Oiemon Economic studies,20 (1987）

The Business Administration Technique

　　　inInformation orientedsociety

Kenichi Murayama

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1｡Introduction

　　F. W. Taylor doveloped a theory of ScientificManagement that brid-

ged the get between Engineering and Economics. Nowadays industry has

achieved remarkable progress in high technology. This high technology

has a great effecton business administration. We can not consider present

management　technique　as being　separate　from　the　development　of

technology. There is　no　sharp　distinction　between management and

technology. This is the reason why l introduce a new theory of a higher

order that enconpasses management and technology. l temporarily give

the name technology management to　it. At first　l　want to　state the

relation between technology and management. Technology management

has two aspects.　One is　to　manage　technology.　Another　is　to　use

technology in management. The way to manage technology aims at the

development of technology. We eχamine the relationships of many kinds

of technology and　find a new　theory　of technology development. The

way to use　technology　in　management　aims　at　the　development　of

management.　We eχamine the adaptation of many kinds of technology

in management and find a new theory of management development. First

of allI'd like to discuss the way to use technology in management.

2. Factory Automation and divided consumer

　　Factory Automation　in Japan will develop to full automation　which

integrates former Factory　Automation （FA）, Office　Automation （OA）.

Laboratory Automation (LA）and Marketing　Automation （MA）etc‥

This development is needal to help many business administration techni-

ques.　　The　latest development of Factory Automation, which was made

by a new marketing technique, has brought　about　segmented　markets

and divided consumers, （the so－called BUNSHU, opposition to　masses.）

General Institute of Life in Hakuhodo Incorporated found that BUNSHU

was born as a result of the marketing. They got the　data　from　many

points of consumer observation and were quite sure of their conclusion.

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The Quality of　Japanese　goods　doesn't　differ　between　manufacturing

companies, because　Quality Control has reached a high level. Therefore

each company has made effortsto make a delicate difference in image

between their goods and other. Japanese goods became overproduction

and mature. The Japanese consumer selects goods according to delicate

differences　ofimage or quality. This consumer　behavior　is historically

rooted in the way of the tea ceremony, the so　called SADO. KONOML

the taste has been important in the tea ceremony. Individual taste is

valuable in the tea ceremory. SADO people pursue a special and profound

beauty, quiet refinement, tranquillity,namely the Japanese words YUGEN,

WABI, SABI.

3. FieχibleManufacturing System

　　In Japan the new the consumer looks for new varietiesof goods. That

is　because　the　Japanese　production　system　has　changed　from　mass

production to diversifiedproduction. Mass production brought continuous

production　and　simple　automatic　production　but　effective　diversified

production is difficult.So computers have been employed to help　the

production system. They are Numerical Control（NC）Machines.　　The

N. C. Machine is given the order tape of the manufacturing process and

condition. At firstcomparatively　easy　machines　were　automated, and

after that gradually automation spread widely.　Much manual works has

changed to robots for example in painting, welding, and assembly. These

robots are called playback robot.In　many　manufacturing　fields　many

robots were used, then many factories tried to integrate these automatic

machines.　　Thisis the FieχibleManufacturing System （FMS）.　FMS is

effectivein diversifiedmanufacturing. FMS is composed of NC machines,

Material handling Robots, Automatic warehouse, Machining Center with

automatic tool　changer. Automatically　materials are fed　to　machine,

transferred from machine to machine, installed to machine and　removed

from machine. FMS works all day all night, and needs almost no staff

but some-times men are needed to repair machines or toolsand sharper

edged tools. Recently unmanned factories have appeared in　Japan, for

example the Fanak Fuji Factory and the　Narasino Factory of Hitachi

manufacturing Co. These Factories are　not　completely automated, and

have a few　maintenance　workers　and　indirect workers. There　are 3

ways for completely automated plant.

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THE BUSINESS ADMINISTRATION TECHNIQUE　　IN INFORMATION ORIENTED SOCIETY

Firstis that the machine make to have intelligence.

Second is that management technique is computerized.

Third is that factorymake to unit with society.

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4. New Production System

　　A high intelligence machine should　have　a　computer　as　brain　and

sensor, as five sensors. Product design was computerized. It was called

Computer Aided Design （CAD）.　CAD not only designs effective products

but is also automatically helped by Group Technology （GT）.　Material

Requirement Planning （MRP）controls many kind of row materials and

parts　in　the　manufucturing　process　by　computer. There　are　many

production control technipues by computer. These management techni-

ques　reduce　the　number　of　control　workers. Accountant　and　office

workers are helped by Accounting　Automation（AA）and　Office　Auto-

mation （OA）.　The OKAMURA Manufacturing Co. fulfillsits accounting

work with only five clerks in spite of being a big　company. Recently

many factories tried to unite　FA, OA, AA. and　FMS for diversified

manufacturing and Computer Aided Manufacturing （CAM）are on the

way to unit FA, 0A etc‥TOYOTA Motor Corporation developed a New

Production　System （NPS）the　so　called　Kanban （signboard）system.

Most us plants aim for the longest, fastest run on parts, even though it

may mean increasing inventory carrying cost and Americans pay com-

paratively little attention to the time costs of tooling up. But the TOYOTA

plant has been　able to cut its parts inventory to one hour.　　The Kanban

system is a production system which coordinates parts arrival　with　the

production process and is called the Just in　time　inventory　in　Japan.

The companies that approved of the idea organized the New Production

System Group. They were growing up quickly and became the biggest

company in each industry, for examples Misawa house company Ltd. and

World apparel Co‥　In the Kanban System the back worker is in process

direct to the front worker. They make only what is necessery and don't

leave unsold goods. The World apparel Co. introduced FA and finished

diversified　manufacturing.　Conventional　apparel　makers　sold excess

supply cheeply, but NPS Group don't need such concern.

5. Value Added Network

　　Recently Value　Added　Network （VAN）became　popular in Japan.

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The Pharmacy Franchise Chain FHARMA organized VAN system with

around 600 stores. They got the statistics of the sales in each stores and

ascertained the best selling goods by computer net work. The Franchise

center is informed of the marketing data everyday. Because　of the data,

all stores could decrease their inventories and working capital. Needless

to say their sales doubled. In addition to they can pay smaller settlement

commission of bank in a lump sum by joint　signature　account. This

case　is an example from small business　but　in　big　business　VAN　has

flourished. Big retail Campanis have　almost a computer network system

their stores group. Specially　each　store　has　a　Point　of　Sales（POS）

system and they collect information of marketing by bar cord reader from

bar cord on the surface of the goods. Every day this data are collected

and relayed the center by computer network and processed by main com-

puter.　It gives information on best selling goods and the combination of

goods, the place in show case, the weather or other condition etc. .　The

consumer has a pattern of　buying behavior to　buy special combination

of goods in special place of showcase. These computer network system

makes clear the consumer buying behavior and helps increase store sales.

and make effective retail management. These information is　not only

useful in retail management but also in production management.

6. Simulation

　　Such information linked the production system and the sales system.

This totalsystem approached to anmanned　factory. Now　management

information became fullin enterprise and management decision making

attained a high level. Management information system developed from

operational　control　to　strategic　planning　and　structured　decision　to

unstructured decision refer to　Simon, but　automatic　decision　making

is hard　to　realize　in　the　unstructured　problem. It　has been caused

by difficultiesin predicting in the distant future. For this reason, the

Decision Support System （DSS）that　supports　decision　making of top

management by computer appeared. When top management makes a

decision they get management　information　by　computer　and　contract

speedy management policy with this information with　the　help　of the

computer can not make complete　policy. The　Final　decision　will　be

done by top management.　The computer collectsinformation from many

branches and factories,business o伍ces, makes a financialstatement, and

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THE BUSINESS ADMINISTRATION TECHNIQUE　　IN INFORMATION ORIENTED SOCIETY

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predicts future sales volume at each branch. If top management changes

the policy and the business environment changes, the computer makes a

speedy new future financial statement and management result statement.

There are many possibilities of environment.　We can not try all these

possibilities, but we can use a management simulation technique to find

the most suitable policy. The Management simulation technique has

developed as to various hypothesis regarding social policies.　It is hard

to simulate human psychology. So　by joining　many　player　we tried

movement of human mind. We called it Gaming Simulation. Since 1960

we have many business games and urban games. The Urban game can

simulate real society and can be used for making social policy. Recently,

home automation progressed to personal computer communication and two

way communication TV in Japan. l think that society will become united

organically; homes, stores, factories, banks　etc. by　computer　network

systems near future.

7. Technology Development

　　I'd like to discuss the neχt problem in technology management.

　　Taylor developed scientific management as a new theory.　It trans-

cended　economics and engineering. Now we are　beginning to　need　a

new theory which will transcend management and technology. Until now

technological development has been brought about by chance.　　But　we

have become able to control technology. Technology develops by combina-

tion of elementary technology. Each technology has　a　typical　pattern

of developing speed. We can　predict　something　of　new　technology.

Calculating speed of computer developed a constant trend. Many tech-

nological forecast techniques can　predict it. There are many technologi-

cal forecast techniques, i. e. regression　analysis, eχtrapolation　method,

Relevance tree method, inatriχ method, Delphi method, Scenario writing

method etc‥　The Calculating speed of computers developed in 4 steps,

i. e. relay system, vacuum tube system, transistor system, IC system. Thus

development speed was by geometrical progression. In　the future the

computer will develop by garum一arsenic element, Josefson elements etc..

One development depends on many other industries. It is called techno-

logy transmission, We must study this technology transmission. Even

now we can analyze technology transmission. Every technology has many

subtechnologies. If we want to develop our technology, we must utilise

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the subtechnologies related with our technology. There　are　some　key

technologies　which lay the　foundations　for　many　other technologies.

There is a difference among technology influenced with other technology.

When we want to develop one technology, we must choose　an effectual

sub technology to technological policy. In Japan the semiconductor　is

called the rice of industry, (Rice is the staple food in Japan.)The USA

takes semiconductors seriously and use it to play their best trump card.

However, the key technologies in semiconductor　production　are　clean

room technology and precision printing technology, QC　technique etc‥

They can't beat Japan with customs duty anly. Developing nations some

times introduced high technology in their industry. But if they　hadn't

had an appropriate subtechnology, the high technology couldn't eχhibited

its effect in their industry.　Korea　has　many　modern　industries, for

example steel, electrical　appliances, automobiles, shipbuilding　indutsry

etc･，but they must import many high technological　parts, for　eχample

miniature bearings, video cassette recorder heads, highly efficient engines,

robots etc‥　High technology also needs other conditions as well as sub-

technology, These are social conditions, cultural background etc..　In a

nation of cheep labor, manufacturing costs using robots are more eχpen-

sive than by ordinary machine. There is appropriate technology in each

nation. Educational condition and standardization consciousness are also

important. Precision industry needs precision material and correct motion.

High precision machine must be supplied with high precision materials,

otherwise this machine may be broken. In Japan the MITI has promoted

standardization. The MITI allows faetories which apply standardization

to put the JIS mark in their product.

8. Standardization

　　MITI requests many documents for standardization, for example

product standards, material standards, purchase standards, job instruc-

tions, machine maintenance perceptions, storehouse control regulations,

consumer　grievance　regulation, machinery　regulation, process　control

regulation, office　work　regulation, organization　regulation, training

regulation, etc.. Some　big　companies　made　a room-full of standards,

instructions, prescriptions, and regulations documents. Even small com-

panies must make a desk-full of documents. All employees must memorize

the part under their charge. The MITI　agent　visits　the　factory　and

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THE BUSINESS ADMINISTRATION TECHNIQUE　　IN INFORMATION ORIENTED SOCIETY

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inspects products and process. Even eχecutives are asked by the agent.

For introduction of one technology we must introduce many subtechno-

logies　and　many　management　techniques.　　Technologically　advanced

nations have tried to introduce this sort of technology to their industry.

They sometimes failed to introduce technology. There is a most appro-

priate method to introduce high technology. For that we must analyze the

relevance of each technology Management technique which has developed

from motion study　through　operations　research to　behavioral　science.

We have followed the direction of objects to study small action　to　large

action. Recently we study corporate identity and corporate culture. In

study of introduction of high technology we must be　interested　in　set

technology.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　(ReceivedDec. 25, 1987)

　　　　　　　　　　　　　　　　　　　　　Reference

［l］Wakita Hirowaki and Hitomi Katsuhito, FA and OA, Nikkan kogyo shinbunsha（Business

　　　& Technology Press）,1983.

［2］News reporter group of Business & Technology Press,New age of FA ； Nikkan kogyo

　　　shinbunsha （Business & Technology Press）1983.

［3］Nikke， mechanical, Robot revolution；Nihon Keizai Shinbun Inc.. 1981.

［4］General Instituteof Life in Hakuhodo Incorporated, The age of BUNSHU, 1983.

［5］Hirabayashi Chiharu, χへ/adaJin and Matsuishi Izumi, Marketing Automation ；Nihon Noritsu

　　　Kyokai, 1986.

［6］Distribution System Development Center, The front of DistributionInformation System,

　　　Businss Inc., 1986.

［7］Ono Taiichi,Toyota Production System, Diamond Inc. 1987.

［8］Fukuda Ruji and Kimura Yukinobu, StocklessProduction, Nikkan Kogyo Shinbunsha, 1986.

［9］Sato Kimihisa, New Production System（challenge of Manufacturing Automation Prosoca）,

　　　Diamond Inc., 1987.

［10］Karatsu Hajime, Challenge of Big Manufacturing Nation Nippon, Jitsngyo no Nihon sha,

　　　1988.

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