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Enterprise Alignment and Results
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Table of Contents

Contents

Acknowledgments..................................................................................xi

Editor.................................................................................................... xiii

Foreword................................................................................................ xv Chapter 1 Introduction........................................................................ 1

DISCOVER EXCELLENCE Workshop.....................................3

CULTURAL ENABLERS Workshop........................................4

CONTINUOUS IMPROVEMENT Workshop........................5

ENTERPRISE ALIGNMENT & RESULTS Workshop..........5

BUILD EXCELLENCE Workshop.............................................6

Definition of Lean........................................................................7 Chapter 2 The Dimensions.................................................................. 9

Think Systemically.....................................................................13

Create Constancy of Purpose...................................................13 Chapter 3 Think Systemically............................................................ 15

Is Think Systemically a Principle?.............................................17

Is Think Systemically Universal?...............................................18

Is Think Systemically Timeless? ...............................................19

Does It Have Consequences? ...................................................19

What Happens When This Principle Is Observed? ............. 20

What Would Happen If ...?.................................................21

Is It Relevant to Operational Excellence? ...............................22

How Does It Apply?...................................................................23

Problem Solving .........................................................................27

Huddles........................................................................................29

Value Stream Mapping ............................................................ 30

The Bonus System ..................................................................... 30

5 Whys........................................................................................32

Examples of Ideal Behaviors.....................................................33 Cogent Power Case Study ........................................................ 34 Case Study: Cogent Power Inc.-Lean Story................... 34 The Early Days: Learning Lean...................................... 34 One Leader Wakes Up to the Opportunity...................36 Culture, Behavior, and Sustainability............................38 Behavioral Benchmarks ........................................................... 42 The XYZ Widget Company................................................. 43 Systems ........................................................................................49 A Final Thought .........................................................................50 Further Reading .........................................................................51 What Does "Systemic" Mean?.............................................51 "They" Assessment................................................................53 Chapter 4 Create Constancy of Purpose........................................... 57 Is Create Constancy of Purpose a Principle? ..........................58 Is Create Constancy of Purpose Universal? ............................59 Is It Timeless? .............................................................................59 Does It Have Consequences? ...................................................59 What Happens When This Principle Is Observed? ............. 60 5 Whys........................................................................................61 Ozgene Case Study: "To advance humanity-inspire curiosity".....................................................................................63 Clarity on What, Where, and Why......................................... 66 A Filter........................................................................................ 68 Does Constancy of Purpose mean that Nothing will Change?....................................................................................... 68 Align Systems Around Purpose...............................................70 The Policy Deployment System................................................71 Standardized Daily Management System...............................73 Auckland Council Pools and Leisure Case Study..................74 Brief Overview of Auckland Council Pools and Leisure......74 What Is the Purpose?............................................................75 The Long-Term Plan 2012-2022..........................................76 How Do You Align to the Purpose?....................................76 What Is the Game Plan?.......................................................78 Behavioral Benchmarks.............................................................79 Commonwealth Bank of Australia Case Study: Embedding a Constancy of Purpose.......................................83 "Catchballing".............................................................................85 Examples of Ideal Behaviors ................................................... 86 Systems........................................................................................ 90 Further Reading .........................................................................91 Hoshin Kanri: Translating "Big Vision" from Strategy to Execution............................................................91 Part 1: Hoshin Kanri-Concept Origins.......................91 Part 2: Hoshin Kanri-A Valuable Concept.................93 Part 3: Hoshin Planning Applied...................................97 Climbing the Hoshin Planning Ladder: Nuts and Bolts Facilitation...................................................98 Summary...................................................................................102 Create Constancy of Purpose............................................103 Drowning in Opportunities...............................................105 Chapter 5 Results: Create Value for the Customer......................... 109 Create Value for the Customer...............................................110 Is Create Value for the Customer a Principle?.......................111 Is Create Value for the Customer Universal? ........................112 Is It Timeless? ...........................................................................112 Does It Have Consequences? .................................................112 What Happens When This Principle Is Observed? ............113 5 Whys......................................................................................113 What Is Customer Value?........................................................115 Airbus Australia Pacific Case Study......................................118 The Organization......................................................................118 VOC Objectives....................................................................... 120 The Process .............................................................................. 120 Stage 1: Confirm Purpose of the VOC .............................121 Stage 2: Collect VOC Data .................................................121 Stage 3: Analyze and Report VOC Data ..........................121 Results....................................................................................... 122 Behavioral Benchmarks.......................................................... 123 Examples of Ideal Behaviors ................................................. 124 ABC Steel Mill Case Study..................................................... 128 You Get What You Measure...................................................129 Systems ......................................................................................132 Sichuan Toyota Case Study: Create Value for the Customer...................................................................................133 Introduction.........................................................................133 Create Value for the Customer......................................... 134 Definition........................................................................ 134 Tools................................................................................. 134 Examples......................................................................... 134 Results........................................................................................136 Examples of Shingo's Successes.........................................136 Discussion.................................................................................138 Chapter 6 Lean Prescription at Denver Health: The ENTERPRISE ALIGNMENT Workshop Case Study.........139 The Challenge............................................................................140 Changing to a New System ....................................................142 Chapter 7 Assessing the Enterprise Alignment and Results Dimensions...................................................................... 147 Preparations to Go & Observe................................................147 The Shingo Assessment Process.............................................150 The Shingo Prize as an Assessment Tool..............................150 Chapter 8 Summary.......................................................................... 153 Bibliography......................................................................................... 155 Index..................................................................................................... 159

About the Author

Chris Butterworth has been with S A Partners for nearly twenty years. Prior to this, he had many years' experience of operating at senior management positions in several multinational organizations, including JCB, Jaguar, and Corus. He was part of the team that set up and ran one of the earliest Lean factories in the UK in the early 1990s. He was the overall program manager for the work with Cogent Power described in the Shingo Publication recipient book Staying Lean, and has spoken on the topic of "Lean Thinking" at many international conferences. He has published papers on Lean Thinking in various journals and in 2017 co-authored the widely acclaimed book 4+1 Embedding a Culture of Continuous Improvement in Financial Services, which is based on a case study from a Shingo Medallion recipient team at the Commonwealth Bank of Australia, as well as the approach taken at the Bank of New York Mellon. He facilitates Lean Thinking and Shingo workshops for executive management teams globally and is a certified Shingo Institute facilitator and examiner. In 2014, he was honored to be awarded Best New Speaker of the Year (TEC: The Executive Connection) for his executive talk on Lean Thinking. Chris lives in Australia and when he is not on the beach or walking the coast paths, he spends his time writing and learning about continuous improvement from all the people he has the pleasure of meeting in his job.

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