36.1 Introduction

During the post-industrial revolution era, management thought and practices were developed mostly in the Western countries, especially in the United States. That is the reason why during the 1950s and 1960s, we studied only the terminologies used by writers such as Taylor and Peter Drucker.

However, during the post-World War II era, Japan emerged as a strong industrial nation creating awe among the Western world in view of its highly successful management practices. This resulted in most of the management consultants and authors wanting to understand and use the Japanese management terms.

It may be noted that most of these practices were in use in the Western world also, but the emphasis in Japan was the importance given to the core worker, which was absent in the Western world. It may hence be said that the use of Japanese terms in place of English terms created interest, and indirectly helped young managers to better understand and appreciate these practices.

This paper highlights the meaning and origin of some of the Japanese management terms used, so as to provide a lucid insight into the Japanese concept of World-Class Management Practices.

36.2 Some of the Terminologies Cited in This Chapter

• Quality circles

• Kaizen

• CREW

• 4 wives and 1 husband

• 5 management objectives of factory management

• 5 Zus

• GenchiGenbutsu

• Heizunka

• Nemawashi

• 3 Mu (Muda, Muri, Mura)

• Poka Yoke

• Hanedashi

• Andon

• Jidhoka

• ChakuChaku

• 5 S

• Gemba walk

• WarusaKagen

• Single minute exchange of die

• Just-in-time

• WarusaKagen

• Kanban

• HoshinKanri

• NichijoKanri

• Kata

• 6 Sigma

• Total productive maintenance

• Pecha-Kucha

• DakaraNani

• Kanso, Shizen, and Shibumi

• OkyaKusoma

36.3 History of Development of Japanese Management Practices

• Before World War II, Japan was not a highly industrialized nation. Most of the electrical and electronic goods were imported from the United States and Europe. So it was playing second fiddle to the United States in commerce and trade.

• Japan’s decision to side with Hitler alienated them against the United States and Japan’s raid on Pearl Harbor infuriated the United States, in dropping of atom bombs on Hiroshima and Nagasaki, one of the moist inhumane acts ever committed in the history of mankind.

• Consequently Japanese wanted to pay back the Americans in their own coin.

• They knew it couldn’t be in a war and hence, decided to beat the Americans in world trade, by producing more quality goods and capturing the international market currently reigned by Americans. Japanese being highly patriotic by nature, this desire has percolated into the minds of every national, specifically into all categories of personnel in Japanese industry.

• Higher productivity became the initial buzz word. Yet they realized higher productivity without quality products could take the nation nowhere, and the subsequent buzz word was high quality production. Quality in all aspects of manufacture was given high priority. That’s how the Japanese industry got the momentum for quality-oriented higher productivity in order to capture, not only the domestic, but the international market.

• Around 1950, JUSE (Japanese Union of Scientists and Engineers) team visited the United States to study the US’s industrial practices. During their visit, they invited Dr. Deming, and subsequently, Dr. Juran, to visit Japan and train their engineers.

36.4 Quality Circles

The principle behind quality circles is dealt more in detail in Chapter 15.

36.5 Kaizen

• In Japanese,

Kaizen is dealt more in detail in Chapter 22.

36.6 GenchiGenbutsuGenjitsu

Genchi means actual place, Genbutsu means actual product, and Genjitsu means actual solution. Thus GenchiGenbutsuGenjitsu literally means “Go to the source to find the facts to make correct decisions.” In other words, it is the old industrial engineering principle to conduct a study and collect information on the job directly, instead of resorting only to available statistical data.

36.7 Monozukuri and Hitozukuri

Zukuri (tsukuri) means the process of making something. Monozukuri is the spirit of producing excellent products and the ability to constantly improve a production system and process, as defined by The Japanese Institute for Trade and Organization (JETRO). Hitozukuri is the need to educate and train a person to become expert in Monozukuri. Together, monozukuri and hitozukurican provide the basis for a balanced approach to using technology and enhancing human capacities.

36.8 Nemawashi

Nemawashi means to make decisions slowly by consensus, thoroughly considering all options. This is the basic management principle cited in several chapters of this book, especially the chapter on the TQM tools.

36.9 Heijunka

Heijunka implies to level out the work, or to redistribute the work in such a way that every operator gets more or less the same workload. This is the very principle behind line balancing of assembly lines of small products such as ceiling fans that are assembled by operators sitting in either side of the belt conveyor that moves the work-in-progress. This line balancing, illustrated in the case study in Section 22.20a in the chapter on kaizen, involves

• Splitting each operation into transferable elements

• Timing of each element by work measurement (the term time study, which created a negative impression during the latter half of 20th century, is avoided, though in principle both mean the same)

• Considering the elements that can either be eliminated or redistributed to other operatives in the line, so that each gets more or less the same workload in terms of the mean operational time.

36.10 3 Mu Checklists

Kaizen practitioners have developed a system of checklists to help workers and management to be constantly mindful of areas of improvement, similar to several checklists developed and used by industrial engineers all over the world since the 1950s. In Japan, these are called the 3 Mu Checklists.

The 3 Mus are

• Muda (Signifying waste)

• Muri (Signifying strain)

• Mura (Signifying discrepancy).

The fields where these 3 Mus can be applied are:

• Method of operation

• Process involved

• Facilities

• Jigs and tools

• Materials

• Production volume

• Inventory

• Place

• Manpower

• Technique

• Ways of thinking

• etc. …etc.

36.11 Four Wives and one Husband

This originates from a popular Japanese saying and as explained in Chapter 22, it highlights the principle of a questioning technique which is similar to critical analysis technique or Cost Reduction through Elimination of Waste (CREW) adapted by industrial engineers the world over, even prior to the 1950s. Though they are not Japanese terms, they are cited here for comparison with similar Japanese techniques.

• The 4 Ws (Wives) are What, Where, Why, and When

• The 1 H (Husband) is How.

“Why” is the most significant and is the very basis for the success of industrial engineers. In fact, just to highlight the significance of why, this author prefers to choose the second letter H of Why to call it the husband and the third letter W of How to group it under Wives.

If you do not wish to deviate from the significant use of the first letter, let us illustrate the importance of the third word from the Indian mythology of Mahabharat by considering the simile that Satyabhama, the third wife of Krishna is the most powerful among his wives, or to Ramayana where Kaikeyi, the third wife of Dasaratha, is the most powerful among his wives.

Remember the famous poem by Rudyard Kipling?

I had six stalwart serving men,

They taught me all I know,

Their names were What and When,

And Where and Why and How and Who.

36.12 CREW

In contrast, CREW (Cost Reduction through Elimination of Waste) is popular in the Western world. Though this is not a Japanese tern, it is included here in view of its similarities with kaizen, etc. Canon has identified 9 waste categories as:

36.13 5 Management Objectives of Factory Management

The five key points set forth by the Mitsubishi Corporation are:

• Achieve maximum quality with maximum efficiency.

• Maintain minimum inventory.

• Eliminate hard work.

• Use tools and facilities to maximize quality and efficiency and minimize effort.

• Maintain a questioning technique and open-minded attitude for constant improvement based on teamwork and cooperation.

36.14 5 Zus

In Japanese, Zu, as a suffix means don’t

The five don’ts or the things the operators should avoid doing with respect to defects are:

36.15 Poka Yoke

• Poka Yoke or AUTO-NO-MATION is based on the philosophy “to err is human.” That is, instead finding out who erred, find out why it happened, and ensure it does not happen again.

• It ensures that the machine stops automatically whenever there is an error. That is, the machine automatically says no to further operation, from which the author coined the term AUTO-NO-MATION. This is also called “mistake proofing.” Most CNC machines provide striking examples of this.

• It may be noted that even in 1950s, the textile looms in Bombay were provided with a mechanical interlocking system that, whenever any thread snaps off during weaving, a thin reed supported by the thread slips down into the mechanism and the machine stops automatically.

36.16 Andon and Hanedashi

Andon is an indication to stop work manually in case of any problem. While Poka Yoke involves automatic stoppage of the machine, Andon involves the manual stoppage by the vigilant worker.

Hanedashi is the use of auto-eject devices to unload the parts automatically after the operation is over. This is similar to poka yoke, but is applied after the operation.

36.17 Jidhoka

Jidhoka is based in the philosophy that all individuals are responsible for the services they provide.

36.18 ChakuChaku

ChakuChaku means “Load, Load,” referring to the positioning of all the machines as per the operation sequence and very close to each other. In other words, it implies Product Layout.

36.19 5 S

5 S is a method for organizing the workplace like a shop floor or an office space. It advocates what to keep, where to keep it, and how to keep it (maintaining, cleaning, etc.). It also instills a sense of ownership among the workers to be more accountable for their work place. In Chapter 23, 5S is dealt with more in detail, but the basics are repeated here.

Further reference may be made to the chapter on 5S.

36.20 Six Sigma

Six sigma is a business management strategy originally developed by Motorola, US in 1981. However, because Japanese adapted this principle initially, and was more successful than the rest of the world, and the Japanese industries have been the benchmarks for the six sigma concept, this is cited here to highlight its basic principle. Chapter 24 on six sigma is devoted fully to this concept.

Since the 1920s, the word “sigma” has been used by mathematicians and engineers as a symbol for a unit of measurement in product quality variation. However, the engineers of Motorola in the United States used “Six Sigma” as an informal name for an in-house initiative for reducing defects in production processes.

The concept with which we use the term σ in statistics is different from that which is used in TQM, as can be clearly understood by the explanation given in Chapter 24.

Hence, it is important to call it six sigma (at the most 6-sigma), and not by the symbol 6σ. Also while referring to the extent of its application, to use the term “level” or “performance level,” and not “value.” That is to say, “I achieved six sigma level quality,” and not “I achieved a quality of six sigma value.”

36.21 Gemba Walk

Gemba walk is the practice of senior managers to tour several places in the factory, along with the concerned operatives, with the basic purpose of identifying the areas for improvements. Each and every Muda noticed, or suggestions offered by anyone for improvements, would be recorded and analyzed and posted on the notice board to motivate the operatives. This is generally done during the afternoon hours or Sundays to create a friendly and holiday atmosphere and may be followed by snacks or lunch. Preferably the Chief Executive Officer accompanies them to instill interest among the workers.

36.22 WarusaKagen

WarusaKagen implies that things are not problematic now, but may soon develop into a problem unless controlled now. It is a caution noticed by a vigilant worker in the system and hence, a starting point for several improvement activities.

This can be understood and remembered better by the Tamil metaphor—WarusaikkuAghum—(or Varusakuagunu in Telugu), both implying “will be next in the line.”

36.23 Single Minute Exchange of Die

Single Minute Exchange of Die (also known as SMED), is the Lean Manufacturing tool used to create very fast changeovers and setups to reduce machine downtime and increase throughput. SMED was developed by Shigeo Shingo and successfully introduced at Toyota Motors, reducing machine changeover times from hours to less than 10 min. The success of this program contributed directly to just-in-time manufacturing, which is part of the Toyota Production System. SMED makes load balancing much more achievable by reducing economic lot size and thus stock levels. This is dealt with more in detail in Chapter 21 on modern seven management tools.

36.24 Just in Time

Just in time (JIT) is a production and inventory control technique to ensure that the inventory level, either as stocks in the store or as work-in-process on the shop floor is reduced to a minimum, almost to a zero level.

JIT purchasing is to ensure that the supplies are received in small quantities just in time for production, by establishing an agreement with vendors

JIT on the shop floor is to ensure that each machine produces just what is required for the next machine in quantities, but not more than what is required. This is also called a pull-system of production. Kanban as explained below is a part of this concept.

Prior to the 1980s, during the days of manual inventory control by Kardex system, the critical items with low stocks were identified by a thin red strip inserted in the card, so that procurement action can be initiated once a month to avoid stock outs. But today, with computerization, such control can be done on a day-to-day basis even for most A and B items, enabling application of JIT concept to reduce the average inventory to 1 or 2 day’s level.

36.25 Kanban

• This is JIT application in production planning and control and has become synonymous with JIT system.

• Kanban, in Japanese language, means visible signboards, cards, or chits.

• The Kanban can be a card, a container, or an electronic signal.

• Every machine operator tends to produce only those quantities required for the next operation and keeps a Kanban in the container of the components as an indication to the next operator that the required semi-processed material is ready. He slows down his pace for the next lot if the container is still not drawn by the next operator.

• When the subsequent operator finishes his operation, he draws the material returning this Kanban, forming a signal to produce a further lot of the required quantity.

• Hence, this is also called the pull-system of production.

• The underlying principle is that the needed parts should be received just in time for further processing.

36.26 HoshinKanri

HoshinKanri is a Japanese term for strategic planning.

HoshinKanri can be broken down into four parts,

So Hoshin means progress towards a goal

Again

So HoshinKanri means achieving the organization's direction, focus or goal, by logically controlling the progress.

In other words, HoshinKanri represents the management planning and control towards the achievement of the goal. It is a method devised to capture and cement strategic goals, as well as to provide insight about the future and develop the means to bring these into reality. This is called strategic planning in the western world as explained further in Chapter 7 on strategic planning.

As Dr. Yoji Akao puts it,

36.27 NichijoKanri

Nichijo means daily routine and kanri means management and control, similar to kanri of hoshinkanri. Thus nichijokanri covers all the day-to-day aspects of operations planning and is complementary to hoshinkanri, which refers to the long-range or strategic planning.

36.28 Kata

Kata is a descriptive term for the organizational routines. It can be defined as behavior patterns, routines, or habits of thinking and doing that are practiced over and over every day.

Kata as a term became popular at Toyota and provides a level of clear insight into the key behaviors underlying Toyota Culture in a way that can be easily understood and applied. Mike Rother in his book Kata in Toyota, refers to “improvement kata,” “coaching kata,” etc.

We may hence equate the term Kata (the story of the routines) to the Indian term Katha, but it is something more than a Katha. This is the very philosophy, which all the employees of Toyota breathe, day in and day out.

36.29 Total Productive Maintenance

Like any other Japanese practice, total productive maintenance (TPM) emphasizes that the base worker shall be entrusted with the task of performing the routine maintenance activities for the machine he operates. The maintenance problems, too, are discussed by the quality circles to ensure that the machine upkeep is more effective.

It may be noted that while the principles and procedures for preventive maintenance originated in the West, the Japanese emphasis on making the operator the central focus for the routine maintenance, combining with the 5 S practices, made all the difference in the effective overall maintenance of the equipment. And this resulted in TPM, which is explained further in Chapter 13.

Today world over, it has been realized that this Japanese practice of worker-oriented routine machine maintenance is much more effective than the maintenance conducted by maintenance department workers.

36.30 Pecha-kucha

Literally meaning chatter or chit-chat, it emphasizes the need to plan contents and time management of the power point or other presentations, thereby avoiding Pecha-kucha during the presentation. If you have 20 slides and only less than seven minutes to complete the presentation before discussions, the slides advance automatically before 20 sec, forcing you to limit presentation of each slide for 20 sec only. This concept is hence called 20 × 20/6.40 (min). Started in Tokyo in Feb. 2003 as an event for young designers to present their work, it has turned into a massive celebration and Pecha-kucha Nights are held in hundreds of cities around the world.

36.31 DakaraNani

Literally meaning “so what?,” it implies that while planning any slide, be prepared for the audience to question “so what?” for every step and prepare yourself for a convincing response or edit the material accordingly.

36.32 Kanso, Shizen, and Shibumi

These are the three vital elements of presenting your report in a meeting. Kanso means “simplicity” that is achieving maximum with minimum means, using ideal concepts, visual elegance, and perfect communication. Use of overelaborate deigns and excessive refinement is avoided. Shizen means Naturalness in presentation of ideas that suit the particular audience. This point is also emphasized by Taichii Ohno in his book, Toyota Production Systems. Shibumi means elegant simplicity in visual communication and graphic design.

36.33 OkyaKusoma

This may not be a management practice as such, but means honorable guest, a term often used for the customer in Japan. Thus, this may be called a marketing strategy.

36.34 Conclusion

As explained in the synopsis, the author makes an attempt to enlighten the reader on some of the Japanese terminology and practices, the application of which has resulted in a major revolution in industrial management all over the world during the latter half of the 20th century, next in importance only to the Industrial Revolution of the 17th century.

Of course, during the early part of 21st century, China has overtaken Japan in industrial success and maybe we have to retune ourselves to the Chinese Management terminology and practices. We should hope for the day when India overtakes the rest of the world in successful management practices, when every other country starts using Sanskrit words on management as their regular vocabulary on management terminology.