News | May 9, 2000

Eight Companies Win Shingo Prize for Manufacturing Excellence

Eight Companies Win Shingo Prize for Manufacturing Excellence

Seven North American companies were announced as recipients of the 12th annual Shingo Prize for Excellence in Manufacturing. The organization chose one Canadian, two Mexican, and five U.S. plants as winners of this year's awards. The prize is administered by the College of Business, Utah State University (Logan, UT) in partnership with the National Association of Manufacturers (Washington, D.C.).

"The Shingo Prize is the only industrial excellence award program that focuses on ‘lean manufacturing' or the elimination of waste as noted by Henry Ford in 1926 and implemented into the Toyota Production System years ago," stated Shingo Prize executive director Ross Robson. "With NAFTA, more companies in North America have had to become globally competitive, and the Shingo Prize is helping achieve this objective."

Eight prizes were awarded to seven companies: Baxter Healthcare, Cydsa Policyd, Delphi (two recognitions), Ford Motor Co., Freudenberg-NOK, Lockheed Martin, and Lucent Technologies.

Winning Strategies
Here's a rundown of this year's winners and their lean manufacturing achievements.

  • Baxter Healthcare. The company's North Cove facility (Marion, SC) manufactures containers of IV and peritoneal dialysis solution. Lean production reduced lead time by 84% and improved on-time delivery to more than 99%.
  • Cydsa Policyd. The La Presa plant (Tlanepantia, Mexico), produces polyvinyl chloride resins used in synthetic fibers, toys, surgical gloves, vinyl planking, bottles, and rigid film. This facility's continuous improvement strategies have enabled it to attain a first pass yield of 98% as well as a 74% quality cost reduction over 5 years.
  • Delphi. The company's CMM facility (Matamoros, Mexico) manufactures instrument panels, steering wheels, interior grab handles, and air bag module covers. Using lean manufacturing, the plant achieved fewer than 200 returned parts per million in addition to 100% on-time delivery. Furthermore, it recorded 7.7 million hours without a lost workday case.
  • Delphi. The firm's Steering Plant 6 (Saginaw, MI) produces steering columns supplied to GM, DaimlerChrysler, and Toyota and component parts for worldwide plants. Its Plant 6 operation improved first-time quality by 82% and its parts/person/day ratio by 43%. In addition, the facility posted 2 million hours without a lost workday case.
  • Ford Motor Co. The Windsor Engine Plant (Windsor, Canada) manufactures the 4.6L and 5.4L Triton V-8 and 6.8L V-10 engines. By implementing the company's Production System principles, this plant achieved 100% on-time delivery with an inventory reduction of $15 million last year. It also received the Wards Auto World 10 Best Engines for each of the last four years.
  • Freudenberg-NOK. The firm's LaGrange, GA, plant produces O-rings for automotive, aerospace, and semiconductor companies. Based on self-managed cells, one-piece-flow, and pull production strategies, the plant improved on-time delivery from 60 to 99.3% and cut manufacturing lead time by more than 75% since 1995.
  • Lockheed Martin Aeronautics Co. Based in Fort Worth, TX, this facility designs, develops, and manufactures the F-16 fighter and related systems. Implementation of lean principles has enabled the plant to reduce cost per unit by 38%, lead time by 46%, inventory by 95%, and manufacturing time by 25% for the F-16 aircraft.
  • Lucent Technologies. The firm's Product Realization Center (Mt. Olive, NJ) integrates the design, development, manufacturing, and business functions for new products. Since 1996, the PRC reduced its product development cycle time more than 50%, trimmed cost of goods 68%, and cut assembly defects by 80%, all with 100% on-time delivery.

About the Prize
The Shingo Prize for Excellence in Manufacturing was established in 1988 in honor of Japanese industrial engineer Shigeo Shingo, a leading expert in improving manufacturing processes who assisted in creating and wrote about just-in-time manufacturing methods, systems, and processes that comprise the Toyota Production System and other related production systems.

Open to manufacturers in the U.S., Canada, and Mexico and researchers around the world, the prize is awarded annually and recognizes manufacturing companies, divisions, and plants that exhibit superior manufacturing that results in high-level customer satisfaction and business performance. It also acknowledges research and writing that focuses on innovative manufacturing and business improvement methods, systems, and processes.

For more information, contact Ross Robson, Executive Director, Shingo Prize for Excellence in Manufacturing, College of Business, Utah State University, Logan, UT 84322-3521. Tel: 435-797-2279.

Edited by Nancy Katz

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