Bench Marking Best Practices of Japan

8/14/2019 Bench Marking Best Practices of Japan

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Benchmarking Best practices of

Japan


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Quality wave began with Japan

The whole world has seen their ragsto riches story. Within no time thecountry has transformed its Madein Japan label from cheap to theone signifying quality, reliability and

preference.

Japan can be considered as oneof the best examples on theglobe for benchmarkingcontinuous improvementpractices.


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Benchmarking Best practices ofJapan

He who wrestles with us strengthens our nerves andsharpens our skills. Our antagonist is our best helper.


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Benchmarking Best practices ofJapan

It will be interesting to study the best practices of theirindustries for making continuous improvement under the

following 4 sections:- I. People

II. Work style

III. Product Quality

IV. Customers


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I. People


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Selection of personnel is the most important phase forquality & continuous improvement. Screening of people isdone on 2 principle criteria:

1. Does the person really want to work for the organization.

2. What is the applicants potential.

Employee selection based on potential


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Japanese organizations have true & genuine concern for people. Thisis reflected in most of their organizations and is the first & foremostobjective for achieving continuous improvement. Besides healthybonus, the perks include housing for unmarried, home loans fornewly weds, promise of upward mobility within the company, accessto employee cafeteria and holiday trips.

Importance of theindividual


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Once accepted for employment, the Japanese workers areguaranteed employment for lifetime with the company. Theemployees do not consider leaving an organization even if hecould get a substantially better position & salary. This givesthe organization the advantage of stable & experiencedworkforce.

Lifetime employment


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Many mistakenly believe that company loyalty is achieved by much

publicized Japanese exercises, motto repetition or visionstatements. It goes much deeper & broader. It consists of aworking relationship in which workers recognize that the companyis concerned not only about customers, products, bottom-line &share holders but also about them.

Company loyalty


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II. Work Style


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Top management involved in quality

The top executives of all Japanese firms wear the sameuniform as their workers. The top management is personallyinvolved in all the areas of quality improvement. Many timesthe top management is on the shop floor, they meet theirworkers, observe what they are doing & converse and resolvetheir problems.


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Job rotation

In Japan workers are rotated in different jobs irrespective of their

qualifications. This is beneficial both for the management & theemployees. The employees tend to view all the problems with afresh perspective and do not have a biased attitude. This alsorelieves monotony and instills fresh enthusiasm in the employeeswhich is regarded as an important motivating factor to obtaincontinuous good performance.


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Very important to have an inquiringmind

The Japanese organizations inculcate in their employees thequality of an inquiring mind. They believe that unless you havean inquiring mind, continuous improvement is not possible. Thinking about new ideas in most of the organizations isthoroughly encouraged.


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Attitude to Excel underchallenge

Japan with its limited space & scarcity of resources has been able

to make the most of whatever it has. Space, people and othernatural resources in Japan are so limited that all Japanese workershave been taught to exploit them with great care & diligence. This colors the Japanese workers efforts to excel with whateverlittle they have - A classical example of the positive influence ofadversity.


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Commitment to training

Formal training is a way of life in Japan & Japanese industry

provides resources for this vital area to ensure that workersknow what they are doing. The company believes that as youinvest more & more in training, the employees become more &more living assets who can be shifted to new responsibilities &higher positions.


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Consensusmanagement

Japanese managers do not make unilateral decisions effectingproduction, quality and improvements. An idea or concept is aired

for comment by workers & middle management and theirobservations & suggestions are seriously considered by the topmanagement. The consensus style of management has a greatadvantage because if many participants are allowed to comment onan idea or a policy change, there will be least resistance when it isactually implemented.

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Long term management outlook

Most of the decisions taken by the Japanese organizations are

long term in nature. Their investments aim for growth over along period of time.


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III. Product

Quality

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Zero defectpolicy

Zero defect is a well understood & practiced quality standardof Japanese industry. At a Sony factory one could see a color T.V that had been operating 8 hrs a day for over 37,000operating hrs with no adjustments or repairs, and the T.V wasstill producing an acceptable picture. The Industry standard is10,000 hrs.

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Quality supersedesproduction

In almost all the Japanese organizations quality supersedesproduction. In Toyota plants every workstation has a line stopbutton. Each worker is empowered to stop the production line ifsomething goes wrong and they do not fear reprisal forinterrupting the production line.

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Supplierquality

Poor quality work is not accepted from any supplier anddefinitely means an end of relationship with the organization. The organizations also conducts training program for theirsuppliers and takes interest in continuously improving theirproducts & services as well. The supplier is considered to bean integral part of the organization.

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Just in Time inventory

Japanese dedication to quality has given them the additional

advantage of low inventory which considerably reduces capitalinvestment in materials, storage space, material handlingequipment and labor. Toyota claims of a 2 hour inventory.The Sony factory in Ichnomiya claims that the suppliers truckrolls in every 90 minutes to keep up with the production rateof Trinitron color TV.

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Effective fool proofing

In most of the Japanese industries effective fool proofingprinciples are followed. Most of the production line have acensor which halts the machine whenever the machine beginsmanufacturing parts which are outside the tolerance limits andare defective.

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Company takes interest in developmentof suppliers

Japanese industry enjoys high vendor quality because many

suppliers are formal employees who having learnt the parentcompanys systems of quality have set their own shops. Since theyunderstand the requirements of parent companys in toto, they canprovide quality components with little inspection & few rejects.Infact many industries in Japan finance such suppliers with venturecapital. Toyota for e.g.. has grown 90% of its suppliers with such

venture capital.

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IV.

Customers

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Global reach

Japanese had a very clear vision of developing products for theglobal market from the very beginning. They were quick inidentifying the disadvantages of some of the importantproducts manufactured globally. They made fast improvementson those products and offered to customers at the mostaffordable price. Electronics and Automobiles are live examples.

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Attention to detail

The customer to most of the Japanese, is a human face withlikes & dislikes and not a faceless, formless impersonalmarket. Customers, whether their employees, their suppliersor ultimate consumers are of constant concern to theJapanese.

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Attention todetail

What are there tastes? How can we innovate to satisfy thembetter? How can we assure that our product is going to givetrouble free service far beyond the warranty period? How can webe responsive to the customer in the event of a breakdown?

From design & production to packaging & delivery the Japanesepay lot of attention to details for customer satisfaction.


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Documents

Bench Marking Best Practices of Japan