1 Japanese Approach To PLWS October 22, 2015 Yasuhiko INOUE Japan Productivity Center (JPC)
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Transcript of 1 Japanese Approach To PLWS October 22, 2015 Yasuhiko INOUE Japan Productivity Center (JPC)
1
Japanese Approach To
PLWS
October 22, 2015
Yasuhiko INOUEJapan Productivity Center (JPC)
1. The Meaning of Productivity & PLWS (1) International Common Indicator of Productivity (National Level = GDP & Company Level = Value-Added) (2) GDP = Total of All company’s Value=Added amount in Malaysia
2. Japanese Approach to Productivity and PLWS
(1) Three Guiding Principles
(a) Job Security First
(b) Labor-Management Cooperation (c) Fair Distribution of Productivity Gains (PLWS)
3. Japanese Approach to Quality
3
33
Definition of Productivity(Technical)
Output
Input
Products/ServicesProfitValue-Added
Quality of Management
Labor / Workers
Capital Machines
Productivity is NOT just a technical concept.
Wide social concept is; Productivity is above all, an attitude of mind. It seeks to continuously improve what already exists.
It is based on the belief that one can do better today than yesterday and even better tomorrow.
(1958, European Productivity Agency ) Human Oriented & Betterment of QWL / QL
Definition of Productivity (Social)
(International Common Indicator)
WHY PRODUCTIVITY?
Why Productivity
for Malaysia ?
Indicator of Country’s Productivity
= GDP or GDP per Capita
Because we want to make Malaysia Rich & Competitive.
(International Common Indicator
for your NATION / COUNTRY? Productivity Indicator
= GDP
Bigger GDP
= Competitive Country
= Higher Productivity
for your NATION / COUNTRY?
GDP per Capita ( WB, 2014/2010 US $, PPP)
2014 2010
Malaysia 24,951 (20,096)
Philippines 6,982 ( 5,524)
Indonesia 10,517 ( 8,294)
Thailand 14,552 (12,508)
Vietnam 5,629 ( 4,396)
China 13,216 ( 9,239)
Japan 36,426 (33,741) Singapore 82,763 (70,598)
GDP = Total of All Companies’VALUE ADDED (GROSS PROFIT)
In Malaysia
Indicator of Malaysia’s Productivity /Wealth
is
(International Common Indicator)
GDP = Total of All Companies’
Value-added (Profit) in Malaysia
GDP
Textile Electric Auto OthersChemical
A C D nB
(Industries)
(Companies)
(International Common Indicator)
International Common Indicator
Company’s VALUE ADDED
Management Share Labor (Workers) Share
(GROSS PROFIT (LABOR COSTS
=Profit, Dividends , or PERSONNEL
Tax , etc. ) EXPENSES )
Depreciation
Converted into
To RenovateExisting Facilities New Projects
Reinvestment
VALUE ADDED STATEMENT
Hotel Business
Creating Value Added
39%Employees Salaries
39%
26% Government Tax Provides for 13% Interest on Bank Loan
12%Shareholders
Dividend
10%Reserved
Earnings
Enlarge Productivity Gains (Value-Added)
Value- Added
Productivity Improvement Activities
(Company Level)
* Company Productivity is to maximize Gross Profit ( = Value Added Amount)
* Value Added Amount of All Companies in a Nation = GDP ( = Indicator of National Wealth)
Company’s Productivity contributes to National Economy
(Japanese Approach)Management & Labor (Workers) can Cooperate in enlarging Value-Added.
International Common Indicator Company’s VALUE-ADDED
Management Share Labor(Workers) Share
(GROSS PROFIT (LABOR COSTS
=Profit, Dividends , or PERSONNEL
Tax , etc. ) EXPENSES )
Three (3) Guiding Principles for a Company to Increase Productivity
PROCLAIMED in 1955 when JAPAN STARTED PRODUCTIVITY MOVEMENT
(1) Should Not Layoff Workers
(Job Security First)
(2) Productivity Increase through Teamwork
& Cooperation Between Workers - Management
(3) Fair Distribution of Productivity Increase
Three (3) Guiding Principles for a Company to Increase Productivity
PROCLAIMED in 1955 when JAPAN STARTED PRODUCTIVITY MOVEMENT
(1) Should Not Layoff Workers (Job Security First)
(2) Productivity Increase through
Teamwork & Cooperation
Between Workers & Management
(3) Fair Distribution of Productivity Increase
This is a “SYSTEM or TOOL” to materialize the Second Principle
Labor-Management
Joint Consultation System
(LMJCS)
Labor - Management Joint Consultation System (LMJCS)
Collective L.M.J.C.S
Bargaining
Clash of Interest Common Interest
Labor Conditions Productivity Increase
Sharing FruitsEnlargement of Resources for Sharing
Character
Contents
Objective
19
• Key Factors of LMJCS
•(Management Side)
(1) Management should consider trade union as Social Partner(Stakeholder)
(2) Management has to disclose any information requested by trade union
20
• Key Factors of LMJCS
•(Trade Union Side)
(1) Trade Union should consider Management as Social Partner(Stakeholder)
(2) Trade Union has to understand management information or language.
(3) Trade Union should keep secrecy of
information disclosed by management
21
•Agenda of LMJCS) (1) Business strategy and plan
(management strategy, long-/medium-/short-term plan,
production plans, marketing & sales, etc.)
(2) Productivity results
(3) Basic plan of reorganization, such as merger, new plant, etc.
(4) Personnel management (career development, welfare policy, training, etc. )
Three (3) Guiding Principles for a Company to Increase Productivity
PROCLAIMED in 1955 when JAPAN STARTED PRODUCTIVITY MOVEMENT
(1) Should Not Layoff Workers (Job Security First)
(2) Productivity Increase through Teamwork
& Cooperation Between Workers - Management
(3) Fair Distribution of
Productivity Increase (PLWS)
23
(Japanese Productivity & Wage Curve) Productivity : Increase by Workers (Their Experience & Knowledge to improve Productivity)
Wage : (1) Seniority System (Increase according to length of service) (2) Life-style & Wage (Wage jump at age 30 & 40 ))
24
(Wage & Productivity)
Age 55 60
(-) 65
38
(-) + (+) +(-) = 0 Starting(Age 18 or 22 ) 30 Salary / Wage * Productivity
(-)
Age / Length of Service
(+)
100 - 1 = 99
Productivity & Quality
* Productivity & Quality are not trade-offs
* High Quality does not make our Goods/Services cost more