Global Operations Management of Japanese companies in the Asian Region

1
Global Operations Management of Japanese
companies in the Asian Region

•  
• Masahiro Miyagawa
• Chukyo University, Japan

2
Worldwide Operations of TOYOTA
3
Global Operations Management

• Long Term Prosperity
• of the Going Concern
• Vital Business Strategy
• Quality Oriented Management
• Worldwide Optimization
• Quality Value Chain

• Operations Management
• Quality Management
• Process Management
• Supply Chain Management
• Global Operations
• Competing in the global market
• Global production/procurement
• Technology Transfer
• International Work-sharing

4
Global Strategies of Japanese
manufacturers

• 1. Steps of Globalization
• Export ? Competing in the global market
• Setting sales network up in the overseas
  market
• Licensing
• Direct investment ? Establishing manufacturing
  plant in overseas
• International work-sharing ?Best production
  site /Best procurement
• 2.Transference of Japanese management systems
  
• Transference of Core competencies
• management system, technology
  production knowledge
• Cross-cultural management Application
  Adaptation
• Training workforce
• On The Job Training by Japanese Takumi
  engineers
• Quality oriented operations
• Global strategies to accelerate
• worldwide manufacturing optimization

5
The Share of East Asian countries in the world
production

• Source METI, White Paper of Trade 2006

6
The Asian Linkage
Finished consumer goods
Source METI White
Paper of Trade 2006
7
Contribution of Foreign-owned Companies in
China Trade

• 
  (U100Mill)
• Year Exports Imports Trade Total
• Total FOC Share Total FOC Share Total FOC
  FOC Share
• 1992 850 174 20.5 806 264 32.4 1,656 437
  6.4
• 1995 1,488 469 31.5 1,321 629 47.6 2,809
  1,098 39.1
• 2000 2,492 1,194 47.9 2,251 1,173
  52.1 4,743 2,367 49.9
• 2005 7,620 4,442 58.3 6,601 3,875
  58.7 14,221 8,317 58.5
• FOCForeign-Owened Companies Source China
  Year book 2006

8
Global Operations of TOSHIBA

• Toshiba is one of the most positive global
  players in Japan.
• Dalian Model of Toshiba
• Successful management method of operations
  management in Toshiba. Achieved higher quality
  level and better productivity in meeting
  demanding customers requirement.
• The productivity of Toshiba Dalian 1.5
  times better than its mother plant.
• Applied the method to its overseas
  operations in the Philippines, Germany and France
  .
• The key words of the successful management
• Quality management, Development of human
  resources and Transference of Japanese management
  system and technology.

9
Quality Management and Competitiveness
TOYOTA is one of the Quality oriented companies
Why Quality Management is so effective?

• QualityProductivityCompetitiveness
• Enhance the quality of business resources
• Leadership/Process management/Team work
• Continuous improvement for the customers
• Reducing machine troubles mishandling
• Less rework scrap ? Cost reduction
• Better quality competitive price
• Grater market share
• Increasing sales, profit employment
• Competitiveness of industries

Quality
Productivity
Competitiveness
10
Japanese-owned Manufacturer in China

• One of supporting Industries
• Dalian TongYang Steel Processing Co.
• Established in 1993

11
Research Design

• Companies invested by Japanese
  18,000
• Companies released
  4,154
• Universe of this research
  1,000
• (Manufacturers in 4 areas )
• Samples(By Random Sampling) 200
• Usable questionnaires (as of June 2002)
  52
• Area\ Chemical Metal Mchinery
  Electronic Transport. Precision Others
  Total
• Beijin 14 10 10 48 3 16 4 105
• Liaoning 46 50 15 58 8 15 12 204
• Shanghai 116 58 46 111 29 34 21 415
• Jiangsu 60 56 31 68 34 15 12 276
• Total 236 174 102 285 74 80 49 1000

12
Empirical study on TQM Practices
Questionnaire Categories

• 1. Leadership---------------------------------- 9
  questions such as
• 1a. Extent to which the top company executive
  assumes responsibility for quality performance
• 2. Information ---------------------------------8
  questions such as
• 2a. Availability of data about quality
  defect such as error rates, defect rates, scraps,
  rework, etc
• 3. Strategy-------------------------------------
  10 questions such as
• 3a. Extent to which quality management is
  considered in the company/division strategic plan
  
• 4. Human Resources ----------------------- 29
  questions such as
• 41a. Extent to which quality-related training
  is given to hourly employees ------
• 42a. Extent to which agreements about
  improvement activities for the individual
  employees---
• 5. Quality Assurance ---------------------12
  questions such as
• 5a. Extent to which new product design is
  reviewed before the product/service is produced
• 6. Supplier Quality -------------------------- 10
  questions such as
• 6a. Extent to which suppliers are selected
  based on quality rather than price
• 7. Quality and Operational Results-------14
  questioins such as
• 7a. Extent to which scrap levels have been
  reduced by quality management(QM)
• 7e. Extent to which the competitive position
  of your company has been enhanced by QM
• 7f. Extent to which market share of your
  company has been increased through QM
• 7j. Extent to which profits of your
  company/division have been increased by QM

13
Survey Results

• The data sample shows quality management
  statistics
• 90 of samples have implemented TQM for more
  than 3 years.
• 80.7 of samples marked a "High" and "Very High"
  degree of assessment to the question that TQM
  was considered in the company strategic plan.
• 75 of samples marked a "High" and "Very High"
  degree of assessment to the question that TQM has
  contributed to keep the company in business
• 61.5 of samples marked a "High" and "Very High"
  degree of assessment to the question that TQM has
  contributed to improving business performance of
  the company.
• Most of Japanese owned manufacturers in China
  have implemented quality management.
• TQM practices have contributed to their
  operations.
  

14
The global operations management of successful
Japanese companies

• They have been operating with quality-oriented
  management and a global strategy.
• Entered the global market to enhance their
  competitive advantage.
• Core competencies management system, advanced
  technology, well-trained workforce, production
  knowledge and well-located facilities.
• Transferred their management systems to their
  subsidiary companies, and let them know the
  importance of the quality.
• TQM practices in Japanese-owned manufacturing
  companies in China relate positively and
  significantly to performance.
• They have established the linkage of value chain
  beyond its traditional boundaries.
• They have linked horizontal work-sharing and a
  reliable supply chain supported by quality-minded
  people.
• Quality Value Chain the interrelated series of
  operations that achieve the quality service,
  product and human resource in the region.

15
Worldwide Operations of CANON

• Asian Region
• Canon China
• Canon Hong Kong
• Canon Korea
• Canon Taiwan
• Regional Headquarters (Singapore)
• Canon in India
• Canon in Malaysia
• Canon in the Philippines
• Canon in Singapore
• Canon in Thailand
• Canon in Vietnam