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Enterprise Alignment and Results
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ContentsAcknowledgments..................................................................................xiEditor.................................................................................................... xiiiForeword................................................................................................ xvChapter 1 Introduction........................................................................ 1DISCOVER EXCELLENCE Workshop.....................................3CULTURAL ENABLERS Workshop........................................4CONTINUOUS IMPROVEMENT Workshop........................5ENTERPRISE ALIGNMENT & RESULTS Workshop..........5BUILD EXCELLENCE Workshop.............................................6Definition of Lean........................................................................7Chapter 2 The Dimensions.................................................................. 9Think Systemically.....................................................................13Create Constancy of Purpose...................................................13Chapter 3 Think Systemically............................................................ 15Is Think Systemically a Principle?.............................................17Is Think Systemically Universal?...............................................18Is Think Systemically Timeless? ...............................................19Does It Have Consequences? ...................................................19What Happens When This Principle Is Observed? ............. 20What Would Happen If ...?.................................................21Is It Relevant to Operational Excellence? ...............................22How Does It Apply?...................................................................23Problem Solving .........................................................................27Huddles........................................................................................29Value Stream Mapping ............................................................ 30The Bonus System ..................................................................... 305 Whys........................................................................................32Examples of Ideal Behaviors.....................................................33Cogent Power Case Study ........................................................ 34Case Study: Cogent Power Inc.-Lean Story................... 34The Early Days: Learning Lean...................................... 34One Leader Wakes Up to the Opportunity...................36Culture, Behavior, and Sustainability............................38Behavioral Benchmarks ........................................................... 42The XYZ Widget Company................................................. 43Systems ........................................................................................49A Final Thought .........................................................................50Further Reading .........................................................................51What Does "Systemic" Mean?.............................................51"They" Assessment................................................................53Chapter 4 Create Constancy of Purpose........................................... 57Is Create Constancy of Purpose a Principle? ..........................58Is Create Constancy of Purpose Universal? ............................59Is It Timeless? .............................................................................59Does It Have Consequences? ...................................................59What Happens When This Principle Is Observed? ............. 605 Whys........................................................................................61Ozgene Case Study: "To advance humanity-inspirecuriosity".....................................................................................63Clarity on What, Where, and Why......................................... 66A Filter........................................................................................ 68Does Constancy of Purpose mean that Nothing willChange?....................................................................................... 68Align Systems Around Purpose...............................................70The Policy Deployment System................................................71Standardized Daily Management System...............................73Auckland Council Pools and Leisure Case Study..................74Brief Overview of Auckland Council Pools and Leisure......74What Is the Purpose?............................................................75The Long-Term Plan 2012-2022..........................................76How Do You Align to the Purpose?....................................76What Is the Game Plan?.......................................................78Behavioral Benchmarks.............................................................79Commonwealth Bank of Australia Case Study:Embedding a Constancy of Purpose.......................................83"Catchballing".............................................................................85Examples of Ideal Behaviors ................................................... 86Systems........................................................................................ 90Further Reading .........................................................................91Hoshin Kanri: Translating "Big Vision" fromStrategy to Execution............................................................91Part 1: Hoshin Kanri-Concept Origins.......................91Part 2: Hoshin Kanri-A Valuable Concept.................93Part 3: Hoshin Planning Applied...................................97Climbing the Hoshin Planning Ladder:Nuts and Bolts Facilitation...................................................98Summary...................................................................................102Create Constancy of Purpose............................................103Drowning in Opportunities...............................................105Chapter 5 Results: Create Value for the Customer......................... 109Create Value for the Customer...............................................110Is Create Value for the Customer a Principle?.......................111Is Create Value for the Customer Universal? ........................112Is It Timeless? ...........................................................................112Does It Have Consequences? .................................................112What Happens When This Principle Is Observed? ............1135 Whys......................................................................................113What Is Customer Value?........................................................115Airbus Australia Pacific Case Study......................................118The Organization......................................................................118VOC Objectives....................................................................... 120The Process .............................................................................. 120Stage 1: Confirm Purpose of the VOC .............................121Stage 2: Collect VOC Data .................................................121Stage 3: Analyze and Report VOC Data ..........................121Results....................................................................................... 122Behavioral Benchmarks.......................................................... 123Examples of Ideal Behaviors ................................................. 124ABC Steel Mill Case Study..................................................... 128You Get What You Measure...................................................129Systems ......................................................................................132Sichuan Toyota Case Study: Create Value for theCustomer...................................................................................133Introduction.........................................................................133Create Value for the Customer......................................... 134Definition........................................................................ 134Tools................................................................................. 134Examples......................................................................... 134Results........................................................................................136Examples of Shingo's Successes.........................................136Discussion.................................................................................138Chapter 6 Lean Prescription at Denver Health: TheENTERPRISE ALIGNMENT Workshop Case Study.........139The Challenge............................................................................140Changing to a New System ....................................................142Chapter 7 Assessing the Enterprise Alignment and ResultsDimensions...................................................................... 147Preparations to Go & Observe................................................147The Shingo Assessment Process.............................................150The Shingo Prize as an Assessment Tool..............................150Chapter 8 Summary.......................................................................... 153Bibliography......................................................................................... 155Index..................................................................................................... 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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