Tag Archives: Japan

Looking in the Mirror at Customer Focus

Most organizations say they are focused on meeting and exceeding customer needs. But, as a customer, this often isn’t what I experience.

Delighting customers is critical to long term business success. Satisfied customers will remain your customers until they see the opportunity for something that might be better or is cheaper. Delighted customers are loyal and much more likely to remain customers.

Delighting customers is often about paying attention to the small details. Paying close attention to customer’s jobs to be done is a powerful tool. Then apply creative thinking and a knowledge of your industry, technical possibilities and business realities to provide solutions that delight customers.

Mirror in bathroom that is usable after a shower

Photo by a colleague of mine at Hexawise in his Japanese hotel room.

This photo shows a respect for customer’s jobs to be done. In many hotels the mirrors in the bathroom are obstructed after a shower. This mirror has been designed (with a heating element behind the mirror – applying technical engineering and scientific knowledge) to allow customers to be able to use the mirror effectively in the very common use case (after they shower). It is a small detail. It is also the kind of detail that an organization focused on customer delight will get right. Matt shared this photo on Reddit and it received over 80,000 upvotes (there is an appreciation for this improvement).

FYI Hexawise is hiring a senior software testing consultant, in case you want to go see this mirror for yourself and also to work with me and Hexawise to improve customer delight with the software that impacts our lives so much these days.

Solutions must be something that is free (improving processes often reduces costs so it is not always a matter of extra cost) or something customers will pay for (business/market realities). It isn’t useful to create a solution that your customers would like enough to pay 1% extra for if it adds 15% to your costs.

As with so many management improvement strategies how a desire to delight customers is expressed is dependant on many aspects of the existing organization. You can’t wake up on day to the wisdom of delighting customers and announce this new strategy and expect anything to really change. It is dependant on viewing your organization as a system and making the appropriate adjustments to allow the organization to be optimized to delight customers (see creating a customer of customer focus and How To Create a Continual Improvement Culture).

It is critical to design the organization to maximize the potential information generated at the point where customers interact with the organization. That is not a simple thing to do in isolation (based on the current culture of most organizations today). It requires a deep commitment to continual improvement, respect for people and all the rest of the management improvement practices I have been writing about in this blog for over 10 years now.

Related: Aligning Marketing Vision and ManagementDelighting CustomersCustomers, “Internal Customers” and End UsersWhat Job Does Your Product Do? (2007)Stated Versus Revealed PreferenceInnovation Strategy

Robots for Health Care from Toyota

Japan has an extremely rapidly aging population. This increases the need for health care and for assistance with everyday tasks from the elderly. Japan is also among the leading countries for developing robots for health care and living assistance.

I have written about the efforts to have robots fill some needs in Japan previously, on this management blog and also my partner Curious Cat Engineering blog: Toyota Develops Thought-controlled Wheelchair (2012), Toyota’s Partner Robot (2007), Toyota Human Support Robot (2012) and Pepper, A Social Robot from Softbank (2017).

Most often innovation efforts take the form of understanding the jobs your customers are using your products and service for now and developing new solutions to delight those customers. This is difficult for companies to pull of successfully.

Occasionally innovation involves meeting completely new needs of customers. For example Toyota started as a loom company and is now known as a car company. Making such a radical change is not often successful.

Will Toyota be able to add robots to the products it produces successfully? I believe they have a chance. But it won’t be easy. Obviously (as shown in posts on my blog for the last ten years) I respect Toyota’s management system. That gives them a chance to be successful. The product development system is going to be critical (ideas found in: Toyota Engineering Development Process and How to Develop Products like Toyota).

Toyota Sends Robots To The Hospital

Toyota demoed its Welwalk WW-1000 robot, a machine that can rehabilitate stroke victims some 60% faster than regular physiotherapy. The company also showed glimpses of other robotic technologies, for instance a Human Support Robot that picks up stuff, draws curtains, and performs other menial tasks a bedridden patient would normally need to call a nurse for.

Toshiyuki Isobe, chief of Toyota’s robotics lab, said that the company is not fixated on being a car company. “Toyota started as a maker of looms, and only got in to cars later,” Isobe said. “Our mission always was to make practical things that serve a purpose. If there is a need for mass produced robots, we’ll make them.”

image of the Toyota support system for rehabilitation of walking in stroke victims

image of the Toyota Welwalk system

Related: Innovation at ToyotaMore on Non-Auto ToyotaDelighting CustomersToyota Engineers a New Plant: the Living Kind (to fight pollution)

Toyota Understands Robots are Best Used to Enhance the Value Employees Provide

Toyota has always seen robotics as a way to enhance what staff can do. Many USA executives think of robotics as a way to reduce personnel. Toyota wants to use the brainpower of employees to continually improve the organization. Toyota wants to free people for monotonous or dangerous work to let them use their minds.

Humans Steal Jobs From Robots at Toyota

Humans are taking the place of machines in plants across Japan so workers can develop new skills and figure out ways to improve production lines and the car-building process.

“We cannot simply depend on the machines that only repeat the same task over and over again,” Kawai said. “To be the master of the machine, you have to have the knowledge and the skills to teach the machine.”

Kawai, 65, started with Toyota during the era of Taiichi Ohno, the father of the Toyota Production System envied by the auto industry for decades with its combination of efficiency and quality. That means Kawai has been living most of his life adhering to principles of kaizen, or continuous improvement, and monozukuri, which translates to the art of making things.

“Fully automated machines don’t evolve on their own,” said Takahiro Fujimoto, a professor at the University of Tokyo’s Manufacturing Management Research Center. “Mechanization itself doesn’t harm, but sticking to a specific mechanization may lead to omission of kaizen and improvement.”

We need more companies to learn from the executives at Toyota. They show real respect for people. They are not focused on how much they can extract from the corporate treasury to build themselves castles at the expense of other employees, customers and stockholders as far too many USA executives are.

Toyota has been extremely innovative in investing in robotics as human assistants (partially this is due to the extreme demographic problems Japan faces): Toyota Develops Thought-controlled WheelchairToyota’s Partner RobotToyota Winglet – Personal Transportation Assistance.

Related: Webcast on the Toyota Development ProcessDon’t Hide Problems in ComputersAkio Toyoda’s Message Shows Real Leadership

Manufacturing Outlook and History In the USA and Globally

I write primarily about management improvement on this blog – which makes sense given the title. In the very early days I had more on investing, economic data, science, engineering and travel. Then I created three new blogs (Curious Cat Investment and Economics Blog, Curious Cat Science and Engineering Blog, Curious Cat Travel Photos blog) and that made this blog more focused.

Even so the lines of what fits where can be a bit fuzzy and I continue to write about manufacturing, and health care, with a focus on economic data, occasionally. And that is what I am doing today while touching on management related to manufacturing a bit.

As I have written before the story of manufacturing in the USA, and globally, is greatly increased quality of processes and output as well as greatly improved productivity over the last few decades. Manufacturing output also increased, including in the USA, as I have written consistently for a decade now. For example: (Top 10 Countries for Manufacturing Production from 1980 to 2010.

Still many people have the notion that USA manufacturing has been declining, which hasn’t been true, and certainly isn’t true now (the last couple of years have been especially strong and even the general public seems to realize the idea of the USA losing manufacturing is a myth).

Chart of Manufacturing Output fro 1992 to 2012 - USA, China, Japan and Germany

Based on data from the UN. See my blog post on my economics for more details on the data (to be posted next week).

The chart is impressive and illustrates the point I have been hammering home for years. The USA manufacturing base is growing and far from crumbling (job losses are deceiving as they are global and not an indication of a USA manufacturing decline). China’s manufacturing growth is incredible. China and the USA are far away the top 2 manufacturing countries. Japan and Germany make out the top 4 before a large gap which then is followed by a group of countries that are very close (Korea is 5th with less than half the production of Germany).

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Jiro Dreams of Sushi

Jiro Dreams of Sushi is a documentary on a Japanese sushi restaurant, Sukiyabashi Jiro, that is full of great quotes for those interested in continual improvement. Throughout the film people discuss a never ending focus on doing better and better – never becoming complacent.

Quotes from Jiro Dreams of Sushi:

Jiro: “Once you decide on your occupation you must immerse yourself in your work. You have to fall in love with what you do… You must dedicate your life to mastering your skill. That is the secret of success and the key to being regarded honorably.”

Jiro: “There is always room for improvement.”

Jiro: “I do the same thing over and over, improving bit by bit.”

Jiro: “I feel ecstasy every day. I love making sushi.”

Fish seller: “When you think you know it all, you then realize you are just fooling yourself.”

Food critic ~ “when you work for Jiro he teaches you for free. But you have to endure years of training.

”‹Apprentice: “But there is only so much you can learn from words. I have to keep practicing.””‹

Jiro: ~ (paraphrased and changed a bit) “When the fish gets to me the sushi is 95% complete. I prepare it in front of the customer so get the credit but the truth is the person doing the least work gets most of the credit”

Jiro’s eldest son, Yoshikazu: “Always strive to elevate your craft.”

The focus is on the dining experience in total. The meal is composed of elements that are designed to work together with the focus on quality of the individual dishes but also on the interaction between the individual items and the complete experience.

The respect for suppliers is also seen in the film. Jiro’s eldest son says (approximately) “we are experts at sushi and we know a great deal but the tuna vendor we use knows more about tuna, the shrimp vendor knows more about shrimp… we trust them.” Later Jiro says (again from my memory), “we buy our rice from our vendor because Mr. ___ (I can’t remember the name) knows more about rice than anyone else, I trust him to provide what is best for us.”

They even touch on the bigger picture. Jiro’s son: “overfishing is the problem. Finding good fish is getting harder and harder… There should be regulations enforced on only catching bigger fish. Business should balance profit with preserving natural resources.”

As with any example there are particulars that you can learn from and specifics that don’t apply well to your situation. I know next to nothing about kitchens of world class restaurants but what I do know is they seem extremely dedicated to their work (much more so than many other organizations are interested in striving for). They also seem to be more autocratic than most other modern organizations. They also seem much more focused on perfecting the process to achieve the best result even if that requires a great deal more work than some alternative that produces very good results.

Related: You’ve Got to Find What You Love (Steve Jobs Stanford address)Respect People by Creating a Climate for Joy in WorkPositivity and Joy in WorkThe Customer is the Purpose of Our Work

Leading Manufacturing Countries from 2000 to 2010: China, USA…

chart showing leading manufacturing countries output from 2000-2010

Chart of manufacturing production by the top 10 manufacturing countries (2000 to 2010). The chart was created by the Curious Cat Economics Blog. You may use the chart with attribution. All data is shown in 2010 USD (United States Dollar).

Over the years I have been posting data on the manufacturing output of leading countries. In 2010 China finally overtook the USA to becoming the leading manufacturer (long after you would have thought listening to many news sources and political leaders). In a previous post on the Curious Cat Economics Blog I looked at the output of the top 10 manufacturing countries with a focus on 1980 to 2010.

In 1995 the USA was actually very close to losing the lead to Japan (though you wouldn’t think it looking at the recent data). I believe China will be different, I believe China is going to build on their lead. There has been some talk for several years of manufacturing moving out of China seeking lower cost countries. The data doesn’t support any decline in Chinese manufacturing (or significant moves away from China toward other South-East Asian countries). Indonesia has grown quickly (and is the largest SE Asian manufacturing country), but their total manufacturing output is less than China grew by per year for the last 5 years.

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Dr. Deming in 1980 on Product Quality in Japan and the USA

I posted an interesting document to the Curious Cat Management Library: it includes Dr. Deming’s comments as part of a discussion organized by the Government Accounting Office in 1980 on Quality in Japan and the United States.

The document provides some interesting thoughts from Dr. Deming and others; Dr. Deming’s statements start on page 52 of the document. For those really interested in management improvement ideas it is a great read. I imagine most managers wouldn’t enjoy it though (it isn’t giving direct advice for today, but I found it very interesting).

Some selected quotes from the document follow. On his work with Japan in 1950:

This movement, I told them, will fail and nothing will happen unless management does their part. Management must know something about statistical techniques and know that if they are good one place, they will work in another. Management must see that they are used throughout the company.
Quality control must take root with simple statistical techniques that management and everyone in the company must learn. By these techniques, people begin to understand the different kinds of variation. Then quality control just grow with statistical theory and further experience. All this learning must be guided by a master. Remarkable results may come quick, but one has no right to expect results in a hurry. The learning period never ends.

The statistical control of quality is not for the timid and the halfhearted. There is no way to learn except to learn it and do it. You can read about swimming, but you might drown if you had to learn it that way!

One of the common themes at that time was Deming’s methods worked because Japanese people and culture were different. That wasn’t why the ideas worked, but it was an idea many people that wanted to keep doing things the old way liked to believe.

There may be a lot of difference, I made the statement on my first visit there that a Japanese man was never too old nor too successful to learn, and to wish to learn; to study and to learn. I know that people here also study and learn. I’ll be eighty next month in October. I study every day and learn every day. So you find studious people everywhere, but I think that you find in Japan the desire to learn, the willingness to learn.

You didn’t come to hear me on this; there are other people here much better qualified than I am to talk. But in Japan, a man works for the company; he doesn’t work to please somebody. He works for the company, he can argue for the company and stick with it when he has an idea because his position is secure. He doesn’t have to please somebody. It is so here in some companies, but only in a few. I think this is an important difference.

At the time the way QC circles worked in Japan was basically employee led kaizen. So companies that tried to copy Japan told workers: now go make things better like the workers we saw in Japan were doing. Well with management not changing (and understanding Deming’s ideas, lean thinking, variation, systems thinking…) and staff not given training to understand how to improve processes it didn’t work very well. We (those reading this blog) may all now understand the advantages one piece flow. I can’t imagine too many people would jump to that idea sitting in their QC circle without having been told about one piece flow (I know I wouldn’t have), and all the supporting knowledge needed to make that concept work.

QC circles can make tremendous contributions. But let me tell you this, Elmer. If it isn’t obvious to the workers that the managers are doing their part, which only they can do, I think that the workers just get fed up with trying in vain to improve their part of the work. Management must do their part: they must learn something about management.

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Deming Prizes for 2011 go to Companies Based in India, Taiwan and Thailand

image of the Deming Prize medal

The Union Japanese Scientists and Engineers (JUSE) has awarded the Deming Prize to 3 companies in 2011:

Follow the links I included for the companies to see a bit about their management philosophies. As has been the case since 2000, India and Thailand again did well. Between them the are home to 27 of the 38 award winning organizations.

I have moved to Malaysia and have started some work in Singapore helping organization improve management performance, maybe we can get those 2 countries represented in the coming years (this isn’t a short term effort). I may also do some work in other parts of Asia and Australia.

Organizations receiving the Deming Prize since 2000, by country. Prior to 2000, nearly all winners were from Japan:

Country Prizes
India 17
Thailand 10
Japan 7
USA 1
Singapore 1
China 1
Taiwan 1

The 2011 Deming Prize for Individuals went to Mr. Masamitsu Sakurai, Chairman, Ricoh Company, Ltd. (Japan). Previous recipients include: Kaoru Ishikawa, Genichi Taguchi, Shoichiro Toyoda, Hitoshi Kume and Noriaki Kano.

Related: 2010 Deming Prize2009 Deming Prize2008 Deming Prize: Tata SteelDeming Prize 20072006 Deming Prize

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2010 Deming Prize

image of the Deming Prize medal

The Union Japanese Scientists and Engineers (JUSE) has awarded the Deming Prize to 4 companies in 2010: Corona Corporation (Japan), Meidoh (Japan), GC Dental (China) and National Engineering Industries Limited (India).

Organizations receiving the Deming Prize since 2000 by country (prior to that almost all winners were from Japan):

Country Prizes
India 16
Thailand 9
Japan 7
USA 1
Singapore 1
China 1

This is the first time a Chinese company has won a Deming Prize. The parent company, GC Dental (Japan), was awarded the Deming Prize in 2000 and the Japan Quality Medal in 2004.

The 2010 Deming Prize for Individuals went to Dr. Takao Enkawa, Professor, Department of Industrial Engineering and Management, Tokyo Institute of Technology. Previous recipients include: Kaoru Ishikawa, Genichi Taguchi, Shoichiro Toyoda, Hitoshi Kume and Noriaki Kano.

Related: 2009 Deming Prize2008 Deming Prize: Tata SteelDeming Prize 20072006 Deming Prize
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Toyota’s Journey to Lean Software Development

Toyota’s journey from Waterfall to Lean software development by Henrik Kniberg

Toyota builds cars (duh). In the past that didn’t involve much software, and the little software that was needed was mostly developed by suppliers and embedded in isolated components. Toyota assembled them and didn’t much care about the software inside. But “The importance of automatic electronic control system has been increasing dramatically year by year” said Ishii-san.

A modern car is pretty much a computer on wheels! In a hybrid car about half of the development cost is software, it contains millions of lines of code as all the different subsystems have to integrate with each other. He mentioned that a Lexus contains 14 million lines of code, comparable to banking and airplane software systems. Ishi-san concluded that “Therefore Toyota needs to become an IT company”.

Most of Toyota’s ideas about how to do Lean software development resonated well with me. My feeling was that they are on the right track.

One thing bothered me though – the extreme focus on detailed metrics. I agree with the value of visualization, standardization, and data-driven process improvement – but only if used at a high level. My feeling was that Toyota was going to far. They say engineer motivation is critical, but how motivating is it to work in an organization that plans and measures everything you do – every line of code, every hour, every defect, how many minutes it takes to do an estimate, etc?

via: Justin Hunter

Related: Toyota IT OverviewToyota Canada CIO on Genchi Genbutsu and KaizenLean Software DevelopmentMy First Trip to Japan by Peter ScholtesToyota IT for Kaizen