Pamantasan ng Lunsod ng Maynila

Submitted to:
Prof. Carlos Sison
Production Operation Management II

Submitted by:
Ronaliza M. Dimapilis
BBM-MBA

Best Practices in Product Management
Product management is an important role within any company, especially in a startup where the product is still evolving. Part cat herder, part strategist, and part analyst, if one thing is certain about a Product Manager, it’s that they need to constantly be on their toes and ready to rally a team behind a decision.
The challenge of a Product Manager is to provide a solution to our consumers — one which can be translated into product requirements that are actionable for developers and designers.
One of the greatest challenges also of a product manager is not only to give solutions to your customer needs & wants but also to give a highly sustainable and profitable Product to your organization or company.
When I started my career as a product manager 3 years ago, things are quite different from what they are decades ago. Lucky we, that there were a lot of books or training courses, there were a lot of associations, blogs, or newsletter that are readily available and easy to access because of internets and social media. That could help us and gain some insights about product management. Let me share to you what I have learned about the best practices of product management from the book of “ 42 Rules of product management” written by Brian Lawley and Greg Cohen of 280 Group press. 1. Rules are meant to be broken. As the great Dalai Lama said “ Learn the rules so you know how to break them properly”. The best product managers I have know are independent people who are passionate about their products and have deep convection about how to make them succeed. Sometimes this means bending the rules, disregarding convention wisdom. This is important for progress. We must look at things in new way, challenges the status quo in creating an innovation product that deliver significant values to our customer. Example of these is when HENRY FORD creates the automobiles in 1908. It was the first “affordable” automobile. Another one is when FREDERICK SMITH of FedEx guaranteed the overnight delivery of goods or packages. 2. Works on the Products that you are passionate about. So why passion is so important? Even in the best of product management jobs there are always going to be some very difficult challenges. If you are working on something that you don’t care deeply about you simply won’t have the tenacity and persistence to do what needs to be done in order for the product to succeed. This drive to succeed has to come within. 3. Beware the “Requirements death spiral”. It is the PM responsibility to identify customer problems worth solving. It is engineering’s role to identify technical solutions to those problems. Together both sides should be collaborating to create the optimal design that will solve the problem. Ultimately, the PM is accountable for the product success. Product managers, therefore, must be vigilant to avoid entering the dead spiral. The easiest way to do this is to focus on the problem space and encourage engineering to apply their creative energies to the solution space. PM and the engineering are on the same team and share the same objectives of creating value for the customer. So as a product manager this must reflect to you this truth. 4. Think like and Entrepreneur. To think like a product manager requires thinking like an entrepreneur. 5. Learn to say “NO” to Customers. Saying no lets product managers focus on delivering superior products rather the ones that are merely sufficient. 6. Product Management is Inherently Political. Allocating resourcesalways leaves some people dissatisfied and drives them to escalate complaints or question the decision-making process. 7. There is a Fine Line between Knowing It all and being a A Know-It-All. Refrain from being the know-it-all, instead be someone that all know, they can follow, learn from, and ultimately trust to lead product toward success. 8. Market Research Must be Actionable. Good market research answers one or more questions that helps you understand your customers….in a way that you can take confident actions towards your goal. 9. The Two-Week Rule. Never go more than two weeks without putting your product ideas in front of real users and customers. 10. Market Needs, Not Individual Request. Good product managers listen to their customers, but merely important they also listen to the market. 11. No Surprises. Be clear on what you do and don’t do with everyone, and evangelize this. If they don’t have a good understanding of how you view your job and priorities, they may have expectation that are very out of line and it can cause bad surprises. 12. Be Data-Driven by the Costumers of your Product. In short- you are not the customer, but you are the distilled collective voice of all of the customers. 13. 90-360-3. The 90-360-90 framework is design to gain critical insights, visibility, and measurable objectives. 14. Creativity Opens Up More Possibilities. Mind mapping aids the process of fundamentally shifting the way you view the issue at hand. 15. Get Your Hands Dirty. People can practice theoretically product management are a dime frozen. Those who shine are the ones who have that “aha” moment. 16. Get out of the Office. There is no other way but to simply go spend time with the customers. Through this you can watch, listen, observe on how they process and take time to decide on what product to choose. 17. You do NNOT Own your Product. The difference between leading your product team and owning every aspect of every detail in your product is your level of insanity. Collaboration to your team and other departments make your decision easier. 18. Crave Out “Think” Time. Product managers- crave out some “think” time in your busy day to be more productive and to deliver better results. 19. Get the Market Segmentation Right. Is the key contributor to your success or failure. This is particularly difficult when trying to address and emerging market. Look at the market carefully. Talk to prospective customer. Find groupings that match common needs, characteristic and behavior. 20. Clarify Product Positioning. The positioning statement provides the first decision filter because it defines what you are, and any idea either needs to reinforce that identity or move down a path define by your vision. 21. Defines and Align Your Roles and Responsibility. 22. Write it down. Recording is one of the artistic act of a product managers. 23. Make sure you have clear priorities. 24. Salespeople Don’t just Want to Make Lots of Money. Helping salespeople win is a primary role of a product management team. 25. Create a Culture of Openness. It is not the land mine you know about that will kill you; it’s the one that you don’t know about. 26. Align your product Strategy with the Company Strategy- Then Sell It. 27. Short, Standardized Cycle Times Drives Predictability. 28. Find Market Problem Worth Solving. 29. A Business is not a Democracy. 30. Agility is the Key to product management success. 31. Tap into your Customer 32. Determine Your Marketing approach early and wisely. 33. Let the customer end the debate. 34. Differentiation isn’t enough, you have to be Better. 35. Act like a Child. Don’t be ashamed to ask WHY. 36. Decide what you are going to Do and Not Do. Companies must also be clear about what business and market segments they are not going to support. Because every company has limited resources. 37. Trust and Leadership through good relationship. 38. Great Execution Trumps a Great Product Idea. 39. Be all you can be. 40. I can see clearly now: The power of Transparency. 41. Always be Learning. 42. These are our Rules. What are yours? As we look advance our product, we must be aware of the larger picture and environment in which we work.

The Industrial Evolution of Packaging
Packaging has grown greatly in response to commercial demand. Originally intended to protect products it is today much more elaborate and developed than at any other time in history. Today we have advanced transportation and distribution methods. We rely on packaging to bring goods safely from 'A to B', their point of manufacture to where they are put on display and sold. Primarily a package is supposed to contain and protect a product through the transportation process and its shelf life. Packaging can also function as an advertisement or even a part of the product as well.
The roots of packaging can be traced back to the eighteenth century when the industrial revolution brought massive changes to the manufacturing industry. The introduction of mass production brought large quantities of products on to production lines. Soon, along came the invention of the 'tin can'. Tins were used for containing perishable goods such as biscuits and confectionary or where a greater level of protection was needed. Cardboard containers provided lightweight packages that could be printed on and flat packed until required saving space.
By the turn of the century manufacturing techniques had changed so much to the degree of manufacturers being able to produce containers in any shape, size and material. Therefore the birth of novelty packaging took place something that is so widespread today. Printing techniques flourished in the early nineteenth century and was forced to expand their range of techniques to keep up with advances in packaging.
Manufacturers were keen to have their brand image displayed on the container whether it is glass, cardboard or metal. This would give special interest to otherwise bland designs. Having graphics on a product also meant it could display a far greater degree of product information. This in turn reduced the need for informed shop staff to direct customers.
Technology Innovation
Technology Innovation Improving The Lives Of The Everyday Worker? Jobcase launched in April 2015 as an online community built around work issues. Founded and led by Fred Goff, a Carnegie Mellon and MIT graduate with 20 years of experience in financial services, Jobcase has elements of LinkedIn as members can post work experience and recommendations. It also has elements of Glassdoor as members can share feedback on employers. The innovation is that Jobcase is targeted at people with non-traditional work backgrounds – workers without degrees, on-rampers with employment gaps, and contractors, freelancers and other project-based workers. Another innovation is that the employer feedback gets down to the store-by-store level – i.e., not just what it’s like to work at McDonald’s, but what it’s like to work at the McDonald’s at XYZ address. Though it already boasts ~60,000 daily users, it is too early to measure Jobcase’s impact. But with LinkedIn catering to white collar, management-track careers, Jobcase is an interesting alternative to bring the advantages of networking, community, and online branding for other types of careers.

Innovation on Automation

Automation or automatic control, is the use of various control systems for operating equipment such as machinery, processes in factories, boilers and heat treating ovens, switching on telephone networks, steering and stabilization of ships, aircraft and other applications with minimal or reduced human intervention. Some processes have been completely automated.

The biggest benefit of automation is that it saves labor, however, it is also used to save energy and materials and to improve quality, accuracy and precision.

The term automation, inspired by the earlier word automatic (coming from automaton), was not widely used before 1947, when General Motors established the automation department. It was during this time that industry was rapidly adopting feedback controllers, which were introduced in the 1930s.

Automation has been achieved by various means including mechanical, hydraulic, pneumatic, electrical, electronic devices and computers, usually in combination. Complicated systems, such as modern factories, airplanes and ships typically use all these combined techniques.

Because of the relatively small production volumes and huge varieties of applications, industrial automation typically utilizes new technologies developed in other markets. Automation companies tend to customize products for specific applications and requirements. So the innovation comes from targeted applications, rather than any hot, new technology.

Over the past few decades, some innovations have indeed given industrial automation new surges of growth: The programmable logic controller (PLC) – developed by Dick Morley and others – was designed to replace relay-logic; it generated growth in applications where custom logic was difficult to implement and change. The PLC was a lot more reliable than relay-contacts, and much easier to program and reprogram. Growth was rapid in automobile test-installations, which had to be re-programmed often for new car models. The PLC has had a long and productive life – some three decades – and (understandably) has now become a commodity.

At about the same time that the PLC was developed, another surge of innovation came through the use of computers for control systems. Mini-computers replaced large central mainframes in central control rooms, and gave rise to "distributed" control systems (DCS), pioneered by Honeywell with its TDC 2000. But, these were not really "distributed" because they were still relatively large clumps of computer hardware and cabinets filled with I/O connections.

The arrival of the PC brought low-cost PC-based hardware and software, which provided DCS functionality with significantly reduced cost and complexity. There was no fundamental technology innovation here—rather, these were innovative extensions of technology developed for other mass markets, modified and adapted for industrial automation requirements.

On the sensor side were indeed some significant innovations and developments which generated good growth for specific companies. With better specifications and good marketing, Rosemount's differential pressure flow-sensor quickly displaced lesser products. And there were a host of other smaller technology developments that caused pockets of growth for some companies. But few grew beyond a few hundred million dollars in annual revenue.

Automation software has had its day, and can't go much further. No "inflection point" here. In the future, software will embed within products and systems, with no major independent innovation on the horizon. The plethora of manufacturing software solutions and services will yield significant results, but all as part of other systems.

So, in general, innovation and technology can and will reestablish growth in industrial automation. But, there won't be any technology innovations that will generate the next Cisco or Apple or Microsoft.

We cannot figure out future trends merely by extending past trends; it’s like trying to drive by looking only at a rear-view mirror. The automation industry does NOT extrapolate to smaller and cheaper PLCs, DCSs, and supervisory control and data acquisition systems; those functions will simply be embedded in hardware and software. Instead, future growth will come from totally new directions.

New technology directions

Industrial automation can and will generate explosive growth with technology related to new inflection points: nanotechnology and nanoscale assembly systems; MEMS and nanotech sensors (tiny, low-power, low-cost sensors) which can measure everything and anything; and the pervasive Internet, machine to machine (M2M) networking.

Real-time systems will give way to complex adaptive systems and multi-processing. The future belongs to nanotech, wireless everything, and complex adaptive systems.

Major new software applications will be in wireless sensors and distributed peer-to-peer networks – tiny operating systems in wireless sensor nodes, and the software that allows nodes to communicate with each other as a larger complex adaptive system. That is the wave of the future.

The fully-automated factory

Automated factories and processes are too expensive to be rebuilt for every modification and design change – so they have to be highly configurable and flexible. To successfully reconfigure an entire production line or process requires direct access to most of its control elements – switches, valves, motors and drives – down to a fine level of detail.

The vision of fully automated factories has already existed for some time now: customers order online, with electronic transactions that negotiate batch size (in some cases as low as one), price, size and color; intelligent robots and sophisticated machines smoothly and rapidly fabricate a variety of customized products on demand.

The promise of remote-controlled automation is finally making headway in manufacturing settings and maintenance applications. The decades-old machine-based vision of automation – powerful super-robots without people to tend them – underestimated the importance of communications. But today, this is purely a matter of networked intelligence which is now well developed and widely available.

Communications support of a very high order is now available for automated processes: lots of sensors, very fast networks, quality diagnostic software and flexible interfaces – all with high levels of reliability and pervasive access to hierarchical diagnosis and error-correction advisories through centralized operations.

The large, centralized production plant is a thing of the past. The factory of the future will be small, movable (to where the resources are, and where the customers are). For example, there is really no need to transport raw materials long distances to a plant, for processing, and then transport the resulting product long distances to the consumer. In the old days, this was done because of the localized know-how and investments in equipment, technology and personnel. Today, those things are available globally.

Hard truths about globalization

The assumption has always been that the US and other industrialized nations will keep leading in knowledge-intensive industries while developing nations focus on lower skills and lower labor costs. That's now changed. The impact of the wholesale entry of 2.5 billion people (China and India) into the global economy will bring big new challenges and amazing opportunities.

Beyond just labor, many businesses (including major automation companies) are also outsourcing knowledge work such as design and engineering services. This trend has already become significant, causing joblessness not only for manufacturing labor, but also for traditionally high-paying engineering positions.

Innovation is the true source of value, and that is in danger of being dissipated – sacrificed to a short-term search for profit, the capitalistic quarterly profits syndrome. Countries like Japan and Germany will tend to benefit from their longer-term business perspectives. But, significant competition is coming from many rapidly developing countries with expanding technology prowess. So, marketing speed and business agility will be offsetting advantages.

The winning differences

In a global market, there are three keys that constitute the winning edge:

Proprietary products: developed quickly and inexpensively (and perhaps globally), with a continuous stream of upgrade and adaptation to maintain leadership.

High-value-added products: proprietary products and knowledge offered through effective global service providers, tailored to specific customer needs.

Global yet local services: the special needs and custom requirements of remote customers must be handled locally, giving them the feeling of partnership and proximity.

To implementing these directions demands management and leadership abilities that are different from old, financially-driven models. In the global economy, automation companies have little choice – they must find more ways and means to expand globally. To do this they need to minimize domination of central corporate cultures, and maximize responsiveness to local customer needs. Multi-cultural countries, like the U.S., will have significant advantages in these important business aspects.

In the new and different business environment of the 21st century, the companies that can adapt, innovate and utilize global resources will generate significant growth and success.

Product innovation

Product innovation is the creation and subsequent introduction of a good or service that is either new, or an improved version of previous goods or services. This is broader than the normally accepted definition of innovation that includes the invention of new products which, in this context, are still considered innovative. the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products.

Numerous examples of product innovation include introducing new products, enhanced quality and improving its overall performance. Product innovation, alongside cost-cutting innovation and process innovation, are three different classifications of innovation which aim to develop a company's production methods.

Thus product innovation can be divided into two categories of innovation: radical innovation which aims at developing a new product, and incremental innovation which aims at improving existing products.

Best practices in Human Management

Human resources best practices are functional activities and strategic plans that enable improved services to employees and increased profitability for the employer. The term "best practices" references actions that are successful methods for desired results. In the human resources field, several best practices exist in every discipline. Yet recruitment and selection, employee relations and compensation and benefits are disciplines where best practices in human resources may reap the best return on investment.

Employer of Choice

The first point of contact for applicants, potential candidates and prospective employees is HR's recruitment and selection area. Therefore, making a good impression on job seekers is essential if you want to become an employer of choice, or a place where people want to work. Best practices for recruitment and selection include streamlining the hiring process through tools such as applicant tracking systems and communicating with applicants and candidates about the selection process. Best practices like these prevent a company from earning a reputation for keeping job seekers in the dark, unaware of their status in the hiring process.

Equal Opportunity

Best practices also include holding recruiters accountable for engaging in fair employment practices that treat applicants equally within regard to non-job-related factors such as age, sex, race, national origin and religions, and instead focusing solely on experience, expertise and qualifications in decisions about narrowing the field of viable candidates.

Employee Retention

Employee compensation and benefits may be the most important area for best practices. According to data published in February 2010 by outsource provider and consulting company Ceridian, companies spent just over one-third of their total budget on human resources. Almost 70 percent of that amount is for salaries, and a little less than 30 percent is allotted to benefits. Being an employer of choice doesn't mean your company pays the highest wages or that it offers the trendiest benefits, though. Best practices in compensation requires understanding the value of jobs and their worth in the labor market. Additionally, offering retention-focused benefits packages are among best practices in human resources. Attention to best practices in your organization's compensation and benefits structure improves job satisfaction, morale and employee retention, all of which have a positive effect on your company's bottom line.

Performance Management

Of all the HR disciplines, the employee relations discipline has the broadest reach. Human resources leaders generally have a common goal--to strengthen the employer-employee relationship. An effective way to strengthen the relationship is through a well-constructed performance management system. Employees need feedback. They need to understand their employers' expectations, and employers have an obligation to provide employees with the tools necessary to achieve high performance. Within the context of HR best practices, performance management comprises job descriptions, performance standards, continuous feedback from supervisors and regularly scheduled performance appraisals. Employers who overlook the importance of feedback may experience high turnover and overall dissatisfaction among employees. On the other hand, employers who engage in best practices demonstrate their commitment to helping employees achieve excellence, and they rank high on the list of top companies to work for. They are capable of maintaining a fully engaged work force that maximizes the company's productivity and, ultimately, the company's profitability and success.

Effect of ASEAN Integration in Philippine Employment

There are many regional agreements in Asia-Pacific that impact on regional economic integration and trade policies. One of these agreements centered on the integration of ASEAN economies in Southeast Asia composed of the ten countries of Singapore, Malaysia, Thailand, Indonesia, Philippines, Brunei, Cambodia, Laos, Myanmar (Burma), and Vietnam.

The project for Asean Integration has been around since 2000, when the Asean Heads of State Summit in Singapore launched the program called the Initiative for Asean Integration (IAI) with the objectives of “narrowing the development gap” between the original members of Asean and its newer members. The original members, sometimes called the Asean 6, are composed of Singapore, Malaysia, Thailand, Indonesia, Philippines and Brunei. The newer members, the Asean 4, are composed of the CLMV countries – Cambodia, Laos, Myanmar, and Vietnam.

The Asean Integration specifically aims to integrate the “transitional economies” of the CLMV countries which are just recently being assimilated into the global capitalist economy led by the early members of Asean in the region.

The Asean Integration aims to develop an Asean Economic Community, patterned after the European Economic Community, which later evolved into the European Union. The aim is to establish a single market and probably a single trading currency in the region by 2020.

Problems of integration

1. However, the intra-Asean trade is currently at very low level. It constitutes only about 25% of total trade in goods of the Asean countries, and it is not expected to change dramatically in the near future. For many years, the Asean countries have been trading more with non-Asean countries compared to trading among themselves by a ratio of three to one. Comparatively, the European Union has an intra-trade level of 67.3% while the North American Free Trade Association (NAFTA) has a record of 48.7% intra-trading.

2. There are other stumbling blocks to the integration. There are the three major factors of (a) investment capital; (b) technology; and (c) industrial complementation. The first one, investment capital, is miniscule among Asean countries. Investments can come from the big economic/trading players in the region (China, EU, Japan, US, and South Korea). Technology is also not very high among Asean countries, and technology transfer will require massive investment by the developed capitalist economy to Asean. The third factor, industrial complementation, is something that has yet to be developed even among Asean countries themselves. In fact, the Asean economies have been competing with each other.

3. In this sense, the Asean Integration is definitely far off from the dream of an Asean Community and Asean Union whose objective is to develop an independent regional economy that can compete in the international market and survive international competition. The Asean integration has since then lowered its objective to establishing an integrated regional production base that will cater for the international market.

Integrating the transitional economies

1. Right now, the Asean Integration is aimed at integrating the ‘transitional economies’ of the CLMV or the new Asean members to be able to form an integrated production base in the region. There is really no need to integrate the economies of the Asean 6, as they have long been under the global capitalist system and their economies have long been restructured to meet the needs of the global market under a neo-liberal scheme.

2. What needs to be integrated are the former socialist or socialist-oriented economies of the CLMV countries. Among the CLMV, Vietnam was the first country to join the Asean in 1995. Laos and Myanmar joined two years later in 1997. Cambodia joined in 1998 following the stabilization of its government.

3. The CLMV countries are just emerging from previous socialist-oriented economies into capitalist mode. There are different levels in which they are restructuring their economies to fit within the global economic market. Privatization of land and other economic assets, opening to foreign investments, dismantling of state-owned and state-run enterprises, and reducing social welfare projects and government subsidies are happening at different levels to accommodate the capitalist model.

4. It is no wonder that the Asean Integration is not only among Asean countries, but involves – formally – the so-called Asean Dialogue Partners (or donor countries) including China, India, Japan, Korea, Australia and New Zealand. These countries (especially the first four) represent the most advanced capitalist and market economies in the region.

Initiative for Asean Integration (IAI)

1. In 2000, the Asean Heads of State Summit in Singapore launched the Initiative for Asean Integration (IAI) with the objectives of Narrowing the Development Gap (NDG) and accelerating economic integration of the newer members of Asean. The intent is to integrate these “transitional or emerging economies” to the capitalist economies of neighboring countries in Southeast Asia. Their integration into the global capitalist system will be based on a capitalist restructuring scheme that has been implemented in these countries since the 1990s.

2. The integration was driven mainly by the IAI Work Plans (IAI-WP). There have been two work plans since 2002.

The IAI Work Plan 1 (covering 2002-2008), which was endorsed by the Leaders at the 8th Asean Summit in 2002, addressed the “soft infrastructure” needs of the integration, including priorities setting, human resource development, and systems in policies for trading, customs, trade standards, and investments.

The second IAI Work Plan (2009-2015), which was endorsed in 2009 at the 14th Asean Summit, focused on “hard infrastructure” building. This includes the development of physical transport and communication networks, and completion of the physical road, rail, air and sea linkages within ASEAN. Examples of these are the Singapore-Kunming Rail Link which will connect Singapore, China, Thailand and the CMLV countries; and the air transport liberalization links under the BIMP-EAGA project (Brunei, Indonesia, Malaysia, Philippines East Asean Growth Area).

Two parallel structures

1. To accelerate the integration, two parallel structures were set up.

2. The first layer was the Asean Summit or the annual meeting of the top officials of the Asean countries. The Summit provides overall guidance and advice on the implementation of the integration plan. The Asean Coordination Council, the IAI Task Force, and the Asean Secretariat are bodies set up by the Summit to act as recommendatory and implementing bodies of the integration as a whole.

3. The second layer was the IAI Development Cooperation Forum (IDCF) which was established in 2002 to engage ASEAN's Dialogue Partners and other donors in a collective dialogue on the work plans. The IDCF is set up to ensure that the big capitalist economies in the region (and in the world) will be able to intervene in the ASEAN integration scheme.

4. The IDCF was held in 2002 with 270 representatives from Asean member countries and its dialogue partners, together with 27 international and regional organizations, as well as 17 international and regional corporations and foundations. The Dialogue Partners included China, India, Japan, Republic of Korea, New Zealand, and the UNDP. There were also pledges of support from Germany, the ADB, Japan Bank for International Cooperation (JBIC), Asean Centre for Energy (ACE), the Asean Foundation, Hanns Seidel Foundation (HSF), the Colombo Plan, Oxfam, Petronas of Malaysia, IBM and RITES Consultancy of India. The United States’ interest is represented in the international corporations and foundations which are also part of the Donors.

Focus of integration

1. The integration is focused on seven components that ensures ‘free trade’ and the promotion of a single market and production base. It consists of the following: free flow of goods, services, investment, capital, and skilled labor; development of priority integration sectors; and competitiveness of food, agriculture, and forestry sectors.

2. There are 11 priority integration sectors which consist of the following:

• Agro-based products

• Fisheries • Wood-based products • Rubber-based products • Textiles & Apparels • Automotive • Electronics • Air Travel • Tourism • ASEAN (ICT) • Health Care

ILO and ADB study

1. According to a recent study (2014) made by the International Labor Organization and the Asian Development Bank (“ASEAN Community 2015: Managing integration for better jobs and shared prosperity”), if all goes well, the Asean Economic Community could generate 14 million jobs by 2025 and improve the livelihood of 600 million people across all 10 Asean member states. While the study pitches a positive note, the 14 million projected jobs within 10 years from the AEC launching in 2015 is a measly figure. Unemployment will still hover at 100-million figure.

2. Currently, Asean’s total gross domestic product (GDP) stood at US$2.4 trillion, representing about 3.3 percent of the world’s economy, with a labor force of some 300 million people. Some of the background data concerning the Asean labor force:

The average unemployment rate in the region runs at 4.2%. (Philippines has the highest unemployment rate of 7%.

There’s a 13% average youth unemployment rate (the highest are in Indonesia at 21.6% and in the Philippines at 16.6%).

179 million people (59.6%) are in vulnerable employment (defined as the sum of own-account workers and family workers who have no formal work arrangements and do not enjoy regular labor benefits).

117 million people (39%) are wage and salary workers.

92 million people (30.6%) live in poverty.

Are we ready for AEC?

1. The Philippine Daily Inquirer’s editorial on August 27, 2014, raised a related question: How ready are Philippine companies for the AEC? Two sectors that are expected to face difficulties are agriculture and financial services. On agriculture, the local sugar industry is highly vulnerable to competition once tariff is slashed to only 5% in 2015 (from 18% in 2013).

2. Standard & Poor, an investment firm, believes that Philippine banks are also not yet ready. Although profitable and stable, they have a much smaller business scale compared with their regional counterparts. The asset and capital size of the country’s banking system pale in comparison to those in the region:

• The total assets of all Philippine banks are equivalent to only one big bank in Malaysia.

• The combined assets of the 3 biggest banks in the Philippines would approximate one bank in Thailand.

• The total capitalization of the entire Philippine banking system would be the size of just one Singaporean bank.

3. According to the editorial, one reason for the Philippine banks’ incapacity to compete with other regional banks is because of the 40% constitutional limitation on investment. Compare this with the 99% open investment in Indonesia, the lack of hard limit to foreign ownership in Malaysia and Singapore, and a flexibility clause that allows foreign ownership beyond 50% in Thailand.

4. But the problem with the Philippine banks is not its foreign share (Philippine banking have already been liberalized). Besides, almost all top Filipino multibillionaires operate banks:

Henry Sy of BdO -- Abotiz of Union Bank

Lucio Tan of Allied Bank/PNB -- Yuchengco of RCBC

George Ty of Metrobank; -- Eric Recto of PBC

Roberto Ongpin of PBC; -- Frederick Dy of Security Bank

Zobel de Ayala of BPI; -- Others

5. The problem is that the elite who are also owners of the big banks do not put their money and capital in the Philippines; a large chunk is invested abroad. They make use of ordinary people's savings to finance their projects here or join up with big foreign corporations to control Philippine industries (ex. MVP Group’s tie up with Salim Group of Indonesia).

Take stock of our situation first

1. We will not be a gainer in the AEC. As in any trading endeavour, the gainers will always be those who have the most capital, technical know-how, and those who have the infrastructures to dominate the field – the big players or the big corporations. All the hullabaloos about it being advantageous to the small players are mere propaganda designed to make this type of trading agreements acceptable to all.

2. Before we enter into the competitive field of AEC, we have to take stock of our situation first. We have to solve our own problems first and look at solutions available to us in order that we become a stronger economic force.

3. That means we have to solve the problems of:

Unemployment. The Philippines has the highest unemployment rate in Asean, including youth unemployment which is the 2nd highest in Asean.

Poverty. 26.5% of Filipinos lived on less than $1 a day (2009), a poverty rate that was roughly the same level as Haiti’s.

Lack of education due to poverty. Philippines has the highest proportion of children out of school (11.4%).

Hunger & malnourishment. 32% of children under age 5 are malnourished (UNICEF).

4. These are already serious problems for the country and yet…

The Philippines spent the least on education (2010) at 2.65% of GDP. Indonesia spent 2.77%. Thailand, 5.79%. Malaysia, 5.94%.

Philippine investments in infrastructure (including PPPs) constitute only 2% of GDP compared to about 5% in neighboring countries. The government has lined up only 56 PPP in infrastructure but the government can increase its OWN spending in this sector. (ADB President Takehiko Nakao)

Little investment in quality education and in public health.

Philippines, together with Laos and Myanmar, has the lowest commitment on social protection among Asean countries at less than 2% of their GDP. Highest is Thailand (7.2% of its GDP).

3. Meanwhile, OFW remittance amounts to $8 billion yearly. In 2013, FDI was $3.9 billion only (considering that it was the highest FDI reported in the country during the administration of President Noynoy Aquino.

We need an ALBA-type of economic integration

1. Given the character of our crisis, we will not be able to survive under the AEC. In fact, we do not need an AEC. It is an economic agreement that is only advantageous to big corporations, the Filipino elite and the trapos.

2. We need a different type of integrated economy that will support our needs as a people and as a nation. An integration founded not on profit and competition for the big players but for the common good of the people everywhere.

3. There is such an integration happening in other region, specifically in Latin America. This is the agreement that constitutes the ALBA, the Bolivarian Alliance for the Peoples of America led by Venezuela, Bolivia, Ecuador, Cuba.

4. ALBA was established as an alternative to the Free Trade Area of the America (FTAA) which is an agreement that is beneficial only to the big corporations in the United States. ALBA initiated and promoted the People’s Trade Agreements with the Caribbean nations of Antigua and Barbuda, Dominica, St. Vincent and the Grenadines, and St. Lucia under the ALBA-TCP.

5. ALBA and its trade agreements promoted genuine economic cooperation and development, not free trade and competition, as the centerpiece of economic relations among countries. ALBA promotes an alternative socialist system of integration as opposed to an integrated capitalist trading system.

5. The country is in crisis and yet…

The collective wealth of the 40 richest Filipino families grew from $13 billion in 2010 to $47.4 billion in 2011 (an increase of 37.9%). The increased wealth of these families was equivalent in value to 76.5% of the country’s overall GDP at the time (Forbes Asia, 2012). In Thailand, the 40 richest families increased by only 25% of the national income growth that year. Malaysia, by 3.7% and Japan, by 2.8%.

What are we going to do?

1. Prepare for more job losses and its negative impact in the Philippine economy, especially among the working class.

2. Prepare for heavy competition on services industry, including ICT.

3. Prepare for declining wages.

4. Prepare for increasing export of labor coupled with competitive entry of foreign workers

Best immediate response

1. The best immediate response is not only through an NGO type of response around institutional “engagement”, trilateral dialogues, safety nets.

2. The best immediate response is the defense and protection of our rights through struggle and mobilization. It means real, genuine campaigns. It means solidarity, not competition, with the working classes especially in the ASEAN region.

3. Ultimately we have to fight for political power to establish a system that can withstand big corporate control and domination. The ultimate solution lies in bringing down the corrupt capitalist regime and establishing the government of the masses.

Product Innovation

Traditional product value chains used to be linear. Now they are fast-moving product development value networks, encompassing an extended ecosystem of partners, suppliers, manufacturers and customers—all influencing the product lifecycle.

We believe that product innovation and product lifecycle management (PLM) is at a point of inflection and discontinuity. Digital enablers and new technology paradigms have become part of the product development and lifecycle management process, utilizing big product data and digital infrastructures. As customers use digital to change the way they interact with products, companies are looking for ways to use digital to develop them.

Innovation and Product Development group focuses on providing strategy consulting services that build the foundation for business transformations initiatives, large-scale systems integration projects and engineering outsourcing programs.

PLM Strategy & Transformation, defining the strategy that helps achieve profitable growth by designing the right innovation model, integrating with adjacent business areas and infusing latest digital technologies within the product lifecycle that is governed by a measurable, outcome-driven business case.

• R&D Operating Model Design, defining the organization’s global operating model in R&D; planning and procurement; manufacturing locations; talent acquisition, retention and growth that enables developing and launching the right product, at the right time for the right cost.

• Product Portfolio Optimization, optimizing product portfolio and reducing complexity using insight driven customer demand and cost-to-serve to improve margins and reduce product costs.

• Product Complexity Management, providing methodologies and processes to drive product innovation at speed through streamlining processes and applying lean principles to eliminate bottlenecks in product design

• Frugal Innovation, developing a strategy that enables a competitive advantage on value and cost through disruptive innovation in emerging markets to deliver better products to the needs of markets that would otherwise not be reachable; and that may be leveraged in mature markets.

Best practice in manufacturing

Practices are the established processes which a company has put in place to support the way in which the business operates. Best practices are those that lead to world-class performances. World class manufacturing is defined as the point where companies equal or surpass their competitors in every area of their business (Voss et al., 1995b). Best practice can cover numerous areas including agile and lean manufacturing, six sigma, new product development, ISO 9000 and ISO 14000, process analysis and simulation, quality function deployment, theory of constraints, supply chain management, statistical process control, and statistical quality control (Revelle, 2001). There is a link between best performing companies and the adoption of best practice (Quesada-Pineda and Gazo, 2007). It does not matter whether the application or technology solution is a commercial off-the-shelf solution, a custom solution or a hybrid of custom and commercial (Meyers, 2010). However, Voss (2005) argues that there is no such thing as a ‘best’ practice. Practices evolve, need adapting to the context, and what may be best in one context on day, may not be best in another the next. The more prevalent best practices applied in manufacturing today are noted below.

• Lean The concept of lean evolved from the Toyota Production System (TPS) into a management philosophy that focuses on removal of any non-value-added activities from the manufacturing process (Womack et al., 1990). Despite much attention and research into the concept of lean, there is no clear definition of lean management philosophy (Alsmadi and Khan, 2010). There have been attempts to define the concept (Hines et al., 2004; Bendell, 2005; Shah and Ward, 2003), whilst others have queried whether this concept is clearly defined (Lewis, 2000; Dahlgaard and Dahlgaard-Park, 2006). Shah and Ward suggest a definition which encompasses people and process components for both an internal perspective (the business) and an external perspective (suppliers and customers). The concept of lean can however be classified into three areas; the philosophy, the principles and the practices (Shah and Ward, 2007; Shah et al., 2008). Lean appears effective as the practices work in unison to deliver results in meeting customer demand and driving waste out of the processes (Furterer and Elshennawy, 2005). However, implementing lean cannot be considered as a quick win (Rowlands, 2006). The greatest challenge to an organization adopting lean is to achieve the maximum possible stability in a changing environment (Rentes et al., 2009). Many practices considered to be effective in improving operational performance can be grouped in the “lean” category. Shah and Ward (2003) suggest that practices such as Just-in-Time, Total Quality Management and Continuous Improvement Programs, are sub-sets of Lean and should be classed as such. These practices have been evolving and merging such that they represent a body of best practice (Holweg, 2007; Schroeder et al., 2008).

One variant of lean is cellular manufacturing which delivers improvements in lead time, inventory and operating costs (Kirton and Brooks, 1994). Cell manufacturing is defined as ‘a group of closely located workstations where multiple, sequential operations are performed on one or more families of similar raw materials, parts, components, products, or information carriers. The cell is a distinctive organizational unit within the firm, staffed by one or more employees, accountable for output performance, and delegated the 9 Manufacturing best practice and UK productivity responsibility of one or more planning, control, support, and improvement tasks (Hyer and Wemmerlöv, 2002 p18).

• Just in time Just in Time (JIT) is a lean approach that has seen widespread adoption in manufacturing businesses. It is a system whereby materials and components for production are delivered from the supplier at the point they are needed in the manufacturing process. This means there is no waiting time whilst the materials or components wait prior to being processed. The JIT system includes three elements; people, plant and systems. Successful implementation requires all three elements to be considered (Seyed-Mahmoud, 2004). Small firms benefit from JIT implementation through improvements in production and customer service areas (Golhar et al., 1990). Although JIT delivers benefits to a manufacturing organization, implementing JIT systems means considering the culture of the organization, as the JIT implementation affects the underlying beliefs and values about the production system (Sohal et al., 1993).

• Continuous improvement; Kaizen and Kaikaku Kaizen or continuous improvement originated in Japan as part of the lean approach. It is a mechanism to remove waste from the manufacturing system by many small improvements. The approach establishes a standard, maintains it, and then improves on it. In this context, a standard is defined as a set of policies, rules, directives and procedures established by management for all major operations. This acts as guidelines that enable all employees to perform their jobs successfully. If employees are unable to adhere to the standard, management either provide training, or review and revise the standard (Wittenberg, 1994). Although both advocate improvement, kaizen differs from kaikaku, which is a radical change approach rather than the evolutionary change of kaizen. Whilst kaizen is fundamental to the Toyota Production System, kaikaku is a fundamental concept of the executive system used at Toyota (Munro, 2012). Kaizen can deliver improvements in quality, safety and operating costs (Lydon, 2007).

• Total Quality Management and ISO 9000 ISO 9000 is a quality management standard that defines the management processes and systems to be applied to ensure quality (BSI, 2013). Total Quality Management (TQM) is defined as an integrated approach for delivering competitive advantage by continually improving all aspects of organizational culture (Tobin, 1990). It goes beyond the systems approach of ISO 9000 and addresses the underlying beliefs and attitudes that influence behaviours. The focus is on the basic assumptions underlying the more visible levels of quality management (Kujala and Lillrank, 2004). The implementation of ISO 9000 often remains superficial (Boiral and Amara, 2009). Many companies, regardless of size, often apply ISO 9000 and TQM) as a means of improving performance. There is evidence that TQM activities are associated with improved competitiveness, whereas ISO 9000 on its own does not deliver the same level of performance improvement (Prabhu et al., 2000a). 10 Manufacturing best practice and UK productivity

• ISO 14000 ISO14000 is an environmental management system. It provides a mechanism for companies seeking to identify and control their environmental impact and constantly improve their environmental performance (ISO, 2012). There is some evidence that adopting ISO14000 can deliver economic benefit, but the main benefit is to the intangible assets of the company (Teng, 2011).

• Health and safety Ensuring a safe working environment is considered best practice. Many organizations which exhibit best practice in terms of health and safety often demonstrate good relationships with their employees (Cork, 2005). Practical guidance for improving health and safety practices can be found on the Health and Safety Executive website (Health and Safety Executive, 2012). A formal accreditation system for managing health and safety is OHSAS18000 (Occupational Health and Safety, 2012). This is a similar system for management and compliance as ISO 9000 and ISO 14000.

• Six Sigma Six Sigma evolved from taking a statistically driven perspective to improving manufacturing processes. The capability of a manufacturing process to consistently deliver product to the required standard can be expressed in terms of the number of defective products produced. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a target of “six sigma” for all its manufacturing operations, and this term became synonymous with the practices used to achieve this level of performance (Placzkowski, 2001). Adopting Six Sigma improves organizational performance, through the efficiency with which employees are deployed, but also through improved productivity (Shafer and Moeller, 2012). Six Sigma works in both large and small companies (Kumar and Antony, 2008). However the impact of six sigma across small to medium sized enterprise (SME) companies is less prevalent. Many SMEs are not aware of six sigma and many lack resource to implement six sigma projects. Linking six sigma to customers and business strategy are the most critical factors for the successful deployment of six igma in SMEs (Antony et al., 2005).

• 5S 5S is a systematic approach to organization that consists of five steps. Although originating in Japan and having Japanese names for each step (1. seiri, 2. seiton, 3. seiso, 4. seiketsu, and 5. shitsuke), the translation to English usually considers the five steps as, 1. sort, 2. set in order, 3. shine, 4. standardize, and 5. sustain. 5S creates an environment that is disciplined, clean and well ordered (Chapman, 2005). The implementation of a 5S programme can create a culture of continuous improvement across the organization (Shil, 2009). 5S can facilitate improved operational performance, particularly in the areas of quality and productivity (Bayo-Moriones et al., 2010). As with TQM, management of both the technical (visible) and cultural (invisible) approaches is required for each of the 5S components to ensure productivity gains are realized (Gapp et al., 2008). 11 Manufacturing best practice and UK productivity

• Failure mode and effects analysis Failure mode and effects analysis (FMEA) is a technique that is widely applied in the automotive sector. FMEAs help manufacturers to prevent defects, improve safety and increase customer satisfaction. Most are conducted in the product design or process development stages (Johnson, 2002). FMEA acts as a mechanism to facilitate knowledge transfer between development teams (Frank and Echeveste, 2012). There is often reluctance amongst product engineering and manufacturing engineering personnel to take a leading role in the preparation of design and process FMEAs respectively. The main reasons for this relate to a perceived lack of time or lack of understanding of the technique's potential (Aldridge et al., 1991).

• Quality Function Deployment Like FMEA, Quality Function Deployment (QFD) is widely applied in the automotive sector. Developed in the late 1960s to help design supertankers in Mitsubishi's shipyards in Kobe, Japan, the technique involves taking customer requirements and turning them into technical specifications for the finished product (Maire et al., 2005). QFD articulates and ranks customer requirements and defines the technical requirements needed to meet those requirements (Kinni, 1993). QFD is most likely to have a positive benefit when management support for QFD is prevalent and where customer data gathered for the project are used (Cristiano et al., 2001; Cauchick Miguel, 2005; Fegh-hi Farahmand, 2009). As with FMEA, QFD is a mechanism to share knowledge across sites or divisions (Jussel and Atherton, 2000). Despite much literature on the tools and techniques for applying QFD, there is little on how QFD can be introduced into the management system of an organization (Parkin et al., 2002).

• New product development Creating a flow of innovative new products and reducing the time taken to design and market new products are key greatest challenges facing UK's manufacturing industry. Working collaboratively with suppliers is considered best practice in new product development. The importance of sharing knowledge between buyer and supplier in this context is well recognised, although comparatively little research exists on the intercompany socialisation mechanisms that facilitate it (Lawson et al., 2009). Adaptive leadership is used in successful new product development (NPD) environments where strong leaders are not necessary for successful outcomes (Olsson and Wass, 2001). Product lifecycle management (PLM) systems have the potential to improve the quality of design decisions and minimise manufacturing problems during new product development. However, providing a source of best practice is difficult due to the complexity of the viewpoint relationships between products and the processes and resources used to produce them (Gunendran and Young, 2010). There are differences between the specific practices that NPD practitioners from SMEs and large companies consider to be best practice. There is limited value in developing theories and models about best practice in managing NPD unless these models and theories are fully diffused and can be made useful to NPD practitioners (Nicholas et al., 2011). 12 Manufacturing best practice and UK productivity

• Total Productive Maintenance Total productive Maintenance (TPM) aims at providing the most efficient use of equipment. As with lean, the practice engages all employees from top management down, and implements action, based on small autonomous teams, to ensure maximum efficiency and availability of manufacturing equipment (Bamber et al., 1999). The basic measure of TPM performance is the overall equipment effectiveness (OEE) value, which is described by Nakajima (1989) as the driving force and direction for improvement based activities within manufacturing operations. A recent development of TPM is the application of six sigma practices to TPM (Thomas et al., 2008).

• Supply chain management Best practice in supply chains is represented in the areas of IT tools, make-or-buy procedures, supplier searches and progress reporting, supplier-customer relationship management and quality management (Andersen et al., 1999). There is increasing emphasis on alliances, networks, and supply chain management as mechanisms by which manufacturing companies can achieve competitive advantage. US automotive manufacturers have historically managed the majority of their suppliers using an arm'slength model. Korean automotive manufacturers have managed suppliers primarily as partners, whilst Japanese automotive manufacturers have different relationships with suppliers depending on the nature of the component. Only Japanese companies have strategically segmented suppliers to realize many of the benefits of both the arm's length as well as the partner models (Dyer et al., 1998). Supply chain best practices align people, processes and technology (Yacovone, 2007). Supply chains operate most effectively with a close relationship between all partners. This partnership approach requires realistic working standards and practices. Successful supply chains developed in automotive and aerospace where well developed relationships and supply systems facilitated the adoption of lean systems (Barclay, 2005), and these are often used as best practice exemplars. Sourcing is the choice of who will perform a particular supply chain activity such as production, storage, transportation, or the management of information. This is a key aspect of Supply Chain Management and has had significant influence on sourcing components for companies outside the UK (off-shoring). In more recent times the process has been reversed with companies realising the benefits of having a shorter supply chain and returning to UK or European suppliers. Decisions are made balancing between efficiency with responsiveness (Chopra and Meindl, 2012). In turbulent and volatile markets where life cycles shorten and global economic and competitive forces create additional uncertainty, a more responsive approach has been developed to supply chain management. Where there is risk attached to lengthy and slow-moving logistics supply pipelines become unsustainable, forcing organizations to review how their supply chains are structured and managed. The use of “agility” – the creation of responsive supply chains allows organizations to respond to these demands Agility operates in concert with lean, rather than as a lean practice (Christopher, 2000). Other Manufacturing companies with a reputation for delivering high levels of customer service have similar characteristics that enable them to concentrate on satisfying the customer. These companies generally outperformed the average company in their industry in terms of financial performance after adopting a customer service strategy (Griffin et al., 1995). 13 Manufacturing best practice and UK productivity, 14 Best practice in management accounting enables managers to obtain relevant information for meaningful decision making and can contribute to the success of a company (Alleyne and Weekes-Marshall, 2011). Practices that transfer power to employees, often described as high-performance practices, can raise productivity (Cappelli and Neumark, 2001). Best practice in Human Resource Management (HRM) on organizational performance has tended to focus on a universally applicable best practice model of high commitment management (Purcell, 1999). Concepts of mind set and lateral thinking are related to the top-down introduction of a step change in performance, whilst total quality programs develop the culture necessary for bottom-up continuous improvement. Successful companies will run both approaches in parallel (Hall, 1996). Best practice in leadership, customer and market focus, human resource management, process management and process innovation all contribute to improving company performance (Seedee, 2012). It is sometimes difficult for a company to clearly define what a best practice is and there is a lack of methods which could help it to identify those best practices (Maire et al., 2005).