In order to revitalize local communities, the government, local governments, local residents, industries, universities, and other institutions are implementing a variety of measures and trials, and some areas are achieving results and others are not. I have studied the actual state of operations management of Japanese manufacturing companies such as Toyota and Denso that maintain and improve their competitive advantage in the global market place, and have conducted research on what kind of management can improve corporate performances. In particular, through my research on comparative verification of companies that have achieved performances through the practice of quality management (TQM) and those that have not, I have come to understand that the MBA model isan effective management method not only for companies but also for hospitals, universities, and public institutions. Based on these previous studies, this paper analyzes examples of initiatives that have succeeded in regional revitalization and examines the significance of “local revitalization management” from the perspective of operations management theory in business administration.

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This paper reviews the background of the decline of the central city area, the significance and results of the renovation town development projects undertaken by HanamakiCity, and future strategies for the sustainability of small regional cities.
The decline of the central city area is not only due to changes in commercial functions and industrial structure, but also to changes in population growth and decline of local productivity, signs of which have already been seen for about half a century, such as depopulation in rural areas and a decline in the total fertility rate. The productivity of central city area is affected by the surrounding agricultural areas and inter-city relations. In the first place, local economies have a structure in which production and consumption are simultaneous and economic density includesa certain degree, making it difficult to fit in with the unitary revitalization measures of big cities; therefore, it is necessary to develop the city according to local characteristics. Renovation town development matches the redevelopmentsof central areaat local city, and the concept can be deployed to land resource utilization, productivity improvement of the entire city, and problem solving, and is effective in developing new measures that incorporate issues such as management of social common capital and energy shift, and a perspective on human well-being.

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