The New Shop Flow Management

Empowering People For Continuous Imporvement

Group – 3 (Book Review)

Group 3 Members

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Introduction
Business environment changes

Simple, Certain, Stable, Predictable  Complex, Uncertain, Turbulence, Unpredictable

• management practices and perspectives also vary in response to these changing

environmental forces.

• Taylor proposed scientific management which emphasizes scientifically determined

jobs and management practices as the way to improve efficiency and labor
productivity.

• It ignores the social context and worker’s needs, it can lead to increased conflict and
clashes between managers and employees.

• The Kihoshi Suzaki’s book “The New Shop Floor Management” attempts to
address the organization’s need viewing from shop floor up rather than only from the
top down.

• The existing gap between top management and the shop floor to be narrowed
 The New Shop Floor Management
About Author
• The author, Kiyoshi Suzaki worked as manager and engineer at Toshiba
Kiyoshi Suzaki
• As consultant at the Boston Consulting Group
• Later he worked for U.S firms
• Visited hundreds of companies in over twenty countries providing seminars
and consulting services.
• Met with many people from different countries who read his previous books
and got the many people’s ideas about the problems at the shop floor and by
sharing thoughts.
• Writing this book is then a process of interpreting all of these people’s ideas
combined with his own.
Why Author write this book
• To explore maximum potential of people at the shop floor

• To figure out ways to address problems

• To develop an organization based on actual needs, rather than on a predetermined point of view.

• To share new perspectives on shop floor management

• To provide pragmatic approaches for increasing people's self-managing capabilities

• To achieve the ultimate process control by “Making people before making products”

• To improve each person self-managing capabilities

• To address individual’s need, as both internal and external customers to the company, practiced in relation to
each person (man), each machine, each specific method, each material and environment.
Six Major Elements
• Develop clarity in vision (Core Value)

• Develop customer orientation

• Promote involvement of everybody

• Increase problem-solving capability

• Provide adequate leadership

• Clarify the management support system

Developing A Vision
• To Understand characteristic of today’s business

• Should be able to hold a vision of excellence

• Develop self-management skills

• Need to control QCDSM

• Change our destiny (Behavior change Model)

• To reach vision
• Develop customer orientation
• People involvement of everybody
• Increase problem-solving capability
• Provide adequate leadership skill
Developing Customer Orientation
• One of the most important points to realize our vision of excellence is our attitude toward
customers.

• These customer-supplier relationship applies not just to the flow of material, but also to the
flow of information, as well as to such industries as service or construction.

• Key Criteria in satisfying customer’s need continuously

• Quality (high)
• Cost (less)
• Delivery (timely)
• Safety
• Morale
The next process is the customer
• The next process should always be regarded as the customer

• Refers to two types of customers: internal and external

• When everyone in the organization practices this, the external customer will receive a high
quality product or service as a result.

• If everybody is customer oriented, they also benefit since the customer –supplier relationship is
a closed loop system.
Involvement of Everybody
• Everybody is the president of his or her area of responsibility

• Making people before making products.

• People are the owners

• A customer-oriented organization should be a people-oriented organization

• A major role of managers in a people-oriented organization is to develop people’s capabilities

• Mini-company concept
Involvement of Everybody
• Mini-company concept

• Mini-companies may be established at all level of the organization as everybody has

customers, suppliers, bankers and employees. For operators, their employees may be their
tools, machines, system etc.

• Each mini-company’s mission will be closely linked to the overall mission

• It requires everybody’s cooperation to practice the basic standards (SOP), whether or not one
can practice certain standards ultimately reflects the value of each person, which in turn reflects
the values of the organization.

• Only when we practice and upgrade SOP and people’s skills, we can progress further.

• To practice open minded attitude

• Think positively/be flexible/think as a group/ be persistent/ no end for improvement
Problem Solving
• On the shop floor, problems are every where related to QCDSM

• To accomplish our mission and satisfy our customer with minimum waste.

• Willpower of Self improvement, broadening skills and mutual learnings are important

• Don’t think too big from the beginning

• Ask why repeatedly

• An important role of manager is to coordinate all these activities on the ongoing basis
Problem Solving
• In order to manage our shop floor better, we need a good balanced capability to practice each
of these steps well

Experimentation with
Idea Generation
Idea

Recognition of Standardize
Problem

Check Effectivness
Problem Solving
Leadership for Continuous Improvement
• Every steps in the SFM needs leadership because SFM is people oriented approach

• Leadership ability requires a combination of challenging spirit, creativity, perseverance,

communication skills, and trust. It should require life long practice and it is more a process of
training our mind rather than acquiring specific techniques

• In today’s business environment, Leadership is situational rather than dependent on titles or

responsibility i.e supporting or directing or coaching or delegating depending on his people’s
competency and collaboration.

• Even under difficult circumstances, effective leadership can encourage to overcome his people
positively and drive moving forward.
Management Support System
• Management support system is necessary to utilize the best resources we have

• To help “break the barriers” by coordinating, cooperating and communicating better among
different groups within the organization.
Management Support System
• Goal setting (top-down, bottom-up and cross-functional planning)

• Management Cycle (PDCA)

Traditional & Progressive Management
Black Box Glass Wall

Top Management Work hard to manage Work hard to lead

Result Oriented Result & Process Oriented

Short-term oriented Long term oriented
Use people as machine View people as source of creativity
Middle Management Specialized in certain field Have broader view

Do not share knowledge Share knowledge & experience

Do not help others Help others

Direct people to get things done Lead, empower people to be done

Protect the current job Try to eliminate the current job

Traditional & Progressive Management
Black Box Glass Wall

People at Shop Floor Not asked to use brain Encourage to use brain

No ownership Have ownership of what they do

Creativity is hidden Creativity is exposed
Small share of Contribution Large share of Contribution
Benefits of Shop Floor Management

• Increased operational efficiency through standardization of operations.

• Reduction in occurrence of errors in work.
• Revealing of loopholes in production or processes.
• Increases productivity of the staff.
• Positive impact on the revenue of a manufacturing business.
Conclusion

• All key management points of SFM must be interlinked and interrelated.

• Gap between Top management and Shop floor to be narrowed
• Improve the human creativity and capability
• Not only checks our own performance effectively but also inform our bankers of our progress
• Can identify problem and opportunities in a timely, effective and responsive way
• Organizational growth can be sustained in the modern turbulent business environment
Analysis (Book Review)

• Writing style is simple and organized, easy to understand

• Effective sketch and example
• Detail description in checklist and template
• Simultaneous Growth in both organizational and individual development
• Useful for SME and Start up business
• Limitation to apply (culture, nature of business, individual acceptance)
• Emphasized only in production industry, not in other industry
Thank you