Has the Shingo Prize Gone South?

Both recipients of 2010Shingo Prizeare assembly plants in Mexico. This is the first time since 1988 that the prestigious operational excellence award did not go to at least one U.S.-based plant. Is this anything to be alarmed about?

When the 2010Shingo Prizewas announced recently, I was surprised to see that neither of the two recipients is located in the United States. Both plants are in Mexico, whereCinco de Mayois being celebrated today.

Over the last two decades, the

Shingo Prizehas become widely recognized in the manufacturing community as a bellwether for “world-class operational excellence.” The prestigious award, which is named after Japanese engineer Shigeo Shingo, is administered by the Jon M. Huntsman School of Business at Utah State University.

The two 2010 recipients of the award are American Axle of Mexico’s Guanajuato Manufacturing Complex North Plant and Interiores Aereos S.A. De C.V. Gulfstream Aerospace. Of course, both American Axle and Gulfstream are U.S. manufacturers.

But, as far as I know, this is the first time since 1988 that theShingo Prizedid not go to at least one U.S.-based plant. [silver and bronze medallions are also awarded to manufacturers-a practice that I find confusing-with half of this year’s recipients American facilities].

Is this anything to be alarmed about? Maybe it’s just a weird anomaly. Then again, it could be the start of something.

I know there are many manufacturing plants in the United States that are world class. In fact, the annualAssembly Plant of the Yearaward (sponsored by ASSEMBLY Magazine and the Boston Consulting Group) is proof of that. Only U.S.-based facilities are eligible to participate and only one plant is honored each year. We'll be announcing this year's winner in October.

Perhaps fewer American plants participated in theShingo Prizethis year due to the economy. Unlike theAssembly Plant of the Yearcompetition, which has no entry fee, theShingo Prizecharges a hefty “processing fee.” Large manufacturers pay $6,000, medium companies are charged $4,000 and small firms pay $2,000 to participate.

Any idea why the 2010Shingo Prizewill have a distinct Mexican flavor when the award is handed out in Salt Lake City in a couple of weeks? Are American plants afraid that winning an award will send the wrong message to their employees (e.g., "we've reached the end of our lean journey, so continuous improvement is no longer necessary")?

Austin has been senior editor for ASSEMBLY Magazine since September 1999. He has more than 21 years of b-to-b publishing experience and has written about a wide variety of manufacturing and engineering topics. Austin is a graduate of the University of Michigan.

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