Shigeo Shingo and the Importance of Operational Excellence

Shigeo Shingo once said, “Lean is a way of thinking, not a list of things to do.” In his most recognized work, reflecting the core principles of operational excellence, he makes it clear that leaders have the ability and responsibility to lead the company culture in a direction that thrives alongside continuous improvement. 

The key to achieving operational excellence is forging a relationship between principles, systems, and tools such as Six Sigma, Lean, etc. In short, those tools won’t stick if employees and management don’t understand the purpose of their actions or why something must be done. This article will explore the meaning of operational excellence and its core principles and introduce the man whose work is foundational to the Shigeo Model.

Shigeo Shingo: A Pioneer in Operational Excellence

Dr. Shigeo Shingo (1909–1990) was a Japanese industrial engineer whose breakthroughs, SMED (Single-Minute Exchange of Die), Poka-yoke (error-proofing), and zero-quality control, helped define the Toyota Production System. His work reduced setup times from hours or days to mere minutes and introduced systematic error prevention, laying the groundwork for lean manufacturing.

Shigeo Shingo's work has profoundly influenced modern manufacturing practices and is recognized through the Shingo Prize for Excellence in Manufacturing, which honors organizations achieving world-class operational excellence.

What is Operational Excellence?

In simple terms, operational excellence loosely translates to uniting an organization- its system, members, and procedures- to one common goal: continuous improvement. This process usually involves analyzing existing procedures and competitors in the market and tweaking current procedures to outperform them. Simply put, it involves refining manufacturing procedures to create a business that thrives from the rest of the market. To achieve operational excellence, organizations follow the Shingo Model to change organizational culture. 

What Is the Shingo Model?

The Shingo Model is often represented in the form of a diamond. Also known as the transformation process, The Shingo Model represents the relationships between four components: systems, principles, results, and tools.

Culture: 

Culture is located at the center of the diamond. As the foundation of any workplace, culture is also considered the central point on which the Shingo Model operates. Culture is leaned on so much in this method because it is the driving force of change within the workplace. For example, a workplace culture that is intent on fixing mistakes will be better off in terms of continuous improvement than another workplace culture that only focuses on output.

Principles: 

Going from the center of the diamond to the very top is where the guiding principles reside. Shingo’s ten guiding principles are the building blocks of excellence and creating a sustainable working culture. Divided into four categories, the principles focus on culture development, improvement, an emphasis on understanding the company’s purpose, and the results of all their hard work.

Systems: 

Moving on to the right corner of the diamond are the systems used within the company to achieve the company’s purpose. The outcomes here are entirely determined by behavioral excellence as well as performance.

Tools:

Moving on to the bottom corner resides the tools within those systems that are used to achieve the results the company wants. Many companies become fixated on solving their problems solely with tools. However, Shingo was adamant that the tools would be used with all other parts of the Shingo Model. Furthermore, only focusing on tools such as 5S and Six Sigma would answer the question of “how” to complete a task but would leave the workers wondering “why” it was necessary.

Results: 

Lastly, we have the left-hand corner where results are located. Many know them as Key Performance Indicators, or KPIs. Tools and workplace culture help to achieve the expected results while affirming the guiding principles and refining the tools used.

These dimensions are interconnected and work together to foster a sustainable culture of continuous improvement within an organization.

The Ten Guiding Principles of Operational Excellence

The timeless guiding principles of operational excellence include: 

1. Respect for Individual:

    Respecting each and every individual in the workplace enables their development in creativity and continuous improvement. By doing so, this empowers them to make suggestions for improvement.

2. Lead with Humility 

   The  feeling of mutual respect comes from the initial willingness from leaders to accept feedback and listen to their employees. This builds trust and an environment based on continuous learning and improvement. Creativity flourishes in this type of environment.

3. Focus on Process:

    When the right inputs exist for a process, and the right steps are taken, there will be a good result. Focusing on the process will also allow problem-solving to be directed away from people as the culprit and find the issue that made that person make a mistake.

4. Embrace Scientific Thinking:

    There are several different methods that promote scientific thinking in the workplace. These include PDCA, DMAIC, the QC story, and A3 thinking. To achieve understanding, employees must be trained to understand the process, and the language regarding improvement must be changed.

5. Flow and Pull Value:

   The pull system is that of matching the rate of production to demand and implementing process flow creates a system that runs faster at less of a cost, therefore being better. Put the two together, and you have an efficient system.

6. Assure Quality at the Source:

   There are three aspects that make up the assurance of quality: refraining from passing on defective material, stopping to fix problems immediately, and respecting the individual in the process.

7. Seek Perfection:

    There is always room for improvement, which means looking for improvement opportunities in places where there don’t seem to be any problems; they may be hiding.

8. Create Constancy of Purpose:

   Always ask, “Why does this organization exist?” This will help keep people focused on the horizon of change, as workplaces should be in a constant state of improvement.

9. Think Systematically:

    Creating a process that promotes synergy between processes or people will lead to systematic development that creates a product greater than its sum.

10. Create Value for the Customer:

    All aspects of value created by a company include quality, cost, delivery, safety, and workplace morale. These must be the highest priority in any company to not only achieve the above principles but also to prioritize the customer.

These principles, when applied effectively, create a foundation for sustainable operational excellence by fostering a culture of continuous improvement and driving positive results.

Why Shingo Matters in Operational Excellence

Shingo's principles, which are foundational to the Shingo Model for operational excellence, highlight the importance of understanding the "why" behind improvements, aligning systems with ideal behaviors, and fostering a culture of continuous learning and respect. Here is a closer look at his contributions:

• People first: His respect-for-individuals and humility seed the culture where innovation thrives.
  
• Process over blame: Emphasizing systemic causes over human error promotes problem-solving.
• Embedded quality: His SMED techniques ensure defects are prevented, not inspected after.
• Scientific mindset: Encourages experimentation, hypothesis-testing, and learning loops.
• Customer centricity: It aligns entire systems to deliver customer-defined value with flow and pull.

These principles make OpEx more than buzzwords; they provide the "why" that sustains tools and transforms culture.

Implementing Shingo-Inspired Operational Excellence

Applying the Shingo Model often involves, 

Implementing the Shingo Model effectively requires a holistic approach that addresses both cultural factors and systemic improvements. When implemented successfully, this leads to operational excellence characterized by improved quality, faster delivery times, reduced waste, and increased productivity.

Conclusion

Shigeo Shingo's legacy is much more than lean manufacturing; his work is a philosophy focused on operational excellence achieved through culture, systems, and purpose. His ten guiding principles, when woven into operations, foster empowered people, flawless processes, and enduring customer value.