International Production Management

HIRATA Sadayo 平田貞代

Ph. D, PMP, Science Council Member of Japan
Associate Professor, Graduate School of Engineering and Science
hirata-s@shibaura-it.ac.jp
 Attention
1. If you have difficulty hearing me or seeing the text,
please let me know immediately.

2. Please download the text from SCOMB each week before class.

3. Please put your name and Student No.

student number in your Zoom panel. MD000012
Name
4. Please show us your face in class. HIRATA Sadayo
International Production Management
1, 2

HIRATA Sadayo 平田貞代

Ph. D, PMP, Science Council Member of Japan
Associate Professor, Graduate School of Engineering and Science
hirata-s@shibaura-it.ac.jp
Outline of This Course
 Purpose of this course

Focus on experience to become a manager who leads organizational

reform and innovative human resource development through
understanding of production management in companies and society.

Deepen your knowledge and understand how production control

impacts your company and society.
 Course content
Basis of Production management in various industries, with abundant
examples.

Opportunities to experience improvement, standardization, and

collaboration that are important in Production management regardless
of the industry or the country.

Specific understanding about production management in business and

research through active learning.
 Goals and objectives

Explain Production management based on examples of multiple industry.

Obtain three or more methods related to Production management.

Understand the features of Production management and practice them for

organizational change and innovative human resource development.
 Knowledge to survive
Sharing various knowledge is necessary to solve problems and achieve
purposes in your business and the society by combining power with
various people.

IT Design
Education
Manufacturing

Psychology
Construction
Finance
Management of Technology
 Main Topics
1Q/2Q 3Q/4Q
・Production control ・Lean production system
・Production life cycle ・Project management
・Supply chain management ・Quality control
・Manufacturing service ・Standardization
・Operational management ・Service management
in service industry ・Business model(Monetization)
・Management strategy
・Innovation management
サービスマーケティング
・プレゼンテーションスキル ・Entrepreneur
・デザイン思考,産業革命、中小企業 ・Social innovation、SDGs
 Course schedule
Day 1 & 2 Introduction
Day 3 & 4 Productivity improvement, Innovation
Day 5 & 6 Production strategy, Production lifecycle
Day 7 & 8 Project management for production
Day 9 & 10 Business model for production
Day 11 & 12 Guest lecturer
Day 13 & 14 Final presentation, Final report submission
 Submission 1: Short speech
Please make a short speech (about 3 minutes per each student).
The theme will be shown in SCOMB.
Please submit a reference such as a part of newspaper or an article of
some web pages etc. to have us understand the main topic of your speech.
Date Activities
10/6 Short speech 1
10/13 Short speech 2
10/20 Short speech 3
10/27 Short speech 4
 Submission 2: Quiz

Quizzs will be prepared in SCOMB.

I will tell you the time to answer the quiz in every class.
The time to answer the quiz is 10 minutes.
The quiz consists of about 5 simple questions, such as keyword selection.
You may look back at the text and answer.
 Submission 3: Final presentation
Theme:
It will be shown in SCOMB later.

Group work:
Form a project with 2 or 3 people.

Output:
Submit a few sheets of presentation file and make a
short oral presentation (15 minutes) in each project.
 Grades

Contribution to class through the short speech and discussion : 30%

Quiz score : 20%

Quality and collaboration of the final presentation : 50%

 Note
Please bring a personal computer with you as it will be used for
Quiz answers, group discussions and so on.

There are several blank spaces in the text. Answers will not be
distributed, so please fill in the blanks according to the display
and explanation during the lecture.

We will have several Zoom break out sessions for group work,
but please share your email address, phone number etc. so that
you can contact freely during the lecture period.
Self-introduction
 Key word: Death March

Death march
:Project that does not quit even if it knows it will fail.
Lack of personnel, budget and delivery time,
ambiguous request, excess quality, exhaustion etc.

F. P. Brooks,The Mythical Man-Month : essays on software engineering, 1995

Edward Yourdon, Death March: The Complete Software Developer’s Guide
to Surviving "Mission Impossible" Projects,2001
Overview of Japanese Production
 Definition of company scale

Small and middle businesses

(small and middle sized company: SME) ： ＜ = 300 employees

Large businesses
(large company) ： ＞ 300 employees

Source: Based on METI Small and Medium Enterprise Agency, 2014

 Japanese production structure
Number of １００

companies

Number of
4:6
employees

Value 5:5
（ Operating income
+ personnel costs
+ capital investment costs ）
Source: Based on METI Small and Medium Enterprise Agency, 2014
Case of Japanese Production Site
 Facts and phenomena in Field Work
What did the president say?

What did craftsmen do?

What did he know?

 Production method in SME
The goal is to make good products quickly and
cheaply. The craftsmen have to move as
quickly as possible and make as little waste as
possible.
To achieve that goal, the machines, tools, and
material are arranged in a "U-shape." U-shape
What is the name of design allows for the craftsmen to move less
this production method? and have the ability to more readily watch
over the entire process. It could be flexible to
Cellular allows for a variety of scaling for a product,
___________production
minor changes to the design.
Production method in large companies

By moving semi - final product with a

belt conveyor in the assembly work, a
final product can be assembled faster and
with less labor than by workers carry
parts to a stationary piece for assembly.
What is the name of
this production method?
Assembly line
___________
Comparison between assembly line and cellular production
Assembly Cellular
line production
Mass production better
Capital investment less
Responding to changes in production volume easier

Time for employees to acquire skills shorter

Specification customization better

Number of defective products less

Employee turnover rate less
 Craftsman spirit
Craftsman:
President:
I am changing the “We works very efficient,
placement of the tool so we have less overtime."
optimally around me so
that I can work without
mistakes in a shorter
time.
If there are defects in
parts or materials, I can
fix them by myself.
 Production structure

90% OEM(ODM) and

10% original brand produce.
 OEM (original equipment manufacturer)
Division of roles

Design the product and

outsource some parts
Company A Company B
Supply the parts

Design Manufacturing Assembly Sale

 ODM (original design manufacturer)
Division of roles

Outsourced the entire product

Company C Company D
Design, manufacture, assemble and
supply the completed products

Design Manufacturing Assembly Sale

 Private brand produce
Division of roles

Company E

Design Manufacturing Assembly Sale

 Testimony in field work
President:
"If we do only OEM,
technology and experience to
plan a business will disappear."
Craftsman:
"We have lots of
wisdom and
ingenuity that can
not be imitated by
Toyota."
Production method in large companies
Jidoka
Jidoka is a Japanese word. It means agile action
by human. Stopping assembly line work by
individuals, faster than the overall judgment
when an error occurs to preventing the disposal
of defective products or machine breakdown.
JIT: Just In Time
produce what you need and when you need it.

What is the name of this production method?

Lean
＿＿＿＿ production system
What kind of production can we do in the
future?
 Production optimization
What to leave in production to prepare for technological evolution
and globalization

https://www.ted.com/talks/augie_picado_the_real_reason_manufacturing_jobs_are_disappearing?language=ja#t-707989 生産分業
Appropriate division of labor for production

Technology that Jobs that will soon be lost due

we are good at to technological advances

Production
optimization Production cost
Appropriate division of
reduction
labor for production
Price that
customers can buy
https://www.ted.com/talks/augie_picado_the_real_reason_manufacturing_jobs_are_disappearing?language=ja#t-707989 生産分業
 Jobs that are easy to replace with AI or robots
687.Order Clerks
688.Brokerage Clerks
689.Insurance Claims and Policy Processing Clerks
690.Timing Device Assemblers and Adjuster
691.Data Entry Keyers
692.Library Technicians
693.New Accounts Clerks
694.Photographic Process Workers and Processing Machine Operators
695.Tax Preparers
696.Cargo and Freight Agents
697.Watch Repairers
698.Insurance Underwriters
699.Mathematical Technicians
700.Sewers, Hand
701.Title Examiners, Abstractors, and Searchers 出所 C. B. Frey, M. A. Osborn, The Future of Employment : How
susceptible are jobs to computerization? ,Oxford University, 2013
702.Telemarketers
Jobs that are difficult to replace with AI or robots
1. Recreational Therapists
2. First-Line Supervisors of Mechanics, Installers, and Repairers
3. Emergency Management Directors
4. Mental Health and Substance Abuse Social Workers
5. Audiologists
6. Occupational Therapists
7. Orthotists and Prosthetists
8. Healthcare Social Workers
9. Oral and Maxillofacial Surgeons
10. First-Line Supervisors of Fire Fighting and Prevention Workers
11. Dietitians and Nutritionists
12. Lodging Managers
13. Choreographers
14. Sales Engineers
15. Physicians and Surgeons 出所 C. B. Frey, M. A. Osborn, The Future of Employment : How
susceptible are jobs to computerization? ,Oxford University, 2013
 Job creation

Technological evolution, changes in management and work will both

accelerate in the future.

It is important that you have the knowledge to create and manage

your own work.
Current major industry trends
 Market capitalization

Share price × number of shares issued

Market capitalization is an index for evaluating corporate value.

A large market capitalization means that not only business
performance but also expectations for future growth are high.
Market capitalization：Global 2021/9/28

Established
(10億$)
(billion dollars)
ICT 1994

ICT

ICT 1994

ICT 1998

ICT 2004

2003

1998
Market capitalization：Japan
Established
Manufacturing 1937 (10億$)

Manufacturing 1974

Manufacturing 1946

Manufacturing 1926
Target of productivity improvement
 New normal production management

Manufacturing industry
: goods production

Need to improve productivity

Service industry
: Intangible value creation
 Industrial Revolution
AI/IoT
4’th :____________

internet web
3’rd :____________
digitization

2’nd : Electricity

1’st:
Steam, machine introduction
Innovation
 Definition of innovation
New combination (新結合) in economic activity

•Production Innovation: Providing New Products and Quality

•Process innovation: Introducing new production methods
•Market innovation: Pioneering new sales channels
•Supply Chain Innovation: Acquiring New Sources of Supply
•Organization Innovation: Establishing a New Organization

Source: Joseph Schumpeter, Yuichi Shinya, Seiichi Higashihata, Ichiro Nakayama, Theory of Economic
Development, Iwanami Bunko, 1977
 Innovation in the United States 3/3
Young Report

Strengthen international competitiveness to compete with emerging

countries such as Japan.

· Creation of new technology and protection of intellectual

property rights · Reduction of capital cost

· Human resource development (improvement of labor skills,

adaptability, and motivation) ・Emphasis on international trade
Source: President’s Commission on Industrial Competitiveness, Global Competition: The New Reality, 1983
 Background of innovation in USA
Twin deficit: trade and budget deficits

(Export value) USA

Japan
1960 1970 1980 （year）
 US-Japan high-tech friction
Twin deficit: trade and budget deficits
(Export value)
USA

Japan
1960 1970 1980 1990 （year）

・Locking out company F and company N supercomputers

・Company H arrest due to IBM industrial espionage case
・IP dispute, etc.
 Knowledge systematization by USA
- Analyze the factors behind Japan's high economic growth by taking
into account the trade deficit with Japan.

- Document the production management that was a tacit knowledge

and custom of Japanese companies.

- Systematize as technology management by associating it with

knowledge of technology strategy, intellectual property, and
innovation that the US was good at.

Source Ezra Feivel Vogel,“Japan as Number One”, 1979

MIT, Lean production system, 1980-1990
 Innovation strategy in USA 4/4
Palmisano Report Source National Innovation Initiative, Innovate America, 2003

To counter emerging innovation regions such as India.

Innovation Ecosystem (mechanical, not linear, interaction) formation.
Emphasis on the economic value of technology.
・Human resources: National innovation education, innovator
development, international competition support
・Investment: Activation of advanced and cross-disciplinary research,
inclination toward entrepreneurship, strengthening of challenging
long-term investment
・Infrastructure: Growth strategy, intellectual property rights, and
strengthening of productivity
Transition by “innovate America”

New market creation:

Expand startup business

Cost reduction:
Improvement of manufacturing efficiency
 Innovate Japan
Invention of new technology or improvement of the existing technology
Source: Cabinet Office, Economic White Paper, 1958

Industrial metabolism and structural reform

・New innovation ecosystem: Support for startups(entrepreneurship)
and carve-out startups (in-house entrepreneurship)
・Open innovation
・Industry-academia collaboration
 US-Japan trade thereafter
(Export value)
USA

Japan
1960 1970 1980 1990 （year）

Lost 10 years
Lost 20 years
Lost 30 years？
Group discussion

Exercise 1
 Subject of Exercise 1

Please select the case of the manufacturing company you are interested
in. And please introduce the production control of the company.
Please give us a short explanation with visual examples such as photos,
graphs, and tables.