Comparing Management Philosophie
Ever since the Industrial revolution there has been a continuous effort made by Organizations o create Systems to manage their organizations better. There are two prominent, contrasting philosophies and Systems around them which I choose to discuss today. Though they are contrasting, counter-intuitively, they are both equally successful in the Business World.
The first of these, is Kaizen; the philosophy that believes in continuous improvement through small changes. The other re-engineers the whole corporation and uses the confluence of divergent-convergent thinking to arrive at radical solutions and improvements.
KAIZEN: Japanese Philosophy for Continuous Improvement through PDCA (Plan-Do-Check-Act) Cycle
Kaizen promotes continuous improvement through change
– Kaizen is a Japanese philosophy focused on identifying inefficiencies and areas of improvement in systems and processes.
– It emphasizes that consistent change will lead to greater results and output.
Kaizen focuses on continuous improvement
– Kaizen was introduced to American industries post World War II to reduce waste and increase efficiency.
– Toyota integrated Kaizen into their production pipeline to catch and eliminate issues, resulting in a highly efficient system.
Kaizen is adopted through the Deming cycle for iterative improvements.
– The Deming cycle involves four key steps: plan, do, check, and act.
– Plan involves establishing the process for achieving goals, do is executing the plan, check is assessing the process and results, and act involves making necessary improvements.
Continuous improvement through PDCA cycle
– PDCA cycle involves plan, do, check, and act
– Continuous loop of improvement with no end, always something to improve upon
Kaizen promotes continuous improvement through small changes
– The philosophy emphasizes setting clear goals and standards for achieving them
– It aligns with the concept of marginal gains, focusing on constant one percent improvement
Kaizen focuses on identifying and eliminating waste in work.
– Kaizen is effective in improving productivity and output.
– Waste elimination can involve auditing time spent on tasks or improving task management.
Continuous improvement through process assessment
– Efficiency improved by batch filming to save time on equipment setup
– Continuous assessment will lead to further process optimizations
Implementing kaizen emphasizes continuous improvement.
– Kaizen reminds us to focus on continuous improvement rather than just big goals.
– Approaches emphasizing long-term development and constant learning lead to success.
A contrasting approach is
“Business Process Re-engineering: Radically Redesigning Organizational Performance”
Business Process Re-engineering aims to simplify and optimize existing systems.
– In the 1980s, Ford Motor Company’s accounts payable employed over 500 people, understanding the need to streamline processes.
– Ford Motor Company analysed their existing purchasing system, which was found to be overly complicated and time-consuming, requiring extensive manual matching of documents and chasing various stakeholders for payments.
Business Process Re-engineering aims to radically improve organizational performance by redesigning processes.
– Ford achieved a 75% reduction in headcount by implementing BPR.
– BPR involves radically redesigning business processes to improve efficiency and effectiveness.
Business Process Re-engineering involves redesigning processes and structures.
– Structurally BPR follows a three-step process of analysis, design, and implementation, with each step being equally important.
– Michael Hammer and James Champion proposed key steps for carrying out BPR, including process identification, review, and design of improvements with KPIs.
Implement process improvements and review periodically
– Keep relevant stakeholders in the loop and review the entire redesign process periodically
– Focus on outcomes instead of tasks, define outcomes clearly, and combine jobs for optimal achievement
Business process re-engineering principles explained
– Assign those who use the process output to perform the process, reducing risk and unnecessary involvement
– Integrate information processing into the real work and treat geographically dispersed resources as centralized for efficiency
Procuring in bulk can lead to better prices
– Bulk procurement can lead to better prices for items like coffee machines or milkshake machines
– Linking parallel activities ensures optimal project management and product development
Business Process Re-engineering improves efficiency and decision-making.
– Project and line managers need to take responsibility for monitoring results and making decisions without relying on others.
– Information should be captured once and at the source to reduce errors and improve efficiency.
Business Process Re-engineering involves drastic changes with potential negative effects.
– Potential negative effects include large-scale layoffs, radical changes to corporate culture, opposition to change, declining staff morale disruptions, and disorders.
– Many companies now choose more gradual and innovative approaches, incorporating changes slowly and logically with more people on board.
