University Of Finance & Administration MODERN MANAGEMENT [BA_MM] Pavla Břečková [Ing., Ph.D.]

System of business management MRKTG 1. Research REMOTE CLOSE 2. Plán SWOT AIMS CHECKING TRADE FIN SOURCES 1. Sales plan 2. Forecast 3. Receivables 4. MGMT system (motiv., report) 1.Fin.plans 2. Controlling OPERATIVE STRTG 1.FIN 2. HR 3. TECHNOL 4. Material -KNOW Zdroj obrázku: Karel Havlíček

PRODUCTION (manufacturing process) PRODUCTION can be understood as: Area of MANAGEMENT between PURCHASE and SALE Overall, it is about the realizing of BENEFITS for customer R&D Purch ase Manuf acture Sale Communication – promotion of COMP. ADVANTAGE and of BENEFITs for CUSTOMER PROFIT

PRODUCTION MANAGEMENT Standardization of INPUTS of the production process: - of material standard (define material properties, tech.norms) - Standards of machines and equipment - Standards of tools, equipment and tools Minimum BATCH SIZE TESTING SERIES CHANGE management (drawing parts) Technological standardization - of working procedures - of assembly procedures - of technological processes - of the control procedures + Q.REPORTs

Examples of MANUFACTURING approach VIETNAM  Vietnamese Socialistic Republic  East-South Asia  90 million – density: 254 people/ km 2  Young population: 53% < 25 yr.  Capital: Hanoi  “Divided” into 2 parts: Hanoi / Saigon – Ho Chi Minh City  Est. 1945, united 1976  Member of ASEAN  Elements of free business

6.6. competitive advantage: persistence, hard- working, humility education – better avg.in south Asia (no illiteracy) not developed country but growing rapidly (7-8%) relations to CZ (1/4 million of V.studied in CZ – backbone of V.economy) opport. in state tenders bad infrastructure no history and exp. in industry / engineering corruption QM missing => low VA industries, no experience business culture (no long- term relations / businesses) very low law enforcement not fully liberalised envi extreme difference state x private business +- VIETNAM

Business doing –Patience, long meetings / negotiations –No long contracts – chaos: changing mind, no reliability in European understanding (effort to satisfy) –No business drive in Euro perception (enq./offers – lengthy via ) –Personal contacts necessary / local –No win-win (‘loss of face’ danger) –Business cards handling –‘YES’ even if meant NO VIETNAM

Business doing VIETNAM

Examples of MANUFACTURING approach TCHAJ-WAN

–Republic of China (ROC, Taiwan) –Capital: Taipei –Population: 23 mil. –Density: 668 /km2 –GDP per capita USD –Unemployment 4,2 % (2013) –Language: Chinese - mandarin –Religion: Taoism + Buddhism –Currency: Taiwanese dollar TCHAJ-WAN

11. extremely hard-working good knowledge of English (EU/USA education) industrial tradition (cca 30 years) no-VA parts (or normalised) very cheap flexibility & professional approach (enq./ sampling / quality) ISO norms not a formality good infrastructure: airport / HSR fully free market raw materials import – dependence on China changing EUR / USD status manipulation + pretending “made in Taiwan” (PRC reality) frequent typhoons (supplies postponing) +- TCHAJ-WAN

Business doing –Professional, very polite –Business cards handling –Quick response / sticking on agreed –Willingness to sort out the claims –No need to double-check understanding –In machine production – taking shoes off in offices –Strong green teas at business meetings TCHAJ-WAN

Business doing TCHAJ-WAN

The development of the achieved qualitative trends in comp. – 4 LEVELS: 1 / supervision of the quality, 2 / quality control, 3 / quality assurance (models QMS - Quality Management System) 4 / Total Quality Management (TQM models - Total Quality Management). - the first two stages has been fairly inadequate quality management tools in the hyper-competitive environment - QMS and TQM models are generally considered essential systems in the modern concept of corporate governance. QUALITY MANAGEMENT

QMS models Quality Management System TQM models Total Quality Management Norms Procedures Selected groups of employees Strategy of steady improvements Philosophy All staff BSC models Balanced Score Card Balance : Finance – Customer – Internal procedures - Innovation Quality management models Source: Karel Havlíček

Advantages of implementation of QMS models (ISO certification): -In the company there is defined and established order at many levels of business activity -it increases the credibility of the company, (especially customers in the industrial markets), quality certificate from their suppliers is even required -as well as other stakeholders (banks, investors, employees and others.) perceive quality certificate as an element of stability -implementation of quality policy in the company and marking the company as a quality certificate holder could be a competitive advantage. Disadvantages of the ISO norms implementation : -If wrongly implemented, it might be quite bureaucratic -Might be time-consuming and costly, paying to the certification authority and to a consulting firm helping to implement, investing into employees through training of internal auditors etc -Does not necessarily guarantee the quality of the product or service provided QMS – certification acc. to ISO norms

= business and management philosophy based on promoting quality and management practices that lead to the overall quality of the organization  TQM is more a philosophy than the norm, not even any general guidance (unlike QMS) how to implement the quality policy TQM  to introduce the the model means also to set up a framework of quality systems and procedures to measure quality.  It is also suitable to prepare incentive plans for employees who will put TQM model in practice  QMS models may be a part of the overall corporate quality policy implemented within the framework of TQM.  The introduction of TQM is not certified, nor is there a general rule, when the enterprise has already implemented TQM model. It is up to each company to create such a quality management model that suits its focus and that reflects the wishes and requirements of customers TQM – total quality management

Area: km² Population: 127,433 milion Density: 340 people/ km² Aging population: 25% > 64 yr. Capital: Tokio Language: japanese Religion: Shintoism (51 %), Buddhists (38 %) Nationalities: Japanese (99 %) Examples of QUALITY approach worldwide JAPAN

19. hard working industriál tradition, stress on quality and reliability value of partnership = opening of new opportunities high willingness to cooperate with Czech SMEs (but tough selection) willingness to co-finance larger projects QM required on professional level infrastructure large culture differences, habits relatively low flexibility very long pre-contract and decisive process (multiple meetings) stress on extremely fast realization (after the decision is made) +- JAPONSKO

Business doing –Patience, long “courting” x extremely fast realization afterwards –Profesionál, very polite –Business cards – importance, key thing –Specific habits (from European point of view) – eye contact, role of silence etc.) –Value of partnership – new opportunities opening –Stress on quality and faultlessness (multiple checks, verifications) JAPAN

Examples of QUALITY approach in the world INDIA

–Capital: Delhi (11 mil.) / largest: Mumbai (12,5 mil.) – Language: Hindi, English –Population: 1,255 bilion –Religion: hindu (80%) -Density: 382 /km2 -GDP per capita: 3,100 USD INDIA

23. good education English (unlike China e.g.) bank sector highly developed large market / growing purchasing power distinctive ability in Q relatively low productivity secluded economy (extremely high import taxes) changing EUR / USD saying clear NO is not in mentality personal connections with business or politics inevitable + - INDIA

Business doing –English –Demanding negotiations, long (several hours), multiple meetings –Half-truths common –Verbal promise – not to rely on –Personal contact necessary –Compromise necessary (Indian - bargaining) + keep the positions (manipulation resistance) –Written agreements – sticking on –Non-verbal typical nodding INDIA

12. Lecture Summar of the course MODERN MANAGEMENT Discussion about selected topics Individual comments, interaction with students

Thank you for your attention Ing. Pavla Břečková, Ph.D.