Thursday, November 17, 2016

Review of Total Productivity Management

Review of Total Productivity Management
Yoshiro Saito, JMA Consultants Inc., Tokyo, Japan
Masanaka Yokota, JMA Consultants Inc., Tokyo, Japan
Chapter in Maynard's Handbook of Industrial Engineering, 5th Edition, 2001
Total productivity management (TP management) provides a system for coordinating all the various improvement activities occurring in a company so that they contribute to top management’s goals for the entire company. Starting with a corporate vision and broad goals, these activities are developed into supporting objectives, or targets, throughout the organization. The targets are specifically and quantitatively defined.   The chapter describes how to introduce, develop, and expand a TP management program.

TP management is, in a sense, a top-down program because it always starts by identifying the goals of top management. The strategy and business plan of the company are the basis for developing the productivity policy, that specifies the productivity goals.

Saito and Yokota advocated that TPm employ the following concepts:

● Break away from conventional internally oriented, comparative productivity campaigns that seek incremental improvements, and instead focus on achieving ambitious new targets.
● Change from kaizen activities, which build up incremental improvements, to an approach
based on an image of the ideal—seek extreme results.
● Pursue the concept of the ideal total system.
● Apply management technology in a systematic and theoretically correct manner.

TP management also requires that each company develop and establish its own original management system. The concepts underlying TP management offer a new way of thinking about productivity.
What is evident is that TP management derives its targets from the overall plan and is working out in a top down approach to achieve them. The bottom up spontaneous improvement activities are to be encouraged but have to dovetailed into supporting the TP targets. TP management is a proven technique according to Saito and Yokota and they claim that their organization had 10 years of experience in providing management guidance to organizations in implementing TP management.
The focus of TP management is extended from company profits to customer satisfaction, employee satisfaction and even social satisfaction.

The improvements are classified into two external deliverables and internal structural improvements.
Productivity management is a primary focus area for IE departments and they have to adopt this TP management approach to serve their organization in a strategic manner.

The TP management program of a company is described by the author. The TP program seeks to achieve the following goals:

1. Clarify the objectives that the company (or business unit) as a whole should pursue, focus
and work simultaneously toward accomplishment of the objectives.

2. Create an organization that can take the general, company-wide objectives and systematically
develop them into specific targets, based on confirmation of which activities are most
important for accomplishing corporate goals (IE department needs to teak for this purpose).

3. Create and standardize a three-level process, in which (1) general objectives are developed
into (2) individual targets, which are then translated into (3) plans and activities. This
process ensures that each plan and activity advances individual objectives and targets that
are in accordance with management goals (These department wise targets assigned to operating departments  as well as IEs working for those departments).

4. Take advantage of the strengths and capabilities of all employees in the organization and
challenge them to contribute and  grow. Then, make it clear to them how their actions are contributing to the targets and objectives.This will increase their eagerness to participate in improvement activities.

5. Create a strategic management system that can adapt to changes in the business environment
and at the same time obtain dramatic improvements in business results based on management’s design.

Saito and Yokota have not specifically identified the role of IE department in this activity. As this is a part of IE Handbook, the editors must have asked the authors to customize it for application by IE departments.

A brochure by JMA Consultants on Total Productivity Management
Strategic Administration by Total Productivity Improvement
by Michitoshi Oishi Ph. D., and Miriam Christi Midori Oishi
Top Down Production Management: A Recent Trend in the Japanese Productivity-enhancement Movement
W. Mark Fruin and Masao Nakamua
Total Improvement Management - Brochure
The 2001 Total Productivity (TP) Management Conference was held by JMA on June 18-19 in Tokyo.

Total Productivity Management Prize (TP Prize), the TP Prize is one of the JMA commendations and was established in 1982, commemorating the 40th anniversary of JMA. It's objective is to publicly recognize companies and organizations that achieved excellence in productivity management. 

 In 2001, TP Prizes were awarded to Aizu Plant of Olympus Opto-Electronics Co. Ltd., Internet Systems Platform Division of Hitachi, Ltd; and Display Device Company & DDC Division of LG Electronics Inc. 

 Using TP management, Olympus Opto-Electronics quickly responded to a changing business environment to consistently achieve its stated business goals in endoscope production. Hitachi Ltd. employed TP management to materialize management reform in terms of speed to market in the increasingly competitive personal computer industry. LG Electronics Inc. likewise applied TP management to realize economic value added (EVA) cash flow management.
For year 2003, TP Prize was awarded to Topcon Corp., which also received a special award for TP Management Promotion, Hitachi Global Storage Technologies Philippines Corp., and The Kansai Coke and Chemicals Co., Ltd., Kakogawa Plant. 
Total productivity management: a systemic and quantitative approach to Compete in Quality, Price and Times By David J. Sumanth, St. Lucie Press, 1998
Management Consultants, Inc., Miami
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Productivity Management Articles to be updated

Updated     20 Nov 2016,  12 August 2016,  8 March 2012

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