HOSHIN KANRI - HK An Investigation of Policy Management in a Japanese Subsidiary in Thailand: Concept, Key Success Factors and Barriers PATEE TINTAVEE

HOSHIN KANRI - HK A successful strategic planning technique (Udasco, 2001) MOTIVATION… Increase productivity (Babich, 1996) Popular and extended to outside Japan e.g.USA, UK (GOAL/QPC, 1990; Hacker et al. 1996) A culturally distinct approach (Lee & Dale, 1998) How is policy deployment modified to fit in with Japanese company in Thailand? Argument… Policy deployment is…

HOSHIN KANRI - HK Literature Review …a form of corporate-wide management that combines strategic management and operation management through a participative management process of developing plans, targets, control and area for improvement based on previous level’s policy and an assessment of the previous year performance. Definition… (Witcher & Buttherword, 2001; Lee & Dale, 1998)

HOSHIN KANRI - HK Literature Review Policy deployment is powerful tool for strategic quality planning, and an integral part of TQM (GOAL/QPC, 1990) Focus on key objectives and means to achieve objectives, in every employee level (Akao, 1991; Colletti, 1996; Cowley & Domb, 1997) Is application of PDCA (plan-do-check-act) cycle (Akao, 1991; Kondo, 1998) Is a participative management process (Lee & Dale, 1998) Is a culturally distinct approach (Bishop-Gain, 1992; Juran, 1989; Lee & Dale, 1999; Witcher & Butterworth, 2001) How is policy deployment modified to fit in with Japanese company in Thailand? Argument…

HOSHIN KANRI - HK 1)How is the policy deployment process modified to fit in with the conditions of a Japanese company in Thailand? 2. How are the PDCA cycle’s interplay and key roles related to the implication of policy deployment process (catch-ball) in a Japanese company in Thailand? 3. How each employee level involved in the process of policy deployment? 4. What are the most influential key success factors and barriers of policy deployment in a Japanese company in Thailand? Research Questions…

HOSHIN KANRI - HK Research Framework… The seven-step of policy deployment (GOAL/QPC*, 1991) *Growth Opportunity Alliance of Great Lawrence/Quality, Performance and Competitiveness Source: GOAL/QPC Research Committee (1991)

HOSHIN KANRI - HK Research Methodology… Research design: Qualitative Approach Case study is appropriate to investigate organizational and managerial process, and the research questions “how” and “what” (Yin, 1994) Approach: A Single case study (in TOYOTA MOTOR THAILAND) Population: Management who works with company at least 3 years (78 prs.) Data Collection & Data Analysis:

HOSHIN KANRI - HK Research Methodology… In-depth interview Existing documen ts Policy management 3 prs. Implementati on group 3 prs, Convergence …(Data Phase 1 + Phase 2) Results Data Analysis… Content analysis based on research proposition (Yin, 1994)

HOSHIN KANRI - HK Findings… 1) How is the policy deployment process modified to fit in with the conditions of a Japanese company in Thailand? The nine-step policy deployment process Policy audit: to ensure plans are on direction, and contents are valid as guideline. Policy diagnosis: in term of “quality” of “plan” and “do”, e.g. Support company policy, measurable, clear schedule & responsible. Half-year review: review progress/achievement.vs. plans/targets, to ensure high priority plans are on track & direction.

HOSHIN KANRI - HK Findings… 2. How are the PDCA cycle’s interplay and key roles related to the implication of policy deployment process (catch-ball) in a Japanese company in Thailand?

HOSHIN KANRI - HK Findings… 3. How each employee level involved in the process of policy deployment? Policy processTopDiv.Dept.Func. 1. Define policy guideline 2. Set 3-5 year plan 3. Develop annual objectives and plan 4. Policy deployment and Cross-function 5. Policy implementation 6. Policy auditing 7. Policy diagnosis 8. Monthly progress review 9. Half-year and Yearly review

HOSHIN KANRI - HK Findings… 4. What are the most influential key success factors and barriers of policy deployment in a Japanese company in Thailand? Key Success Factors 1. Top management/management participation and leadership 2. Clearly define targets, measurements and key performance index (KPI) 3. Closely followed up by middle management 4. Continuously following up by employing the PDCA concept 5. Good communication within groups and in between concerned parties 6. Reach the root cause of problems 7. Cross-functional and cross-departmental meetings for sharing and learning 8. Clear responsible persons 10. Pay attention to problems and promptly take corrective action

HOSHIN KANRI - HK Findings… 4. What are the most influential key success factors and barriers of policy deployment in a Japanese company in Thailand? Barriers/Pitfalls 1. Lack of management participation and support 2. Lack of policy deployment knowledge 3. There are not enough reviews, cause for no appropriate action 4. Define unsuitable KPIs, and measurements or misunderstanding 5. Unclear responsible persons. 6. Middle management lacks capability and vision 7. Poor communications between groups, functions, departments 8. No budget and resources 10. Lack of cooperation from concerned functions and employees

HOSHIN KANRI - HK Contributions.. Contribution to knowledge: New insights of policy deployment and existing tacit knowledge are translated into explicit knowledge, the nine-step policy deployment process, in Thai settings. Contribution to practical management: Concept and details of modified policy deployment process, and influence variables are clearly stated as preliminary guideline for management and practitioners to adapt and apply. Future work : Confirm policy deployment process and influence variables by quantitative approach

HOSHIN KANRI - HK Thank… ?