The Japanese Way: Monozukuri and total quality control

When it comes to quality, nobody does it quite like Japanese mandufacturers

At the beginning of its rapid industrialization following World War II, Japan imported many concepts from the United States and United Kingdom on factory management and statistical quality control. But over the proceeding decades, Japanese manufacturers left its competitors in the U.S. and U.K. behind, thanks to their ability to produce high-quality goods at a competitive cost.

Noted for his quality management innovations, Japanese organizational theorist Kaoru Ishikawa (1915-1989) is considered a key figure in the development of quality initiatives in Japan. During the 80s he released four books on the topic of quality control.

“To practice quality control is to develop, design, produce and service a quality product (...) To meet this goal, everyone in the company must participate in and promote quality control, including top executives, all divisions within the company and all employees,” he wrote in What is Total Quality Control? The Japanese Way.

Companies like Toyota became renowned for following such an approach. The world-famous Toyota Production System follows the principals of Monozukuri, which revolves around the spirit of not only producing excellent products, but also the ability to constantly improve the production system and processes. Japanese manufacturers both large and small have adopted these principals of Monozukuri, which has helped to set them apart from their competitors when it comes to quality.

“One of the main differences between Japan and competing countries such as Korea and China is that we have good teachers and leaders from companies like Toyota and Honda that have taught Japan a lot,” says Mr. Jumpei, Kojima President of IMV Corporation, which, with its 350 employees, manufactures vibration testing systems and measuring systems for the automotive, electronics and construction industries.

“Because of the influence of such companies, we kept growing with repeated trial and error to meet their high requirements. They encourage and enable us to grow ourselves.”

Aside from an uncompromising dedication to quality and reliability in products and production processes, Mr. Shinkichi Suzuki, President and CEO of Kawakin Holdings Group, says that another distinguishing feature which sets Japan apart from the likes of China and South Korea is the fact that “Japanese corporations make a lot of efforts in customizing their products to fit to their customers’ needs.”

Through its subsidiaries, Kawakin manufactures a range of high-tech products that provide safety and reliability in engineering fields for buildings, bridges, industrial machinery, energy, automobiles, ships and other sectors. These include steel, iron and wax castings, rolled steel, seismic isolation and vibration control systems for buildings and bridges, hydraulic cylinders and injection moldings.

“Our main competitive advantage is our extensive and diverse product portfolio,” says Mr. Suzuki. “We can adapt to all kinds of structures, from bridges to buildings, including schools, hospitals and factories. The ability to offer to our customers so many different components makes us a one-stop shop. Instead of establishing business partnerships with separate companies, Kawakin’s customers can rely on us as a sole provider for all products needed.”

“Before cars, make people” is a famous quote of former Toyota chairman, Eiji Toyoda; and “making people” is certainly a priority for Japanese companies like Toa Koki, which manufactures engine components for both cargo and passenger ships for customers around the world.

“We have the same mindset as companies like Toyota and Suzuki. We take good care of our employees, especially our highly skilled employees and those with expert knowledge,” says company president, Mr. Wataru Mitsutake.

“It is extremely important that the top-level workers teach the younger generation. Under this

“Japanese people are perfectionists and as such their work ethic is to always strive for perfection” Shuhei Toyoda, President. Toyota Boshoku Corp.

“The Japanese value system takes pride in its own creation, and the meaning of Monozukuri is to differentiate oneself by reaching for uniqueness” Kengo Fukaya, President Fuji OOZX “Japan has used the supply chain system driven by OEMS as in the Toyota, Nissan, or Honda supply chains, and this system continues to provide high-quality” Teruaki Nakatsuka, President, JATCO

training system, twenty-year-old employees were ranked 8th at the Monozukuri Championship in Japan last year.”

Of course, for Japanese multinationals, training often involves the training of staff in factories and subsidiaries overseas. These companies ensure that the values of Monozu

kuri and high-quality standards are adopted by their workers abroad.

“At Sanyo Chemical, we outsource some of our productions to our overseas subsidiaries. It is essential that the high level of production and product quality is sustained regardless of where the products are made,” says Takao Ando, President of Sanyo Chemical Industries.

“We train our overseas staff members to reach the same level of education as our Japanese workforce. This is the main way we ensure our quality and technology is transferred to our overseas affiliates. As part of the training we have a special study, education and motivational program, which include experts introducing them to Japan and ensuring that they have the necessary knowledge about technology and Japanese Monozukuri.”

Japanese Monozukuri has faced stiff competition from the likes of China and South Korea in recent decades, who can offer lower cost products. In the forging manufacturing industry for example, China now controls around 40 percent of the global market share.

Ohmi Press Work and Forging has been involved in the metal forging business since 1951, making highquality parts for Japan’s famous bullet trains, ships, the aerospace industry and construction machinery. The company has seen firsthand the rise of Chinese competitors offering cheaper products. As a result, Ohmi’s main goal has been to use its 67 years of experience to reduce its costs, while also maintaining and even improving the quality of its products.

“It is clear that China and Korea have a very large presence in this market. However, there is no doubt that Japan has a higher quality of steel and other materials than any of its competitors. In addition, it is not only about materials but it is also about the facilities and the factories we have here in Japan,” says Ohmi president, Koichi Sakaguchi.

“Japan cannot compete in terms of price, or even quantity, but without a doubt, Japan has the advantage of the quality. Finally, there are so many companies here in Japan that are specialized in one area and have many years of experience. For me, these are the main advantages of the Japanese forging sector compared to the competition.”

Another company involved in the metal business, Okabe celebrated its 100th anniversary last year. The company began as a manufacturer of small bolts, but thanks to large investments in R&D, is now a world leader in the manufacturing of building structural products,

“Recently, we have focused on producing products which are earthquake resistant. We have developed acute expertise in technologies linked to disaster prevention. By exporting our historical knowledge, we will contribute to the creation of a safer and more prosperous world,” says president, Mr. Makoto Hirowatari.

The company has had a presence in the U.S. for 40 years through Okabe Inc., which distributes automotive parts. It expanded its presence in the U.S. in 2002 by establishing OCM, which mainly trades construction material. “The recognition of our OCM brand has been successful and rapidly growing,” says Mr. Hirowatari.

In 2005, it acquired Minneapolisbased automotive parts manufacturer, Water Gremlin, which has also been a major success for the company. Since then it has set up subsidiaries in Italy in 2007 and China in 2012.

“Our main competitive advantage is linked to the unrivalled quality of our products. At Okabe, we put quality on a pedestal, and our clients recognize us for this,” adds Mr. Hirowatari. “Secondly, we treat environmental friendliness with an acute attention to detail. Complying to environmental criteria is one of our trademarks.”

Automotive industry

Car manufacturers like Toyota and Nissan depend on local Japanese original equipment manufacturers (OEMS) to supply components for their automobiles. These OEMS must comply with Toyota and Nissan’ high standards of quality, which means Monozukuri principals pervade the whole supply chains.

“Japan has used the supply chain system driven by OEMS as in the Toyota, Nissan, or Honda supply chains, and this system continues to work effectively and efficiently to provide high-quality,” says Mr. Teruaki Nakatsuka, President and CEO of JATCO, which produces continuously variable transmissions (CVTS, a type of automatic transmission) for Honda, Nissan and Suzuki.

“CVTS are very complicated products that require Monozukuri excellence. The beauty of the CVT is its fuel efficiency and flexibility, and it is in itself an ecofriendly product. Better fuel efficiency will provide significant value to society.

“CVT involves making the best use of power from the engine to provide smoother performance, so all car manufacturers can benefit from our new developments and the results will be very beneficial for the environment.”

“One good thing for JATCO is that Nissan is the 75-percent shareholder of our company. All transmission

companies need to work closely with OEMS and partners, including when they conduct R&D, as transmissions are long-term products. We are lucky to have Nissan with us. OEMS are front runners in adapting to new environments and new technologies.

Genchi Genbutsu means ‘Go and See’ and it is a key principle of the Toyota Production System and, indeed, the production systems of its subsidiaries like Toyota Bokushu. It suggests that in order to truly understand a situation one needs to go to genba (‘the real place’) where work is done.

“Toyota Boshoku firmly believes in doing things in the way of Genchi Genbutsu,” says Mr. Toyoda. “It is very important for everyone at Toyota Boshoku to understand and practice this philosophy. Japanese people are perfectionists and as such their work ethic is to always strive for perfection and that is why we excel in producing high-quality products.”

Another Japanese automotive supplier that strives for perfection, as well as to create eco-friendly products, is FUJI OOZX. The company manufacturers engine valves, which are a core part of a car engine and essential to overall engine performance.

“The mass production of hollow engine valves is our current challenge,” says president, Mr. Kengo Fukaya.

“For our company, the car of the future is one that has engine valves with the best engine efficiency and high performance. At FUJI OOZX, we believe that our technology will open up new possibilities.”

The company has maintained its leading position in product development based on its research into raw materials, which are supplied by its parent company, Daido Steel.

“Our valve material is made of a special kind of steel. Our parent company supplies these materials to us. Our superior technology cools the temperature of the valve, allowing for greater performance and resistance,” explains Mr. Fukaya.

Mr. Fukuaya believes the true strength of the Japanese people – the search for creation and improvement – is most visible in the manufacturing industry. “Since the beginning of our history, Japan has placed high value on teamwork,” he adds. “This has created the concept of Monozukuri. This spirit, no matter how big the company gets in size, is highly valued. Toyota for example, despite being enormous in size, still applies the philosophy of Monozukuri.”

While FUJI OOZX looks to develop high performance engine valves for the cars of the future, Elastomix is developing next-generation rubber materials for the electronic vehicles (EVS) that will become more commonplace on the road in the coming years.

“The trend now is shifting with the rise of EVS and consequently the requirements are changing. EVS heat up much more than conventional cars and therefore rubber compounds must be more heat-resistant. This new trend is affecting not only Elastomix but the whole industry,” says Mr. Kazushi Abe, President of Elastomix.

“Unlike other players, however, we are pioneering solutions for electric vehicles. With our knowhow and dedicated R&D center, we are developing new and better performing materials.”

Elastomix has over 50 years of experience in manufacturing rubber compounds for the automotive industry, which makes up 50 percent of its business. Aside from automotives, its rubber compounds have various applications: in structural joints, antivibration systems for buildings prone to earthquakes, railways, gaskets, seals and semiconductors.

Elastomix remains a relatively small company, but for president Ka- zushi Abe, smaller means better: “Our competitive advantage lies also in the size of the company. Unlike many other very large companies in other countries which tend to increase the output by lowering down costs, we are a smaller-sized enterprise that is able to oversee every detail in the manufacturing process, thereby yielding higher quality products.”

“Its thanks to our continuous communication with clients that we ensure the highest quality of our products and we are able to customize every detail to match the clients’ requirements. This is what represents for me the Japanese seal of quality and what I think puts Japanese Monozukuri a step ahead of other global competitors.”

“We are a smaller-sized enterprise that is able to oversee every detail in the manufacturing process, thereby yielding higher quality products.” Kazushi Abe, President, Elastomix “Our main competitive advantage is linked to the unrivalled quality of our products. At Okabe, we put quality on a pedestal, and our clients recognize us for this” Makoto Hirowatari President, Okabe “There is no doubt that Japan has a higher quality of steel and other materials than any of its competitors” Koichi Sakaguchi, President, Ohmi Press Work and Forging