FICCI

CE

Benchmarking Best practices of Japan

FICCI

Quality wave began with Japan

CE

Japan can be considered as one of the best examples on the globe for benchmarking continuous improvement practices.

The whole world has seen their rags to riches story. Within no time the country has transformed its “Made in Japan” label from cheap to the one signifying

quality, reliability and preference.

FICCI

CE

Benchmarking Best practices of Japan

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

People II. Work style III.FICCI CE Benchmarking Best practices of Japan It will be interesting to study the best practices of their industries for making continuous improvement under the following 4 sections:I. Customers . Product Quality IV.

People .FICCI CE I.

What is the applicants potential.FICCI CE Employee selection based on potential Selection of personnel is the most important phase for quality & continuous improvement. Screening of people is done on 2 principle criteria: 1. . Does the person really want to work for the organization. 2.

Besides healthy bonus. access to employee cafeteria and holiday trips. This is reflected in most of their organizations and is the first & foremost objective for achieving continuous improvement. home loans for newly weds. the perks include housing for unmarried. promise of upward mobility within the company. .FICCI CE Importance of the individual Japanese organizations have true & genuine concern for people.

This gives the organization the advantage of stable & experienced workforce. . the Japanese workers are guaranteed employment for lifetime with the company. The employees do not consider leaving an organization even if he could get a substantially better position & salary.FICCI CE Lifetime employment Once accepted for employment.

products.FICCI CE Company loyalty Many mistakenly believe that company loyalty is achieved by much publicized Japanese exercises. It consists of a working relationship in which workers recognize that the company is concerned not only about customers. . bottom-line & share holders but also about them. It goes much deeper & broader. motto repetition or vision statements.

FICCI CE II. Work Style .

observe what they are doing & converse and resolve their problems. they meet their workers.FICCI CE Top management involved in quality The top executives of all Japanese firms wear the same uniform as their workers. . The top management is personally involved in all the areas of quality improvement. Many times the top management is on the shop floor.

This also relieves monotony and instills fresh enthusiasm in the employees which is regarded as an important motivating factor to obtain continuous good performance. The employees tend to view all the problems with a fresh perspective and do not have a biased attitude. .FICCI CE Job rotation In Japan workers are rotated in different jobs irrespective of their qualifications. This is beneficial both for the management & the employees.

FICCI CE Very important to have an inquiring mind The Japanese organizations inculcate in their employees the quality of an inquiring mind. They believe that unless you have an inquiring mind. Thinking about new ideas in most of the organizations is thoroughly encouraged. . continuous improvement is not possible.

people and other natural resources in Japan are so limited that all Japanese workers have been taught to exploit them with great care & diligence.FICCI CE Attitude to Excel under challenge Japan with its limited space & scarcity of resources has been able to make the most of whatever it has. Space. .A classical example of the positive influence of adversity. This colors the Japanese workers efforts to excel with whatever little they have .

FICCI CE Commitment to training Formal training is a way of life in Japan & Japanese industry provides resources for this vital area to ensure that workers know what they are doing. The company believes that as you invest more & more in training. the employees become more & more living assets who can be shifted to new responsibilities & higher positions. .

FICCI CE Financial incentive to be innovative The organizations in Japan give adequate financial incentive for employees who come up with innovative ideas for improving quality & productivity. .

An idea or concept is aired for comment by workers & middle management and their observations & suggestions are seriously considered by the top management. quality and improvements. . there will be least resistance when it is actually implemented. The consensus style of management has a great advantage because if many participants are allowed to comment on an idea or a policy change.FICCI CE Consensus management Japanese managers do not make unilateral decisions effecting production.

. Their investments aim for growth over a long period of time.FICCI CE Long term management outlook Most of the decisions taken by the Japanese organizations are long term in nature.

FICCI CE Competitive spirit Competition in Japan is taken as an opportunity to improve. More and more Japanese companies benchmark their products with the global leaders in quality. .

Product Quality .FICCI CE III.

V was still producing an acceptable picture. At a Sony factory one could see a color T.FICCI CE Zero defect policy Zero defect is a well understood & practiced quality standard of Japanese industry. .V that had been operating 8 hrs a day for over 37.000 operating hrs with no adjustments or repairs. and the T. The Industry standard is 10.000 hrs.

In Toyota plants every workstation has a line stop button.FICCI CE Quality supersedes production In almost all the Japanese organizations quality supersedes production. . Each worker is empowered to stop the production line if something goes wrong and they do not fear reprisal for interrupting the production line.

The supplier is considered to be an integral part of the organization. . The organizations also conducts training program for their suppliers and takes interest in continuously improving their products & services as well.FICCI CE Supplier quality Poor quality work is not accepted from any supplier and definitely means an end of relationship with the organization.

material handling equipment and labor. Toyota claims of a 2 hour inventory. The Sony factory in Ichnomiya claims that the supplier’s truck rolls in every 90 minutes to keep up with the production rate of Trinitron color TV. . storage space.FICCI CE Just in Time inventory Japanese dedication to quality has given them the additional advantage of low inventory which considerably reduces capital investment in materials.

FICCI CE Effective fool proofing In most of the Japanese industries effective fool proofing principles are followed. . Most of the production line have a censor which halts the machine whenever the machine begins manufacturing parts which are outside the tolerance limits and are defective.

has grown 90% of its suppliers with such venture capital. Toyota for e. they can provide quality components with little inspection & few rejects. Infact many industries in Japan finance such suppliers with venture capital.. Since they understand the requirements of parent company’s in toto.g.FICCI CE Company takes interest in development of suppliers Japanese industry enjoys high vendor quality because many suppliers are formal employees who having learnt the parent company’s systems of quality have set their own shops. .

Customers .FICCI CE IV.

They were quick in identifying the disadvantages of some of the important products manufactured globally. Electronics and Automobiles are live examples.FICCI CE Global reach Japanese had a very clear vision of developing products for the global market from the very beginning. . They made fast improvements on those products and offered to customers at the most affordable price.

is a human face with likes & dislikes and not a faceless.FICCI CE Attention to detail The customer to most of the Japanese. formless impersonal market. whether their employees. their suppliers or ultimate consumers are of constant concern to the Japanese. . Customers.

FICCI Attention to detail CE What are there tastes? How can we innovate to satisfy them better? How can we assure that our product is going to give trouble free service far beyond the warranty period? How can we be responsive to the customer in the event of a breakdown? From design & production to packaging & delivery the Japanese pay lot of attention to details for customer satisfaction. .

FICCI CE Market research Most of the organizations in Japan have risen to eminence because of excellent market research . The same thing was also done for the Indian market. The Japanese saw the need and came out with small fuel efficient cars which met with great success.determining what consumers want and giving it to them. The U.S auto manufacturers failed to perceive that the 1972 fuel crisis would have a real impact on the customers and they continued to manufacture large fuel inefficient cars. .

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