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Targets Series #3 : Bando example of bottom-up
approach to deploy targets
Here‟s a live case that I read from The TQM Magazine, Volume10, Number 6, 1998 by Yoshio Kondo. I
liked it and thought it is very apt and also interesting to read.
“Bando Chemical Company, for a long time had been implementing the top-down type of planning, in
which production was carried out in accordance with targets set by the factory manager. In the first 2
weeks of the month, there used to be sag in production but there used to a catch-up in the last leg.
After much investigation and deliberation, this factory decided to change its system for setting the monthly
production quotas. Under the new system, the factory manager would first propose the draft monthly
production target and explain carefully why it was necessary to achieve that target. The proposal would
then be thoroughly discussed by the people in the workplace. When this system was first implemented
and the individual values determined as a result of the discussion were collated, the final value turned out
to be a little less than that originally proposed by the factory manager.”
When such situations we often try thrust higher targets on people in order to meet the originally proposed
value. Though we start our with a bottom-down approach we end up with top-down. To an employee, it
looks like an eye-wash.
“This factory took a different approach. It was decided to trust their commitment and enthusiasm and
leave the total arrived at as the official monthly production target.
A curious thing happened when the setting of targets was changed from top-down to bottom-up in this
way. The sag in the monthly cumulative total production graph occurring at the beginning and middle of
the month disappeared, and the production proceeded more or less in ac