I know that some people think that on rare occasions I might be a little cynical and sarcastic, but believe me, I am asking this question in earnest. Why should anyone apply for the Shingo Prize?
That question occurred to me earlier today when I wrote about GHSP and how lean they are. Previously I have written about Pella and some other very lean companies. I would imagine they could win a Shingo if they really wanted to, but I am not sure why they would want to.
In the case of GHSP, Honda knows how lean they are, as do their other customers. They certainly already know it themselves. So why would they want to shell out the thirteen grand or so it takes to go through the process, devote the resources to the application, and put up with the disruption of the audit? What would they stand to gain by winning the Prize if all of their stakeholders already know?
I am not casting aspersions at the Shingo Prize; I just put myself in the shoes of a GHSP manager and try to think of the arguments I would use to try to convince the top guy to go for a Shingo and I will be darned if I can think of any good business reason for him to do so.
Please weigh in on this and let me know the answer. I'm sure there are good reasons - I just can't think of any. Of course, this ultimately gets back to Delphi. 24 winning plants at $13K each comes to better than $300 grand they spent on winning Shingos - plus the high cost of aggravation. That's a lot of money for someone who can't pay their bills. i wonder what they thought the benefit would be?
Evolving Excellence
All 1500+ pages of Evolving Excellence from January of 2005 through July of 2008, including comments and reference sources, is now available in a series of six e-books. Perfect reading for those long plane rides to visit your farflung factories...! The entire series for only $10, which helps cover our costs.
A comment on a previous post made me wonder the same thing... "why hasn't Toyota applied for a Shingo? Probably because they would think it was muda." I am personally using the Shingo criteria to help plan and guide the turnaround at my facility. For the most part their criteria does describe lean, although now I'll be more careful about "being" vs "looking". But if you're already lean, does the prize matter? In some areas maybe the PR is worth it. Maybe that's what Delphi was after.
Posted by: Brian | 16 November 2005 at 06:46 AM
You might be right, Brian. Toyota or a company like GHSP knows who their customer base is and they are secure in the reputation they have with them. They do not need a Shingo Prize to convince potential customers of their manufacturing skills. Maybe Delphi, which has been trying to broaden its base outside of automotive, thinks the Shingo Prize will help convince potential customers in defense or electronics that they are unique - an automotive company that 'gets it'.
Posted by: Bill Waddell | 16 November 2005 at 07:18 AM
Some people find that a bit of competition helps to motivate them. That's why they run marathons rather than simply running on their own. Marathons are probably not the best way to get fit, but they might be a good way to keep you motivated to get fit.
And I think quality competitions serve the same purpose - give the people in the organization an extra purpose. Thirteen grand is well spent if it helps the people in the factory to feel better and work harder.
Clearly not every person needs external motivation to go to the gym every day, and not every factory needs to compete in quality competitions to stimulate process improvement. But it doesn't take much process improvement to pay back the thirteen grand.
Posted by: Richard Veryard | 16 November 2005 at 01:50 PM
Another good point. You think the Shingo Prize might be a sort of challenge or competitive goal to put in front of an organization to motivate them to get leaner? Good idea. Thanks.
Posted by: Bill Waddell | 16 November 2005 at 03:35 PM
For companies like Delphi, I presume it has to do with trying to make some change in attitude and performance. Obviously, they didn't take it to heart or they didn't start early enough.
I agree, a lean company doesn't need to spend the time to get the piece of paper. If their existing customers know then there is little value. But perhaps if the company wants to expand their customer base and wish to use this as a marketing tool, it might make sense. Then it becomes more of a cost-benefit analysis.
Posted by: Philip Neukom | 22 November 2005 at 11:38 AM
Shingo may be headed in the wrong direction. I would say that the prize may be getting watered down. It seems that Shingo Prize is turning into the cover of Fortune. Win it and go out of business. If the company is truly applying the concepts of Shingo, they would never apply for the award...as the company would still be in the process if implementing. If they are still implementing, how could they win a prize for best implementation?
Posted by: Morgan Foster | 30 November 2005 at 06:43 AM