“The research register for this joura is available at ‘The cument sue and fl text archive ofthis journal savallble at Iipslwww.ancbup.comiresearch registersquality.asp btpelwww.emeraldlibrary.com, T]QRM 172 132 Anahi & Challenge to world-class manufacturing H. Yamashina Kyoto University, Kyoto, Japan Keyeords Worttcass manacturn, Toll productive mantenac, TM, Jestonsine Abstract Deals with the basic requirements for world-class manufacturing and discusses the role of total productive maintenance (TPM) in helping to achieve world-class manufacturing. Examines the roles of TPM in TQM and JIT. Finally, impacts of TPM on the culture and structure of the organization are discussed and pitfalls of TPM implementation are dealt with. Provides an in-depth look at the development of Japanese manufacturing strategy and concludes with the view that the first step to world-class manufacturing is to implement TPM successfully ‘and to create an active organization. Introduction It is Japanese policy to create prosperity through industrialization and there is little doubt that the development of the Japanese economy has been well supported by the growth of manufacturing industry. In Japan it is firmly believed that the prosperity of a nation depends on the excellence of its production capability and that those who conquer manufacturing will eventually conquer technical innovation. It has been the Japanese commitment to continuous technical innovation in manufacturing industry that has allowed it to become a leading economic power. Currently, however, Japanese manufacturing companies are facing very tough competition primarily due to the appreciation of the yen and the dramatic improvements in competitiveness from both the advanced countries and the rapidly growing still-developing countries. The objective of this paper is to provide an insight into the strategies currently being adopted by Japanese manufacturers in an effort to meet the challenge of obtaining world-class manufacturing status to cope with these very serious irst, the basic understanding for competitive manufacturing from the of organization and human resources are discussed. Second, the strategies used by Japan in the past are considered, combined with a discussion of the strategies ‘being implemented by Japanese manufacturing firms to help maintain and strengthen Japan's competitive edge toward world.class manufacturing. Third, the role of total productive maintenance (TPM) to help reach world-class manufacturing is discussed and the roles of TPM in TQM and JIT are examined. Finally, impacts of TPM on the culture and structure of the organization are discussed and pitfalls of TPM implementation are dealt with. Organization and human resources Product technology and process technology One way of looking at the continuing evolution of the Japanese approach is indeed hdivancenReetasnx to consider the techniques that have been adopted in the West — justin-timeproduction, total quality management, statistical process control, total productive maintenance, etc. They are certainly important, and Japanese firms are continuing to refine and perfect them. But confining the study to the mechanics of production risks discounts the importance of more subtle, long- term factors of organization and human resources in the pattern. In this light, it is more useful to think of the future of competitive manufacturing as human. integrated manufacturing (Yamashina, 1994). To understand what this means, it is necessary to step back and look at the wider manufacturing picture. Unlike firms in the West, the Japanese have always believed that products and the processes by which they are made are two sides of the same coin. Process technology is as important as product technology. The two go together. In the same way, they also believe that creative development goes together with, and is as important as, creativity in invention. Table I shows five examples of important consumer products which were developed by Japanese firms after having been originated in the West. Far from more “copycatting”, as some Western businessmen like to think, Japanese companies consider these as textbook examples of commercial creativity. It is true that, since World War II, Japan has been able to license or buy patents of attractive products from the West. This is especially the case for consumer goods. For that reason, in the pursuit of competitive manufacturing, its companies have been able to focus more attention and channel more resources into production techniques than their Western counterparts. Japan has made a concerted effort to strengthen its manufacturing capability over the last three decades. Over the last 30 years manufacturing techniques sections, departments, centers, headquarters and R&D have been added to organizational structures to support manufacturing capability through improvements in manufacturing technique. Japanese companies actively employ engineers. Japanese Ministry of Education figures from 1990 show that Japanese staff with science degrees totaled 14,217 (1990) compared with 68,520 in the USA (1988). Even after adjusting for the difference in population (the USA is about double Japan's population) science graduates are far more common in the USA. In the UK the number of science graduates was 21,900 in 1988 — the UK’s population is half that of the Japanese but still the UK has more science graduates. This, however, is in stark contrast to the situation in engineering — 86,115 in Japan versus 15,200 in the LIK. Even in the TISA the number af engineering graduates still totaled only 126,341, Item Originator Developer ‘Transistor radio Regency Sony VCR Ampex Sony, Victor Tv RCA Matsushita Rotary engine ‘Vanehel Mazda o@ Philips Sony World-class manufacturing 133 ‘Table I. Invention and developmentYJQRM 17,2 134 Figure 1. Six categories of production staff A dloser look at the production process To be able to manufacture attractive products at attractive prices, companies need not only plant and equipment but also different types of production staff. Competitive Japanese firms identify the key categories as: + basic research engineers; + applied research engineers; + product development and design engineers; + production design engineers; + process improvement engineers; and + operators. Japanese companies generally concede that in basic research they are inferior to the West. In applied research and product development, honors are about even. In preproduction and process improvement, however ~i.e.on the factory floor — the advantage shifts decisively to Japan (see Figure 1). In particular, Japanese engineering skills have been applied more consistently and intensively than in the West to the three crucial areas of quality management, value added per employee and the shortening of lead times. ‘These policies are reflected in company organization. Comparing companies of similar size and business arca in Japan and the West, the Japanese firm uscs morc engineers in applied research, product development and design and process improvement and far fewer operators in daily work. It is not just that there are more engineers in the “applied” areas; in each category the level of knowledge required is higher than in the West. The inevitable conclusion is that, as a total production resource, the Japanese company is much stronger than its Western counterpart. Key categories Traditional B (@)- Basic research i (b)-Applied research (©)- Product development and design r [Ba (6) Process Engineer (pre-production) i a (0) — Process Engineer (provement) i ° (Operator Noa pee a os E & o Lo a Nurber epee World Class