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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