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1. WORLD CLASS MANAGEMENT PRACTICES BY: 1

2. ABOUT THE BOOK Paperback :  85 pages Publisher:  Vinod Vasishtha for Viva books Pvt. Ltd. Ansari road New Delhi India Language:  English ISBN-10:  1560525517 2

3. ABOUT THE AUTHOR Lchigen Watanable is a professor of management at Tsukuba international university in Japan. Professor Watanabe receives a Master’s degree from the Division of social Science at the University of Chicago. He worked for IBM Japan as manager of personal system planning, Internal Audit, Venture Management and other functions. He is affiliated with various professional organizations in Japan, including the Business Research Institute, Japan Society of Security Management, and Japan society for Business Ethics Study. He is the author and translator of many books and articles including: M anagement Alert Information Security and Systems Auditing Manual. 3

4. 1. JAPANES MANAGEMEMNT  BACKGROUND AND HERITAGE When we discuss Japanese management, we must first understand the unique geography of Japan, which has influence the character of Japanese management practices. The country is only 4 percent of the size of the United States. It is a densely populated island country. It has four major islands and 126 million people are crowed into these small islands. Two – third of the entire land area is mountainous or covered in woodland, leaving only one – third for living areas. The population density per 100 acres is 134, in contrast to 11 for the United States. 4

5. CHARACTERISTICS OF JAPANESE COMPANIES Through the growth of Japanese companies overseas, other countries have learned about four characteristics that made these companies so strong and effective: Demand for quality Demand for enthusiasm Emphasis on growth Family – like cohesiveness 5

6. DEMAND FOR QUALITY Quality is essential for the Japanese. There is no compromise for them on this point. Quality means ‘defect free”. A Zero – defected rate is absolutely required and pursued. A 95% hit is not acceptable. If you are not quality minded, you will not be accepted as a member of Japanese society . In Japan, quality is a virtue and is the highest value in society and in industry. 6

7. DEMAND FOR ENTHUSIASM In a group society, enthusiasm provides the energy that people have for team spirit. There is willingness to achieve mutual objectives together, positives and affinity with others, and group empathy. In Japan, if you don’t show your enthusiasm and go for action, you cannot be part of the team.   Matsushita Electric Corporation of America (MECA), Matsushita Electric Industrial Company’s U.S. subsidiary, follows the Japanese way by encouraging in its employees: A thirst for learning A compulsion to share A bias for action 7

8. EMPHASIS ON GROWTH Emphasis on Growth The 1980s was an era of growth, and Japan was the champion of rapid growth at that time. Growth involves taking the long – term approach. Family – Like Cohesiveness Belongingness, affinity, and oneness are virtue of Japanese corporate culture. These qualities maximize team strength. Employees, company unions rather than industrial unions, suppliers and vendors are part of the family. 8

9. KEIRETSU A keiretsu is a corporate group consisting of subsidiaries , related companies, vendors and suppliers, all in some way related to or part of the same company. Today there are six keiretsu in Japan: Dai – ichi Kangyo Fuyo (Fuji) Mitsubishi Mitsui Sanwa Sumitomo 9

10. RELENTLESS COMPETITION Although “Japan Inc.” may describe Japan overall. Fierce competition does in Japan. Examples included Sony versus PANASONIC, Kirin Beer versus Asahi Beer and eleven automobile makers competing for Japanese customers. This competitive spirit also shows up against local competitors overseas. 10

11. LONG – TERM INVESTMENT Growth can be measured in different ways. It could mean growth in sales or profit. Or it could be growth in market share. A company should not always try to make quick money. Why not invest now and wait patiently? Start making a few dollars at first and later win a large share of the market. 11

12. ACCEPTANCE OF DIFFERENCE Japanese marketing started from zero after World Was II, eventually including efforts to sell electronic products automobiles, cameras, and facsimile machine. Japanese had to adjust themselves to local needs. They spoke broken English and worked from early morning till late night during weekends. They had no other choice but to accept local demands and customs in order to develop sales. 12

13. ACCEPTANCE OF DIFFERENCE An international marketer must recognize differences and act accordingly. To overcome the difference culture, marketing need to learn the new culture and accept it bravely, not showing any “take – charge” attitude or insisting on the ways of their own culture. There is a formula for successful international business: D+P + S! The formula says: accepting difference plus patience equal success! 13

14. CHAPTER -2 COMPARISON OF JAPANESE AND WESTERN MANAGEMENT 14

15. MANAGEMENT PHILOSOPHY AND BEHAVIOR There are some fundamental management difference between Japan and the West based on social and culture influences. These differences are in management attitude, decision making and management communication. 15

16. MANAGEMENT ATTITUDE One of the key management philosophies in Western society is management by results. Companies confront mega – competition worldwide. Market you produce more and better results. It is a zero – sum game - win or lose. Top management is determined to be results oriented. In contrast, the Japanese, attitude is to show hard work sincerity, enthusiasm, and dedication to work. Behavior is a virtue and a work ethic. Results come from behavior. Behavior is a process. Quality management is process management. 16

17. DECISION MAKING Decision making in the Western world is top – down, meaning that all important decisions are made by top management. Delegations of responsibilities are carried out in the corporate structure, but each delegation is by – top – down decision. In contrast, the Japanese style is bottom – up. All important decision are made through consensus, starting from middle management to higher levels, and from one department to another. 17

18. MANAGEMENT COMMUNICATION What is a company made of? In the Western concept, it is an organization structure with jobs. There are jobs to be done in the company. Communication must be full. Accurate, and timely. It must reach all the management and employees concerned on a need – to – know basis. In the Japanese sense, the company is made of people who are striving to contribute to the company. In this environment, the instill trusting relations among the people in a cohesive group management. 18

19. WORKING SYSTEM In the West, the working system in the company is based on individual incentives, whereas group management is the basis for Japan. Group management is especially effective in the manufacturing industry. Quality products made just – in – time are the result of highly – motivated group work. In the western concept, there are job first, to filled by people ( I e., jobs – to – people). In Japan, there are people first, fill the jobs ( i . e., people – to – jobs). 19

20. PLANNING SYSTEM In the western world, planning is management’s task. The manager is responsible for setting up departmental targets based on the corporate objectives stated by top management. In contrast, planning is a task for all members of the company in Japan. First, top management policy ( hoshin ) is laid out consisting of company goals and the strategies. To achieve them. 20

21. PLANNING SYSTEM Comparison of Japanese and Western management practices 21 Western management Japanese management Management attitude Result oriented Behavior oriented Decision making Top – down Bottom – up Management communication Formal Informal Working system Individual Group Job Assignment Jobs to people People to jobs Job Description Clearly defined Unclear & uncertain Planning System Top – down short term Top - down/ bottom – up long term

22. CHAPTER -3 GROUP MANAGEMENT 22

23. TRADITIONAL GROUP MANAGEMENT Three elements support conventional group management in Japan: the seniority system, lifetime employment, and company unions. Seniority System Lifetime Employment Company Unions 23

24. SUMMARY Group management in Japan has deep roots in Japanese culture and history. Japanese companies are changing their group management style toward professional individuals combining their efforts in teamwork and team spirit to compete successfully in the changing business environment. Corporate America is also encouraging teamwork in its operations. A new type of group management and teamwork is becoming a global trend. 24

25. CHAPTER -4 TOTAL QUALITY MANAGEMENT (TQM) 25

26. TOTAL QUALITY MANAGEMENT (TQM) Quality used to be a special feature and an additional value for the customer. It was a synonym for excellence and differentiated the excellent product from others.   Quality used to ensure the mechanical reliability, accuracy, and durability of products in operation or at work. It now offers more than usability. Quality gives customers comfort, satisfaction, luxury and prestige. Product and service quality provide quality of life today. 26

27. QUALITY MANAGEMENT IN JAPAN In 1954, a statement known worldwide was made: “Quality control is an integral part of management.” This assertion was an important step toward total quality control (TQC) which later became TQM . TQC. Form its infancy, was more for workplace activity with an emphasis on spontaneous QC circle as the basis for quality improvement TQM is essentially the same as TQC but is more management oriented with an emphasis on management leadership. 27

28. QUALITY MANAGEMENT IN JAPAN Both TQM and TQC aim at overall organization development but with different approach; TQM involves a management – driven, download approach; TQC involves an employee – driven upward approach. Japan unified TQM and TQC recently under the single name of TQM. TQM in Japan goes back to 1946, when the union of Japanese Scientists and Engineers (JUSE) was established. JUSE started quality control basic course throughout Japan in 1949. 28

29. QUALITY MANAGEMENT IN USA In the United States, the Malcolm Baldrige Award was started in 1987, The Award promotes quality products made in the United States. The Award is applied not only to manufacturing companies, but also to service companies and to small enterprises.   In the United States, quality is to be evaluated as the return on the investment in quality. Quality is the result of balanced management as expressed in return on quality (ROQ), similar to ROA or ROE. This concept is new to TQM and has yet to be explored further. 29

30. QUALITY MANAGEMENT IN EUROPE A rapidly growing international program is the international Organization for standardization (ISO) 9000 series of standards that began in Europe in 1987. These standards emphasize documentation in quality management as compared with TQM in Japan which focuses on employee activities. A recent standard is ISO 10006 (Quality Management – guidelines to Quality in Project Management) project management has become an important management practice, used widely in business process reengineering.   30

31. WHAT IS QUALITY CONTROL Quality control is based on several basic principles: Quality first Think and act from the customer’s point of view The next process is the customer Talk with data and facts Management by respect for people 31

32. WHAT IS QUALITY CONTROL Goals of Total Quality Management : The company will be able to develop, produce and market products that consumers will accept. TQM will convince all managers and employees to focus on how to do it, rather than on why it can’t be done. TQM will give the company the strength to survive under any hardship, as the company will have quality management and quality employees. 32

33. CHAPTER -5 KAIZEN 33

34. KAIZEN KAIZEN (pronounced ky’zen ) is a Japanese term for improvement. Specially, it means continuous, incremental improvement in a company’s products, manufacturing processes, methods and procedures. It is one of the most important management tools in many Japanese companies. 34

35. KAIZEN AND QC CIRCLES 35 KAIZEN QC CIRCLE Individual activity group activity Self – improvement group improvement Daily improvement periodic improvement

36. KAIZEN AS MANAGEMENT PRACTICE Recognized as human beings. Proud of their jobs. Listen to by their managers. Evaluated fairly and equally. Motivated to feel belongingness. 36

37. CHAPTER -6 JUST-IN-TIME 37

38. JUST-IN-TIME Just – in – time is a production system aiming for zero inventory and yet assuring that parts are available for assembly when needed, not only “just in time.” But first, why is zero inventory so important? The answer is obvious: to beat the cost. 38

39. JUST-IN-TIME CONCEPT The just – in – time production system was born in Japan, based on the stringent cost – management system. A system to ensure the safe and timely deliver of economically priced and good quality products that meet the customer’s needs and wants. It methodology is to make certain the availability of the necessary amount of the necessary parts for production only when needed. 39

40. CHAPTER -7 LEAN PRODUCTION 40

41. LEAN PRODUCTION CONCEPT Lean production original in Japan as an alternative to mass production, but it soon became more than a production system. In today’s age industrial restructuring, lean production is an effective management tool to build a strong, tenacious, and corporate organization and operations to cope with keen competition. 41

42. STRATEGIES FOR LEAN PRODUCTION Lean production is the best available production system for winning in today’s era of mega – competition . Lean production may evolve systems such as lean research and development, lean design, and above all, lean management and organization. 42

43. CONCLUSION This book emphasis on four key management practices: Group Management. Total Quality Management Kaizen Just-In-Time This emphasis enable readers to understand the concept of Japan’s Mgt tools i.e TQM, TQC Lean Production Overall book is very useful and full of knowledge 43

44. THANK YOU