The Japanese have had phenomenal impact on world markets.

Many industries,
such as electronics, cameras, watches, motorcycles, machine tools, automotive
products, shipbuilding, and even some aspects of aerospace are either dominated
by Japanese firms or are heavily impacted by them.

Many people mistakenly attribute this phenomenon strictly to cultural

differences. The vision of dedicated Japanese workers giving their life to the
company for substandard wages surely accounts for the difference, they reason.
Of course, this view doesn't always square with reality. First, Japanese factories
have some of the highest wage structures seen outside the United States. Second,
this "Japanese miracle" is also happening outside Japan. Most Japanese
automobile manufacturers have successful plants located within the United
States; all of them manufacturing quality automobiles utilizing American
workers. When Matsushita bought a U.S. television plant in Chicago, they
managed to maintain the 1,000 hourly employees while trimming the indirect
labor by half. Utilizing the same workers employed by the U.S. firm, Matsushita
doubled daily production while improving quality 40-fold. Outside warranty
costs fell from $16 million per year to $2 million per year while selling twice as
many sets.

Word of these success stories soon aroused considerable interest from U.S. firms.
Interest in Japanese management was first generated in the U.S. with the
appearance of a book by William Ouchi entitled "Theory Z", and later a book by
Richard J. Schonberger entitled "Japanese Manufacturing Techniques: Nine
Hidden Lessons in Simplicity", and the broadcast of an NBC television white
paper entitled "If Japan Can, Why Can't We?"

William Ouchi's book "Theory Z" detailed much of the success being realized by
the Japanese manufacturing firms. The Japanese style of management (as
opposed to McGregor's Theory X and Theory Y) mystified many U.S.
businessmen with its talk of cultural differences and notions such as lifetime
employment.
In his book "Japanese Manufacturing Techniques: Nine Hidden Lessons in
Simplicity", Richard Schonberger presented nine "lessons" the world could learn
from the Japanese. These lessons included:

1. Management technology is a highly transportable technology.

2. Just-in-time production exposes problems otherwise hidden by excess
inventories and staff.
3. Quality begins with production, and requires a company-wide "habit of
improvement."
4. Culture is no obstacle; techniques can change behavior.
5. Simplify, and goods will flow like water.
6. Flexibility opens doors.
7. Travel light and make numerous trips, like the water beetle.
8. More self-improvement, fewer programs, less specialist intervention.
9. Simplicity is the natural state.

For many American business executives this was their first encounter with the
concepts (and even just the terms) of just-in-time, kanban, Total Quality
Management, and quality circles.

The NBC documentary "If Japan Can Why Can't We?" introduced Americans to
the progress made in Japanese manufacturing and served as a "wake-up call" for
American businesses that manufacturing had entered a new generation. For
many viewers, this was their first introduction to W. Edwards Deming, statistical
process control (SPC), and quality circles.

By the early 1980s it was evident that Japan was well on its way to the position as
a worldwide dominant force in manufacturing that it enjoys today. Japan's rise to
economic dominance sent ripples throughout the industrialized world. Since the
early 1960s Japan has systematically increased its share of world trade in
industrial and consumer goods, although persistent economic problems during
the 1990s have arrested its rapid growth.
A number of reasons have been tendered to explain the success of the Japanese.
When Japanese automobile manufacturers' market position began to strengthen
in the 1970s it was easy to suppose that the 1973 Arab oil embargo and
subsequent escalation in gas prices was the antecedent. Customers were sent
searching for small fuel-efficient vehicles. Since the Japanese were already
entrenched in the small car market, they had a considerable natural competitive
advantage. However, it was expected that this advantage would wane as the Big
Three automakers had time to react by incorporating small cars into their
product line and as oil prices began to decrease.

However, as the Big Three were able to produce smaller cars and gas prices fell,
the Japanese market share of the automobile industry continued to increase. Nor
did this reasoning account for the simultaneous surge in Japanese market share
in areas such as steel, consumer electronics, copiers and heavy equipment. After
all, if the oil embargo was responsible for the increase in Japanese market share
why didn't other traditional small car manufacturers such as Renault and
Volkswagen have comparable success? Manufacturers began to realize that the
Japanese success story was more than simply a matter of timing.

HISTORY

When Japanese industry was in its infancy stage, the Japanese market was too
small to absorb the increasing domestic production. Japan needed a global
market in order to further develop. By creating an export market, Japan was able
to structurally transform its economy, thereby granting it access to the
technology it needed to develop.

The Japanese goal became one of full employment through industrialization. This
called for dominating the market in very select product areas. They carefully
chose areas in which they had the confidence to dominate and concentrated on
them rather than diluting their efforts over many areas.

A number of tactics were utilized to support this strategy. First of all, the
Japanese imported their technology, thus avoiding the risks involved with major
R&D expenditures. Instead, they negotiated license agreements to make workable
new products. Then the best engineering talent was directed to the plant floor
rather than to the product design department, thereby concentrating their
ingenuity on high productivity and low cost rather than innovative design.
Finally, they strove continuously to improve quality and reliability to the highest
possible levels and then beyond; to levels competitors could not or would not
supply. Implementation of these tactics was guided by a solid respect for people
and the belief that waste must be eliminated (these two areas are discussed in
depth below).

The Japanese example of success shows that neither massive research and
development investment nor abundant natural resources is necessary for
sustainable industrial development. For years Japan was well known as an
imitator not an innovator as they copied, borrowed, and licensed technology from
other countries. By building competence in adapting existing product designs and
speeding up the processes the Japanese were able to manufacture superior
quality at competitive prices, giving them a distinct advantage in world markets.

Japan showed the world that efficient production and quality control methods
could overcome transportation cost disadvantages and tariff costs. They proved
that cultural differences could be overcome and that the critical cultural points
necessary for successful production could be transferred across national
boundaries.

Japan's success as an economic superpower strongly implied that the West might
lose its world dominance as the leader in technology. Emboldened by the success
of the Japanese, other Pacific Rim countries began to follow their example, thus
accelerating the diffusion of innovative technology through-out the industrial
world. Actually, new centers of industrial superiority were created as a result.

Japan's success is also an indicator of the importance of quality as a strategic

variable. When it looked like Japan could only hope to carve out a niche as a
producer of outdated Western goods for the Asian market, Japanese leadership
came to the conclusion that it could play a leading role in global industry by
changing its quality image; a change made by producing quality goods for a
sustained period of time. The Japanese learned from the price they paid for their
reputation for inferior-quality products. They learned that quality reputations are
built by producing quality products with a painstaking attention to detail and
craftsmanship. They were also willing to make the necessary investment in
human resources and technology needed to improve their quality image.

Synonymous with the improvement in quality was a profound improvement in

Japan's position in global markets. From a weak position in the television market
in the 1960s, Japan became the world's largest producer and exporter of
household television sets in the world. They are sure to dominate the market for
the coming revolution in high-resolution television. They totally dominate the
VCR market and are challenging companies such as Intel in the market for large-
scale integrated circuits.

In the early 1960s North American, British, and German motorcycle

manufacturers lead the market. Today, Harley-Davidson is the only serious
competitor for Japanese made motorcycles. In fact, Harley-Davidson teetered on
the brink of nonexistence until wholeheartedly adopting Japanese manufacturing
techniques, most notably just-in-time and Total Quality Management. Another
example, Xerox, suffered embarrassing market share losses to Japanese
manufacturers Canon, Sharp, and Minolta.

The emphasis placed on quality by Japanese manufacturers has been continuous

since the inspiration derived from the first visit of Dr. W. Edwards Deming.
Today, Japan is certainly seen as the worldwide symbol of quality. While Western
firms measure quality in parts per thousand (the acceptable quality level or AQL),
the leading Japanese manufacturers are achieving defects that are barely
measurable, perhaps 3.4 defective parts per million. The Japanese turnaround in
quality can clearly be attributed to such variables as worker training, employee
involvement, and firm wide delegation of authority and responsibility for quality.
A change in attitude and vision on the part of Japanese top management brought
quality to the forefront as a strategic mission, one that allowed them to liberate
the creative talent and resources necessary for long-term improvement and the
eventual mastery of the quality concept.

RESPECT FOR PEOPLE

There are a number of facets to the Japanese respect for and treatment of
workers. One of the most prominent is lifetime employment, which gained
notoriety from William Ouchi's book "Theory Z". When many Japanese workers
are hired for permanent positions in major industrial firms, they can generally
consider it a job for life. However, this kind of benefit applies only to permanent
workers, about one-third of the Japanese workforce. It is felt that if workers can
stay with one firm for life, they more easily identify with the firm's goals and
objectives.

Unlike the case for American labor unions, workers who are members of
Japanese labor unions identify more with the company than the type of work they
are doing. Also, Japanese unions tend to share the management's view. The
better the company performs, the more the worker benefits. As a result, Japanese
management believes in giving the workers more opportunity to expand their job
boundaries rather than waiting until the worker proves himself. The Japanese
also spend more on education and training, for all levels, than any other
industrial nation. Also, because the Japanese believe that robots free people for
more important tasks, they have invested heavily in robotics and automated
equipment, making theirs perhaps the most automated manufacturing sector in
the world.

Another area in which Japanese management has successfully tapped into

worker potential is in the use of small group improvement activities (SGIA). One
example is quality circles, a small group of volunteer employees who meet once a
week, on a scheduled basis, to discuss their functions and the problems they are
encountering. They then propose solutions and make a sincere attempt to
implement real change.
Finally, the Japanese believe in what they call "bottom round" management. This
concept, sometimes called consensus management or committee management, is
an innate part of Japanese culture. It involves a slow decision-making process
that attempts to reach a true consensus rather than a compromise. While the
decision-making process is slow the implementation process is quite fast.

ELIMINATION OF WASTE

When the Japanese say elimination of waste they mean anything other than the
absolutely essential minimum amount of workers, equipment, and materials
necessary to meet demand. This means no safety stock, no inventory stored for
use in smoothing production requirements, and so forth. If it can't be used right
now it is considered waste.

A number of concepts are central to this idea of waste elimination. Instead of

building a large manufacturing plant that does everything, the Japanese tend to
build small plants that are highly specialized and form them into focused factory
networks. It is difficult to manage a large facility; the bigger it is the more
bureaucratic it tends to be. Bureaucracy is not conducive to the Japanese style of
management. Also, a specialized plant can be more economically constructed and
operated.

Along with the idea of smaller plants, the Japanese make considerable use of
group technology. Japanese engineers examine each operation required to make
a part and attempt to group dissimilar machines into clusters designed to be work
centers for a given part or family of parts, thus eliminating or at least greatly
shortening the time necessary for set-up and changeover.

Just-in-time (JIT) production is an important part of waste elimination. In fact,

JIT has often been defined as the elimination of waste. JIT is the production of
precisely the necessary unit in the correct quantity at the correct time in order to
maintain perfect performance to schedule. Over producing is considered just as
bad as under producing since unnecessary inventory would be wasteful.
In order for JIT to work effectively, production must flow smoothly. Any changes
can cause disturbances in the flow, which can be amplified throughout the supply
chain, causing disruptions and delays. In order to ensure a more uniform flow,
the Japanese adopt a uniform plant load. This means that they simply plan to
build the same mix of products each day. If you run some of everything you need
each day, it only takes one day before you have more (as opposed to large lot sizes
which tie up capacity for lengthy periods, causing delays in shipping).

Uniform plant loading requires that everything be produced in small lot sizes,
implying that the number of set-ups required will increase. The principle of
economic order quantity (EOQ) states that as lot sizes increase set-up costs
decrease but as lot sizes decrease set-up costs increase. Therefore, this emphasis
on small lots requires that set-up times be minimized. Instead of taking
established set-up times as a given, the Japanese have managed to reduce set-up
times tremendously, often to the point of single digits (i.e., less than ten
minutes).

The Japanese also use a self-regulating system for production control known as
kanban. It uses dedicated containers and recycles traveling requisitions/cards
(often known as kanbans themselves) to regulate the system. It is also referred to
as a "pull" system since the authority to produce or supply comes from
downstream operations.

Finally, the Japanese utilize a number of quality control techniques to ensure

maximized quality and minimized waste. Among these are jidoka, bakayoke, and
poka-yoke.

Jidoka is a quality concept that means "stop everything" whenever an error

occurs. It is controlling quality at the source. Instead of using inspectors to find
problems someone else created, the Japanese worker is his own inspector,
responsible for his/her own quality. When an error or defect is discovered, the
worker has the authority and the responsibility to halt the production process.
Usually, this is controlled by some mechanism such as push buttons. When the
line stops, lights flash, bell ring, and flags wave as all attention is directed at the
problem.

The Japanese also believe that, whenever possible, inspection should be

performed by a machine, for the sake of speed and accuracy. A technique known
as bakayoke is used for this purpose. Bakayokes are devices that are attached to
machines to automatically check for abnormalities in the process, such as
malfunction or tool wear, as well as measuring dimensions and warning when
tolerances are close to being exceeded. For manual assembly, the Japanese utilize
poka-yoke or mistake proofing.

Today, all these Japanese techniques have been repackaged and are now know as
"Lean" management techniques. Even though JIT, kanban, and other tools have
not changed in their application, the new "lean" label has removed some of the
Japanese stigma and has made the tools more palatable. With the introduction of
the lean label has also come a broader application of these principles to where
they are now being used in the service sector and in the front office, with the
same high degree of success.

JAPANESE KEIRETSU

A keiretsu is an organizational structure unique to Japanese major corporations.

While not all major Japanese businesses are keiretsu, most of Japan's major
corporate entities are. Moreover, the influence of the keiretsu on the Japanese
business world is important even to non-keiretsu organizations. There are two
types of keiretsu: the classical keiretsu and the vertically integrated keiretsu.

The so-called Big Six Japanese business groups are all examples of classical
keiretsu. These are the Fuyo/Fuji Group, Sumitomo, Sanwa, Mitsui, Mitsubishi,
and Daiichi-Kangyo Ginko. Classical keiretsu are bank-centered with no specific
central industry.

While not considered classic keiretsu, many major single-industry companies in

Japan are increasingly becoming viewed as vertical keiretsu. These include
 Hitachi, Toyota, Nissan, Toshiba, and Matsushita. These keiretsu are more
pyramid-shaped, with a single industry or company at the pinnacle of the
pyramid and the member companies collected beneath.

KEIRETSU DEFINED

Japan's keiretsu are not single entities. Each keiretsu is formed of an

interdependent collection of individual firms woven into a common enterprise. In
this, the keiretsu are similar to the Korean chaebol, but there the similarities
stop.

The keiretsu form a type of family of member companies, each connected to the
others through cross-shareholdership. In other words, each company within the
keiretsu holds significant shares of stock in each of the other keiretsu members.
The companies remain independent of each other, and are not subsidiaries of
holding companies, as holding companies were outlawed after World War II.

Additionally, the size of the keiretsu corporate families can be deceptive. Most
keiretsu have well over 100 members, while many far exceed that amount.
Hitachi alone has over 680 member firms and subsidiaries. While shareholder
control is coordinated, technically the stock of each member firm in the keiretsu
can be traded independently.

Contents of the 5S lean manufacturing Training presentation kit

Our 5 S lean manufacturing Japanese Techniques training presentation kit consists
of the following:

1. Topic wise power point presentation in 10 modules as listed below.

• Introduction to 5s
• Seiri In Details(S1)
• Seiton In Details(S2)
• Seiso In Details(S3)
• Seiketsu In Details(S4)
• Shitsuke In Details(S5)
• 5 "S" In Office
 • How To Implement 5 "S"
• Auditing of 5 S
• Waste management
• This presentation kit is having more than 100 foils, each pleasingly
presented presentation slide is designed to get the message over, and
establish a much better understanding.
2. A trainer's guide( Hand-outs)

3. Work-shops and case study presentation is given to evaluate

effectiveness of training.

The 5 'S' Process: Seiri, Seiton, Seiso, Seiketsu, Shitsuke (Page 1 of

2)

The 5S Process, or simply "5S", is a structured program to systematically achieve total

organization, cleanliness, and standardization in the workplace. A well-organized workplace
results in a safer, more efficient, and more productive operation. It boosts the morale of the
workers, promoting a sense of pride in their work and ownership of their responsibilities.

"5S" was invented in Japan, and stands for five (5) Japanese words that start with the letter 'S':
Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. Table 1 shows what these individual words mean.
An equivalent set of five 'S' words in English have likewise been adopted by many, to preserve
the "5S" acronym in English usage. These are: Sort, Set (in place), Shine, Standardize, and
Sustain. Some purists do not agree with these English words -
they argue that these words have lost the essence of the original 5 Japanese words.

Table 1. 5S Definitions

Japanese Term English Equivalent Meaning in Japanese Context

Throw away all rubbish and
Seiri Tidiness unrelated materials in the
workplace
Set everything in proper place for
Seiton Orderliness
quick retrieval and storage
Clean the workplace; everyone
Seiso Cleanliness
should be a janitor
Standardize the way of maintaining
Seiketsu Standardization
cleanliness
Practice 'Five S' daily - make it a
Shitsuke Discipline way of life; this also means
'commitment'

Seiri
The first step of the "5S" process, seiri, refers to the act of throwing away all unwanted,
unnecessary, and unrelated materials in the workplace. People involved in Seiri must not feel
sorry about having to throw away things. The idea is to ensure that everything left in the
workplace is related to work. Even the number of necessary items in the workplace must be kept
to its absolute minimum. Because of seiri, simplification of tasks, effective use of space, and
careful purchase of items follow.

Seiton

Seiton, or orderliness, is all about efficiency. This step consists of putting everything in an
assigned place so that it can be accessed or retrieved quickly, as well as returned in that same
place quickly. If everyone has quick access to an item or materials, work flow becomes efficient,
and the worker becomes productive. The correct place, position, or holder for every tool, item, or
material must be chosen carefully in relation to how the work will be performed and who will use
them. Every single item must be allocated its own place for safekeeping, and each location must
be labeled for easy identification of what it's for.

Seiso

Seiso, the third step in "5S", says that 'everyone is a janitor.' Seiso consists of cleaning up the
workplace and giving it a 'shine'. Cleaning must be done by everyone in the organization, from
operators to managers. It would be a good idea to have every area of the workplace assigned to
a person or group of persons for cleaning. No area should be left uncleaned. Everyone should
see the 'workplace' through the eyes of a visitor - always thinking if it is clean enough to make a
good impression.

Seiketsu

The fourth step of "5S", or seiketsu, more or less translates to 'standardized clean-up'. It consists
of defining the standards by which personnel must measure and maintain 'cleanliness'. Seiketsu
encompasses both personal and environmental cleanliness. Personnel must therefore practice
'seiketsu' starting with their personal tidiness. Visual management is an important ingredient of
seiketsu. Color-coding and standardized coloration of surroundings are used
for easier visual identification of anomalies in the surroundings. Personnel are trained to detect
abnormalities using their five senses and to correct such abnormalities immediately.

Shitsuke

The last step of "5S", Shitsuke, means 'Discipline.' It denotes commitment to maintain orderliness
and to practice the first 4 S as a way of life. The emphasis of shitsuke is elimination of bad
habits and constant practice of good ones. Once true shitsuke is achieved, personnel voluntarily
observe cleanliness and orderliness at all times, without having to be reminded by management.

5s Principles of Japanese Management

Dear Friends,

I need to prepare a ppt on the "5s of Japanese Mgt ie: the principles of :

1) Seiri - sort
2) Seiketsu - sanitize
3) Seiso - Sweep
4) Seiton -Systematize
5)Shitsuke - Self discipline
Why you need this product ?

The 5S concept has its origin in Japan (first within Toyota) in the later part of 20th century. Each
of the five S's denote the first letter of five Japanese words (Seiri, Seiton, Seiso, Seiketsu, and
Shitsuke) that outline the steps involved in modern workplace management / housekeeping.

The logic behind the 5S practices is that organization, neatness, cleanliness, standardization and
self-discipline at the workplace can help production of high quality products and delivery of high
quality services with little or no waste, and with high productivity.

The 5S has become the way of doing business not only to impress the customers but also to
establish effective quality processes as prerequisites for good products and services.

You may carryout the 5S training and implementation separately or as part of ISO9001:2008 /
Lean Manufacturing / Six Sigma implementation.

With its universal appeal, 5S can be effectively implemented in any organisation from any
business sector.

The learning objectives of our 5-S training kit are:

1. To understand the 5-S concept

2. To learn the 5-S implementation steps, and
3. To learn how to assess the 5-S implementation status.

We have implemented procedures,

Your Gateway to Quality, Productivity, and Safety

Seri (Say ree) - Sort and Discard

Eliminate All unneeded items.

Seiton (Say ton) - Arrange and Order

Arrange all items that are left.

Seiso (Say zo) - Clean and Inspect

Clean all areas.

Seiketsu (Say ket soo) - Standardize and Improve

Maintain the first 3S

Shitsuke (Shee tsoo kay) - Believe and Disclipline

Believe that the 5S are important