Mike PriceManaging Director, TMI Enterprises

The History of Improvement and the role of Culture and Standards

The History of Improvementand the role of Culture and Standards• History of Improvement• My experiences• Role of Culture, Systems & Standards– Themes from Shingo Prize winners

• Q & A

History of Improvement (1)

Qin Shi Huangdi

manufacture of crossbows

with standardized

parts

221 BC

Venetian Arsenal was

able to produce one galley a day

by using assembly line

principles

1500’s

Eli Whitney: standard,

interchangeable parts for musket

assembly, leading to mass production of

guns

1798

Frederick Taylor

published The

Principles of Scientific

Management

1911

Henry Ford: first moving

assembly line, producing cars in a standard sequence of

steps

1914

Walter Shewhart

introduced Plan – Do – Check –

Act and the control chart

1920’s

W. Edwards Deming began

applying Shewhart’s

approach to the production of materials used in World War II. TWI introduced

1930s & 1940s

Deming, Juran and others

trained Japanese leadership in using control

charts. Toyota adapted

Ford’s standardized

assembly line to production of

smaller quantities

1940s & 1950s

National Cash Register’s

reward schemes, employee

development opportunities

& relations

1894

W. Edwards Deming - Taiichi Ohno

Eli WhitneyFrederick

TaylorWalter

ShewhartHenry Ford

History of Improvement (2)

Quality Circles and Total Quality

Management (TQM)

1980’s

ISO 9000 Quality

Management System and

Malcolm Baldrige National Quality Award

1987

The Shingo Prize is

introduced

1988

Motorola introduced Six Sigma.Imai refers to 3 types of kaizen

1986

Six Sigma led to the

development of DFSS,

DMAIC, and DMADV.Kaplan & Norton

Balanced Scorecard

1990s

Toyota process

becomes known as

Lean

1990

Shingo model

updated to assess

culture and behaviours

2008

EFQM Excellence Model andKaizen & CI

referred to as the principle of improvement by Lillrank &

Kano

1989

Bessant & Caffyn

develop the CI Capability

Model at University of Brighton with

10 generic and essential CI behaviours

19971994

TMI established

Shigeo Shingo

Stephen R. Covey

Masaaki Imai

Jim Womack

Phil Crosby

Daniel Jones

Robert Kaplan & David Norton

John Bessant& Sarah Caffyn

Observations• Long history of improvement• Standards key from the earliest historical

examples• Scientific approach evident• Importance of people - culture and behaviours

has been much more recent

“Where there is no standard, there can be no kaizen”Taiichi Ohno, Toyota Motor Corporation

My experiencesPAC International Ltd. (1992-2001)• Best Electronics/Electrical Factory 1998 (Cranfield)• MX2000 Award for Customer Focus (IMechE)• Europe’s Best Plant Award 2000 (Industry Week)

Ultraframe UK Ltd. (2004-2010)• Best Engineering Plant 2007 (Cranfield) • Shingo Prize Bronze Medallion 2009

What I’ve learned…• “People Matter”

– Explain “why”, then “what” & “how”– delegate to motivate– understand individuals strengths and play to them

• “Teach a man to fish” …– coach not problem solver

• Focus on the Customer– Organise to enable Value to Flow– Invert the pyramid

“Only 20% of employees working in 7939 business units surveyed (by Gallup) feel that their strengths are in play every day”

The Lean Toolbox John Bicheno (2000)

200 pages, 6 about People!

Themes from Shingo Prize Winners

• Strategy & Policy Deployment

• Everyone knows “what” “why” and “how”

• The systems are designed to drive the desired behaviours

Themes from Shingo Prize Winners

• Agree & define the behaviours

• Organise to enable Value to Flow

• Invert the pyramid

Themes from Shingo Prize Winners

• Everyone knows “why”, “what & “how”

• Keep it simple & visual

• The Systems are designed to drive the desired behaviours

SMED

CATs

Six Sigma LEANKaizen

PDCA5S

FMEA

KanbanTQM

Quality Circles

VSM

Tools & Initiatives !

TOOLS FOCUS

Rate

of I

mpr

ovem

ent

0 1 2 3 4 5 . . . . . . . .

Years

‘CULTURE’BEHAVIOUR FOCUS

Principles

• Quick wins - plateau• Results – do more• Easy to teach• Managers & ‘experts’• Next fad!

Standard Approach to Improvement

Organisations don’t change, it’s the people who do or don’t!

20% technical and 80% behavioural

Successful, Sustained Change

“How” The Enterprise Excellence Framework

Thanks!

mike.price@manufacturinginstitute.co.uk