Prize for Operational Excellence coming to understand that sustainability task. For many and perhaps most, fully
(The Shingo House) did not create the 10 guiding principles of requires focusing on the culture; that’s the embracing these principles requires
In his book Key Strategies for Plant Improvement, operational excellence but rather they have easy part. he diicult part is in knowing a fundamental re-thinking of the
Shigeo Shingo said, “Think in terms of always existed. In truth, there is ample evidence how to really afect a change. rules of engagement used to
categorical principles.” The Shingo House that these principles have been well understood, get to where they are.
is a categorization of the guiding principles more or less, at diferent time for thousands of he Shingo transformation
of operational excellence. Associated with years. As the world has gone through cycles process is a methodology for At a minimum,
of advancement and decline, it seems these accelerating a personal leaders must be
principles are routinely lost and forgotten and and enterprise-wide curious enough
must be re-discovered. Emerging from the transformation to experiment
dark ages into a period of enlightenment and to a culture of with the
industrialization, the impact of these principles operational
are only now beginning to be understood excellence.
again. he process
Measure what Matters
is based
Align Behaviors with Performance Certainly, and even surprisingly, on the
Create Value for the Customer Results Identify Cause & Effect Relationships
business schools do not emphasize teaching
these principles even though they of Dr.
Create Constancy of Purpose
Think Systemically
Enterprise Alignment See Reality
Focus on Long-term
are the driver for business execution Shigeo Shingo
Align Systems excellence. he cause for this may be that these who recognized
Align Strategy
Standardized Daily Managment fundamental business principles have been that business principle.
lost in management fads and tool boxes that improvement came John Shook
SUPPLY MANAGEMENT become programs or “lavors of the month.” through understanding at the Lean
the relationship between Enterprise Institute
CUSTOMER
OPERATIONS
RELATIONS he Shingo Prize for Operational Excellence principles, systems, and tools. taught us that it is
PRODUCT
& SERVICE
has made a diligent search of thought leaders oten impossible to
DEVELOPMENT Stabilize Processes over the last 100 years. heir work has been Dr. Shingo understood that “think our way into a new
Rely Facts & Data
Standardize Processes carefully analyzed and dissected and the operational excellence is not achieved way of acting.” Rather, guided
Insist on Direct Observation
Focus on Value Stream
unique concepts or principles from each by supericial imitation or the isolated by correct principles, one may
Focus on Process Continuous Process have been extracted. Compiling, distilling, do, observe, learn, and then do
Embrace Scientific Thinking
Improvement
Keep it Simple & Visual
Identify and Eliminate Waste
and random use of tools and techniques
Flow & Pull Value
Assure Quality at the Source No Defects Passed Forward and prioritizing the list led to the 10 guiding (“know how’”). Instead, achieving operational something else until we “act our way
Seek Perfection Integrate Improvement with Work principles on the let side of the house and the excellence requires people to “know why” — into a new way of thinking.” By carefully
supporting concepts for each dimension i.e., an understanding of underlying principles. analyzing the cause-and-efect relationship
Assure a Safe Environment
Lead with Humility
Respect Every Individual
Cultural Enablers Develop People on the right side. Supporting concepts between principles and results, a leader will
Empower & Involve Everyone
are critical to pay attention to but In the 1940s, the work of French social begin to shit their own beliefs about what
may not stand up to the rigor of being scientist, Piaget, led us to understand that drives optimal business performance. Ater
™ The Shingo Prize
universal, timeless, and self-evident like learning occurs when people come to gaining this new insight it becomes the efective
GUIDING PRINCIPLES SUPPORTING CONCEPTS the principles. deeply understand the meaning behind the leader’s primary responsibility to see that others
methodology. People naturally search irst in his/her organization have experiences where
for meaning, the principle, and then attempt they can gain the same insight.
to organize them somehow into a system, or
10 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 11
 Leaders who choose to disregard the principles he Shingo transformation process illustrates Experiment with the Principle
that govern business outcomes do so at great the critical need to align every business, One of the principles of operational excellence
peril. Whether we acknowledge them or not, management, and work system of the is scientiic thinking, which is intended

MODEL
the principles of operational excellence always organization with the principles of operational to foster a culture of experimentation and
govern the consequence of our leadership and excellence. When systems are properly aligned deep learning. People must be able to put
management behaviors. An example may help. with principles, they strategically inluence to the test each of the principles espoused
people’s behavior toward the ideal. by the principle-based leader. Only when
If we encourage, enable, or simply allow a people see for themselves the cause-and-
culture to emerge where employees are thought Dr. Shingo also taught that the primary efect relationship of results relative to the
of merely as an unfortunate cost burden or that principle, will they come to deeply understand
the smartest people are those that rise to the role of managers must shift from fire- the value of the principle to them personally.
top, the consequence will be a workforce that fighting to designing, aligning, and Repetition through many cycles of learning in
is not fully engaged, ideas for improvement improving systems. the experiment gives people a personal insight
are never articulated and acted on, people feel about the principle and empowers them to
unfulilled in their work, and turnover is very make personal judgments about its validity.
The Enabling Role of Improvement Tools
high. Labor costs become excessively high,
A tool is nothing more than a point solution or
business systems stagnate, and innovation
a speciic means to a speciic end. Dr. Shingo
is not fast enough to compete in a rapidly
referred to tools as techniques for problem-
changing business climate. Unwise leaders see
solving, necessary but not suicient. He taught
this as a validation of what they believed rather
that tools should be selected to enable a system
than the sad end of a self-fulilling prophesy.
to perform its intended purpose. In many ways,
a system may be thought of as a collection
When people understand principles for
of tools working together to accomplish an
themselves, the “why,” they become empowered
intended outcome. A successful enterprise is
to take personal initiative. Leaders who teach
usually made up of complex business systems
associates the principles behind the tactics
that can be further divided into layers of
or the tools can be conident that innovation
sub-systems, each having embedded in them
from each individual will be pointed in the
the necessary tools to enable the successful
right direction. It is not necessary for a leader
purpose of the system.
to deine ideal behaviors for others. If the
principle is truly a principle, diverse people
Perhaps the largest mistake made by
with diferent values will readily be able to
corporations over the last three or four decades
deine ideal behavior for themselves and be
has been the inappropriate focus on a speciic
very consistent with others.
tool-set as the basis for their improvement
eforts. Tools do not answer the question of
Dr. Shingo understood this and taught “why,” only the question of “how.” Knowing the
that the primary role of a leader is to “how” without understanding fully the “why,”
leaves people waiting for instructions and are
drive the principles of operational powerless to act on their own. Organizations
excellence into the culture. can never suiciently release the full potential
of their people by creating a tool-oriented
Aligning the Systems with Principles culture.
All work in organizations is the outcome of a
system. Systems are either designed to produce
a speciic end goal or they evolve on their own.
Systems drive the behavior of people or rather
they create the conditions that cause people to
behave in a certain way. One of the outcomes of
poorly designed systems is enormous variation
in behavior or even consistently bad behavior.
Variation in behavior leads to variation in
results. Operational excellence requires ideal
behavior that translates into consistent and
ideal results.

12 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 13
 Cultural Enablers (People)

throughout the enterprise. This is because I Lead with Humility (the principle);
these values are “what’s” that fail to answer therefore, I accept responsibility and
for people the question of “why.” A principle
enable change (the value). Because

MODEL
answers the question of “why.”
I possess humility (the principle);
Here is a way to think about the alignment of therefore I seek, trust, and follow the
principles with these kinds of values.
Cultural enablers make it possible for people
direction of those with a responsibility
within the organization to engage in the Because we respect every individual to lead (the value).
transformation journey, progress in their (the principle); therefore, we always
understanding, and ultimately build a culture he following table provides examples of ideal
of operational excellence. place safety first (the value). Because behavior for leaders, managers, and associates.
we have respect for every individual (the he list is intended to provide examples of
Operational excellence cannot be achieved ideal behavior that comes from these two
principle); therefore, we empower people guiding principles and should not in any way
through top-down directives or piecemeal
implementation of tools. It requires a to act independently (the value). be considered as an exhaustive list.
widespread commitment throughout the Because we have respect for every
organization to execute according to the individual (the principle); therefore, we
principles of operational excellence. A culture
must be developed where every person in make all of our communications open
the organization demonstrates a high level of and transparent (the value). When
DIMENSION ONE: respect for every other person. Developing a people understand the “why,” they
culture of mutual respect and humility takes
are far more capable of consistently
CULTURAL a consistent commitment over a sustained
period of time. interpreting the correct behavioral
implications of the value, the “what.”
ENABLERS Principle - Respect Every Individual
Respect is a principle that enables the Principle - Lead with Humility
development of people and creates an One common trait among leading practitioners
environment for empowered associates to of operational excellence is a sense of humility.
improve the processes that they “own.” This Humility is an enabling principle that precedes
principle is stated in the context of “every learning and improvement. A leader’s
individual” rather than “for people” as a group. willingness to seek input, listen carefully, and
Respect must become something that is deeply continuously learn creates an environment
felt for and by every person in the organization. where associates feel respected and energized
and give freely of their creative abilities. There
Respect for every individual naturally includes is also a need for humility on the part of all
respect for individuals representing customers, members of an organization. Ideas can come
suppliers, the community, and society in from anywhere. One can learn something new
general. Individuals are energized when from anyone. Improvement is only possible
this type of respect is demonstrated. Most when people are willing to abandon ownership,
associates will say that to be respected is the bias, and prejudice in their pursuit of a better
most important thing they want from their way.
employment. When people feel respected they
give far more than their hands; they give their
minds and hearts. Because I Lead with Humility (the
principle); therefore, I am open to good
Respect for every individual becomes a ideas and innovation from anywhere in
powerful “why” for many of the values
espoused by great organizations. For example, the organization (the value). Because
simply stating important values such as safety
irst, empowerment, or open communications
oten fails to create uniform ideal behaviors

14 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 15
 Cultural Enablers

Category Examples of Ideal Principle-Based Behavior Supporting Concept – Supporting Concept –

Assure a Safe Environment Empower & Involve Everyone
Leaders All leaders routinely spend time at the actual work locations where the actual There is no greater measure of respect for the For an organization to be competitive, the full

MODEL
work is performed. individual than creating a work environment potential of every single individual must be re-
Leaders continuously seek the input of others, listen to their input, and adapt that promotes both the health and safety of alized. People are the only organizational asset
their actions based on what they learn. employees and the protection of the environ- that has an ininite capacity to appreciate in
Leaders in all areas demonstrate a willingness to learn and publicly acknowl-
ment and the community. Environmental and value. he challenges of competing in global
edge important insights they have gained.
safety systems embody a philosophical and markets are so great that success can only be
cultural commitment that begins with leader- achieved when every person at every level of
Leaders take responsibility for applying principles of operational excellence in ship. When leadership is committed, then the the organization is able to continuously in-
their own lives and ensure these principles become the foundation of organi- organization creates and supports appropriate novate and improve. Elimination of barriers to
zational culture. systems and behaviors. that innovation becomes the responsibility of
Leaders engage people at all levels in defining ideal, principle-based behav- management.
iors and support managers in the alignment of all business and management In short, safety is irst!
systems. Fundamental to the Shingo model is the con-
Leaders develop systems to ensure they remain publicly accountable for their Supporting Concept – cept of teaching people the key principles (the
own principle-based behavior seeking feedback from all levels and across the Develop People why) behind everything they do. When people
entire enterprise. People development has emerged as an understand why, they become empowered to
important and powerful cultural enabler and take personal initiative. Managing a team of
Leaders ensure products and services do not have an unintended negative goes hand-in-hand with principles of op- people who share a deep understanding and
impact on the sustainability of communities and the planet. erational excellence. hrough people devel- commitment to the key concepts and prin-
Managers All managers constantly work with others to better align systems with ideal opment, the organization creates the “new ciples is much easier than managing the work
behaviors as defined by the guiding principles. scientists” that will drive future improvement. of those who are only doing what they are
Managers act as coaches and mentors to others in the execution of principle- People development is far greater than just told. Empowered employees who understand
based systems and are constantly receiving personal and organizational classroom training. It includes hands-on relevant principles are far more likely to make
feedback for improvement. experiences where people can experience new good decisions about the direction and appro-
ideas in a way that creates personal insight priateness of their ideas for improvement.
All managers are visible in the work space and demonstrate an openness and a shit in mindsets and behavior.
to listen and learn from others. Similarly, when employees have a clear sense
Managers across the enterprise ensure associates have the information they An organization’s leaders must be commit- of direction and strategy and have a real-
need to be successful in their work and push decisions out and down to the ted to developing people and expanding the time measure of contribution, they become a
appropriate levels. knowledge base. Leaders come to realize powerful force for propelling the organization
Managers create a safe and productive work environment- keeping the safety that expenses for education and training are forward.
of all associates as the highest of all priorities. necessary investments for long-term health;
as such, the commitment to this investment
Managers regularly review the skills and competencies required of all associ- does not waver.
ates and work with each one to provide appropriate opportunities for associ-
ates to gain new insight.
Managers ensure appropriate systems are in place to protect the environment
and support for the communities where they are located.
Associates All associates, every day, demonstrate a commitment to the policies, prin-
ciples, and standards developed for the areas in which they work.
Associates seek out and learn from others in the organization including leaders,
managers, and peers.
All associates take full responsibility for their own personal development in
relation to their contribution to the enterprise.
Associates demonstrate a strong commitment to providing the greatest value
for customers with the least amount of non-value-added resource.
All associates seek to understand issues from the customer’s point of view
and strive to maximize the uninterrupted flow of value to them.
Associates demonstrate an eagerness to learn new skills, take initiative and
share their learning and success with others.
Table One: Examples of Ideal Behavior for Cultural Enablers

16 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 17
 CONTINUOUS PROCESS IMPROVEMENT

the mistake but rather leads to a pursuit of the without running into the traditional trade-ofs.
real culprit (process) that allowed the mistake In addition, daily and weekly results become
to be made. Thus, process focus also supports more consistent and predictable.

MODEL
the cultural enablers, creating an environment
where learning from mistakes can become a Principle – Assure Quality at the Source
powerful element of continuous improvement. Assuring quality at the source is the
combination of three important concepts: (1)
Continuous improvement begins by clearly Principle – Embrace Scientific Thinking do not pass defects forward, (2) stop and ix
deining value through the eyes of customers. A focus on process lends itself to scientiic problems, and (3) respect the individual in the
Expectations must be clearly communicated thinking, a natural method for learning and process. Defects are a source of instability and
so systems can be designed to meet customer the most efective approach to improvement. waste, so assuring quality at the source requires
needs. Every employee must know “what good All associates can be trained to use scientiic the establishment of processes for recognizing
is,” whether his or her process is creating good thinking to improve the processes with which errors in the process itself. Organizations
product or service, and they must know what they work creating a culture that provides must commit to stopping and ixing processes
to do if it is not. common understanding, approach, and that are creating defects, rather than keeping
language regarding improvement. Scientiic product or services moving while planning
As associates learn to identify and eliminate thinking is also results-based, placing a to ix the issue later. Proper use of the human
waste, they will by necessity follow Dr. Shingo’s premium on deining and communicating element in the process for thinking, analysis,
advice: “Improvement means the elimination desired outcomes throughout the organization. problem solving, and the implementation
of waste, and the most essential precondition of countermeasures is vital to continuous
for improvement is the proper pursuit of goals. here are a variety of models for scientiic improvement.
DIMENSION TWO: We must not be mistaken, irst of all, about thinking, such as PDCA (plan, do, check,
what improvement means. he four goals of and adjust), the QI Story, A3 thinking, and Principle – Seek Perfection
CONTINUOUS improvement must be to make things: Easier,
better, faster, and cheaper.” Particular emphasis
DMAIC (deine, measure, analyze, improve,
and control).
It is important to understand that the
continuous process improvement journey has
is placed on a quicker, more lexible response no end. his explains Dr. Shingo’s philosophy
PROCESS throughout the system. Principle – Flow and Pull Value
Flow thinking is the focus on shortening lead-
that one should always look for problems
where there doesn’t appear to be any. his is
he focus for continuous improvement cannot time from the beginning of the value stream to contrary to the traditional belief: “If it isn’t
IMPROVEMENT be only quality or cost but instead must
incorporate all aspects of value as perceived
the end of the value stream and on removing
all barriers (waste) that impede the creation of
broken, don’t ix it.” he pursuit of perfection
reveals that there are always opportunities for
by the customer, including innovation, value and its delivery to the customer. Flow is improvement. here is always waste, and the
quality, cost, lexibility, quick delivery, and a the best driver to make processes faster, easier, more a process is observed the more waste will
comprehensive view of environmental health cheaper, and better. Other potential drivers be seen.
and safety. such as unit cost or process variability are too
narrowly focused, distorting priorities and While focus on process guides and directs the
Continuous improvement focused on low of delivering suboptimal results. A cost focus improvement eforts, seeking for perfection is
value requires both scientiic thinking and the is particularly dangerous, when it creates the engine that keeps improvement energized
capacity to identify and eliminate waste (things perverse incentives and budget manipulations and moving forward at an aggressive pace. he
that interrupt the continuous low of value). incidental to actual improvement. term problem-solving may imply that ater a
solution is implemented, improvement is done.
Principle – Focus on Process Pull is the concept of matching the rate of Seeking perfection and scientiic thinking
A process focus recognizes that all outputs, production to the level of demand, the goal combine to ind countermeasures, not game-
whether product or service are created by in any environment. Yet pull is not feasible or ending solutions, and then revisits the issue
processes acting upon inputs. his simple cost-efective without the lexibility and short again and again, pursuing perfection without
truth is oten overlooked: Good processes will lead times that result from low. really expecting to ind it.
produce the intended output, as long as proper
inputs are provided. Flow and pull create enormous positive he following table provides examples of ideal
beneits in all aspects in any business. Focusing behavior for leaders, managers, and associates.
Process focus also helps focus problem-solving on low will lead to improvements, including he list is intended to provide examples of
eforts on process rather than people. A better safety and morale, more consistent ideal behavior that come from these ive
complete shit to process focus eliminates the quality with fewer defects, increases in on- guiding principles and should not in any way
tendency to ind the culprit (person) who made time delivery and lexibility, and lower costs, be considered as an exhaustive list.

18 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 19
 CONTINUOUS PROCESS IMPROVEMENT

Category Examples of Ideal Principle-Based Behavior Supporting Concept – rather than springing back to preceding
Stabilize Processes practices and results. Standardization also
Leaders Every leader devotes a significant amount of his/her time (up to 80 percent) Stability in processes is the bedrock foundation eliminates the need to control operations
ensuring the principles of continuous improvement are deeply embedded into

MODEL
of any improvement system, creating through cost standards, production targets, or
every facet of the organizational culture. consistency and repeatability. Stability is a other traditional supervisory methods. When
Every leader consistently evaluates their own behavior related to each of the prerequisite for improvement, providing a standardization is in place, the work itself
principles. basis for problem identiication and continuous serves as the management control mechanism.
Leaders ensure continuous improvement is a part of their daily standard work improvement. Almost all of the continuous Supervisors are freed up for other tasks, when
and are accountable to others for their improvement. improvement principles rely on stability. they are not “required” to monitor and control
the output and costs.
Leaders in all areas create a healthy tension between celebrating accomplish- Stability is the precursor to achieving low.
ments and setting goals to move to the next level. Many of the rationalizations for waste are based Supporting Concept –
All leaders in every area of the organization encourage the establishment of on the instability of processes, as if they are Insist on Direct Observation
stretch goals and encourage managers and associates to push themselves to beyond our control. Instead, we should apply Direct observation is a supporting principle tied
levels of performance that do not seem possible. the basic tools available to reduce or eliminate to scientiic thinking. It is in fact the irst step
Leaders consistently ask for and expect to see the application of appropriate instability and create processes that enable the of the scientiic method. Direct observation is
tools to understand root cause prior to implementing countermeasures. identiication and elimination of waste. necessary to truly understand the process or
phenomenon being studied. All too frequently,
Leaders expect and support the role of managers in designing and constantly Supporting Concept – perceptions, past experience, instincts, and
improving systems at the business, management, improvement, and work Rely on Data & Facts inaccurate standards are misconstrued as
levels as the first course of action when results are less than expected. Shingo emphasized the importance of being reality. hrough direct observation, reality
Every leader understands and balances the organizational focus on both be- data-driven in the pursuit of continuous can be seen, conirmed, and established as the
haviors and results, holding themselves and others accountable for both. improvement. He frequently shared examples consensus.
Managers Every leader understands and balances the organizational focus on both be- of speciic situations where data was collected,
haviors and results, holding themselves and others accountable for both. but it was not the correct data or the data Supporting Concept –
wasn’t actually being used in the improvement Focus on Value Stream
All managers participate with associates as required on improvement initiatives. process. Finally, he was adamant that the Flow and pull value combined with focus on
Managers demonstrate knowledge of appropriate tools and use them regu- understanding of the actual process be so process lead to the necessity of deining value
larly to solve problems related to their areas of responsibility. detailed that when implementing a change in streams and focusing organizational attention
Managers ensure the necessary resources are always available to support the process the improvement in the data could on them. A value stream is the collection of all
continuous improvement and help associates to understand the reasons why be predicted. hus, reconciliation is required of the necessary steps required to deliver value
a particular idea may not be implementable, empowering them to create even between the predicted results and the actual to the customer. Deining what customers value
better ideas the next time. results, making the improvement process is an essential step to focus on the value stream.
truly data-driven. he principle is that when Clearly understanding the entire value stream,
All managers watch for and appropriately recognize associates for both dem- data is treated loosely or imprecisely, there is however, is the only way for an organization to
onstrating ideal behavior and for achieving business goals. a tendency to leave potential improvement on improve the value delivered and/or improve
Associates Every associate in every part of the organization is engaged every day in us- the table or, even worse, to not achieve any the process by which it is delivered.
ing the appropriate tools of continuous improvement to eliminate waste and improvement at all.
maximize value creation.
Associates everywhere seek to understand the principles (the why) behind the Supporting Concept –
tools (the how); they learn and use that knowledge to continuously improve the Standardize Processes
application of the tools. While stability is a necessary precondition
All associates demonstrate the courage and integrity to tell the truth, stop pro-
for creating low and improvement,
duction, and be accountable for defects they observe or create themselves.
standardization builds control into the process
itself. Standardization is the supporting
Associates share their expertise in developing best practice standard work and principle behind maintaining improvement,
demonstrate the discipline to follow it until a better way has been developed.

Table Two: Examples of Ideal Behavior for Continuous Process Improvement

20 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 21
 CONTINUOUS PROCESS IMPROVEMENT

consistently drive appropriate behavior, while

Supporting Concept – the wrong focus can frequently become a Supporting Concept –
Keep it Simple & Visual barrier to improvement, large inventory Integrate Improvement with Work

MODEL
write-downs, ire sales, or scrap. In the end, As the migration toward a principle-based
identifying and eliminating waste is a concept culture occurs, the activities and approaches
“Everything should be made as that efectively engages the entire organization for continuous improvement become a part
simple as possible, but not simpler.” in the continuous improvement efort. of the everyday work of every employee in an
~Albert Einstein organization. Associates become “scientists”
Supporting Concept – who continually assess the current state of
No Defect Passed Forward their processes and pursue a better future state
“Simplicity is the ultimate his concept is essential for operational that will enhance the value (or eliminate the
sophistication.” excellence from many diferent points of view. waste) and thus pursue perfection.
~Leonardo DaVinci From a leader’s perspective, it requires great
courage to stop the process long enough to Each person in an organization performs
In society today, there is frequently a bias understand the root cause and take counter- daily work. When improvement is integrated
toward complex solutions and a premium measures that prevent the process from with work, each person accepts responsibility
paid to those who seem to manage complexity reoccurring. For the leader, this oten means for improvement of the daily work processes.
well. However, it is usually the case that better trading any short-term loss for substantial Executives are responsible for improving
results at a lower cost can be achieved by long-term gain. strategy setting processes or perhaps resource
simpliication. Dr. Shingo’s life work in mistake alignment processes. hey are primarily
prooing is centered on this principle. From a manager’s perspective, systems must responsible to deploy mission-critical strategy
be in place to ensure that any result that varies and metrics down into the organization such
Many of the seven forms of waste are in fact from the standard, even slightly, creates an that every person not only has a clear line of
the result of information deicits. Making expectation of and support for immediate sight to what matters the most but are also
information visual is the supporting principle action. We oten call this “swarming.” motivated by the mission in a way that creates
that when combined with simpliication solves a compelling case for improvement.
the information deicits. From an associate’s point of view, “no defect
passed forward” requires a mindset of Managers are responsible for improving
Supporting Concept – ownership and accountability. If standards are quality systems, or performance development
Identify and Eliminate Waste clearly deined, every person should know what systems, or value stream low. Line workers
Identiication and elimination of waste is good is. Leaders and managers should role are responsible for improving their cycle
a practical concept for making processes model then create the conditions for associates times, or quality of work, or yields. Integrating
low, thus it becomes a primary focus of to develop the mindset of personal integrity; improvement with work is more than
continuous improvement. Waste elimination meaning, that no one would ever knowingly assigning responsibility. It entails the creation
is a powerful supporting principle because it or willingly forward the outcome of their value of standardized work that deines procedures
is easily understood by everyone associated contribution to someone else if it contained the for improvement.
with a value stream, compared to the complex slightest variation from the standard.
concepts and computations oten associated Implications of this concept are that
with cost per unit, cost variances, statistical his supporting concept feeds the mindset and improvement initiatives that require
variability, and other complex metrics. tools of continuous improvement and creates organization, the deinition of projects,
Focusing on the elimination of waste will the conditions for seeking perfection. It is assignment of full-time personnel, or the use of
possible to achieve perfection in the application special titles should be seen as transitional. As
of this concept. long as improvement largely depends on these
things, the culture of operational excellence
will remain elusive.

22 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 23
 Enterprise Alignment

provides a unifying vision. This sense of Changes in direction, guiding principles, and
direction helps people keep their eyes on the key metrics should be treated like changes in
horizon so that when tactical decisions require the national constitution. Organizations that

MODEL
a temporary detour, they understand why and frequently redirect philosophies and strategies
can contribute to getting back on track. fail to recognize the tremendous waste associated
with instability, luctuation, and perhaps most
The second category for where constancy of importantly, the loss of human commitment.
One of the most signiicant failures of modern purpose can be achieved is in the establishment
management is its focus on strategy and planning of the guiding principles upon which the Principle – Think Systemically
without considering execution. To succeed, organization is grounded. Principles are Systemic thinking is the principle that
organizations must develop management universal, timeless, and self-evident laws that uniies all the other principles of operational
processes that align work and behaviors with govern the consequences of our actions. The excellence and enables organizations to sustain
both philosophy/principles and direction degree to which principles are adhered will their culture of continuous improvement and
in ways that are simple, comprehensible, always impact the success of any organization. develop a constancy of purpose.
actionable, and standardized. Individual Leaders must come to understand which
leaders cannot develop individual approaches principles have the greatest impact on results Systemic thinking requires organizations
to management without introducing massive and then make certain every aspect of the to both analyze and synthesize. Analysis, or
waste into an organization. organization is organized to drive behavior convergent thinking is focused on taking
that is in greatest harmony with the principles. things apart to see what can be learned from
Strategy deployment requires a management the various components. We call this “looking
process built around scientiic thinking, with Having established direction and guiding into things.” Synthesis, or divergent thinking,
DIMENSION THREE: more emphasis on cycles of learning than principles, a leader must align strategy and
performance metrics broadly and deep into the
is focused on seeing how things might work
together. We call this “looking out of things.”
on perfect plans. It is essential to establish
organization. A system must be built to ensure
ENTERPRISE efective communication, a process for gaining
consensus, clear accountability, and systems constant communication, both up and down.
Convergent thinking includes being logical
and organized while divergent thinking
embodies being imaginative and interpersonal.
where execution and countermeasures are
ALIGNMENT planned and tracked, whether through
PDCA or a similar methodology. In essence,
Operational excellence requires both.

operational excellence is the deinition of

successful strategy deployment, when business
Looking into things Systemic Looking out of things
strategies are aligned with correct principles.

he sum of individual eforts rarely even

-take apart thinking -see how things work together
approximates the efective alignment of the
pieces into a single integrated whole. Creating
value for customers is ultimately accomplished
1
Analyze
2
Synthesize
through the efective alignment of every value
stream in an organization. (Convergent Thinking) (Divergent Thinking)
Principle – Create Constancy of Purpose Concept Tools
Almost every aspect of any organization is in
a constant state of change. Customers change,
customer’s expectations change, competitors
change, markets change, technology changes,
leadership and management changes, processes
change, products change, strategies change,
even values or the implied meaning of those
values change. Even knowing this, the irst of
W. Edwards Deming’s “14 Points” is to create
constancy of purpose. How is this possible?

Purpose, at the highest level answers the

question: “Why does this organization exist?”
It is incumbent upon leaders to ind agreement Tools Concept
on philosophical and strategic direction that

24 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 25
 Enterprise Alignment

Leaders realize that the impact of synergy As managers move into systemic thinking, Category Examples of Ideal Principle-Based Behavior
— how things work together — is far greater the full value of operational excellence
Leaders All leaders share a common, clear, and compelling vision of the future and talk
than the sum of the parts. As managers is realized across the organization, the

MODEL
about it in a consistent way everywhere they go.
design and align systems with correct enterprise, and ultimately the entire Leaders create and consistently execute a system of “catch ball” to present
principles they must shift from thinking value chain. As associates adopt systemic ideas on strategy down and across the organization, receive feedback, and
purely analytically to thinking systemically. thinking practices, they gain the necessary build organizational consensus.
Systemic thinking is comprised of three perspective to safely initiate improvement Leaders establish a simple system of metrics and accountability that aligns
parts: holistic thinking, dynamic thinking, projects on their own. Ultimately, this and prioritizes the work, decision making, and improvement efforts of the
and closed-loop thinking. understanding is what allows improvement organization.
efort to transition from being solely top- Leaders focus both on results and behavior, setting targets and accountability
Holistic thinking is about seeing the “big down to more of a grass roots efort. for both.
picture.” It requires two things. First, Managers Managers ensure a continuous flow of information (both horizontally and verti-
everyone has a common vision concerning he following table provides examples of cally) to associates, making sure they fully understand the context for their
work and the goals they set.
what they are working to achieve. The ideal behavior for leaders, managers, and
Managers develop systems to ensure all associates understand strategy, tactics,
second requirement is transparency across associates. he list is intended to provide
and metrics and know how their work contributes.
the system. examples of ideal behavior that come from
All managers ensure people have enough information and a broad enough
these two guiding principles and should not perspective to know the implications of their recommendations and actions.
Dynamic thinking requires recognizing in any way be considered as an exhaustive
Associates Associates ask questions that expand thinking to the broader context beyond
that all current situations are the result list. their own jobs.
of interactions between parts of a system
Associates seek job experiences that broaden their perspective.
that occur over time, rather than snap-shot
All associates know the performance and behavioral metrics for their area, use
events. them to create personal and team improvement, and connect their work with
company goals.
Closed-loop thinking requires under-
Table Three: Examples of Ideal Behavior for Enterprise Alignment
standing how changes within the system
ripple across the value stream afecting the
work/behavior of other employees in the
same department, in other departments,
external customers, suppliers, and other
stakeholders.

26 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 27
 Enterprise Alignment

Supporting Concept – more likely that decisions will in fact pursue Supporting Concept –
See Reality safety, quality, delivery, and cost rather than Standardized Daily Management
This is a very important concept. Most monthly or quarterly inancial targets or he concept of having some level of detailed

MODEL
managers and leaders consider themselves bonus cut-ofs. In conjunction with taking work description for how to actually do daily
quite capable of seeing the world around them care of the short- and medium-term priorities, work applies at all levels of the organization.
and assessing the current situational realities. thinking in terms of 20- to 50-year legacy goals Regardless of the perception among many
However, Dr. Shingo teaches that people signiicantly reduces the tendencies for knee- leaders, their work can and should also be
can have blind spots created by long-held jerk reactions to urgent pressures. organized into standard components.
paradigms, experience, history, expectations,
etc. Thus the practice of “go and see” was Supporting Concept – Standard daily management creates a reference
developed based on the principle that reality Align Systems point from which continuous improve can be
needs to be perceived and understood based From the stakeholders’ perspective, the full based. Standard daily management can also
upon the ive senses. potential is realized only when most critical lead to greater process control, reduction in
aspects of an enterprise share a common variability, improved quality and lexibility,
Most organizations create barriers that make platform of principles of operational stability (i.e. predictable outcomes), visibility
it very diicult for people to see and tell the excellence, management systems, and tools. of abnormalities, clear expectations, and a
truth about what they see. A recently retired While it is expected that organizations develop platform for individual and organizational
US senator wrote that having travelled on some unique elements of their local culture, learning. Standard daily management enables
numerous trips with other political and it is also expected that principles become a creativity that is focused and controlled rather
military leaders to areas of serious world common, uniting part of each locale. Top-level than ad hoc.
conlict, his greatest disappointment was that leadership, staf, and business processes should
virtually all of their assessments of progress exemplify the same principles, systems, and Leaders who follow standard work send a clear
were greatly distorted from the actual data tools as do the operational components of the message that they are serious and no one is
they observed. enterprise. above continuous improvement.

Further, most organizations unintentionally Supporting Concept –

build cultures that prevent the free low of Align Strategy
information that communicates an honest Policy deployment is a planning and
picture of reality. Max De Pree said, “he irst implementation system, based on scientiic
responsibility of a leader is to deine reality.” thinking, employee involvement, and respect
A leader must establish systems that make for the individual. At the strategy level, policy
organizational performance and associate deployment provides leadership with the
behavior transparent to all. necessary principles, systems, and tools to
carefully align key objectives and execution
No leader can efectively lead without having strategies while empowering the organization
a irm grasp of the current business realities. through cascading levels of detail to achieve
those objectives. Because so many people are
Supporting Concept – involved, clarity is critical; the simplicity of
Focus on Long-term aligning strategy helps keep everyone, literally,
Jefrey Liker highlights the principle of long- on the same (single) page, pointed in the same
term focus, which provides a foundation direction.
of stability in the executive suite that can
be achieved in no other way. When an
organization creates a long-term focus, it is

28 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 29
 Results

Category Examples of Ideal Principle-Based Behavior

Leaders Leaders make sure the company scorecard is balanced between results and

MODEL
behavior.
Leaders ensure the voice of the customer is clearly heard throughout the
entire organization.
Leaders systematically discuss all business results with employees,
he basic principle of the results dimension encouraging questions and discussion.
is that businesses must low value, with value
typically deined as something for which Managers All managers implement systems that place value creation and waste elimina-
customers are willing to pay. herefore, the tion at the heart of management and improvement efforts.
deinition can include many stakeholders: Managers routinely discuss with associates the relationship between actual re-
Customers willing to pay; investors willing sults and the systems and principles that are creating them.
to invest; communities willing to support; Managers make sure that established metrics are aligned upward and side-to-
and employees willing to commit their side and are understood and committed to by the people who affect them, so
trust, conidence, and careers. Operational people can see instantly where they are relative to the targets and they know
excellence creates the low of value to all how to move the dial.
stakeholders, improving customer satisfaction
and stakeholder value, while maintaining a safe Associates All associates systematically review results and ask questions to understand
and healthy environment. cause-and-effect.
Associates use results metrics to prioritize and take personal initiative to make
DIMENSION FOUR: Principle – Create Value for the Customer improvements that impact the areas where improvement is needed most.
Every aspect of an organization should be
RESULTS focused on creating value for the customers,
investors, employees, and communities. Again,
Table Four: Examples of Ideal Behavior for Results

to know to be able to plan, organize, and for creating the environment and the process
it is helpful to consider the true north concept control. Within a model where widespread for people to evaluate the correctness of their
that should guide decision-making and involvement is essential for continuous own values relative to the performance results
continuous improvement. An organization improvement and consistent performance, it required of the organization.
should drive all aspects of value, including is important to deine measures that matter
quality, lexible responsiveness to customers, to those who will be using them. herefore, A business set a goal to reduce customer
and return to stakeholders (e.g., growth, line associates need diferent measures than complaints only to ind that as they did, they
revenue, proit, safety, and environmental leaders responsible for the overall enterprise. began to lose valuable customers. he measure
impact). Many thought leaders on measurement have was driving behavior that made complaining
suggested the new measurements need to: 1) such a painful experience that they just
he following table provides examples of ideal be directly tied to strategic priorities – move stopped calling. A better measure might have
behavior for leaders, managers, and associates. the dial, 2) be simple and easy to capture, 3) been to increase the number of complaints so
he list is intended to provide examples of give timely feedback that is tied to the cycle of that every single disappointment is given an
ideal behavior that come from this single work, and 4) drive improvement. opportunity to be resolved.
guiding principle and should not in any way be
considered as an exhaustive list. Measures that matter can be created throughout Supporting Concept –
the organization to assure that everyone is Identify Cause & Efect Relationships
Supporting Concept – focused on the appropriate strategic activities When we want to make a car go faster, we
Measure what Matters and driving continuous improvement that simply press more on the gas pedal. So, the
Historically, measurement has been focused moves the whole enterprise ahead. “dial” is the speedometer. What moves the dial?
on management – what management needed Pressing on the gas pedal. Why does this work?
Supporting Concept – Because there is a physical linkage from the
Align Behaviors with Performance pedal to the engine to the axle. here is a clear
Ideal behavior drives long-term results. his cause-and-efect relationship.
happens when the systems are aligned with
principles of operational excellence. Managers Organizations must follow the linkages to
should help each person anchor their own determine the cause-and-efect relationships
personal values with these same principles. and how goals can be achieved. his is the same
Personal values are what ultimately drive concept as root-cause analysis but applied to
individual behaviors. Leaders are responsible creating value.

30 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 31
 SCOPE OF TRANSFORMATION

Operations Many, if not all, of these management support

•฀Product฀or฀Service฀Delivery
processes are fundamentally non-value-added
in a pure lean sense; that is the customer
•฀Materials฀management

MODEL
would not pay extra for these. However, some
•฀Process฀engineering part of each process is “necessary non-value-
•฀Maintenance
added work” that is currently vital to the
proper functioning of the organization and
•฀Quality฀assurance฀and฀reliability the eventual efectiveness of the value-added
Business & Management Systems
The principles of operational excellence must be •฀Testing processes, (i.e., a company needs to pay taxes),
applied across all the business and management but the customer doesn’t necessarily get value
systems. The pie in the center of the House from the process. Applying the principles to
Supply these processes will help to make sure that they
represents the scope of transformation within
•฀Supplier฀Selection฀and฀Qualiication are completed as quickly as possible with the
an organization, including all basic customer-
facing business systems and all management •฀Supplier฀development฀and฀partnering fewest possible resources.
support system. The systems associated with •฀Procurement฀process
each of ive typical business areas could include: Principles of operational excellence should
•฀Logistics be applied conscientiously in all of these
business and management support processes.
Customer Relations As understanding deepens and application
•฀Sales
Management Support
spreads throughout the entire enterprise,
•฀Recruiting a consistent culture develops which is self-
•฀Advertising/promotion
SCOPE OF •฀Order฀processing฀and฀tracking
•฀Compensation฀and฀beneits
•฀Training฀and฀employee฀development
perpetuating and self-directing.

•฀Responsive/lexible฀scheduling
TRANSFORMATION •฀Invoicing฀and฀collections
•฀Employee฀relations฀and฀satisfaction
•฀Capital฀budgeting
•฀Warranty
•฀Budgeting
•฀Product/service฀development
•฀Financial฀reporting
•฀Business฀processes
•฀Management฀accounting฀reporting
Product or Service Development •฀฀Accounts฀receivable฀and฀accounts฀payable฀
•฀Market฀segmentation฀and฀selection (A/R and A/P)
•฀Research •฀Asset฀management
•฀฀Development฀of฀products฀or฀services,฀ •฀Computer฀systems฀and฀support
processes, and prototypes •฀Computer฀application฀design฀and/or฀support
•฀New฀product฀or฀service฀launch •฀Networking฀systems฀and฀support

32 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 33
 improvement planning. A few use the Shingo
model as a way to recognize their associates for
excellent work, and others use it to demonstrate

MODEL
to current and prospective customers that they
can compete with anyone in the world. Some
use the Shingo model for all of the above.

Operational excellence is the vision that The real Shingo Prize, however, is the business
SUMMARY many organizations have established to
drive improvement. Programs, names, tools,
results that come from the relentless pursuit
of a standard of excellence that is, without
projects, and personalities are insuicient question, the most rigorous in the world. Those
to create lasting change. Real change is who use the Shingo model will embark on a
only possible when timeless principles of journey that will accelerate the transformation
operational excellence are understood and of their organization into powerful, dynamic,
deeply embedded into culture. he focus of nimble competitors.
leaders must change to become more oriented
toward driving principles and culture while the No obstacle – afordable healthcare,
manager’s focus becomes more on designing eicient transportation, emerging global
and aligning systems to drive ideal principle- environmental concerns – will be beyond
based behavior. the reach of those who embrace principles of
operational excellence and make certain that
he ultimate mission of he Shingo Prize for every person in their extended value stream
Operational Excellence is to assist organizations deeply understands the “why” behind the
of all kinds in building operational excellence. “what.”
he 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. Some use the Shingo model
as the basis for organizational assessment and

34 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 35
 The Shingo Model
The Shingo Principles of Operational Excellence The Shingo Transformational Process

INDIVIDUAL FOCUS

Measure what Matters Core Values Anchored to

Create Value for the Customer Results

Align Behaviors with Performance
Identify Cause & Effect Relationships
GUIDING PRINCIPLES
RM

AL
I

IG
FF ORGANIZATIONAL FOCUS

N
Create Constancy of Purpose Enterprise Alignment See Reality A
VE

DR
Think Systemically Focus on Long-term
RI

IV
Align Systems
D

E
Align Strategy
Standardized Daily Managment

SUPPLY MANAGEMENT

OPERATIONS

PRODUCT
CUSTOMER
RELATIONS
RESULTS Culture SYSTEMS
& SERVICE
(Behavioral Evidence)
DEVELOPMENT Stabilize Processes
Rely Facts & Data
Standardize Processes
Insist on Direct Observation
Focus on Value Stream
Focus on Process Continuous Process Keep it Simple & Visual
Embrace Scientific Thinking

RE
Flow & Pull Value Improvement Identify and Eliminate Waste
B LE

FI
NA

NE
Assure Quality at the Source No Defects Passed Forward
Seek Perfection Integrate Improvement with Work E T

AC
C
LE

HI
SE

EV
Assure a Safe Environment
Lead with Humility

E
Cultural Enablers Develop People
Respect Every Individual
Empower & Involve Everyone
TOOLS
™ The Shingo Prize

GUIDING PRINCIPLES SUPPORTING CONCEPTS

ize
Pr
go
in
Sh
e
Th
TM
37
 Shingo Executive Education Courses: Taught Separately

DISCOVER
Principles of Operational Excellence
– Organizational Transformation with Principles, System & Tools

BUILD
Building Systems to Drive the Right Behavior
– Mobilizing Capabilities

LEAD
Leading with Principles
– A Leader’s role in Creating Individual & Organizational Alignment

ALIGN
Behavior-Based Strategy Deployment
– Aligning Performance with Ideal Behavior

Shingo Executive Education Year Long Certificate Track: This 12-month, highly-integrated educational
experience, coaches executives on how to lead their organization through a "Principle-based Cultural Transformation".

LEARNING FLOW: The 4 Disciplines of Operational Excellence

DISCOVER ฀ BUILD ฀ LEAD ฀ ALIGN Timeline Approx.
(weeks)

Participants in the workshops will be able to: (3 Day) 0

DISCOVER the BRIDGE

• Describe the benefits of focusing on principles Discipline 1: Principles of Operational Excellence
Transformation Process ฀ Principles Behavior ฀ Assessment
4
• Articulate principle-driven behavior
•
Homework
Identify how tools link to systems GoGo & See
& See Team Webinar
8
Personal Call
• See and assess behavior to provide constructive feedback
• Explore what adjustments could be made to improve systems in driving 12
ideal behavior
(3 Day) 16

BUILD the VEHICLE

• Select high impact systems to drive ideal behavior Discipline 2: Building Systems to Drive the Right Behavior
Synthesize ฀ Interconnect ฀ Adjust
20
• Scientifically experiment with adjusting systems Homework
• Re-align systems to eliminate work-a-rounds/ fire-fighting Go See Team Webinar
Personal Coaching 24
• Build system reliability - monitor behavior
28

Construct TSP Map: System - Behavior Alignment

(3 Day) 32

Learning - Observation - Reflection Journal

LEAD the DRIVER

Build Critical Action Plan - Daily Rhythm

• Clarify teaching role: when to mentor, coach, lecture Discipline 3: Leading with Principles
Learning Cycle ฀ Teaching Cycle ฀ Engagement
36
• Unify the learning & teaching cycles Homework
Go See
•
Team Webinar
Ask questions that inspire & motivate Personal Coaching 40
• Unleash talent and passion
• Create a workforce that engages in continuous improvement 44

(3 Day) 48

ALIGN the DIRECTION

• Translate your desired culture into specific behaviors - based Strategy Deployment
Discipline 4: Behavior
TSP Mapping ฀ True North Measures฀ Organizational Alignment
52
• Monitor behavior (KBI) & performance (KPI) Homework

• Align and measure the execution of YOUR strategy Go & See Team Webinar
Shingo Exchange Blog 56
• Create a visual map to align & adjust your culture

Recognized at International Shingo Prize Conference

Executive Education Certificate – USU/Shingo Prize 60

Copyright © The Shingo Prize
38 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines Administered by the Jon M. Huntsman School of Business at Utah State University 39
 The Shingo Model
The Shingo Principles of Operational Excellence The Shingo Transformational Process

INDIVIDUAL FOCUS

Measure what Matters

Align Behaviors with Performance
Core Values Anchored to
Create Value for the Customer Results Identify Cause & Effect Relationships GUIDING PRINCIPLES
RM

AL
I

IG
Create Constancy of Purpose Enterprise Alignment See Reality
FF ORGANIZATIONAL FOCUS

N
Think Systemically Focus on Long-term A
VE

DR
Align Systems
RI

IV
Align Strategy
D

E
Standardized Daily Managment

SUPPLY MANAGEMENT

OPERATIONS

PRODUCT
CUSTOMER
RELATIONS

& SERVICE
RESULTS Culture SYSTEMS
DEVELOPMENT Stabilize Processes (Behavioral Evidence)
Rely Facts & Data
Standardize Processes
Insist on Direct Observation
Focus on Value Stream
Focus on Process Continuous Process Keep it Simple & Visual
Embrace Scientific Thinking
Improvement Identify and Eliminate Waste

RE
Flow & Pull Value
L E
AB
No Defects Passed Forward

FI
Assure Quality at the Source

NE
Seek Perfection Integrate Improvement with Work
EN T

AC
C
LE

HI
Assure a Safe Environment
SE

EV
Lead with Humility Cultural Enablers Develop People

E
Respect Every Individual
Empower & Involve Everyone
TOOLS
™ The Shingo Prize

GUIDING PRINCIPLES SUPPORTING CONCEPTS

ize
Pr
o
ing
Sh
e
Th
TM
40 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines
 performance. Most measures are aligned to being set in many areas outside of operations.
corporate goals and cascade to the lowest level. Alignment may still be weak in areas other
Silos are diicult to identify. than operations, but eforts are being made to
improve and work toward aligning the entire
he Shingo Silver Medallion is awarded to enterprise. Silos are beginning to fall.
organizations who demonstrate strong use of he cultural assessment is broken into three
tools and techniques, have mature systems that distinct evaluation sections, the achievement
he Shingo assessment methodology is being drive improvement, and are beginning to align report, the Shingo Cultural Online Performance
ASSESSMENT embraced by organizations all over the world,
without barrier to industry or geography. We
thinking and organizational behavior with
correct principles of operational excellence.
Evaluation (SCOPE, new and planned to come
online this year), and the site visit. Each section
Leadership is involved in improvement eforts is evaluated and may be used to clarify, amplify,
GUIDELINES have seen involvement expand far beyond
its manufacturing roots into healthcare,
government, and inancial services. here
and supports the alignment of principles
of operational excellence with systems.
and verify the other sections.

are three levels of recognition in place to Managers are deeply involved and focused Achievement reports are written by each
encourage organizations to engage and utilize on driving behaviors through the design applicant and tell the story of their transformation
the Shingo model as early as possible in their of systems. Associates are involved every to operational excellence. he achievement
cultural transformation. Organizations can day in using improvement tools to drive report covers each dimension of the model and
be awarded he Shingo Prize, Shingo Silver continuous improvement in their areas of discusses the principles, systems, and tools that
Medallion, and Shingo Bronze Medallion. A responsibility. Understanding the “why” has are evident and the results they have produced.
third party, non-biased assessment of your begun to penetrate the associate level of the he achievement report, along with the SCOPE

ASSESSMENT CRITERIA
organization can provide a benchmark and organization. Improvement activity is focused survey, is used by members of the Shingo Board
eye-opening feedback that will accelerate your on multiple business systems. At the silver of Examiners to evaluate an applicant’s eligibility
cultural transformation. level the scorecard has a broad spectrum of to be awarded a site visit. Not all applicants
measures and is beginning to include behavioral will be awarded a site visit; furthermore, not all
he Shingo Prize is awarded to organizations elements. Key measures are stable with mostly organizations that receive a site visit will become
that demonstrate a culture where principles of positive trends, and all levels understand how recipients. Further instruction on writing the
operational excellence are deeply embedded to afect the measures appropriately for their achievement report will be provided in a later
into the thinking and behavior of all leaders, areas. here are goals being set in most business section of this document.
managers, and associates. Performance is systems. Alignment is clear and apparent in most
measured both in terms of business results and business systems; plans have been set in place to SCOPE will be administered to each applying
the degree to which business, management, bring them into alignment where it is not. here entity. All data received from SCOPE will
improvement, and work systems are driving are few silos let. populate a Shingo database and be used to
appropriate and ideal behavior at all levels. provide feedback to the applicant. Feedback
Leadership is strongly focused on ensuring he Shingo Bronze Medallion is awarded from SCOPE will be part of a packet, which
that principles of operational excellence are to organizations that demonstrate strong will be provided to each applicant regardless of
deeply imbedded into the culture and regularly use of tools and techniques for business whether or not they are awarded a site visit.
assessed for improvement. Managers are improvement and are working to develop
focused on continuously improving systems to efective systems to create continuity and Site visits that are awarded to applicants follow a
drive behavior that is closely aligned with the consistency of tools applied throughout the standard format. In summary, they are conducted
principles of operational excellence. Associates business entity. Leadership is setting the by a team of examiners that have been trained
are taking responsibility for improving not direction for improvement and supports the and selected by he Shingo Prize for Operational
only their work systems but also other systems eforts of others. Managers are involved in Excellence. he team generally spends two days
within their value stream. Understanding the developing systems and helping others use at the site evaluating the culture of the applicant;
“why” has penetrated the associate level of tools efectively. Associates are trained and duration of a site visit may be extended depending
the organization. Improvement activity has participate at a high rate on improvement on the application. Examiners observe behaviors,
begun to focus on the enterprise as a whole. projects. Understanding the “why” has still review documentation and measures, and ask
At he Shingo Prize level, the scorecard has not penetrated down to the associate level of questions of all levels and business systems of
clearly deined performance measures and is the organization. Improvement activity is still the applying entity. Examiners are provided all
beginning to include measures of behavior. Key heavily focused on operations and has begun evaluation resources available that pertain to an
measures are stable, predictable, and mature in support areas. At the bronze level measures applicant. his could include, but is not limited to,
with positive trends and few anomalies. here are beginning to communicate cause and the achievement report, the SCOPE survey results,
are realistic and challenging goals in most efect. Key measures have begun to stabilize and past documentation used to challenge.
areas with a good understanding of world-class with trends being mostly positive with some
backsliding still evident. here are goals

42 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 43
 This robust assessment process is used for all examples of systems that drive principle-level Tools:
entities applying for The Shingo Prize. It is the behavior and tools that support those systems.
most rigorous cultural assessment available he following is not intended to be a check list •฀Arrangements฀with฀educational฀institutions
because it combines documentation in the for each dimension; it simply provides examples
achievement report (perceived reality) along of principles, systems, and tools in each •฀Personal฀development฀plans
Dimension 1 – Cultural Enablers
with two sources of direct observation, the dimension. he systems and tools observed •฀Lean฀training฀curriculum฀and฀materials
SCOPE survey, and the site visit (actual reality). during an assessment are the artifacts of a
(250 Points Total)
•฀Meetings/huddles
This provides the most accurate assessment of culture. he behavior that is observed during
your culture available. an assessment is key to evaluating the level of Guiding Principles: •฀Suggestion฀forms฀and฀measures
cultural transformation that an organization •฀Community฀open฀house
Assessment Criteria has achieved. Ideal behaviors are characteristic Lead with humility •฀Fundraisers
of the highest level of achievement and are Respect every individual
This section covers the four dimensions of exempliied previously in the model. Examples he following are examples of questions that
the model and serves as a guide and provides of questions in each dimension are also examiners would be engaged in answering
included for guidance purposes.
Supporting Concepts:
and understanding during an organizational
Empower and involve everyone
assessment. Answers to these and other
It is important to note that every business questions asked of leaders, managers, and
system within an organization is assessed to Develop people associates will provide examiners with an
the entire model, operations, product and understanding of the culture of an organization.
Assure a safe environment
Results
Measure what Maters
Align Behaviors with Performance
Idenify Cause & Effect Relaionships
service development, customer relations, his is not intended to be a complete list; it is

ASSESSMENT CRITERIA
Create Value for the Customer

management, and supply. Business systems for guidance and learning purposes. Examiners
The following are examples of systems that
Create Constancy of Purpose
Think Systemically
Enterprise Alignment See Reality
Focus on Long-term may be characterized diferently in any will also evaluate the frequency, duration,
Align Systems
drive behaviors and are aligned to principles
Align Strategy
given organization although the assessment intensity, scope, and role of the behaviors that
as exempliied in the model (the irst portion
Standardized Daily Managment

methodology still applies. he following characterize the culture of an organization.

SUPPLY MANAGEMENT
of this document). Some tools are also listed
diagram illustrates the relationship between he behavior assessment scale provided on
OPERATIONS
CUSTOMER
RELATIONS
as examples. his is not intended to be a check
PRODUCT the diferent systems in an organization. page 49 of this document provides further
& SERVICE
DEVELOPMENT Stabilize Processes
Rely Facts & Data
list, nor is it all inclusive. Not all will be present
Standardize Processes
Insist on Direct Observaion in every organization, and organizations understanding of this process.
Focus on Process Continuous Process Focus on Value Stream
Embrace Scienific Thinking
Flow & Pull Value
Improvement
Keep it Simple & Visual
Idenify and Eliminate Waste may have others not listed here. hese are
Assure Quality at the Source
Seek Perfecion
No Defects Passed Forward
Integrate Improvement with Work simply examples and provide organizations Questions:
Lead with Humility
Respect Every Individual
Cultural Enablers
Assure a Safe Environment
Develop People
some guidance on what an assessment would
Empower & Involve Everyone
evaluate. Open ended questions directed toward leaders,
™ The Shingo Prize
manager, associates, and other observations
GUIDING PRINCIPLES SUPPORTING CONCEPTS

Systems: provide answers to the sample questions below.

Once behavioral evidence is observed and
collected by examiners, it is rated with the
•฀Individual฀development behavioral assessment scale.
•฀฀On-the-job฀ training/training฀ within฀ industry฀
(OJT/TWI) 1. Is on-the-job coaching in lean practices a
•฀Coaching daily part of the culture?
SUPPLY MANAGEMENT
•฀Standard฀daily฀management 2. Is formal lean training and education
•฀Leadership฀development ongoing and updated?
BUSINESS •฀Idea฀sharing 3. Is there a process flow where suggestions
SYSTEMS
OPERATIONS CUSTOMER •฀Suggestion฀and฀involvement are processed quickly and feedback is
RELATIONS •฀Reward฀and฀recognition received by the originator?
PRODUCT
•฀Communication 4. Is the organization a safe and clean
& SERVICE •฀Environmental,฀health,฀and฀safety workplace where safety and environmental
DEVELOPMENT
•฀Education/training standards are continually improving?
•฀Community฀involvement 5. Does the recognition system focus on
•฀Recruitment฀and฀succession฀planning performance that encourages ideal behavior
•฀Accountability and is it frequent, timely, and specific?

44 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 45
 Systems: Tools: Questions:

•฀Voice฀of฀the฀customer •฀Customer฀surveys Open ended questions directed toward leaders,

manager, and associates and other observations
•฀฀Problem-solving฀(A3฀Thinking,฀ •฀Component฀standardization฀and฀modularity provide answers to the sample questions below.
Dimension 2 –
PDCA,DMAIC) •฀Standard฀operating฀procedures฀(SOP) Once behavioral evidence is observed and
Continuous Process Improvement
•฀Value฀stream฀analysis •฀฀Tools฀of฀quality฀(i.e.฀pareto฀charts,฀ collected by examiners, it is rated with the
(350 Points Total) behavioral assessment scale.
•฀Total฀productive฀maintenance฀(TPM) storyboarding, cause-and-effect diagrams,
Guiding Principles: •฀Visual฀management 5-whys, or similar problem-solving 1. Is the current state and future state an
•฀5S฀methodology techniques) ongoing continuous cycle that is actively
Focus on process
•฀Supplier฀development •฀Benchmarking฀visit pursued with a visual, detailed action plan
Embrace scientific thinking
•฀Continuous฀improvement฀methodology •฀Right-sized฀equipment฀and฀facilities and timeline?
Flow and pull value
•฀Production฀Process฀Preparation฀(3P) •฀Production฀control฀boards 2. Are standards and work instructions simple
Assure quality at the source
•฀฀Quick฀changeover฀or฀setup฀reductions฀ •฀Red฀tags and visual for all work processes? Are they
Seek perfection
(SMED) •฀Floor฀tape updated with improvements routinely? Are
Supporting Concepts: •฀Error฀prooing/zero฀defects they followed with regard to timing and
he following are examples of questions that
•฀฀New฀market฀development฀and฀current฀

ASSESSMENT CRITERIA
examiners would be engaged in answering sequence?
No defects passed forward market exploitation and understanding during an organizational 3. Are managers and supervisors routinely
Stabilize processes •฀฀Quality฀function฀deployment,฀concurrent฀ assessment. Answers to these and other
questions asked of leaders, managers, and observing the actual process in order to
Rely on data and fact engineering, etc. for product development associates will provide examiners with gather factual data to understand the
Standardize processes •฀฀Theory฀of฀constraints฀–฀managing฀ an understanding of the culture of an problems and opportunities?
Insist on direct observation bottlenecks organization. his is not intended to be a
complete list; it is for guidance and learning 4. Are improvements made by following
Focus on value stream •฀฀Systems฀that฀make฀the฀customer/supplier฀ purposes. Examiners will also evaluate the a scientific method, PDCA, DMAIC, A3
Keep it simple and visual linkage visible throughout all stages of the frequency, duration, intensity, scope, and role thinking, etc.? Is there a coaching process
Identify and eliminate waste process and encourage/require regular of the behaviors that characterize the culture
of an organization. he behavior assessment in place for problem-solving? Are problems
Integrate improvement with work communication scale provided on page 49 of this document being addressed at the lowest possible
•฀฀Design฀for฀manufacturability,฀testing,฀ provides further understanding of this process. level of the organization?
The following are examples of systems that
drive behaviors and are aligned to principles maintenance, assembly — i.e. making it 5. Are problems, defects, and abnormal
as exempliied in the model (the irst portion simpler and easier to deliver best quality conditions signaled and stopped
of this document). Some tools are also listed. and quickest, most reliable response to the
his is not intended to be a check list, nor immediately at the point of occurrence and
is it all inclusive. Not all will be present in customer at the lowest cost the root cause pursued?
every organization, and organizations may •฀฀Involve฀suppliers฀and฀customers฀in฀
have others not listed here. hese are simply product/service design and continuous
examples and provide organizations some
guidance on what an assessment would improvement
evaluate. •฀฀Direct฀observation฀(go฀and฀see)฀and฀data-
based decisions and actions
•฀Cellular฀design/layout
•฀Variety฀reduction

46 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 47
 Tools: Questions:

•฀Daily฀management฀standard฀work฀sheets Open ended questions directed toward leaders,

manager, associates, and other observations
•฀Surveys provide answers to the sample questions
Dimension 3 – Enterprise Alignment Dimension 4 – Results
•฀Meetings below. Once behavioral evidence is observed
(200 Points Total) (200 Points)
•฀X-Matrix and collected by examiners, it is rated with the
behavioral assessment scale.
Guiding Principles: •฀Mission฀statement Guiding Principle:
•฀Vision฀statement 1. Is there a structured process for aligning
Create constancy of purpose •฀Goals Create value for the customer
goals and strategic priorities that is simple
Think systemically •฀Values and visible at all levels of the organization? Supporting Concepts:
•฀Business฀models 2. Do leaders hold to the guiding principles
Supporting Concepts:
he following are examples of questions that through hard times? Measures that matters
See reality examiners would be engaged in answering 3. Are support functions seamlessly integrated Align behavior with performance
Focus on long-term and understanding during an organizational to aid operations in creating value (process- Identify cause and effect relationships
Align systems
assessment. Answers to these and other
questions asked of leaders, managers, and based versus silo culture)?
he following are examples of systems that

ASSESSMENT CRITERIA
Align strategy associates will provide examiners with an 4. Do information systems provide direct drive behaviors and are aligned to principles
Standardized daily management understanding of the culture of an organization. flow of pertinent information that is as exempliied in the model (the irst portion
his is not intended to be a complete list; it is of this document). Some tools are also listed.
for guidance and learning purposes. Examiners easily accessible and usable across the
The following are examples of systems that his is not intended to be a check list, nor is
drive behaviors and are aligned to principles will also evaluate the frequency, duration, extended enterprise (no shadow systems it all inclusive. Not all will be present in every
as exempliied in the model (the irst portion intensity, scope, and role of the behaviors that or spreadsheets)? organization, and organizations may have oth-
of this document). Some tools are also listed. characterize the culture of an organization. ers not listed here. hese are simply examples
he behavior assessment scale provided on 5. Do leaders and managers have a standard
his is not intended to be a check list, nor and provide organizations some guidance on
is it all inclusive. Not all will be present in page 49 of this document provides further work process that enables them to monitor what an assessment would evaluate.
every organization, and organizations may understanding of this process. and maintain company alignment?
have others not listed here. hese are simply Systems:
examples and provide organizations some
guidance on what an assessment would
evaluate. •฀Voice฀of฀the฀customer
•฀Strategy฀deployment
Systems: •฀Communications
•฀Visual฀management
•฀Strategy฀deployment
•฀Management฀reporting
•฀Daily฀management
•฀Assessment Tools:
•฀Communication
•฀Customer฀relationship฀management฀(CRM) •฀Huddles
•฀Information฀technology •฀Control฀boards
•฀Accounting/inance •฀Score฀cards
•฀Measurement/scorecard •฀All฀employee฀meetings
•฀Reporting/accountability •฀Surveys

he following are examples of questions that

examiners would be engaged in answering
and understanding during an organizational

48 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 49
 assessment. Answers to these and other Examples of other supporting measures •฀฀Resource฀utilization฀(loor฀space,฀vehicles,฀ Examples of other supporting measures
questions asked of leaders, managers, and that could be provided are: etc.) (high utilization without adverse effects that could be provided are:
associates will provide examiners with an
understanding of the culture of an organiza- on responsiveness)
tion. This is not intended to be a complete •฀Internal฀quality฀(quality฀within฀the฀plant) •฀Return฀on฀investment •฀Success฀of฀new฀products
list; it is for guidance and learning purposes. •฀No฀disclosures฀(recalls฀later) •฀Revenue฀per฀employee฀hour฀worked •฀New฀contract฀awards
Results will also be evaluated based on stabil- •฀Designs฀that฀meet฀customer฀needs •฀Share฀of฀category
ity, trend/level, alignment, and improvement •฀Portfolio฀value฀(new฀products฀and฀existing)
usage. The results assessment scale provided •฀Unplanned฀scrap฀rate •฀Maintenance฀proiles฀(percent฀preventive฀ •฀Customer฀retention
on page 50 of this document provides further •฀Overall฀cost฀of฀quality for example) •฀Net฀promoter฀score
understanding of this process. •฀Process฀variation฀measures •฀Customer฀engagement฀in฀programs
•฀Other฀appropriate฀measures
•฀Customer฀returns •฀฀Measure฀of฀customer฀intent฀(awareness฀and฀
Questions:
•฀Supplier฀quality 4.C Delivery consideration)
Open ended questions directed toward lead- •฀Warranty฀cost฀ •฀Other฀appropriate฀measures
ers, manager, associates, and other observa- •฀Other฀appropriate฀measures
Strongly recommended measures:
tions provide answers to the sample questions 4.E Safety/Environment/Morale
below. Once behavioral evidence is observed •฀฀On-time฀delivery฀complete฀to฀customer฀
and collected by examiners it is rated with the 4.B Cost/Productivity
behavioral assessment scale. requested date Strongly recommended measures:

ASSESSMENT CRITERIA
Strongly recommended measures: •฀฀Total฀lead฀time฀(the฀time฀from฀customer฀
1. Are measures simple? Is there is a com- order to customer receipt, assuming no •฀฀Number฀of฀ideas฀per฀employee฀and฀degree฀

mon understanding of what is measured •฀Productivity฀of฀cash฀(cash฀low) finished goods inventory) of employee implementation of them

and why it is measured? Are measures •฀Key฀value฀stream฀margins •฀฀Processing฀cycle฀time฀(into฀process฀to฀out- •฀Near฀misses

directly tied to the organization’s overall •฀Turns฀(of฀what฀is฀produced) of process) •฀฀Survey฀(measure฀of฀employee฀trust฀and฀coni-

objective? dence in organization and management)

Examples of other supporting measures Examples of other supporting measures
2. Are measures used to drive improvements?
that could be provided are: that could be provided are: Examples of other supporting measures
3. Do performance measures drive the right that could be provided are:
behaviors? •฀Cost฀per฀unit •฀฀Time฀from฀or฀to฀supplier฀to฀receipt฀of฀ma-
4. Are tracking boards used routinely for •฀Labor฀hours฀per฀unit terials •฀Reportables
open discussion and feedback so that ad- •฀฀Labor฀productivity฀–฀organizational฀physi- •฀Customer฀awards,฀audits,฀and฀surveys •฀Waste฀to฀landill
justments can be made, and at what level? cal or financial output as compared to labor •฀฀Premium฀freight฀as฀percent฀of฀production฀ •฀Recycling
5. Are principles, systems, and tools aligned quantity costs •฀Emissions
in such a way that guiding principles help •฀฀Asset฀productivity฀(organizational฀output฀ •฀Mis-shipments •฀Energy฀consumption
align the systems to select appropriate compared to value of physical assets em- •฀Warranty฀response฀and฀service •฀Utilization฀of฀high฀potential฀talent
tools to achieve performance targets? ployed) •฀Reorder฀rate •฀฀Talent฀pipeline฀strength฀(succession฀planning)

•฀฀Inventory฀turns฀(organizational฀raw,฀work- •฀Field฀performance฀data •฀Other฀appropriate฀measures

4.A Quality
ing, and finished inventories compared to •฀Backorder฀data
Strongly recommended measures: relevant total cost or revenue) •฀System฀availability
•฀฀Cost฀structure฀(reduction฀in฀key฀cost฀cat- •฀Other฀appropriate฀measures
•฀Quality฀to฀the฀customer฀(defect-free฀delivery) egories)
•฀Finished฀product฀irst฀pass฀yield฀and/or฀rework •฀฀Energy฀productivity฀(physical฀or฀inancial฀
4.D Customer Satisfaction
output compared to energy cost or quantity)
Strongly recommended measures:

•฀Market฀share
•฀Customer฀surveys

50 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 51
 The intent of the assessment is to evaluate the
ASSESSMENT entire applying entity to determine the degree to
which the principles of operational excellence

AND SCORING are deeply embedded into the culture of the

entire organization. The assessment evaluates
results, as well as behavior. Each business
system will be assessed to the entire model,
all dimensions and principles therein. Three
dimensions of the model are scored based
on the behavioral assessment scale, cultural
enablers, continuous process improvement, and
enterprise alignment. The fourth dimension,
results, is scored using the results assessment

ASSESSMENT CRITERIA
scale. Both scales are presented in the next few
pages. Each dimension of the model will be
scored in the format below, the scoring matrix.
As represented in the scoring matrix below,
behavioral dimensions will be divided into
three main categories for assessment purposes:
Leaders, operations and support. There are
also two sub categories for assessment under
operations and support. They are managers and
associates. Weights have been assigned to each
category. The assessment will provide a gap
analysis that can be used to focus improvement
activities. It will provide a baseline of cultural
reality that will enable an organization to
move forward on its journey toward building a
culture of operational excellence.

The following illustration is representative of

how an organization is assessed, the weights
given and points assigned to each dimension. In
an efort to promote continuous improvement,
the feedback received by an organization
ater a site visit will provide a level that the
organization achieved in each area. his level
can be compared with the assessment scales
that are provided in this document.

52 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 53
 Behavior – Assessment Scale Articulating Behavior Behavior Assessment Scale
Operational Excellence (Standard)
Senior leadership, managers, and associates FREQUENCY – How oten do we see the
at the applying entity in each business system behavior? Level 1 Level 2 Level 3 Level 4 Level 5
will be assessed to determine the degree to Lenses
which their behaviors are in alignment with
0-20% 21-40% 41-60% 61-80% 81-100%
DURATION – Are we seeing the behavior for
the principles of operational excellence. Are the irst time, or have we seen
the leaders, managers, and employees doing Leadership focused Leadership aware of Leadership sets Leadership involved Leadership focused
this behavior for years? mostly on fire- other’s initiatives direction for in improvement on ensuring the
things that will result in the desired culture? fighting and largely to improve but improvement and efforts and supports principles of
Examiners will be looking for behaviors and absent from largely uninvolved supports efforts of the alignment of operational
INTENSITY – Is there a sense of passion and
other indicators that deine and describe the improvement others principles of excellence are
importance for the behavior efforts operational driven deeply into
culture of the organization. he diference
(i.e. to deviate would signal excellence with the culture and
between the current culture and the ideal systems regularly assessed
problems)?
culture, the Shingo standard, is the gap that is for improvement
identiied for improvement focus.
SCOPE – Do we see the behavior in just a
few cells/areas, or is it widespread Management Managers mostly Leaders and Managers focus on Management
Understanding the principles, throughout orientation toward look to specialists managers involved driving behaviors primarily focused
the organization, establishing and executing throughout the organization? getting results “at to create in developing through the design on continuously
Role
systems that support these principles, and all costs” improvement systems and of systems improving systems
selecting and utilizing appropriate tools and ROLE – Do we see appropriate focus on tools, through project helping others to to drive behavior
orientation use tools more closely aligned

ASSESSMENT CRITERIA
techniques guide an organization to achieve systems, and principles at each level of effectively with principles of
its business plans and goals. Scoring is based the organization, leaders, managers, operational
on examiners’ observations as they assess and associates? excellence
the facility. Examiners are trained to look for
behaviors and performance. Behaviors and he following list of descriptors is the basis Assoolates focus on Assoolates Assoolates trained Assoolates involved Assoolates
performance are taken into account in the for assessing Cultural Enablers, Continuous doing their jobs occasionally asked and participate in every day in using understand
scoring. Process Improvement, and Enterprise and are largely to participate on improvement tools to drive principles “the why”
Alignment. treated like an an improvement projects continuous behind the tools
expense team usually led improvement in and are leaders
by someone their own areas of for improving not
Statement of Purpose: he purpose of our outside their responsibility only their own work
assessment is to determine the degree to which natural work team systems but also
others within their
the behaviors in an organization are aligned value stream
with the principles of operational excellence.
Ideal behavior (Level 5) is represented as the
standard for operational excellence.
Frequency Infrequent Event-based Frequent Consistent Constant
Business systems that fully match the
Rare Irregular Common Predominant Uniform
descriptors would score at the top of the
indicated range.
Duration Initiated Experimental Repeatable Established Culturally Ingrained
Undeveloped Formative Predictable Stable Mature

Intensity Apathetic Apparent Moderate Persistent Tenacious

Indifferent Individual Local Commitment Wide Commitment Full Commitment
Commitment

Scope Isolated Silos Predominantly Multiple Business Enterprise-wide

Operations Processes
Point Solution Internal Value Stream Functional Value Integrated Value Extended Value
Stream Stream Stream

54 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 55
 Results – Assessment Scale
The following list of descriptors is the basis for Measures that match the descriptors would score at
assessing the measures in the results section. the top of the indicated range.

Results Assessment Scale

Level 1 Level 2 Level 3 Level 4 Level 5

Lenses
0-20% 21-40% 41-60% 61-80% 81-100%
Little to no evidence Has begun to stabilize Stable
of stability
Initiating predictability Predictable
Little to no
predictability Building maturity Long-term
Stability
Beginning to All levels have Mature
implement become comfortable
with the measures 4+ years
Unpredictable
2-3 years

ASSESSMENT CRITERIA
0-1 years

High level of attainment

Level is low Moderate improve-
considered world-class
ment in level
Trend is poor
Benchmarks constantly
Benchmarking is
raise the bar and are a
Little to no evidence industry-focused
Trend/Level function of process not
of goals
industry
Trends are mostly
Little evidence to positive to flat with
Positive trend with very
no evidence of some backsliding
few anomalies to
benchmarking
explain

Trend is well above

expectations

Isolated with Some areas aligned, All measures align to

inconsistent usage of other than operations corporate goals and
measures down to the lowest
Performance level
Little alignment measures aligned in
Alignment
operations Enterprise-wide
Strong silos extended value
Silos are beginning to stream
fall
No silos
Working toward
enterprise-wide
alignment

Little to no Regular feedback in Routine feedback to

systematic feedback some areas appropriate party

Sporadic feedback All areas do not Evidence of feedback

address feedback in all areas
Improvement Little evidence of systematically
goal setting some Almost all areas have
evidence in Many areas beyond goals that are realistic
operations operations have a and challenging
process to set goals

56 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 57
 that help develop skills in assessing alignment This would include significant restructuring
and also how to address misalignments by or reduction in operations
embedding your principles into your work and
management systems. •฀฀An฀ applying฀ entity฀ may฀ not฀ be฀ under฀
investigation by any government or private
In addition, participants will develop a entity for malfeasance
comprehensive working knowledge of The
Shingo Prize assessment criteria, which •฀฀An฀ applying฀ entity฀ must฀ be฀ able฀ to฀ show฀
Application Process
APPLICATION We have developed a three-tier award to
includes methods for assessment of the
progress an organization has made in its lean
measures that are specific to the applying
entity (divisional or corporate metrics are
transformation. By completing this training,
GUIDELINES enable organizations to challenge early on in
their transformation journey using the Shingo
assessment process to benchmark and improve
participants will learn how to use the Shingo
model and assessment criteria to complete
not sufficient). A minimum of three full years
of data is required. Most measures should
their organizations along the way. he Shingo internal self-assessment that will clearly show trends and levels and be tied to
assessment provides valuable feedback from identify areas for focus and improvement in
the entire organization. improvements. Examiners will be evaluating
an impartial third party. When utilized, it can
help accelerate the transformation process. level, trend, and the correlation between
Awards can be achieved at three levels: the For detailed information on this workshop improvement activities and the reported
Shingo Bronze Medallion, the Shingo Silver and other available training opportunities for
leaders and managers speciic to the Shingo results. It is expected that lean initiatives
Medallion, and he Shingo Prize.
model, please visit our website at www. will have an impact on the bottom line.
We encourage organizations to take the ShingoPrize.org or call our oice at (435) 797- Keep in mind that the Shingo assessment
opportunity to contact the oice of he Shingo 2279.
evaluates the entire applying entity to the
Prize for Operational Excellence well in advance
of the date they plan to apply. his enables us Although we will make every attempt to model as detailed below. If documentation
to help with the process, answer questions, and accommodate other languages, the oicial of three full years of measures is an issue,
provide training. Applying early leaves ample language of he Shingo Prize for Operational
Excellence is English. his means all training, it should be discussed with office of The
time to execute a plan for the application
process and to budget appropriately. materials, feedback, and communications Shingo Prize for Operational Excellence
are performed in English. Exceptions may before preparing the achievement report.
Because the Shingo model focuses on cultural be when we have an instructor that speaks a
preferred language. Further explanation of measures is
transformation, we strongly recommend
as many associates as possible go through provided below in Dimension Four – Results
the following training program before an Eligibility Requirements - An applying entity may be eligible to
organization applies. he workshop, Principles challenge as a large or small organization.
of Operational Excellence and Assessment, An entity interested in challenging for he
is available to the public, or for maximum Shingo Prize must meet the following eligibility Achievement qualifications are the same
efectiveness and participation, the workshop requirements: for each; and since organizations are not
can be delivered on-site at your facility. his competing against each other, reference
workshop has been critical for providing a •฀฀Applying฀entities฀may฀be฀from฀any฀industry฀
common understanding of the Shingo model to an organizations size is useful only
including, but not limited to: Services,
and the assessment process. he training for purpose of pricing and planning for

APPLICATION PROCESS
workshop is described below: manufacturing, healthcare, and the public
examination teams.
sector. An entity should have common
Principles of Operational Excellence ownership throughout the application (e.g. a Small Organization Large Organization
manufacturer and supplier, not operated or 250 people or less More than 250 people
Workshop participants will gain an
understanding of the Shingo model and the owned by the same company) should each 250 people or less if part
underlying principles behind he Shingo Prize of a larger organization
apply as a separate entity
philosophy and approach. Participants will
learn and gain experience in aligning your •฀฀An฀entity฀should฀be฀in฀business฀long฀enough฀ Not part of a larger
Government entities
organizational principles and core values with to establish stability organization
Large organizations may
your systems. here will be group activities •฀฀An฀applying฀entity฀may฀not฀be฀in฀bankruptcy฀ need to be broken up into
proceedings or knowingly considering such. multiple applications

58 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 59
 Questions regarding eligibility must be clariied Please do not include any conidential or
through the oice of he Shingo Prize for classiied information in the proile sheet,
Operational Excellence during the application as it may ultimately be posted to the Shingo
process, prior to writing and submitting the website or provided to the media. Sample
achievement report. he application and forms are available at www.ShingoPrize.org.
proile sheets help to evaluate eligibility.
he graph on the following page is an example
Re-Applications that might be included in the report.

Re-applications are encouraged for the Application forms should also be

accompanied by information pertaining
following circumstances: to dimension four, results. Results should
be provided in each section, quality, cost/
•฀฀No฀recipient฀status฀was฀awarded฀on฀the฀last฀ productivity, delivery, customer satisfaction,
application and safety/environment/morale. Please
provide enough data so that an analysis of
•฀฀Bronze฀ or฀ Silver฀ Medallion฀ status฀ was฀
stability is possible. Provide as much data
awarded on the last application, and the as possible especially if it is data that shows
entity wishes to attempt to advance its status performance before lean implementation
began. here is a minimum data requirement
(in general it will take at least two full years
of three years. Provide each measure at the
of intense focus and commitment between level of aggregation where it is most used by
challenges to show the improvements management (monthly at the least). Charts
representing measurement and improvement
necessary to advance)
are best displayed with the shortest interval Where to Apply application fee of $6,000 for large organizations
•฀฀The฀ Shingo฀ Prize฀ was฀ awarded฀ and฀ the฀ possible. Averaging over months, quarters, or $3,000 for small organizations must be
entity is ready to renew its award status, or years may mask information that could Applications, proile sheets, and other submitted with the achievement report. For
otherwise be very useful. If acronyms are documents must be e-mailed to Shaun Barker payment information, please call the oice of
which expires after five years for The Shingo
used, please explain each along with the at shaun.barker@usu.edu and Ha Chau at he Shingo Prize for Operational Excellence at
Prize recipients and three years for Bronze calculation used for each measure. (435) 797-2279.
ha.chau@usu.edu. Please contact Shaun with
and Silver Medallion recipients any questions you may have via email or by
he application, proile sheet, and applying phone at (435) 797-3815. Site Visit Assessments
Re-applications must relate to substantially entity’s results will be processed as received
the same entity as the original application. A and should be approved prior to writing the Site visit assessments will be scheduled as soon
achievement report. his ensures there are no
Achievement Reports
new application and achievement report must as possible ater a site visit is awarded based
be submitted. he achievement report for re- eligibility issues and that we have addressed all on the achievement report review. Candidates
Achievement reports should be written ater the
application should highlight the achievements of the applicant’s questions and concerns early being considered for any level of recognition
application is approved, ensuring an applying
made since the last challenge supporting a bid on. A completed and approved application through the oice of he Shingo Prize for
entity is eligible to proceed. Achievement
to re-challenge. Please use the re-application form is due before the achievement report is Operational Excellence will receive a site visit
reports will be accepted any time throughout
form that is available at www.ShingoPrize.org. sent. A notice of eligibility conirmation will be assessment by an examination team based on
the year. Achievement reports not received in
sent to the applying entity. Please note that the inal review of the achievement report. An
time to be processed before the Annual Shingo
Application Forms and Profile Sheets applying entity’s results sections are not being average large facility will require ive to eight
Prize International Conference and Awards

APPLICATION PROCESS
analyzed at this point in the process. examiners.
Ceremony (usually held in April or May) will
An application form and proile sheet should be recognized at the following year’s ceremony.
be sent to the oice of he Shingo Prize for here are no fees due at this point in the process. Site visits will be scheduled throughout the
Applicants will be advised of an approximate
Operational Excellence as soon as an applicant process time-table based on the date the year and are dependent on the applicant’s
decides to pursue an award at any level, even achievement report is received and that the achievement report submission date and
if the intended achievement report submission work is in-process. If an application cannot be availability of the site and examiners for
date is up to one year out. he intent of the processed in time for the next Conference and an assessment. Site visits not scheduled in
application is to help us plan our workload Awards Ceremony the application will become time to process before the Annual Shingo
and assist the applicant through a smooth part of the following year’s applications. Please Prize International Conference and Awards
process. A two-page (maximum) company submit the achievement report early if you are Ceremony (usually held in April or May) will
proile sheet should be formatted according to concerned about a speciic conference date. An be recognized at the following year’s ceremony.
examples provided at www.ShingoPrize.org.

60 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 61
 he primary objective of the site visit Applicants are asked not to divulge proprietary Application Timeline Decisions made by the committee are final
assessment is to verify, clarify, and amplify information regarding products, processes, or and not subject to appeal. Applicants will
the information contained in the achievement sensitive inancial results. Our interest is in The Shingo Prize application and assessment
receive a written feedback report after
report. In terms of clariication, companies operational excellence, and we do not require process includes the following six steps:
should be prepared with updated measures this information. Please do not include any status notification.
reported in their achievement report during conidential information in your achievement 1. An application form, profile sheet, and
the site visit assessment. report or other documents sent to the oice of results should be sent to the office
6. After an award level has been determined,
he Shingo Prize for Operational Excellence. of The Shingo Prize for Operational
Applicants will be notiied whether or not a Please do send information you feel will be a recipient may invite, at the recipient’s
site visit will be awarded approximately 30 helpful to examiners in assessing the cultural Excellence as soon as an applicant has
expense, a member of the Shingo staff to
days ater the achievement report is received. transformation of your organization. decided to pursue The Shingo Prize. present the award at a local celebration.
Applicants awarded a site visit will be
contacted to make arrangements. Applicants Preferred timing: One year before intended This is best done after the public
Recipient Recognition Opportunities
awarded a site visit are required to pay an achievement report submittal recognition occurs, but if the time between
additional site visit fee. he cost of each site Once an award level is determined, a recipient the recognition and the Shingo Conference
visit assessment is based in part on the nature, 2. Achievement reports are submitted and
has many opportunities to be recognized for its is too great, an organization may schedule
size, and location of the applying entity and the achievements. All recipients from around the reviewed. Achievement reports should be
number of examiners needed. Fees generally world will be recognized oicially and publicly it to suit their purposes. All recipients from
written according to the instructions found
average between $10,000 and $20,000 for a at the Annual Shingo Prize International around the world will be recognized publicly
single organization utilizing four to eight site in the “Writing the Achievement Report”
Conference and Awards Ceremony (usually held at the Annual Shingo Prize International
visit examiners. Small organizations may have in April or May). Recipients will be recognized section (see below). Application and re-
lower fees depending on the size of the facility, Conference and Awards Ceremony. Official
through press releases and announcements on application fees are due along with the
the product or service, and the number of social media sites. he Shingo Prize recipients recognition will be given at the Annual
achievement report (see fees section below).
examiners needed to evaluate the facility. he are posted on he Shingo Prize website for International Conference and Awards
invoice is for a site visit fee and will not be ive years, and Shingo Silver Medallion and Approximate lead time for achievement report Ceremony.
broken down in any more detail than the total Bronze Medallion recipients are posted for
fee. International applications will be subject review: 30 days
three years. Recipient companies may tell he times given are approximate and subject to
to additional fees to cover additional expenses. their transformational story through potential 3. Achievement reports with appropriate change depending on many factors, including
hese fees will be determined during the speaking opportunities at he Shingo Prize recommendations from examiners workload in the oice of he Shingo Prize
application eligibility process. International conferences, and they can also gain exposure
will receive a site visit assessment. for Operational Excellence. Please do not use
applications will be expected to pay the by providing guided tours for he Shingo Prize these times to estimate whether or not your
estimated site visit fee prior to the visit. for Operational Excellence. application will be completed in time for a
Preferred timing for a site visit: 45 to 60 days speciic Awards Ceremony. he staf at the oice
Site visit fees within North America will be
after applicant notiication of he Shingo Prize for Operational Excellence
invoiced and sent to the applying entity within
will advise you if timing is in question upon
30 days of the site visit. Payment is due upon 4. Based on the site visit assessment results, your application submittal.
receipt. the Board of Examiners will recommend
All examiners are required to sign a non- the applicant to the Executive Committee Fees
disclosure agreement that is kept on ile at for: no award level, the Shingo Bronze Application Re-Application Site Visit
the oice of he Shingo Prize for Operational Medallion, the Shingo Silver Medallion, or
Excellence. Examiners are assigned in such a Small Organization Small Organization $10,000-$20,000
The Shingo Prize. Applicant will be invoiced $3,000 $3,000

APPLICATION PROCESS
manner that conlicts of interest are avoided.
Each applicant will receive a list of examiners a site visit examination fee directly after Large Organization Large Organization $10,000-$20,000
who will be involved on a site visit assessment. the visit (see approximate fees below). $6,000 $6,000
he applying organization will be asked
for written authorization for all examiners Fees are due with the achievement report.
Approximate lead time for the feedback report: Applicants will be invoiced within 30 days ater
that participate on the site visit assessment.
Organizations that have representatives on 30 days the site visit. he invoice is for a site visit fee
he Shingo Prize Board of Governors or Board and will not be broken down in any more detail
5. The Executive Committee reviews the than the total fee. International applications
of Examiners are allowed to challenge, but
their representative will be disqualiied from recommendations. Organizations will be will be subject to additional fees. hese fees will
participation in the assessment, review, and notified of their status in approximately be determined during the application eligibility
selection processes. process and an estimated fee will be collected
30 days after the site visit assessment. before a site visit occurs.

62 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 63
 how the organization selects what to measure he achievement report should include, in the
and how measurements are used to drive irst pages before the table of contents, a copy
improvement. It should also show results of the of the application form.
lean implementation and where the applicant
stands relative to best-in-class. Include he report must be printed on 8½ x 11-inch
information that helps examiners understand paper using a ixed-pitch font of 11 characters
how the cause-and-efect relationship per inch. Sheets should be double-sided,
The achievement report is the document for between measures and results is taught to and single spaced. he report is generally limited
WRITING THE determining whether or not an applicant is
awarded a site visit. A Shingo Prize applicant
understood by all associates. It is important
that results in the achievement report are
to a maximum length of 50 printed pages.
he report should be coil bound. he oicial
understandable and have explanations where language of the achievement report is English.
ACHIEVEMENT must prepare an achievement report that
demonstrates how the organization has
transformed its culture based on the principles
needed. Please refer to dimension four, results,
in the model and guidelines for complete Ten (10) hard copies and one (1) digital copy on
details on measures. a CD or thumb drive of the achievement report,
REPORT of operational excellence represented in the
Shingo model. The achievement report should
Applicants are asked not to divulge proprietary
meeting all above-stated criteria and format
requirements, can be turned in up to one year
also address frequency, intensity, duration,
scope, and role of the behaviors that are information regarding products, processes, or ater the application has been approved.
apparent in the current culture of the applicant. sensitive inancial results. Our interest is in
operational excellence, and we do not require
The achievement report should be written this information. Please do not include any Achievement Report Format
according to the format below. This format conidential information in your achievement
focuses on each dimension of the model and report or other documents sent to the oice of While writing the achievement report,
should include information about individual he Shingo Prize for Operational Excellence. remember to be speciic about the business
business systems and their achievements. Please system you are referring to (i.e. senior
note that if a site visit is conducted, all business Keep in mind that this report is being reviewed leadership, customer relations, product/
systems will be assessed to all dimensions of by a team of examiners from a diverse group service development, operations, supply,
the model in much the same way. The business of industries. hey are very experienced in and management support processes). he
systems include senior leadership, customer lean but most likely are not experienced with achievement report should discuss the
relations, product/service development, your organization. Please do not assume that assessment criteria detailed earlier in this
operations, supply, and management support acronyms and organizational language will be document. Principles, systems, and tools have
processes. understood. Flow, clarity, and conciseness of been clearly deined for each dimension of the
the report are important; generally, 50 pages model.
The achievement report should follow the is the maximum length. he intent of this
outline provided. Each dimension should report is to tell the examiners your cultural Introduction
address the application of principles, systems transformation story as simply and eiciently
(selection, development, and efectiveness), as possible. Please make sure that if photos are
he introduction allows an organization to
and choice and use of tools and techniques. included in the report, they are high impact,
highlight some of its strengths and share a
he required measures under Dimension legible, and of good quality.
brief company overview. he company proile
Four – Results are considered essential for all sheet may be used in this section, see www.
organizations. Results should be addressed in he achievement report is about the applying
ShingoPrize.org for examples.
terms of stability, trend and level, alignment, entity, not the overall organization. Please
and improvement. An applicant should also limit references to the overall organization

APPLICATION PROCESS
include any measurements that assist in to areas that are applicable and critical
controlling and improving basic business (i.e. if you are trying to show alignment of
systems: Senior leadership, customer relations, strategy or constancy of purpose). Measures
product/service development, operations, should be speciic to the applying entity.
supply, and management support processes. Reports with excessive reference to the
Applicants should explain and support their overall organization may be returned to the
choice of measures. It is important that all ive applicant. Examiners cannot evaluate an
categories of measurements are addressed. he applicant based on information about an
intent of this dimension is for the applicant to entire organization when the applying entity
provide information to the examiners about is really a sub-set.

64 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 65
 Include the following items in the report: Discussion of each measure should contain:

•฀฀Describe฀ your฀ organization’s฀ philosophy฀ •฀฀A฀ clear฀ deinition฀ of฀ the฀ measure฀ and฀ its฀
toward creating value as it relates to the computation
principles in the Shingo model •฀฀The฀trend฀and฀level฀of฀performance฀in฀each฀
•฀฀Provide฀ the฀ measures฀ used฀ in฀ each฀ area as compared to benchmarks or goals
measurement area defined above. Report •฀฀Why฀the฀measure฀is฀the฀appropriate฀measure฀
anything that is used effectively to drive for that subsection or category
improvement in the organization •฀฀Any฀ major฀ technical฀ adjustments฀ that฀ have฀
•฀฀The฀ measures฀ will฀ be฀ submitted฀ with฀ the฀ been made to the measure
application and profile sheet. This section in •฀฀How฀ the฀ measure฀ is฀ used฀ to฀ stimulate฀
the achievement report will be significantly improvement
Dimension 1 – Dimension 3 – more detailed than the measures that were •฀฀What฀ key฀ activities฀ “move฀ the฀ dial”฀ on฀ that฀
Cultural Enablers Enterprise Alignment submitted with the application. All categories metric
In this dimension an organization should In this dimension an organization should
in this section must be addressed either
describe its cultural enablers as they relate describe its lean culture as it relates to the Please provide enough data so that an analysis
to the principles in the Shingo model. Care principles in the Shingo model. Care should with a measurement and the discussion of stability is possible. Provide as much data
should be taken to suiciently describe how be taken to suiciently describe how your points below or a full explanation of why a as possible; especially, if it is data that shows
your organization’s systems and practices organization’s systems and activities drive performance before lean implementation
particular category is not measured
drive principle-based (ideal) behavior in each principle-based behavior in each business began. Provide each measure at the level
subsection. Clearly discuss examples of tools, system. Clearly discuss examples of tools, of aggregation where it is most used by
systems, and principles in each of the business systems, and principles. management (monthly at the least). It is possible
system. that examiners may ask for a less aggregated
version of speciic data. Charts representing
measurement and improvement are best
displayed with the shortest interval possible.
Averaging over months, quarters, or years may
mask information that could otherwise be very
useful. When data is obviously collected and
used weekly, don’t average it into monthly or
annual igures for the purposes of this report.
Please use appropriate scales. Provide the data
as you would normally use it.

All measurement categories must be covered

Dimension 2 – Dimension 4 – – quality, cost/productivity, delivery, customer
Continuous Process Improvement Results satisfaction and safety/environment/morale –
Describe your organization’s philosophy

APPLICATION PROCESS
here are ive main internal measurement and include a minimum of three years of data.
toward applying lean principles and concepts. areas for operational excellence: quality, cost/
At Toyota, this would be a description of productivity, delivery, customer satisfaction, Applicants are asked not to divulge proprietary
the Toyota Production System. Continuous and safety/environment/morale. Each area information regarding products, processes, or
process improvement will be evaluated in has its own strongly suggested measures and sensitive inancial results. Our interest is in
part based upon how well your organization supporting measures detailed earlier in this operational excellence, and we do not require
implements its philosophy across all the document. this information. Please do not include any
business systems. conidential information in your achievement
report or other documents sent to the oice of
he Shingo Prize for Operational Excellence.

66 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 67
 Shingo Silver Medallion
Lundbeck, Supply Operation & 2009
Engineering (Valby and Lumsas site) 402D Electronics Maintenance Group,
Valby, Copenhagen, Denmark Warner Robins Air Logistics Center,
OP for L
Robins Air Force Base
The Shingo Prize
E X E R AT I O N A E
CELLENC

Remy Components, S. de R.L. de C.V. Warner Robins, GA, USA

2012 San Luis Potosi, Mexico
Pentair Technical Products Carestream Health Inc., Rochester
Reynosa, Tamaulipas, Mexico Rexam Beverage Can South America- Finishing
2012 2009 Recife Ends Rochester, NY, USA
Rexam Beverage Can, Aguas Claras Autoliv Airbag Module Facility 2011 Cabo Sto Agostinho, Brazil
Cans Ogden, UT, USA Autoliv (China) Steering Wheel Co., EFI Electronics by Schneider
Ltd. Tobyhanna Army Depot (AN/MST- Electric
Aguas Claras, Rio Grande do Sul/Viamao,
Shanghai, Shanghai, China T1(V)), MiniMutes Salt Lake City, UT, USA
Brazil Autoliv Inflator Facility
Tobyhanna, PA, USA
Brigham City, UT, USA Barnes Group Inc. Acting Through HID Global
2011 Its Barnes Aerospace OEM Strategic 2010 North Haven, CT, USA
Goodyear do Brasil Produtos de Borracha E-Z-GO Business Unit Autoliv Steering Wheels Mexico AQW
Ogden, UT, USA S. de R.L. de C.V. Lockheed Martin Missiles and Fire
Ltda Augusta, GA, USA
El Marques, Queretaro, Mexico Control, Camden Operations
Americana, Sao Paulo, Brazil DJ Orthopedics de Mexico S.A.de East Camden, AR, USA
Guanajuato Manufacturing Complex North C.V. Goodyear Tire & Rubber
US Synthetic Plant Tijuana, Baja California, Mexico Lawton, OK, USA Valeo Sylvania Iluminacion
Orem, UT, USA Silao, Mexico Queretaro, Mexico
Hi-Tech Gears Ltd.
Manesar, Gurgaon, Haryana, India
2010 Interiores Aéreos S.A. De C.V. Gulfstream
John Deere, Power Products Aerospace
Greeneville, TN, USA Mexicali, Mexico
Shingo Bronze Medallion
Lycoming Engines
Williamsport, PA, USA Rexam Plastic Packaging do Brasil BAE Systems - Samlesbury
Jundiai, Sao Paulo, Brazil Blackburn, Lancashire, UK

OP for L
E X E R AT I O N A E
CELLENC US Army Armament Research, Baxter Healthcare
Development & Engineering Center Los Angeles, CA, USA
2012 Picatinny Arsenal, NJ, USA
Johnson Controls Lerma Plant Fleet Readiness Center Southeast,
The Shingo Prize is awarded to organizations that demonstrate a culture where Lerma, Mexico 2010 TSRS Shop
principles of operational excellence are deeply embedded into the thinking and Letterkenny Army Depot, Patriot Jacksonville, FL, USA
Remy Automotive Brasil Ltda.
behavior of all leaders, managers and associates. Missile
Brusque, Santa Catarina, Brazil
Chambersburg, PA, USA Red River Army Depot, Up-Armored
Performance is measured both in terms of business results and the degree to 2011 High Mobility Multipurpose Wheeled
which business, management and work systems are driving appropriate and Denver Health, Community Health Tobyhanna Army Depot, AIM-9M Vehicle (UAH)/HEAT
optimum behavior at all levels. Leadership is beginning to focus on insuring that Services Sidewinder Missile Texarkana, TX, USA
principles of operational excellence are deeply imbedded into the culture and Denver, CO, USA Tobyhanna, PA, USA
regularly assessed for improvement. Ultraframe UK Ltd.
Letterkenny Army Depot, Aviation 2009 Clitheroe, Lancashire, UK
Ground Power Unit Aviation Center Logistics Command
Chambersburg, PA, USA and Army Fleet Support, Lowe Army Visteon Interamerican Plant
Heliport Apodaca, N.L., Mexico
Leyland Trucks Ltd Ft. Rucker, AL, USA
Leyland, Lancashire, UK

68 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines 69
 The Shingo Research
and Professional
Publication Award
2012 On The Mend Follow the Learner
The Toyota Way to Lean Leadership John Toussaint Dr. Sami Bahri
Jeffrey K. Liker Roger A. Gerard
The Lean Manager
Gary Convis Michael Balle, Freddy Balle
Transforming Health Care: Virginia
The Toyota Way to Continuous Im- Mason Medical Center’s Pursuit of the Toyota Under Fire
provement Perfect Patient Experience Jeff Liker
Jeffrey K. Liker Charles Kenney
Toyota Kata
James K. Franz
Work That Makes Sense: Operator- Mike Rother
Lean principles, learning, and knowl- Led Visuality
Lean IT
edge work: Evidence from a Software Dr. Gwendolyn D. Galsworth
Mike Orzen
Services Provider
The Remedy: Bringing Lean Thinking Steve Bell
Bradley R. Staats
out of the Factory to Transform the
David J. Brunner Stories From My Sensei
Entire Organization
David M. Upton Steve Hoeft
Pascal Dennis
Building a Lean Fulfillment Stream 2010
2011
Robert Martichenko Creating Lean Dealers
Lean Enablers for Systems Engineering
Kevin von Grabe David Vrunt
Bohdan W.Oppenheim
John Kiff
Lean Office and Service Simplified Earll. M. Murrnan
Drew Locher Deborah A. Secor
Breaking Through to Flow
CONTACT INFORMATION
Liquid Lean: Developing Lean Culture Toast Value Stream Mapping Ian Glenday
The Shingo Prize for Operational Excellence
in the Process Industries Bruce Hamilton Jon M. Huntsman School of Business
Raymond C. Floyd The Kaizen Event Fieldbook
Mark Hamel Utah State University
3521 Old Main Hill
Logan, UT 84322-3521
The Shingo Research and Professional Publication Award recognizes and (435) 797-2279
promotes research and writing regarding new knowledge and understanding (435) 797-3440 FAX
of lean and operational excellence. Awards are given in four categories: (1) www.ShingoPrize.org
books (monographs), (2) published articles, (3) case studies, and (4) applied
For questions or comments contact:
publications/multimedia programs.
Shaun D. Barker
Director of Operations and Assessment
Research or publications submitted should provide new theory or novel
shaun.barker@usu.edu
application. Reviews, re-statements, textbooks, and/or edited versions will
generally not be considered. Application forms are available online at www.ShingoPrize.org

70 THE SHINGO PRIZE for OPERATIONAL EXCELLENCE | Model & Application Guidelines
 435-797-2279
www.shingoprize.org