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Why Japanese factories work

Hayes, R. H. 1981. Why Japanese factories work. Harvard Business Review (July-August): 57- 66.
Summarized by Jose M. Luis Master of Accountancy Program University of South Florida, Fall 2000 Purpose: To answer the question why Japanese manufacturing has become so successful and competitive. Background: - 20 years ago, Americans pictured the Japanese factory as a sweat shop making shoddy products. - Today, Americans imagine gleaming factories peopled by skillful robots the factory of the future. - In fact, it is the factory of today, running as it should. - Achieved excellence by doing simple things, doing them very well, and improving them all the time. What Hayes saw:
1. Clean, orderly work places

- Workers uniforms, machines and floors were clean. Sources of litter & grime carefully controlled. - Workers were responsible for keeping machines and workplaces clean and in good order. - "If you clean up the factory floor, you clean up the thought processes of the people on it, too".
2. The "root of all evil" eliminated.

- Suppliers often made three or four deliveries a day. - Finished goods were removed immediately to a warehouse or shipped to customers. - Buffer inventories were unnecessary, why?
3. Keeping Murphy out of the plant.

- Preventing machine overload. Japanese use, Americans abuse machines. - Preventive maintenance, constant cleaning & adjustment, reduced rates of use. - Comprehensive machine monitoring and early warning systems to check process flow, tolerance, rate of use. - No-crisis atmosphere. Production schedules set 2 weeks in advance. No expediting, no overloading. Attitudes and practices of Japanese managers:
1. "Pursuing the last grain of rice in the lunchbox".

- Pursue quality beyond the point of cost effectiveness. Goal: ZERO DEFECTS. - "A defect is a treasure". Why? - Quality means: Error-free operation. Problem can be design, inventory, delivery, not just a defective product. - Quality is not achieved by random decisions but by an allencompassing management system supported by the top.
2. "Thinking quality in".

- Planning - Careful planning in the design stage with engineers, production, quality assurance, sales, etc. - Training - Train workers to deliver consistently high-quality products.

- Feedback - Encourage workers & quality inspectors to identify and correct problems. No "we against them". - Materials Intensive screening of incoming parts and materials. Pressure on suppliers to improve quality. - The same conditions which promote defect-free operations also increase productivity.
3. Time consciousness: everlasting customers, lifetime employees,

supplier-partners, owners. Codestiny.


4. Equipment independence.

- Design and fabricate most production equipment in-house. - No safety margins and design cushions that manufacturers build into generalpurpose machines. Re-solving the problem of production

Competition on grounds of reliable, low-cost, defect-free products & dependable delivery hurt U.S. firms. The Japanese have never considered the problem solved. Always improving "the factory of the present". U.S. managers must: emphasize teamwork, value and train employees, not isolate themselves.

According to Hayes, the key to competing with the Japanese: Putting our best resources and talent to work doing the basic things a little better, every day, over a long period of time. Is he right, or is innovation a better idea?

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