PPM - Japanese Management Concepts

9/11/2017
A Typical Japanese Worker – 1/2

• A typical Japanese worker commuting to
Management Principles and Practices Tokyo might spend as much as three
Lesson xx hours travelling in each direction -
Some Japanese Management
Some Japanese Management crammed crowded
crammed, crowded, and jostled on some
of the cleanest, fastest commuter trains in
Concepts the world. He might begin his day being
"packed" onto the train in a Tokyo suburb
by a white-uniformed professional
"packer."
11/09/2017/ P.K. Sarkar // 11/09/2017/ P.K. Sarkar //
EMPI ‐ GBE
Lesson xx ‐ Pondicherry University ‐ Unit V 1/29 EMPI ‐ GBE
Lesson xx ‐ Pondicherry University ‐ Unit V 2/45
A Typical Japanese Worker – (2/2) Japanese Style Management

• In the course of a typical day, he might • So, just what is this phenomenon called
work until 7 or 8 in the evening, dine, Japanese style management? Specifics
drink, and socialise with colleagues - are open to debate. Valuing cooperation
usually on an expense account - and then over competition
competition, long
long-term
term or life-time
life time
return to the office and continue to work
until late evening. On occasion, he might employment, consensus decision-making,
work until the early hours of the morning and teamwork have been presented as the
and spend the night at the office, which is trademarks of Japanese management.
often bigger and better furnished, cooled,
and heated than his apartment.
EMPI ‐ GBE
Japanese Style Management – Japanese Style Management –

Long-term View – (1/2) Long-term View – (2/2)
• Successful Japanese corporations tend to • The practice of life-time employment, at
focus on long-term goals while U.S. one time prevalent in some Japanese
corporations emphasise short-term profit. industries, has given way to long-term
These long term goals manifest in the employment. However, the initiative
expenditure of large sums for research Japanese companies have taken to
and development and the esteem develop people and professional career
Japanese corporations hold for their paths is evidence of remaining long-term
workers. human resources commitments.
EMPI ‐ GBE
1
9/11/2017

Process Culture – (1/2) Process Culture – (2/2)
• The term process culture comes from a • A by-product of this process culture is that
focus on how the work gets done, rather Japanese managers expect and reward
than the end result. Though this concept effort, even though it may not immediately
has been criticised, it has been extremely result in short-term gain. (More evidence
successful in the manufacturing and high- of long-term view.) That’s not to say that
tech fields: areas where it is clear that a the goal is not important. However,
focus on how the pieces fit together or recognition is given for effort and value
how a product is built from the ground up placed on what is learnt from mistakes.
results in a higher-quality product.
EMPI ‐ GBE

(1/4) (2/4)
• Planning in Japanese companies often • Considering the essential nature of
requires a long time from conception to capitalism, that "the capitalist selects the
implementation, so that a company of this manager”, and unless he increases profits
kind may not conform to the interests of quickly, he will be fired. In Japan, however,
capitalism has no capitalists. Nobody
shareholders who expect high dividends imagines the president of Mitsubishi
quickly.# Corporation has been selected by its
shareholders.
EMPI ‐ GBE

(3/4) (4/4)
• Many companies speak of their social • In Japan, the number of shares held by
responsibilities, but not of the individual stockholders is extremely small, and
responsibilities to their shareholders. This for each listed company, an average of 10
may not be perceived as a good thing in institutional shareholders, mainly banking
the rest of the world; on the other hand, institutions, hold the overwhelming majority of its
one could say precisely because this is the stocks. It is common for companies to hold each
way it is in Japan, Japanese companies other's stocks. For this reason, Japanese
have achieved prosperity and increases in capitalism is often referred to as "trust
productivity" capitalism" or "no-capitalist" management
capitalism.
EMPI ‐ GBE
2
9/11/2017
Theory Z – (1/3) Theory Z – (2/3)

• Theory Z is the name applied to the so- • Theory Z focused on increasing
called "Japanese Management" style employee loyalty to the company by
popularized during the Asian economic providing a job for life with a strong focus
boom of the 1980s. In contrast, on the well-being of the employee, both on
• Theory X,
X which stated that workers and off the job
job. According to Dr
Dr. William
inherently dislike and avoid work and must Ouchi, its leading proponent, Theory Z
be driven to it, and management tends to promote stable
• Theory Y, which stated that work is natural employment, high productivity, and high
and can be a source of satisfaction when employee morale and satisfaction.
aimed at higher order human
psychological needs, (continued)
EMPI ‐ GBE
Japanese Management – Contribution

Theory Z – (3/3) to Quality
• Characteristics of the Theory Z • Japanese management has brought in such
revolutionary concepts as:
– Long-term employment and job security
– PDCA – Plan-Do-Check-Act
– Collective responsibility – Quality circle
– Implicit,
Implicit informal control with explicit explicit, – TQM – Total Quality Management
formalised measures – Kaizen
– Collective decision-making – Poka-Yoke – Failsafe products
– JIT – Just in time
– Slow evaluation and promotion – Taguchi method
– Moderately specialised careers – Jidoka
– Concern for a total person, including their – Hoshin Kanri
family
EMPI ‐ GBE
Kaizen Jidoka
• The term is currently more popular than Q • Dr J Taguchi’s Quadratic Loss function -
C Circles, but the two are essentially the – Through this concept it can be shown that all
variability is a cost irrespective of its impact on
same despite attempts by advocates of specification limits. The objective, therefore, is to
Kaizen to imply otherwise.
otherwise Originally,
Originally the reduce variability at least to parts per million levels in
term Kaizen was adopted by Nissan all functions of an organisation.
probably to appear not to be following • Jidoka
Toyota. The same applies to the term – Often used when Kaizen has been fully developed is
a concept through which individual operators have the
‘Just in Time’. Nissan prefer the term authority to stop production when defects are
‘Stockless Production’. identified.
EMPI ‐ GBE
3
9/11/2017
Hoshin Kanri – (1/2) Hoshin Kanri – (2/2)

• The Big Idea – Align company goals • This is the process of Strategy
(Strategy) with the plans of middle Development and Policy Deployment.
management (Tactics) and work Western organisations sometimes refer to
performed by employees (Operations) to it as Hoshin Planning,
Planning Hoshin
ensure that everyone is pulling in the Management and the deployment process
same direction at the same time. using Robert Kaplan & David Norton’s
Balanced Score Card or variants. This is
incorporated into QS 9000.
EMPI ‐ GBE
Poka-yoke [poka joke] – (1/2) Poka-yoke [poka joke] – (2/2)

• It is a Japanese term that means "fail- • The concept was formalised, and the term
safing", "Foolproof" or "mistake-proofing" adopted, by Shigeo Shingo as part of the
— avoiding (yokeru) inadvertent errors Toyota Production System. Originally
(poka)) is a behavior-shaping constraint, described as Baka-yoke, but as this
or a method of preventing errors by putting means "fool-proofing" (or "idiot proofing")
limits on how an operation can be the name was changed to the milder
performed in order to force the correct Poka-yoke.
completion of the operation.
EMPI ‐ GBE
The Taguchi Loss Function – (1/5) The Taguchi Loss Function – (2/5)
• Dr J Taguchi’s Quadratic Loss function • The Taguchi loss function is graphical
- Through this concept it can be shown depiction of loss developed by the Japanese
that all variability is a cost irrespective of business statistician Genichi Taguchi to describe
a phenomenon affecting the value of products
its impact on specification limits.
limits The produced by a company. Praised by Dr. W.
objective, therefore, is to reduce variability Edwards Deming, it made clear the concept that
at least to parts per million levels in all quality does not suddenly plummet when, for
functions of an organisation. instance, a machinist exceeds a rigid blueprint
tolerance.
11/09/2017/ P.K. Sarkar //
EMPI ‐ GBE
4
9/11/2017
The Taguchi Loss Function – (3/5) The Taguchi Loss Function – (4/5)
• Instead 'loss' in value progressively • The concept of Taguchi's quality loss function
increases as variation increases from the was in contrast with the American concept of
intended condition. This was considered a quality, popularly known as goal post philosophy,
the concept given by American quality guru Phil
breakthrough in describing quality
quality, and Crosby. “Goal post” philosophy emphasises that
helped fuel the continuous if a product feature doesn't meet the designed
improvement movement that since has specifications it is termed as a product of poor
become known as lean manufacturing. quality (rejected), irrespective of amount of
deviation from the target value (mean value of
tolerance zone).
EMPI ‐ GBE
Quality Circle or Quality Control Circle

The Taguchi Loss Function – (5/5)
– (1/2)
• This concept has similarity with the concept of • A quality circle or quality control
scoring a 'goal' in the game of football or hockey, circle is a group of workers who do the
because a goal is counted 'one' irrespective of same or similar work, who meet regularly
the location of strike of the ball in the 'goal post',
whether it is in the centre or towards the corner.
to identify,
identify analyse and solve work-related
work related
This means that if the product dimension goes problems. Normally small in size, the
out of the tolerance limit the quality of the group is usually led by a supervisor or
product drops suddenly. manager and presents its solutions
to management;
EMPI ‐ GBE
Quality Circle or Quality Control Circle

– (2/2)
• Where possible, workers implement the
solutions themselves in order to improve
the performance of the organisation and
motivate employees.
employees Quality circles were
at their most popular during the 1980s, but
continue to exist in the form
of Kaizen groups and similar worker
participation schemes. ##
11/09/2017/ P.K. Sarkar //
EMPI ‐ GBE

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9/11/2017

A Typical Japanese Worker – 1/2

A Typical Japanese Worker – (2/2) Japanese Style Management

Japanese Style Management – Japanese Style Management –

Japanese Style Management – Japanese Style Management –

Japanese Style Management – Japanese Style Management –

Japanese Style Management – Japanese Style Management –

Theory Z – (1/3) Theory Z – (2/3)

Japanese Management – Contribution

Hoshin Kanri – (1/2) Hoshin Kanri – (2/2)

Poka-yoke [poka joke] – (1/2) Poka-yoke [poka joke] – (2/2)

Quality Circle or Quality Control Circle

Quality Circle or Quality Control Circle

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