the practice of lean manufacturing in thailand
TRANSCRIPT
EAST-WEST PHILOSOPHICAL INTEGRATION:
THE PRACTICE OF LEAN MANUFACTURING IN THAILAND
RUNGNIRUNDR RANGSEE
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY IN HUMAN RESOURCE DEVELOPMENT
DEPARTMENT OF INTERNATIONAL GRADUATE STUDIES
IN HUMAN RESOURCE DEVELOPMENT
FACULTY OF EDUCATION
BURAPHA UNIVERSITY
MAY 2018
COPYRIGHT OF BURAPHA UNIVERSITY
ACKNOWLEDGEMENTS
This research was created for studying and also in order to achieve one of
my life goals. It was conducted with many supporters whom I really would like to
thank. First I would like to thank my family, parents, my wife and my son, who
encouraged me.
I would like to thank you Mr. Kuriyama my first boss who gave me the
opportunity to change my life from being a middle management to a senior executive
in an organization. Khun Dhanakorn Kasetrsuwan, The first person who gave the
opportunity to real practice Lean Manufacturing in the organization as a Change
Agent. Also, Khun Waiyavut Laohaworanan who was my first coach in Lean
Manufacturing. Thank you is not enough for Khun Srun Seelasorn who are both boss
and friend who provide Lean ideas effectively.
It was difficult to complete without the support, guidance of several
specialists especially my principle advisor – Dr. Chalong Tubsree who advised and
assisted me to conducting this research. Dr. Anong Wisessuwan my Co advisor who
advised and assisted me to complete the research correctly. I am grateful for all his
and her comments and valuable suggestions, Thank you for Khun Wirat
Kungwansomwong, Mr. Mathew P. Vogel, Khun Weeranarong Onsanit and Khun
Aphichart Sosungnoen who attempted their best to be friend, facilitators, and cheered
me always.
I would like to sincerely thank all of my professors, teachers, friends, and
staff of the International Graduate Studies Human Resource Development Center
(IGHRD), Burapha University for your best efforts in order to facilitate me through
my learning time as a Ph.D. student.
With the best memory, I would like to say my deepest appreciation to all the
participants for your remarkable time, valuable intention, and good will to provide me
with the best comments and suggestions for exploration that also hopefully my
research will be useful to those who are interested and the manufacturing society in
Thailand.
Rungnirundr Rangsee
53820006: MAJOR: HUMAN RESOURCE DEVELOPMENT
Ph.D. (HUMAN RESOURCE DEVELOPMENT)
KEYWORDS: LEAN MANUFACTURING, EAST, WEST, INTEGRATION,
THAILAND
RUNGNIRUNDR RANGSEE: EAST-WEST PHILOSOPHICAL
INTEGRATION: THE PRACTICE OF LEAN MANUFACTURING IN
THAILAND. ADVISORY COMMITTEE: CHALONG TUBSREE, Ed.D, ANONG
WISESSUWAN, Ed.D, 230 P. 2018.
A constructivist paradigm was applied to find meaning for theory generation
and to understand how to integrate East and West philosophy for Lean Manufacturing
in Thailand with the collaboration of five participants who had experience
implementing Lean Manufacturing. A qualitative case study research methodology
was employed to answer the research questions. The researcher selected the
qualitative approach and purposive sampling, in order to value the diverse approaches
to understand how the approaches are adapted. Data were collected from five
executives: (1) A senior manager who has had experience in American, European and
Asian organizations, (2) A senior consultant who has had experience in various
cultures, (3) A senior manager who has had experience in American and Asian
organizations, (4) A senior Lean Manager who has had experience in Asian and
American Organizations, (5) A senior Lean Implementer who has had experience in
American, European and Asian organizations. The researcher used manual coding and
interpreted the data. The major findings of this study were constructed by providing a
comprehensive description as follows: (1) What is the lean manufacturing practices in
the view of a Western organization? (2) What is the lean manufacturing practices in
the view of an Eastern organization? (3) What are the differences in the approaches
between the West and the East? (4) What are the selected approach to be used for
Thailand? (5) Why are those approaches selected? (6) How are the approaches
adapted? In conclusion, the research reported in this dissertation has presented the
“LEAN MANUFACTURING IMPLEMENTATION MODEL” which can be used as
a guide to start or improve Lean Manufacturing execution in Thailand.
CONTENTS
Page
ABSTRACT…………………………………………………….………………. iv
CONTENTS…………………………………………………………………… v
LIST OF TABLES……………………………………………………………… vii
LIST OF FIGURES…………………………………………………………… viii
CHAPTER
1 INTRODUCTION………………………………………………….…… 1
1.1 Background and Rationale................................……….................
1.2 Statement of the Problem…………………………………..…...
1.3 Purpose of the Study…………………………………..……......
1.4 Research Questions……………………………………………...
1.5 Significant the Study…..……..……………………....…………
1.6 Definition of Terms………….....................................................
1.7 Delimitation…………………………………..……………...…
1.8 Limitation…………..…………………………….…………….
1.9 Conclusion……….…………………………………………......
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8
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2 LITERATURE REVIEW………………...……………….…….……… 10
2.1 History of Lean Manufacturing, What is Lean?....………..……
2.2 Lean Thinking or Lean Vision……………...……..…………
2.3 Waste Management: What is Waste?…...….………………......
2.4 Human Resource Management…………………………............
2.5 Human Resource Development…………….…………………..
2.6 Change Management……………………….…………………
2.7 Policy Deployment…………………………………………….
2.8 Organizational Culture………………………………………..
2.9 Hierarchy of Needs Theory……………………………………
2.10 Learning Organization…………………………………………
2.11 Self-Organization………………………………………………
2.12 Strategic Human Resource Management (SHRM)……..…….
2.13 Modern Technology…………………………………………..
2.14 Quality Organization………………………………………….
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CONTENTS (CONTINUED)
CHAPTER Page
3 METHODOLOGY..……………………………………………..……… 67
3.1 Qualitative Method Research Design…….…..………………...
3.2 Selection of Participants……………………....…....…...............
3.3 Data Collection Tools and Methods…………….………...……
3.4 Data Analysis and Interpretation……………………………….
3.5 Trustworthiness…………………………………………………
3.6 Ethical Issues……………………………………………………
3.7 Conclusion………………………………………………………
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4 RESULTS OF DATA ANALYSIS………………….…………………. 86
4.1 Process of the Qualitative Data Analysis………...……..…….…
4.2 Background of Informants…..…….……..…..…….………...…
4.3 Findings from Interviewing…………………………………….
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86
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5 CONCLUSION, DISCUSSIONS AND RECOMMENDATIONS….… 137
5.1 Conclusion…….………………………………………….…….
5.2 Discussion of the Major Findings of the Research…..…………
5.3 Recommendations for Application and Implementation.………
5.4 Recommendations for Further Study……………………………
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REFERENCES……………………………………………………………...……
APPENDICES……………………………………………………………...…….
APPENDIX A…………..………………………………………..…….…..
APPENDIX B………………..……………………………………..………
APPENDIX C…………………..…………………………………..………
APPENDIX D……………………..…………………………………..……..
APPENDIX E…………………..…………………………………..………
APPENDIX F……………………..…………………………………..……..
APPENDIX G……………………..…………………………………..……..
BIOGRAPHY…………………………………………………………..….…...
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LIST OF TABLES
Tables Page
2.1 Types of Learning Organizations……………………………..……..… 57
3.1 Qualitative Research Strategies.………..….………………………...… 72
4.1 Characteristics of the Organizations…..…………….………………… 88
4.2 Career Path and Competition in Organization…….…………….…….. 90
4.3 Organizational Structure...………………………….…………………. 92
4.4 Provisions of Feedback..………………………………………………. 94
4.5 Perspectives on Results……………...…...……………………………. 95
4.6 Perspectives on Leadership…………………………...……………….. 101
4.7 Differences between the Two Perspectives……………………………. 107
4.8 Appropriate Approach to be Implemented in An Organization in
Thailand……………………………………..…..…………………….
109
4.9 The Reason for Choosing this Lean Implementation Method in
Thailand………………………………………….……………………
110
4.10 Problems and Obstacles of the Implementation of the Lean
Manufacturing System………………………..………………………..
114
4.11 Strengths and Weaknesses of Western and Eastern Management...…… 115
4.12 Strengths and Weaknesses of Western and Eastern Management..……. 120
4.13 Suggestions and Model Lean Manufacturing Implementation Step by
Step…………………………………………………………………….
126
LIST OF FIGURES
Figures Page
2.1
2.2
2.3
2.4
2.5
3.1
4.1
5.1
The ADDIE Model…..……………………………………………...
Stages on the Route to Human Development……………………….
Strategic Human Resource Development Process…. ………………
Comparison of Organizational Structures………….………………..
Maslow’s Hierarchy of Needs………………………………..……..
Four Worldviews…………………………………………..………..
The Implementation Model (Mr. Two)……………………………...
Lean Manufacturing Implementation Model……………………….
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CHAPTER 1
INTRODUCTION
This chapter describes the researcher’s background in HRD and the
researcher’s interest in the topic of Lean Manufacturing. The researcher has also
explained the purpose of the study, the scope and significance as well as the
limitations, as well as the definitions of key terms.
1.1 Background and Rationale
The researcher has had work experience in multiple giant companies in
Thailand. Resercher has also jointly invested with large Japanese corporations and
spent time working with Japanese since the researcher’s graduation in engineering,
where the the researcher eventually got promoted to a manufacturing manager.
After that, reseacher had to change to a new workplace due to the shutdown
of the company. Nonetheless, researcher was given the opportunity to become the
plant manager of an automotive parts manufacturing plant, which is 100% owned by
a Japanese entity. While working at this plant, researcher has acquired much
experience from outlining the plant’s floor plan that had no machinery at that time,
and all the way to recruiting competent individuals, until the plant was able to
successfully manufacture products. Meanwhile, the researcher was informed by the
Japanese executive team that the company was implementing a lean manufacturing
system. At that time, researcher still had no clue what lean manufacturing really was.
A few years later, the researcher collaborated with a Japanese giant
electronics company that had adopted a somewhat modern management style.
The researcher worked in the double positions as a manufacturing manager and an
inventory manager, with over 3,000 employees under the researcher’s supervision.
During that time, the company did not refer to lean activities as a lean manufacturing
system. Rather, it referred to these activities as lean tools, such as Kaizen and Visual
Control. Later, Researcher was given the opportunity to implement a lean
manufacturing system in an American furniture company that was co-funded by Thai,
New Zealand, and American investors, holding the position of production director.
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It was the starting point when lean manufacturing was truly adopted by the role of
a leader or change agent. In addition, it was the point when the researcher had become
more interested in a lean manufacturing system and changed reseacher’s research
topic to lean manufacturing correspondingly.
Not so long after working with the American company, researcher
collaborated with one of the three largest automotive parts manufacturers in the world
owned by a German entity, as a Value Stream manager. In addition, researcher had
the opportunity to undergo training on a lean manufacturing system in Australia and
China, after which researcher began to implement the lean manufacturing approach in
the company. Later, researcher acquired a position as a plant manager in a giant
American automotive parts firm, co-funded by Thai investors. As a plant manager,
the researcher acquired various experience in lean manufacturing and had undergone
training in the American style of lean manufacturing, both within the country and
abroad. Until now, researcher is working as the head of operation in a global leading
specialty chemical plant in Thailand.
Through researcher’s past experiences, researcher realized that each firm has
adopted lean manufacturing practices to develop their plant in different aspects and
focused on different areas within each firm’s interest. Accordingly, researcher was
intrigued to identify the best methods of implementing lean manufacturing in
Thailand, under the context of a Thai style, in order to achieve the success all of
which were the origin of this research.
The researcher’s experience of working in a manufacturing organization and
the questions that it raises for me as a manufacturing manager are the starting points.
We have a method of managing that generates initiative among everyone in the
organization to adapt, improve, and keep the organization moving forward.
Liker (2004) explained that The Toyota Production System (TPS) is an
integrated technical system, which was developed by Toyota, and comprises its
management philosophy and practices. The TPS organizes manufacturing and
logistics for the automobile manufacturer, including interaction with suppliers and
customers. The system is a major precursor of the more generic “Lean
manufacturing” developed by Taiichi Ohno, Shigeo Shingo and Eiji Toyoda between
1948 and 1975.
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Originally called “Just-in-Time Production“ it builds on the approach
created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the
engineer Taiichi Ohno. The founders of Toyota drew heavily on the work of W.
Edwards Deming and the writings of Henry Ford. When he came to the United States
to observe the assembly line and mass production that had made Ford rich, they were
unimpressed. While shopping in a supermarket they observed the simple idea of an
automatic drink resupplier; when the customer wants a drink, he takes one, and
another replaces it. The principles underlying the TPS are embodied in The Toyota
Way (Liker, 2004).
The core idea of Lean and TPS is to maximize customer value while
minimizing waste. Simply, lean means creating more value for customers with fewer
resources (Womack, Jones, & Roos, 2007).
A lean organization understands customer value and focuses its key
processes to continuously increase it. The ultimate goal is to provide perfect value to
the customer through a perfect value creation process that has zero waste (Wilson,
2010).
To accomplish this, lean thinking changes the focus of management from
optimizing separate technologies, assets, and vertical departments to optimizing the
flow of products and services through entire value streams that flow horizontally
across technologies, assets, and departments to customers (Womack & Jones, 2003).
Eliminating waste along entire value streams, instead of at isolated points,
creates processes that need less human effort, less space, less capital, and less time to
make products and services at far less cost, and with much fewer defects, compared
with traditional business systems. Companies are able to respond to changing
customer desires with high variety, high quality, low cost, and with very fast
throughput times. Also, information management becomes much simpler and more
accurate (Rother, 2010).
Mann (2010, p. ) said, “You will find there is little ‘coasting’ in lean
management. If you stop following through on any of the three principle elements
because things seem stable and in control, it is certain that you will soon face unstable
and out-of-control processes that require you to reorganize.”
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1.2 Statement of the Problem
It is evidently true that lean manufacturting has been used all over the world,
However, the world is changing, and western world economic domination has
gradually shiffed to the other side of the hemisphere.
The emerging of the Chinese economy, becoming the second largest
economy in the world. Within a decade from now the Chinese economy will become
the biggest in the world. Combining with the current third biggest economy of Japan,
Korea and the strong Indian economy. The Asian economies will be the core of the
world economy.
The business paradigm will certainly shift from Western dominance to
Eastern dominance. The researcher is keen to explore the possibility of the present
time integration of the East and West philosophy concerning the practice of the lean
manufacting and further explore the similarities and differences of the East and the
West including the Eastern world practices, and the Thai lean manufacturing
practices.
Organizations have become World Class Enterprises and remained globally
competitive using Lean as a “system” to achieve the organization’s goals.
They understand that, for organizations to successfully achieve their goals, Policy
Deployment must be used to deploy these goals throughout all parts of the
organization. Lean is then used as the “system” for achieving the required
improvements as stated in the organizational goals part of Policy Deployment (Fayad
& Rubrich, 2009).
As a plant manager, the researcher knows some key factors which influence
good implementation for good Policy deployment and Change management.To
achieve such goals, many companies provide training, such as problem solving
courses, technical courses or others strategies. Each strategy includes tools, working
processes, and resources to support each objective. When this model is deployed it
identifies practices for employees of different functions and roles. Lean Enterprises
can be successful when organizations provide a suitable environment, sufficient
resources, fit learning process, and so on.
Some multinational corporations’ main strategy is cascaded by headquarters.
The standardized pattern is a powerful tool for implementation. The management
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concept is delivered to all locations in each country. It is called global thinking and
practice. But some of them could not be achieved in Thailand.
The question of Mann (2010), Implementing Lean Manufacturing system.
Where to Begin? We should start with Visual control, standard work of the
reorganization which is the question that is raised to me as well.
As a Line practitioner in a multinational company, the researcher believes
that lean manufacturing which has a background from Toyota Production System
(TPS) can bring the organization to the top, and keep it there. But in many
organizations there is an unspoken frustration because of a gap between the desired
results and what really occurs. Goals are set, but they are not achieved. That is the
subject of this research which explains the ways of bringing an organization to be
a Lean Enterprise.
The idea of the objectives and importance of this research paper towards
communities, organizations, or the country has been in the researcher’s mind for
a long period of time. In the researcher’s 23 years of work experience, the word “Lean
Manufacturing” has been mentioned every time when being interviewed for over the
past 6-7 years. What the researcher was worried about the most was not being
informed about the organizations the researcher was going to work for, which led to
not being able to know how to effectively make the organizations grow based on Lean
Manufacturing. Even though the researcher had worked for large co-investment Thai-
Japanese, American, and European companies, all of such experiences did not matter
when starting to work for a new company. Trial and Error are always needed to be
performed because the researcher had no prior knowledge regarding the
organizational culture, people, and management style of the new company, as well as
its pros and cons. The objective of this paper was aimed to be practical and to find out
about what it was like in Western or Eastern companies, the types of people and
concepts, how to behave, and the model to be used for the use of the Lean
Manufacturing.
1.3 Purpose of the Study
To explore the integration of the concept of lean manufacturing in Thailand
regarding Western and Eastern organizational practices.
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1.4 Research Questions
From the purpose above, the researcher has set six research questions to
answer my inquiry as follows.
1.4.1 What is the lean manufacturing practice in the view of a Western
organization?
1.4.2 What is the lean manufacturing practice in the view of an Eastern
organization?
1.4.3 What are the differences in the approaches between the West and the
East?
1.4.4 What is the selected approach to be used for Thailand?
1.4.5 Why are those approaches selected?
1.4.6 How are the approaches adapted?
1.5 Significant the Study
1.5.1 Theoretical Aspect
The study is based on the current body of theoretical and empirical
knowledge about Lean Manufacturing of Toyota Production System (TPS). It has
added to that body of knowledge with specific reference to Policy Deployment and
implementation method in Thai industry. The empirical research may lead or motivate
other researchers in this or related areas to study key factors influencing the success of
Lean Manufacturing in Thailand.
1.5.2 Human Resource Practitioner Aspect
HRD is the process to develop individual and organization performance.
(Swanson & Holton, 2001) This study focused on best practice and implementation for
business success. The results may contribute to understanding relevant HR practices on
such aspects as development, training and workplace learning.
1.5.3 Policy Maker and Organizational Leadership
The results may assist policy makers or organization leaders to plan and
improve Policy Deployment and Implementation Method to improve management
performance.
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1.6 Definition of Terms
Eastern Organization
Eastern Organization refers to Japanese and South East Asian organizations
Western Organization
Western organization refers to German, French and American organizations
Lean Manufacturing
Lean manufacturing is a systematic method for the elimination of waste.
Lean manufacturing makes obvious what adds value, by reducing anything which is
not adding value. This management philosophy is derived mostly from the Toyota
Production System (TPS) and was identified as “lean” only in the 1990s TPS is
renowned for its focus on reduction of the original Waste but there are varying
perspectives on how this is best achieved. The steady growth of Toyota from a small
company to the world’s largest automaker (Womack & Jones, 2003).
Results-Oriented Management
This style of management is well established in the West and emphasizes
controls, performance, results, rewards (usually financial), or the denial of rewards
and even penalties (Imai, 1986).
Process-Oriented Management
A style of management that is also people oriented in contrast to one that is
oriented solely toward results. In process-oriented management a manager must
support and stimulate efforts to improve the way employees do their jobs. Such a style
of management calls for a long-term outlook and usually requires behavioral change.
Some criteria for meriting rewards in this style are: discipline, time management, skill
development, participation and involvement, morale, and communication (Imai,
1986).
Hoshin Kanri
A strategic decision-making tool for a firm’s executive team that focuses
resources on the critical initiatives necessary to accomplish the business objectives of
the firm .By using visual matrix diagrams similar objectives are selected while all
others are clearly deselected . The selected objectives are translated into specific
projects and deployed down to the implementation level in the firm. Hoshin Kanri
unifies and aligns resources and establishes clearly measurable targets against which
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progress toward the key objectives is measured on a regular basis. Also called policy-
deployment (Womack & Jones, 2003).
Kaizen
Continuous, incremental improvement of an activity to create more value
with less muda. Also called point Kaizen and process Kaizen (Womack & Jones,
2003).
1.7 Delimitation
The scope of this study is described below. Participant: the selection of
informants was by purposeful sampling techniques. Key informants include:
1.7.1 High level management who have experience in USA, Europe and
Asia organizations
1.7.2 A high level consultant who has experience in various cultures
1.7.3 High level Management who have experience in USA and Asia
Organizations
1.7.4 High Level Lean Manager who has experience in Asian and USA
Organizations
1.7.5 A High Level Lean Implementer who have experience in Europe, USA
and Japanese Organizations
1.8 Limitation
There is no research without limitations (Marshall & Rossman, 1999).
Moreover, limitations assist readers in recognizing how they should read and interpret
the researchers’ studies (Glesne & Peshin, 1992). The limitation of the study includes:
The 5 Cases studies may not be enough to provide a basis for representing the best
practice process to other best organizations in Thailand.
Context of the study: The term West refers to only German, French and
American Organizations and The term East refers to only Japanese and South East
Asian organizations.
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1.9 Conclusion
This chapter describes the foundation for the dissertation. The main point is
to investigate the best practice to Policy Deployment method in Lean Manufacturing
for Thai culture and that environment. The chapter explains the background and
rationale for the study and ways including system thinking in terms of input, process,
and output for implementing Lean Manufacturing effectiveness. The nature of the
research problem has been discussed along with the purpose of the research, research
questions, delimitation, limitation, definition of terms, and benefits. The following
chapter is the literature review that develops a conceptual framework for the study
and discusses related research in terms of that framework.
CHAPTER 2
LITERATURE REVIEW
The literature reviewed in this chapter is a means of demonstrating the
researcher’s knowledge about a particular field of study. Gall and Borg (1996)
explained that the literature review plays a role in following 6 functions which are
delimiting the research problems, seeking new lines of inquiry, avoiding fruitless
approaches, gaining methodological insight, identifying recommendations for further
research, and seeking support for qualitative research.
Before writing this research paper, the researcher conducted research on
selected topics that should be studied and set research questions along with effective
and accurate interview questions that would lead to comprehensive answers.
The information used for the interview and conclusion are as follows.
The definition of the word ‘lean’ and the history of it were firstly considered
to be studied in order to understand the meaning of the lean manufacturing concept,
specifically how it was to be used, the purposes of it, and which group of people
would use it. With this process, the concept of lean manufacturing was easy to digest
and became practical. In the researcher’s experience of working for Japanese,
Australian, and German companies for 5-6 years, the Kanban System is widely used.
Therefore, the definition of the word ‘Kanban System’ as well as the group of people
that would use this system and the corresponding objectives were to be studied.
Lean Thinking was one of the first books the researcher read in order to
understand the concepts and philosophy of the word ‘lean’. In the researcher’s
opinion, acquiring a correct understanding of the concept was a good start that would
lead to good results.
Waste Management was another topic that should be studied. After studying
lean, the researcher found that Lean Manufacturing was aimed to reduce waste. In this
study, the researcher tried to identify: what was considered to be wastes by the Lean
Manufacturing concept, the reasons that wastes were still produced, what would
happen if wastes were not produced, and what would happen to organizations if
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wastes were still produced. To totally understand the concept of Lean Manufacturing,
these topics need to be studied.
Human Resource Management should be studied before moving on to study
other topics because humans are involved in all fields. In the researcher’s experience
as a production engineer, project engineer, production manager, and plant manager,
connecting with people was included in all cases. Proper human resource management
enabled people to work smoothly. However, a lack of understanding of people and the
concept of human resource management may lead to some problems. Therefore, this
topic was necessary and needed to be studied before writing this research paper.
The researcher has worked for a co-investment Thai-Japanese company,
a Japanese company managed by a European CEO, an American company managed
by a Thai CEO, a German company managed by an Australian CEO, a co-investment
Thai-American company and a European company with a European management
style. The management of each organization shared both similarities and differences
in terms of perspectives towards management and employees in the organizations.
This led to the classification of human resource management approaches to two major
types: the Western School of Thought and the Eastern School of Thought.
The researcher believed that classifying human resource management into two
branches was an effective method to attain good results.
Eastern-style Human Resource Development (Japanese or Thai) and
Western-style Human Resource Development (including America) shared both
similarities and differences. Sometimes, the goals are similar but the methods or
approaches are different. Being aware of this, the researcher did some research on this
topic before writing this research study. Furthermore, Strategic Management which
has been mentioned many times was another interesting topic and might be applied to
explain the results of this study.
Change Management was the topic that the researcher added into the study
after interviewing an interviewee who kept mentioning the word Change
Management. To be able to understand and explain the concept of the word Change
Management, the researcher needed to do some research on this topic which was
important for writing suggestions.
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Policy Deployment was the topic that was included into the study after
interviewing three interviewees. Two interviewees stated that work could not be
complete if the Policy Deployment was not effective. After studying about the
Japanese-style Policy Deployment (Hoshin Kanri) and Western-style Policy
Deployment from many books, the researcher has a good understanding of this topic
and should be able to write a good conclusion for this study.
Organizational Culture was the term that 3-4 interviewees mentioned.
After doing some research on this topic, the researcher found that Organizational
Culture was a part that lead to the success and failure of the organization.
Hierarchy of Need Theory was roughly read by the researcher while
studying Human Resource Management. However, after hearing of this term and the
words saying that people have different needs from the interviewees, the researcher
did more research on this topic so that the explanation of the results were well-
supported and not subjective.
Learning Organization was reviewed after interviewing five participants.
Understanding Learning Organization, for example continuous human development,
getting work performance evaluated by employers, etc., contributed to better Lean
Manufacturing model drawing. Moreover, the fact that some articles on the Learning
Organization connected with Self Organization, the researcher understood the ways to
make an organization to be the Learning Organization better.
Studying Strategic Human Resource Management (SHRM), the researcher
understood that the organizations selected their employers based on the organizations’
strategies which reminded the researcher of job interviews to get a place in the
organizations with the lean policy in the past.
Modern Technology and Quality Organization are relevant. After
researching these two topics, the researcher has acquired a better understanding of
Japanese management, which was aimed to build up the Quality Organization. Being
defeated in World War 2, Japan has adopted the concept of quality from America and
had been focusing on the importance of quality.
These topics were studied and had an impact on the researcher’s
presentation and suggestions. In fact, there were other irrelevant topics that are not
mentioned in this paper.
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In addition, Hart (1998) also explained the reasons for reviewing the
literature are Distinguishing what has been done from what needs to be done,
Discovering important variables relevant to the topic, Synthesizing and gaining a new
perspective, Identifying relationships between ideas and practices, Establishing the
context of the topic or problems, Rationalizing the significance of the problem,
Enhancing and acquiring the subject vocabulary, Understanding the structure of the
subject, Relating Ideas and theory to applications, Identifying the main methodologies
and research techniques that have been used, Placing the research in a historical
context to show familiarity with state of the art developments.
2.1 History of Lean Manufacturing, What is Lean?
Womack and Jones (2003) explained that Lean is the core idea to maximize
customer value while minimizing waste. Simply, lean means creating more value for
customers with fewer resources. To accomplish this, lean thinking changes the focus
of management from optimizing separate technologies, assets, and vertical
departments to optimizing the flow of products and services through entire value
streams that flow horizontally across technologies, assets, and departments to
customers. Eliminating waste along entire value streams, instead of at isolated points,
creates processes that need less human effort, less space, less capital, and less time to
make products and services at far less costs and with much fewer defects, compared
with traditional business systems. Companies are able to respond to changing
customer desires with high variety, high quality, low cost, and with very fast
throughput times. Also, information management becomes much simpler and more
accurate.
Lean started in the initial years the World War II in Japan for the Toyota
automobile system. The Toyoda family (Toyota’s Owner) in Japan decided to change
their automatic manufacturing business to the automobile business. But they had
a few problems. They could not compete with the giants like Ford automobile in the
foreign markets at that time. Therefore Toyota had to depend upon the small local
markets. They had to bring down the raw materials from outside. Also they had to
produce in small batches. They didn’t had much capital to work with. Therefore,
capital was very important. With these constrains Taiichi Ohno took over the
14
challenge of achieving the impossible. With his right hand man Dr. Sheigo Shingo for
next three decades he built the Toyota production system or the Just In Time system
(Womack, Jones, & Roos, 2007).
Although the concept was mastered in Japan for the Toyota production
system, the roots of this concept comes from the sixteenth century. Eli Whitney’s
concept of interchangeable parts was said to be the initial beginning of this concept.
But first or at least famous implementation of something similar to JIT happened
a century later in manufacturing of the Ford Model T (in 1910) automobile design.
Manufacturing was based on line assembly. Lean Manufacturing Basics moved
without interruptions to the next value adding point. Parts were manufactured and
assembled in a continuous flow. Although Henry Ford might not have understood the
basics behind his system. But it saved lots of money and made Henry Ford the richest
in the world at that time. Although very successful in the initial years, the Ford system
had it drawbacks. One of the major drawbacks was its inability to change. This was
due to the push strategy implemented in the Ford system. They relied on keeping
machines busy without thinking about the final outcome. They had huge stocks in the
form of finished goods and in the form of Work In Progress. This led to the
inflexibility of the system. Also this wasted money unnoticed. Another major draw
back of the system was the poor handling of the human resource. This led to have
a less motivated set of people in the organization (Holweg, 2007).
But in Japan, they studied the system very well and saw the problems that
the Ford system had. But the core concept of the Ford system was trusted. This is the
continuous flow of value system. Anything distracting it was treated as a waste.
Various pioneered work from people like Deming and Juran in the field of quality
improvement was used in the system. This bought built in quality to the system.
More importantly Ohno and Shingo understood the drawbacks in the push system and
understood the role played by the inventory (Ohno, 1988).
Toyota Motor Company was established shortly after Japan’s involvement
in World War II . The Japanese economy was in a depression and people were not
buying cars, so Toyota had to extend itself financially to fund the company.
The banks said to cut costs by laying off employees or they would shut them down.
Kiichiro Toyoda, the founder of the company, handled the situation in the Toyota
15
Way. The reaction to this crisis was to begin to formally articulate the Toyota Way
and Toyota Culture.
Liker and Hoseus (2008) described the Toyota Culture and Toyota culture
by four levels:
1) Philosophy – long term thinking about Toyota’s purpose and why they
exist
2) Process – Waste elimination , is about what Toyota believes leads to
operationanl excellence and constantly eliminating waste.
3) People and partner – respect ,chalenge and grow them , are what drive
the company forward and culture is what teaches the people how to act , think and
feel to work together toward common goal
4) Problem solving – continuous improvement and learning is the way
Toyota people focus their efforts to continually improve.
The Kanban System
Oakland (2007) explained that Kanban is a Japanese word meaning “visible
record”, but in the West it is generally taken to mean a “card” that signals the need to
deliver or produce more parts or components. In manufacturing, various types of
records such as job orders or route information, are used for ordering more parts in
a push type, schedule-based system. In a push system a multi-period master
production schedule of future demands is prepared, and a computer explodes this into
detailed schedules for producing or purchasing the appropriate parts or materials.
The schedules then push the production of the part or components out and onward.
These systems, when computer-based, were originally called “Material Requirements
Planning” (MRP) but have been extended in many organizations to “Enterprise
Resource Planning” (ERP) systems. The main feature of the Kanban system is that it
pulls parts and components through the production processes when they are needed.
Each mamaterial, component or part has its own special container designed to hold
a precise, preferably small, quantity. The number of containers are used, and they are
always filled with the prescribed quantity.
A Kanban system provides parts when they are needed but without
guesswork, and therefore without the excess inventory that results from bad guesses.
The system will only work well, however, within the context of a JIT system in
16
general, and the reduction of set-up times and lot sizes in particular. A JIT program
can succeed without a Kanban-based operation, but Kanban will not function
effectively independently of JIT.
Oakland (2007) explained about Just-in-time in partnerships and the supply
chain. The development of long-term partnerships with a few suppliers, rather than
short-term ones with many, leads to the concept of co-producers in networks of trust
providing dependable quality and delivery of goods and services. Each organization
in the chain of supply is often encouraged to extend JIT methods to its suppliers.
The requirements of JIT mean that suppliers are usually located near the purchaser’s
premises, delivering small quantities often several times per day, to match the usage
rate. Administration is kept to a minimum and standard quantities in standard
containers are usual. The requirement for suppliers to be located near the buying
organization, which places those at some distance at a competitive disadvantage,
causes lead times to be shorter and deliveries to be more reliable.
2.2 Lean Thinking or Lean Vision
It’s been more than 10 years since Womack and Jones (2003) wrote Lean
Thinking.
The three-step thought process for guiding the implementation of lean
techniques is easy to remember, but not always easy to achieve:
1) Specify value from the standpoint of the end customer by the product
family.
2) Identify all the steps in the value stream for each product family,
eliminating whenever possible those steps that do not create value.
3) Make the value-creating steps occur in tight sequence so the product
will flow smoothly toward the customer.
As flow is introduced, let customers pull value from the next upstream
activity.As value is specified, value streams are identified, wasted steps are removed,
and flow and pull are introduced, begin the process again and continue it until a state
of perfection is reached in which perfect value is created with no waste (Womack &
Jones, 2003).
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Womack, Jones, and Roos (2007) explained that when individuals or
companies start on a lean journey they will have different challenges based on their
situation, there are several steps that can help reduce resistance, spread the right
learning which is necessary for lean enterprise.
First Step Find a Change Aagent, a leader who will take personal
responsibility for the lean transformation.
Training, from a consultant or who can teach lean techniques and how to
implement them as part of a system.
Write the Value Streams, beginning with the current state of how material
and information flow now, then drawing a leaner future state of how they should flow
and creating an implementation plan with timetable.
Encourage Lean Thinking such as utilize policy deployment,make
performance measures transparent,teach lean thinking and skills to everyone
Every core lean principle applies just as strongly, if not more so, beyond the
shop floor. In fact, many of the most exciting breakthroughs are taking place in areas
such as services, healthcare and government (Womack & & Jones, 2003).
2.3 Waste Management: What is Waste?
The seven wastes are at the root of all unprofitable activity within any
organization. McBride (2003) explained. The seven wastes originated in Japan, where
waste elimination is one of the most effective ways to increase the profitability of any
business. “The seven wastes” is a tool to further categorize and was originally
developed by Toyota’s Chief Engineer Taichi Ohno as the core of the Toyota
Production System, also known as Lean Manufacturing. To eliminate waste, it is
important to understand exactly what waste is and where it exists. While products
significantly differ between factories, the typical waste found in manufacturing
environments are quite similar. For each waste, there is a strategy to reduce or
eliminate its effect on a company, thereby improving overall performance and quality.
The seven wastes consist of:
2.3.1 Overproduction
Overproduction is highly costly to a manufacturing plant because it prohibits
the smooth flow of materials and actually degrades quality and productivity.
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The Toyota Production System is also referred to as “Just in Time” (JIT) because
every item is made just as it is needed. Overproduction manufacturing is referred to as
“Just in Case.” This creates excessive lead times, results in high storage costs, and
makes it difficult to detect defects. The simple solution to overproduction is turning
off the tap; this requires a lot of courage because the problems that overproduction is
hiding will be revealed. The concept is to schedule and produce only what can be
immediately sold/shipped and improve machine changeover/set-up capability
(McBride, 2003).
2.3.2 Waiting
Whenever goods are not moving or being processed, the waste of waiting
occurs. Typically, more than 99% of a product’s life in traditional batch-and-queue
manufacture spent waiting to be processed. Much of a product’s lead time is tied up in
waiting for the next operation; this is usually because material flow is poor,
production runs are too long, and distances between work centers are too great.
Theory of Constraints has stated many times that one hour lost in a bottleneck process
is one hour lost to the entire factory’s output, which can never be recovered. Linking
processes together so that one feeds directly into the next can dramatically reduce
waiting (McBride, 2003).
2.3.3 Transporting
Transporting product between processes is a cost incursion which adds no
value to the product. Excessive movement and handling cause damage and are an
opportunity for quality to deteriorate. Material handlers must be used to transport the
materials, resulting in another organizational cost that adds no customer value.
Transportation can be difficult to reduce due to the perceived costs of moving
equipment and processes closer together. Furthermore, it is often hard to determine
which processes should be next to each other. Mapping product flows can make this
easier to visualize (McBride, 2003).
2.3.4 Over Processing
Often termed as “using a sledgehammer to crack a nut,” many organizations
use expensive high precision equipment where simpler tools would be sufficient.
This often results in poor plant layout because preceding or subsequent operations are
located far apart. In addition, they encourage high asset utilization (over-production
19
with minimal changeovers) in order to recover the high cost of this equipment.
Toyota is famous for their use of low-cost automation, combined with immaculately
maintained, often older machines. Investing in smaller, more flexible equipment
where possible; creating manufacturing cells; and combining steps will greatly reduce
the waste of inappropriate processing (McBride, 2003).
2.3.5 Inventory
Work in Progress (WIP) is a direct result of overproduction and waiting.
Excess inventory tends to hide problems on the plant floor, which must be identified
and resolved in order to improve operating performance. Excess inventory increases
lead times, consumes productive floor space, delays the identification of problems,
and inhibits communication. By achieving a seamless flow between work centers,
many manufacturers have been able to improve customer service and slash
inventories and their associated costs (McBride, 2003).
2.3.6 Motion
This waste is related to ergonomics and is seen in all instances of bending,
stretching, walking, lifting, and reaching. These are also health and safety issues,
which in today’s litigious society are becoming more of a problem for organizations.
Jobs with excessive motion should be analyzed and redesigned for improvement with
the involvement of plant personnel (McBride, 2003).
2.3.7 Defects
Having a direct impact to the bottom line, quality defects resulting in rework
or scrap are a tremendous cost to organizations. Associated costs include quarantining
inventory, re-inspecting, rescheduling, and capacity loss. In many organizations the
total cost of defects is often a significant percentage of total manufacturing cost.
Through employee involvement and Continuous Process Improvement (CPI), there is
a huge opportunity to reduce defects at many facilities (McBride, 2003).
In the latest edition of the Lean Manufacturing classic Lean Thinking,
Underutilization of Employees has been added as an eighth waste to Ohno’s original
seven wastes. Organizations employ their staff for their nimble fingers and strong
muscles but forget they come to work every day with a free brain. It is only by
capitalizing on employees’ creativity that organizations can eliminate the other seven
wastes and continuously improve their performance.
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Many changes over recent years have driven organizations to become world
class organizations or Lean Enterprises. The first step in achieving that goal is to
identify and attack the seven wastes. As Toyota and other world-class organizations
have come to realize, customers will pay for value added work, but never for waste.
2.4 Human Resource Management
The traditional meaning of “Human Resource Management” is perceived as
a process which focuses on the scope of administrative techniques. The reason is
because “staffing” was considered as one of the processes of management, which is
one of the five major roles of an entrepreneur: planning, organizing, staffing, directing
and controlling (Fayol, 1949). The evolution of people management happened post-
industrial revolution in the beginning of the 18th century. The major change in that
revolutionary transition was the production of machinery which allowed production to
happen in mass volume, causing the demand for raw materials to rise; the demand for
labor forces to rise and therefore employment also rose whilst the industrial factory
system was born to be used to systemize the management of such industry.
The birth of industrial factories and the use of machinery in more complex
production processes than before in the agricultural age that led to the division of
work into parts. Adam Smith, an economist of that era had proposed a concept called
“Division of Labor” in which workers are assigned different tasks based on the
specialties required to produce certain types of goods. Instead of a worker performing
many tasks involved in the production process, a worker is assigned a specific task to
improve proficiency in performing the task, leading to more productivity as the
worker becomes more adept with the skills required; works faster and makes less
mistakes (Smith, 2009). This method would save time and increase workflow
productivity. The concept has become a framework of business management around
the world.
Once the focus has been shifted to work productivity, heavy weighing has
been put on worker’s knowledge and skills which leads to the birth of the “merit
system” (Civil Official Magazine Yr. 3 No. 2). The “merit system” is a highly
renowned and popular management option in many countries. It is widely accepted as
a system that boosts work management efficiency through selecting and recruiting
21
individuals with the right ability and skills into work. In the initial phrase of people
management, the liability of the manager is restricted to selecting the right personnel
and being able to control the workflow of employees only (French, 1978).
Wejyanon (2002) explained that a concept from Frederick W. Taylor is
considered to have much influence upon the evolution of the people management
system. Because Taylor is the father of managing under scientific disciplines, also
called ‘Scientific Management’, and has also done extensive work on the time and
motion study within work processes, also called “Time and Motion Study”, to
determine the standards of work processes for procedures that are considered
scientific. Furthermore, Taylor has laid out the management principles within
factories and determined the measures of management as follows (Taylor, 2010):
1) The scientific methods of procedures have to be determined through
analyzing the breakdown of task into activities or ‘subtasks’ in order to find the best
methods of procedure that cause maximum efficiency. In which these techniques
include ‘job analysis’ and ‘time and motion study’.
2) Theories have to be used in the selection and training of the correct
working procedures for the employees for the best results, rather than letting
employees learn by themselves.
3) The manager and workers should coordinate to abide by the scientific
principles.
The traditional people management school of thoughts would coincide with
an organizational structure that is hierarchical in which the people management
activities are categorized as an operation of the managing executives for people
controlling and managing (Management Control activity). Rather than focusing on
activities that would strengthen the bonds between employees (people-connected
activities) (Stane, 1976). When the growth of company is required, increase the
employees in the same ratio as the increase in managers. Work control can be easily
executed and training can be quickly done since the work procedures have been
already been divided. The traditional method of people managing focuses on the
organization’s internal environment much more than on the relationship between
people management and environment external to the organization (Wejyanon, 2002).
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2.4.1 Human Resource Management (Western School of Thoughts)
A well-known theorist, Peter Drucker, has said that within the three kinds of
resources: capital resources, physical resources and human resources, human
resources is the most valuable of all types to an organization (Drucker, 1954).
An organization cannot survive if organizational management from human
resource is absent. The success of an organization is dependent on the collaboration of
people within the organization. Likewise, problems within an organization also arise
from human resources.
Labor economics perceive human capital as investments in individuals to
develop ability, skills, thoughts and health and wellbeing which is the result of
investment in education, job training, and life standards improvements of the labor
force. This improvement would increase productivity not any less than physical
investment in physical resources would. The concept of perceiving human resources
as valuable resources has become widespread within Western academia since the late
70’s. In other words, in the beginning of the 80’s, most textbooks on people
management were renamed as “human resource management”.
Anyhow, human resources have a different nature from other kinds of
resources in multiple aspects. The first aspect is that human resources are entities with
life, feelings, and emotions that can be expressed. The expressed feelings could be in
terms of satisfaction and dissatisfaction. Because we have thoughts and feelings,
we are different from every other resources which are all similar to each other.
Every human has his/her own distinctive traits. We have our own sense of dignity and
self-worth. The second aspect is that people always change all the time. The state of
being human is synonymous for continuous movement that never stops to hold still.
Humans will adjust to the changing environments, therefore, the analysis and
valuation of people is never 100% accurate. When circumstances change, new
analysis has to be performed. The third aspect that contrastingly distinguishes human
resources from other resources is that human beings have the capability to think and
make decisions. These qualities can be developed to higher proficiency levels.
Therefore, humans are the determiner of our own lives, we choose our own principles
of choosing our own careers. Both genetics and physical constraints could contribute
23
to the decision-making process but they are only contributing factors, never the direct
determiner of decisions (Wejyanon, 2002).
Furthermore from human’s genetic differences and differences arising from
the presence of thoughts and feelings innate to us, experience difference between
individuals also contribute to the difference in thoughts between individuals.
However, the term ‘human resource’ could lead to discourses in opinion since the
movement of humanism would reject the entanglement of the term humans with
resources because human beings have to be human beings. They cannot be
categorized as resources like capital or technology.
A scientist named Singer, in 1990, defined human resource management as
the process of devising interaction platforms and activities schemes such that the
employees’ objectives as well as the organization’s objectives are both met under
such policy which would lead to both efficiency and good output goal satisfaction of
the company (Singer, 1990).
The difference between human resource management and people
management aren’t solidly divided into black and white. These two words have both
similarities and differences looking from the views of theorists and practitioners.
Torrington, a researcher from Manchester School of Management has asserted his
view when he talked about the management of human resources. Human resources are
perceived as highly valuable to an organization. Organizations could use management
methods to increase the values of the human beings involved. Those methods have to
be orchestrated in such a direction that control would be reduced over time, and
authority and freedom of employees, increased over time (Torrington, 1988).
Edgar Schein sees human resource management as a concept that is
a principle in and of itself. Meanwhile, the work of people management focuses on
practicality, human resource management in Edgar Schein’s view emphasizes the
potential within every employee. He believes that human resources is the crucial
factor that drives organizational success (Schein, 1992).
The management of human resource is considered as one of the important
strategic processes in business in which organizations have to try to foster
participation of employees and recognize the importance of these personnel whilst
also allocating both power and freedom to them (Storey, 1987). This point of view
24
elevates policy makers to have more power in the decision process on how human
resources should be developed and brought to good use. The factor that contributes
highly to good human resource management is the ability to look further into the
future and determine the objectives and directions of human resource management in
order to acquire maximum benefits towards the organizations. The implementation of
human resource management also depends on the figures of authority within each
organization. Not only that, the strategic human resource management also has to
coincide with the organization strategy to answer to the business-needs of the
organization (Harrison, 1993).
The widely accepted work-culture in the West puts focus on the ability
rather than age-hierarchy of employees. Turnover between industrial sectors is normal
and mobility from private to public sectors to take on roles with much more
responsibility is even more encouraged, showing the mobility innate to American’s
work culture style (Wejyanon, 2002).
2.4.2 The Development that Focuses on Specialization
This concept was introduced by Adam Smith who saw the division of work
to give rise to efficiency within the production process. This economic principle
allows both cheaper production processes as well as cuts down time within the
production processes. The Westernized human resource development process leans
towards the training in both formal and informal ways in order to improve the
employee’s skillfulness in performing his/her own job. This concept has been
replaced by the concept of Learning Organization by an academia named Peter Senge
from MIT and the concept of reengineering which perceives organizations to shrink in
the future (Senge, 1990). People, instead of having specialized knowledge contained
in a specific scope, should have overall knowledge about the organization. Whenever
there are group meetings in companies- there should be communication and exchange
of opinions between individuals which would reduce the chance of thoughts being led
by people external to the company and also, increase the span of knowledge amongst
employees (Wejyanon, 2002).
2.4.3 Practical Work and the Open Control System
In the West, especially the USA in the past, formal and open control of the
organization was focused upon. One of the reasons that drives such arrangement is the
25
top-down approach of organizations. The control system starts from central planning
on operational plans and ranges into the arrangement of job manuals; and the
determination of responsibilities towards individuals within each position (job
description). Furthermore, the determination of the performance standard for each
position involves a solid control system which ensures all system performance
follows the objectives in every aspect by comparing the returned output from
investment to the required standards. Apart from using open control systems,
Western people management also use more written than verbal communication
(Wejyanon, 2002).
2.4.4 Decision Making and Personal Responsibility
The western system grants high importance to specific individuals with the
belief and respect in their rights, freedom, and equality. The belief in individualism is
the birthplace of the capitalism concept in business which means freedom in business
activities. With high authority and responsibility placed upon each employee; and the
employees liking to select and do things themselves without having to be controlled
on how to do things; these employees tend not to be satisfied by doing easy things
which do not require many skills but would do things that are harder because they
believe in their own abilities. To accomplish hard things is to develop pride in them
(Wejyanon, 2002).
2.4.5 The Major Roles and Responsibilities in Human Resource
Management
Wejyanon (2002) stated that changes due to globalization, major
readjustments of human resource management would follow these activities:
1) The organization should design to coincide both the vision and mission
of the organization’s goals, as well as the strategic planning – a process of designing
and systemizing the workflow to suit people – technology as well as the culture of the
organization.
2) To have efficiency within the organization, the number of employees
must be a good ratio with the missions involved in the workflow, therefore the
structuring of the organization must include human resource planning, job analysis,
job design; work team designation as well as the consideration of the technology that
will be bought to use.
26
3) The right staffing, which includes finding, selecting, and putting to
work as well as persuading the employees, have a high impact on the organization.
The old way of finding and selecting people focused on how well a person fit into
a job (job fit) while neglecting the organizational value called ‘cultural fit’. The new
way of finding and selecting people, however, focuses on the cultural fit to reduce
turnover rates since employees will be more satisfied with their jobs given such
arrangements.
4) The reward system is the motivation that keeps employees loyal to the
organization. The reward system can vary in approaches ranging from short-term to
long-term in which short-term can include education and training to boost efficiency
and long-term could include rewards such as promotions and job stability.
Furthermore, the scheming of the reward system can also depend on the societal
structure: the reward system could include profit sharing; letting employees buy
shares; as well as providing life or health insurances to the employees, etc.
5) Performance appraisal changes from the old way which considers only
personal composures and traits (Trait Approach) into trying to solidly implement
a systemized way of evaluating the performance of employees that can be agreed
between employees and employers. This system is both more solid and more frequent,
allowing evaluations done much more ongoing rather than annually or bi-annually
like in the past. The evaluations from this more-frequent-evaluation process will be
used in conjunction with reviews from external personnel such as the customers
(Customer focused Performance Appraisal) to review the performance (Performance
Management). This inclusion of customer involvement into the evaluation process
coincides with the ‘Reengineering’ concept which focuses on the importance of
customers.
6) People management focuses on developing both the employees and the
organization holistically, not just focusing on a single group because the new concept
aims to restructure the organization into a place for learning (Organization Leaning).
This change of concept has high influence on the ability of an organization to change
and compete with other organizations. Education has been integrated as one of the
human resource development methods. The development of a specific work line
(Career Development) is another dimension of people management development
27
which promotes the development of human resources, job positions and the
organization as a whole together.
7) The communication of human resource management in organizations
is considered successful if the whole mass of employees in an organization are linked
together by using methods like the Open Door Policy in which the manager grants
information to workers, is open to opinions from workers; and builds channels for the
personnel of the organization to meet, talk and exchange opinions, reducing the steps
required for working.
What every high-positioned manager in every organization should do to
achieve the efficiency in human resource management is:
1) Determine the responsibility of human resource section of the
organization as the profit increasing section of the company through organizing and
managing people to boost efficiency, especially in the scope of improving employee’s
adeptness in skills as well as quality of life in workplace. Furthermore, the manager of
human resource himself/herself should have the experience and specialties like
a businessman/woman.
2) The human resource manager has to report directly to the CEO.
All human resource management policies will be meaningless if the CEO’s
involvement is neglected.
3) Within the human resource section, there should be no job involvement
with other sections of the business’s activities such as documentation or public
relation but should focus on considering ways to improve the company’s output like
applying these techniques with real work environment.
4) Focus on using the human resource management to improve
production output per person –especially with the method of training to improve
employee’s work skills –boost motivation; and adjust the work-life quality.
This concept of re-engineering human resource management present in Re-
engineering, a book written by Hichael Hammer and James Champy which was well-
known in 1994-1995 and is still talked about today, talks about the importance of
integrating people, processes and technology to have involvements in the
development of human resource management processes. This can be done via
activities like training the employees to have visions that can anticipate the rapidly
28
growing world economies nowadays. Most importantly, this book has also pointed out
the importance of the high-ranked managers to have a high understanding of the
employees; have a sacrificing nature as well as the motivating drives to encourage
employees to take actions to develop the company under united goals (Wejyanon,
2002).
2.4.6 Human Resource Management: Eastern School of Thoughts
Wejyanon (2002) explained that the trend of business competition in the
international realm requires constant strategic updates within management to sustain
survival. Japan is a country with high principles on the formation of a management
system that’s different from the Western world. In 1984-1985, the USA and many
leading European countries had lost a significant share of their economy to Japan,
coupled with the hazardous economic downturn in 1980-1989, these events became
the trigger points for theorists around the world to turn their attention to the human
resource management methods utilized in Japan which were considered as unique
traits developed over experience and the long history ingrained with the distinctive
culture of Japan.
The important cultural aspects that have become heavily ingrained in
Japan’s work culture are its doctrines. One of the doctrines is called “Shinto”.
The word “Shinto” means “The Way of God”. This doctrine is what has been driving
Japanese to have high respect to both nature and ancestors. Another doctrine, “Chue”,
teaches people to treat each other nicely within relationships ranging from employers-
employees; fathers-sons; husbands-wives; seniors-minors; and friends-friends.
This concept of thought is what has influenced Japanese to have high attachments to
the organizations in which they work. This doctrine is what supports a concept of
management which is the hiring of employees for life. Furthermore, the “Cheu”
doctrine also teaches people to be hardworking; determined and ready to take on hard
work which is the reason why the Japanese labor force is one of the world’s toughest
and most hardworking workforces in the world .
These values to be versatile with changes; welcome to hard work; accepting
of group responsibility; adhering to age-hierarchical systems; having high loyalty to
companies; and having high teamwork ability heavily ingrained within Japanese
29
companies are the driving forces behind Japan’s outstanding economic growth in the
past (Wejyanon, 2002).
2.4.7 The Factors and Methods that Support the Growth of Japan
Japan’s step into its prosperity as the giant power-holding country of world
economics has been supported by multiple factors. One of the most important factors
is the end of the Korean War, which caused the allies to be relocated to Japan,
attracting enormous amounts of money into the country, giving rise to multiple types
of industries which, in turn, raised the employment rate as well as the economy’s
state. There wasn’t any need to defend the country. Furthermore, the product of the
agricultural revolution had led to the government placing more importance on
farmers. There were insurance policies for agricultural crops and laws for renovating
the land areas. The agricultural sector had expanded rapidly. Farmers gained higher
income and paid off their debts. The output of agriculture gained higher prices and
there were investments into sophisticated machinery to help reduce the need for
manpower and thus the labor force became more streamlined towards the industrial
sector.
The Japan government placed high importance on business and trading.
Apart from promoting the activities of private firms regarding communications and
trading on international grounds; the government also provided funding and subsidies
on information and news. The Bank of Japan offered loans at lower interests rates
according to its policy to encourage borrowing in order to induce investments.
Furthermore, Japan also had the policy on trading ambassadors in which during the
negotiation or meetings with international representatives, ambassadors would work
alongside the companies as the media as well as public relations. The ambassadors
had highly important roles which was to orchestrate ambassadorship as a business
activity.
Furthermore, the doctrine that have been teaching Japanese to have love,
unity , bravery, and sacrificing nature, which was deeply ingrained as nationalistism
so that Japanese were nurtured to have high emotional strength, grit, determination,
commitment and motivation to help build the nation into a success (Wejyanon, 2002).
30
2.4.8 Human Resource Management in Japan
Japan is a country which places high emphasis on human resources. This is
apparent in Japan having the world’s lowest illiteracy rate contributing to only 0.7
percent of the population. The education system in Japan developed from the “Temple
school system” (Koonthong, 1990). In the past, the education system not only focused
on providing young citizens with the ability to read and write but also focused on
fostering loyalty for the emperor and bravery. Nowadays, the education system
focuses on science and technology which support quick economic growth.
Within Japanese companies, all managers have the same objective: that is
people must come before the advancement in economical stance or technology.
Most managers have the belief that human resource is the pillar of the whole
organization and using the system of lifetime employment is what allows the
company to bring the full potential of human resources to use.
Wejyanon (2002) explained that Japanese thought the concept on human
resource management can be summarized into seven categories.
1) Lifetime Employment
Lifetime employment is one of the most unique traits of theJapanese
employment system which is highly prominent within big firms in Japan. The criteria
of this scheme is to select only employees who are fresh graduates into employment.
Once enlisted, the company considers itself obligated to designate both work and
income to the person until his/her retirement.
The positive side of this system is that it inspires attachment and loyalty
from the employees as they perceive themselves as part of the company. Loyalty is
extremely high in this form of governance. Furthermore, if we consider human
resource development, this can be done easily and through a singular direction which
lets the company invest in high cost- constant training that otherwise would have been
less beneficial due to high turnover rates in the alternative systems.
Since lifetime employment is a long-term scheme, the company arranges
bonuses to be included in the compensation scheme to use as stimulants to encourage
employees to work harder. The company could also grant the right for employees to
choose his/her own retirement age as well. Important factors involved within lifetime
employment schemes are:
31
1.1) The compensation in terms of bonuses has to be linked to the
production outcome of the business in that profit is acquired.
1.2) The employment of short-time workers acts as a support system
for workers under long-term contracts during business downfalls. Short-time workers
are considered first when an unemployment decision is to be made post the downfalls.
1.3) During the downfalls in the economy, small firms that help
support big firms during the crisis tend to suffer more impact because both the risks
and the workload will be shared by them.
2) Slow Evaluation and Promotion
Slow promotion and persistent hierarchy due to age are some of the
prominent traits in Japanese human resource governance systems. People who have
been with the company for longer periods of time are offered more pay and their roles
get escalated over time. Japanese firms have no policies in promoting people based on
job transference, instead, the promotion factor is heavily based on the duration of
loyal work time to the company. When comparing the evaluation and promotion
periods of Japanese and American companies, Japanese companies use a significantly
longer time frame to evaluate and promote workers. Japanese companies will not
adopt any system that would allow young age to thrive in high position. Instead, the
managing positions all have to come from people who have worked in other and
multiple areas within the company and have progressively incremented their ranks.
The rank incrementation system within Japanese firms promote the equality of the
workforce. A person only gets promoted if and only if the majority of the people in
the team agree that the person is well suited to such role. This is one of the ways in
which Japanese firms heavily strengthen the need of group thinking and group
decisions which lead to much higher coherency among people in the firm.
The development of human resource is highly emphasized within Japan’s
human resource governance systems. Most big companies tend to be training workers
continuously. On top of training, the older figures and people with higher ranks also
have high importance on educating, guiding, and supporting the younger ones.
3) Non- Specialized Career Path
Job rotation is one of the techniques in which Japanese firms employ to
promote the employees to know the bigger picture of the operational system of the
32
company and also develop skills that will support the firms in these areas. The most
common career path shifting occurs every 3-5 years. This shift is orchestrated by the
human resource management department, making the decision based on the
employee’s files.
The rotation of jobs not only allows employees to learn different branches
of a career path and to acquire more skills and knowledge but also promotes social
mixings as people from many sectors get to rotate round working together, getting to
know each other and this leads to even more unity within the company.
As already mentioned that Japanese companies place extremely high
importance on the development of the workforce through constant training to improve
skills and proficiencies; Japan firms adopt the arrangement of having people work
together day and night to build inter-personal proximity and turn strangers into
friends. Familiarity and friendliness are the foundation in which trust and respect as
well as cooperative incentives are built upon as people spend time together.
In Japan’s human resource management theory, high investment is
allowed and emphasized towards human capital in order to acquire loyal and quality
workers for the company. With such scheme, the company also gains in terms of
profit as these loyal and quality workers work towards achieving higher profit and
growth for the company.
4) Implicit Control Mechanism
The communication within the company is based heavily on interpersonal
communication rather than communication through writing. The work orders from
managers also occur in general ways and also, in big scopes rather than in terms of
specific details. This is due to the job rotation scheme mentioned above.
Such communication methods allow employees to absorb and bring knowledge and
practices to use as they rotate job positions.
In many Japanese companies, big meeting rooms are mostly used which
help facilitate the ease of inter-personal communication as well as increase both the
efficiency and frequency of communication. The higher the frequency, the more
company employees get to know each other’s progress.
Japanese companies tend to focus on promoting a harmonious work
environment which is inclusive and makes the workers feel that they belong, as if they
33
are at home. Whenever there is a conflict, a compromise tends to be the method of
problem solving even though time is the cost of such approach.
One other special trait of the Japanese communication system is the
tradition of drinking after work (Communication through Drinking). This is when the
boss would invite everyone out for a drink after the company’s hours in which
company’s problems are discussed informally and in many cases this tradition is what
helps reduce conflicts between co-workers. Japanese companies like to have
activities, clubs and regular bonding activities like sports clubs and company sporting
events to promote relationships between co-workers.
5) Collective Decision Making
Collective decision making is a process employed by Japanese
companies. This process is called “Nema Washi”. It is a democratic process in which
every employee’s opinion is considered. A more formal approach of “Nema Washi” is
called “Ringi”, which is a bottom-up decision making approach collecting opinions
from the company as a whole but the bottom up direction is emphasized.
This type of decision making has the trait of mass agreement and unity
since every person’s opinion has been fairly included in the decision process, giving
satisfaction to the employees due to their part in the decision process. This type of
decision making has three main characteristics.
5.1) The decision process takes a long time since every person in every
involved party’s opinion has to be considered. Everyone has to be informed about the
whole problem and also understand the problem. But once a decision is made,
implementation is extremely quick because every party has already considered the
outcomes.
5.2) There’s little room for mistake because every party’s opinion has
been considered- both ones that agree and disagree.
5.3) There’s a higher employee satisfaction rate since every person’s
opinion has been included.
6) Collective Responsibility
The Japanese human resource management system avoids directing
responsibility to specific personnel but rather, directs it to teams. Every person in the
team has to co-operate for the benefit of the group. The outcome of the group
34
becomes the outcome for everyone. Once there’s group work, everyone has to help
and diverge their own resource- both intellectual manual as well as emotional into
accomplishing the tasks. This leads to higher trust within the system. The work
division will not be directed to specific persons but will be considered together as
a whole (Ouchi, 1982).
Within this collective responsibility system, there is no authority and no
discriminative ranking. Everyone has to put all-in and nobody has more power than
anyone else. In this system, nobody suffers direct punishments or acquires direct
personal rewards. The reward/punishment system is however, done in groups which
divide the responsibilities into branches.
7) Holistic Concern
Within Japanese human resource management, the company places
importance on the employees as if they were family members. Whenever any problem
arises, for instance, a downfall in business performance; the company will not leave
its employees unemployed. Instead, the company would try to preserve its employee
even though that would mean profit lost. Leaving employees vulnerable to
unemployment would be the last option. This effort is what helps foster trust between
the company and its employees. Furthermore, the company also tries to make the
atmosphere within the workplace good for its human resources efficiencies.
The constant inclusive training and activities are what drive employees to
bond together which aims to foster good relations between co-workers as well as good
relations between co-workers and the company.
The use of No Door Policy is one of the way to help build interpersonal
relationships. From all the above mentioned methods, relationship building can be
seen as a central concept to the policies. Relationship is the foundation of united drive
to make the company grow into its business aims.
2.5 Human Resource Development
Walton (1999) explained similarly to Nadler (1990). He stated that HRD is
concerned with human being’s studying management. Yorks (2005), as well,
indicated that HRD is concerned with studying in order to improve work. Swart,
Mann, Brown, and Price (2005) identified that HRD is not in connection with the
35
development of machinery but it is in connection with the development of humans in
constant manner, for business competition. This is similar to what Swanson and
Holton (2001) stated, HRD is the human capability development process for the
purpose that they can proceed according to the organization’s goals.
Gilley, Eggland, and Gilley (2002) stated that HRD is one process that
increases the organization’s potentiality. There are some people thinking that the
science of Human resource development (HRD) is new and recent. Indeed, HRD has
a long history (Werner & Desimone, 2006) or it can be explained that it has happened
since the beginning of humankind. It is the reason that humans always need to
develop themselves so that they can live their lives (Swanson & Holten, 2001).
However, when the time went by, humans have more needs. The development was
not only for a living, but it has become the human resource development (HRD) for
business competitive reasons (Werner & Desimone, 2006). At the present time,
various organizations pay much attention to HRD since they are aware that human
resource is the most significant factor of the organization (Gilley et al., 2002).
Many HR. professionals state about HRD differently (Nadler, 1990).
However, Harbison and Myers (1964) stated further that HRD is the process
of the increase of knowledge, skills and capability of everyone in society.
According to the aforesaid, it can be seen that the specialists have similar
opinions. It can be concluded that HRD is the management of learning for
development of human’s capability in all aspects continually for the reason that they
are able to proceed with the works so as to accomplish the organization’s goals and
that it is beneficial to society. In regard to the goal or objective of HRD, Gilley et al.
(2002) explained that it comprises four points:
1) For self-development on the current responsibility
2) For the professional prosperity or for future responsibility
3) For self-development of the overall work procedure
4) For organizational development so that it has potentiality for business
competition.
Regarding the components of HRD, specialists have different opinions.
Hargreaves and Jarvis (1998) explained that HRD comprises six parts:
1) Organization development linked to staff development
36
2) Job descriptions (JD)
3) Staff planning and recruitment
4) Staff benefits
5) Industrial relations
6) Training and development
However, Gilley et al. (2002) have different points of view. They proposed
that HRD is comprised of merely four parts;
1) Individual development
2) Career development (Career Path)
3) Performance management (PM)
4) Organization development (OD)
Additionally, Werner and Desimone (2006) referred that the American
Society for Training & Development defined that HRD is comprised of only three
parts:
1) Training and development
2) Organization development
3) Career development.
Notwithstanding, the researcher, personally, sees that the components of
HRD should be mainly based on its appropriateness for the organization. There
should not be any specific pattern to define the components of HRD.
In respective of the phases of HRD, from the researcher’s study, it was
found that there are many specialists stating about it, for instance, Gilley and
Maycunich (2000), Gilley et al. (2002), Delahaye (2005), Swanson and Holton
(2001), and Werner and Desimone (2006).
Each person defined it similarly and not very much different from the
ADDIE model, which consists of (1) Analysis of leaning needs (A), (2) Design of
learning programs (D), (3) Development of learning materials (D),
(4) Implementation (1), and (5) Evaluation (E) as shown in Figure 2.1.
37
Figure 2.1 The ADDIE Model
Source: Gilley and Maycunich (2000, p. 402)
From the study on this subject matter, the researcher got to know the overall
aspects of HRD, i.e., the background, meaning, objective, components and procedure.
This has become a fundamental for this research.
Many research studies on HRD were found. However, the researcher chose
to study only the parts that are related with this research as a guideline for conducting
the research. They are as follows.
Wattanapong (2000) studied the relationship between factors impacted by
the current economic crisis and human resource development roles and functions in
Thailand and found as follows. The economic crisis which has an impact upon
technology also has an impact upon the role of HRD. In the future, there should be
preparation for development of materials and should be research studies on HRD
programs not only HRD persons. Subsequently. Akaraborworn (2006) additionally
studied a similar issue, i.e., the relationship between factors impacted by the current
economic crisis and HRD roles and functions. The result is the same, i.e., the
economic crisis which affects technology also affects the roles of HRD and HRD
function as well. Besides, Akaraborworn (2006) studied the changing roles of HRD in
Thailand during the current economic crisis. The results from the study are that while
the economic growths, HRD has its role in connection with the service more than the
strategy. However, during the economic crisis, HRD has the role in connection with
the strategy more than before.
Wongthongdee (2007) studied the relationship of human resource
development knowledge and understanding, internal organizational factors, roles and
competences of HRD professionals in the Thai civil service. According to the
aforesaid research, the researcher acquired HRD knowledge and understanding,
including internal organization factors which have an impact upon HRD roles.
Analysis Design Development Implementation Evaluation
38
The internal organization factors and HRD roles, furthermore, have an impact upon
HRD competencies. Therefore, it can be said that the knowledge and understanding of
HRD of the organization is important since it will affect and be linked to HRD roles
and HRD competencies. The organization, hence, should possess an appropriate and
clear process of HRD to allow easy understanding, which is in accordance with this
research that studies the process of SHRD.
Another piece of research on HRD, which the researcher studied, is that of
Siriwaiprapan (2000). She studied the concept, practice and future of human resource
development in Thailand as perceived by Thai human resource practitioners.
The research found that participants believe that the useful purpose of HRD will help
in improving the work and changing the organization. In addition, the participants’
perceptions exposed seven procedures to HRD that affected the training, line
involvement, empowerment, life-span development, whole-person development,
equal opportunity for development, and self-development.
Four directions for Thai HRD practices were recognized such as:
1) Change the attitude for management
2) Improve the professional status of HRD
3) Enhance the skills for occupations and
4) Change the direction of Thai HRD according to the strategies.
The research, moreover, found that HRD practitioners will be much aware
of strategic matter. Thus, it is seen very appropriate to conduct a study of Strategic
Human Resource Development (SHRD), as this study does (Fukijkarn, 2009).
2.5.1 Strategic Human Resource Development (SHRD)
Prior to discussing HRD strategy and strategic HRD, the understanding of
“strategy” and “strategic” should be acquired as a basic. The researcher would like to
propose the points of view of the specialists as follows.
Nadler (1990, p. 1.29) stated that “the tern strategies clarification. It includes
methods, materials, techniques, and devices, and there is a lack of generally
acceptable meaning for the individual term”.
As for Walton (1999), he stated that “strategy is the approach you adopt
towards the general configuration of your pieces on the chess board. Some players
have a preference for an open fluid position, others for a closed position suitable for
39
long-term maneuvers. It is not, however, a matter of free choice-you are influenced
and constrained by the approach adopted by your opponent” (p. 14).
Swart et al. (2005) mentioned “strategy was defined both as a product and as
a process” (p. 92). Yorks (2005) defined that “strategy is basically how a person or
a group of people will accomplish a difficult goal that is contested by others” (p. 43).
Regarding the term “strategic”, Gilley and Maycumich (2000) proposed that:
synonymous with other terms such as vital, crucial, essential, critical,
important, integral, and necessary. The term also implies a long-term,
organized, and planned effort to achieve an outcome or end. In an
organizational context the term strategic emphasizes the importance and
critical nature of people in achieving the organization’s business goals (p. 3).
As a result, it can be concluded that “strategy” covers everything in sub-
parts and has clarity in itself. It has to be in accordance with the long-term strategy
which enables the personnel, team and organization to succeed, and win a competitor.
As for “strategic”, it means the long-term overall pattern for development and
management so that the organization accomplishes its goal as set. Subsequently, HRD
strategy and strategic HRD is to be mentioned.
At present, HRD plays an important role in supporting the organization’s
strategy and is an important part that leads the organization to the success (Swanson
& Holton, 2001). The organization, therefore, attempts to build up its HRD strategy.
Harbison and Myers (1964) and Swart et al. (2005) stated that HRD strategy focuses
on training and the method for staff’s development in connection with their present
task. However, it is also linked to the overall and long-term strategy or strategic HRD,
as shown in Figure 2.2.
Figure 2.2 Stages on the Route to Human Development
Source: Walton (1999, p. 82)
Piecemeal
Approach
HRD
Coherent
Training
strategy
Coherent Training
& Development
Strategy
HRD
strategy
Strategic
HRD
40
Strategic HRD is concerned with the guidelines and approaches for
development of knowledge, skills, and capability of a person, both in terms of
individuality and in terms in the order that a person is able to perform the work
efficiently, both for the present time and for the short-term and long-term future
(Swart et al., 2005; Walton, 1999). For a deeper understanding, subsequently,
the concept, definitions and processes of strategic HRD are reviewed.
2.5.2 The Concept, Definitions, Processes of SHRD and Research on
SHRD
Garavan (2007) stated that Strategic human resource development (SHRD)
is the enhancement of an organization’s potentiality in the long run. Its concept
focuses on the analysis and assessment which are linked to the organization’s
strategies, HRD systems, policies, and practices.
Moreover, Gilley and Maycunich (2000), Swart et al. (2005) and Yorks
(2005) stated similarly that SHRD is not a tool that enables an organization to
immediately achieve success, but it is a learning process that helps in the development
of knowledge and skills for personnel to proceed with work and achieve the goals
as set by the organization, and it will enable the organization to succeed in the
future.
Walton (1999) stated, “SHRD is an organization-wide holistic approach and
encompasses what takes place within a designated HRD functional area only in so far
as the activities of the function contribute to the overall development process.
The function has to demonstrate that it is fit for a strategic purpose” (p. 85).
Therefore, if the process of SHRD is clear, procedural and appropriate the
SHRD will be able to help in developing the organization in concordance with the
goal.
For the Process of SHRD, Delahaye (2005), Swart et al. (2005) and Yorks
(2005) stated similarly that it shall be started from the review of an organization’s
internal environment, i.e. the quantity and category of personnel, the personnel’s
capability, the knowledge on the finance, materials, financial resources and copyright.
In parallel, the organization’s external environment shall be reviewed. They are
divided into direct factors and indirect factors. The direct factors are customers,
competitors and suppliers. The indirect factors are the preconditions concerning
41
business, society and culture, polities, technology and environment. The internal
environment is to be analyzed as the strengths and weaknesses of the organization.
The external environment is to be analyzed as it is opportunities and threats of the
organization. It is called “SWOT analysis”.
After that, a strategic plan is made. It is divided into 3 parts, i.e. mission,
overall strategy and organization structure. Regarding the mission, the need of
customer shall be taken into account. As for the overall strategy, it comprises both
active procedure which is to approach customers, and passive procedure which is to
deal with competitors. For the organization structure, it depends on the
appropriateness for each organization (Delahaye, 2005; Swart et al., 2005; Yorks,
2005).
Subsequently, the three parts form the strategic human resource
development (SHRD) of the organization. What needs to be taken into account are
the economic conditions, legal and political conditions, employment conditions
including the organization’s data system, culture, and stakeholders (Delahaye, 2005;
Swart et al., 2005; Yorks, 2005).
It can be seen that many specialists stated similarly that for the establishment
of SHRD, what should be taken into account are the condition of the society,
economy, politics and culture. They are different according to the local, region and
nationality as well. Thus, a SHRD which is fit for different environments is required.
This is in accordance with this research of which the objective is to study SHRD
process which is appropriate for private universities in Thailand, the country in which
people have their own way of living.
Delahaye (2005) stated further that SHRD is transformed to HRD
operational plans comprising: (1) policy plans and (2) practical plans. Policy plans are
plans which are HRD guidelines. It consists of policies, procedures, and rules.
Practical plans are plans which have objectives, patterns and practicality concerning
an organization’s HRD, as per Figure 2.3.
42
Figure 2.3 Strategic Human Resource Development Process
Source: Adapted from Delahaye (2005, p. 95)
2.6 Change Management
Change Management is a structured approach to lead individuals, teams and
organizations from a current to a desired future state while also ensuring the
fulfillment of company objectives in a sustainable way (Kotter & Cohen, 2002).
Change management is a structured approach to shift/transition individuals,
teams, and organizations from a current state to a desired future state. It is an
organizational process aimed at helping employees to accept and embrace changes in
their current business environment. In project management, change management
Organization
Internal environment
analysis
External environment
analysis
Strengths
Weaknesses
Opportunities
Threats
Strategic plan
Mission
Overall strategy
Organization structure
Strategic Human Resource Management &
Development
HRM & HRD operational
plans
Policy plan
Practical plan
43
refers to a project management process where changes to a project are formally
introduced and approved (Fullan, 2008).
Change is unavoidable if you want to survive. At the company level, to stay
competitive in the marketplace equals a need for continuous change. Change can be
uncomfortable and may not always bring about the initially-desired “future state”
(Henderson & Larco, 2003).
Change Management processes may include creative marketing to enable
communication between change audiences, but also deep social understanding about
leadership’s styles and group dynamics. As a visible track on transformation projects,
Organizational Change Management aligns groups’ expectations, communicates,
integrates teams and manages people training. It makes use of performance metrics,
such as financial results, operational efficiency, leadership commitment,
communication effectiveness, and the perceived need for change to design appropriate
strategies, in order to avoid change failures or solve troubled change projects.
Successful change management is more likely to occur if the following
are included (Prosci, 2018):
1) Benefits management and realization to define measurable stakeholder
aims, create a business case for their achievement (which should be continuously
updated), and monitor assumptions, risks, dependencies, costs, return on investment,
dis-benefits and cultural issues affecting the progress of the associated work.
2) Effective Communication that informs various stakeholders of the
reasons for the change (why?), the benefits of successful implementation (what is in it
for us, and you) as well as the details of the change (when? where? who is involved?
how much will it cost? etc.).
3) Devise an effective education, training and/or skills upgrading scheme
for the organization.
4) Counter resistance from the employees of companies and align them to
overall strategic direction of the organization.
5) Provide personal counseling (if required) to alleviate any change
related fears.
6) Monitoring of the implementation and fine-tuning as required.
44
Kotter (1996) explained that we need to manage change not only to secure
the results we want but also as a way of creating the ownership and engagement of all
people. The way to change is as follows:
1) Establish a sense of urgency
2) Create a guiding coalition
3) Develop a vision and strategy
4) Communicate the change vision
5) Empower employees for broad-based action
6) Generate short-term wins
7) Consolidate gains and produce more change
8) Anchor new approaches in the future
The field of change management can be confusing and sometimes
complicated to research and study, especially for new practitioners. Change
management is the application of many different ideas from the engineering, business
and psychology fields. As changes in organizations have become more frequent and
a necessity for survival, the body of knowledge known as “change management” has
also grown to encompass more skills and knowledge from each of these fields of
study.
While this may be a good trend overall, the result for many change leaders is
growing confusion about what change management really means. To bring this into
focus and to make your change management work successful, this tutorial is designed
to help explain the history and evolution of change management, and discuss why it is
a required competency for today’s business operations (Hiatt, 2006).
2.6.1 Change Process
Kurt Lewin, a psychologist, proposed that there are three main steps in the
change process, comprised of unfreezing, change, and refreezing (Lewin, 1951).
Unfreezing
This step occurs when there is dissatisfaction in a current situation, which
is caused by the poor design of an organizational structure or technology, or the
inefficiency of employees or operators. The incidence of crisis will stimulate this
unfreezing step, such as a rapid plummet in sales, boycott by employees, or litigation
by customers.
45
Change
A change occurs when the operation has been performed according to the
plan, which satisfies the organization and its members. The strategies for change
include changing the work relationships, changing the reward system or management
style at a workplace, providing training to create a plan for new behaviors, and
implementing changes to promote balance in an organization.
Refreezing
This step occurs when the changed behavior, attitude, or organizational
structure is sustainable and has become a part of the organization, or a new form of
behaviors has transformed into an organizational norm. For instance, stipulating
a change that is supported by law to ensure that such change will be executed as a part
of the organization and in an incessant manner.
2.6.2 Characteristics of Organizational Change
The modern theories regarding an organizational change all incorporate an
open system that emphasizes on the relationship between the organization and
environment and relationship between organizations themselves. However, the
differences between these theories are the sources and types of change (Narayanan
& Nath, 1993).
2.6.3 Sources of Change
1) Internal factors of an organization: this group of theories believe that
the change primarily occurs due to internal factors, such as low production, internal
conflict, frequent absence from work, and a high employee turnover rate.
These factors are the main causes of changes within an organization.
2) External factors of an organization: this group of theories believe that
external factors are the primary causes of change to an organization, such as
aggressive competition, changes in the technology, or changes in government
policies.
2.6.4 Types of Change
1) Natural Change
Natural change refers to any change within an organization that occurs
naturally and is not related to the decision of the management team.
2) Adaptive Change
46
Each organization has a different form of responses to the environment.
The adaptive change of an organization depends on the discretion in stipulating
a strategy or depends on the decision of the management team. This type of theory is
sometimes referred to as adaption theories.Functional Unit more than adhering to
a hierarchical organizational structure, which reflects the flexibility of a quality
organization. This may be performed as a specific project, which provides
independence for employees.
Concerning the fact that employees are engaged more closely and directly
with customers, and have the best knowledge in the aspects of problem-solving, this
theory therefore believes that an organization should promote employees in the
operational level as well (see Figure 2.4).
Mechanistic Organizational Structure
Old Style Organizational Modern Organizational
Figure 2.4 Comparison of Organizational Structures
Source: Lorsuwannarat (2003, p. 182)
A quality organization also emphasizes on participation, teamwork, human
resource development, and employee empowerment. On the contrary, a mechanistic
organizational structure does not emphasize human resource. Rather, employees are
Employees
Middle Management
Senior
Management
Employees
Middle Management
Senior
Management
47
expected to perform according to orders received from an executive who is the
decision maker of the organization.
In addition, a quality organization has the characteristics of an open
organization, which takes customers and suppliers into consideration. As such,
relationships with external entities of an organization also play an important role.
It can be inferred from such characteristics that a quality organization incorporates the
concept of an organic organization as a significant foundation.
2.7 Policy Deployment
Policy deployment or in Japanese called Hoshin Kanri is a method devised
to capture and cement strategic goals as well as flashes of insight about the future and
develop the means to bring these into reality. Also called Policy Deployment or
Hoshin Planning, it is a Strategic planning/Strategic management methodology where
‘each person is the expert in his or her own job and Japanese TQC (Total Quality
Control) is designed to use the collective thinking power of all employees to make
their organization the best in its field. This is the fundamental principle of Hoshin
Kanri and in Professor Ishikawa’s words in his book “What is Total Quality
Control” . Top managers and middle managers must be strong enough to delegate as
much authority as possible. That is the way to establish respect for humanity as your
management philosophy. It is a management system in which all employees
participate, from the top down and from the bottom up, and humanity is fully
respected. Adaptations of the concept have since been developed by many including
Dr. Yoji Akao, that use a Shewhart cycle (Plan-Do-Check-Act) to create goals,
choose control points and link daily management to company strategy (Jackson,
2006).
The normal way to ensure competitiveness is to hire capable people and fire
them if they fail to meet the company’s financial objectives. Hoshin turns this
“management by objectives” on its head and instead “manages by means.” Of course,
it is relatively easy to agree on objectives such as better products, higher revenues and
lower costs; it is much more difficult to agree on the “means.” To do that, we must
make tradeoffs among business functions, suppliers and even customers. In other
words, we must overcome our normally selfish tendencies and become systems
48
thinkers. Hoshin tackles this challenge in a series of steps that follow the PDCA cycle
(Jackson, 2006).
PLAN
PDCA was made popular by Dr W. Edwards Deming, who is considered by
many to be the father of modern quality control; however, he always referred to it as
the “Shewhart cycle”. Later in Deming’s career, he modified PDCA to “Plan, Do,
Study, Act” (PDCA) because he felt that “check” emphasized inspection over
analysis. PDCA cycle was used to create the model of know-how transfer process.
(Jackson, 2006).
During the plan phase, establish the objectives and processes necessary to
deliver results in accordance with the expected output (the target or goals).
By establishing output expectations, the completeness and accuracy of the
specification is also a part of the targeted improvement. When possible start on
a small scale to test possible effects (Rother, 2010).
The concept of PDCA is based on the scientific method, as developed from
the work of Francis Bacon. The scientific method can be written as “hypothesis–
experiment–evaluation” or plan, do and check. Shewhart described manufacture under
“control” under statistical control as a three-step process of specification, production,
and inspection. He also specifically related this to the scientific method of hypothesis,
experiment, and evaluation. Shewhart says that the statistician “must help to change
the demand by showing how to close up the tolerance range and to improve the
quality of goods.” Clearly, Shewhart intended the analyst to take action based on the
conclusions of the evaluation. According to Deming, during his lectures in Japan in
the early 1950s, the Japanese participants shortened the steps to the now traditional
plan, do, check, act. Deming preferred plan, do, study, act because “study” has
connotations in English closer to Shewhart’s intent than “check”.In the first step in
Hoshin’s planning phase, top management assesses the state of its competitive
resources (Jackson, 2006).
For this, Hoshin uses a unique method known in Japan as the “president’s
diagnosis.” It is a systematic look at the soft side of business: intellectual property,
business processes, people and relationships with customers and suppliers the
intangible assets that determine success in today’s global marketplace. Evaluation is
49
based on detailed criteria, often expressed as a scale of 1 (bad) to 5 (world class).
The president’s diagnosis grew out Japan’s Deming Prize, but developed in different
ways tailored to different business environments. Today, the influence of the
president’s diagnosis can be seen in the diagnostic criteria of the Toyota Production
System and in quality and productivity prizes, such as the Baldrige Award and the
Shingo Prize (Jackson, 2006).
The next step in the “plan” phase of the hoshin process is to link the
development of competitive resources to the bottom line. At the top of the company,
a conversation between functional business leaders results in a set of key process
improvement measures, sometimes referred to as the “balanced scorecard.”
At Toyota, hoshin integrates financial management, in the form of kaizen costing,
Toyota’s system for ensuring that each model is profitable throughout its product life
cycle. In this way, the traditional scorecard of financial results is balanced with
necessary investments in process, people and relationships (Jackson, 2006).
Next, top management identifies a handful of key improvement projects that
will cause the company to reach its targets. The current best practice, borrowed from
Toyota, is to identify projects with potential through value stream mapping. Value
stream maps started in manufacturing, but have spread into sales, marketing,
engineering and supply chain management. Mapping is a rich source of ideas for
improving business processes and building relationships with customers and
suppliers. Hoshin can be used to gather these ideas and relate them systematically to
global revenue and cost targets (Jackson, 2006).
The top-level plan is complete now for the details. The conversation about
strategic objectives and means widens as top management deploys its strategy to
middle management in a process called “catchball” (because managers throw ideas
back and forth from one level of the organization to another). There are three major
benefits to catchball. First, it opens up new channels of communication between
company leaders and process owners, which greatly improves the quality of the
organization’s shared knowledge about its processes, people and relationships.
Second, it forges new relationships necessary to execute the strategy. Third, by
engaging middle and even front line managers in genuine give-and-take negotiations
50
that is, by getting their buy-in hoshin dramatically reduces the cost of getting people
to do what they’ve agreed to do (Jackson, 2006).
DO
During the do phase, implement the plan, execute the process, make the
product. Collect data for charting and analysis in the following check and act steps
(Rother, 2010).
After the lengthy “plan” phase comes the critical “do” phase of the strategic
PDCA cycle. Most strategic plans break down in implementation. Here, in one stroke,
hoshin attains the holy grail of strategy: perfect integration with the daily work of
every employee. Supervisors and project team leaders translate their hoshin targets
into concrete revisions of work standards that are already in place. This is possible in
part because of all the careful planning, as well as because hoshin takes for granted
a very well developed system of standardized work and continuous improvement.
Hoshin evolved together with Japan’s system of companywide quality management,
of which hoshin has always been an integral part. As a business operating system,
hoshin is perfectly adapted to aligning—that is, controlling—the decentralized
decisions of empowered employees with the company’s strategic objectives. Hoshin
is sometimes used without the connection to standardized work, as in the case of six
sigma’s “breakthrough strategy” version of hoshin, which identifies large
improvement projects, is often based on purely financial criteria. While useful, it
lacks the staying power of true hoshin (Jackson, 2006).
CHECK
In the check phase, study the actual results (measured and collected in do
phase above) and compare against the expected results (targets or goals from the plan
phase) to ascertain any differences. Look for deviation in implementation from the
plan and also look for the appropriateness and completeness of the plan to enable the
execution, i.e., the doing. Charting data can make this much easier to see trends over
several PDCA cycles and in order to convert the collected data into information.
Information is what you need for the next step (Rother, 2010).
In hoshin’s “check” phase, the integration of strategy and daily work pays
big dividends by ensuring the rapid discovery and resolution of problems that can
knock a company off its strategic course. In lean manufacturing environments, for
51
example, a deviation from standardized work triggers an immediate response by
means of andon or alarms placed at the fingertips of hourly associates. Because the
hoshin process directly revises standardized work, it also relies on the andon system
to ensure that strategic problems are dealt with as effectively as everyday problems
(Jackson, 2006).
For problems that cannot be resolved on the front line, hoshin relies on
frequent meetings at many levels of the organization, including daily stand-up
meetings, as well as normal review meetings. Incidentally, in hoshin review meetings,
managers focus squarely on the targets and means documented (Jackson, 2006).
ACT
If the check phase shows that the plan phase which was implemented in do
phase is an improvement to the prior standard (baseline), then that becomes the new
standard (baseline) for how the organisation should act going forward (new standards
are thus said to be enACTed). Instead, if the check phase shows that the plan phase
which was implemented in do phase is not an improvement, then the existing standard
(baseline) will remain in place. In either case, if the check phase showed something
different than expected (whether better or worse), then there is some more learning to
be done... and that will suggest potential future PDCA cycles. Note that some who
teach PDCA assert that the act phase involves making adjustments or corrective
actions... but generally it would be counter to PDCA thinking to propose and decide
upon alternative changes without using a proper plan phase, or to make them the new
standard (baseline) without going through do and check steps (Rother, 2010).
Organizations are no different from middle-aged guys like me: Write it
down, or you’ll forget it. In the “act” phase of hoshin, the X-matrix and the A3 system
provide the building blocks of organizational memory. Throughout the year,
management teams submit regular A3 progress reports and document improvement
ideas using the A3 format. When the time comes to revise the company’s strategy,
managers come prepared with their A3s. Typically, A3s are circulated in advance of
hoshin team meetings, so people have some idea of how ideas will be evaluated once
they are formally laid on the table. Even when ideas are deselected, their supporting
A3s are not discarded; instead, they are added to the company’s knowledge
management database (Jackson, 2006).
52
The distinguished economist, Joseph Schumpeter, once wrote that is very
difficult to stay competitive in an economy where new customer requirements and
new technologies constantly undermine the value of investments in old technologies
and business processes. You only have to look to Detroit to grasp Schumpeter’s point.
One wonders how different things would be today if Detroit’s Big Three could have
seen how far they might fall behind Toyota. How different would things be if, instead
of traditional command-and-control operating systems, they had had hoshin kanri to
help them adapt quickly and stay competitive? Clearly, hoshin kanri is as relevant
today as it was 50 years ago, or maybe more so (Jackson, 2006).
2.8 Organizational Culture
Lorsuwannarat (2003) stated that “Organizational culture” refers to shared
values or beliefs of members in an organization. It acts as a social glue that connects
various groups of people in an organization together. Likewise, it is an unwritten rule
that has a significant influence on the behaviors of members in an organization; it is
similar to a soul of an organization that will lead the operations.
A quality organization is necessary to have an organizational culture, which
is particularly true for an organization with a mechanistic structure that intends to
transform into a quality organization. This is because a quality organization requires
shared ideas or beliefs of every member in the organization in order for the
organization to achieve its objectives. Elements of an organizational culture that are
significant to a quality organization are ideas and beliefs, which are correspondent
with the important matters of the overall quality management. Although a quality
organization may have a framework standard in producing quality products and
services, it is practically difficult to effectively achieve the predetermined quality by
merely depending on one single standard. This is due to a variety of reasons (Kume,
1997), including the fact that it is impossible to specify the standards for all types of
activities and the fact that the specified standard may not always be absolute. A set of
standards has the tendency to create a stable condition that consequently results in
a mechanistic organization. Moreover, an effort to change the standard is typically
faced with resistance. Hence, a quality organization needs to rely more on the latency
53
or soul in the management of quality, rather than performing according to the
standards similar to a mechanistic organization.
According to the perspectives of Logothetis (1992), total quality
management is a culture that is associated with a total commitment to quality and an
attitude expressed by the involvement of all members of an organization in the
process of continuous improvement of products and services, through an
implementation of innovative scientific approaches.
Organizational culture that is important to a quality organization includes:
(1) customers are the most important; (2) customer satisfaction is the indicator of
work performance; (3) internal customers are always important; (4) work as a team;
(5) commitment to long-term development and improvement; (6) emphasis on
numerical data and facts; (7) dedication to solve problems; (8) participation across the
organization; (9) management of quality as an organization; (10) emphasis on the
process; and (11) resolute and continuous commitment (Simachokdee, 1998).
2.8.1 Organizational Change
Lorsuwannarat (2003) stated that “Organizational change” can occur in
every organization. As of present, there are various changes that have occurred, such
as the revolution of a government system, the change in an organizational structure,
the privatization of a state-owned enterprise, autonomy of a public corporation, joint
ventures, mergers of corporations, and all the way to incorporation of various
management techniques in an organization.
This chapter explains the definition of organizational change, process of
organization change, types of organizational change, and theories relating to
organizational change that include the model of life cycle, the theory of population
ecology of an organization, the theory of diffusion of innovation, and the
organizational change in a planned manner.
2.8.2 Definition of Organizational Change
An organizational change refers to the change of an organization, which can
be either partially or throughout the organization. Such change includes the redesign
of an organizational structure, the installation of a new information system, and the
change in an organizational culture.
54
An organizational change can occur at different levels, which are comprised
of a personal level, group level, and organizational level. Nonetheless, this chapter
only emphasizes the relationship between an organization and environment at the
organizational level.
An organizational change many occur in the form of changes in objectives,
structure, strategy, work design, technology, work process, culture, and members of
an organization. Such change has two major characteristics (Johns & Sak, 2001),
which are comprised of:
1) A change in one aspect may cause a change in another aspect. For
instance, a change in the objectives and strategies of an organization may require the
organizational structure to be changed.
2) Changes in the objective, structure, strategy, work design, technology,
work process, and culture will cause the organization to put more emphasis on human
resources, which involves the development of necessary skills and attitudes prior to
the implementation of changes to ensure the satisfactory results.
2.9 Hierarchy of Needs Theory
Abraham Maslow’s hierarchy of needs theory was developed from his own
ideas, based on the concept of human relations. Maslow believed social belonging
was not the only need in humans. Rather, humans have a higher level of needs than
just being part of society, which include the needs for autonomy, self-esteem, and
self-actualization.
Hierarchy of needs theory consists of the following major elements:
1) Personal needs can be categorized into five levels by ranking from the
lowest level of needs to the highest level of needs, or as follows: physiological needs,
security needs, love needs, ego needs, and self-actualization.
2) When the lower levels of needs are fulfilled, the higher levels of needs
will act as a motivator (Maslow, 1978).
The levels of needs as proposed by Maslow, ranking from the lowest to the
highest, are as follows:
1) Physiological Needs
55
These include basic needs for human survival or the needs of human
bodies, which are food, water, clothing, and shelter.
2) Safety Needs
These include the needs for security and protection from crime, attack, or
assault. A person who feels secure will not feel intimidated or threatened.
3) Love Needs
Since love needs are ambiguous, modern scholars amended the original
diction used by Maslow from love needs to social needs (McGregor, 1978) or
belonging needs.
4) Esteem Needs
These include the needs for stability and respect of others, which will lead
to self-confidence, strength, and the utilization of one’s ability to benefit the society.
If this need is unfulfilled, it may cause an individual to experience a sense of low
esteem.
5) Self-Actualization
This type of need refers to the realization of one’s competency or
potentiality in continually developing oneself or achieving personal objectives or
goals.
Apart from Maslow’s theory of motivation, other scholars had also proposed
various motivation theories, such as the ERG theory of Alderfer (Alderfer, 1969) that
asserted three levels of human needs, comprising of the needs for existence,
relatedness, and growth. Alternatively, the theory of needs of McClelland
(McClelland, 1985; McClelland & Winter, 1969) did not categorize needs into
different levels. Rather, he proposed that humans embrace the needs for achievement,
affiliation, and power.
56
Figure 2.5 Maslow’s Hierarchy of Needs
Source: Lorsuwannarat (2003, p. 53)
2.10 Learning Organization
Organizational learning refers to the process in which an organization
engages in the development of learning relating to the results of the organization’s
actions and the impact on the environment. Organizational learning refers to the
ability of an organization to adapt to the environment (Hedberge, 1981).
1) Organizational learning is the process in which the executive identifies
methods to improve the ability of members in understanding and efficaciously
managing the organization and environment to facilitate the decision-making process
in increasing the performance of the organization in an incessant manner (Senge,
1990).
2) Organizational learning is the process that helps to increase the
competency through information processing (Huber, 1991).
In conclusion, organizational learning refers to the processes that enhance
the ability of an organization to develop knowledge and understanding in
environmental management in order to achieve the objectives of the organization.
Senge (1990) asserted that a learning organization will learn faster than its
competitors in terms of changes and prior to being under the pressure to change.
Furthermore, a learning organization will try to coordinate the performance of an
individual with the financial performance. A learning organization will also develop
tools and methods to analyze its own system.
Self-Actualization
Ego Needs
Social Needs
Security Needs
Physiological Needs
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McGill and Slocum (1993) categorized learning organizations into four
types, as follows (see Table 2.1):
1) Knowing Organization - this is the oldest type of organization.
It encompasses one single cycle of learning and can become successful as long as the
market is stable or mature. In other words, this type of organization will succeed only
when there is no need for double-loop learning, since such level of learning will
require the executives to surrender their control, along with the requirements on
absolute predictions and effective management, in which an open organization is
demanded for inspection.
2) Understanding Organization - this type of organization has a solid
organizational culture that will lead the operational behaviors of an organization.
3) Thinking Organization - both a understanding organization and
a thinking organization are considered as organizations with a medium level of
learning. A thinking organization will perceive businesses as the continuity of
problems. The executive will need to analyze the problem, collect data, and resolve
the problem.
4) Learning Organization - the first three types of organization encompass
the adaptation to change under the framework of original values or structure,
a learning organization has two cycles of learning; it has the ability to change itself,
and learning from changes is regarded as part of the organizational culture.
Table 2.1 Types of Learning Organizations
Knowing
Organization
Understanding
Organization
Thinking
Organization
Learning
Organization
Philosophy Commit to only one
best working method
Predictability
Control
Efficiency
Have a solid
culture to lead
the strategies
and operations
Perceive business
as the continuity
of problems. If
there is a
problem, it must
be resolved
immediately
Inspect and
improve the
work
experience in
the aspect of
business
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Table 2.1 (Continued)
Knowing
Organization
Understanding
Organization
Thinking
Organization
Learning
Organization
Management Control through
the use of rules
and regulations
or manual
Clarify,
communicate,
and emphasize
on practices
according to the
culture
Clarify and
categorize
problems,
collect data,
and resolve
problems
Promote trials and
errors, examine, and
provide constructive
feedback, as well as
acknowledge
failures
Employee Comply with the
rules and
regulations
without asking
“why”
Use
organizational
culture to lead
the
organizational
behaviors
Innovate
solutions to a
problem in a
systematic
way with
enthusiasm
Collect and utilize
data in the provision
of constructive
feedback
Customer Customers
believe that the
company knows
best
Believe that the
belief of an
organization
serves as a
guarantee for a
good operation
Is part of the
problem that
requires
modification
Is part of the
relations in
teaching/learning
through open and
continuous
communication
Change Proceed
gradually in
order to lead to
the best method
Change under
the belief of the
organization
Proceed
according to
the problem-
solving plan,
in which this
particular plan
is regarded as
a solution to
everything
Is part of the
process of creating
experience-
examination-
hypothesis-
experiment-
experience
Source: Amended from McGill and Slocum (1993)
59
According to the concept of corporate culture, a transformational leader
plays a significant role in creating a corporate culture. Regarding the concept of total
quality management, a leader is a person who leads by his/her actions. A leader must
change his/her role into a teacher or advisor, or support subordinates or employees to
solve problems in the work process. Likewise, a leader must perceive a mistake as an
opportunity for learning and developing, rather than as an opportunity for
reprimanding. A leader must promote teamwork and reward those with creative
thinking (Deming, 1986).
If an organization can transform quality into a shared belief among all
members of the organization and the commitment to perform according to such belief,
that particular organization will possess a strong culture in the aspect of quality,
which will eventually lead to successful total quality management.
2.11 Self-Organization
Self-organization is an organization that can automatically respond to
various problems and situations without having to wait for an order from the
supervisor, while being able to spontaneously produce innovative work. In order for
an organization to achieve the aforementioned characteristics, it depends on the
design of an organization as a learning organization, which has its own competency in
self-organization. Important components of self-organization include the presence of
effective planning that acts as a control system for all directions of operations, the
information system for decision-making process, and the double-loop learning of an
organization.
2.11.1 Strategic Planning
The PDCA cycle of Deming consists of planning, doing, checking, and
acting. When the PDCA cycle is repeated, the quality and level of performance will
gradually increase. Planning is regarded as the most crucial element (Kume, 1997),
since it stimulates other sectors to work effectively. Planning on quality improvement
is regarded as an effort to reduce the gap between expected and actual results. Hence,
effective planning should determine the vision, mission, and strategies of an
organization, as well as contemplate the strategies and operational plans in the aspect
60
of quality improvement of an organization and identify the process or system that
must be improved to achieve the strategic objectives. Moreover, planning should also
reflect the consideration of external environment and the actual ability of an
organization (Kume, 1997).
2.11.2 Information System
Since total quality management relies on facts or statistical data, along with
an emphasis on the use of tools for improvement, planning, analysis, decision-
making, examination, and report of quality management based on facts, the analysis
of mistakes in the work process should employ the data collected from statistical
methods. In order to facilitate the decision-making process in specifying a preventive
standard to prevent recurrence of mistakes, a collection of data and information
should be conducted consistently and systematically, and should be fully utilized in
planning by connecting the data from all parts of the organization together.
2.11.3 Organizational Learning
Organizational learning comprises of two levels: single-loop learning and
double-loop learning (Argyris & Schon, 1978). Single-loop learning refers to the
ability to identify mistakes in the operation and resolve such mistakes. Alternatively,
double-loop learning refers to the ability of an organization to review its convention
of the work process in terms of suitability and correctness (Morgan, 1997).
A quality organization requires double-loop learning in order to facilitate the
organization when a problem arises, as well as to examine or review the policies or
plans of the organization regarding the extent of accuracy and appropriateness, with
the means to prevent recurrence of mistakes. A quality organization must not only be
able to produce products or services according to standards, but it must also have the
ability to challenge the standard or work process, or inspect other work whether it is
appropriate and should be improved or not. Concerning the fact that an improvement
in quality must be practiced in succession, the concept of total quality management
therefore promotes double-loop learning by: (1) promoting employees to analyze
recurrent problems and identify the real causes of such problems; (2) promoting
employees to examine the current working method and identify a better alternative;
and (3) promoting the creation of values or thoughts relating to learning and the
ability to change the priority of work process (Morgan, 1997).
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2.12 Strategic Human Resource Management (SHRM)
An approach to managing human resources, strategic human resource
management supports long-term business goals and outcomes with a strategic overall
framework. It focuses on longer-term resourcing issues within the context of an
organisation’s goals and the evolving nature of work, and informs other HR strategies,
such as reward or performance, determining how they are integrated into the overall
business strategy
Strategic human resource management is the practice of attracting,
developing, rewarding, and retaining employees for the benefit of both the employees
as individuals and the organization as a whole. HR departments that practice strategic
human resource management do not work independently within a silo; they interact
with other departments within an organization in order to understand their goals and
then create strategies that align with those objectives, as well as those of the
organization. As a result, the goals of a human resource department reflect and
support the goals of the rest of the organization. Strategic HRM is seen as a partner in
organizational success, as opposed to a necessity for legal compliance or
compensation. Strategic HRM utilizes the talent and opportunity within the human
resources department to make other departments stronger and more effective
2.12.1 Human Resouce Competency
The competency is one of significant items in the modern world of human
resouce management. Kravetz (2008) explained that human resource specialists view
a set of competencies as a tool to serve as a common language throughout the entire
organization to consistently plan personnelly, conduct the performance reviews, and
determine the training programs. Schhroeter (2008) said competence refers to
a potential ability and/or a capability to function in a given situation, and competency
focuses on one’s actual performance in a situation.
In addition, Those characteristics of knowledge,skills,mindsets , patterns of
thought and the like that when used whether singularly or in various combinations,
result in successful performance (Dubois, 1998).
Competency includes the understanding of knowledge, technical, and
communication skills, and ability to problem solve through work. Competence is the
ability to perform a specific task, action or function successfully. However,
62
competencies are also context-specific , which means some competencies are more
significant than others for a position . The level of importance for each competency
may vary depending on the job or task required of the position.
Dreyfus and Dreyfus (1986) described different levels of competence which
include novice, experienced of beginner , practitioner , etc. From the novice that is
focused on rules to provide creative and innovative solutions to business problems.
An adaptation of this model by Benner (1984), explained six levels of performance as:
1) Unskilled of not relevant
2) Novice
3) Learner
4) Competent
5) Proficient
6) Expert
To be effective in a particular competence, one must be able to accomplish
the desired results of a job with specific qualifications and personal attributes.
In terms of Lean Manufacturing management, Agut and Grau (2002)
suggested management competency into two categories:
1) Technical
2) Generic Competencie.
2.13 Modern Technology
Technology is a process that transforms input factors into the output.
Joanne Woodward categorized technology into three main types:
1) Technology that manufactures a small quantity of products in units or
small batches
2) Technology that manufactures a large batch of products or mass
production; and
3) Technology with continuous processing.
She concluded that an organization that uses technology to manufacture
a large quantity of products will likely embrace a mechanistic organizational
structure. Meanwhile, an organization with a technology that manufactures a small
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quantity of products or with continuous processing will likely possess an organic
organizational structure.
James Thompson categorized technology into three types:
1) Mediating technology that links the organization with customers
2) Long-linked technology that has a fixed sequence of processes
3) Intensive technology that requires a coordination of multiple
production systems.
Modern Technology, especially information technology, is regarded as an
innovative technology that plays a significant role in the daily activity of modern
organizations. Information technology includes tools, equipment, or processes
associated with the collection, maintenance, analysis, management, and dissemination
of information (March & Sproull, 1990). An alternative definition of information
technology is a technology in the aspect of computer that implements the information
system. Indeed, the characteristics of information technology challenges the definition
of technology that is commonly adopted in the theory of organization.
The differences between information technology and general technology
(Lorsuwannarat, 2003) include:
1) Information technology cannot clearly extract factors between the input
and output of the production process, unlike general technology, concerning the fact
that information technology is related to the work in an abstract form that requires
continuous process (Weick, 1990). In addition, the activities of information
technology are performed inside the machine, which are not visible to humans.
2) Information technology requires the use of mechanics with installed
software, which further requires skills in providing reasons more than other
mechanical technologies (Sproull & Goodman, 1990). This software is referred to as
“the set of regulations for the change process” (Goodman, Ravlin, & Schminke, 1990,
p. 355).
Moreover, information technology requires innovation, imagination,
evaluation, monitoring, and understanding of various elements that are invisible
(Weick, 1990).
3) Information technology is directly related to the user and can respond
immediately with the user, which is different from traditional technology. Scholars in
64
the past typically emphasized on technology in factories that manufacture physical
products with minimal interactions with the user.
Considering the differences in characteristics from other technologies, it is
indeed difficult to separate information technology from modern organizations.
In addition, information technology affects the type and structure of organizations in
a different way from other technologies; whereby creating a new type of organization
called “virtual organization” that is significantly different from a traditional
organization.
Technology and Organization
The attributes of technology employed in the study relating to the
relationship with the organization structure include: complexity (Galbraith, 1977;
Scott, 1990; Woodward, 1965), uncertainty (Scott, 1990), and interdependence
(Galbraith; 1977).
Research relating to technology in the field of organization in the initial
stage is hugely influenced by rationalism. Technology was perceived as a type of
machinery with physical and tangible characteristics, and with a definite relationship
with the organization in one particular aspect. As such, organization theories in the
early stages, such as the structural contingency theory, proposed that the consistency
of technology with other factors in the organization will lead to an appropriate
organizational structure.
Subsequent organization theories, such as institutional theory, emphasized
on studying various factors that drive the organization to implement technology,
whether it is due to the fact that such technology has favorable attributes that are
efficient and beneficial to the organization or the fact the organization wants to
acquire legitimacy and acceptance. Later, some scholars disputed that technology is
also related to social construct (Scott, 1990; Weick, 1990). In other words, people and
groups of people are the ones who give definition to a particular technology, apart
from its actual attributes. For instance, the perception that new and innovative
technologies are always favorable. Accordingly, an organization may implement
a particular technology without contemplating its real benefits or side effects.
Thus, such concept affects the decision-making process of implementing and
diffusing technology. For example, the implementation of ISO, which is regarded as
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a management technology, in various units due to social reasons, such as to gain
acceptance or trust, rather than for academic or technical reasons.
2.14 Quality Organization
The concept of quality emerged from research conducted by Walter
Shewhart on quality control at the Bell Telephone Laboratories in the U.S., after
which the United States Department of Defense had adopted Shewhart’s technique of
quality control. However, considering the fact that the Department of Defense is more
like the buyer of products and services, rather than the producer, its quality control
process emphasized more on the buyer’s perspectives, which highlighted the aspects
of selection and inspection (Kume, 1997). Regardless, the quality control process of
the Department of Defense is regarded as the origin of the popularity in quality.
After World War II, Japan wanted to restore its country back to an industrial
country, particularly retrieving its reputation in replicating products with a somewhat
low quality. The quality concept in Japan originated from Edward Deming and Joseph
Juran –both of whom traveled to Japan in 1946 and incorporated Shewhart’s concept
with the management concept. The new concept was later developed into quality
management and was widely adopted in Japan.
Although Deming was considerably successful and renowned in Japan, he
was not recognized in North America. Until 1979, Deming’s concept was
disseminated and implemented by many organizations that led them to succeed,
including Texas Instruments, Proctor & Gamble, Dow Chemical, General Motors,
and Motorola.
Definition of Quality
Originally, the definition of quality according to the concept of quality
control specifically focused on the conformance to specification. However, Juran
introduced a new definition of quality in which he defined it as the fitness for use that
is comprised of five attributes of the product: quality of design, quality of
conformance, availability, safety, and usability.
Since the definition captivated only the user’s attention, Juran decided to
incorporate the concept of cost in order to enable managers to anticipate the costs that
would be incurred if a product or service fails to embrace quality. Juran proposed
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managers to invest in the inspection and evaluation of the quality of products, as well
as the prevention of potential flaws or failures, since he realized that if a mistake
occurs, the cost of that mistake will be as high as 50-80% of all expenses.
Later, Philip B. Crosby proposed the absolutes for quality management,
by defining quality as the conformance to customer requirements.
According to the aforementioned definitions of quality, the author
subsequently categorized the definitions into four dimensions: quality, performance,
efficiency, and satisfaction.
1) Standard
Standard includes the requirements or criteria that identify the quality of
a product or service, such as the minimization of defects or acquisition of zero defect
(Crosby, 1979) or the fitness to specification or the fitness to standard determined by
external organizations as a standard for other agencies to conform to.
2) Performance
Performance encompasses the functionality of a product or service,
whether it conforms to the objectives of the function or not (Senju, 1999),
accessibility or convenience, safety, responsibility, provision of service, durability,
accuracy, and fitness to use.
3) Efficiency
Efficiency includes the comparison of input factors with the output of
products or services produced by the organization, cost control, and duration of
delivery. Hence, this dimension also covers the aspect of fitness to cost.
4) Satisfaction
This dimension of quality is related to the conformance to customers’
requirements and the image of products (Garvin, 1988), in order to obtain customer
satisfaction. It includes the expected quality or exciting quality – both of which enable
customers to differentiate between the products or services, and consequently enable
the organization to obtain a competitive advantage (Hall, 1993).
CHAPTER 3
METHODOLOGY
This chapter describes the research methodology applied to the study for the
selected executives who have experience in Lean Manufacturing and who are top
managers in an Organization, The researcher adopted a qualitative method approach
for the entire research process.
The qualitative research method was employed for this study. In this
chapter, the researcher presented the Constructivism paradigm. The strategy was
guided by the research design, case study, which was used in the study and includes
case selection. The interview method with the interview process and research process
are detailed below.
The outline of the research methodology is presented in seven sections,
as follows:
1. Qualitative Method Research Design
2. Selection of Participants
3. Data Collection and Methods
4. Data Analysis and Interpretation
5. Trustworthiness
6. Ethical Issues
7. Conclusion
The research design and method for the proposed study were derived from
the research objectives and research questions. The proposed research uses qualitative
techniques as described below.
3.1 Qualitative Method Research Design
This Chapter outlines the philosophical framework of the study. It identifies
the theoretical perspective considered for this study. Next the strategies of research
are outlined, followed by the research methodology, the propose participants and the
techniques of selecting a sample, and finally the data collection methods.
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Before the researcher finalized what methodology to use in the research
study Creswell (2009) proposed that there are three elements of inquiry to establish
the groundwork for framework and different approaches to studies. These are
knowledge claims, strategies of inquiry, and methods. With these ideas, the researcher
addressed three questions central to the design of the research: first, what knowledge
claims are being made by the study and the researcher (including a theoretical
perspective)? Second, what strategies of inquiry will inform the procedures? and
lastly, what methods of data collection and analysis will be used during the research
process? By using these three elements of inquiry, the researcher can then identify
either the quantitative, qualitative, or mixed methods approach to the inquiry
(Creswell, 2003).
Consequently, Denzen and Lincoln (2000) claimed that qualitative research
is the most appropriate method to collect and interpret data from the complexity of
human behavior, attitudes, and personal characteristics if the domain has been lightly
researched, such as the investigation of change agent skills of the lean manufacturing
in various organizations.
Creswell (2003) stated that in qualitative research, the researcher is one of
the instruments. Researcher’s conceptualization, background and psychological and
emotional responses to the study contributed to the final outcome of the study.
Thus, to ensure the credibility of the study, Researcher kept the detailed reflexive
notes throughout the study.
In addition, a qualitative method is the appropriate research design to test
a holistic model of the context of organizational life in the manufacturing industry
where the aim is to generate and design process. Moreover, the inductive approach of
qualitative research leads to the process of conceptualizing and observing in this
research study. Indeed, as a clear quotation of Denzin and Lincoln (2005, p. 3) states:
Qualitative research is a situated activity that locates the observer in the
world. It consists of a set of interpretive, material practices that world
visible. These practices transform the world. They turn the world into
a series of representations, including field notes, interviews,
conversations, photographs, recoding, and memo to the self. At this level,
qualitative research involves an interpretive, naturalistic approach to the
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world. This means that qualitative researchers study thing in their natural
setting, attempting to make sense of interpret, phenomena in term of the
meaning people bring to them.
The researcher definitely sharpened researcher’s idea of working in
a specific study of natural human beings and the natural setting within meanings of
interpretation.
3.1.1 Research Paradigm
Lincoln and Guba (1985) defined paradigm more simply as a systematic set
of beliefs and their accompanying methods that provide a view of the nature of
reality. Before selecting a research method , the researcher determined which
paradigm was used as Guba and Lincoln (1994) .When researchers start a project ,
they are required to first make claims of the paradigm framework , what is
knowledge, how we know it , and methodology, to state about how they would learn
and what they would learn during their inquiry (Creswell, 2009).
Patton (1990, p. 37) defined a paradigm is as “A world view, a general
perspective, a way of breaking down the complexity of the real world.” Creswell
(2009) suggested writing about worldviews, a proposal might include the following
items.
1) The philosophical world view proposed in the study
2) A definition of basic considerations of that worldview
3) How the worldview shaped their approach to research
Furthermore, for finding an appropriate research paradigm, the researcher
should know the overall views and characteristics of the study. Therefore, a functional
and suitable method should be applied to support the research progress.
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Postpositivism
Determination
Reductionism
Empirical observation and measurement
Theory verification
Constructivism
Understanding
Multiple participant meanings
Social and historical construction
Theory generation
Advocacy/Participatory
Political
Empowerment issue-oriented
Collaborative
Change-oriented
Pragmatism
Consequences of actions
Problem-centered
Problem-centered
Real-world practice oriented
Figure 3.1 Four Worldviews
Source: Creswell (2009, p. 6)
From Figure 3-1 of the Four Worldviews, each alternative basic set of
beliefs guides action as paradigms, Lincoln and Guba claimed in Creswell (2009).
The researcher began the study with a clear mind of certain assumptions about what
and how the researcher would explore from and during the learning process.
For those researchers who focus on the specific contexts of people’s lives,
environment, and work of multiple participant meanings and contexts, constructivism
is the functional paradigm in order to generate theory and to understand the historical
and cultural environments of participants rather than any other knowledge claim of
a paradigm.
The constructivism paradigm led the researcher to investigate the various
and multiple complexities of meanings and views from their experiences.
The objective of research relied on the participants’ opinions and comments from the
open-ended questions in order to let researcher construct and analyze the meanings of
the situation. Out of the broad open ended questions, The researcher was able to
carefully observe those participants’ interactions and faces within their individual
backgrounds, perceptions, interpretations, and perspectives (historically, culturally,
and socially) and their beliefs.
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The sample of constructivism assumptions are, first, meaning is constructed
by human beings as they engage with the world they are interpreting by broadly using
open-ended questions. Second, humans engage with their world and make sense of it
based on their historical and social perspective throughout the participant’s personal
information, then the interpretation all meanings, settings, and experiences are
analyzed by the qualitative researcher. Finally, the basic generation of meaning is
always social, arising in and out of interaction with a human community that the
qualitative research is largely inductive (Creswell, 2003).
Furthermore, Creswell claimed knowledge out of the fact of actions by his
quotation (Creswell, 2003, p. 12):
Truth is what works at the time; it is not based on a strict dualism between
the mind and a reality completely independent of the mind. It is therefore
individual researchers have a freedom of choice. They are free to choose the
methods, techniques, and procedures of research that best meet their needs
and purposes.
Instead of methods being important, the problem is most important, and
researchers use all approaches to understand the problem. Therefore, the
constructivism paradigm was selected to process this study.
Research Strategy
From the Strategies of Inquiry, Creswell (2007) proposed the qualitative
approach, dividing the main strategies into five approaches:
1) Biography
2) Phenomenology
3) Grounded theory
4) Ethnography, and
5) Case study
The following table of Qualitative Research Strategies explains the
characteristics and nature of study in which the researcher can properly select and
finalize an appropriate medium to fit the research methodology, which are:
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Table 3.1 Qualitative Research Strategies
Dimension Biography Phenomenology Grounded
Theory
Ethnography Case Study
Focus Exploring life Understanding
the essence of
experience about
a phenomenon
Developing
a theory
grounded in
data from
the field
Describing
and
interpreting a
cultural and
social group
Developing
an in-depth
analysis of a
single case or
multiple
cases
Discipline
origin
Anthropology
Literature
History
Psychology
Sociology
Philosophy,
sociology, and
psychology
Sociology Cultural
anthropology
Sociology
Political
science,
sociology
evaluation,
urban
studies, other
social
sciences
Data
collection
Primarily
interviews
and
documents
Long interviews
with up to 10
people
Interviews
with
20-30
individuals
to
“saturate”
categories
and
detail a
theory
Primarily
observations
and
interviews
with
additional
artifacts
during
extended
time in the
field
Multiple
sources
document,
archival
records,
interviews,
observations,
physical
artifacts
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Table 3.1 (Continued)
Dimension Biography Phenomenology Grounded
Theory
Ethnography Case Study
Data
analysis
Stories
Epiphanies
Historical
content
Statements
Meanings
Meaning themes
General
description of the
experience
Open coding
Axial coding
Selective
coding
Conditional
matrix
Description
Analysis
Interpretation
Description
Themes
Assertions
Narrative
from
Detailed
picture of
an
individual’s
life
Description of the
‘essence’ of the
experience
Theory or
theoretical
model
Description of
the cultural
behavior
of a group or an
individual
In-depth
study of a
“case” or
“cases”
Source: Creswell (2009, p. 12)
Table 3-2 presents different dimensions for distinguishing the five research
strategies, which are discussed below.
1) Biography Strategy or Narrative Research is a review from the
participant’s biography or the study of the individual’s experiences or stories to
a narrative chronology that collaborated from both participant and researcher into
documents and archival material.
2) Phenomenology Strategy is a personal interpretation of a specific
phenomenon and also emphasizes the small number of subjects through extensive and
prolonged engagement of an exploration to develop patterns and relationships of
meanings by putting aside the researcher’s experience in order to clearly understand
the participants in the research without bias.
3) Grounded Theory Strategy is the multiple stages of data collection,
leading to the refinement and interrelationship of categories of information into
a theory. This theory also generalizes or discovers a new theory of process, action,
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interaction, or abstract analytical perspective of participants in order to ground or test
the theory from the constant comparison of data with emerging factors and theoretical
different group samplings to maximize the data similarity and difference.
4) Ethnography Strategy is a flexible and typical evolvement of an intact
cultural or habitat group study in a natural setting within a time period and settings.
5) A Case Study Strategy is the in-depth study of human being(s) via
a program, event, activity, process for a given time period, and also an in-depth
exploration of a program, individual(s), or case(s) as a “bounded system” over a time
period through detailed, in-depth data collection involving multiple sources of
information rich in context (Creswell, 2003, 2009). Moreover, as a bounded system,
case study could be combined with any of the other five research strategies above
depending on the characteristics of the study approach in order to finalize the
intensive and holistic analysis (Merriam, 1998).
These are three types of case studies (Punch, 1998). Stake (1995): (1) the
intrinsic, (2) the instrumental case study, and (3) the collective study. However, these
are also different in the design and details of the case study strategy, such as
exploratory case study, explanatory case study and descriptive case study.
Merriam (1998) stated that case study is differentiated from any other types
of qualitative research. Unlike experimental, survey, or historical research, case study
does not claim any particular method of data collection and analysis. Any flexible and
all methods of collecting date information, testing, interview, observation, and
techniques. Moreover, case study focuses on holistic descriptions and explanations of
the findings of the research. It might build or only generate theory and theoretical
approaches after the study.
The researcher selected workplace participation, and field and document
reviews to explore the case study, because the dynamic culture of work in the
manufacturing process required the production within a strict time limit.
Meanwhile, this method also involved approaches to other general
participants whom the researcher experienced events in a comfortable and informal
atmosphere within friendly surroundings and, at the same time, also struggled with the
pressure of the emotional atmosphere (Chantavanich, 2004).
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In conclusion, based on the comparison and discussion of both tables of the
four worldviews and the five research strategies (Creswell, 2007), as well as the
characteristics overview of the research topic and objectives, The researcher selected
the case study strategy to enhance the ability of selecting and exploring through
information and data for the study in order to direct the roadmap to a systematic
process for the research. Yin (2003) explained that a case study has been a common
research strategy in psychology, sociology, political science, and social work. In this
research, Industrial plants in Thailand were selected for study. A case study is
a suitable research strategy for this research. Also, a case study is employed in order
to maximize the benefits of an empirical inquiry that investigated a phenomenon
within its real-life context (Rossman & Rallis, 2003) and a well-executed case study
makes sense of events, Processes or perspectives, which also builds an explanation for
those events or outcomes.
3.1.2 Data Collection Tool
The in-depth interviews were the main technique that the researcher selected
to implement the case study to adopt the information of the findings in order to apply
the in-depth interview, informal interview, observation, and workplace reviews to
explore in this case study strictly and tightly, because of the dynamic work with time
pressure and limits as a nature in the manufacturing process. The researcher
informally observed, reviewed, interacted, and interviewed the participants.
3.2 Selection of Participants
In this research, Researcher employed purposive selection which is defined
as one in which respondent groups have an intuitive connection with its issues being
studies (Fraenkel & Wallen, 2003). Dawson, Manderson, and Tallo (1993) suggested
the selection process.
3.2.1 Planning Phase
During the planning phase the researcher has to think about which members
would best be able to provide the information that the researcher wants, or, if the
researcher was looking at issues within our organization or department, and which
staff members can provide the information. As well as these questions, there are many
other decisions the researcher needed to make when selecting the participants.
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This section provides the researcher with a list of issues that the researcher needed to
consider before making the final decisions regarding study participants (Dawson et
al., 1993).
3.2.2 Method of Participant Selection
There are many methods for selecting participants, and the type of selection
depends on how we use the information. The common method for selecting
participants for focus groups is called “purposive” or “convenience” sampling
(Dawson et al., 1993).
This means that the researcher selected those members of the community
who the researcher thought provided the researcher with the best information. As per
Dawson et al. (1993) suggested. The researcher had to think carefully about all
aspects of the problem and be creative when deciding who could provide the
researcher with the best information. People in positions of power and authority, or
with technical skills, are not necessarily the best people to talk to. Sometimes people
who are less obvious can be extremely useful.
3.3.3 How Many Participants Do We Want to Select?
After deciding who it is that the researcher wanted to include in the project,
the researcher needed to decide how many people the researcher wanted to contact for
each session, as too many participants can be difficult to control (Dawson et al.,
1993).
Finally, after reviewing the suggestions from Dawson et al. (1993) the
participants for this study were selected by Purposeful selection .Purposeful selection
selects those most likely to know about different aspects of the Policy Deployment
method in each factory. The participants for this research included:
1) High level management who have experiences in USA, Europe and
Asia organization
2) A High level consultant who have experiences in various culture
3) High level Management who have experiences in USA and Asia
Organization
4) High Level Lean Manager who have experiences in Asian and USA
Organization
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5) A High Level Lean Implementer who have experiences in Europe,
USA and Japanese Organization
Lastly, the interviewees were considered to be suitable for the interview
session based on the researcher’s work experience as mentioned.
3.3 Data Collection Tools and Methods
The qualitative approach and exploratory nature of the research questions
influenced the data collection method. Research conducted within the qualitative
paradigm is characterized by its commitment to collecting data from the context in
which phenomena naturally occur and to generating an understanding that is grounded
in the perspectives of research participants (Marshall & Rossman, 1995).
Following Creswell’s (2003) recommendation, the data collection tools in
this qualitative research study were observation, interview, and document analysis,
together with audio and visual record instruments. Certainly, the medium of in-depth
and informal interviews were the primary resource of data collection and a review of
related documents and instruments was the secondary source of information for this
case study approach.
3.3.1 Data Collection Tools
Exploring human nature and phenomena, one of the most widespread
techniques is the interview because the interviewer can recognize, observe, and react
immediately to the interview (Yin, 2003). Moreover, qualitative interviewing is a
great adventurous moment that the researcher can explore and follow every step
during the interview in which brings new information and opens windows into the
experiences of the interviewers and is a way of finding out what others feel and think
about their worlds (Rubin & Rubin, 1995). They also concluded that the qualitative
interview has three essential characteristics that distinguish them from other forms of
data gathering in social and political research, which are:
1) Qualitative interviews are modifications or extensions of ordinary
conversations, but with the important distinctions.
2) The interviewers are more concentrated and interested in the findings
and understanding of the participants knowledge, and their insights in categorizing
people or events in terms of academic theories.
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3) The interview content and context, as well as the flow and choice of
topics, changes to match what the individual interviewee knows and feels depending
on various circumstances and conditions (Rubin & Rubin, 1995).
4) The interview is also a highly flexible resource to produce great depth
of understanding and memory data. Finally, I selected two types of interviews,
as below.
4.1) Informal Interview
As a participant observer, or investigator in a friendly environment,
I would merge into the organization as a junior friend or senior friend of the key
participants with no pre-specified questions in an unstructured interview. To build
a trusting relationship among the general participants, I would little by little, slowly
approach to spend time in order to create a relax atmosphere for the conversation.
4.2) In-Depth Interview
Prior to the qualitative research interview, the researcher as the
interviewer recognizes that he is the primary data collection instrument to identify
individual and personal abilities, values, assumptions, and biases at the beginning of
the study. It reminds the researcher to be careful and use discretion for the entire
research process (Miller, 1992 cited in Creswell, 2003). The researcher would use
discrete questions in order to make a friendly conversation to engage the executives,
the key participants enthusiasm to the data collection. The interviewer also asked a set
of prepared questions and additional questions depending upon the interviewee’s
answers to the set questions.
Finally, the researcher conducted both informal and formal interviews
depending on the participants behavior and characteristics. The interviewer also
focused on remarks about their personality and companionship. However, researcher
would beforehand ask for the permission and approval of all interviewees to use either
the formal or informal interview.
4.3) Review of Documentation
Instead of following Creswell’s (2003) classification of two types of
public documents (e.g., Books, Paper and official reports) the researcher explored
each of the three organizations by viewing company websites, company documents,
company profiles and structure, mission and vision, organization patterns and
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production details, essential details, that were posted in order to understand the
fundamental perceptions beforehand. Later, additional documents, such as reports,
event lean posters in the plant, and other useful information were reviewed to explore
the Key participants and the company settings. To ensure confidentiality, researcher
attempted not to breach any confidentiality or company privacy. However, all
documents were acceptable on the basis that the company provided them voluntarily.
Meanwhile, related documentation of the individual’s previous work were reviewed
to search for each of the executive’s change influences, development of
characteristics, and personal matters from past to present for this case study.
3.3.2 Data Collection Methods
After reviewing the related literature, researcher used the collective data
information to design open-ended questions for both informal and in-depth interviews
for data collection. The methods were separated into two stages:
1) Guidance of in-depth interview stepping stones
1.1) The researcher used the collective data information to design
open-ended questions for both informal and in-depth interviews.
1.2) Researcher contacted each of the selected participants to clarify
the brief purpose of the study.
1.3) The prepared interview package consisting of the introductory
letter, in-depth interview letter of approval, and the in-depth interview open ended
questions, were delivered to them by email.
1.4) After the permission for approval, an appointment and an
interview meeting were arranged together with a brief conversation and appointment
for the in-depth or informal interview meeting.
1.5) During the in-depth interview, researcher discreetly spent as much
quality time as possible, basically not exceeding three hours for each interview.
1.6) Researcher definitely asked permission and approval to use
a telephone recorder to transcribe the data efficiently, and took field notes if possible
and allowed.
1.7) After the interview, the next appointment was arranged for
collecting more data if time was limited for the first interview or researcher predicted
that another interview was needed.
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2) Data collection strategy
2.1) During the interview, researcher tightly observed each
participant’s characteristics, reactions, and gestures that necessarily affected the data
analysis and interpretation.
2.2) Researcher also used participant observational techniques to create
rapport in order to get in-depth data.
2.3) Additional data collecting visual resources such as fact sheets or
drawings were used from time to time to advance data during the research to facilitate
an accurate interpretation.
Following Creswell’s (2003) recommendation, the data collection tools in
this qualitative research study were observation, interview, and document analysis,
together with audio and visual recording instruments. Certainly, the medium of in-
depth and informal interviews was the main source of data collection and a review of
related documents and instruments was the secondary source of information. Creswell
(2007) also recommended that the researcher should ask the participants to sign an
informed consent form before they engaged in this case study and give them an
opportunity to ask any questions for their relaxation and to fully express their
opinions about the interviews. All research-related documents and recordings were
kept in a locked filing cabinet to make sure that they remain confidential and secure.
Eventually, after the research fulfillment, Key Participants should receive feedback on
the research results as commitment in a form of recognition and gratitude to
participants for their participating.
3.4 Data Analysis and Interpretation
Before discussing the data analysis and interpretation, Researcher found that
Creswell (2007) suggested some principles about data storage and handling which are,
well suited for qualitative research. First, backup and updated copies of computer files
should always be developed and maintained by the researcher consequently.
Secondly, high quality equipment and the size of memory or tape for audio-recording
during interview should be checked and be ready for collecting information. Lastly,
researcher should master the file list of types of information gathered; recheck and
protect the anonymity of the participants by changing their names, times and dates of
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interview in the data. He also suggested the researcher should systematically develop
a data collection setting as a visual means of locating and identifying information for
a comfortable and convenient future process of the research.
The methodology of qualitative research generally generates a great deal of
data including documentation, interviews, and observations that researcher analyzes
with data analysis and then interprets after data have been collected (Creswell, 2003).
Then, I pursued the following steps of data analysis:
1) After listening carefully through the data recordings, the first process
of the interviews from audio media, the face-to-face interview, and observation notes
were transcribed from recorder to computer files.
2) After reading carefully through the soft files in the computer, the
analysis process of the interview was analyzed and transformed from Thai to English.
3) Repeat all readings for analyzing, transforming, and reducing the
whole information findings in order to confirm the real meanings of data collection.
4) Begin to categorize by coding the information to the model used for
the next step of data analysis.
5) Organize an appropriate design of the clear code identification to be
undertaken. Then the researcher started coding all data descriptions for analysis.
6) Generate data clearly and categorize with themes, then manual re-code
from the first codes to convey findings of analysis. In this step sometimes, researcher
have to do more literature review for efficient information.
7) Map and interpret the meaning of all information into a context to
explain the findings.
3.5 Trustworthiness
Lincoln and Guba (1985) referred to one set of criteria called
“trustworthiness criteria” for judging the quality or goodness of qualitative research.
They claimed, for the terms of “validity” and “reliability”, some scholars have argued
that these terms have no place in qualitative inquiry. Trustworthiness includes
credibility, transferability, dependability, and conformability for the previous age of
evaluation (Schwandt, 2007, p. 299).
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In 1989, the fourth Generation Evaluation, Guba and Lincoln (Schwandt,
2007) recommended to re-evaluate and advance authenticity criteria for better
alignment with the constructivist epistemology informed the definition of qualitative
inquiry.
Similarly, Whiteley (2002) claimed that authenticity is closely linked to
credibility in reliability and also stated that trustworthiness basically means
a demonstration of a qualitative research design and procedure that is credible in
terms of the research issue and social context.
3.5.1 Criteria for Trustworthiness
Lincoln and Guba (1985) insisted that qualitative inquiry is subjective
interpretive, and time and context bound,” truth” is relatives and “facts” depend upon
individual perceptions.
1) Credibility
Lincoln and Guba (1985) referred to a particular researcher’s confidence
in establishing the “truth” of the findings of an individual study as “truth value”.
There is credibility of
1.1) The techniques and methods for gathering high quality data
1.2) The investigator
1.3) The findings.
The researcher applied a triangulation technique by using multiple and
different resources, observations, and investigators to collect data to achieve
Trustworthiness,
Researcher used the following applications and techniques to achieve and
recheck the trustworthiness.
2) Audit Trail
From Lincoln and Guba’s (1985) conclusion, a research audit trail
consists of six categories of information:
2.1) Raw data from written field notes and audio recordings,
2.2) Summary and theme identification of data reduction and analysis
products,
2.3) Data reconstruction and synthesis items (e.g., categorizing of
themes, interpretations, and final reports),
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2.4) Process notes of methodology and trustworthiness,
2.5) Information about intentions and disposition (i.e., research
proposal and personal notes), and
2.6) Instrument development of questionnaire design and interview
questions.
Lincoln and Guba (1985) also stated that the audit trial technique may be
the most important trustworthiness and available to naturalist researchers that the
major useful residues of this study. First, a specification of the items that should be
introduced in the audit trial, the trail of materials assembled for the use of auditor,
metaphorically to fiscal accounts. Second, an algorithm for the audit process itself.
The meaningfulness of “a base for a number’s biases influenced the outcome”
(Lincoln & Guba, 1985) is well described that the reflexive journal, a kind of diary, or
as the observer is needed to record a variety of information about safety and methods
maintained by the researcher.
For this case study audit trail, researcher used the techniques of
(1) keeping all information and data collection as computer file folders saved on an
internal hard disk and external unit for the purpose of securing an audit; (2) likewise,
sound recording software from the interviews might be safely logged on both
a computer and an external device for future usage and review; and 3) writing flexible
notes for gathering both information work processes, checking, rechecking and
comments in order to update and record the research progress.
3) Triangulation
From Lincoln and Guba’s statements of “improving the probability that
finding and interpretations will be found creditable” (Lincoln & Guba, 1985, p. 305).
There are four kinds of triangulation techniques. First, Method triangulation, this
technique is to check out the consistency the findings generate by different data
collection methods. Second, triangulation of the source, this technique is done by
checking out the consistency of different data sources with the same methods. Third,
Analysis triangulation, this technique is done by setting multiple analysis to review
the findings. Last, Theory/Perspective triangulation, this technique means using
multiple perspectives of theories to interpret data (Patton, 2002).
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In this study, researcher used the following triangulation techniques:
3.1) Researcher used document review, interview, participant
observational method and also strengthened both the reliability and internal validity
by using triangulation of multiple methods of data collection procedures in order to
benefit from different perspectives of the creative practices. For the accuracy of the
analysis process, the key participants secured and ensured reliability of the specific
outcomes and valid interpretation by the interviewees themselves for further
comments or suggestions after presenting them with their transcribed interviews.
3.2) Clarification of researcher bias is described in the study for further
study of the same or related research topics.
Both data analysis, interpretation, validity and reliability are based on
applying the ethics of qualitative research methodology and usage. Researcher paid
serious attention to this matter. Nowadays, the words, reliability and validity, have
been accepted in quantitative research methodology since 1980.
Yin (2003), a qualitative researcher, still accepts this word for qualitative
research methodology as his previous research experience was mainly in quantitative
research methodology.
3.6 Ethical Issues
The researcher kept all information collected from the interviews,
documentation, participant observations, and so on as strictly confidential. The names
of the institutions, personal details, and all data collected for the purpose of this study
were anonymous in the research report. All data from the individual interviews, the
recorded resources, and equipment were definitely kept securely and confidentially,
and will be destroyed as soon as the research is fulfilled, completed, published, or
requested from the participants.
3.7 Conclusion
In this study of developing and gathering change management experiences
from senior executives with an lean manufacturing background, Researcher employed
a qualitative research methodology, using case study as the primary strategy in order
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to obtain the most appropriate information to answer the research questions. I used not
only informal and in-depth interviews, but also document review, observation,
investigation, and interaction depending on the process, environments, and whatever
occurred in special situations. Flexible approaches and instruments were used to
highlight spontaneous incidents and interactions in order to seek out the key
components in developing and implementing success factors in the Thai
manufacturing industry. By using a qualitative research method, Researcher
consequently explored individual participants concerns about timing, patience, and
propriety to answer the research questions. Researcher investigated the rationale,
perceptions, attitudes and conceptualizations of the key participants who implemented
lean manufacturing with success in the Thai manufacturing industry, and how they
developed and managed their own ability and that of their employees in their
organizations for higher productivity and higher outcomes.
CHAPTER 4
RESULTS OF DATA ANALYSIS
This chapter presents the results of data analysis which were obtained from
interviews. The interviews for each person were conducted utilizing an in-depth semi-
structured interviews, documents and hand written reviews. The in-depth facilitated
a continuous flow of interaction between the interviewer and interviewees.
The findings were extracted from five participants and selected by using
purposive sampling as explained in Chapter 3. The findings were divided into two
sections. The first section analyses the data from the in-depth interviews and the
second section analyses the findings from handwritten diagrams or documents which
the interviewees gave to the interviewer.
4.1 Process of the Qualitative Data Analysis
This research collected data by conducting in-depth interviews with five
experts who are successful Lean Manufacturing Leaders with implementation in
America, Europe, Asia, South East Asia and Thailand. The interviews were conducted
in both Thai and English for better communication and later was translated into
English for data transcription. After the data was transcribed, manual coding was
employed to identify the categories by using grouping, merging, and renaming
techniques.
Then, the researcher found 13 categories after doing the qualitative data
analysis. Figure 4.1 presents the details of the process of the qualitative data analysis
with each category shown separately. The coding which was selected is shown in
“xxx” with comments on that quotation by the researcher.
4.2 Background of Informants
Five distinct individuals with knowledge and experience in lean
manufacturing and with both similar and different perspectives were interviewed,
as below.
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Mr. One, a manager with experience in using lean manufacturing to control
operations in the U.S., various European countries, and Asian countries. Likewise, he
is a senior-level manager of many leading firms, ranging from an automotive parts
firm and one of the largest jewelry firms in the country;
Mr. Two, an American citizen with consulting experience in lean
manufacturing. He has also worked in one of the largest American firms in the
country. He has been a lean manufacturing consultant in Thailand, Singapore, China,
and many other Southeast Asian countries;
Mr. Three, an experienced executive with expertise in an array of fields.
He has worked in an electronics firm co-funded by Thai and Japanese investors,
an automotive parts manufacturing firm co-funded by Thai and American investors,
an Australian automotive parts manufacturer, a German automotive parts
manufacturer, and a European jewelry company;
Mr. Four, a manufacturing manager and lean manufacturing consultant in
the position of a continuous improvement manager in the Southeast Asian region.
He has worked in an Indonesian-owned company with a production base in Thailand
and with an integrated management style of Europe and Asia. In addition, he has
experience in lean manufacturing in the national leading automotive firm, as well as
experience in operation excellence in a global leading American firm;
Mr. Five, a manufacturing manager with experience in consulting and
implementing lead manufacturing. He has successfully adopted the lean
manufacturing practice in Japanese, Thai-American, and European firms.
The researcher has acquired multiple ideas and concepts that are beneficial
for a successful and effective implementation of lean manufacturing in Thailand, with
various aspects as follows.
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4.3 Findings from Interviewing
4.3.1 Characteristics of the Organizations
Table 4.1 Characteristics of the Organizations
Category Codes
Characteristics of the organization Direct
Expressive
Daring
Self-image
Hesitant
Open
Voice of Employee
People development
Friendly
Tend to help
Team
Connection
Completion
1) Characteristics of Western-style Organizations
In the aspect of human resource management and relations in western-
style organizations, employees must perform according to the specified target without
emphasizing on developing personal relationships. Particularly, Americans are
relatively much more independent than Europeans and certainly than people in
Eastern countries. Mr. One stated that human relations in the form of networking is
not very common; rather, western organizations tend to focus more on work
relationships.
“Europeans have their aims in making profit and return on investment.
European people are quite direct, expressive and daring. They aren’t concerned about
their self-image so much. However, they can also be hesitant at times; Europeans are
more hesitant than Americans.” (Mr. One)
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If we were concerned about social humiliation in the western style of
management, it is indeed not a major issue to take into consideration as asserted by
Mr. One “Americans give more importance to their results than their image. Based on
my own experience working with Americans, they are very open and admit saying ‘I
made mistakes’. We hardly hear this in Asia. Hence, losing image or reputation is not
the main concern that Americans have. Instead, this is the main concern for Asians
and some Europeans.” (Mr. One)
Nonetheless, modern western companies have become more attentive to
employees and their concerns. Yet, the measurement of performance still retains clear
goals. Mr. Four asserted that “We have VOE, Voice of Employees, as the main factor
in the black belt. Back then, American automotive companies had Global Employee
Surveys. VOE had one big annual survey and then quarterly Prof Surveys to listen to
the employees. Three years ago the score was 54 and then up to 60.” (Mr. Four)
It was evident that, although western companies have begun to place
more importance on their employees, it is still not as much to the extent as eastern
companies, according to Mr. Four’s assertion: “New American companies are aware
that to develop business, you need people. People develop business and work. They
have a global talent department to keep any talent they can find. They don’t try to
improve everyone. They do invest some, of course, but not widely, just the ones they
need. So, mixing the two approaches is still a problem because you get a talent to be
kept, trained, and developed but the idea is not alarming like 70% as needed for KPI.
There are still some debates so we need a common ground, not fully into people
development.” (Mr. Four)
2) Characteristics of Asian-style Organizations
People in eastern organizations emphasize relationships or participation in
any activity. If a good and solid relationship has been established, in which both the
supervisors and employees have complied with the standards, the attained results will
always be positive. Furthermore, the working environment in eastern companies seem
to be friendlier than in western companies according to Mr. Five.
“I think the working style there is pretty friendly. Everyone follows the
standard and there is less competition. People tend to help each other more because
it’s hard to outpace one another” (Mr. Five)
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Sometimes, challenging problems can be solved with a much easier
method than what we had thought if we understood such problems correctly and
straight to the point. Otherwise, the problem will be solved in a more complicated
way than it should have been. Furthermore, eastern companies also emphasize on
building and strengthening connections between individuals, as explained by Mr.
Five.
“Japanese companies are very good at building people and creating teams
through connections. It can be observed that Japanese companies will only order
products or supplies from other Japanese companies. They really emphasize
connections. This is similar to the lean system. They will organize group activities
and weekly competitions, starting from small groups of people who are interested.
These groups of people will then persuade others to join their team to enter the
competition. I don’t really see this in the American company that I worked with.
The American company will announce that everyone must participate.” (Mr. Five)
4.3.2 Career Path and Competition in Organization
Table 4.2 Career Path and Competition in Organization
Category Codes
Career Path and Competition in the
Organization
Promoted , Promotion
Drive the result
Employee grows
Seniority, Seniority-Based
Gender
Decision making process
Chain of Command
Freely
Follow
1) Career Path and Competition in Western Organizations
Mr. Three further added the perspectives of career growth and
competition in western organizations that:
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“If you could succeed, you will get promoted fast. Another approach of
practice is ‘Drive the result’, which is a very good approach for a Western structure.
With a Western structure, employees grow fast therefore the environment becomes
quite competitive” (Mr. Three)
Seniority has no major role in the western management style. Rather, it
focuses on the individual’s performance; a high-performance individual will earn
more income with a higher position and more responsibility.
“Nevertheless, career promotion is very obvious in Western organizations
because if you are able to drive the result, you have the potential to get promoted.
As seniority is not their concern. Therefore, the way of practice is different but they
get the same result. Similarly, the cost approach and process development would be
quite different in both cultures but each of their practices have strengths and
weaknesses” (Mr. Three)
2) Career Path and Competition in Asian Organizations
Asians will take the aspects of seniority and opposite sexes into
consideration according to the experience of Mr. Four, “An Indonesian Company is
owned by Asians and you have executives here in Thailand are partly Koreans, so
they are really hard on seniority and gender” (Mr. Four)
Mr. Five also had a similar perspective regarding the fact that seniority is
very common and significant in eastern organizations, particularly in Japanese firms,
“At that time, Japanese companies were considerably seniority-based. I hardly saw
young individuals taking the position of leaders. In addition, the process was pretty
static. There were a lot of employees and a lot of people who were willing to help.
The training and orientation were good. In my perspectives, they emphasized a lot on
human resources. When the employees resigned, it didn’t affect the operation much
because there would always be people available to fill the position. Also, working in
a Japanese company hardly required any decision-making process. Everything had
systems and regulations, as well as procedures and work instructions. Whatever the
leader does, the employees would just follow. If there are other activities, they would
develop them thereafter” (Mr. Five)
Sometimes, excessive concerns about the seniority may lead to problems
at work, as affirmed by Mr. Four: “Bottom up is the hardest. In an Asian society like
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us it’s hard to do things from the bottom and the impact would be minimal anyway.
Because Asians believe in seniority and chain of command. Unlike in Europe where
people can bash each other freely, senior or junior. I think the leader in lean
implementation does not have to know deep, just have enthusiasm.” (Mr. Four)
4.3.3 Organizational Structure
Table 4.3 Organizational Structure
Category Codes
Organization Structure Company
Department Leader , Manager
Foctories
Position
Headquarters
Country
Innovation
Machine
The management of western companies encompasses multiple styles. Some
companies have a clear and flat organizational structure with roles and responsibilities
regarding the lean manufacturing explicitly assigned to employees. Mr. Four
explained about the working process and style in the organization that he had recently
worked with, “At a New American company, they do have it but it’s not like an
international standard. It’s more like a guideline. For instance, there would be one
department leader to receive orders or policies from Head Quarter and another
department leader to oversee the country section or various countries, depending on
the size of the factories. Each factory would have different numbers of CI or OP-X”
(Mr. Four)
Some companies manage the organization according to the situation and
these companies have varying beliefs. As Mr. Four had experience in an American
company but with different management style, “For example, the American factory in
the same department would have two levels, consisting of a manager and a black belt.
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But Eastern factories like in China, Thailand or Malaysia would have a lot more
subdivisions such as a director, manager, assistant manager, senior-level engineer, and
one or two junior-level employees, something like that. In Western factories, there are
only two positions and that’s it. We have like five to six positions. But here, they must
be qualified as a black belt or lean expert at the minimum, and must be in scientific
fields. The final interview would have a department leader, with a minimum of master
black belt, asking your technical know-how, regardless of you being a Junior or
Senior. Every engineer hired by us have to go through department leaders who are
foreigners” (Mr. Four)
In addition, in western style of management, high technology is sometimes
required to reduce costs, which significantly affects the employees, as Mr. Four
explained: “We mixed all like Automation Innovation, lean flow because originally
there was no alarm on machine utilization or capacity. So, they simply had a big
inventory. We put everything in the new design. Flow is quite smooth so the huge
inventory between 4 departments is no longer necessary. The flow starts and ends at
packaging to delivery in 2 hours. About chlorine washing, it was 60%. In year 19 the
factory will be flow manufacturing that will change many minds” (Mr. Four)
4.3.4 Provisions of Feedback
Table 4.4 Provisions of Feedback
Category Codes
Provision of Feedback Discuss
Ideas
Straight , Straightforward
Open
Clearly
Respect
Self-image
Family
Relationship
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1) Provisions of Feedback in Western Organizations
In western organizations, it is every common to provide direct feedback.
Indeed, negative opinions are not considered as a wrongdoing or unaccepted behavior
according to Mr. Four who affirmed that “However, for the American company,
We would discuss ideas and balance them, whether we should implement it or not.
We can also accept or reject the idea. We don’t have to follow everything that the top-
management has passed down. They give us the freedom to do anything to drive the
business. But we must achieve the result, which is the financial aspect” (Mr. Four)
Mr. Four further stated that a feedback session is very common in western
companies and that everything ends in the meeting in which everyone respects one
another, “New American company is the most open. The number one here is a
foreigner, so are the heads, so they are very straight about the business, really open.
But the middle management is quite Thai so we have some seniority and face-saving
things. But in higher-up meeting we are quite straight and open. (Mr. Four)
Mr. Five provided similar opinions, “I think that the western culture is
familiarized with being straightforward. They want people to clearly listen to what
they want to portray. However, this doesn’t mean that they are ill-mannered. But
some people might feel offensive if they are not used to the culture. In terms of time
management, the western people will be very tight in managing the time at the
meeting. It’s probably because they respect each other’s time. (Mr. Five) Hence, it
can be inferred that western companies are more open and transparent than eastern
companies.
2) Provisions of Feedback in Eastern Organizations
In working at eastern companies, it is necessary to be cautious of
communication because if the senior-level employees or supervisors are humiliated,
such work will not be successful or will be difficult to succeed, “I feel that East
Asians are more aware of self-image and also others’. I’m not saying these are bad
qualities because in some organizations they work very well together. It makes me
want to be in that environment as well” (Mr. One)
Mr. One further stated that “Europeans give importance to families more
than Americans, whereas Asians give more importance to families than Europeans.
Therefore, post relationship and networking tend to be more obvious and important
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than in Europe. As a result, networking is the way we should approach around Asians.
This is the reason why networking is one of the keys to a successful implementation
in Asia” (Mr. One) Thus, it can be inferred that the act of humiliating other people
should be strictly avoided in eastern organizations.
4.3.5 Perspectives on Results
Table 4.5 Perspectives on Results
Category Codes
Perspectives on Results Perfectionism
Excellence
Input
Process
Output, Result
Focus
Training, Educating
Train by doing
Culture
Objective
Sustainable
Standard, Standard Process
Development
Continuous
Consistent
Work Instruction, Manual
People
Value
Money, Number
Profitability
KPI, Indicator, CI Tracking
Financial
Business
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In the modern world, everyone or every organization is concerned about the
results. However, the results desired by each organization are different, which range
from the aspects of finance, survival, expertise in various aspects, and all the way to
corporate culture.
“East Asia concentrates on perfectionism and excellence. Nevertheless,
being excellent doesn’t necessarily mean they are well developed in process. Toyota,
for example, is a good example of East Asian corporations. However, it is beginning
to lean towards being more results oriented. The world is changing and it is affecting
people’s behavior and their visions” (Mr. One)
1) Eastern Organizations Put More Emphasis on Process Development
and Training
Eastern organizations do not merely emphasize money. According to Mr.
One, the process development of eastern companies is achieved through human
development. Indeed, employee training is highly common amongst eastern firms and
is used to provide knowledge and enhance coordination rather than focusing on the
results.
“They primarily focus on training, a lot of training and creating
inspiration to improve business. I’m thinking to myself why they need to train so
much. Isn’t it better to “train by doing” By theory, the structure has an input and
output process. East Asia emphasizes on tomorrow’s performance rather than today’s
performance. They tend to overlook their input, whether it is good enough or not,
which could affect their output or result” (Mr. One)
Eastern organizations do not accentuate much on monetary targets.
Rather, they significantly focus on creating corporate culture, “I had a chance to work
at only one eastern company. At that time, I felt like it had just started so the results in
terms of money were not emphasized. They wanted to change the culture of the
organization more” (Mr. Four). Mr. Four shared the experience that he had
encountered; he stated that successful performance in terms of finance is merely a by-
product in the short run, “Results are just by-products, which are not as specific as
that of the American company” (Mr. Four)
In the perspectives of eastern companies, sustainability and long-term
success are much more important than monetary results. Mr. Four said, “However, for
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an Indonesian Company, its objective is obviously to be sustainable. However, they
also invest in educating their employees to create a culture. They would temporarily
discontinue the line of business for training. They invest in facilitating the employees.
It seems like the culture is more focused on the people or employees as compared to
American companies that mainly emphasize monetary compensation” (Mr. Four)
According to Mr. Five, Japanese firms emphasize maintaining the
standards and developing the process on a step-by-step basis. Eastern organizations
perceive that a good process will lead to a good result, “The Japanese company would
control the standard process. Whenever there are problems, whether from customers
or during work, they would focus on the standard first. They would analyze whether
the employees have complied with the standard or not. All of the employees’
activities would be recorded in the report. Most of the mistakes were found to be from
the employees who did not follow the standard” (Mr. Five)
Hence, the development of process in Japanese companies is planned and
systematically executed. Moreover, there is minimal fluctuation in the aspects of
quality, products, and services, as explained by Mr. Five:
“Once the employees follow the standard, the work will be consistent.
Senior employees will gain more experience and their performance will improve. I am
referring to most employees. There are also a lot of bad employees. In addition, the
company also has a suggestion system to develop employees under three main topics,
which are productivity or cost, quality, and safety. When the employees submitted
their suggestions, the company rewards them with money. There is also a QCC
activity, where employees will work as a group to produce a development plan. At the
end of the year, they will compete against each other. So, the development is
continuous and most importantly, the work is consistent” (Mr. Five)
Another belief of Japanese companies is establishing standards.
Mr. Five’s affirmation assured the researcher that the obtained information is true,
“Japanese companies focus on the standard as their first priority. Whatever they do,
they must follow the work instructions from the factory. The work instructions in this
case would include everything, including machinery and drawings. They keep all files
in the cupboard where everyone can access them. The manual and solutions to
machinery or defect problems are also kept in folders, with English translations
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provided. All of the information is provided, such as the solutions to machinery
breakdowns, causes of product defects, and the possibility of the occurrence of
problems. If there are a lot of defects or frequent machinery breakdowns, they would
let the responsible engineer write a troubleshooting guide and keep it in the folder.
This is purely KM for the Japanese company. When there is a problem, they would
compare it with the standard first. In other words, they would look at the traditional
solutions before finding new ones. Japanese people strongly believe in the standard”
(Mr. Five)
Mr. Five further stated that lean manufacturing practices in Japanese
companies are so common that it seems like the DNA of Japanese people, “I think
that the lean system is in the Japanese blood. They always say, “making tomorrow
better than today”. That is kaizen. It’s the heart of the lean system. Japanese people do
not emphasize on fast improvement. Rather, they focus on continuous improvement
like this picture (picture of a ladder). This is different from western countries, where
the steps between the ladder are high” (Mr. Five)
Mr. Four explained that an incubation of experience and transfer of
beliefs from generation to generation can be clearly observed in eastern companies.
He described, according to his experience, that “They developed people of not-so-
high positions and they slowly put in tools, culture and experience. When they got to
be in the middle management, leaders, or managers they had this culture and passed it
on. Value was more blended.” (Mr. Four)
Mr. Five, who began his career at a Japanese company, stated in a similar
manner that “Japanese management mainly emphasize training. Whatever they want
to do, they will conduct the training first. Whether they will implement it or not is a
side story. They also focus on developing their personnel and they would assign those
with good ideas to develop the process. They will identify who has the potential to be
sent for training” (Mr. Five)
He added that, sometimes he did not understand what the company
wanted him to do or what the company had achieved after each particular training,
“This is the unique point of this company. Whatever they want to do or whatever the
target is, they will send employees for training first” (Mr. Five)
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Mr. Three also had a similar experience; when the executive team wanted
to apply lean manufacturing practices in the organization for the first time, it began
with training. “Thai and Japanese Companies started this project in 2005.
The consulting firm, BMG would select employees and send them for training.
After the employees finished with their training, they would return to the organization
and pass on their knowledge to the next badge” (Mr. Three) and training has been
conducted on a continuous basis thereafter. “Since 2005, the company has continued
to practice this project till today. Therefore, the knowledge is being passed through
every generation in every position and hierarchy in the organization. We called each
batch or generation a ‘wave’ for instance, ‘wave 1’, ‘wave 2’ or ‘wave 3’. Each
‘wave’ would keep their information and learning process to pass on to the next.
Likewise, the company itself has kept track of each batch in each year, to measure and
analyze the improvement” (Mr. Three)
2) Companies that are managed by a Western national emphasize on the
results.
It is the fact that we have to accept, according to the literature review and
interviews with the aforementioned five individuals, it was clearly evident that the
American or European styles of management put an emphasis on measurable results.
For instance, Mr. One stated that “They emphasize results. Some organizations only
focus on results and lack developing process and input, which doesn’t seem to last in
the long term” (Mr. One) Although he implied that it depends on each individual, his
overall opinion distinctly indicated that Western organizations accentuate the results.
Similarly, Mr. Three asserted that the primary objective of a Western company is to
achieve results, “Western working style tends to overlook their process, as their main
focus is results.” (Mr. Three)
Mr. Five expounded similarly that, “They are good in a different way.
The American company that I worked with has a clear target that completely focuses
on money. For instance, we must reduce the cost/unit and hour/unit by whatever the
number is at the end of the year. At the end of the month, we presented the results.
If we didn’t meet the target, we must come up with a solution to meet the target”
(Mr. Five)
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Mr. Two, an American citizen who works in a Western organization,
proposed a similar viewpoint that, “Western companies focus on results. There is an
expectation that if someone is given the necessary resources, training, and direction,
they should be expected to perform as intended. Lean is often viewed as a way to
reduce waste and maximize profitability” (Mr. Two)
And Mr. Four asserted that, “I perceive western companies as having
a considerably clear target and costs are one of the main indices” (Mr. Four) As such,
it can be inferred that the western countries, i.e., America and Europe, predominantly
focus on the results.
Accordingly, it is necessary to understand the definition of results
conveyed by each specialist. The emphasis on results of the Western national can be
clearly observed in a business managed by a Western entity, according to Mr. Four’s
statement:
“American companies have a system relating to “Best Business Practice”.
They have indicators to benchmark the best business practice. These indicators would
be collected into KPI and there were around 48 indicators for each aspect, which were
used to identify the best business or practice. For example, the aspect of scraps.” (Mr.
Four)
Likewise, it was apparent that American people accentuated the results in
the financial aspect. Mr. Four elucidated that the financial aspect refers to profit, they
would evaluate it in terms of number per unit. For instance, there were around 14
foam factories at that time and the rate of scrap was approximately 0.1%. But right
now, it has increased to 0.5%. Since there is a gap, we have to identify ways to
improve it or exchange ideas and organize a workshop, for instance.” (Mr. Four) and
“The executive team that oversees the business here has to maintain the financial
position of the company. If the company’s financial statements are in the red, we will
be assigned with some unanticipated or unexpected responsibilities. Whenever there
is a problem, the Lean Six Sigma unit must solve the problem to maintain the
business.” (Mr. Four)
Some companies are highly competent in converting various goals into
numbers, which are further used to set an annual target, as Mr. Four explained, “At
American Automotive Company, they already have the system put into place.
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Therefore, what we have to do is to find a project to close that gap. Therefore, the
project would be different each year. We would have a tool for data collection called
CI Track, which is used to categorize the project, whether it is under lean or six sigma
or Kaizen of the employees. The CI managers in each country must do a gap analysis
to identify the present gaps. After that, they have to propose a list of these gaps,
whether they are lean or six sigma. For Kaizen, it would depend on the number of
factories and topics. There are generally around four main topics” (Mr. Four)
Regardless of the use of the suggestion system adopted by Japanese
companies to develop ideas and creativity of employees, Western companies are able
to generate values or KPI with clarity as stated by Mr. Four, “At American
Automotive Company, they have incorporated a system into Kaizen for proposing
ideas or recommendations. However, we do not assess the amount of savings. We
calculate the amount of Kaizen that happens in each year, which are around 6 topics.
For example, Kaizen relating to safety would have a minimum of 6 topics per year,
similar to Kaizen relating to quality, delivery, and cost. But at American automotive
Company, they have implemented this system that I’ve mentioned earlier, which
allows employees to propose ideas and suggestions. The good and sound ideas will be
implemented into Kaizen. The process is a full loop cycle where employees can
present ideas and participate in the process, and we collect this information in CI
Tracking” (Mr. Four)
4.3.6 Perspectives on Leadership
Table 4.6 Perspectives on Leadership
Category Codes
Perspectives on Leadership Top Management
Executive Management
Head of the organization
Policy
Powerful
Organization
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Table 4.6 (Continued)
Category Codes
Perspectives on Leadership (cont.) Leader
Change
Strength of the leader
Foundation
Mindset
Theory
Recruitment
Unknown factor
Top-Down
Bottom-up
Hemostatic
Key factor
Vision
In eastern organizations, leaders play a role in almost every aspect from the
starting point of implementing lean manufacturing practices in the company. Mr. Four
recalled the moment when lean manufacturing practice was first implemented, “It was
the top management. The majority of policies are from the top management and they
are not in Thailand. Most of them are westerners and Koreans because this company
acquired a shoe manufacturing factory from Korea. So, they use Korean workers as
a labor force. At that time, everyone used a lot of labor. But we tried to adapt and
used the knowledge and skills that we had to improve it. However, we hadn’t moved
towards lean manufacturing or six sigma” (Mr. Four)
Moreover, leaders or senior executives play a major role in executing
policies or principles, as well as in adopting lean manufacturing practices, as Mr. Four
explained that “In the eastern companies, policies from the top-level management are
considerably powerful. That’s my opinion. From my experience in the lean
implementation, some might never have heard of it before. But when the policy on
lean implementation has been stipulated, we have to respond to the order of the top-
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level management. We would do some planning and hire some consultants to find
ways to respond to the order” (Mr. Four)
In eastern organizations, leaders tend to be the initiator who proposes new
ideas or initiates improvements and changes. Based on the experience of Mr. Three,
who recited the first organizational restructuring and development of a company co-
funded by Thai and Japanese investors over the past 10 years, “With a Thai and
Japanese Company, they see everything from an executive management’s angle.
They see everything as profit and loss. When I first joined it was still in Kaizen
structure. They began to adapt into ‘kaizen suggestion’ 3 -4 years later. Over time,
they started to realize that problems didn’t get solved thoroughly and they were
continuing to rise. This was because they couldn’t fix the root of the cause.
Consequently, they started to widen their perspectives and adapt a Western culture
into their organization. They started by implementing tools such as six Sigma and
Lean. They called this concept as ‘process excellent’” (Mr. Three)
If the leaders are serious and determined, the implementation of lean
manufacturing practices will be successful and sustainable according to Mr. Three:
“I see this as very impressive as the head of the organization also took part in this.
They review this project and performance each month. They also motivated their
employees by offering rewards and measured ‘weekly quality’ along with ‘process
declarant’. This would show how effective the results are and how impactful this
project was on the organization” (Mr. Three)
Regarding the roles of a leader, Mr. One clearly explained the significance
of situational leadership. Moreover, leadership should encompass the element of
clarity, from the aspects of definition and all the way to the mission, “The leader of
organization is the key to any change of its organization. Therefore, the leader and the
strength of the leader is very important. There are two perspectives to answer this
question, whether it is for the start-up organization or for an existing organization”
(Mr. One)
The acknowledgement and understanding of the mission is an important
factor of implementing lean manufacturing practices in an organization. Indeed, both
western and eastern styles have different methods and practices, “Because these two
scenarios are completely different. If we are talking about the start-ups, we are able to
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build a correct foundation from the beginning by bringing in a correct approach.
We can train our employees with a right mindset. Hence, recruitment is important at
this stage. When we recruit people, we don’t only consider their educational
background but consider their capability in understanding both theory and practice.
Similarly, their ability to apply theory in real life situations” (Mr. One)
Concerning a different situation where we lead an organization that already
exists. “On the other hand, the existing organization needs to implement change and
development will lead to a different approach. This is actually what I do. So, the first
step would be to eliminate all the problems and stabilize the situation. Because once
we have a stable situation, we can try to prevent small issues from expanding.
Otherwise, it is very difficult to deal with problems in an instable situation” (Mr. One)
The role of a leader that should be initially addressed is to solve the problem
at hand, as referred by Mr. One as “hemostatic”. Mr. One certainly prioritized such
role, “If one factor gets triggered, it will be difficult to control the situation or this
impact is known as an uncontrolled factor” (Mr. One)
According to a manger with worldwide experiences, the first and foremost
role of a leader is to manage factors that are difficult to control and that may disrupt
work. After that, methods will be systematically put into place, “It would be
impossible to do that in the beginning as we wouldn’t know what the cause is.
It would still be an ‘unknown factor’ and we won’t be able to educate everyone and
expect them to understand everything. Therefore, in the beginning I would take
a ‘Top-down’ approach to get in control of the situation. Once, the situation is stable,
we can then take a ‘Bottom up’ approach. We will train and develop the employees
from the bottom of the chain in the organization’s structure, to fulfill our needs and
goals for the future. This approach explains the concept of which management team
initially takes the action and then takes a step back to develop their employees, thus
allowing them to be the driving force of improvement in the organization” (Mr. One)
Solving major problems at hand or “hemostatic” is necessary for an
organization. Otherwise, it may be difficult for the organization to succeed, as
Mr. One explicitly illustrated, “For example, I will talk about my previous work
experience in the car manufacturing industry. There were several factors, which led to
instability in an organization such as the relation between time and delivery, which
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employees lacked a full understanding about this. Therefore, we can improve this
knowledge by: Educate them on how to deliver the products in time by implementing
KPI or any indicator into the system. This will allow them to know when is the
appropriate time to deliver products and to inform customers. Eventually, this issue
will reduce the pressure on employees or what we called ‘outside preacher’ and allow
them to have more time to work. To have an effective plan, we have to start with
fixing problems, weaknesses of employees and flaws in the organization. In the
meantime, when we try to prevent more problems from arising, we will see more
flaws and be able to see through them clearer each time (Mr. One).
A good leader will facilitate the work process and ensure that it is
appropriate to the specified target. There are different levels of leaders, each with
varying roles and responsibilities. Policy development represents the clarity of the
executive team. A policy will clearly inform everyone in the organization of the
company’s objectives as well as what the employees will receive, which is undeniably
true in the real world.
Leaders play a major role in the work success, “leaders are very important.”
Leaders’ visions play a significant role in the business’s success.” (Mr. One, Page 9).
Mr. One added that a leader is similar to a person on an island who can instill the
belief in other people that such island has advantages and can convince them to come
to the island. In other words, a good leader must be able to create confidence amongst
members of the organization, “Once I have been told, to get to where I am today or
the job that I’m doing now, you as a leader must imagine yourself as if you’re on a
remote island. No one can see you and there is nobody you can see. What’s important
for the leader is the ability to take your colleagues with you. You need to make them
see what you see. This is very important.” (Mr. One)
A good leader must be able to understand and acknowledge the scope,
opportunities, and limitations of the lean manufacturing system that will be
implemented. As Mr. One compared leadership to the persuasion of people to come to
the island and develop the island in conjunction, the leader must acknowledge the size
of the island and the existing resources available, “They need to see that vision.
They need to know the island well first, how big and what the island has” (Mr. One)
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A good leader must have a clear objective and strategy to lead the
organization to success, “You need to create a clear vision in order to transform a
dead island into a country or continent. However, this is not easy as everyone comes
from different backgrounds and cultures, hence the understanding and perspectives
are different. It would be impossible for everyone to learn at the same speed and this
will take time. Consequently, it is necessary for the leader to understand each and
every person and adapt to their characteristics.
This action is adapted to achieve what we called a strategy” (Mr. One).
Mr. One further affirmed that a leader is the principal mechanism that will lead an
organization to success “Leaders are the key factor to run an organization.
The ‘change’ I have been talking about is the significant change in an organization”
(Mr. One)
A leader does not need to know everything but must be able to lead the team
to success, or at least make the organization survive sustainably in the direction that it
wants to be.
“They don’t necessarily need to know everything but they need to know how
they can survive on the island” (Mr. One). Apart from leaders in the organization,
Mr. Four perceived that it is also necessary and appropriate to have one additional
position for coordinating, implementing lean manufacturing practices, and examining
the results. Such position may be a CI Manager or Operation Excellence Manager.
Mr. Four further supported his idea that, “Being energetic, yes. This is the feeling
I got from the first companies I worked with. The managers debated in the meeting
room. Someone I did not know but after some talking about this, they felt there was
light at the end of the tunnel, but they did not know how to get there. So, they’d need
a specialist department. I think it’s necessary like it’d be excellent if everyone is good
at this, but of course it’s not possible. If managers want to do this they would be asked
“What’s this called?” and they’d be in trouble. They’d need assistants on this, like CI
because CI does not have to do anything else. CI is all about learning and improving.
For example, we still need doctors even with abundant pharmaceuticals or newer
tools. We still need specialists to do hard jobs but we can do some basics ourselves.
The executive has to lead, they don’t have to know how to do it, because once they
lead, everyone down the chain will follow” (Mr. Four)
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According to Mr. Four, middle-level managers and low-level managers must
follow the senior-level managers by nature. However, a mechanism that will drive the
implementation of lean manufacturing system to be effective and efficient is a
position that is specific to lean manufacturing.
4.3.7 Differences between the Two Perspectives
Table 4.7 Differences between the Two Perspectives
Category Codes
Differences between the Two
Perspectives
Result Oriented
Process Oriented
Development
Leadership
Behavior
Different
Management Style
Based on the interviews with five experienced individuals in lean
manufacturing, it can be concluded that western and eastern styles of management
have both similarities and differences. Mr. One explained that, “To answer your
question, yes, now almost every organization in the world has become “Results
oriented”. However, I would like to repeat again that this is not a long-lasting
solution. What will last long term is “Process oriented” (Mr. One)
He further emphasized that, “I would say everyone focuses on results.
However, this strategy isn’t long term. It’s not an effective development. This type of
development can become ineffective over a period of time if we lack good and stable
leadership. Therefore, I believe the best management would be focusing on process.
For instance, “Process delivers Results”, which leaves process as a dominant factor”
and “The dissimilarities between Europe and East Asia are; corporations in Europe
have their aims in making profit and return on investment. Whereas corporations in
East Asia concentrate on perfectionism and excellence. Nevertheless, being excellent
doesn’t necessary mean they are well developed in process” (Mr. One)
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In addition, Mr. One used Toyota as an example of the ideal company that
has adopted lean manufacturing practices by asserting that, “Toyota, for example, is a
good example of East Asian corporations. However, it is beginning to lean towards
more results oriented. The world is changing and it is affecting people’s behavior and
their visions” (Mr. One)
Alternatively, Mr. Two viewed the differences between the management
styles of eastern organizations and western organizations with a different perspective,
“All companies are different and multi-national companies operating in other
countries usually adapt their operations to many of the local ideas and customs of the
workforce. The overall “culture” of the company is definitely influenced by the
management team and their focus. Some examples include an American company’s
focus on the bottom line and maximizing profits sometimes only in the short term,
a European company’s focus on social responsibility and safety accountability, or an
Asian company’s focus on strategically becoming a “world player” in the chosen area
of service or technology. Of course, you will find these same behaviors or aspirations
at many companies globally, I am speaking only in generalities. I would also
comment that companies that have truly adopted the principles of lean, operate
differently as well, but when compared to other lean companies are quite similar in
management style regardless of the country of origin” (Mr. Two)
Meanwhile, Mr. Five perceived that, “For western countries, it’s true that
they focus on the results. For eastern countries, they focus on the organizational
culture. It seems like they believe that if the people and process are good, the work
will be good” (Mr. Five)
Employees in Japanese companies will adapt their identity to the corporate
culture, as explained by Mr. Five: “Japanese companies emphasize on the standard.
In terms of development, they would use the suggestion system. It’s like in their
blood. I really have to accept that their training is superb. People follow the rules and
the system. No one really breaks the rules. I think it’s their organizational culture”
(Mr. Five)
In addition, Mr. Three, who has over 10 years of experience in both western
and eastern organizations, explained the differences between the two management
styles that, “For East Asian organizations, they involve their employees as a part of
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their developing process. They accept suggestions or ‘kaizen’ in Japanese throughout
the development. They primarily focus on the bottom of the organizational structure.
As opposed to Western organizations, who insert a different approach. They focus on
what we called ‘break to drive the result’, which generally lacks understanding about
the importance of the bottom of the chain. Therefore, the perspectives on ‘break to
drive the result’ is different between two cultures. East Asians see this approach as
a ‘continuous improvement, kaizen’, which allows steady and consistent
improvement. It also involves everyone to be part of it and increases their self-
esteem” (Mr. Three)
All of this information has enabled the researcher to acknowledge the
differences between the management styles of western and eastern organizations,
through the experience of the interviewers.
4.3.8 Appropriate approach to be implemented in an organization in
Thailand
Table 4.8 Appropriate Approach to be Implemented in An Organization in Thailand
Category Codes
Appropriate approach to be implemented in
an organization in Thailand.
Mixture
Combine
Balance
Individual
Capability of the workforce
Combination
Foundation
Balance is the essence. According to Mr. One, “I think it will be a mixture.
We need to combine as everything has its pros and cons.” Mr. Two also provided
a similar opinion that, “We must have balance in order to compete in the marketplace,
but still maintain the cultural identity of the organization, Balance is key.”
Mr. Two asserted that “Thailand, with increasing interaction with multi-
national companies, is becoming a more heterogeneous mixture of both western and
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eastern management styles. This is advantageous so long as a company adopts the
positives from both styles of management and tries to avoid the pitfalls of each style.
So long as the core principles of lean management are used: development of the
individual, mutual trust between all employees and at all levels of the organization,
and an un-ending desire to improve, the company will be able to find the right
balance. As the capability of the workforce increases, more autonomy and
empowerment can exist at the individual and small team levels” (Mr. Two)
Similar to Mr. Five’s perspectives, a balanced and perfect combination
should be implemented in Thailand, “I think that there needs to be a combination.
For instance, having a clear target along with developing the employees. I still believe
that if we have good people, the work will be good. However, if we don’t have a clear
target for them, they will be lagging behind” (Mr. Five)
Mr. Five also referred to the origin of lean manufacturing system that has its
foundation from the eastern organizations. Hence, it is not surprising that the
implementation of the lean manufacturing system in Thailand should be more inclined
towards the eastern style, “The lean system actually comes from Japan. As you may
have realized, the foundation is not different but the practices are different.
In a Japanese company, they would follow the concept that tomorrow must be better
than today. It’s the lean or kaizen or whatever they call it. All of the lean tools are like
in their nature and they use kanban like it’s a normal thing” (Mr. Five)
4.3.9 The reason for choosing this Lean implementation method in
Thailand
Table 4.9 The Reason for Choosing this Lean Implementation Method in Thailand
Category Codes
The reason for choosing this Lean
implementation method in Thailand
Engage , Engagement
Study
Consultant
Methodology
Human development
Direction
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Table 4.9 (Continued)
Category Codes
The reason for choosing this Lean
implementation method in Thailand
(Cont.)
Enforcing
Policies
Expendable assets
Mid-term and long-term goals
Many organizations began with trials and errors, and sending employees to
learn and gain direct experience from a particular place as deemed appropriate by the
manager. Mr. Four stated that, “The executive team in Thailand started to plan and
send employees to train at various institutes. So, I had the opportunity to engage in the
training and acquire new knowledge. I went to study in Vietnam for about one year
and three months. At that time, I was no longer a process engineer. I was working as
a change agent or CI, overseeing and improving everything related to lean. I worked
there for eight years, then I became a manager” (Mr. Four)
Moreover, Mr. Four recited his experience after the training, where he was
able to use the consulting system for a more rapid development, “We hired
a consultant from Europe to be stationed at the factory. We were also sent to Europe
for training. We didn’t really have a Japanese culture. Although we did study about
Kaizen, it wasn’t our emphasis. They mainly focused on the project. After that,
I went to American Automotive Company for five years and continued to work as CI.
Eventually, the executive of Indonesian Company Group assigned me to oversee the
factory in the countryside to implement the lean approach. My role was similar to an
operations manager of a small department. I then realized that it was time to challenge
myself, so I decided to enter the automobile industry. The automobile industry was
truly an American style but there weren’t that many differences apart from the
addition of six sigma in the process” (Mr. Four)
Mr. Four explained about the early implementation of the lean
manufacturing system in Thailand. He stated that balance is the key because Thai
society is an Asian nation. A process-oriented approach is necessary for the
sustainability of an organization. The development of a system from a low level will
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strengthen and stabilize the organization’s foundation, as illustrated by Mr. Three.
He believed that such an approach would never be harmful. However, the result-
oriented approach with clear performance indicators will contribute to the clarity of
the objectives at work, which will consequently enable the organization to develop
incessantly and sustainably.
Additionally, teamwork is regarded as one of the factors that will lead an
organization to success. The eastern-style establishment of connections and the
western-style provision of constructive feedback will enhance the efficiency and
success of problem solving. Accordingly, a leader is an important person in team
management. Mr. Two explained the integration of the concepts that, “Lean is a
methodology but also with many tools and techniques. Emphasis only on results will
result in frustration and eventual burnout, while emphasis only on relationships will
paralyze continuous improvements and create lack of engagement. Successful
integration and implementation requires senior management who have a vision that
can be converted to tangible goals and objectives, project managers that know how to
convert targets into manageable projects, and front-line (office or shop floor) teams
that are continually trying to find better ways of doing things to refine the standards
and solve problems. Empowerment, accountability, and trust are key on all levels of
the organization. These principles operate irrespective of culture, location, industry,
or management style” (Mr. Two).
As for Thailand, Mr. Four believed that government support will enable the
lean manufacturing system to be developed in a continual and sustainable manner.
He perceived the lean approach as one way of reducing the use of natural resources,
which should be supported by the government, “I see this in many factories. Factories
do have human development. I thought it partly came from government policies, like
the percentage of people to be trained, CSR can help with taxes, environmental and
energy policies, etc. Factories have to adapt. Like here, we have to make energy
conservation plans every year because of government promotions.” (Mr. Four)
Mr. Four interestingly explained that, “Direction from the manager has to
align and be aware of external profit, government policies and how to keep the
necessary employees. If we can find a balance of all three, like reasonable profit,
responding to the government policies which, in theory, are supposed to protect the
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people, the environment, and quality of life. The third is employees must be
comfortable and feel safe working here. With said three, they can stay fine. I think
this is a sustainable business model. But the third has the most impact because of
much intelligence like innovation and automation. Many see humans as expendable
assets or some departments are already automated. The third part is still risky in my
opinion. Our personnel must keep developing themselves, be it knowledge, skills or
attitude” (Mr. Four)
The support – or sometimes referred to as the pressure – from government
agencies will enable the development of a lean manufacturing system to attain
efficiency and sustainability. Moreover, Mr. Four also compared the laws of energy
conservation, “Yes it’ll be a bit hard. It’s not like enforcing energy or environmental
policies, those are laws, but they can’t force all factories to use lean” (Mr. Four).
The involvement of the public sector, according to Mr. Four, should undoubtedly
emphasize the development of the lean manufacturing system, which contributes to
a reduction of the use of natural resources in an efficient, effective, and sustainable
manner, “I think about Thai factories, of course. If the state does not have much
impact. The factory sets profit goals, and early profits comes from waste reduction,
So, Lean Six Sigma helps a lot but when it’s at the low hanging fruit point, if we keep
reducing waste but not educating people, and they have no skills, the fruit will be
gone. Then we move to complex mid-term and long-term projects which need
specialists. If the manager wants to do it like…..First, the manager has a vision of
going this way. Second, put short term goals on like low hanging fruit, control the
bleeding, reduce waste, and the like. But we still must have mid-term and long-term
goals. Mid-term goals are…” (Mr. Four)
4.3.10 Problems and Obstacles of the Implementation of the Lean
Manufacturing System
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Table 4.10 Problems and Obstacles of the Implementation of the Lean Manufacturing
System
Category Codes
Problems and Obstacles of the
Implementation of Lean Manufacturing
System
Full time
Consultant
Outsider Specialist
Loyalty
Solution
The problem
Mr. Four explained about the problems and obstacles in adopting a lean
manufacturing system. Such problems range from the aspects of practice, continuity
of practice, and all the way to human resources. “Management has to assess its
results. If we have skilled people in the organization then we have people who are
familiar with the process, product, etc. We can send them to learn more, or if we take
a moderate approach we have consultants. They don’t have to implement things full-
time, but there is something like Total Plant Assessment, like they come once
a month, find problems and make suggestions. They don’t have to work on
improvements themselves, we do, and we pick what we can or cannot do. The third
thing is hard, we have to invite outsider specialists, pro CIs, like we have to walk
them through things. The problem is it can be very expensive as they have certificates
and are very much in demand. The second type we have plenty in Thailand and
government agencies like TPIF has a cheap service. But once we have the list, the
problem is our people don’t know or understand what to do” (Mr. Four)
Another issue that results in a discontinuity of the development of lean
manufacturing system is when lean manufacturing leaders were acquired by other
organizations due to the fact that they are in high demand and the fact that every
organization would like to reduce their costs, “We have to give them time to study
and do it. Solution 1, 2, and 3 are good in different ways. In solution 1, our people
have high loyalty and are familiar with the process and product. They know the ins
and outs but they are too familiar with the process to change. Solution 2 has expenses
115
and the people coming won’t know about the process but they can generate solutions.
The third option is more long-term. They know how to do it, but they need time to
learn our process and product from us. They are expensive, of course, the market is
good. CI guys won’t stay for long, whether by their own abilities or got pulled
somewhere else.” (Mr. Four)
4.3.11 Strengths and Weaknesses of Western and Eastern Management
Table 4.11 Strengths and Weaknesses of Western and Eastern Management
Category Codes
Strengths and weaknesses of Western
and Eastern management.
Specify
Productivity
Saving
Result
Process
Speed
Slow
Short term
Long term
Training
Education
Overlook
Attention
Profit
Quality
Flexible
Record
Empowerment
Conclusion
Offensive
Hierarchy
Seniority
Growth
116
1) Strengths of the Western Management Style
According to Mr. Five’s perspectives, the major strength of western style
management is that they implement lean manufacturing practices to produce results.
They fully utilize lean manufacturing to obtain the optimal results. The clarity of
goals is the ultimate strength of western management style “They would tell you the
output that they want. Then, they would use the lean system as a tool to achieve the
result. For instance, at American Company, they would specify the target that they
want for the cost per unit. After that, we would have to decide whether we should
train the employees or not. If the training doesn’t improve productivity or reduce cost,
it wouldn’t be worth it. Therefore, companies that strongly focus on the results also
have problems. But it’s also a good thing because we have to really consider whether
we can produce the result” (Mr. Five)
In this aspect, Mr. Four perceived that the emphasis on results of western
management style is a wise practice that can be used to develop an organization. It is
one of the examples that illustrates the clarity of western organizations, “Western
countries typically focus on the results. I used to work at an American company and
my current company is also western, they require specific results to an extent. For
instance, this year has to have a minimum of whatever the number of output quality or
project or savings. All of these can be measured. It’s pretty smart” (Mr. Four)
Also, Mr. Five believed that such clarity facilitates the operations and
enhances efficiency. “Western companies will have a clear plan. In the aspect of lean,
they will clearly specify what they want. For example, at a Europe Company, their
lean planning (as per the attachment) is very clear and straightforward. This is a good
thing. It is different from Japanese companies that don’t specify what they want. The
western company wants clear results. They don’t really care about the process as long
as they see the results” (Mr. Five)
Another asset of western organizations is a flat structure, as Mr. Three
stated that a flat organizational structure speeds up the working processes and
improves flexibility. “It’s the speed” (Mr. Three)
2) Weaknesses of the Western Management Style
Although the management style of western organizations emphasizes
results, which are probably what every organization desires, there are still many
117
weaknesses in the perspectives of lean manufacturing specialists. If we were to
implement western management style for development or to adopt lean manufacturing
practices in Thailand, Mr. Two affirmed that “Sometimes this may remove the
“human” element of work and individuals are viewed as “cogs” in a machine or
“pawns” in a game of chess. Also, this may drive a company to focus on the short-
term profits at the expense of the long-term development of the organization. Lean
tools are sometimes used to achieve higher profit margins at the expense of
developing the individual or customer relationships.” (Mr. Two)
Accordingly, it is considerably challenging to apply lean manufacturing
practices in Thailand in a sustainable manner if we solely focus on the results like
western organizations.
In the perspectives of Mr. Four, western organizations that accentuate
merely on short-term results may lead to problems in the aspect of development.
Based on his experience, “New American company, they are very business-like so
employees cannot suggest as much. Only some factions can do that, and of course it’s
impossible for some departments that have to run their machines 24/7. You’d need
queuing or OT which are not popular. So, cost is the main reason New American
company does not invest in education as much as American automotive Company.
But 2-3 years ago, they started improving because of VOE. We took feedback from
the employees and used it in leaning, called True North, to see what they needed.
They actually feel better after improvement because we have done a lot: income,
working environment, benefits, even food and drinks. So, they feel that their voices
matter.” (Mr. Four)
Moreover, Mr. Five perceived that if an organization focuses too much on
the results, it may create problems. He further elucidated that employee training
carries some costs but the return on such investment is difficult to predict, which
consequently leads to pressure and the unwillingness to provide training, “After
training, what will the employees do? Will it be worth the training costs? It’s not like
the Japanese company that provides training just for learning and improving the
employees’ attitudes. Here, I have to analyze whether it is really necessary to provide
training. It’s hugely different in this context. There are much fewer employee training
here.” (Mr. Five)
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Similarly, Mr. Three believed that focusing on the results alone may lead
to negligence in developing the process. Once the executives or employees have
achieved the expected results, the process development will therefore not resolutely
be executed, “However, there is a downside to this approach as the Western working
style tends to overlook their process, as their main focus is results. This suggests that
their working style may not be as efficient as the Eastern working style. Eastern
structure would look at the results but also focus on their process consistently. This is
the reason why they can be more effective in developing their structure.” (Mr. Three)
Thus, concentrating only on short-term results may impede development;
and it is necessary for the researcher to further examine such problems and identify
solutions, which are appropriate to the nature of Thai companies that are looking to
apply lean manufacturing practices as a means of development. Mr. Three concluded,
in short, that “They tend to overlook some points during the process, such as when we
only focus on results, we often don’t pay enough attention to the process. This could
then cost the organization so much if there is need to some changes or to redesign
something.” (Mr. Three)
3) Strengths of the Eastern Working Style
According to Mr. Five, the working style of Japanese firms has various
advantages and is somewhat impressive, “I believe that there are three unique points
of Japanese companies. First, they manage profits by controlling costs. Second, they
emphasize quality. They are willing to throw uncertain things rather than letting them
go. Third, they are flexible. If the employees resign, it does not affect operations.
There will always be people who can fill the position.” (Mr. Five)
Moreover, Japanese firms also have strengths in the aspects of recording
history or solutions to the problems, “Japanese people will record necessary
information in the report. They will follow the specified standard as a part of their
routine, without having other people to tell them. They will feel like they own the
work. What I like most about working with Japanese people is that they work
effectively as a team. They will help each other to solve the problem.” (Mr. Five)
In the perspectives of Mr. Three, the emphasis on creating sustainability
through human development is regarded as one of the strengths of eastern companies,
“They focused on developing their employees by motivating them with a clear vision
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and growth in the career path. They projected a clear vision and showed that their
contribution is a part of the organization’s success. Hence, employees were motivated
to work hard for that goal. The organization also valued and appreciated their
employees by imposing fair treatment and equality.” (Mr. Three)
4) Weaknesses of the Eastern Working Style
Mr. Two asserted that the culture of eastern organizations has some
weaknesses that should be improved as follows “Sometimes inaction and lack of
empowerment is the result, as individuals are paralyzed with worrying about how
their actions will impact others, their boss, or the company. Also, accountability
sometimes is overlooked in an effort to “save face” when issues arise. At a Lean
company, problem solving is done as a team requiring consensus and approval by
a manager. This may cause a slow rate of change as consensus or management
approval may be difficult to achieve.” (Mr. Two)
Mr. Five explained about the weaknesses that he had encountered in the
eastern organizations that, “There are both advantages and disadvantages. For the
Japanese style, it is stable but slow. The atmosphere will be good because the
participating groups have a good connection. In other words, they speak the same
language. They collaborate with each other as a team to compete, although there are
times where the supervisors would order their subordinates to participate. But at least
the supervisors are in favor of the competition. But as I’ve mentioned earlier, the
results are like by-products because the topics are very open, such as quality
improvement, productivity, cost reduction, or even safety development. But there are
some periods, for instance January, when they will focus on safety. Whoever has
a suggestion on safety or organizes activities on safety development might receive
a special reward. Another element is that Japanese people like to communicate and
brainstorm ideas. They can discuss or talk for hours without reaching a conclusion.
They are not really straightforward because they perceive that frank people are
offensive, so there are hardly any disputes at work. The working atmosphere is nice
but sometimes it is slow.” (Mr. Five)
In the perspective of Mr. Three, the excessive concern of seniority in
eastern organizations may potentially demotivate employees, “Going back to the topic
of weakness in the Eastern structure, I agree that hierarchy in the organization can
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prevent career growth of potential employees. Where I’m working at currently is
a mixture of Thai and Japanese cultures, therefore it is not a full Eastern culture.
However, I have to admit that it is 70-80% true about the seniority structure.
I understand that the longer you work and you’re in the organization, the more chance
you have to grow, because you’re more senior. So, I would agree yes, this could be
one of the weaknesses in Eastern culture.” (Mr. Three)
4.3.12 Lean Manufacturing For Thai Industry
Table 4.12 Lean Manufacturing for Thai Industry
Category Codes
Lean Manufacturing For Thai industry
Foundation
Clear Vision
Road Map
Vision
Dream
Change Management
Philosophy
Demonstrate
Learning by Doing
What is in it for me
Personality
SWOT
Career Growth
Financial performance
Lean Tools
Firstly, it is necessary to understand the nature of the organization. If the
organization is new and requires management, Mr. One interestingly stated that, “If I
were to set up a new organization in Thailand, we would first need to structure the
foundation with a clear blueprint and a proper system. Then, we would recruit suitable
employees and implant a clear vision in their mindset. Consequently, the blueprint is
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the first most important step for the organization to have. Secondly, would be the
recruitment of the right employees to fit in the blueprint. This is an effective approach
for the organization to become successful and sustainable. However, it is quite
impossible to find the perfect person or the ‘perfect fit’ for each role in each
department.” (Mr. One)
According to Mr. One, it is significant to initially create a blueprint and
establish standards. However, prior to the establishment of standards, the organization
must first solve the problems that it encounters at that particular time. Otherwise,
it would be difficult to solve the problems.
A vision should be correctly planned, since the presence of an operational
plan will provide an appropriate work prioritization. Change management must also
be implemented suitably and in steps, as suggested by Mr. One, “I wouldn’t say it is
exactly like a ‘Road Map’ as vision comes from dreams. Vision can only come true
when we insert facts and figures into it. Therefore, vision is the first perspective you
have on what you want to achieve. If you have a clear vision and that vision is to run
an organization without using a ‘top-down’ approach, you will gradually find out
what you need to do and slowly develop that into an organization. All in all, an
effective plan to develop and implement change in the existing organization is what
we call ‘Change management’, which consists of PDCA – plan, do, check, and act.
‘Check’ is the most important performance we need to do consistently and
thoroughly. This is because we need to find the affecting factors and be able to reduce
and prevent them as soon as possible, before other factors get affected” ( Mr. One)
After that, the strengthening of the understanding amongst the team should
be emphasized, “It’s the matter of how clearly we project that vision to everyone.”
(Mr. One) Mr. One said.
It is necessary for an organization to encourage everyone to participate in the
development, concerning the fact that effective teamwork will help the objectives to
be achieved more easily, “What do we see in our dreams? How can we put our
dreams into action to achieve our vision? Let your employees be part of this journey
till the end of your achievement.” (Mr. One)
Nevertheless, it is essential to inform employees of their rewards or what
they will receive, instead of explaining to them what the organization will achieve;
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because Mr. One believes that, once employees know their rewards, they will put their
best effort to ensure work efficacy and effectiveness, “I used to work in the United
States and have done CI (Continuous Improvement), when I moved to Europe I still
applied the same philosophy. Yet, in a slightly different way of approach because
their culture and thinking are different from Americans. Their point of interest and
‘what is in it for me?’ is different. Similarly, when I come back to Asia, the point of
interest and culture is also different.” (Mr. One)
Accordingly, it is significant to communicate the organization’s vision to the
employees and ensure that they understand the message clearly, as stated by Mr. One.
In addition, an integration of admitting mistakes into the corporate culture will further
convey the sincerity of supervisors to the employees, “We need to be clear and make
sure everyone has the same vision that we do this for the organization. Losing self-
image is not a primary concern. Leaders or managers have to demonstrate this style.
They have to show they are brave enough to admit, to say ‘sorry, I made a mistake’.
Therefore, their employees will learn from them and gradually adapt that into their
working style.” (Mr. One)
Training should be conducted at all levels; whereby it shall not be restricted
to classroom learning. Rather, a variety of learning should be incorporated, such as
learning by doing.
1) Human Resource Management for Implementation
Mr. One, who has much experience in implementing lean manufacturing
practices, asserted that the implementation of lean manufacturing practices requires
the assessment of people and the organization to facilitate the process and ensure
efficiency. In addition, it is important to understand the motivation factors of
employees to increase their level of performance. Some might be motivated by career
advancement, while some might prefer monetary compensation, self-esteem,
reputation, or job security. Thus, it is necessary to understand and fulfill the needs of
employees in order to increase the probability of success of implementing lean
manufacturing practices. “What I have done and I still believe it is the right thing to
do is to be clear with your dreams and know what you want. Because in the end, the
ultimate desire for every human is ‘what is in it for me’? That means when they don’t
get what they want or think that it isn’t useful for them, they won’t enjoy doing it.
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This will lead to a low success rate. Therefore, the most important thing is you need to
make sure your employees know what benefits they get from their jobs such as
experience, fame, interesting ideas, new concepts, or opportunity in career growth,
etc. All of these will be a motivating force to drive them and motivate them to do
things they might never have done before. To achieve this approach, you need to have
an understanding of SWOT- Strength, Weakness, Opportunity and Threats. You can
use SWOT to analyze the personality of your employees. Hence, you know what are
their strengths, weaknesses, opportunity to grow or develop, and threats. Once you
have an in-depth understanding of this, you will be able to lead them in the right
direction.” (Mr. One)
Mr. One emphasizes on the execution of the lean manufacturing system
through the development of process with thorough understanding. Such in-depth
understanding will enable the organization to implement the lean approach in
a sustainable way, which will develop the organization while minimizing risks.
“The majority of organizations only focus on applying these ‘tools’ into their work
system but they don’t understand the whole purpose of it. Therefore, these ‘tools’
only serve short-term, which is opposite to the approach of Lean. Lean doesn’t aim to
serve short term. It is created to serve for long term purposes. It focuses on stability.
Most organizations use Lean as their short-term goal such as to improve their
financial performance or only to get short-term results. Hence, the implementation of
lean isn’t so successful. If you do a internal check in those organizations who called
themselves as ‘lean’ carefully, there is actually less than 1% who became successful
with this new implementation. Those who didn’t succeed was because they used lean
to only serve their short term results and did not consider sustainability. Therefore,
these organizations can be at risk at any time. (Mr. One)
Hence, human development is a crucial factor, which may begin from
recruitment and all the way to systematic development. “Or in another words, we
can’t ‘plug and play people’ when it comes to recruitment. The key to recruitment is
we have to understand each employee’s characteristics, being both their weaknesses
and strengths. Then, we will know which role will be the most suitable for them,
or how to improve that person’s weakness to fit in our blueprint within the most
effective time period. For all businesses, time is money therefore we can’t afford to
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waste time. This we also call ‘work in progress’, which allows us to develop our
employees all the way through from the first step of recruitment. This is similar to the
concept of ‘coaching on job training’. Coaching is also one of the key approaches for
a start-up organization to become successful.” (Mr. One)
Sustainable development does not occur from the orders given by
supervisors. Although such circumstance may be necessary in the beginning, it is
undoubtedly more reasonable to enable those with direct responsibilities in lean
manufacturing to suggest ideas and develop their own work, which will be more
sustainable as stated by Mr. One, “After applying the ‘bottom up’ approach, we then
look at the ‘vision’ of the organization. What problems do we encounter over a period
of time? What is our biggest problem? Which problem is the priority? At the same
time, we have to follow our blueprint as a reminder of what our plan and goal are.
Usually, we divide our developing plans into 3-5 years. We develop different areas
each year, in order to be effective and get better results.” (Mr. One).
Thus, participation at all levels is important and necessary for the
implementation of a lean manufacturing system to be successful, as suggested by
Mr. Two, “All levels of the organization must be involved in the integration.
All levels of the organization must also understand how the integration will be
beneficial, and actively support the integration. In the end, everyone must “feel” the
benefits as well.”
Likewise, Mr. Four had a similar opinion in which everyone in the
organization should participate in adopting lean manufacturing practices with
efficiency and effectiveness, “The structure for every level is different going
international. For example, the manager only has to be a tool user with some
understanding. The implementer has to meet the expert, host a workshop and do the
real implementation. The employee, if they see waste and have suggestions or help
with brainstorming then it’s a level. In Six Sigma we have 5 main levels like Judo,
White that is only knowing how to kick and punch, then Yellow, Green, Brown and
Black belts.” (Mr. Four)
2) Examination and Measurement of Performance According to the Lean
Approach
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Regarding the aspect of creating sustainability in organizations that have
adopted the lean approach, many companies use competition or comparison between
factories to instill enthusiasm in the work and for developmental purposes, as
explained by Mr. Four. “American Automotive Company, before that we had an
assessment tool called XMS, linked to level 5 Lean maturity, which is common
worldwide. Their own Lean Management System has 5 levels too, 5 is the best and 1
is like a beginner.” (Mr. Four)
3) Importance of Lean Tools
Lean tools, in this case, refer to any tool that is used to administer or
manage lean manufacturing practices, such as the Pull System, Kanban, Visual
control, SMED, VSM, and VSD. Mr. One did not give much precedence to lean tools.
He stated that “Right, it is just a tool, which has no impact on developing any new
culture. Culture comes from thoughts and ideas. First, we need to have an
understanding what is lean? What is the sustainable approach? Then we can identify
the suitable tools to accomplish these ideas. For example, you want to build a house.
You can’t build a house with one hammer. You need to have a whole picture in your
mind of how many floors or what types of materials to use. Then you can select the
right tools to build your house. Thus, a tool is just a tool, it isn’t a factor to determine
what we need to do. Generally, it starts with your ideas then comes your search for the
right tool to support that idea. Therefore, Lean, SMED, Standard work, Value stream
mapping, Kanban, and Pull system come later” (Mr. One)
However, Mr. Three perceived that lean tools are still necessary for
solving complicated problems. He believed that lean tools will enable those problems
to be solved effectively, “However, some problems could get more complicated,
hence we need to use those systems as a tool to solve the problems” (Mr. Three)
4) Inspecting and Solving Mistakes from Lean Practices According to the
Vision
Upon the implementation of lean manufacturing practices, it is common
to see that the results are different from what we had expected. Thus, it is important to
inspect and monitor the process, whether it is in line with the organization’s direction
or not. In that respect, leaders must consistently monitor the process and examine the
attained results to ensure that they are in accordance with the predetermined direction,
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as suggested by Mr. One. “I would say as I have already mentioned that leadership is
the most important. The leader’s attitude will be the driving force for the organization.
Secondly, you need to have an understanding about policy deployment. This is an
approach which usually takes 3-5 years in planning. Lastly, after having that plan we
can then focus in more details, which is working on the process to develop the plan, to
find effective solutions and implementation to achieve your vision.” (Mr. One)
The implementation of lean manufacturing practices does not mean that
there will be no mistakes or that everything will be perfect. Rather, the majority of
organizations emphasize on the methods to maintain the momentum of development,
“It can’t be perfect because each person has different perspectives and different
visions. Therefore, what matters most is the ultimate goal that everyone can share,
which is success.” (Mr. One)
4.3.13 Suggestions and Model Lean Manufacturing Implementation
Step by Step
Table 4.13 Suggestions and Model Lean Manufacturing Implementation Step by Step
Category Codes
Suggestions and Model Lean
Manufacturing Implementation
Step by Step
Step by Step
Build Knowledge
Learning by Doing
Brave and confident
Integration
Front line
Gemba
VSM and VSD
Commitment
Investment
Kaizen
DMAIC
Group Leader
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1) Mr. One’s Suggestions and Model Lean Manufacturing
Implementation
Mr. One is a manager with experience in using lean manufacturing to
control operations in the U.S., and various European and Asian countries. Likewise,
he has been a senior-level manager of many leading firms, ranging from an
automotive parts firm to one of the largest jewelry firms in the country. He suggested
ideas step by step as below.
“I have some models in mind. In order to make ‘lean’ effective and
applicable in Thailand and become successful, we need to build knowledge. By all
means, we need to train people by doing or what is called ‘learning by doing’,
encourage people to be practical, develop their knowledge by doing workshops.
They will have a clearer understanding of both theory and practice. Through this,
better knowledge is formed and they will be able to react in real life situations. Books
can’t give you real life examples of what we need to encounter on a daily basis. In the
past, we only concentrated on studying theory and building knowledge by training in
classes. Even today, I can see that people in this generation only know theory but they
lack understanding of practical work. Also, sometimes they can have
misunderstandings and misbeliefs. Hence, a right way of providing knowledge is
important.
‘Learning by doing’ is one of the models that allows us to make mistakes.
We are all humans after all and humans make mistakes. You need to learn from your
mistakes and develop from that. I use this learning as a philosophy in developing
myself all the time. Like there is a saying in Thai ‘where there is the worst, there is
the best’. I see it as a learning process and the opportunity to grow as it does not
necessary mean that in bad times, everything will be bad.
At least you know what you need to do and what not. On the other hand,
when you’re in a good organization, you can learn from successful people and their
experiences. You can improve what you think will work best according to your
experiences and apply it with yourself or a new organization.
This is a good example for Thais to learn to be expressive, brave and
confident to share their ideas. I wouldn’t say there is a fixed model or a right model
for anyone in particular. The model should be adaptable to develop the growth of
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individuals. If each individual or employee is full of strength, the organization will
also have strength to succeed. That’s my belief” (Mr. One)
2) Mr. Two’s Suggestions and Model Lean Manufacturing
Implementation
Mr. Two is an American citizen with a consulting experience in lean
manufacturing. He has also worked in one of the largest American firms in the
country. He has been a lean manufacturing consultant in Thailand, Singapore, China,
and many other Southeast Asian countries. He suggested the following ideas.
“First, senior management must drive the integration; therefore, they
must be able to understand the integration process and desired outcome from the
beginning. They must be trained and active supporters of Lean deployment from the
very beginning.
Then, project managers or lean experts must be developed to lead projects
and teach others. Training is not sufficient, they must have experience and have the
knowledge level required to “train the trainer.”
Then, front-line (shop floor and office) teams must be trained on Lean
methodology, waste analysis, and problem-solving techniques to drive continuous
improvement on the Gemba.
Finally, the company needs to establish a review and performance
management system to validate effectiveness and launch deviation management
when variances from the target exist. Strategic planning needs to be done with an
end-to-end mindset using tools such as VSM and VSD.” (Mr. Two)
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CUSTOMER
MIDDLE
MANAGEMENT
TOP MANAGEMENT
Figure 4.1 The Implementation Model (Mr. Two)
3) Mr. Three’s Suggestions and Model Lean Manufacturing
Implementation
Mr. Three is an experienced executive with expertise in an array of fields.
He has been working in an electronics firm co-funded by Thai and Japanese investors,
an automotive parts manufacturing firm co-funded by Thai and American investors,
SHOP FLOOR CIP
“Live Standard”
Flow CIP, Pull CIP
“Create Standard” “KAIZEN”
SYSTEM CIP
CHANGE
MANAGEMENT
“SET VISION”
Process
Confirmation
Manager
Process
Control
Shop
Floor
Leader
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an Australian automotive parts manufacturer, a German automotive parts
manufacturer, and a European jewelry company. He suggested that:
“Based on my experience of having worked for both Eastern and Western
cultures, I would adapt different cultures into different phases in the process
development. Firstly, is ‘launch’. In this stage, I suggest to apply a Western
working style as this style will first focus on results and help to drive results more
effectively. Then, we would consider to design the right process to fit in our results.
The second phase is ‘normal’, this is the stage where I suggest to implement an
Eastern working style. This stage consists of rules, orders and discipline. With Eastern
culture, there is not much to do to in this stage as most East Asians are already
disciplined and follow the rules. Therefore, having the first stage as a Western
approach can provide advantages for the second stage which has an Eastern approach.
To clarify, as we already planted a clear goal and vision in the first stage with an
effective Western approach, we can then easily follow that structure. The employees
just need to follow their instructions or what we call ‘follow standardized work’.
Any problems arise will get resolved effectively with this development plan.
However, nowadays problems arise from the design stage. Hence, I need
to emphasize the right design by implementing a Western approach. This followed by
applying an Eastern approach as a driving tool in the second stage. The employees’
discipline will drive the work and through this we can create a consistent process.
Employees just need to follow the standardized work, which I think is enough.
In conclusion, I suggest that the organization should integrate both cultures. First, the
‘launch’ phase with a Western approach and second, the ‘normal’ phase with an
Eastern approach. (Mr. Three)
Mr. Three adopted the concept of Six Sigma in the lean manufacturing
system, which is known as DMAIC. Mr. Three perceived that the utilization of such
principles during the launch period is highly beneficial. “Launch is the approach
using in-depth theory called DMAIC, which is a tool like six sigma because with
this theory you can define problems and measure every factor. DMAIC stands for
define, measure, analyze and improve. Particularly in the ‘launch’ stage, what I
focused on is improvement by using optimization and DOE. This is very important
because sometimes our design hasn’t yet been optimized correctly for the design
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process, in order to get good results. The shorter the process, the better, which is the
most important. Following DMAIC, I mainly emphasize on I (improvement) and then
A (analyze) to get the optimized results to get in control before passing on to the
‘normal’ stage. After this stage, we can finally start mass production. I think this is the
most important concept for organization to have in Thailand, especially the ‘launch’
stage.” (Mr. Three, Page 15)
In order to create sustainability thereafter, Mr. Three proposed the
methods of monitoring and control through the incorporation of eastern principles.
“Then it comes to the ‘control’ stage. Control is the sustainability and it comes
from a successful process. The important factor to consider in this stage is training,
train employees to have a full understanding of the procedures and standardized work.
I want to emphasize on the concept of control.” (Mr. Three)
As we penetrate the level of practicing the lean manufacturing approach,
leadership techniques are applied to maintain the standards and to develop
sustainably. According to Mr. Three, leaders in a lean enterprise must have the roles
and responsibilities that include: “Control means having a good management team.
This means that it is important to have an effective ratio between team leader and
team members. This should be 1:10, being one team leader per ten team members.”
Mr. Three (Page 16) said the ratio of line Leader vs Subordinate is a concern,
“The team leader is the key driving force to an organization’s success. Therefore, this
is the reason to have a good leader. Leaders play a significant part in the beginning
stage as they will be the ones who define problems and find solutions. This is vital
particularly in the control stage and the normal stage. It is necessary to have team
leaders who are disciplined, and understand the procedures and standardized work.
I would suggest a ratio of 1:10, not more. Team members will need a good
knowledgeable leader to lead them in the right direction. A knowledgeable and
effective leader will be able to run a successful organization. They can train and
support their team members. This supports the concept of an Eastern approach.
Toyota is a good example of this. They focus on team leader roles and their
effectiveness in solving problems and leading their team members. They can help
their team members to solve problems efficiently. However, in Eastern culture, team
members can still perform and continue their process without having the presence of
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their team leader. Or if a team leader is there, he/she will be the one who solves the
issues.” (Mr. Three)
The leader’s role in Lean Enterprise must be responsible and accountable.
“The first leadership level is team leader, who is at the ‘shop floor’ level, after
that will be a GL (group leader). Group leaders have more responsibilities and are in
charge of team leaders in handling their team members. A group leader is the back
support for the team leader. The numbers of team members that a group leader should
have depends on the scale of each organization. Some organizations may have a ratio
of 1:10, one group leader per 10 team leaders. This is seen as a foundation of strategy
in the organization. For example, the group leader is in charge of productivity.
Productivity can be divided into many sectors such as health, delivery, efficiency at
work, etc. These are all the group leader’s responsibility.
However, some organizations start off with a group leader and then
a manager because group leaders can manage a bigger and broader scale. They would
be taking care of 3-4 processes from the beginning to the end. Sometimes, team
leaders cannot solve the problems because they don’t have the authority to make the
decision. Sometimes these problems don’t come from them, hence they need to report
to their group leader. Group leaders are responsible for the overall performance of the
organization. This includes the production process, operation process in the ground
level of the organization’s structure and maintenance as well. The manager then
comes in last. The manager is responsible for a broader overall performance of all
employees in order to achieve the company’s objectives. They are the ones who have
to be responsible for all departments and each process. For example, the efficiency in
productivity or the delivery within the time frame. However, the most important
responsibility is to achieve the maximum profit while having the lowest cost. This is
the core objective and strategy to generate the maximum return on investment. This
means that as a whole, this will generate dividends to shareholders and more salary or
bonuses for employees.” (Mr. Three)
4) Mr. Four’s Suggestions and Model Lean Manufacturing
Implementation
Mr. Four is a manufacturing manager and a lean manufacturing consultant
in the position of a continuous improvement manager in the Southeast Asian region.
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He has worked in an Indonesian-owned company with a production base in Thailand
and with an integrated management style of Europe and Asia. In addition, he has
experience in lean manufacturing in a leading national automotive firm, as well as
experience in operation excellence in a global leading American firm. His suggestions
are as follows.
“The first important thing is commitment from the top management
or the management in charge. Implementation of leaning is not a 3 or 6 month, or
even a year-long project. It’s a long journey with much to do on the way. We develop
slowly from there, if the management does not commit, still views it as another 3-, 6-,
12-month project then it’s going to be a few steps, stops, and that’s it. So,
commitment is very important. Every manager has to know they are on the same boat.
The first steps will be hard, to educate people, implement things, assess where we’re
at, they all take time. But if commitment from the management is clear, working
people will go all the way. It’s the important key in Thai society. The head moves,
the tail follows. A long-term investment partly helps too. We have had talks but the
investment is not done wholeheartedly. The investment I’m talking about is
education, to educate the staff, the heads or the specialists. I found those problems
when working on early leanings. I knew the tools, educated people, I thought I was
really ready. But when I was in the leaning master circle, I found many better, smarter
people, I felt the need to keep improving. When I worked in a shoe factory, I knew the
tools were of course a bit different from car making or medical tool making. You need
experience and to find the best solution for the business. Personnel development
needs investment. We might be content with being ASEAN games or SEA games
champion but we have the Olympics to go to.” (Mr. Four, Page 18)
Furthermore, Mr. Four referred to the model of Shinko, who is among the
first few people to implement the lean manufacturing system. The model is known as
the Toyota Production System (TPS). It is the origin of lean manufacturing that we
see today. The 3 Ps consist of: propose, process, and people. Mr. Four explained the
relationships between the aforementioned three elements as follows “If you want to
do Kaizen, you have to propose what you’d do it for so the employee becomes aware,
or you want to promote a culture of suggestion, or improve safety or costs. The
proposal has to be crystal clear because in the same job there can be different
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proposals. After the proposal that we aligned with the management like, for example,
I want to do Kaizen for safety with the goal of doing 10 Kaizens per year to decrease
the high list. The process would lead to tool choosing. In Lean Six Sigma Tool there
are many tools to choose from. We can see who would be the core team that would
drive with us.” (Mr. Four)
5) Mr. Five’s Suggestions and Model Lean Manufacturing
Implementation
Mr. Five is a manufacturing manager with experience in consulting and
implementing lead manufacturing. He has successfully adopted the lean
manufacturing practice in a Japanese firm, Thai-American firm, and European firm.
He made the following suggestions.
“In my opinion and from my past experience, the manager must create
a vision, develop a mission, and set a clear goal. Every employee in the
organization must understand the mission and the direction that the organization is
heading, in order to ensure that all employees are moving in the same direction and to
eliminate confusion at work. For instance, “The Company is going to be the leader of
lean manufacturing in the industry”. Once there is a vision, the next step is to create
a mission, followed by goals. Goals are selected and determined by the company,
which illustrate what the company wants to become. It can be done by using the MBO
technique. However, before adopting the MBO, the company must first conduct the
SWOT analysis in order to identify its strengths and weaknesses. Otherwise, it would
be difficult to continue from there.
The objectives of the organization should be “strategic goals”. Ideas
should be put into action. In addition, recruitment should be in accordance with the
strategy, if the organization wants to adopt the lean approach, it should recruit people
with knowledge of lean manufacturing. The objectives must be smart, otherwise it
will be difficult.
The next step is to find a leader. This person must have influence on
members of the organization to some extent. The person does not have to be in the
highest position but has to be someone who has a clear objective and is favored by
others. The leader has to be someone who loves changes, something like this. Another
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thing, I think having a CI manager who acts as the right-hand person is also a good
idea.
Once we have all of the required personnel, we have to train them, for
instance, VSM, VSD, Kaizen, Pull, and 7 Wastes. Training will both provide the
knowledge and create a corporate culture. There should be a clear budget for training.
Cutting budget on training to reduce costs should not be the case.
After that, it is the problem-solving step. The leader will play a major
role in this step because the lean manufacturing system will require a lot of changes;
and people do not like changes. Therefore, it is necessary to be prepared to solve the
upcoming problems. There should be a clear plan and method.
Once everything is in place, the lean manufacturing system should be
implemented with thorough understanding and without looking back. Some people
say that, “lean is a journey that never returns”. Personally, I like the concept of Toyota
where they emphasize waste management, VSM, and workflow; and they try to
improve these aspects on a daily basis.”
And for Lean activities, according to Mr. Five’s opinion, there should be
a sequence of steps. “We start from the SWOT analysis using a lean tool. After that,
we conduct the VSM and identify the lean objectives, or basically conduct the VSD
simultaneously.
After that, we focus on each part. As you may have already known, once
we have conducted the VSM, we will see various problems in each part. So, we can
solve the problems one by one, and of course, with a clear objective, solution, and
follow-up process. Thais generally lack the PDCA or Plan-Do-Check-Act. Thai
people will merely plan and take no actions.” Mr. Five explained.
“Finally, we have to create a lean culture. We have to motivate people
to think, or as we call it, “a learning organization” which are ideas, determination, and
action.” Mr. Five suggested that the researcher should study in a learning
organization.
Finally Mr. Five said “The leader must understand and be able to create
strategies. But there needs to be a good assistant who understands the strategy as well.
It’s like Liu Bei, who has Zhuge Liang as the thinker and Guan Yu as the warrior.
Everyone has their own objectives and agenda. If we are able to understand them and
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able to pull out their potential, the goals can be easily achieved. However, if they
don’t follow the strategy or policy, the leader will have to be firm and decisive” Mr.
Five emphasized the leader role again.
CHAPTER 5
CONCLUSION, DISCUSSION AND RECOMMENDATIONS
This chapter discusses the findings of the study with reflection of the related
literature and explores the implications of the major findings and makes
recommendations for future practice. It is organized in the following order,
conclusion of this study, discussion in response to the research questions, and
implementation of lean manufacturing in Thailand, recommendations for further
practices, suggestions for future study, and the conclusion.
Hence, this chapter is presented in the following sequence:
1. Conclusion
2. Discussion of the Major Findings of the Research
3. Recommendations for Application and Implementation
4. Recommendations for Further Study
5.1 Conclusion
The purpose of this study was to explore the integration of the concept of
lean manufacturing in Thailand regarding Western and Asian organizational practices
following six research questions that were addressed to fulfill the research purpose.
1) What is the lean manufacturing practices in the view of a Western
organization?
2) What is the lean manufacturing practices in the view of an Eastern
organization?
3) What are the differences in the approaches between the West and the
East?
4) What is the selected approach to be used for Thailand?
5) Why are those approaches selected?
6) How are the approaches adapted?
This study employed a qualitative research method to complete the research
process. The research used an in-depth interview method to discover the interviewee’s
mind, opinion and ideas related to Lean Manufacturing implementation in Thailand.
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Meanwhile, for identifying recent studies and gaining a deeper understanding of
information from five Lean Manufacturing experts, the researcher also used the
document review method, including field books, dissertations and journals.
The researcher used purposive sampling to select five key informants who are
management and experts on Lean Manufacturing implementation.
The five informants were asked to respond to the interview questions
regarding their experience, tasks, situation, results and obstacles faced, key success,
knowledge and attitudes toward Lean Manufacturing . Manual Coding was used to
code the data gathered from the interviewees’ responses. Upon completion of these
steps, the researcher classified the data into categories by focus coding. The focus
coding helped to further narrow the coding. Then the results of the interviews were
determined and classified into thirteen categories as mentioned in Chapter 4.
The following are the main findings based on the six research questions.
these findings are comparable to the theories and findings of the other studies, as
presented in Chapter 2 and some additional literature which is related to this study.
The data derived from the interviewing and reading were summarized and
analyzed to investigate the extent to which the findings and answers to the six
research questions. The following section concludes the results for the major research
questions. This section presents significant details and meaningful insights supporting
the main conclusions that the researcher has drawn from the analysis and findings in
Chapter 4.
5.2 Discussion of the Major Findings of the Research
The discussion involves reporting of the findings, providing explanations as
to why the results come out that way with a reference.
5.2.1 Research Question 1
What is the lean manufacturing practices in the view of a Western
organization?
1) Focus on the Results
It is the facts that we have to accept. According to the literature review
and interviews with the aforementioned five individuals, it was clearly evident that
the American or European styles of management put an emphasis on measurable
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results. Likewise, it was apparent that Americans accentuated the results in the
financial aspect. Some companies are highly competent in converting various goals
into numbers, which are further used to set annual targets. Regardless of the use of the
suggestion system adopted by Japanese companies to develop ideas and creativity of
employees, Western companies are able to generate values or KPI.
2) Characteristics of Western-style Organizations
In the aspect of human resource management and relations in western-
style organizations, employees must perform according to the specified target without
emphasis on developing personal relationships. Particularly, American people are
relatively much more independent than European people and certainly than people in
Asian countries.
And the perspectives of career growth and competition in western
organizations. Seniority has no major role in the western management style. Rather,
it focuses on the individual’s performance; a high-performance individual will earn
more income with a higher position and more responsibility.
3) Organizational Structure of Western Companies
The management of western companies encompasses multiple styles.
Some companies have a clear organizational structure with roles and responsibilities
regarding the lean manufacturing explicitly assigned to employees. Some companies
manage the organization according to the situation and these companies have varying
beliefs .In addition, in a western style of management, high technology is sometimes
required to reduce costs, which significantly affects the employees
Nonetheless, modern western companies have become more attentive to
employees and their concerns. Yet, the measurement of performance still retains clear
goals.
4) Provisions of Feedback in Western Organizations
In western organizations, it is every common to provide direct feedback.
Indeed, negative opinions are not considered as a wrongdoing or unaccepted behavior.
It is very common in western companies and that everything ends in the meeting in
which everyone respects one another .Hence, it can be inferred that western
companies are more open and transparent than eastern companies.
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5) Strengths of Western Management Style
The major strength of western style of management is that they
implement lean manufacturing practices to produce results. They fully utilize lean
manufacturing to obtain optimal results. The clarity of goals is the ultimate strength of
western management style.
The emphasis is on results for western management style, which is a wise
practice that can be used to develop an organization. It is one of the examples that
illustrates the clarity of western organizations. Another asset of western organizations
is a flat structure, as Mr. V stated that a flat organizational structure speeds up the
working processes and improves flexibility.
6) Weaknesses of Western Management Style
Although the management style of western organizations emphasizes
results, which are probably what every organization desires, there are still many
weaknesses in the perspectives of lean manufacturing specialists. If we were to
implement a western management style for development or to adopt lean
manufacturing practices in Thailand. Accordingly, it is considerably challenging to
apply lean manufacturing practices in Thailand in a sustainable manner if we solely
focus on the results like western organizations.
Western organizations that accentuate merely on short-term results may
lead to problems in the aspect of development. If an organization focuses too much on
the results, it may create problems. The focusing on the results alone may lead to
negligence in developing the process. Once the executives or employees have
achieved the expected results, the process development will therefore not resolutely
be executed. Thus, concentrating only short-term results may impede development.
5.2.2 Research Question 2
What is the lean manufacturing practices in the view of an Eastern
organization?
1) Implementation of Lean Manufacturing According to the Eastern
Style
The implementation of lean manufacturing practices according to the
eastern style encompasses the opinions of those who have worked in eastern
organizations. In the perspectives of eastern organizations, human development is
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a significant element and is considered as one of the top priorities. Both rewards and
motivation factors in the aspect of career advancement certainly contribute to the
development of lean manufacturing.
2) Perspectives on Results
Eastern Organizations Emphasize More on Process Development and
Training than Money .In the modern world, everyone or every organization is
concerned about the results. However, the results desired by each organization are
different, which range from the aspects of finance, survival, expertise in various
aspects, and all the way to corporate culture.
Eastern organizations do not merely emphasize money. The process
development of eastern companies is achieved through human development. Indeed,
employee training is highly common amongst eastern firms and is used to provide
knowledge and enhance coordination rather than focusing on the results.
Eastern organizations do not accentuate much on monetary targets.
Rather, they significantly focus on creating corporate culture. Finance is merely a by-
product in the short run. In the perspectives of eastern companies, sustainability and
long-term success are much more important than monetary results.
3) Characteristics of Eastern Organizations
People in eastern organizations emphasize relationships or participation in
any activity. If a good and solid relationship has been established, in which both the
supervisors and employees have complied with the standards, the attained results will
always be positive. Furthermore, the working environment in eastern companies
seems to be friendlier than in western companies
Sometimes, challenging problems can be solved with a much easier
method than what we had thought if we understood such problems correctly and
straight to the point. Otherwise, the problem will be solved in a more complicated
way than it should have been. Furthermore, eastern companies also emphasize on
building and strengthening connections between individuals.
In addition, eastern people will take the aspects of seniority and gender
into consideration .The fact that seniority is very common and significant in eastern
organizations, particularly in Japanese firms. Sometimes, excessive concerns about
seniority may lead to problems at work
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4) Perspectives on Leadership
In eastern organizations, leaders play a role in almost every aspect from
the starting point of implementing lean manufacturing practices in the company.
Moreover, leaders or senior executives play a major role in executing policies or
principles, as well as in adopting lean manufacturing practices .If the leaders are
serious and determined, the implementation of lean manufacturing practices will be
successful and sustainable.
5) Perspectives on Communication, Relationships, and Work
To work at eastern companies, it is necessary to be cautious of
communication because if the senior-level employees or supervisors are humiliated,
such work will not be successful or will be difficult to succeed. Thus, it can be
inferred that the act of humiliating other people should be strictly avoided in eastern
organizations.
6) Strengths of Eastern Working Style
Japanese firms also have strengths in the aspects of recording history or
solutions to the problems. Japanese firms emphasize maintaining the standards and
developing the process on a step-by-step basis. Eastern organizations perceive that
a good process will lead to a good result. Hence, the development of process in
Japanese companies is planned and systematically executed. Moreover, there is
minimal fluctuation in the aspects of quality, products, and services. Lean
manufacturing practices in Japanese companies are so common that it seems like the
DNA of Japanese people.
7) Weaknesses of Eastern Working Style
The excessive concern of seniority in eastern organizations may
potentially demotivate employees so that the organization cannot retain really good
employees. Also, if we don’t reach target and goals it will make people in
organization confused and unable to make the company’s Strategies as needed.
5.2.3 Research Question 3
What are the differences in the approaches between the West and the
East?
Based on the interviews with five experienced individuals in lean
manufacturing, it can be concluded that western and eastern styles of management
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have similarities and differences. Employees in Japanese companies will adapt their
identity to the corporate culture.
The most significant of the differences between Western and Eastern is that
the West focuses on the results.
Western organizations tend to maintain a “flat culture” promoting open door
policies to build relationships and camaraderie “No Silo Policy.” While effective on
other fronts, this typically makes it more difficult to implement change due to the
informal working environment. It is easier to follow the benevolent dictator through
difficult times versus the friendly manager whom everyone gets along with.
Western culture promotes “Individualists” who are highly task oriented and
focused on getting things done. While this ensures meeting objectives, it does not help
in cultivating a culture of employee ownership which is the driving force behind any
continuous improvement initiative.
Eastern organizations, especially Japanese, focus on developing long term
partnerships and sustained respect for people. Japanese culture reflects this
philosophy both in their personal and professional relationships.
Management styles have a significant impact on how an organization
assesses and acts on opportunities to self-improve. Asian companies are significantly
hierarchical in their organizational structure. This influences employees to revere and
even have inhibitions in approaching their superiors and managers. Senior leadership
measures employees on their willingness and ability to embrace change. In such
complex and competitive environments, discipline enables Eastern companies to more
easily implement change initiatives.
5.2.4 Research Question 4
What is the selected approach to be used for Thailand?
1) Balance is the Key
In order to select the most appropriate approach for Thailand, we must
first understand that Thailand is an eastern country with concepts, beliefs, and
practices inclined towards the eastern style more than the western style. However, the
western concepts or principles have become popular and have been adopted by many
organizations in the modern world. But, it is important to maintain a balance in
implementing an appropriate approach in Thailand, which is also supported by other
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specialists in the field. They also explained the importance of ensuring efficacy and
efficiency in an operation or practice. The perspectives are somewhat similar to
others, yet there are some differences in the details.
Nonetheless, everyone stressed that balance is the key .A balanced and
perfect combination should be implemented in Thailand. The origin of lean
manufacturing system has its foundation from eastern organizations. Hence, it is not
surprising that the implementation of lean manufacturing system in Thailand should
be more inclined towards the eastern style.
Organizations should focus on the visions and long-term objectives.
Many organizations that focus on short-term results, specifically profits, are
unsuccessful in implementing the lean manufacturing system, considering the fact that
a sustainable adoption of lean manufacturing practices requires time.
The encouragement of employees’ participation contributes to the efficiency of
creating motivation.
Balance is the key in implementing lean manufacturing practices in an
organization. Although the result-oriented approach is clear and transparent, it is not
sustainable. Meanwhile, the process-oriented approach alone cannot lead an
organization to achieve its objectives. Accordingly, balance should be emphasized
and adopted. In addition, a clear objective with an appropriate performance indicator
will facilitate the follow-up process and development, as well as enhance the
efficiency. The development of process or the process-oriented approach enables a
sustainable development. The establishment of standards to support such development
is therefore a key element.
2) Leadership Roles
Leadership should encompass the element of clarity, from the aspects of
definition and all the way to the mission. The acknowledgement and understanding of
the mission is an important factor of implementing lean manufacturing practices in an
organization. Indeed, both western and eastern styles have different methods and
practices. Concerning a different situation where we lead an organization that has
already adopted the lean manufacturing system. The role of a leader that should be
initially addressed is to solve the problem at hand. The first and foremost role of
a leader is to manage factors that are difficult to control and that may disrupt the
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work. After that, methods will be systematically put into place .The first thing that we
have to do is “hemostatic”. Solving major problems at hand or “hemostatic” is
necessary for an organization. Otherwise, it may be difficult for the organization to
succeed.
A good leader will facilitate the work process and ensure that it is
appropriate to the specified target. There are different levels of leaders, each with
varying roles and responsibilities. Policy development represents the clarity of the
executive team. A policy will clearly inform everyone in the organization of the
company’s objectives as well as what the employees will receive, which is undeniably
true in the real world.
Respecting elders is also regarded as an important element. Meanwhile,
providing direct and constructive feedback also enhances the work efficiency.
Additionally, teamwork should be taken into consideration. A good team will bring
good things to the organization. In fact, having a skillful and competent individual in
a team might not be as important as having an individual who understands the system.
Furthermore, training is also a significant factor. It is necessary to conduct training in
accordance with the vision, mission, and operational plan. Similarly, instilling an
appropriate mindset amongst the employees should also be executed to ensure that
human development is compatible with the organization.
5.2.5 Research Question 5
Why are those approaches selected?
Many organizations began by trial and error, and sending employees to learn
and gain direct experience from a particular place as deemed appropriate by the
manager. The early implementation of lean manufacturing system in Thailand
recognized that balance is the key because Thai society is an eastern nationality.
A process-oriented approach is necessary for the sustainability of an organization.
The development of a system from a low level will strengthen and stabilize the
organization’s foundation.
However, the result-oriented approach with clear performance indicators
will contribute to the clarity of the objectives at work, which will consequently enable
the organization to develop incessantly and sustainably.
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Additionally, teamwork is regarded as one of the factors that will lead an
organization to success. The eastern-style establishment of connections and the
western-style provision of constructive feedback will enhance the efficiency and
success of problem solving. Accordingly, a leader is an important person in team
management.
However, the result-oriented approach with clear performance indicators
will contribute to the clarity of the objectives at work, which will consequently enable
the organization to develop incessantly and sustainably.
As for Thailand, government support will enable the lean manufacturing
system to be developed in a continual and sustainable manner. The lean approach is
one way of reducing the use of natural resources, which should be supported by the
government. The support sometimes referred to as the pressure from government
agencies will enable the development of a lean manufacturing system to attain
efficiency and sustainability.
Problems and Obstacles of the Implementation of Lean Manufacturing
The problems and obstacles in adopting a lean manufacturing system range
from the aspects of practice, continuity of practice, and all the way to human
resources. Another issue that results in a discontinuity of the development of lean
manufacturing system is when lean manufacturing leaders were acquired by other
organizations due to the fact that they are in high demand and the fact that every
organization would like to reduce their costs.
5.2.6 Research Question 6
How are the approaches adapted?
1) Understand the Nature of the Organization
Firstly, it is necessary to understand the nature of the organization. If the
organization is new and requires management, it is significant to initially create
a blueprint and establish standards. However, prior to the establishment of standards,
the organization must first solve the problems that it encounters at that particular time.
Otherwise, it would be difficult to solve the problems. A vision should be correctly
planned, since the presence of an operational plan will provide an appropriate work
prioritization. Change management must also be implemented suitably and in steps.
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It is necessary for an organization to encourage everyone to participate in
the development, concerning the fact that effective teamwork will help the objectives
to be achieved more easily. Nevertheless, it is essential to inform employees of their
rewards or what they will receive, instead of explaining to them what the organization
will achieve. Once the employees know their rewards, they will put their best effort to
ensure work efficacy and effectiveness.
Accordingly, it is significant to communicate the organization’s vision to
the employees and ensure that they understand the message clearly. In addition,
an integration of admitting mistakes into the corporate culture will further convey the
sincerity of supervisors to the employees. Training should be conducted at all levels;
whereby it shall not be restricted to classroom learning. Rather, a variety of learning
should be incorporated, such as learning by doing.
2) Leaders Roles
Leaders play a major role in the work success. A leader is similar to
a person on an island who can instill the belief in other people that such island has
advantages and can convince them to come to the island. In other words, a good
leader must be able to create confidence amongst members of the organization.
A good leader must be able to understand and acknowledge the scope, opportunities,
and limitations of the lean manufacturing system that will be implemented.
The persuasion of people to come to the island and develop the island in
conjunction, the leader must acknowledge the size of the island and the existing
resources available. A leader is the principal mechanism that will lead an organization
to success. A leader does not need to know everything but must be able to lead the
team to success, or at least make the organization survive sustainably in the direction
that it wants to be.
It is also necessary and appropriate to have one additional position for
coordinating, implementing, and examining the results of lean manufacturing
practices. This position may be a CI Manager or Operation Excellence Manager.
Middle-level managers and low-level managers must follow the senior-level
managers by nature. However, a mechanism that will drive the implementation of the
lean manufacturing system to be effective and efficient is a position that is specific to
lean manufacturing.
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3) Human Resource Management for Implementation
The implementation of lean manufacturing practices requires the
assessment of people and the organization to facilitate the process and ensure
efficiency. In addition, it is important to understand the motivation factors of
employees to increase their level of performance. Some might be motivated by career
advancement, while some might prefer monetary compensations, self-esteem,
reputation, or job security. Thus, it is necessary to understand and fulfill the needs of
employees in order to increase the probability of success of implementing lean
manufacturing practices.
The execution of a lean manufacturing system through the development
of process with thorough understanding. Such in-depth understanding will enable the
organization to implement the lean approach in a sustainable way, which will develop
the organization while minimizing risks.
Hence, human development is a crucial factor, which may begin from
recruitment and all the way to systematic development. A sustainable development
does not occur from the orders given by supervisors. Although such circumstance
may be necessary in the beginning, it is undoubtedly more reasonable to enable those
with direct responsibilities in lean manufacturing to suggest ideas and develop their
own work, which will be more sustainable. Everyone in the organization should
participate in adopting lean manufacturing practices with efficiency and effectiveness.
4) Inspecting and Solving Mistakes from Lean Practices According to
the Vision
Regarding the aspect of creating sustainability in organizations that have
adopted the lean approach, many companies use competition or comparison between
factories to instill enthusiasm at work and for developmental purposes.
Lean tools, in this case, refer to any tool that is used to administer or
manage lean manufacturing practices, such as Pull System, Kanban, Visual control,
SMED, VSM, and VSD.
Upon the implementation of lean manufacturing practices, it is common
to see that the results are different from what we was expected. Thus, it is important to
inspect and monitor the process, whether it is in line with the organization’s direction
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or not. In that respect, leaders must consistently monitor the process and examine the
attained results to ensure that they are in accordance with the predetermined direction.
The implementation of lean manufacturing practices does not mean that
there will be no mistakes or that everything will be perfect. Rather, the majority of
organizations emphasize the methods to maintain the momentum of development.
As we penetrate into the level of practicing the lean manufacturing approach,
leadership techniques are applied to maintain the standards and to develop
sustainably.
5) Implementation Steps of Lean Manufacturing in Thailand
After having interviewed five specialists with knowledge and experience
in lean manufacturing, the researcher would like to propose the following schemes to
implement lean manufacturing practices in Thai organizations.
5.1) Create Vision, Develop Mission, and Set Goals
Vision, mission, and objectives are the three elements that must be
determined in order to support strategic planning.
Vision is basically a goal or determination that the organization wants
to accomplish within a specified period of time, such as two, three, or five years.
Vision has to be instilled among the members of the organization to realize and
understand the aspirational description. Vision is a blueprint that will drive lean
manufacturing and the organization. In order to achieve the specified vision,
something has to be thought about and implemented thereafter. Vision does not
necessarily have to be in a written form or have a timeframe. The most important
thing is that all employees must understand the vision or the direction that the
company is going, in order to ensure that all employees are moving towards the same
objective and to reduce confusion at work. For instance,
“The company will become the leader in lean manufacturing in Asia”.
Once we have a vision, the next step is to create a mission, which
refers to the objective or the reason that influences the organization to implement lean
manufacturing. Mission is a statement that describes the business of an organization,
and typically, how the organization will respond to the needs of customers and how
the organization will distribute its products or services. A mission statement can be
either long or short, it does not matter. Generally, a mission is a statement that will
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pressure the organization to do whatever it takes to achieve the specified objectives.
For instance, the company must excel in operation and must be a learning
organization.
The next step is to stipulate the organization goals, which are
determined by the executives or related personnel. In general, goals are anything that
the organization wants to achieve. The organization must specify how it is going to
achieve such goals, after taking into consideration the current limitations.
The leader must clearly understand the objectives and the direction that
the organization is moving towards, by referring to the vision and mission.
The process should initially begin with analyzing the environment of the organization,
i.e., SWOT analysis. The step involves assessing the organization’s current position
or “where we are now”, identifying the “opportunities that will be beneficial to the
growth or survival of the organization”, determining the “existing problems and
threats”, identifying the “strengths to create a competitive advantage or to sustain the
organization” and the “weaknesses that should be eliminated or reduced”.
The analysis and assessment of the situation should be thoroughly and
circumspectly conducted to obtain clear and in-depth results. The analysis should be
qualitative rather than quantitative. The process of analysis or assessment is similar to
“buttoning the first button of your shirt”. If the first button is put in the wrong hole,
the remaining buttons will be wrong. After that, we have to identify the goals of
where we want to go, which is the process of determining the objectives of the
organization.
The organization’s objectives should be specified as a “strategic goal”
that serves as the primary goals, which will be communicated throughout the
organization. Based on the stipulated strategic goals, each department must specify
their own goals to be in accordance and in support of such strategic goals.
For instance, in order to achieve the objectives, the actions that the production
department and the marketing department must take should be determined. How
should the human resource department prepare itself to recruit, select, or develop
employees, and when? What should be the sales target, lead time, and profit from
sales stipulated by the sales department? And how should the finance department
provide sufficient working capital for business activities?
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Once we have clear objectives according to the western management
style, we should apply the eastern principles to create a balance at work, since
“balance is the key” according to many specialists that the researcher has interviewed.
Understanding the needs of employees will enable each policy to be
implemented easily, rapidly, and effectively, according to the motivation theory,
namely Herzberg’s Two-Factor theory.
Herzberg’s Two-Factor Theory explains that the primary motivation is
the satisfaction of employees. If employees are satisfied, they will be willing to put
their best effort into work, resulting in high productivity. Herzberg categorized
satisfaction into two factors: job dissatisfaction and satisfaction. Dissatisfaction is
related to a “job context”, such as the work environment, relationships between
employees, appropriateness of the organization’s policies, fairness of the supervision,
and the adequacy of base salary. A poor job context will lead to job dissatisfaction,
which consequently demotivates employees and results in unproductivity.
These factors are similar to the nutrients required by our body. If our body does not
receive enough nutrients, various health issues will occur. Hence, Herzberg referred to
these factors as “hygiene factors” (Herzberg, 2008).
Nevertheless, a good job context merely prevents “job dissatisfaction”
and does not guarantee “job satisfaction”. Factors that will make employees satisfied
with their jobs are related to the “job content”, such as success, honor, career
advancement, and whether the job corresponds to the competency and preference of
the employee. A job content that provides the opportunity for success, development,
honor, and career advancement as the return will instill satisfaction amongst the
employees. Once the employees are satisfied, they will unquestionably be committed
to the work. In that respect, if our organization is full of employees who are
dissatisfied with their job, we have to impede “job dissatisfaction” by creating
a favorable job context. In addition, we have to create “job satisfaction” by designing
work that is appropriate for each employee or assigning employees to the appropriate
job content. In this case, a good leader must be able to understand and analyze the
appropriate approach to achieve such factors.
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5.2) Find the “Right” Leader
Leadership in this case refers to finding a person who has an influence
on other people (followers) that enables the followers to achieve their goals
successfully. It is indeed difficult to find a leader for successful implementation of
lean manufacturing. A leader does not have to know everything. However, a leader
has to understand the situation. A good leader for implementing a lean manufacturing
system should possess “five main qualities of a good leader”, comprised of:
5.2.1) The ability to influence other people or “convince other
people to come to the island”;
5.2.2) Must know and understand the objectives or direction of the
organization;
5.2.3) Must be favoured or loved by the followers, or at least must
be someone who is accepted by the majority of people;
5.2.4) Must have an in-depth understanding about changes;
5.2.5) Must have the supporting hands or a right-hand man to
support various operations.
In conclusion, a good leader must have a farsighted and clear vision,
and must be able to communicate the vision to the followers. Moreover, a good leader
must be able to convince the followers to adopt the same vision in order to move
towards the same direction. This vision must also be consistent with the objectives of
the organization to ensure that the organization is heading in the correct direction.
A good leader must be accepted and favored by other people in order to convince
others to have the same vision and to be willing to listen and collaborate; this is
similar to convincing people to stay on an island and build the island together.
Additionally, a good leader must be able to understand that changes cannot
spontaneously or instantaneously occur. Rather, these changes require time and
appropriate strategies. Another important element is that the leader must have a right-
hand man who has the ability to transform the ideas of the leader into action.
5.3) Create and Develop Knowledge in Lean Manufacturing to
Members of the Organization
Training is an important factor that should begin from senior-level
management. The topics of training for an organization that intends to become a lean
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enterprise are comprised of: VSM and VSD, Pull System, Visual Control, Just-in-
Time Management, Cellular Manufacturing, Mistake-Proofing, and Kaizen.
5.4) Manage Changes
Strategies for managing changes should be those that enable the
organization to achieve its specified objectives. The success and efficiency of the
organization to manage changes rely on the co-understanding of changes, the ability
of the leader, and the collaboration from members of the organization. Concerning the
fact that changes are typically resisted by employees of the organization; the
executive – as the leader who manages changes within the organization – must rely on
skills and prudence in management. The executive must understand the nature and
process of changes, as well as the roles of managing such changes. Likewise, the
executive must be able to decide and select the appropriate method of implementing
changes in the organization. An effective management of changes should adhere to
the following core principles (Lorsuwannarat, 2003).
5.4.1) Planning and Preparation
Lorsuwannarat (2003) stated that it is necessary to specify an
appropriate period of time for the work process. If the work begins too soon, it may
lack planning and support. On the other hand, if the work begins too late, it may lose
some benefits or opportunities.
In order to obtain sufficient support, it is important to identify who
will be affected by the change and how those individuals will respond to the change.
The executive must be able to understand and determine which situation has the
potential to implement the change.
Regarding the preparation in the aspect of communication, the
executive must notify in advance the employees who will be affected by the change.
Such notification should encompass the reasons of the change and the effects arising
from the change. The important matter of communication is to pay attention to
employees who have the potential to be affected by the change, as well as those who
are inclined to change their attitude as the result of such change.
The encouragement of participation and collaboration from
individuals who will be impacted by the change can serve as a means of support in
implementing the change. Likewise, participation and collaboration enable the plan to
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be more widely accepted, while creating confidence and trust among the employees,
since they are involved in initiating the change.
5.4.2) Management of the Feeling of Unwillingness to Change
The risks resulting from changes are higher than the risks of
passivity. Changes cannot guarantee positive results. Employees acknowledge that the
management of changes is risky. As such, if the executive fails to provide employees
with the understanding and the reasons of the change, it will be difficult to change the
attitude of employees and to achieve the success of such change. Consequently, the
behaviors of employees will likely remain the same.
The same routine and repetitive behaviors cause employees to be
accustomed and adhered to their ordinary actions, which result in the unwillingness to
change. Since their past actions can predict the results better than new actions or
behaviors, the employees feel more content and secure with their customary
behaviors. They might question, “Since we have already done this in the past, why do
we have to change according to the organization’s intention?”
Employees acknowledge that the change will diminish their
authority and responsibilities. They will feel the loss of control in the external factors
or environment at work. They will also feel the necessity to adapt to the new system,
as well as a new team with supervisors, colleagues, and customers that they are not
acquainted with. Such unfamiliarity, along with the new responsibilities, are the
causes of the loss of their power or control in various factors.
The majority of employees disagree with the changes to the system
and personnel development, since they do not want to learn new things. They believe
that they already know those things and they might ask, “Why do we have to learn the
new system even though we already know it?” Accordingly, these causes the
employees to dissent from new approaches and perceive that such approaches cannot
truly provide benefits to the organization.
The selected change agent in the organization must serve as a good
example or model in implementing the tools of personnel development in the
organization. However, many organizations do not assign a specific person to be
responsible for the management of changes. As a result, employees lack confidence
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that the new system will actually be successful. Similarly, employees will have no
knowledge regarding the guidelines and methods of the new work process.
Employees are afraid that the changes will cause them to lose the
ability or competency to achieve the goals stipulated by the organization. Particularly,
during the process of changes, which is the period of transforming or adjusting the old
work process into a new process, in which employees will feel as if they lack the
abilities and skills to successfully perform that particular job. Employees will lack
confidence and trust in their own ability.
The belief that changes will not lead to positive results or
improvement is the belief that there is no reason to change since they can survive with
the old tools. Hence, employees lack confidence that the new tools can be effectively
implemented in personnel development. Most importantly, if the employees have seen
the example where a change had been implemented in the system of personnel
development but such implementation was not continuous, they will become even
more unconfident with the results of adopting a new system to enhance their
competency.
There are those who believe that changes result in a negative return
on investment. Sometimes, the implementation of new tools or systems in personnel
development requires external consultants to design a new system to be appropriate to
the corporate culture. Thus, employees have a negative perception towards the
changes because they believe that these changes require high investment in terms of
finance and time. Such negative perception towards the changes in the organization
causes the employees to disagree and not comply with the new system implemented.
Changes increase the burden of work. Employees perceive changes
as a game that is played by the organization. Employees regard changes as a new
game combined with the old game that they had already played, in which they have to
be responsible for the increase in workload and new obligations.
Employees have to adapt and change their perception towards the
work and processes, which differ from the past. Accordingly, they disagree with the
changes and they are not aware of the fact that these changes will improve their
quality of life at work. The resistance to change caused by employees within the
organization can be reduced.
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5.4.3) Selection of Methods to Reduce the Resistance to Change
Communication is the act of trying to understand all parties that will
be affected by the change in order to reduce the resistance. Effective communication
should explain the necessity for change, the negative effects to the organization in the
absence of changes, the necessity for a proactive management (through changes) to
obtain a competitive advantage, and the benefits to the organization as a result of
changes such as increased sales and customers. In addition, it is significant to explain
the benefits to the employees, such as better benefits or increased job security,
according to the concept, “What is in it for me?”
Encouragement of participation refers to the act of encouraging
employees within the organization to be involved in the change management from the
beginning, particularly those who are expected to be affected by the change.
Participation will lead to a joint decision in terms of implementing
changes and developing plans. Likewise, it will lead to a joint responsibility towards
the results of changes. Ultimately, these will provide moral support for employees and
enable them to accept changes. Participation is an effective method of reducing the
resistance. However, it is somewhat risky since the results cannot be anticipated.
It is important for the executive to facilitate and support the changes
to occur smoothly by supporting and facilitating those who will be affected by the
change. For instance, alleviating the feeling of employees regarding their fear of
change, creating confidence that the change will benefit the organization, and
providing training and time for adaptation. This approach will make the unwilling-to-
change individuals become supportive of the changes.
If the resistance to change arises from a lack of information,
a premature negotiation may intensify the resistance. Hence, the executive should
negotiate by comprising and settling with the employees regarding the change, which
may involve an exchange of something in order to eliminate the resistance.
Motivation may be used as a tool to acquire collaboration and
support regarding the implementation of changes. Informing employees of the
positive effects of such changes will enable more support to be obtained. Particularly,
motivating those who will be affected by the changes can help to reduce the issue of
the resistance to change.
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5.4.4) Implementation of Changes with Strategies
The executive may use authority according to the chain of command
in order to implement changes. This is a strategy that emphasizes motivation by
relying on the ability and the acceptance of the executive. The executive must accept
the change and influence other people to do the same. The leader or executive must
have a positive attitude towards the change.
The recruitment or acceptance of individuals to become members of
the organization must be conducted according to the organization’s strategies.
Strategic Human Resource Management (SHRM) therefore refers to the utilization of
human resources to achieve the objectives of the organization. The objectives of
human resource management are as follows:
(1) To recruit individuals with qualifications that are appropriate
to the job and strategies of the organization;
(2) To utilize human resources for optimal benefits, in order to
achieve the success of the strategies;
(3) To develop the skills and abilities of employees to obtain
optimum efficiency;
(4) To retain highly competent employees for as long as possible.
5.4.5) Evaluation of the Results of Changes
Collection of data can be performed using two methods, which are
collecting quantitative data and qualitative data that will benefit the executive to
implement the plan. The methods of data collection should be selected to be
appropriate to each circumstance. In addition, higher amounts of obtained data will
increase the accuracy of the analysis.
A comparison of the actual and expected results is also necessary to
evaluate whether the objectives have been achieved or not (compare the blue print
with the vision). Reviewing the obtained results is the means of evaluating the
outcome of changes and communicating such results to related individuals and those
who are affected by the changes. There are various methods of communication in
order to relay the message to supervisors or employees, such as through a written or
verbal report, group discussion, and communication board.
5.5) Implement Lean Manufacturing with In-depth Knowledge
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The evolution of a new paradigm began with Henry Ford, who initiated
the mass production of automobiles through the use of interchangeable parts. In 1926,
he published a book called Today and Tomorrow, which explains the advantages and
disadvantages of his manufacturing approach.
Later, Taiichi Ohno, a Japanese engineer of Toyota, further studied the
manufacturing approach and introduced the pull system. He studied the nature of a
supermarket that could not plan a definite number of items for sale due to the
differences of customers’ needs. Thus, a supermarket had to consistently check and
refill the stocks. Taiichi Ohno integrated the American concepts of increasing
production and quality with the just-in-time system.
After that, the Toyoda family implemented such system and called it
the “Toyota Production System”, which has been continually developed by
eliminating the seven wastes. Later, John Krafcik perceived that such an approach
would improve the efficiency of the production process, and therefore, published it as
a “lean” principle in the Sloan Management Review. Until 1990, James Womack
became interested in the aspects of purchase and waste management, in which he
perceived that waste management would add value to the products. Thus, he
published a book called Machine that Changed the World, which explains the lean
concept and the five elements of lean implementation that are comprised of: value,
value stream, flow, pull, and perfection.
The basic structure of lean manufacturing consists of four elements,
which requires continuous improvement according to the principles of rotation and
definition of the relationship between the principle and practice. These can be used to
explain the components by demonstrating the design, process, and management of
production that illustrate work efficiency. Liker and Hoseus (2008) also stated the
steps of implementing lean manufacturing as follows.
5.5.1) Create Value
Waste management requires a lot of time and effort. Hence, the
process of creating value is an important factor. Waste from the production process is
not demanded by customers. Companies that implement a lean manufacturing system
will determine the value of products and the ability of products in quoting prices for
customers. These companies will try to understand the needs of customers and
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improve the products and the management of the organization and employees to
achieve the goals of the production plan.
Accordingly, the organization should conduct value stream mapping
(VSM) in order to identify the current problems. Effective VSM can be performed by
adopting a gemba walk and coordinating with all members of the organization to
understand the process flow, information flow, and material flow. This approach will
enable each member to understand the procedures of the work process and the
methods of communication between each department, as well as the flow and
inventory of products. Basically, VSM enables the organization to identify the current
status.
The product value obtained from the benefits of the product divided
by the costs of the product will represent the quality of that particular product. In the
aspects of assessing and analyzing the results by using the technique of value
engineering, the executive should emphasize the objectives of the cost and
determination of the price of the product to be sold in the market. The executive
should take the products, profit, and return into consideration when proposing a
business plan. The requirements or strategies that will lead to the success, according
to the objectives of the cost, require the ability to adjust or modify the production and
purchasing processes whenever necessary.
Once all of the required data have been obtained, a value stream
design must be established in order to specify the direction of the organization.
For instance, how the process flow should be? How to reduce or improve the
processes to maximize efficiency? How to manage the material flow? How the
information flow can be developed? and how to increase the efficiency and efficacy
of communication?
5.5.2) Improve the Flow
An organization requires support, particularly in the aspect of a
rapid flow of products. The elimination of obstacles and the distance between related
departments will affect the work flowchart of employees, as well as the tools relating
to the production process.
The principles on the use of tools in the organizational structure and
the production process include:
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(1) Continuous flow; products should continuously pass through
a process of value addition, without a buffer period.
(2) The level of production; manufacture a variety of products
simultaneously according to the demanded quantity and in each period.
Continuous flow will reduce the time of production, which
consequently enables the make to order (MTO) production strategy to be
implemented in place of the make to stock (MTS) strategy. In addition, the production
and demand will be maintained at a similar level to prevent waste or loss in the
manufacturing process. Moreover, continuous flow will eliminate a buffer period and
inventory, which reduces waste that arises from stocking the inventory.
In lean manufacturing, a product or material inventory is regarded
as waste. Hence, any product that cannot be sold is considered as waste. It is
significant to acknowledge the real needs of customers and pull the products into the
system by adjusting the quantity to be sufficient to the demand. The objective of the
just-in-time system is to create a balance between the quantities of products and
demand in order to eliminate possible waste or loss.
5.5.3) Develop to Obtain Perfection
Success should come from work efficiency in the aspects of
reducing time, space, costs, and mistakes. Lean manufacturing emphasizes the design
and production processes that add value to customers, the continuous flow system,
the zero-inventory system, the just-in-time system, and zero-waste management.
It focuses on adding value as much as possible by continuously improving to obtain
perfection. Accordingly, the following steps should consider the aspects of continuous
improvement and assessment of productivity by benchmarking using a balanced
scorecard, in order to work effectively as a team and identify the needs that change
according to the environment.
5.6) Create a Corporate Culture to Clearly Understand and
Maintain Lean Manufacturing
In changing the management strategies of the organization to improve
the work process to correspond to the changing environment, the organization will
likely face the employees’ resistance to changes. Such issue arises from the lack of
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confidence and the fear of employees, who perceive that such changes will result in
complexity and difficulty.
Accordingly, the change of the organizational strategies to manage
changes should consider the aspects of collaboration and preparedness of the
employees in accepting such changes. In order to effectively manage changes, it is
recommended to start from the easiest tasks and gradually develop towards the most
difficult tasks. Factors that affect changes in the organization are comprised of two
main elements: external and internal factors.
The implementation of modern production and operations technology
will enhance the efficiency of the production process, increase the yield, facilitate the
employees, and speed up production, resulting in an increased productivity of
business operations.
Management technology is a modern technology that increases work
efficiency in terms of planning, operations, and control, for instance, enterprise
resource planning (ERP) and total quality management (TQM). Management
technology emphasizes the development of the organizational structure and work
processes to obtain competitive advantages.
Changing Corporate Culture
This refers to changing the work values. The primary work values
include collaboration and empowerment. The executive must engage with various
departments and employees to establish a strong relationship.
Collaboration and teamwork require the establishment of
relationships between various departments in the organization. Teamwork is
necessary to develop innovation and increase the variety of production systems.
Similarly, it is important to acquire employees with expertise in various fields, as well
as provide training and encourage employees to participate in the decision-making
process. An emphasis should be made on the collaboration and participation of all
levels of employees in the organization.
Moreover, it is also significant to create a family-like atmosphere by
instilling a sense of ownership and prioritizing employees similar to the eastern
principle.
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Lower management should change their roles from supervisors to
assistants. Middle-level management will play a less significant role and must learn
the work operations from employees with no direct supervisor by creating an efficient
work system. Meanwhile, senior-level management must change their roles,
responsibilities, and relationships with the employees.
The qualities of senior-level management should include skills in
operational and personnel management, analyzing potential problems and
opportunities, human relations and decision-making. In general, the primary roles of
senior-level managers in change management are as mentioned below.
Managers must understand the fact that changes arise from limitless
competition and technological advancement, since the world is in the era of
technology, information, and knowledge – all of which are important elements of
a competitive advantage. Accordingly, the speed of change is considerably fast,
product life cycles have become shorter, various technologies emerge faster, and new
technologies are replacing existing technologies, which make products become
outdated within a shorter period of time.
Managers should be the representative of change or change agents.
Leadership in the aspect of change encompasses the responsibility to manage the
process of change in the organization to develop and create opportunities to compete
with other competitors. The competitive advantage can be achieved by using the
resources efficiently to minimize costs while maximize productivity and responding
to the demands of customers that changes rapidly.
Managers should monitor the results by comparing them to the
objectives and plans, or the operational guidelines of the following months.
The organization can motivate employees by implementing a
management strategy that can fulfill the needs of employees and drive the employees
to work with determination and effort to overcome any obstacle.
The evaluation of performance should emphasize on the final results
in specifying the level of outcome, in order to ensure a good performance for the
organization. The evaluation of performance should be conducted at three levels,
comprising of: the organization, departments, and employees.
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Performance-related pay has an important guideline for determining
salary, which includes specifying the rules and regulations pertaining to the
management of the monthly salary, reviewing and assessing work performance, and
determining the salary of each employee, which varies according to the ability of each
individual –whether their performance is above or below the specified standard.
Employees in the organization should understand the overall
performance of the organization, in order to acknowledge the situation and various
crises that the organization is currently experiencing. For example, the profit,
strengths, weaknesses, competitive disadvantages, and the level of customer
satisfaction. Moreover, employees should be encouraged to interact with customers,
shareholders, and stakeholders.
Managers should stimulate employees to realize the opportunities
that they will receive as a result of changes, as well as the negative effects that will
occur if the organization is unable to change or adapt to support such opportunities.
5.7) Create a Learning Organization
The development of an organization to become a learning organization
is similar to the infinite development of the organization. We must be able to think
and adapt all the time in order to identify ways to survive or develop.
Senge (1990) asserted that a learning organization will learn faster than
its competitors in terms of changes and prior to being under the pressure to change.
Furthermore, a learning organization will try to coordinate the performance of an
individual with the financial performance. A learning organization will also develop
tools and methods to analyze its own system.
5.3 Recommendations for Application and Implementation
Upon the evaluation of results obtained from the research, the researcher
would like to propose a model that integrates the eastern and western principles, in
order to implement lean manufacturing in Thailand, as follows:
5.3.1 Top Management
According to the TQM model, it can be inferred that top management should
not be the sole decision maker or give orders to lower management. In other words,
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the organization should no longer adopt the top down management approach. Rather,
the top management or senior-level executives should act as supporters. Indeed, the
most important role of top management is to set a vision and determine the direction
of the organization. With such an approach, lower management will be able to work
with greater confidence and efficiency. Another role that should be subsequently
performed by top management is to emphasize on change management.
Undoubtedly, the majority of people do not want to change. However, it is
likely impossible to enhance performance or productivity without any changes.
Therefore, in the initial stage of change, top management should have high stability in
their own principles or vision, as well as provide the appropriate support that
corresponds to the rising change of the organization.
However, various missions that will lead the organization to success may
change according to the situation, due to the economic, social, and political changes,
as well as changes in consumer demand or budget. Accordingly, top management may
be required to adjust the predetermined strategy to be in accordance with the mission.
This step is referred to as the CIP system. For instance, if the trend of consumer
demand is inclined towards environmentally friendly products, the top management
might have to engage in additional environment-related activities by fully utilizing
lean manufacturing.
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CUSTOMER
MIDDLE
MANAGEMENT
TOP MANAGEMENT
Figure 5.1 Lean Manufacturing Implementation Model
SHOP FLOOR CIP
“ Live Standard”
Flow CIP, Pull CIP
“Create Standard”
“KAIZEN”
SYSTEM CIP
CHANGE
MANAGEMENT
“SET VISION”
Process
Confirmation
Manager
Process
Control
Shop Floor
Leader
LEARNING
ORGANIZATION SMART
Goal
LEAN KNOWLEDGE
HUMAN RESOURCE MANAGEMENT &
DEVELOPMENT
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5.3.2 Middle Management
Middle management refers to managers in a middle level, such as general
managers, department managers, or heads of various divisions. The important role of
middle management is to create a standard. In other words, if a particular activity is
found to provide benefits to the organization, such activity should have an established
standard in order to be adopted by employees. Regardless of the time, these standards
must be able to be implemented in the organization with efficiency and sustainability.
The establishment of standards may emerge from the tacit knowledge of
employees that are conveyed in the form of a report, work instruction, or manual.
It may also result from the experience of learning from mistakes, which is recorded in
a lesson learned report to prevent the recurrence of such mistakes.
Once the standard has been established, another important role of middle
management is to engage in continuous development (Kaizen). Middle management
must consistently examine whether the processes under their own responsibility are
smoothly operated or not. If there are any obstacles in the process, middle
management should correct and modify them to ensure that such process flows
smoothly. In addition, one of the most significant roles of middle management is to
consistently examine and observe whether the processes under their responsibility is
a pull or push system; whereby, they should try to adopt the pull system as much as
possible.
After various systems have been established and developed, middle
management must inspect and monitor the employees, whether they are in compliance
with the standard or not. Likewise, middle management must also monitor other
related units to ensure that they conform to the specified standards in order to
collaboratively develop the organization.
5.3.3 Shop Floor Management
Shop floor management includes employees all the way to supervisors,
foreman, and shift leaders, which must be in a number appropriate to the number of
subordinates to ensure thorough and efficient supervision. The leader should be
responsible for monitoring the process to be in accordance with the standard
stipulated by middle management. In other words, the leader must maintain the
standard and ensure that such standard is implemented. One of the important roles of
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a leader is to motivate or promote team members to continuously develop various
systems (shop floor CIP), with the means to correspond to consumer demand and
make customers satisfied with the products and services of the organization.
5.3.4 Supporting Factors for the Development of Lean Organization
Smart goal originates from the western principle, which is implemented in
an organization to ensure that employees or members of the organization have clear
goals. In addition, KPI is used to evaluate the performance, which enables employees
to acknowledge their own roles or responsibilities. Thus, the strengths or weaknesses
of a team can be easily evaluated.
Learning organization is an organization that creates a channel for the
transfer of knowledge between employees, as well as for receiving knowledge from
the outside. The primary objective is to facilitate the process of identifying the best
practice, leading to the development and establishment of core competence of the
organization. Such approach will enable the organization to adapt to the consistent
changes in the global society. In order to develop the organization into a learning
organization, the following principles should and must be incorporated:
Management should promote experimentation, examination, and
constructive feedback, as well as accept mistakes and identify solutions.
Employees should collect information and use such information to provide
constructive feedback.
Customers are part of the relationships in educating/learning through the use
of open and continuous conversations.
These changes will become part of the processes of examining, identifying
hypotheses, experimenting, and creating experiences for the organization. Once the
organization has identified its own problems or flaws in any aspect, it would want to
seek additional knowledge regarding such aspect and transfer the acquired knowledge
to all levels of personnel through training.
The five important characteristics of a learning organization are comprised
of:
1) Systematic problem solving by relying on scientific principles, such as
the incorporation of Demming’s cycle (PDCA: Plan, Do, Check, and Action).
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2) Constant experimentation on new things that are beneficial to the
organization, which may be a demonstration project or an ongoing program.
3) Learning from our own experiences by recording information as a case
study in order for other members of the organization to study about the success or
mistake of such experiences, which can later be applied in the future. The knowledge
and experiences are exchanged between members of the organization.
4) Learning from others through the use of interviews, observations, etc.
5) Transfer of knowledge through reports, demonstrations, training and
education, job rotation, etc.
5.3.5 Lean Knowledge
The lean management system refers to the addition of values for customers
while reducing waste. To put simply, the lean system means adding value for
customers with less resources. The ultimate goal of lean management is to provide
value for customers using a perfect method that eliminates waste throughout the value
chain, instead of doing it separately. Such approach requires less effort, labor, space,
capital, and time in manufacturing products and services, with lower costs and wastes
as compared to the traditional management system.
The lean management system enables the organization to respond to the
consistent changes of consumer demand, whether in terms of more variety, higher
quality, lower cost, and rapid response to consumer demand. Moreover, the
knowledge in lean culture further facilitates data management, making it become
easier and more accurate. Likewise, an in-depth and thorough knowledge of lean tools
contributes to the efficiency and efficacy of implementing the lean manufacturing in
the organization. Various elements pertaining to the aspect of lean should be
disseminated in the organization, which include ‘value stream mapping’ (VSM) to see
the overall picture of the organization, ‘waste’ to identify problems of the
organization, ‘flow’ to understand the continuity of the process, ‘pull’ to promote the
manufacturing of products in accordance with the real consumer demand, and other
elements that can facilitate members of the organization to implement the lean
manufacturing system with the optimal efficiency, through the acquisition of in-depth
knowledge and understanding.
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5.3.6 Human Resource Management & Human Resource Development
Knowledge regarding human resource management must be utilized
appropriately, from recruitment, development, retention, utilization, management,
and development. Indeed, human resource development will enable the organization
to develop and improve with stability and efficiency.
Human Resource Management – In order for the organization to efficiently
accomplish its goals, it is necessary to have quality personnel in the quantity
appropriate to each work. Accordingly, human resource management is regarded as
one of the important factors in terms of management, since employees are responsible
for finding and utilizing resources to manage other factors such as money and
equipment. If the organization begins with quality and competent personnel, they will
positively affect other factors. Hence, human resource management is significant to
the development of the organization. It is directly related to personnel and is
considered as the most valuable resource of the organization. Its roles are to enable
the organization to accomplish the specified goals, while maintaining and developing
human resource to have a high quality of life at work. In addition, its primary
responsibilities include human resource planning, work assignment or design,
analysis, recruitment, selection, performance evaluation, training and development,
remuneration, health and safety, and termination of employment. Therefore, all levels
of management must be responsible for human resource management.
Human Resource Development – this refers to utilizing each individual’s
competency to obtain the optimal benefit, promoting each individual to have
a positive attitude towards the organization, and all the way to creating self-awareness
on the values of oneself, colleagues, and organization. Upon consideration, everyone
has the competency to develop oneself in terms of knowledge, skills, and attitude –
that is, in the presence of adequate motivation. The development of human
competency should be a continuous process, from recruitment and selection that leads
to the development in the system of the organization. There are various methods of
human resource development, which must be selected to be appropriate to the type of
organization and its corresponding personnel. In addition, there should be
a systematic process for evaluating the development of employees’ competency on
a regular basis, in order to stimulate such competency development amongst certain
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groups of employees, while supporting highly competent individuals to attain higher
positions that require more advanced skills. A good organization must ensure that its
human resource system is up-to-date and has the ability to examine the advancement
of personnel at an individual level.
5.4 Recommendations for Further Study
This study on the identification of methods of integrating western and
eastern (specifically Japan) management yielded satisfactory and highly beneficial
results, which can be used as a guideline to develop, implement or improve the lean
manufacturing system, or as a practice guideline for the executives or management to
implement various modern practices as deemed appropriate to the organization.
The research findings were obtained from the interview, study, and collection of
actual data from specialists who were in a top management with experience in
implementing and managing a lean manufacturing system in organizations that had
already adopted the system. In addition, some of these specialists have experience in
implementing lean manufacturing in organizations that never adopted the system
before. All of the obtained data were systematically filtered and analyzed according to
the research methodology.
Although there are various strengths, there are also some weaknesses in the
study. Considering the fact that there were five interviewees, and as mentioned above,
these interviewees were from middle to top management, it is undoubted that their
perspectives were considerably broad and acute, with a somewhat systematic
reference to the theories. Indeed, broad perspectives from senior-level management
may result in a lack of in-depth information and suavity, as compared to perspectives
from blue-collar employees who actually executed the system. The research accepted
the fact that the findings may in fact lack that kind of information. Furthermore,
the study did not emphasize on the perspectives of the owner of the organization
regarding their intended direction for implementing the lean manufacturing system.
According to the perspectives and opinions of the researcher with respect to
the improvement on this research, the participants or interviewees may be extended to
owners, lower management, engineers, supervisors, and employees. Likewise, a study
on other aspects may be conducted to further perfect and refine this research.
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Regarding the research methodology, this research is qualitative research
that employed description and explanation as the primary method of study. Therefore,
the research findings were not validated or extended to obtain opinions in a wider
perspective. As such, the researcher believes that, if this research is extended to mixed
methods research with an incorporation of both qualitative and quantitative methods,
or even with the actual implementation to obtain empirical results, the research would
become more complete and comprehensive. Therefore, the researcher intended for
other interested individuals to extend this research with more comprehensiveness.
This research had the objective to identify the best method to implement
lean manufacturing in Thailand. From the research, it was evident that the innermost
thoughts and opinions of both western and eastern management, along with the
western and eastern principles of operating businesses, were acknowledged.
In addition, this research provided an understanding that everyone works primarily for
the success of oneself, and that the roles of management are to create motivation and
identify methods to influence employees to efficiently work for the organization.
Yet, such methods are different depending on each individual’s beliefs. According to
the results, human resource management and human resource development are
important factors that contribute to the success or failure of management or activities.
In terms of human resource management, successful managers must utilize and
combine knowledge from different fields, including modern theories on human
resource management, western and eastern concepts, and science from other fields.
Managers should have creativity in applying methods to correspond to different
situations. In other words, managers should apply both science and art into their
practice, considering the fact that Thai labor is more delicate than western or other
eastern nationalities.
The combination of specifying goals, determining clear methods similar to
the western style of management, supervising, training, developing corporate culture,
and creating a team like the eastern style of management, is one of the ways that will
provide balance to the management of the organization and consequently lead to
success.
The research findings can be used as a guideline for managing the
organization in the future, not solely limited to organizations that intend to implement
172
lean manufacturing. Rather, any other theories or beliefs can be applied into the
organization. Regardless of the changes or improvements in any work process,
the most important and difficult element is changing people.
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APPENDICES
APPENDIX A
DEFINITIONS
183
DEFINITIONS
Autonomation
Transferring human intelligence to automated machinery so machines are
able to detect the production of a single defective part and immediately stop
themselves while asking for help. This concept, also known as jidoka, was pioneered
by Sakichi Toyoda at the turn of the twentieth century when he invented the automatic
loom that stopped instantly when any threads broke. This permitted the operator to
oversee many machines with no risk of producing vast amounts of defective cloth
(Womack & Jones, 2003).
Continual Improvement Process (CIP)
A continual improvement process, also often called a continuous
improvement process (abbreviated as CIP or CI), is an ongoing effort to improve
products, services, or processes. These efforts can seek “incremental” improvement
over time or “breakthrough” improvement all at once. Delivery (customer valued)
processes are constantly evaluated and improved in the light of their efficiency,
effectiveness and flexibility.
Some see CIPs as a meta-process for most management systems (such as
business process management, quality management, project management, and
program management .W. Edwards Deming, a pioneer of the field, saw it as part of
the ‘system’ whereby feedback from the process and customer were evaluated against
organisational goals. The fact that it can be called a management process does not
mean that it needs to be executed by ‘management’; but rather merely that it makes
decisions about the implementation of the delivery process and the design of the
delivery process itself (American Society for Quality, 2015).
Deming Cycle
The concept of a continuously rotating wheel used by W. E. Deming to
emphasize the necessity of constant interaction among research, design, production,
and sales so as to arrive at an improved quality that satisfies customers (Imai, 1986).
184
Flow
The progressive achievement of tasks along the value stream so that a
product proceeds from design to launch, order to delivery, and raw materials into the
hands of the customer with no stoppages, scrap, or backflows (Womack & Jones,
2003).
Goals
Goal are usually quantitative figures established by top management, such as
sales, profit, and market share targets (Imai, 1986).
Just in time
A system for producing and delivering the right items at the right time in the
right amounts. Just-in-Time approaches just-on-time when upstream activities occur
minutes or seconds before downstream activities, so single-piece flow is possible.
The key elements of Just-in-Time are Flow, Pull, Standard work (with standard in-
process inventories) and Takt time (Womack & Jones, 2003).
Lead Time
The total time a customer must wait to receive a product after placing an
order. When a scheduling and Production system are running at or below capacity,
Lead Time and throughput time are the same .When demand exceeds the capacity of
a system there is additional waiting time before the start of scheduling and production,
and lead time exceeds throughput time (Womack & Jones, 2003).
Muda
Any activity that consumes resources but create no value (Womack & Jones,
2003). The seven wastes of Lean Manufacturing are what we are aiming to remove
from our processes by removing the causes of Mura as well as tackling Muda directly.
The Seven Wastes of Lean Manufacturing are: Transport, Inventory, Motion, Waiting,
Over-Processing, Overproduction, Defects.
185
Operation
An activity or activities performed on a product by a single machine.
Constrast with process (Womack & Jones, 2003).
Perfection
The complete elimination of muda so that all activities along a value stream
create value (Womack & Jones, 2003)
Process
A series of individual operations required to create a design, completed
order, or product (Womack & Jones, 2003).
Poka-yoke
A mistake-proofing device or procedure to prevent a defect during order-
taking of manufacture. An order-taking example is a screen for order input developed
from traditional ordering patterns that questions order falling outside the patterns.
The suspect orders are then examined, often leading to discovery of inputting errors or
buying based on misinformation. A manufacturing example is a set of photocells in
parts containers along an assembly line to prevent components from progressing to the
next stage with missing parts. The poka-yoke in this case is designed to stop the
movement of the component to the next station if the light beam has not been broken
by the operator’s hand in each bin containing a part for the product under assembly at
that moment. A poka-yoke is sometimes called a baba-yoke (Womack & Jones, 2003).
Pull
A system of cascading production and delivery instructions from
downstream to upstream activities in which nothing is produced by the upstream
supplier until the downstream customer signals a need. The opposite of push
(Womack & Jones, 2003).
186
SMART
SMART is a mnemonic acronym, giving criteria to guide in the setting of
objectives, for example in project management, employee-performance management
and personal development. The letters S and M usually mean specific and measurable.
Possibly the most common version has the remaining letters referring to achievable,
relevant and time-bound. However, the term’s inventor had a slightly different version
and the letters have meant different things to different authors, as described below.
Additional letters have been added by some authors.
The first-known use of the term occurred in the November 1981 issue of
Management Review by George T. Doran. The principal advantage of SMART
objectives is that they are easier to understand and to know when they have been
done. SMART criteria are commonly associated with Peter Drucker’s management by
objectives concept.
The acronym SMART has several slightly different variations, which can be
used to provide a more comprehensive definition of goal setting:
S - specific, significant, stretching
M - measurable, meaningful, motivational
A - agreed upon, attainable, achievable, acceptable, action-oriented
R - realistic, relevant, reasonable, rewarding, results-oriented
T - time-based, time-bound, timely, tangible, trackable
Standard Work
A precise description of each work activity specifying the cycle time, takt
time the work sequence of specific tasks, and the minimum inventory of parts on hand
needed to conduct the activity (Womack & Jones, 2003).
Suggestion System
In Japan the suggestion system is a highly integrated part of individual-
oriented KAIZEN. Its design is carefully plotted, implemented, and communicated as
a company’s strategic plan. Scrupulous attention is paid to top management
responsiveness, and developing a system of feedback and rewards. Japanese style
suggestion systems emphasize morale-boosting benefits and positive employee
187
participation over the economic and financial incentives that are stressed in the
American style systems (Imai, 1986).
Takt Time
This is the available production time divided by the rate of customer
demand. For example, if customers demand 240 widgets per day and the factory
operate 480 minutes per day, takt time is 2 minutes; if customers want two new
products designed per month, takt time is two weeks. Takt time sets the pace of
production to match the rate of customer demand and becomes the heartbeat of any
lean system (Womack & Jones, 2003).
Throughput Time
The time required for a product to proceed from concept to launch, order to
delivery, or raw materials into the hands of the customer. This includes both
processing and queue time, in contrast to processing time and lead time (Womack &
Jones, 2003).
Total Productive Maintenance (TPM)
A series of methods, originally pioneered by Nippondenso (a member of the
Toyota Group), to ensure that every machine in a production process is always able to
perform its required tasks so that production is never interrupted (Womack & Jones,
2003).
Value
A capability provided to customers at the right time and at the appropriate
price, as defined in each case by the customer (Womack & Jones, 2003).
Value Stream
The specific activities required to design, order, and provide a specific
product, from concept to launch, order to delivery, and raw materials into the hands of
the customer (Womack & Jones, 2003).
188
Value Stream Mapping
Identification of all the specific activities occurring along a value stream for
a product or product family (Womack & Jones, 2003).
Visual Control
The placement in plain view of all tools, parts, production activities, and
indicators of production system performance, so the status of the system can be
understood at a glance by everyone involved. Used synonymously with transparency
(Womack & Jones, 2003).
APPENDIX B
PROPOSAL EXAMINATION INFORMATION
190
191
192
193
APPENDIX C
ETHICAL REPORT FORM
195
196
197
198
199
200
201
202
203
204
APPENDIX D
COPY OF THE LETTER TO EXAMINE THE VALIDITY OF
THE RESEARCH INSTRUMENT
206
207
208
209
APPENDIX E
INTERVIEW GUIDE
211
APPENDIX F
LEAN IMPLEMENTATION MODEL PROPOSED BY
THE PARTICIPANTS
213
LEAN MANUFACTURING IMPLEMENTATION MODEL
FROM MR. TWO
APPENDIX G
SAMPLE OF CODING WORK
215
SAMPLE OF CODING WORK
A: Hello Mr.One. First of all, I would like to let you know that this interview will be
confidential, the name of the interviewee and the company’s name will not be
revealed. Please don’t worry because I only want to learn from your experience
for my own research.
B: Yes, sure.
A: Firstly, can you please share your professional background and your work
experience with Lean?
B: I think it would be better if I send you my resume or you can take it from
LinkedIn, which has all the information you need.
A: Ok, thank you. Let’s get started with the topic. What is your opinion on working
in Eastern style?
B: Um, actually I have never been working with any Eastern companies, except with
some Japanese. However, from my work experience with partnership or having
worked in Malaysia I think Eastern people tend to focus more on developing their
people and Process. Unlike USA or Europe, which focus more on results than
other aspects.
A: Can you please clarify ‘developing people’?
B: They primarily focus in training, a lot of training and create inspiration to improve
business. I’m thinking to myself why they need to train so much. Isn’t it better to
“train by doing”?
216
A: Ok, I understand. We will talk about that later in more depth. How about
developing Process? Can you please extend that in more details?
B: By theory, the structure has input and output Process. East Asia emphasizes on
tomorrow’s performance than today’s performance. They tend to overlook their
input, whether it is good enough or not, which could affect their output or result.
A: What is their working style like? Straight forward or hesitant?
B: I think in majority; they are more hesitant. Also, I feel that East Asians are more
aware of self-image and also others’. I’m not saying these are bad qualities
because in some organizations they work very well together. It makes me want to
be in that environment as well.
A: What about Europe, in general?
B: They emphasize on results. Some organizations would only focus on results and
lack developing Process and input, which doesn’t seem to last in long term.
European people are quite direct, expressive and daring. They don’t concern about
their self-image so much. However, they can also be hesitant at times; Europeans
are more hesitant than Americans. All in all, I think it all depends on each
individual.
A: I see. Let’s us continue. From your work experience in several organizations,
including Eastern companies though their parent companies are Western. Do you
see any cultural differences? For example, their vision, implementation, or
leadership style as Europeans or Americans emphasize on results whereas Eastern
Asians emphasize on Process.
B: Today, I would say everyone focus on results. However, this strategy isn’t long
term. It’s not an effective development. This type of development can become
ineffective over a period of time if we lack a good and stable leadership.
Therefore, I believe the best management would be focusing on Process. For
217
instance, “Process deliver Result”, which let Process as a dominant factor.
Coming back to an Eastern Philosophy and Western Philosophy, when I was in
the United States, I followed Western philosophy. I was able to adapt into Eastern
philosophy because of ‘Lean’ even though I worked under Western environment.
The style of working completely followed Eastern philosophy. Hence, I had the
opportunity to learn both philosophies in work aspect.
The dissimilarities between Europe and East Asia are; corporations in Europe
have their aims in making profit and return on investment. Whereas corporations
in East Asia concentrate on perfectionism and excellence. Nevertheless, being
excellent doesn’t necessary mean they are well developed in Process.
Toyota, for example, is a good example of East Asian corporations. However, it
has beginning to lean towards more results oriented. The world is changing and it
is affecting people’s behavior and their visions.
To answer your question, yes, now almost every organization in the world has
become “Result oriented message”. However, I would like to repeat again that this
is not a long lasting solution. What will last long term is “Process oriented”.
A: Ok. What I’m interested is from your experience how can we implement this
“Process oriented” approach into an organization to achieve the maximum result
in both profit and excellence? What impacts do managers have as well as team
members? How do we build an appropriate culture in the workplace?
B: Managers certainly play a key influence. The leader of organization is the key to
any change of its organization. Therefore, the leader and the strength of the leader
is very important.
There are two perspectives to answer to this question, whether it is for the start-up
organization or for an existing organization. Because these two scenarios are
completely different. If we are talking about the start-ups, we are able to build a
correct foundation from the beginning by bringing in a correct approach. We can
train our employees with a right mindset. Hence, recruitment is important in this
stage. When we recruit people, don’t only consider their educational background
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but consider their capability in understanding both theory and practical. Similarly,
their ability to apply theory in real life situations.
We have seen that most people often concentrate on getting a good degree, thus
they are very good in theories but not so much in practice. This is the main
problem that we encounter today. If I were to set up a new organization in
Thailand, we will first need to structure the foundation with a clear blueprint and a
proper system. Then, we will recruit the suitable employees and implant a clear
vision in their mindset. Consequently, blueprint is the first most important step for
the organization to have. Secondly would be the recruitment of the right
employees to fit in the blueprint. This is an effective approach for the organization
to become successful and sustainable. However, it is quite impossible to find the
perfect person or the ‘perfect fit’ for each role in each department. Or in another
word, we can’t ‘plug and play person’ when it comes to recruitment. The key to
recruitment is we have to understand each employee’s characteristic, being both
their weaknesses and strengths. Then, we will know which role will be the most
suitable for them, or how to improve that person’s weakness to fit in our blueprint
within the most effective time period. For all businesses, time is money therefore
we can’t afford to waste time. This we’re also called ‘work in progress’, which
allows us to develop our employees all the way through from the first step of
recruitment. This is similar to the concept of ‘coaching on job training’. Coaching
mentioning is also one of the key approaches for the start-up organization to
become successful.
On the other hand, the existing organization who needs to implement change and
development will lead to a different approach. This is actually what I do. So, first
step would be to eliminate all the problems and stabilize the situation. Because
once we have the stable situation, we can try to prevent small issues from
expanding. Otherwise, it is very difficult to deal with any problem in an instable
situation.
A: Can you give some examples of ways to stabilize?
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B: For example, I will talk about my previous work experience in a car
manufacturing industry. There were several factors, which led to an instability in
an organization such as the relation between time and delivery, which employees
lacked a full understanding about this. Therefore, we can improve this knowledge
by:
Educate them on how to deliver the products in time by implementing KPI or any
indicator into the system. This will allow them to know when is the appropriate
time to deliver products and to inform customers. Eventually, this issue will
reduce hence reduce the pressure on employees or what we called ‘outside
preacher’ and allows them to have more time to work.
To have an effective plan, we have to start with fixing problems, weaknesses of
employees and flaws in organization. In the meantime, when we try to prevent
more problems from arising, we will see more flaws and able to see through them
clearer each time.
A: What do you mean? How would we do this? Do you mean we could set a standard
in every step of work Process? And also the standard of KPI?
B: It would be impossible to do that in the beginning as we wouldn’t know what the
cause is. It would still be an ‘unknown factor’ and we won’t be able to Educate
everyone and expect them to understand everything. Therefore, in the beginning
I would take a ‘Top-down’ approach to get in control of the situation. Once, the
situation is stable, we can then take a ‘Bottom up’ approach. We will train and
develop the employees from the bottom of the chain in the organization’s
structure, to fulfill our needs and goals for the future. This approach explains the
concept of which management team initially takes the action and then take the
step back to develop their employees, thus allowing them be the driving force of
improvement in the organization.
A: Ok, and what is the next step?
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B: After applying ‘Bottom up’ approach, we then look at ‘vision’ of the organization.
What problems do we encounter over a period of time? What is our biggest
problem? Which problem is the priority? At the same, we have to follow our
blueprint as a reminder of what our plan and goal are. Usually, we divide our
developing plans into 3-5 years. We develop different area in each year, in order
to be effective and get a better result.
A: I see, so this would be similar to the idea of ‘Road Map’?
B: I wouldn’t say it is exactly like ‘Road Map’ as vision comes from dreams. Vision
can only come true when we insert facts and figures into it. Therefore, vision is
the first perspective you have on what you want to achieve. If you have a clear
vision and that vision is to run an organization without using a ‘Top-down’
approach, you will gradually find out what you need to do and slowly develop that
into an organization.
All in all, the effective plan to develop and implementing change in the existing
organization is what we called ‘Change management’, which consists of PDCA-
plan, do, check, and act. ‘Check’ is the most important performance we need to do
consistently and thoroughly. This is because we need to find the affecting factors
and be able to reduce and prevent them as soon as possible, before other factors
get affected.
A: Ok. I would like to conclude that from your opinion, you mentioned it doesn’t
matter what type of organization it is, whether it’s new or old. If it’s a new start-
up, we have to start with recruitment. If it’s the current organization which needs
change, first you need to turn dreams into vision, followed by finding mission to
support those visions, and finally implement the action plan.
B: Yes, something like that.
A: But before doing all these, you would suggest we need to stabilize the situation
first.
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B: Yes, stabilize the situation.
A: Stabilize the situation to prevent other factors getting affected, correct?
B: Yes, correct because if one factor gets triggered, it will be difficult to control the
situation or this impact is known as ‘uncontrolled factor’.
A: Ok and then what happens after we set our vision?
B: It’s the matter of how clearly we project that vision to everyone.
A: How do we do that?
B: What do we see in our dreams? How can we put our dreams into action to achieve
our vision? Let your employees be part of this journey till the end of your
achievement.
A: This means the leader must be very important.
B: Yes, leaders are very important. Leader’s vision plays a significant role in
business’ success.
A: From your experience, some people lack understanding so leaders must be strong
enough. Do they need to have a high position in the company?
B: Once I have been told, to get to where I am today or the job that I’m doing now,
you as a leader must imagine yourself as if you’re remoted on the island. No one
can see you and there is nobody you can see. What’s important for the leader is
the ability to take your fellows with you. You need to make them see what you
see. This is very important. You need to create a clear vision in order to transform
a dead island into a country or continent. However, this is not easy as everyone
comes from a different background, different culture hence the understanding and
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perspectives are different. It would be impossible for everyone to learn at the same
speed and this will take time. Consequently, it is necessary for the leader to
understand each and every fellow and adapt to their characteristics. This action is
adapted to achieve what we called a strategy.
A: Base on your experience, which method or approach is the most effective or
successful?
B: What I have done and I still believe it is the right thing to do is to be clear with
your dreams and know what you want. Because in the end, the ultimate desire for
every human is ‘what is in it for me’? That means when they don’t get what they
want or think that it isn’t useful for them, they won’t enjoy doing it. This will lead
to a low success rate. Therefore, the most important thing is you need to make
sure your employees know what benefits they get from their jobs such as
experience, fame, interesting ideas, new concepts, or opportunity in career growth,
etc. All of these will be a motivation force to drive them and motivate them to do
things they might never done before. To achieve this approach, you need to have
an understanding of SWOT- Strength, Weakness, Opportunity and Threats. You
can use SWOT to analyze the personality of your employees. Hence, you know
what are their strength, weakness, opportunity to grow or develop, and threats.
Once you have an in depth understanding of this, you will be able to lead them in
a right direction.
A: This shows that you give a very high importance to the leaders.
B: Leaders are the key factor to run an organization. The ‘change’ I have been
talking about is the significant change in an organization.
A: What about ‘Lean tool’ that we have all been talking about? And how important is
something like SMED to create a ‘Lean culture’?
B: Actually I would say that ‘lean tool’ is just a tool.
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A: It is just a tool.
B: Right, it is just a tool, which has no impact on developing any new culture.
Culture comes from thoughts and ideas. First, we need to have an understanding
what is lean? What is the sustainable approach? Then we can identify the suitable
tools to accomplish these ideas. For example, you want to build a house. You
can’t build a house with one hammer. You need to have a whole picture in your
mind of how many floors or what types of materials to use. Then you can select
the right tools to build your house. Thus, a tool is just a tool, it isn’t a factor to
determine what we need to do. Generally, it starts with your ideas then comes
your search for the right tool to support that idea. Therefore, Lean, SMED,
Standard work, Dynasty mapping, Can Bus, and Pull system came later.
A: Going back to what you’ve mentioned earlier that we need to build a new
organization. This is the most important part, right?
B: That’s right. The majority of organizations only focus on applying these ‘tools’
into their work system but they don’t understand the whole purpose of it.
Therefore, these ‘tools’ only serve short-term, which is opposite to the approach
of Lean. Lean doesn’t aim to serve short term. It is created to serve for long term
purpose. It focuses on the stability. Most organizations use Lean as their short
term goal such as to improve their financial performance or only to get short term
result. Hence, the implementation of lean isn’t so successful. If you do the internal
check in those organizations who called themselves as ‘lean’ carefully, there is
actually less than 1% who becomes successful with this new implementation.
Those who didn’t succeed because they used lean to only serve their short term
results and did not consider sustainability. Therefore, these organizations can be at
risk at any time.
A: I have a question to ask regarding implementing lean, which wasn’t so clear to me
earlier. As you have said you have worked for an authentic Western company
with Western co-workers and Western style company in East Asia (with Western
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parent company). What are the differences? And what can be implemented
differently?
B: It is different because of the people we have to deal with is different.
A: It is different because of individuals or culture?
B: It is both. For example, I used to work in the United States and have done CI
(Continuous Improvement), when I moved to Europe I still applied the same
philosophy. Yet, in a slightly different way of approach because their culture and
thinking is different to Americans. Their point of interest and ‘what is in it for
me?’ is different. Similarly, when I come back to Asia, point of interest and
culture is also different.
A: Can you please explain the differences?
B: Europeans give importance to families more than Americans, whereas Asians give
more importance to families than Europeans. Therefore, post relationship and
networking tend to be more obvious and important than in Europe. As a result,
networking is the way we should approach around Asians. This is the reason why
networking is one of the keys to a successful implement in Asia.
A: What about losing their image, is it the same with all three cultures?
B: Americans give more importance to their results than their image. Base from my
own experience working with Americans, they were very open and admitted to
say ‘I made mistakes’. We hardly hear this in Asia. Hence, losing image or
reputation is not the main concern that Americans have. Instead, this will be the
main concern for Asians and some for Europeans.
A: Which working style; European, American or Eastern Asian is the most
appropriate to implement in Thailand?
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B: I think it will be a mixture. We need to combine as everything has its pros and
cons.
A: Can you please analyze why should it be a mixture of styles in Thailand?
B: Thailand is in Asia, hence the beliefs, culture and background are similar to East
Asia. Thai culture is leaning more towards oriental style, even though we get a lot
of influence from Western culture. Therefore, we need to create a good balance
between Eastern and Western style. For a new organization in Thailand, we need
to bring in Western style to train people to be expressive, brave enough to share
their ideas and admit when they make mistakes. They have to learn to understand
that it is okay to express their ideas. It is not wrong to have different ideas
between their co-workers. We can learn from different ideas, that’s the beauty of
it. This is when brainstorming comes into picture. It is always more effective
when ideas are shared and discussed. The more the better results you will get. This
is the reason why we need to mix both cultures as this is the strength of Western
style.
A: We will have to continue the training by learning about each individual, analyze
SWAT, etc. The implementation of Western style may be a little aggressive to
Thai individuals so we need to slowly adapt that in their work culture, right?
B: Yes, we need to be clear and make sure everyone has the same vision that we do
this for the organization. Losing self-image is not a primarily concern. Leaders or
managers have to demonstrate this style. They have to show they are brave
enough to admit, to say ‘sorry, I make mistake’. Therefore, their employees will
learn from them and gradually adapt that into their working style.
A: Can you please rank in order which is more important between leadership,
‘Process tool’ and ‘policy deployment’?
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B: Both of these approaches are very similar as ‘policy deployment’ is also under
Process. I would say as I have already mentioned that leadership is the most
important. Leader’s attitude will be the driving force for the organization.
Secondly, you need to have an understanding about policy deployment. This is an
approach which usually takes 3-5 years in planning. Lastly, after having that plan
we can then focus in more details, which is working on Process to develop the
plan, to find effective solutions and implementation to achieve your vision.
A: So tool would come last.
B: Yes, tool would come last in order as it only plays a small part of contribution in
organization’s success.
A: Ok. Last question for you, do you have any model in mind, which would be the
most effective to implement ‘lean’ into Thailand? If you can’t think of it right
now, it’s ok we can always come back to this later. I understand it takes a bit of
time to think.
B: I have some models in mind. In order to make ‘lean’ effective and applicable in
Thailand and become successful, we need to build knowledge. By all means, we
need to train people by doing or what is called ‘learning by doing’, encourage
people to be practical, develop their knowledge by doing workshop. They will
have a clearer understanding of both theory and practicality. Through this, a better
knowledge is formed and they will be able to react in real life situations. Books
can’t give you real life examples of what we need to encounter on a daily basis.
In the past, we only concentrate in studying theory and build knowledge by
training in classes. Even today, I can see that people in this generation only know
theory but they lack understanding of practical work. Also, sometimes they can
have misunderstandings and misbeliefs. Hence, a right way of providing
knowledge is important.
‘Learning by doing’ is one of the models that allows us to make mistakes. We are
all humans after all and humans make mistakes. You need to learn from your
mistakes and develop from that. I use this learning as a philosophy in developing
myself all the time. Like there is a saying in Thai ‘where there is worst, there is
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best’. I see it as a learning Process and the opportunity to grow as it does not
necessary mean that in bad times, everything will be bad.
At East you know what you need to do and what not. On the other hand, when
you’re in a good organization, you can learn from successful people and their
experiences. You can improve what you think will work best according to your
experience and apply it with yourself or new organization.
This is a good example for Thai individuals to learn to be expressive, brave and
confident to share their ideas. I wouldn’t say there is a fixed model or a right
model for anyone in particular. The model should be adaptable to develop the
growth of individuals. If each individual or employees are full of strength,
organization will also have strength to succeed. That’s my belief.
A: So to conclude my understanding, I understand that your strongest belief is the
powerful and effective leader, who will be able to lead a successful organization,
just like a person who gets stranded on the island and needs to take care of his or
her fellows. The leader has to share his or her vision and goal to motivate those
fellows on the island. They would need to know what’s beneficial for them and
what their roles are. Is that correct?
B: They don’t necessarily need to know everything but they need to know how they
can survive on the island.
A: Hence, they need to apply ‘learning by doing’ at lEast to understand they need to
survive on the island with the leader.
B: Yes, right. They need to see that vision. They need to know the island well first,
how big and what does the island have.
A: But doesn’t need to be perfect?
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B: Yes, it can’t be perfect because each person has different perspectives and
different vision. Therefore, what matters most is the ultimate goal that everyone
can share, which is success.
A: Ok, I understand. Thank you very much for your interview. I have interviewed 3
different people and all are not the same.