Japanese and Swiss Philosophies

towards Production
QUESTION:
WHY HAVE JAPANS PRODUCT QUALITY
AND PRODUCTIVITY INCREASED?

Management style
The use of technology and
innovation
Manufacturing techniques

Effects of the Integrated
Japanese System on Quality
and Productivity
Management Characteristic Japanese Management Practice Effect on Quality and Productivity
Management Style
Consultative Decision Making Decision Making is employee
participative; information flows
from bottom up; focus is placed on
defining the problems; many
possible solutions are explored
More responsibility is placed on
employees, and on creating
commitment and harmonious
relationships among all
participants
Human Resources Long term investment in human
resources is emphasized;
continuous on-the-job training
supplemented by formal classroom
study.
Various continuous training
programs improve job related skills
and adaptability to new
technology.
Long term employment Lifetime employment system exists
for employees up to age 55.
Strong commitment and loyalty are
developed between employee and
company
Long term planning Top management pursues long
term achievement of
organizational goals.
Middle and lower management
personnel are encouraged to
exercise creativity in developing
intermediate objectives.
Management
Characteristic
Japanese Management Practice Effect on Quality and
Productivity
Technology and
innovations

Automation, robotics New technological changes are
introduced and adopted.
Automation and robotics are
not considered threats by
employees. Productivity
increases and product quality
is higher.
Manufacturing techniques
Statistical quality control SQC is used to make the product
correctly the first time.
Amount of effort required to
produce the product reduced,
leading to a more efficient
allocation of scarce resources.
Just-in-time (JIT) JIT systems are implemented to
eliminate waste.
Product quality and
productivity improve through
elimination of waste.
JUST-IN-TIME PURCHASING
Works very efficiently under different
economic conditions:
1. Support and cooperation of suppliers
2. Commitment
3. Series of changes in manufacturing process
How do Purchasing Practices Differ
Under JIT?
Purchasing Activity JIT Purchasing
Full Responsibility
Establishing lot size Purchase is in small lots with frequent deliveries
Selecting suppliers Single source of supply, in close geographical proximity with long
term contract
Evaluating suppliers Product quality, delivery performance and price are emphasized;
no percentage of rejects from supplier is acceptable.
Negotiating with
suppliers
Achieve product quality and a fair price through the long-term
contract.
Purchasing Activity JIT Purchasing
Partial Responsibility
Inspecting incoming parts Counting and inspecting of incoming
parts is reduced and eventually
eliminated
Determining mode of
transportation
Concern for both inbound and
outbound freight and on time delivery.
Delivery schedule is left up to the buyer
Setting product specifications Buyer relies more on design specs than
on product performance. Suppliers are
encouraged to be innovative.
Purchasing Activity JIT Purchasing
Related Aspects
Paperwork Less time is spent on formal
paperwork. Delivery time and
quantity level can be changed by
telephone call.
Packaging Small standard containers are used
to hold exact quantity and specify
the precise specs.
a system of continuous improvement in quality, technology,
processes, company culture, productivity, safety and leadership.

"continuous improvement". It comes from the Japanese words
("kai") which means "change" or "to correct" and ("zen") which
means "good".

Kaizen is a system that involves every employee - from upper
management to the cleaning crew. Everyone is encouraged to come
up with small improvement suggestions on a regular basis. In most
cases these are not ideas for major changes. Kaizen is based on
making little changes on a regular basis: always improving
productivity, safety and effectiveness while reducing waste.

The Kaizen philosophy is to "do it better, make it better, improve it
even if it isn't broken, because if we don't, we can't compete with
those who do."


Kaizen in Japan is a system of improvement that
includes both home and business life. Kaizen even
includes social activities. It is a concept that is
applied in every aspect of a person's life.

Quality circles, automation, suggestion systems, just-
in-time delivery, Kanban and 5S are all included
within the Kaizen system of running a business.

Kaizen involves setting standards and then
continually improving those standards. To support
the higher standards Kaizen also involves providing
the training, materials and supervision that is needed
for employees to achieve the higher standards and
maintain their ability to meet those standards on an
on-going basis.