MBO

Industrial Management using hoshinkanri for direction planning and deployment

Invented by Peter Drucker 1954

Originated in Japan in 1961 and used successfully by Toyota and top-tier companies in US and Japan

Management based on

command and control

Management is based on empowering, motivating, and developing people on problems solving skills

Focus on the results

Focus on the process not the results this include the plan, the

method, the innovation, and people development & training on problems solving

Recognize individuals

Rewarding system is based on teamwork, overall performance and accomplishments

Promote individualism

Promote teamwork

Top-down method

Top-down with linkage to shop floor

Managing process via distance and rely on reported metrics

Managing on shop floor (gemba principle) and base management decisions on facts

Use metrics to evaluate people and results

Give people degree of autonomy and use metrics to monitor the work progress and understand the obstacles need to be removed to improve the process

Focus on the strategic thinking only

Link the strategic thinking to shop floor, use gemba as a management principle, and use visualization, standardization to improve the work