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® Recognizing Business Excellence in the United States, Canada and Mexico Application Guidelines “Considered the Nobel prize of manufacturing, the Shingo Prize for Excellence in Manufacturing...awards...sites that have achieved dramatic performance improvements...” —Business Week Shingo Prize

Shingo Prize Business Guidelines

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Page 1: Shingo Prize Business Guidelines

®

Recognizing Business Excellence in the United States, Canada and Mexico

Application Guidelines

“Considered the Nobel prize of manufacturing, the Shingo Prize for Excellence in Manufacturing...awards...sites that have

achieved dramatic performance improvements...”—Business Week

Shingo Prize

Page 2: Shingo Prize Business Guidelines

Dear Lean Leader:

The Shingo Prize for Excellence in Manufacturing was established in 1988 to promote excellence in business and manufacturing. The vision of the Shingo Prize today is to be the “Nobel prize” in business, grounded in Lean Enterprise management leading to world-class and globally competitive business. A total of 134 plants or companies have been recognized over 18 years. A manufacturing survey recently reported that only 2 percent of the plants reported as having achieved world-class status. Thus, the evidence suggests that there is still considerable opportunity for achieving operational excellence at the level of Shingo Prize recipients to control a company’s destiny in the global economy. We must maintain and grow our manufacturing in North America.

In 2004, the Shingo Prize program has been expanded in scope to include state-level recognition programs. Over 25 states in the United States and Mexico have been franchised to conduct “state-level” programs.

In 2005, the Shingo Prize program was expanded to include a Public Sector category for “maintenance, repair and overhaul” (MRO) manufacturing activities of the public sector, primarily for the Department of Defense depots. 2006 applications have increased 140 percent.

The Shingo Research Prize received and recognized a record number of books. An indication of the growing interest and awareness of lean.

An alliance of three associations--Society for Manufacturing Excellence, Association for Manufacturing Excellence and Shingo Prize for Excellence in Manufacturing—have created the most demanding professional certification in the marketplace. The Lean Certification program requires training of 80 hours for Lean Bronze, 160 hours for Lean Silver and over 200 hours for Lean Gold; a portfolio of Lean experience and mentoring at each level; and a knowledge test culminating in an interview with peers at the Gold level. We believe that this certification will become the industry standard for Lean Certification. In 1988, Shigeo Shingo stated at Utah State University, that the “defense budget could be cut 30 percent without cutting national defense.” Most lean practitioners would suggest that a 30 percent reduction in waste due to a lean transformation would be a modest goal. The late Peter Drucker wrote, “There is nothing so useless as doing efficiently that which should not be done at all.” And Dr. Shingo wrote, “Those who are not dissatisfied will never make any progress.” It is toward Shingo’s objective of cutting waste and achieving perfection that the Shingo Prize was created.

Please visit us at www.shingoprize.org.

Respectfully promoting lean leadership to maintain and grow North American business,

Ross E. Robson, Ph.D. Executive Director

Page 3: Shingo Prize Business Guidelines

Executive Committee

Board of Governors

The Board of Governors consists of leading representatives of businesses, professional organizations, and academic institutions. The Board oversees fund raising and other financial activities, guides Prize governance, establishes Prize guidelines, and ratifies Prize recipients, based upon the recommendations of the Board of Examiners. Members are chosen based on their expertise and willingness to endorse and promote the principles and mission of the Shingo Prize.

• Russ Scaffede, Vice President of Manufacturing, Tiara Yachts, a Division of S2

Chair

• Anne Stevens, Executive Vice President, Ford Motor Company and Chief Operating Officer,

The Americas Vice Chair

• George Koenigsaecker, President, Lean Investments, LLC Past Chair

• Ross E. Robson, Executive Director, Shingo Prize, Utah State University

• Carl Thor, President, JarrettThor International Chair, Business Board of Examiners

Board Members

• Paul Brent, General Director - Lean Enterprise, Engineering & Manufacturing Operations, Global Supplier Quality & Development, Delphi Corp.

• Jerry Bussell, Vice President of Operations, Medtronic Xomed

• Art Byrne, Operating Officer, J.W. Childs Associates

• Douglas F. Carlberg, Chairman of the Board, M2 Global Technology, Ltd.

• Gary Convis, President, Toyota Motor Manufacturing, Kentucky

• Carolyn Corvi, Vice President-General Manager, Airplane Production, The Boeing Company

• Timothy A. Costello, President & CEO, Builder Homesite

• Michael N. DaPrile, Executive Vice President, SW Manufacturing and Toyota TMMNA

• Bruce Hamilton, President, Greater Boston Manu-facturing Partnership

Vice Chair, Business Board of Examiners

• Thomas G. Hartman, Senior Director of Queretaro Operations, Autoliv North America

• Michael Joyce, Corporate Vice President, LM21 Operating Excellence, Lockheed Martin

• Art Learmonth, President, Maytag Appliances, Maytag

• David J. Logozzo, President, Lean Enterprise Partners

• John E. Marushin, Director, APMC, Alcoa

• Rusty Patterson, Vice President, Customer & Supply Chain Institute, Raytheon

• Dennis Pawley, Chairman & CEO, Pawley Enter-prises, LLC and Former Executive Vice President of Manufacturing, DaimlerChrysler

• Peter N. Riley, Senior Vice President, Textron, Inc.

• David Rowlands, Vice President, Six Sigma and Quality, Xerox Corporation

• Richard J. Schonberger, President, Schonberger & Associates, Inc.

• John Shook, President, TWI-Network and Senior Advisor, Lean Enterprise Institute

• Harold M. Simons, Executive Vice President-Man-ufacturing, O.C. Tanner Company

• John Van Gels, Vice President of Operations, Integrated Defense Systems, Boeing

• Alejandro von Rossum, President, Chemical Division, Grupo CYDSA, Monterrey, Mexico

Page 4: Shingo Prize Business Guidelines

2006 Business Recipients

2006 Business Finalists

Shingo Prize Business applicants that receive high scores during the Achievement Report evaluation process are awarded a site visit examination by the Board of Examiners. Finalists are determined by the Board of Governors based on their site visit examination score.

Freudenberg-NOK, Components PlantBristol, New Hampshire

John Deere, Power ProductsGreeneville, Tennessee

Rockwell Collins, Coralville OperationsCoralville, Iowa

Scotsman Ice Systems, Fairfax OperationFairfax, South Carolina

Promontory FacilityPromontory, Utah

Newton, Massachusetts

Milwaukee OperationsOak Creek, Wisconsin

Plant 58 DelcoChihuahua, Mexico

Vista PlantVista, California

Plant 65Queretaro, Mexico

Apodaca N.L., Mexico

Mexico City PlantTultitlan, Estado de Mexico

Plant 66Queretaro, Mexico

City of Industry, California

Page 5: Shingo Prize Business Guidelines

2005 RecipientsAutoliv Tremonton Facility, Tremonton, UT

BAE Systems, Fort Wayne Operations, Fort Wayne, IN

The Boeing Company, Apache Longbow Program, Mesa, AZ

The Boeing Company, Weapons ECC, St. Charles, MO

Boston Scientific Corporation, Stent and Balloon Catheter Plant, Maple Grove, MN

Celestica de Monterrey, S.A. C.V., Monterrey, Mexico

Delphi Ensamble de Cables y Componentes, Guadalupe II Plant 84, Guadalupe, Mexico

Delphi Packard Electric Systems, Vienna Molding Operations, Vienna, OH

Delphi Sistemas de Energia, Saltillo Operations Plant 39, Saltillo, Mexico

GDX Automotive, New Haven, MO

Hearth & Home Technologies, Lake City, MN

Lockheed Martin, Archbald, PA

Takata Seat Belts, Inc., Equipo Automortiz Americana, S.A. de C.V., Agua Prieta Plant, Agua Prieta, Mexico

Takata Seat Belts, Inc., Equipo Automortiz Americana, S.A. de C.V., Monterrey Plant 1, Apodaca, Mexico

Takata Seatbelts, Inc., Equipo Automortiz Americana, S.A. de C.V., Monterrey Plant 2, Apodaca, Mexico

2004 RecipientsArvinMeritor, Inc., Gladstone Plant, Columbus, IN

Delphi Centro Tecnico Herramental S.A. de C.V., Plant 98, Ramos Arizpe, Coahuila, Mexico

Delphi Kokomo Operations, Plant 7 & 9, Kokomo, IN

Delphi Meoqui Plant, Meoqui, Chihuahua, Mexico

Delphi Empresas Ca-Le de Tlaxcala, Tetla, Tlaxcala, Mexico

Delphi Delnosa Plants 5 & 6, Reynosa, Tamaulipas, Mexico

Delphi Parral Plant 50, Hidalgo Del Parral, Chihuahua, Mexico

Recent Business Rcipients

Delphi Sistemas de Energia, S.A. de C.V., Chihuahua, Chihuahua, Mexico

Delphi Casas Grandes Plant, Nuevo Casas Grandes, Chihuahua, Mexico

Maytag Jackson Dishwashing Products, Jackson, TN

Raytheon Missile Systems, Tucson Missile Operations, Tucson, AZ

TI Automotive, Cartersville, GA

2003 RecipientsSmall Business Recipient Companies

Affordable Interior Systems, Inc., Hudson, MA

Large Business Recipient Companies

Autoliv ASP, Airbag Module Facility, Ogden, UT

Autoliv ASP, Inflator Facilities, Brigham City & Ogden, UT

Delphi Automotive Systems, Juarez Operations, Juarez, Chih, Mexico

Delphi Delco Electronics, Delnosa Operations Plant 1-4, Reynosa, Mexico

Delphi Delco Electronics, Flint Operations, Flint, MI

Delphi Packard Electric, Warren Plant 19, Warren, OH

Lockheed Martin Aeronautics, F-117 Plant, Palmdale, CA

Medtronic Xomed, Jacksonville, FL

Merillat Industries, Atkins, VA

Symbol Technologies Inc., Holtsville, NY, McAllen, TX & Reynosa, Mexico

The HON Company, Cedartown, GA

TI Automotive, Caro, MI

TI Automotive, New Haven, MI

Vibracoustic, NA, Manchester, NH

Page 6: Shingo Prize Business Guidelines

James F. AlbaughExecutive Vice President, The Boeing Company, President and Chief Executive Officer, Integrated Defense Systems

Joji Arai Secretary General, International Productivity Service

J.T. Battenberg Chairman & Chief Executive Offi-cer, Delphi Corporation

Norman Bodek Former President, Productivity, Inc.

Guy D. BriggsVice President, General Motors and General Manager, GM North America Vehicle Manufacturing

Jerry BussellVice President, Global Operations, Medtronic Xomed

Arthur P. Byrne Operating Partner, J.W. Childs Associates

Gary L. Convis President, Toyota Motor Manufac-turing, Kentucky

Tim CostelloChairman & CEO, Builder Home-site Inc.

Dr. Stephen R. Covey Co-founder/Co-chairman, FranklinCovey Company

Mike DaPrile Executive Vice President, SW Man-ufacturing and Toyota TMMNA

Earnest W. Deavenport, Jr. Former Chairman, National Asso-ciation of Manufacturers and Chair-man & CEO, Eastman Chemical

Frank J. EwasyshynExecutive Vice President - Manufac-turing, Chrysler Group

Shingo Prize Academy

The Shingo Prize Academy consists of individuals who are actively involved in manufacturing and who have distinguished themselves in the area of manufacturing excellence. Members of the Shingo Prize Academy serve as promotional ambassadors for the Shingo Prize and its activities.

Orest J. FiumeFormer Vice President, Finance, The Wiremold Company

Louise L. FrancesconiPresident, Raytheon Missile Systems

Dr. Eliyahu M. Goldratt Founder, Goldratt Institute

Bruce Hamilton President, Greater Boston Manufac-turing Partnership

Masaaki Imai Chairman, KAIZEN Institute of Japan

Jerry J. Jasinowski President, National Association of Manufacturers

Brian S. JonesPresident & CEO, Nypro, Inc.

Michael Joyce Vice President, LM21 Operating Excellence, Lockheed Martin

George Koenigsaecker President, Lean Investments, LLC

Peter Lawson Vice President, ManufacturingFord Motor Company of Australia

David J. LogozzoPresident, Lean Enterprise Partners

Hajime OhbaPresident, TSSC, Inc. (Toyota Supplier Support Center)

Rodney O’Neal President & Chief Operating Officer, Delphi Corporation

James J. Padilla Chief Operating Officer, Ford Motor Company

Dennis K. Pawley Chairman & CEO, Pawley Enter-prises, LLC and Former Executive Vice President of Manufacturing, DaimlerChrysler

Cliff RansomPresident, Ransom Research, Inc.

Donald L. Runkle Former Vice Chairman, Enterprise Technologies, Delphi Corporation

Russell Scaffede Vice President of Manufacturing, Tiara Yachts, a Division of S2

Dr. Richard J. Schonberger President, Schonberger & Associ-ates, Inc.

Anand SharmaPresident & CEO, TBM Consult-ing Group

Harold M. SimonsExecutive Vice President, O.C. Tanner Company

Dr. Mohsen SohiPresident and Chief Executive Officer, Freudenberg-NOK Gen-eral Partnership

James L. Solberg Executive Director, Manufactur-ing, North American Powertrain’s Operations, Ford Motor Company

Anne Stevens Executive Vice President, Ford Motor Company and Chief Oper-ating Officer, The Americas

Dr. Carl Thor President, JarrettThor International

Alejandro von Rossum Garza President, Chemicals Division, Grupo CYDSA, Monterrey, Mexico

David B. WohleenPresident, Electrical, Electronics, Safety & Interior Sector, Delphi Corporation

Dr. James P. Womack Founder & President, Lean Enter-prise

Page 7: Shingo Prize Business Guidelines

Board of Governors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12006 Business Recipients & Finalists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Previous Business Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Academy Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Shingo Prize Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Shigeo Shingo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Shingo Prize Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Achievement Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section I - Leadership Culture & Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Empowerment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section II - Manufacturing Strategies & System Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Manufacturing Vision & Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Innovations in Market Service & Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Partnering With Suppliers/Customers & Environmental Practices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 World-Class Manufacturing Operations & Processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section III - Non-Manufacturing Support Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section IV - Quality, Cost & Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Quality & Quality Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Cost & Productivity Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Delivery & Service Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section V - Business Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Summary of Achievements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Business Prize Scoring System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Business Prize Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Examination Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Application and Site Visit Examination Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Instructions for Submission of Business Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Business Intent to Apply Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Additional Award Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Public Sector Prize & State-Level Prize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Shingo Research Prize & 2006 Research Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Recent Shingo Research Prize Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Board of Examiners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Non-Profit Sponsors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Services & Other Educational Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Table of Contents

Page 8: Shingo Prize Business Guidelines

Shigeo Shingo

The Prize is named for Japanese industrial engineer Shigeo Shingo who distinguished himself as one of the world’s leading experts in improving manufacturing processes. Dr. Shingo has been described as an “engineering genius” who helped create and write about many aspects of the revolutionary manufacturing practices which comprise the renowned Toyota Production System.

Dr. Shingo is the author of numerous books including: A Study of the Toyota Production System; Revolution in Manufacturing: The SMED System; Zero Quality Control: Source Inspection and the Poka-yoke System; The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement; Non-Stock Production: The Shingo System for Continuous Improvement; and The Shingo Production Management System: Improving Process

Functions. He was a genius at understanding exactly why products are manufactured the way they are, and then transforming that understanding into a workable system for low-cost, high-quality production.

In 1988, Utah State University recognized Dr. Shingo for his lifetime accomplishments with an Honorary Doctorate in Business. The Shingo Prize Model was developed as a world-class manufacturing model that incorporates many of Dr. Shingo’s practices as well as exemplary practices from other sources. The Shingo Prize Model, however, is not just a production model. It is an overall systems model that incorporates all aspects of business operations and processes. The model was developed to promote lean/world-class business practices that result in world-class performance and the ability to compete globally.

Mission

The Shingo Prize was established in 1988 to promote an awareness of lean manufacturing concepts and to recognize organizations that achieve world-class manufacturing status. The Shingo Prize is regarded as one of the premier manufacturing award and recognition programs in the world with Business Week dubbing the Shingo Prize, “the Nobel prize of manufacturing . . .” The Shingo Prize highlights the value of using lean/world-class manufacturing practices to attain world-class status. The Prize, while based in the United States, is also open to business manufacturers in Canada and Mexico, public sector manufacturing in the United States, and to researchers throughout the world.

VISIONThe vision of the Shingo Prize is to be the “Nobel prize” in business, grounded in lean enterprise management leading to world-class and globally competitive business.

MISSIONThe mission of the Shingo Prize for business, the public sector, and research is to:

“If you will take time to study the framework and elements of the Prize, you’ ll find a comprehensive system that, if adopted, will steer your organization unerringly to world-class excellence.” Richard Schonberger President Schonberger & Associates, Inc.

• Promote world-class business and manufacturing processes that will enable organizations to achieve perfection in quality, best cost, and 100 percent on-time delivery to fulfill the customer experience.

• Foster the sharing of “True North” core business and manufacturing processes for continuous improvement.

• Recognize research and applied materials that support the vision and mission of the Shingo Prize.

Page 9: Shingo Prize Business Guidelines

The Shingo Prize Model includes 11 key elements of world-class manufacturing. These elements are grouped into five categories, signifying that it is necessary to integrate them into a complete system to achieve world-class results. The Shingo Prize criteria do not prescribe specific methods, techniques, practices, or processes. Rather, for each element the criteria lists practices and techniques that might be incorporated to achieve world-class level quality, cost, delivery, and business results. These practices and techniques may not apply to every organization. For example, world-class “quick changeover” practices should be strategically incorporated and deployed to fulfill lean, just-in-time capabilities only if changeovers are required on a company’s manufacturing floor. In summary, “one single” best method, system, process, or route to attaining excellent-to-world status does not exist.

Either a description of the “strategy and level of deployment” or the “results” as specified is required for all 11 elements. See pages 14-15 for the “scoring system and guidelines.”

Shingo Prize Model

“The Shingo Prize Model has been proven to be the best available model to assess an organization’s Lean Transformation – from the full enterprise perspective. Challenging for the Shingo Prize is a tremendous ‘energizer’ for acceleration in organizational improvement.”

George Koenigsaecker Past Chair, Shingo Prize Board of Governors and President, Lean Investments, LLC

Profitability 75pts

Page 10: Shingo Prize Business Guidelines

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Achievement Criteria

Leadership Culture & Infrastructure (Section Total: 150 Points)

Implementing world-class strategies and practices requires an aligned management infrastructure and organizational culture. This section examines the management systems and organizational culture, the inputs or enablers in a systems model that are necessary to deploy world-class practices and achieve world-class performance. The two elements evaluated are leadership and empowerment.

A. Leadership (75 Points)

This subsection is designed to evaluate leadership at all levels of an organization with regard to application of world-class strategies and core business system practices that drive world-class results. Leadership creates an organizational culture and infrastructure that aligns the company’s mission, strategy, and policy to deploy lean/world-class practices and achieve world-class results.

Please discuss how your organization uses leadership to deploy world-class and lean strategies and practices to

achieve world-class results. Examples of the items that could provide evidence in this section include, but are not limited to:

• S t a t e m e n t s o f v i s i o n , m i s s i o n , v a l u e s , strategies, and goals

• A planning process for establishing and deploying vision, mission, values, strategies, and goals (e.g., Hoshin Kanri, Policy Deployment, Management By Objective, etc.)

• Allocation of resources for deploying vision, mission, values, and strategy

• Sustained personal commitment and involvement of all the organization’s managers to find and eliminate waste, muda, or any non value-added activities and costs

• Knowledge management system and business results deployed to all levels of the company

• Communication and measurement of quality, cost, and delivery standards throughout the organization

• An organizational philosophy that encourages and recognizes innovations, entrepreneurship,

Enablers

I

The Shingo Prize recognizes organizations that use world-class manufacturing strategies and related strategies and practices to achieve performance excellence. Recognition is designated as Finalist and Recipient. Applicants not receiving the designation of Finalist or Recipient are not publicly reported by the Shingo Prize office. The Shingo Prize Board of Governors ratifies the final decision regarding Finalists and Recipients. Generally, Finalists score within a range of ten-percent of the score and recommendations for Recipient status. There is not a limit in the number of Finalists or Recipients that may be so designated.

The Shingo Prize achievement criteria provide a framework for identifying and evaluating world-class manufacturing and business related competence and performance. The criteria comprise a systems model for manufacturing excellence, organized into five principle sections as pictured on the previous page.

The world-class strategies and practices that are referred to in the criteria are presented in sections I through III of these guidelines. World-class results are discussed in sections IV and V.

Shingo Prize applicants must prepare an Achievement Report that details key activities and results for each section of the Achievement Criteria based on relevant facts and data spanning a period of three years or longer. Each subsection’s point values serve as a guide to determine the proper amount of material to provide in the report.

Page 11: Shingo Prize Business Guidelines

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and improvements wherever they originate in the organization

B. Empowerment (75 Points)

This subsection is designed to evaluate the degree of employee empowerment to effect change within the organization, particularly as it relates to deploying world-class strategies and practices. Employee involvement and empowerment means that a highly specific environment exists that unleashes and fully utilizes each person’s talents, skills, diversity, and creativity through individual commitment and team effectiveness. This evolutionary process gives each employee the opportunity to feel confident, to be heard, and to be respected. The result is job enrichment, maximum productivity, achievement of organizational objectives, and a continued commitment to employee development.

Please discuss how your organization uses employee involvement and empowerment to deploy world-class strategies and practices. Examples of items that could provide evidence for this section include, but are not limited to:

• Magnitude of employee training in world-class practices, separating orientation training from regular employee training

• Use of teams (e.g., corrective action teams, cross-functional teams, process improvement teams, and/or self-directed teams) to deploy world-class strategies and practices to achieve world-class results

• Suggestion systems or other mechanisms that demonstrate management’s willingness to receive innovative and/or improvement ideas from all sources

• Recognition and reward systems for the company/plant (e.g., gainsharing), teams and/or individuals contributing to demonstrated improvements

• Company procedures that facilitate all employees sharing problems and exchanging ideas with customer and/or supplier employees

• Measures that document employee satisfaction and morale such as employee turnover, absenteeism, and employee survey results

• Efforts to maintain an ergonomic, clean and safe work environment for all employees

• Specific safety program results, such as, reportables and lost time.

• The extent of which employees understand the goals and objectives of management and their ability to understand how their efforts facilitate those goals

• Leadership participation

Manufacturing Strategies & System Integration (Section Total: 450 Points)

This section focuses on the core manufacturing strategy, practices, and organizational techniques deployed to achieve world-class results. It should provide information about the value chain practices and techniques the company uses to achieve world-class results.

A. Manufacturing Vision & Strategy (50 Points)

This subsection requires an outline of the company’s manufacturing vision and strategy as it relates to the selection and use of the specific methods, systems, and processes detailed in subsections B, C, and D of this section.

B. Innovations in Product Design, Development and Market Service (50 Points)

This subsection is designed to evaluate an organization’s approach and success in product and market innovation. Innovation in manufacturing operations will be included in Section IID. There are two types of innovation to consider: (1) innovation in new product design and development and (2) innovation in reducing cost and/or improving value to the customer of the organization’s

Achievement Criteria

II

CORE Operations

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products. Some factory-based organizations have little input into how type (1) is handled at headquarters or elsewhere. Everyone has innovation potential of type (2) outside of pure factory-floor processes.

Product innovation approaches and successes may include, but are not limited to:

• Verifiable cost reductions in logistics, sales, service, post sales service, technical support, etc. for an assembler or a manufacturer of a commodity product

• Using quality function deployment, concurrent or simultaneous engineering, etc. for product development

• Benchmarking competitors’ products and services

• New market development and current market exploitation

• Design for manufacturability, testing, maintenance, assembly, etc.

• Variety reduction

• Converting a commodity-type product to a more specialty differentiated product

• Innovations in market service and logistics

• Broadening sales mediums to include avenues such as e-commerce, the internet, etc.

C. Partnering with Suppliers/Customers & Environmental Practices (100 points)

This subsection is designed to evaluate the company’s efforts to deploy world-class practices by partnering with suppliers and customers, and to assess how well the company integrates suppliers and customers into the value-creation process.

Discuss how your organization uses partnering to deploy world-class practices and/or to achieve world-class results. Documentation in this section may include, but is not limited to:

• The integration of the company, its suppliers and its customers in establishing value-creating methods and practices across company boundaries in production or product development

• Distribution and transport alliances to insure product quality and productivity

• Initiatives regarding environmental issues (i.e., recycling, reducing industrial waste, ISO 14000, etc.)

• Supplier satisfaction measures

• Union partnership initiatives

• Benchmarking projects for process improvement

• Cooperative endeavors with schools and training organizations to ensure a qualified workforce

• Cooperative community endeavors that demonstrate the company and its employees are socially responsible

D. World Class Manufacturing Operations & Processes (250 Points)

This subsection focuses on deploying the world-class/lean manufacturing practices necessary to achieve world-class performance. This section could include intermediate results and anecdotal evidence concerning the techniques and practices listed below.

Please discuss how your organization uses any of the world-class/lean manufacturing practices or other

Achievement Criteria

1 In providing evidence of waste, please keep in mind the following definition of waste reduction: Waste is any activity which utilizes equipment, material, parts, space, employee time, etc. beyond the minimum amount required for value-added operations to ensure manufacturability. Seven basic categories of waste which a business should strive to eliminate could include, but are not limited to: Overproduction, Waiting for Machines, Transportation Time, Process Time, Excess Inventory, Excess Motion, and Defects.

2 5S denotes the following basic factory and office improvements: 1. Sort - sort through what you have and throw out what you don’t need 2. Straighten - organize what remains, making space visual and self-explanatory 3. Shine - Clean up tools, equipment, and workplace and keep them spotless 4. Systematize - Follow work standards scrupulously 5. Sustain - Maintain discipline in 5S

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similar activities. Documentation could include, but is not limited to:

• Time-based or just-in-time manufacturing

• Systematic identification and elimination of all forms of waste1

• Value Stream Mapping

• Value Analysis

• 5S Standards and Disciplines2

• Standardized work

• Total productive, preventive, or predictive maintenance

• Quick changeover or setup reductions (SMED)

• Source inspection and poka-yoke

• Visual workplace/visual manufacturing

• Cellular manufacturing

• Continuous flow

• Multi-process handling and autonomation (jidoka)

• Pulling work through the production sequence (kanban)

• Distributing work intelligently and efficiently (heijunka or load leveling)

• Six sigma or statistical process control

• Theory of constraints

• Breakthrough kaizen events (kaikaku)

• Tools of quality (i.e., pareto charts, storyboarding, cause and effect diagrams, 5- why’s, or similar problem-solving techniques)

• Production Process Preparation (3P)

Non-manufacturing Support Functions (Section Total: 100 Points)

This section is designed to evaluate (1) the degree of integration between manufacturing and all non-

Achievement Criteria

manufacturing functional units; and (2) the extent to which improvement techniques and strategies have been applied in non-manufacturing functions up and down the value stream (new product development efforts are detailed in Section IIB and need not be repeated here). Non-manufacturing support functions may include accounting, finance, human resources, sales and marketing, materials, purchasing, quality, MIS, etc. Address only those non-manufacturing functions that fall under the scope or control of the applicant site.

Evidence could include, but is not limited to, a discussion of:

• Alignment of non-manufacturing functions to support the manufacturing function

• The integration of non-manufacturing functions with manufacturing

• Incorporation of continuous improvement in the mission or vision statements, goals, or strategies of all non-manufacturing functions

• Elimination of waste or non-value-added activity in all functional units of the organization (e.g., closing of financial books in hours rather than days)

• Commitment to continuous improvement projects and/or change processes in long-range plans, capital budgets, training and human resource development, marketing plans, and strategic reviews by all functional business units

Quality, Cost & Delivery (Section Total: 225 Points)

This section is designed to evaluate the outputs of the core business systems or the performance of the world-class/lean practices described in sections II and III of the criteria. Evidence in this section includes multiple measures of quality, cost, and delivery. Each measurement presented

III

Output Results

IV

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Achievement Criteria

should be documented with three or more years of data. When measurements have been in place less than three years, present whatever data is available. Data reported should show, to the extent possible, not only the trend, but also the performance level attained and potential industry benchmark comparisons. The current goal for each key measure should be reported as well. Note that there are expected measurements for quality, cost, delivery and business results. Any exceptions to reporting the expected measurements should be reviewed with a representative from the Shingo Prize office. Results data reported may be based on either “profit or cost center” policy. An expected measures spreadsheet and definition elaboration will be provided to each applicant upon notification of an intent to apply. The spreadsheet must be included in the Achievement Report. Adjustments for extraneous factors such as inflation and changes in product mix should be clearly documented.

A. Quality & Quality Improvement (75 Points)

The objective of the quality & quality improvement category is to insure that no human or machine errors ever get into customers’ hands and that in-process defects are continually being reduced. The goal is zero defects. Both trend and level data should be presented and the basis/definition for all quality measurements should be reported.

Expected measurements: • Rework as a percent of sales or production costs • Customer rejects due to quality (ppm) • Finished product first pass yield and percentage • Unplanned scrap rate(s)

Supplemental data could include: • Overall cost of quality as a percent of sales, total manufacturing cost or other appropriate baseline • Process variation measures • Warranty cost as a percent of sales or production costs • Other appropriate measures

B. Cost & Productivity Improvement (75 Points)

The purpose of the measured cost and productivity improvement category is to assess the improvement trend and level in cost and productivity. Both trend and level data should be presented and the basis/definition for all cost and productivity measurements should be reported. The overall aim is reduced cost and increased productivity.

Expected measurements: • Total inventory turns separated as appropriate into raw, WIP and finished goods • Value added per payroll (sales minus purchased goods and services divided by total payroll dollars) • Manufacturing cycle time (start of product production to completion)

Supplemental data could include: • Physical labor productivity (units/direct hour) • Energy productivity • Product cost reduction • Percent machine uptime • Changeover reductions • Resource utilization (e.g., vehicles, plant and warehouse floor space, etc.) • Transport and logistics effectiveness and cost • Other appropriate measures

C. Delivery & Service Improvement (75 Points)

The purpose of the delivery and service improvement category is to identify whether customers are getting what they need in the time and quantity necessary. Both trend and level data should be presented and the basis/definition for all delivery and service measurements should be reported.

Expected measurements: • Percent of line items shipped on-time (define on-time window) and/or percent of complete orders shipped on-time (define on-time window)

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Expected measurements:

• Operating income on sales ratio

• Operating income on manufacturing assets ratio

Supplemental data could include:

• Reductions in fixed and/or variable costs

• Cash flow

• Product line margins

• Other appropriate measures

Summary Of Achievements

This subsection is designed to summarize the company’s accomplishments relative to the level of achieved excellence in manufacturing. This summary will be used as a quick reference document.

• Customer lead time (order entry to shipment)

• Premium freight as a percent of production costs

Supplemental data could include: • Mis-shipments

• Warranty response and service

• Other appropriate measures

Business Results (Section Total: 75 Points)

This section is intended to evaluate the outcomes of quality, cost, and delivery on customer satisfaction and business results. For each measurement presented, three (3) or more years of results should be documented. The overall aim of this section is to document customer satisfaction and to demonstrate the positive financial results derived from a lean transformation.

Customer Satisfaction - Evidence of customer satisfaction may be presented through any valid approach used by the company. Survey data should describe sample size, survey format, frequency, and efforts to avoid bias. Measures reported must be clearly defined and could include, but are not limited to:

• Market share

• Reorder rate

• Customer survey results

• Customer awards

• Customer audits

• Field performance data

• Other appropriate measures

Profitability - Measures of level and trend should be clearly defined and should document the unit’s overall relevant business financial attainment.

“...there are many such prestigious awards being provided in the industry. But I think there’s one very crucial point which differentiates the Shingo Prize. ...One of the major issues to be dealt with is the concept of muda, or waste. In no other prize-giving activity, do they question the muda. ...For that matter alone, I think, the Shingo Prize is very unique and you should be proud of the existence of such an award in the United States and now being extended to Mexico and Canada.”

Masaaki ImaiChairmanKAIZEN Institute of Japan

Achievement Criteria

Outcome Results

V

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Business Prize Scoring System

Strategy & deployment

The Shingo Prize Examiners review business applications based on two evaluation dimensions: (1) Strategy & Deployment and (2) Results. Each of the Achievement Criteria’s subsections require applicants to furnish information relating to one or both of these dimensions. Sections I through III refer primarily to information on Strategy & Deployment. Sections IV and V refer primarily to overall organizational results. However, it is fully appropriate to include “intermediate” results (number of leadership initiatives, number of teams, team participation rates, number of suggestions per year, cycle time reduction in a specific process, etc.) in sections I through III.

Specific factors relating to each evaluation dimension are described below.

Strategy is the means, processes, or methodologies an organization pursues to achieve its business plan and manufacturing goals. Deployment is the action the organization takes to achieve the intended strategy. Scoring is based on:

the acceptance and use of Shingo’s comprehensive view of “waste” as any non-value added activity and its prevention as the only path

the degree of organizational focus on value-added activities

the existence of goals focused on continuous improvement and world-class manufacturing

the understanding of the importance of business processes as an area for analysis and improvement

the effective use of appropriate tools, techniques, and technologies in a variety of improvement initiatives

the demonstrated cooperation and integration between employees’ efforts at all levels

Results

Results are an organization’s demonstrated achievements in reaching each manufacturing and business goal. Scoring is based on:

the demonstrated improvement trend in each key area

the level of performance in each key area

the use of outside benchmarks in intelligent goal setting

the choice and use of appropriate measures for each specific purpose, and the proper technical adjustments

the intelligent use of the measured results to stimulate further improvement

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Scoring Guidelines

Organizations which fully match the descriptors would score at the top of the indicated range, etc.

Results

• excellent improvement trends in key strategic areas and within the waste-prevention projects• high and predictable levels of performance with active programs based on goal setting• creative choice of appropriate indicators with demonstrated validity• evidence of ingrained, routine feedback of results to those responsible for improvement

• generally good improvement trends in the key strategic areas and in improvement projects• good level of performance in most areas and projects; some attention to goal setting• appropriate measures used with demonstrated validity• good evidence of feedback of results to those involved in improvement on a regular basis

• good improvement trend in some key areas and applications• reasonable-to-good level of performance in some areas and applications• adequate choice of measures used but little demonstrated validity• little evidence of results feedback as a routine

• no apparent improvement trend in key areas; mixed results in applications• levels of performance that are either low or not predictable• poor choice of measures and insufficient use• no evidence of systematic feedback of results

100%I

80%

80%I

60%

60%I

40%

40%I

20%

100%I

80%

80%I

60%

60%I

40%

40%I

20%

Organizations which fully match the descriptors would score at the top of the indicated range, etc.

Strategy & deployment

• tenacious strategic focus on high-value-added processes and issues• major, fully completed waste prevention applications that could be considered best practices

examples• clear and ingrained use of all appropriate human and technical resources in an integrated

manner

• recognition of strategic priorities with frequent consideration beyond day-to-day issues• many good waste-prevention projects, some of which are around key processes and issues• frequent use of appropriate human and technical resources to reach beyond the conventional

solution, but occasional problems in getting integrated action

• existence of some strategic ideas but rarely applied systematically• a few good waste-prevention/reduction applications, more are planned as time permits• some use of human and technical resources beyond conventional, but difficult to get

integrated cooperation and action

• no evidence of strategic focus; reactive only to day-to-day issues• minor, incomplete, limited-value applications of waste reduction• no evidence of use of human and technical resources in problem solving

When using this scoring grid, select the quadrant that tends to best describe the company’s current practice based upon the individual descriptors, then qualitatively decide whether the current practice is high, mid, or low. A qualitative percentage is selected and multiplied by the point value of the criteria element to determine a current practice score.

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Questions regarding eligibility should be clarified prior to submitting the Intent to Apply Form.

A Prize Recipient is ineligible to re-apply for the Prize for five years.

At least 50% of the business’ revenue must be derived from manufacturing activities.

Small businesses are defined as independent corporate entities with fewer than 500 full-time equivalent employees. Small businesses may challenge for the Prize provided that the above provisions are met. A division or business unit of a small company may apply as a separate entity. In order to apply, the entity must be operated essentially as a complete business.

Large businesses are defined as corporate entities with 500 or more full-time equivalent employees. Large business entities may challenge for the Prize according to the following provisions.

Manufacturing business entities (subsidiaries, business units, divisions, and plants) wishing to apply must have at least 50 full-time equivalent employees and have clear lines of distinction from other organizational units. Separate organizational units of a large business may compete individually, but must apply in the large business category, regardless of the number of employees in the unit.

Multiple entities within one company, subsidiary, business unit, or division may apply individually in the same year, unless the applying entities together comprise a clear majority of the next larger

The Business Prize may be awarded to any qualifying applicant in each of the following categories.

1. Large manufacturing companies, which may include:

Whole Company

Division or Business Unit

Single Plant

2. Small manufacturing companies, which may include:

Whole Company

Division or Business Unit

Manufacturing entities in existence three or more years, located and operated in the United States, Canada, or Mexico that conform to the U.S. Standard Industrial Classification (SIC) of Manufacturing are eligible to apply for the Prize. For individual entities engaged in both service and manufacturing, classification is determined by the larger percentage of sales. Additional eligibility requirements that an entity interested in challenging for the Shingo Prize must meet include the following:

If a single applicant business entity individually comprises more than 50% of the business unit, then the entire business unit must be included in the application, unless the unit can provide a substantive justification that the remaining entities are not integral to the operation of the unit or applying entity.

The Shingo Prize for Excellence in Manufacturing recognizes companies and plants located in the United States, Canada, and Mexico that have demonstrated outstanding achievements in manufacturing and business processes leading to outstanding quality, cost, delivery, and business results. Additionally, the application process itself serves as a vehicle for improvement. Applicants receive feedback, within the scope of the Achievement Report, on possible improvements and suggestions for deployment.

Recognition is designated as Finalists and Recipients. The Shingo Prize Board of Governors ratifies the final decision regarding Finalists and Recipients. Generally, Finalists score within a range of 10% of the score and recommendations for Recipient status. There is not any limit on the number of Finalists and Recipients that may be so designated.

Business Prize Requirements

Eligibility

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business unit (i.e., company, subsidiary, business unit, or division), in which case the application will automatically be considered on the basis of the larger entity.

Applicants Need to Provide:1. Intent to Apply Form - organizational information

sufficient to determine eligibility.2. Profile Sheet - a two-page organization report.3. Achievement Report - written documentation of the

company’s efforts and achievements in manufacturing excellence conforming to the criteria outlined in these guidelines.

The examination process has four steps: Achievement Reports are submitted and distributed

for review by members of the Board of Examiners. High-scoring applicants will receive site visit

examinations. Based on the application review and site visit

examination results, the Board of Examiners will recommend Finalists and Recipients to the Shingo Prize Board of Governors.

The Board of Governors reviews the recommendations and may amend or ratify the recommendations. Companies will be notified of their status after the Board meeting.

Decisions made by the Board of Governors are final and are not subject to appeal. Business applicants will receive written feedback after status notification.

Time TableIntent to Apply Forms are due by June 1st. Achievement Reports are due by July 1st. Site visits will be conducted between September 1st and December 1�th.Board meeting will be held approximately February 1st.

Business Prize Requirements

Examination Process

Site Visit ExaminationsCandidates for the Shingo Prize will receive a site visit examination by a team of examiners. A single facility application will generally require a team of five (5) to eight (8) examiners.

The primary objective of the site visit examination is to verify, clarify, and amplify the information contained in the Achievement Report. In terms of clarification, companies should be prepared to update all metrics reported in their Achievement Report during the site visit examination.

Companies will generally be notified at least ten working days prior to a site visit date.

ConfidentialityAll applications, achievement reports, commentaries, and evaluation information are held confidential. All individuals involved with the review, handling, and processing of application reports sign a nondisclosure agreement which is kept on file at the Shingo Prize office. Examiners are assigned in such a manner that conflicts of interest are avoided.

Business entities that have representatives on the Board of Governors or Board of Examiners are allowed to challenge, but their representative will be disqualified from participation in the examination, review, and selection processes for the category in which they are challenging. Applicants are not expected to divulge proprietary information regarding products, processes, or sensitive financial results. Information regarding successful strategies Prize recipients employ may be released by the Shingo Prize only with the company’s written approval.

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(435) 797-2279 (435) 797-3440 FAX www.ShingoPrize.org

STEP 1. Submission of Intent to Apply Form

A completed Intent to Apply Form (p. 19) is due by June 1st at the Shingo Prize for Excellence in Manufacturing office. This form will be used to verify the eligibility of the applying plant, division, or business unit. A notice of eligibility confirmation will be sent to the applying entity.

The Intent to Apply Form must be accompanied by payment of the application processing fee ($4500 for large businesses; $2000 for small businesses). Intent to Apply Forms should also be accompanied by a two-page company profile sheet, which should be formatted according to examples provided at www.ShingoPrize.org/recipients/BusPrize/current.htm. Intent to Apply Forms submitted after June 1st are subject to an additional late processing fee of $1,000.

STEP 2. Preparation of the Achievement Report

The Achievement Report should follow the same sectional designation contained in the Achievement Criteria guidelines (pp. 9-13), including a summary of all accomplishments relative to the achieved level of excellence in manufacturing. A copy of the Intent to Apply Form, a two-page profile sheet, and an expected measures spreadsheet should be included at the beginning of the Achievement Report. The expected measures spreadsheet is available at www.ShingoPrize.org/AwardInfo/BusPrize/application_info/default.htm. The official language of the Achievement Report and site visit evaluation will be English.

The report must be typed or printed on 8½ x 11-inch paper using a fixed pitch font of 10 characters per inch or a proportional spacing font of point size 12. Sheets should be printed on both sides, and may be printed either single- or double-spaced. The report is generally limited to a maximum length of 100 printed pages. The report should be bound with a non-bulky, lightweight binding (no bulky ring binders).

STEP 3. Submission of Achievement Report

Fifteen (15) copies and one CD or zip disk copy of the Achievement Report, meeting all above-stated criteria and format requirements, is due by July 1st, and should be sent to the address listed below.

For questions or comments contact:

Instructions for Submission of Applications

Business Prize Requirements

Ross E. Robson Executive Director

[email protected]

Shaun D. Barker Associate Director

[email protected]

Application and Site Visit Examination Fees

Application Fees An application processing fee of $4,500 for large businesses or $2,000 for small businesses must be submitted with the Intent to Apply Form on or before June 1st. Companies submitting the Intent to Apply Form after June 1st are subject to an additional $1,000 late processing fee. Application fees will be refunded if the applicant is found to be ineligible to compete.

Site Visit Examination FeesApplicants selected for a site visit pay an additional fee. The cost of each site visit examination is based in part on the nature and size of the applicant entity. Fees generally run between $7,000 and $9,000 for single facility locations. Please call the Shingo Prize office for projected costs for very large locations or multi-facility applicants.

Shingo Prize for Excellence in Manufacturing College of Business Utah State University 3521 Old Main Hill Logan, UT 84322-3521

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Shingo Prize for Excellence in Manufacturing

Applicant Company NameMailing Address _______________________________________________________________________

Highest Ranking Official of Applying Entity Name _____________________________________ Title Telephone __________________________________ Fax Email ______________________________________________________________________________

Official Contact for Correspondence Name ______________________________________ TitleTelephone __________________________________ FaxEmail ______________________________________________________________________________

Eligibility Information Check One: Large Business: Whole Company Division/Business Unit Single Plant Small Business: Whole Company Division/Business Unit

Classification according to North American Industry Classification System Codes _____________________ Note: Previously recognized as U.S. SIC Codes. For code, visit http://www.census.gov/epcd/naics02/naico602.htm.

List all individual sites and/or facilities that make up your company, subsidiary, business unit or division. Indicate the number of employees at each site/facility, and whether the site/facility is to be included in the application.

Site/Facility Number of Employees Square Footage Included (Y/N)

This form should also be accompanied by a two-page profile sheet. Please format the company profile sheet according to provided examples at www.ShingoPrize.org/recipients/BusPrize/current.htm.

Statement We understand that this Intent to Apply Form and the subsequent Achievement Report will be reviewed by members of the Board of Examiners, Board of Governors and staff of the Shingo Prize. If selected as a Candidate, our organization agrees to host a site visit to verify information provided in the achievement report. We understand that, if the company is selected for a site visit, a site visit fee will be assessed.

Signature authorizing officialX ______________________________________ Date_______________________________________ Name ___________________________________ Title ______________________________________Note: Checks for application fees should be made payable to the Shingo Prize for Excellence in Manufacturing.

Business Intent to Apply Form

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State Shingo Prize

Public Sector Shingo Prize

The Shingo Prize for Excellence in Manufacturing State Award has been established to recognize business excellence in individual states similar to the North American Shingo Prize. The State Shingo Prize will enable states to create an increased awareness, development, and implementation of lean manufacturing principles and techniques throughout the United States, and promote world-class manufacturing performance. The state award will exhibit the same high standards and quality characterized by the North American Shingo Prize, which Business Week considers “the Nobel prize of manufacturing.”

State examiners, trained by representatives from the North American Shingo Prize, will evaluate the Achievement Reports and the two- to three-day company Site Visit Examinations. The State Shingo Prize will be awarded at four levels: Bronze, Silver, Gold, and Platinum. Each level showcases an increased achievement of lean implementation. Platinum award recipients would be excellent candidates to apply for the North American Shingo Prize award. If a facility meets or exceeds the standard, they will be recognized for the State Shingo Prize at the level in which they qualify. State awards are administered by non-profit associations in participating states. These associations have been selected by the North American Shingo Prize, in part for the ability to uphold the prestige and integrity of the Prize. Associations interested in administering a State Award should contact Ross Robson, Executive Director of the North American Shingo Prize. For more information, visit www.ShingoPrize.org/AwardInfo/StateAwards/default.htm.

Due to the considerable interest and the expansion of lean as the most proven paradigm to deliver operational excellence, individuals associated with the depots of the United States Department of Defense requested the expansion of the Shingo Prize to include “public sector entities.” Accordingly the Board of Governors authorized an expansion of the Shingo Prize in 2005 to include a Public Sector category for manufacturing, industrial, or “maintenance, repair and overhaul” (MRO) type activities of the public sector.

Eligibility in the Public Sector category shall be determined by legal activity defined by the North American Industry Classification System as manufacturing. A manufacturing classification that includes “maintenance, repair, and over-haul (MRO)” of the many United States Department of Defense activities, as well as original manufacturing activ-ity, such as the U.S. Mint, is eligible. All applications must be linked to or grounded in manufacturing/MRO related activities. The Shingo Prize Public Sector category highlights the value of using lean/world-class manufacturing and busi-ness practices to attain performance excellence.

For more information and to apply for the Public Sector Shingo Prize, visit www.ShingoPrize.org/AwardInfo/PubSectorPrize/default.htm.

PUBLIC SECTOR GUIDELINES

Multiple copies of the Shingo Prize Public Sector Application Guidelines, for distribution to suppliers and/or contractors, or for use as an internal assessment instrument, may be ordered by contacting a representative in the Shingo Prize office at (435) 797-2279.

Additional Award Programs

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The Shingo Research Prize recognizes and promotes research and writing regarding new knowledge and understanding of manufacturing consistent with the philosophy of the Shingo Prize for Excellence in Manufacturing Business Prize Guidelines. Awards are given in four categories: (1) unpublished papers, (2) published articles, (3) books (monographs) and (4) applied publications/multimedia programs.

Research published within the last three years is eligible for consideration in the published research category. Unpublished research of journal quality submitted in accordance with guidelines established by the Research and Professional Publications Board of Examiners is eligible for consideration in the unpublished research category. Books (monographs) are also eligible for publication in the professional publication category. Research or publications submitted should provide new theory or novel application. Reviews, restatements, textbooks, and/or edited versions will generally not be considered.

Individuals interested in submitting or nominating a professional publication for the Research & Professional Publications Prize, should obtain a full set of guidelines and criteria found on the Shingo Prize web site at www.ShingoPrize.org or by contacting the Shingo Prize office at the address included in this booklet. All nominations and submissions must be received no later than September 30th.

Additional Award Programs

2006 Research Recipients

Shingo Research Prize

Books & MonographAndy & Me – Crisis and Transformation on the Lean JourneyPascal DennisProductivity Press, 2005

Creating a Lean Culture – Tools to Sustain Lean ConversionsDavid MannProductivity Press, 2005

The Gold Mine: A Novel of Lean TurnaroundFreddy Ballé and Michael BalléLean Enterprise Institute, 2005

Lean Production Simplified – A Plain Language Guide to the World’s Most Powerful Production SystemPascal DennisProductivity Press, 2005

Lean Solutions – How Companies and Customers Can Create Value and Wealth TogetherJames P. Womack and Daniel T. JonesFree Press, 2005

The Toyota Way FieldbookJeffrey Liker and David MeierMcGraw-Hill Press, 2006

Training Within Industry: The Foundation of LeanDonald DineroProductivity Press, 2005

Visual Workplace – Visual Thinking: Creating Enterprise Excellence Through the Technologies of the Visual WorkplaceGwendolyn GalsworthVisual-Lean Enterprise Press, 2005

Published Journal Articles"Fixing Healthcare from the Inside, Today"Steven J. SpearHarvard Business Review, 2005

Applied Publications or Multimedia ProgramToast KaizenBruce HamiltonGreater Boston Manufacturing Partnership, 2005

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Recent Shingo Research Prize Recipients

2005 RecipientsKaikaku: The Power and Magic of LeanNorman BodekPCS Press, Inc., 2004

The Toyota Way Jeffrey K. LikerMcGraw-Hill, 2004

Who’s Counting? A Lean Accounting and Manufacturing Business NovelJerrold M. SolomonWCM Associates, 2003

“Learning to Lead at Toyota”Steven J. SpearHarvard Business Review, May 2004

“Managing Learning Curves in Factories by Creating and Transferring Knowledge”Michael A. Lapre and Luk N. Van WassenhoveCalifornia Management Review, Fall 2003

Creating Level PullArt SmalleyLean Enterprise Institute, Inc., 2004

Making Materials FlowsRick Harris, Chris Harris, and Earl WilsonLean Enterprise Institute, Inc., 2003

The Complete Lean Enterprise – Value Stream Mapping for Administrative and Office ProcessesBeau KeyteProductivity Press, 2004

“High Performance Product Development: A Systems Approach to a Lean Product Development Process”James M. MorganDissertation for University of Michigan, 2002

“The Effects of Just-in-Time/Lean Production on Worker Job Stress”Robert Conti

2004 RecipientsReal Numbers: Management Accounting in a Lean OrganizationJean E. Cunningham and Orest J. Fiume with Emily AdamsManaging Times Press, 2003

Lean Manufacturing and the Environment: Research on Advanced Manufacturing Systems and the Environment and Recommendations for Leveraging Better Environmental Performanceby Ross & Associates Environmental Consulting, Ltd.Prepared for the U.S. Environmental Protection Agency’s Office of Solid Waste and Emergency Response (OSWER) and Office of Policy, Economics, and Innovation (OPEI), September 26, 2003

“Lean manufacturing: context, practice bundles, and performance”Rachna Shah and Peter T. WardJournal of Operations Management, 2003

“The essence of just-in-time: embedding diagnostic tests in work-systems to achieve operational excellence”Steven J. SpearProduction Planning & Control, Volume 13, 2002

“The Human Side of Mistake-Proofing”Douglas M. Stewart and John R. GroutProduction and Operations Management, Volume 10, Number 4, Winter 2001

“The role of performance measures and incentive systems in relation to the degree of JIT implementation”Rosemary R. Fullerton and Cheryl S. McWattersAccounting, Organizations and Society, 2002

2003 RecipientsBetter Thinking, Better Results: Using the Power of Lean as a Total Business Solution Bob Emiliani with David Stec, Lawrence Grasso and James StodderCenter for Lean Business Management, LLC, 2003

Reorganizing the Factory: Competing through Cellular ManufacturingNancy Hyer and Urban WemmerlovProductivity Press, 2002

Today and Tomorrow: Commemorative Edition of Ford’s 1�2� ClassicHenry FordProductivity Press, 2002

Creating Continuous Flow: An Action Guide for Managers, Engineers and Production AssociatesMike Rother and Rick HarrisThe Lean Enterprise Institute, 2001

Seeing the Whole: Mapping the Extended Value StreamDan Jones and Jim WomackThe Lean Enterprise Institute, 2002

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The Shingo Prize is a nonprofit organization funded solely by application fees, conference, and workshop revenues and donations. Funds are managed by the Office of Business Relations in accordance with Utah State University and State of Utah regulations regarding financial accountability.

Governance & Administration

Board of Examiners

Administration

The Shingo Prize for Excellence in Manufacturing is administered by the College of Business at Utah State University. Information about the Shingo Prize, or inquiries about application processes, criteria application, or special programs and services can be directed to Ross E. Robson, Executive Director or Shaun D. Barker, Associate Director.

Shingo Prize for Excellence in Manufacturing College of Business Utah State University 3521 Old Main Hill Logan, UT 84322-3521 (435) 797-2279 (435) 797-3440 FAX www.ShingoPrize.org

email: [email protected] [email protected]

The Board of Examiners consists of practitioners and academicians who have a sound understanding of manufacturing improvement methods, systems, processes and research. Members of the Business Board of Examiners evaluate prize applications based upon established achievement criteria, conduct applicant site verifications and recommend candidates to the Shingo Prize Board of Governors for ratification. The Chair and Vice Chair of the Business Board of Examiners are Carl Thor and Bruce Hamilton, respectively.

The Research/Professional Publications Board oversees the review of submitted research and reviews.

Multiple copies of the Shingo Prize for Excellence in Manufacturing Application Guidelines, for distribution to suppliers and/or customers, or for use as an internal assessment instrument, may be ordered in packets of ten by contacting a representative in the Shingo Prize office.

MULTIPLE COPIES OF THE GUIDELINES

The Shingo Prize for Excellence in Manufacturing is sponsored by the following professional associations that focus on world-class manufacturing:

Association for Manufacturing Excellence

Non-Profit Sponsors

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To fulfill the mission of the Shingo Prize, a number of educational programs are offered. These programs are designed to provide information in a real-world setting, using case studies from recipients where appropriate. Some of the specific offerings of the Shingo Prize include:

Shingo Prize Approach to World-Class Manufacturing

A two-day workshop designed for companies planning to challenge for the Shingo Prize, desiring to examine and benchmark the Shingo Prize Model for transforming a company/plant from mass to world-class manufacturing, or individuals desiring to acquire the knowledge and skills to be an examiner.

The workshop discusses the methods, systems and techniques of lean manufacturing, in the context of the Shingo Prize Model as the road map to achieve world-class manufacturing. A case study is evaluated based upon the Shingo Prize Model and Criteria that serve as evaluation tools for internal benchmarking. This training is offered as a public workshop or at a company-sponsored location.

Workshops and Plant Tours

To better meet the mission of the Shingo Prize it has partnered with training organizations to bring your company the best and most up-to-date training in Lean/World-Class manufacturing. These workshops are held in several locations throughout North America. Workshops are designed to cover specific Lean tools as well as deployment strategy. Plant tours to Shingo Prize recipients are included in certain workshops. Workshops vary in length and can be customized to a particular company, site, or plant if appropriate. For workshop schedules visit www.ShingoPrize.org.

College of Business - Production & Manufacturing Management

The undergraduate degree in Operations and Production and the MBA with emphasis in Manufacturing Management examine contemporary principles, techniques, and research findings of world-class manufacturers in the production and distribution of goods. Participants analyze and examine leading models of manufacturing management and continuous improvement based upon best company (including Shingo Prize recipient plants/companies) practices, particularly lean, just-in-time manufacturing.

Students will obtain a firm grounding in the paradigm of the Shingo Prize for Excellence in Manufacturing. Contact the Shingo Prize office for further information regarding the campus program. An Executive MBA Program could be provided at your company location. For more information, contact Ross Robson at the Shingo Prize office by calling (435) 797-2279.

College of Engineering - Manufacturing Engineering

The Department of Mechanical and Aerospace Engineering offers undergraduate and graduate degree programs in Manufacturing Engineering. Coursework includes manufacturing processes and materials, design of manufacturing systems, integrated product design, etc. The ABET (Accreditation Board of Engineering and Technology) accredited program was recently awarded a grant by the Society of Manufacturing Engineers to implement a degree program based upon contemporary manufacturing competencies. For more information contact the department at (435) 797-2867, or visit www.mae.usu.edu.

Utah State University is a Carnegie Foundation Doctoral/Research University, which includes only the top �.� percent of research colleges and universities in the U.S. and is the administrative home of the Shingo Prize for Excellence in Manufacturing.

Services & Other Educational Programs

Utah State University Manufacturing Degrees

Copyright ©2003 Shingo Prize for Excellence in Manufacturing

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