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 |