TOCICO 2004 Conference Template - openPM

© 2007 TOCICO. All rights reserved. 

TOCICO 2007 Conference 

TOCICO CONFERENCE 2007 

Creating a Public Works 

Revolution In Japan 

Presented By: David Updegrove & Yuji Kishira 

Date: Tuesday, November 6, 2007 

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TOC in Japan, 2000 

• 

• 

• 

• 

• 

• 

First trip to Japan in April 

2000 

Fortunate to have many 

high-level meetings 

Scant knowledge of TOC, 

almost exclusively DBR 

Implementations extremely rare 

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Epson LCD Division CEO: “We know we need TOC” 

Fertile ground for all TOC applications, but first…

Cultural Issues 

• 

• 

• 

• 

• 

• 

Japan is a consensus society 

Not top-down 

Business is built on relationships 

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Business relationships are established through 

cooperation and trust 

Western companies who ignore this are at a 

disadvantage 

Focus on building relationships

Kaizen 

• 

• 

• 

• 

• 

Kaizen means “improvement” 

4 



It is an active verb, something you do -- not a noun, 

something you implement 

Toyota Production System is a philosophy, not a 

methodology 

TPS and Japanese business in general, are open- 

minded to any kind of improvement 

Case studies and reports in publications such as 

Nikkei Business are very influential

TOC in Japan, 2003 

• 

• 

• 

• 

• 

Growing, but still almost exclusively DBR 

− 

− 

Every major company expressing interest in TOC 

Other Western consultants interested in Japan 

5 



Introduced to Satoru Murakami of Goal System 

Consultants, Inc. Hitachi Tool great success 

Invited for three-day seminar on TOC applications 

Introduced to Yuji Kishira (catalytic event!) 

A revolution is born!

Two dilemmas 

• 

• 

Mr. Kishira’s dilemma as newly hired COO 

− Market saturation of flagship product 

− Government spending cut by half 

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− Small and medium sized companies struggling 

to survive 

Japan’s public works construction dilemma 

− Spiraling costs 

− Unhappy public 

− Late projects cost lives

Continuing natural disasters 

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TOCICO 2007 Conference

Thinking Process Training 

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Kishira’s Kishira s PRT 

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Kishira’s PRT 



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Kishira’s PRT 



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PRT – Top Level Objective 

More and more customers 

adopting CCPM, continuously 

making profit and Being is 

successful in recovering 

construction economy 

And so begins the journey… 

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Critical Chain Training 

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Continually moving forward 

• 

• 

• 

• 

• 

• 

Critical Chain successfully implemented for 

software development at Being 

Productivity increases by 400% 

Mr. Kishira diligently pursues his PRT 

14 



Afinitus, GSC and Being are allies to continually 

increase knowledge of TOC in Japan 

Afinitus is honored to be playing a part 

和 

But there is another dimension…

Win-Win Win Win-Win Win Public Works Reform 

COO Being Corporation 

Director of Japan TOC Advancement committee 

Yuji Kishira 

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Criticisms of public works 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

民間投資額(兆円) 

政府投資額(兆円) 

Huddle 

Many 

Scandals 

(origin)The Ministry of Land, Infrastructure and Transport "Construction investment prospect" 

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Waste of 

Tax 

51 52 53 54 55 56 57 58 59 60 61 62 63 元 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Some industry UDEs 

Too much extra work without payment 

Requesting extra fee but no payment 

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Different opinions between Government officials and local 

residents stop the construction. 

Timing of contract is too late to finish the construction by due 

date. Why Government places order in winter? Why not spring 

when weather is much more good for construction?

TOC is natural in Japan 

1.ODSC “SURIAWASE” 

→Consensus making to have shared goals 

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2. Backward scheduling “DANDORI HACHIBU” 

→Preparation is 80% of the success of the project 

3.ABP(Aggressive But Possible) “YUTORI” 

→Educate people while providing concentration 

4.Buffer Management “SENTE KANRI” 

→Take action before too late 

CCPM reminds us Japanese shop floor best practices LOGICALLY

First Critical Chain Implementation 

Three Young Samurai foreman 

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Test Run Project Results 

30% Reduction project duration 

“Endo certainly made great profits in this test project, 

but far more important is his growth. Endo definitely 

Changed. He became 3month a really Early dependable Cash Flow foreman. 

The Tonebetsu River project is already project in the past 

which Sharing achieved Know-how a great result. with young foreman 

For Endo, the real challenge is to see achievement in 

the next project given. (I believe he will make it.) 

The best Foremen outcome of participation the Tonebetsu to River Managment project is that 

Endo became one of our best foreman, which is aided 

by 

Collaboration 

BeingManagement-CCPM. 

acceleration with subcontractors 

We can expect more profits from Endo’s projects now and 

in the future, which is far more important of this single 

project success. That is because Endo has overcome a 

barrier. It’s really amazing.” 

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WA accelerated throughout the company 

思いやり:Help each other 

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Can we help RED project? 

I will finish my project early 

and help RED project. 

We will also help it! 

We will offer our resource to 

Help RED project 

Each project manager starts to care the other projects 

with management view!

“WA WA” expanded to the Government 

It is late because 

of me ? 

Showing buffer is the Source of teamwork 

和 

22 



CRT created by Government officials 

Slow finalization 

of Spec 

Information does not 

transfer to contractors 

timely manner 

Synchronization 

information 

DAI MONDAI ! 

Resource shortage 

Or Excess resource 

Sudden works 

required 

One Day Response project! 

Construction economy report No.46 Quotation from P104 in April, 2006 

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Cost 

increase

Public works wiill 

provide good quality infractruture while 

supporting government financial 

difficulty turnaround 

Make Tax payers 

/resident 

happy 

Win 

Tax income 

increase 

Realize economic 

effect ealier 

Public works finish 

earlier 

Have more 

advantage in the 

government bit 

Contractors can 

choose the bit 

Win 

One Day Response project 

Contractors can be chosen 

by quality history, proposals 

and cost 

Contractors get 

higher quality 

record 

Contractors make 

profit 

Implement 

One Day Response 

Project 

Quality of public 

work law 

implementation 

Contractors have 

effective information 

during constructions 

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Contractor can 

Make a effective 

proposals 

Contractors are 

happy 


Contractor can 

Make quicker 

decision 

Contractor management 

understand status 

Government 

supervisors get more 

flexible for change 


Win 

Enhance competancy 

of government 

supervisors 

Government 

supervisors are 

more motivated

･Construction finishes earlier 

･Teamwork with contractors/officers 

･Residents are very pleased 

･Quality enhancement 

･Bright future for construction business 

Construction 

is not certain. 

We need 

hidden safety 

Contractors Public Office 

Showing 

safety 

creates 

mutual 

trust 

Win 

･Gratitude for construction ending early 

･The inconvenience of construction finishes early 

･It becomes convenient 

･Good teamwork of contractors/offices causes drastic 

image change of public works 

･Impact to natural environment is surely reduced, too 

A bureaucracy 

Is always slow 

Residents 

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Learn by 

experience of 

their own 

Win Win 


･Easy to guide because it consults 

ahead of time. 

･Overtime work decreases 

･The royal road of OJT 

･Officer's role in public works reminded 

･Human resource development 

Quick action 

creates trust 

Quick response 

Educate people 

quickly

Unexpected synergy effect 

One Day 

Response 

Project 

Public Office 

Trust 

和 

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Contractor 

Return to the origin of public works 


TOC 

Critical chain 

Sharing buffer : the source of teamwork.

Kishira's 3C Management Positioning Map 

Control 

Head QTR control 

project 

Job description 

Management 

By developing 

Manual people 

Superficial 

Report 

Distrust 

Manuals 

Rules 

Command & Control 

Easy 

Do it! 

Forced 

to do it 

Complex 

report 

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Communication & Collaboration 

Discussion 

In front of white 

board 

Project manager 

Manages project 

Fulfillment 

Complex 

Trust 

Commitment 

Make profit with 

Teamwork 

Report simple 

Remaining date 

Management by 

Developing Human 

Resource 

Communication

2007 May 8 Win-Win Win Win-Win Win Public Works Conference 

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“We strongly remind ourselves of our very important responsibility in public 

works to secure people’s safety and national land safety. To realize the maximum 

benefit for society, both government officials and contractors must work together 

by providing better products with increased speed. This brings benefits to all 

residents, to government and to contractors and contributes to overcoming the 

financial difficulties of the Japanese Government. We declare herewith we strongly 

advance Win-Win-Win Public Work Reform.”

TOC and “WA WA” – Perfect union 

Spirit of “WA” 

和 

Respect harmony . 

The first charter of Japan first constitution 

AD604 (Shotokutaishi) 

Win-Win-Win 

Good for customers, Us and Public 

(Omi business principle ) 

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#1 Business Book in Japan! 

Special thanks to Dr. Goldratt for 

his warm appreciation and credit 

to my work 

30 



WOW 

Amazon No.1

Only The Beginning! 

Win-Win-Win Public Reform Symbol 

Now Everywhere In Japan 

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kishira@beingcorp.co.jp 


This is just a beginning to make a our world little better by TOC 

DOMO ARIGATO GOZAIMASU!

“WA WA” and the West 

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In the West, TOC and WA are compatible in the micro: 

And in the macro: 

Satisfied 

customers 

Make money 

now and in 

the future 

Secure and 

satisfied 

employees 

• North American Public Works Construction Industry 

• Other industries

About Dave Updegrove 

Dave Updegrove spent 20 years at the 

Boeing Company as a senior industrial 

engineer. In 1986 he implemented DBR at 

Boeing Microelectronics with great success, 

and followed this with other successful 

implementations, becoming an internal TOC 

consultant and educator. In February 2000 

he left Boeing to become a TOC consultant 

at a financial software company, and in 2001 

became an independent consultant. Among 

his many implementations is the well-known 

U.S. Marine Corps Maintenance Center in 

Albany, Georgia. Dave formed Afinitus 

Group, LLC in 2004 with a group of likeminded 

consultants. He began traveling to 

Japan regularly in 2000 to promote TOC, and 

in 2007 joined the Board of Directors of Goal 

System Consultants, Inc. of Tokyo. 

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About Yuji Kishira 

Yuji Kishira spent 19 years in key 

management positions at Kyocera 

Corporation in Japan. He was a project 

leader for many important Kyocera 

projects, including various business unit 

turn-arounds. In 2003, he became Chief 

Operating Officer at Being Corporation, 

a software company with a flagship 

product serving the Japanese Public 

Works Construction industry. He 

implemented Critical Chain for Being’s 

software development, with productivity 

increasing by 400%. Yuji is a gifted 

writer and speaker and spends much of 

his time working with the Japanese 

construction industry and Japanese 

government. He is also a director of the 

Japan TOC Advancement Committee. 

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