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The Mini-Company Concept

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Mini-company concept

In business, president can run the organization successfully

and effectively.

More success will get more confidence from the investors.

If we view the next processes as the customer and the

previous processes as the supplier, every individual in the

organization can be president of his/ her area of

responsibilities.

This setting is called “mini-company”.

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Steps in Running a Mini-Company

Name the mini-company

Write a mission statement for the mini-company

Make a company profile by listing people and machines etc

Develop customer-supplier relationship chart and discuss

meaning of the arrows

Clarify the objectives

Develop plans of action to achieve and then execute

Monitor the progress and celebrate accomplishment

Repeat this cycle regularly

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Roles and Responsibilities of Supervisor

Working with top/ middle management

Developing the goals and approaches

Executing plans, checking the progress and reporting the results

Working with operators

Sharing of goals and utilizing operators’ ideas

Providing necessary education and training

Working with people from downstream (customers)

Understanding customers’ requirement clearly

Controlling the process to assure customers’ satisfaction

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Roles and Responsibilities of Supervisor

Working with people from upstream (suppliers)

Providing feedback

Receiving education and training to upgrade

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Meaning of Mission

Each mini-company have its own mission or value

statement.

If people have ownership in what they do, this statement

will help them work as team and share understanding.

So when we prepare mission statement, it should be

something that we can identify.

And if we think like that, whatever we do in organization

become expression of our mission statement.

To express this as : Organization Problems = Mission –

Current Situation

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Benefits of Mini-Companies

If we understand mission and if we try to live with the

mission in mind, our behavior should change

While implementing mini-company concept, every person

should be doing as part of his or her job responsibility

Sense of ownership

Work as a team

Focus on clear objectives

Barriers will be reduced

Cross-functional linkage

Identifying the areas of improvement

Participate

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Glass Wall Management

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Glass wall management

Running mini-companies in an isolated setting is not good

enough

Company needs to find ways to further tie people’s creative

resources together

Glass wall indicates open communication throughout the

company

Key characteristics of Glass Wall Management

It is consciousness-driven

Everything is aboveboard

Progress is shared

Free market system is practiced within company

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Comparison between Black Box and Glass Wall

Black Box Glass Wall

Top Management Word hard to manage Work hard to lead

Results oriented Results and process oriented

Short-term oriented Long-term oriented

Use people as machine View people as source of creativity

Middle Management Specialize in certain field Have boarder view

Do not share knowledge Share knowledge and experience

Do not help others Help others

Direct people to get things done

Lead, empower people to be done

Protect the current job Try to eliminate current job

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Comparison between Black Box and Glass Wall

Black Box Glass Wall

People at Shop Floor Not asked to use brain Encourage to use brain

No ownership Have ownership of what they do

Creativity is hidden Creativity is exposed

Small share of contribution Large share of contribution

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Customer-Oriented Organization

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Customer-Oriented Organization

Every businesses try to focus on satisfying their customers’

needs.

Whoever provide better services or products can compete with

the others.

Customer-supplier relationship is the closed loop.

Everybody who are participate in this relationship try to provide

better services or products continuously.

Everybody in the organization try to draw customer-supplier

relationship chart.

By doing like this, there are so many benefits which can be get.

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Customer-Oriented Organization

Developing the boarder view of the one’s job

Identifying the key customers

Clarifying roles and responsibilities

Clarifying the interrelationship in the organization

Educating new employees

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Local Optimization to Total Optimization

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Local Optimization to Total Optimization

As the customer-supplier relationship become clear, the

skills of employee who try to satisfy the customer’s needs

will be continuous improvement.

By providing the satisfy to the customers can lead the

organization to the better customer-oriented organization

If there are lack of information and lack of materials, the

organization will face the problems at the organization’s

boundaries and this can block the employees’ view and

ideas on the organization.

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Local Optimization to Total Optimization

Even there is the high lever of materials inventory or the

enough information, the organization can face the high

rejection rate.

This can be called as the local optimization.

On the other hand, if there are more communication and

cooperation, the organization can eliminate the problems at

the boundary level and more provide better customers’

satisfaction.

Moreover people can communicate across the organization

openly and freely, so the process can be done more smoothly.

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Standard Operating Procedures (SOP)

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Standard Operating Procedures

The purpose of SOP is for achieving the highest value-

adding work.

SOP aims for eliminating the wastes and eliminating the

over-burdens.

Key criteria's for SOP

Focus on operator’s movement

Apply for repetitive operation

Create on the shop floor

Developed by the operators

Improved or modified continuously

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Standard Operating Procedures

In order to practice SOP effectively,

Display in the working area, not keep under the desk

Comparing the prescribed work with the actual

Used for training the employees

Like as a mirror. If there is no improvement in SOP, there will be little

problems

Point out the real cause of the problems