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PLUS

Amoeba Management
Lessons From Japan’s Kyocera

Summary based on the article published in


By Ralph W. Adler and Toshiro
Hiromoto September 18, 2012
Kyocera (Japan) PLUS

• Founded in 1959 as Kyoto Ceramic Co. Ltd


• Produces a range of industrial ceramics,
semiconductor components, electronics devices
and information and telecommunications
equipment.
• Key results : March 2012
– Revenues of $14.5 billion
– Net income of $1 billion
– and employed more
than 70,000 people
• March 2012 — represented Kyocera’s 53rd
consecutive year of profitability.
Amol Gupta ©
Amoeba PLUS

• Single cell (unicellular) organisms


• move in search of food by extending
cytoplasm outward to form
pseudopodia (false feet).
• They have thin cell membranes, a
semirigid layer of ectoplasm, a
granular, jellylike endoplasm, and an
oval-shaped nucleus.
• A reaction to chemicals in their food
(smaller organisms) cause the
amoeba to form pairs of pseudopodia
which wrap around the organism
being eaten, and a cavity is formed.
• A mature amoeba reproduce by
splitting into two equal parts, each of
which split into two more equal parts
when they have matured.

Source : http://tutorskingdom.com/biology-assignment-help-4/amoeba/amoeba-characteristics/
Amol Gupta ©
PLUS

• 3000 amoeba’s.
• Every amoeba is an independent unit with 50
employees.
• Operate independently and develop own ways
of working with other amoeba’s to achieve
profitable growth.
• All transactions on cash basis thus avoiding
need to account for inventories and accurals.
• Make adjustments to price, Quality, Delivery
schedules.

Amol Gupta ©
Elements PLUS

• Formal Daily meetings


– Plan vs Actual.
– Review upcoming months budget
– Discuss prior days output.
– Brainstorm Ideas for continuous improvement.

- Machine operators and below attended average 30 minutes of meeting a day.

-Leaders and Vice Presidents attended formally scheduled meeting for around 45 to
60 minutes of meetings per day.

Amol Gupta ©
Elements PLUS

• Conflict Resolution
– Inter amoeba meetings.
– Individuals put organisations Interest above own interest.

• Simplified Accounting System


– No Labor cost !

• Kyocera Culture
– Individuals put organisations Interest above own interest.
– Employee selection process – Humility, Work Ethic
– Reference.
– Formal Interview.

Amol Gupta ©
Elements PLUS

• Profit Sharing
• Training
– Induction in Inamori’s management philosophy.
– Values re-inforced during meetings.
– Decision making compass.
• Trust and Transparency
– Information Sharing…even financial.
• Individual Contribution measurement.
– “hourly efficiency” = Value added / Labor hours
worked.
– Electronic Bulltein display – real time actual results of
the factory.
Amol Gupta ©
Risks PLUS

• Inamor’s Warning Influence.


• Burnout.
• High Challenge factor

Amol Gupta ©

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