Japanese Approach to Productivity. Isolating the Elements Japanese, as a nation, have had one...
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Transcript of Japanese Approach to Productivity. Isolating the Elements Japanese, as a nation, have had one...
Isolating the Elements Japanese, as a nation, have had
one fundamental economic goal since 1945:
FULL EMPLOYMENT THROUGH INDUSTRIALIZATION
FULL EMPLOYMENT THROUGH INDUSTRIALIZATION
Strategy Strategy employed by the
Japanese to achieve their economic goal:
OBTAIN MARKET DOMINANCE IN VERY SELECT PRODUCT AREAS
OBTAIN MARKET DOMINANCE IN VERY SELECT PRODUCT AREAS
Tactics
Tactics Tactics Tactics
They imported their technology, avoiding major R & D expenditure.
They concentrated their ingenuity on the factory to achieve high productivity and low unit cost.
Improve product quality and reliability to the highest possible levels.
Elimination of Waste “…anything other than the minimum
amount of equipment, materials, parts and workers (working time) which are absolutely essential to production…”
No surplus No safety stock Nothing is banked If you can’t use it now, you don’t make
it now.
Japanese Techniques Facilities Planning Techniques Production Planning Techniques Management Style Techniques Employee Relations Techniques
Facilities Planning Techniques Shared Resources Focused Factory Networks Group Technology Technology Specialization Automation/Robotics
Technology Specialization Japanese facilities are smaller and the equipment
within these facilities is specialized for the particular function that the facility is performing
The Japanese buy strictly what they need in order to perform a particular function and no more
This makes: Japanese machines smaller and much cheaper,
more machines can be packed into the same space Rapid tooling changes possible
Employees encourage the installation of new technology and are excited about getting the most out of new technology.
Shared Resources Two adjacent manufacturing
organizations share such things are water towers, warehouses, waste treatment facilities, garbage removal facilities, transportation, power generation, maintenance, service personnel, medical staff, and fire prevention facilities.
This offers a large and better-run organization for each of these areas,
Focused Factory Network Instead of building a large
manufacturing facility that does everything the Japanese build small plants that are specialized. There are less than 750 plants in Japan that have as many as a thousand employees. It’s very difficult to manage a large
installation Integrated plants can be operated more
economically
Group Technology Consider all of the operations
required to make a part and try to group those machines together. Productivity go up Work-in-process inventory comes
down dramatically
Automation/Robotics The number of Robots in Japan is several
times higher than the number of Robots in the U.S.
Japan has invested 1/3 of its growth national product in capital improvements for the last 25 years, compared to about 19% for the U.S.
In 1990, Japan invested 25.4 percent of its GNP on new industrial plants, Germany 15 percent and the U.S. 9.3 percent
Little worker resistance to the implementation
Uniform Plant Load Set up a firm monthly production
plan for which the output rate is frozen.
Plan to build the same mix of products every day, even if the total quantities are small.
Uniform Plant Load cont.
Toyota Example
Model Qty.
Monthly Qty.
Daily Qty.
Cycle
Sedan 5,000 250 2 minutes
Hardtop 2,500 125 4 minutes
Wagon 2,500 125 4 minutesSequence: Sedan, Hardtop, Sedan, Wagon, Sedan,
Hardtop, Sedan, Wagon, Etc.
Jidoka “Stop everything when something goes wrong.” It can be thought of as controlling quality at the
source Instead of using inspectors to find the problems that
somebody else may have created, the worker in Japanese factory becomes his or her won inspector.
Jidoka push-buttons are installed on the assembly lines.
Jidoka also encompasses automated inspections, sometimes called Autonomation.
Japanese believe that if inspection can be done by a machine then a person shouldn’t have to do it.
Minimized Set Up Time Instead of accepting setup times as fixed
numbers, Japanese fixed the lot sizes (very small) and went to work to reduce the setup time
Japanese aim for single digit setup times, i.e. less than 10 minutes, for every machine in their factories
The Japanese separate setup time into two segements:
Internal: that part which must be done while a machine is stopped
External: that part which can be done while the machine is operating
Minimized Setup Time (cont.)
Hood and Fender Press Comparison(800 Ton Press)
Toyota U.S.A. Sweden W. Germany
Set-up Time
10 min 6 hour 4 hour 4 hour
Set-Ups/ Day
3 1 ----------- ½
Lot Size
1 day 10 days
1 month
-----------------
Kanban Production Control System It is a “pull” type of reorder system in that the authority
to produce or supply comes from down-stream opportunities
Production Kanban authorizes the manufacturing of a container of material
Withdrawal Kanban authorizes the withdrawal and movement of that container
The number of pieces in a container never varies for a given part number
The whole system hinges on everyone doing exactly what is authorized and following procedures explicitly.
Just In Time Production “production of precisely the necessary
units in the necessary quantities at the necessary time.”
Producing one extra piece is just as bad as being one piece short
It is contrary to our current practice of stocking material “Just-In-Case” something goes wrong
The Just-In-Time concept applies primarily to a repetitive manufacturing process
Just In Time Production Under Just-In-Time, the ideal lot
size is One Piece The idea is to drive all queues
toward zero in order to: Minimize inventory investment Shorten production lead times React faster to demand changes Uncover any quality problems
Control of Quality Train every person in the firm on quality issues Make every defect visible Make the production people responsible for quality Give every production worker the responsibility
and authority to stop the line or process if a problem develops
Make every worker do his/her own rework Make production equipment maintenance the
responsibility of the production worker using that machine
Pass every part through an automatic measuring device
Control of Quantity Reduce inventory of parts and
finished goods Stock outs occurring less often and
lasting shorter periods
Split Shifts Japanese run two shifts per day
rather than three. These two shifts have a two- to four-hour gap between them.
Maintenance, modification, or inspection of machines are done during the time between the shifts.
Advantages Fewer employees are required The duplication of setup or maintenance
employees is reduced Fewer maintenance employees are able
to accomplish more in the same amount of time
Communication between shift managers is greatly improved
Shift turnovers are smoother and more effective
Bottom Round Management “Consumer Management” or “Committee
Management” Decisions are made at the lowest possible level The layers of upper management are very thin
and the layers near the bottom (operational management) have the most employees
Managers at the operational level are closer to and more involved with their workers
Since the lower levels are the decision makers, there is not much need for upper level managers
Very difficult to implement in a large, complex manufacturing organization
Lifetime Employment If economic conditions deteriorate, the
company will maintain the payroll almost to the point of going out of business
It only applies to permanent workers, who constitute about one-third of the work force in Japan
People have a tendency to be more flexible and want to do all they can do in order to help achieve the goals of the company
Lifetime Vendor (continued) The Japanese also prefer to have their
vendors residing within close proximity to their factories, thus allowing closer contact
More than 90% of all Japanese companies are part of the supplier network
Kinds of Suppliers: Specialists: serve multiple customers (U.S.A.) Captive: make a small variety of parts for a
single customer (Japanese)
Lifetime Vendor Japanese do not bid contracts out every
year searching for the best price Vendor is involved in the final product, and
this involvement begins with the design of the product
In return for the input into the design and production of the product, he is given a long term contract (up to five years)
The vendor thereby becomes part of the company and is involved in the total project
Company Unions Objective of both the union and
management: To make the company as healthy as
possible so there would be benefits accruing to the people in a secured and shared method
The relationship is cooperative, not adversary
Quality Circles “Small Group Activities” The small groups, or circles, are
encouraged to use their creative talents and their high levels of education to come up with creative product improvements
It is used in over two-thirds of Japanese factories
Quality Circles (continued) Individuals are trained not just in the
traditional quality control and production methods, but also in: Conference Management Problem-solving skills Creativity skills Team building Leadership Sales and Service
Small Group Improvement Activities (SGIA)
Circle members are taught: Brain storming techniques How to define a problem How to evaluate solutions Statistical Quality Control
SGIA continuedQ.C. Circles Effectiveness at Toyota
Year Total Proposals
Proposals per capita
Percent Accepted
1960 9,000 1.0 39%
1970 40,000 2.5 70%
1973 247,000 12.2 76%
1976 380,000 15.3 83%
Statistical Management Japanese found that, through the
use of statistical management, quality control, error-spotting, and general facilities control are much easier
When information is statistical and displayed graphically, it is easier to see whether it is in line
Statistical Management(continued) Statistical management incorporates a
drive toward improved quality and improved productivity Process Management Pareto Charts Scatter Diagrams Histograms Trend Charts Control Charts Process Flow Charts Cause/Effect Diagrams
Long Range Planning Japanese look towards the long range
objectives and are geared for large improvements on a long term basis
All processes are analyzed carefully before implementation. Once implemented, they are not readily changed
The US makes changes to its production sequence on as much as a daily basis Products are introduced too quickly and are
not engineered as completely and thoroughly
Long Range Planning In Japan, borrowed capital provides
about 70 percent of the Japanese manufacturer’s needs and equity funds provide about 30 percent. The opposite is true in the United States.
Attitude Toward Workers “What they’re doing today is only
tapping their capability. We must give them an opportunity to do more.”
The management system provides every worker with an opportunity to display his maximum capabilities
Japanese spend more for employee training and education – at all levels – than any other industrial nation
Attitude Toward Workers Everybody in a Japanese company
gets a bonus, from the lowest employee to the highest, twice a year
In good times the bonus is high (up to 50% of their salaries), while in bad times there may be no bonus
Employees Attitude: If the company does well, I do well.
Morale Programs Morale programs within Japanese firms
are primarily designed to show interest in the employees Exercise programs Special interest programs Family orientation seminars Company schools Company stores Family outings
Morale Programs (Continued) All members of a family are involved
with the company, and this emphasizes that employees have a lifetime relationship with it
The Japanese have pride in their work and are proud of their equipment; they take care of it as if they owned it personally
They work in no crisis atmosphere
Management Style Techniques Bottom round Management Quality Circles Statistical Management Long run Planning Company Unions
Production Planning Techniques
Q.C. at the Source Uniform Plant Load Just in time or Kanban Minimize Setup Time Split Shifts Lifetime Vendors/Subcontractor
Networks
Employee Relations Techniques Attitude Toward Workers Lifetime Employment Morale Programs Employee Rotation Profit Bonuses No Nepotism
The Role of the Government
United StatesEach of these segments is battling for and striving for a different set of goals and objectives
Japan’sJapan searches for a common ground. These organizations work hard to remove roadblocks and barriers in order to progress
The Role of the Government
The Ministry of International Trade and Industry (MITI) is a collection of businesses and governmental leaders that look for international market areas that show promise. They target these areas and work as a national unit to effective inroads
Applicability of Japanese Concepts Most Appropriate
Attitude Just-in-Time philosophy Quality at the source
Manufacturing Engineering Minimized setup times Uniform plant load Group technology
Production Control Kanban system