According to W. Edwards Deming, American companies require nothing less than a transformation of management style and of governmental relations with industry. In Out of the Crisis, originally published in 1982, Deming offers a theory of management based on his famous 14 Points for Management. Management's failure to plan for the future, he claims, brings about loss of market, which brings about loss of jobs. Management must be judged not only by the quarterly dividend, but by innovative plans to stay in business, protect investment, ensure future dividends, and provide more jobs through improved product and service. In simple, direct language, he explains the principles of management transformation and how to apply them.

Out of the Crisis

How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.

The knowledge-creating company : how Japanese companies create the dynamics of innovation

In 1974 an article appeared in Science magazine with the dry-sounding title “Judgment Under Uncertainty: Heuristics and Biases” by a pair of psychologists who were not well known outside their discipline of decision theory. In it Amos Tversky and Daniel Kahneman introduced the world to Prospect Theory, which mapped out how humans actually behave when faced with decisions about gains and losses, in contrast to how economists assumed that people behave. Prospect Theory turned Economics on its head by demonstrating through a series of ingenious experiments that people are much more concerned with losses than they are with gains, and that framing a choice from one perspective or the other will result in decisions that are exactly the opposite of each other, even if the outcomes are monetarily the same. Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of our brain’s wiring.

Thinking fast and slow.

How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

The knowledge-creating company

Economic Control of Quality of Manufactured Product.

In this second paper in a series of three, the aim is to develop a theoretical knowledge base for design science research (DSR) activity within the next paper. This is primarily a literature review based paper, inspired by the problems summarized in the first paper. The paper starts with a description and justification of the prototheory of design and design rhetoric. It has been argued that the design science has been concerned with the artefact rather as a technical than a social phenomenon. It is opportune to propose that the proto-theory of design and design rhetoric represent different, yet related dimensions of a productive act (techne). These concepts provide the necessary prescription for the root cause analysis of the problems addressed within the first paper and practical design and design management conceptualization within the third paper.

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Design management in a design office: Development of the knowledge base

It is generally acknowledged that good-quality design is a prerequisite for good quality and productive construction work. One proposed measure to improve the quality of construction has been contractors’ involvement in the design phase, and this phenomenon has been studied by several researchers. However, such approaches have not adequately addressed how this involvement affects the quality of the design. In this study, the aim was to study the effects of the early involvement of contactors on design quality based on evaluating the design quality factors. A case study was used to collect data and content analysis to analyze structural drawings and design meeting minutes of a large-scale infrastructure project. Particularly, the focus was on gathering information on the quality of the design and how it was addressed in the design coordination. We combined this quantitative data with qualitative open-ended thematic interviews, including respondents who led and coordinated the design on both the client and contractor sides. Our findings suggest that despite the vast amount of design changes, contractors’ involvement and development work in the detailed design phase improved design quality and constructability. Our findings also suggest that the contractor’s involvement during the schematic design phase had a design-enhancing effect in the detailed design phase. This study contributes to our understanding of contractors’ valuable role in design quality.

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Improving Design Quality by Contractor Involvement: An Empirical Study on Effects

For scaling renovation, there is a need for assessing the energy performance of buildings at the neighborhood level. Traditional methods for assessing individual buildings are manual and time-consuming – not sufficient to enable the neighborhood level assessment of the energy performance of buildings. Instead, new methods based on existing data in national registries and building typologies are required. The aim in this article is to develop for obtaining necessary initial building geometry information for energy performance calculations from the Estonian national Building Registry (EBR), including also Digital Twin (LOD) geometric models of buildings, and the quality and accuracy of this data is assessed. Altogether 417 representative buildings were used for qualitative and quantitative analysis. A sub-sample of 41 buildings were selected for more detailed analysis and development of methods. Two methods were developed to extract and enrich initial building geometry information for energy performance calculations: (a) the method combining the EBR and building reference data; and (b) the method combining the EBR and building typology data and LOD models of apartment buildings. The estimated accuracy of the first method (a) is around 98% and the second method (b) around 94%. Both methods underestimate the actual envelope area and thermal bridge lengths.

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Quality and accuracy of digital twin models for the neighbourhood level building energy performance calculations

While the form of building construction delivery known as Integrated Design-Build (or Integrated Project Delivery) is necessary for handling the complexity of modern projects, it raises up a host of problems due to the amount and variety of stakeholders that are brought together to co-design. Namely, the difficulty in forming a shared mental model of expectations regarding the project can cause disappointment in the results, as well as time and cost overruns. This paper is about creating an intervention to alleviate those issues. Employing knowledge from the field of rhetoric in design, and of mental models, two Integrated Design-Build workshops were analyzed to extract a set of rhetorical topics (topoi) to all such sessions. A design game was formulated around the empirical data by an iterative design process, following established design game theory. The game was found to indeed more than double the alignment of a group?s individual mental models, though more testing is needed to validate this.

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Ergo Pikas

Papers

Design management in a design office: Development of the knowledge base

Improving Design Quality by Contractor Involvement: An Empirical Study on Effects

Quality and accuracy of digital twin models for the neighbourhood level building energy performance calculations

Rhetorical design game for expectation alignment

Creation of digital twin models for renovation: an integrative literature review