MOTILAL NEHRU NATIONAL INSTITUTE OF TECHNOLOGY

ALLAHABAD 211004

School of Management Studies

QUALITY MANAGEMENT - 01

Submitted to:- Made By:-

Dr Somen Dey Abhishek Tripathi(2020RMS09)

 ASSIGNMENT 1

CASE STUDY

How Japan Caught Up with the United States and How the United States Caught Up with
Japan Again
Immediately following World War II, the quality of products produced by Japanese companies
was not good enough to compete in the international marketplace. The only advantage Japanese
companies had was price. Japanese goods, as a rule, were cheap. For this reason, Western
manufacturers, particularly those in the United States, saw the Japanese threat as being rooted in
cost rather than quality. Reading the future more accurately, albeit belatedly, Japanese
companies saw quality as the key to success and, in 1950, began doing something about it. While
Japanese companies were slowly but patiently and persistently creating a quality-based
infrastructure (people, processes, and facilities), American companies were still focusing on cost,
shift in the manufacture of labor-intensive products offshore and, at the same time, neglecting
infrastructure improvements.
By the mid-1970s, the quality of Japanese manufactured goods in such key areas as automobiles
and consumer electronics products was better than that of competing American firms. As a
result, Japanese exports increased exponentially, while those of Western countries experienced
corresponding decreases. This explains how Japan rose up out of the ashes of World War II to
become a world-leading industrial nation. But the story does not end there. After losing market
share to the Japanese for more than two decades, companies in the United States began to
embrace the principles of quality management. As a result, by the mid-1990s companies in the
United States had reasserted themselves in the global marketplace. Now, the two countries are
like well-matched heavyweight boxers who slug it out every day in the world of global business.
On any given day, either can win the global business battle. There are no longer any automatic
winners. Regardless of whether they are Japanese or American, those companies that adhere to
the principles of quality management and continually improve are the ones that will win in
today’s marketplace.
Question
Why do you think that companies in the United States were slow to adopt the quality
management principles Japanese companies had used to gain market share worldwide?

Answer
Companies in United States are unable to follow Quality management principles which include

1. Customer Focus : The focus is to meet customer requirement and to strive to exceed
customer expectation,
- It is an increase in customer satisfaction
- It is an increase in customer values
- There is an expansion of the customer base.

United states were unable to follow as they believe in cost effectiveness and not guarantee
quality in product but Japan believe in quality improvement.

2. Leadership: Leadership at all level establish unity of purpose and direction and create
conditions in which people are engaged in achieving the quality objectives of the
organisation.
The management of Japan is very effective in handling people and process whereas
United states focus on price of the product
3. Engagement of People: It is essential for the organisation that all people are competent,
and engaged in delivering value and Japan is very effective in delivering process.
4. Process approach: Japan has effective in process approach as they are quality driven.
5. Improvement: Japan works on maintaining current level of performance, to react to
change in internal and external condition and to create new opportunities whereas USA
still not believe in continuous improvement
6. Evidence based Decision Making: Decision based on the analysis and evaluation of data
and information are more likely to produce desired result Japan has people process and
skill to enhance their quality of the product
7. Relationship Management: Japan managed their relationship with other parties.
USA started following the principles and now they both are global market players.