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Transferring Japanese Kaizen Activities To Overseas Plants in China
Transferring Japanese Kaizen Activities To Overseas Plants in China
Transferring Japanese Kaizen Activities To Overseas Plants in China
www.emeraldinsight.com/0144-3577.htm
IJOPM
28,6 Transferring Japanese kaizen
activities to overseas
plants in China
518
Katsuki Aoki
Faculty of Economics, Kanto Gakuin University, Japan and
Received 19 October 2006
Revised 17 May 2007 Cardiff Business School, Cardiff University, Cardiff, UK
Accepted 21 October 2007
Abstract
Purpose – The purpose of this paper is to examine management practices in transferring Japanese
kaizen activities to overseas plants. The aim is to provide a greater understanding of organisational
capabilities that facilitate an incremental organisation-wide innovation.
Design/methodology/approach – Case studies of nine medium- and large-sized Japanese
auto-parts overseas plants in China were conducted. The data were analysed by comparing the
successful cases of management practices concerning the transfer of Japanese kaizen activities to
overseas plants with unsuccessful ones. Based on the assumption that learning is situated in the
context, the concept of communities of practice promoted by Wenger is used as the analytical
framework of this study.
Findings – The results of the comparative analysis show some common characteristics of
management practices in successful cases: they actively used team-based rather than individual-based
suggestion schemes; they had human resource practices that emphasised the importance of having
workers who could do more than one job and long-term employment; and the managers of successful
cases conducted shop floor visits to check the work processes every day.
Originality/value – This study suggests the necessity for the researchers and practitioners of kaizen
to consider a healthy balance between three types of organisational capabilities that encourage
workers’ self-initiative, facilitate cross-functional communication, and discipline workers.
Keywords Japan, China, Continuous improvement, Manufacturing systems,
Automotive components industry
Paper type Research paper
Introduction
The concept of kaizen (or continuous improvement) has received much attention as a
key to Japan’s competitive success (Imai, 1986). Over the past few decades, a
considerable number of studies, which have focused on Japanese manufacturing
techniques (Schonberger, 1982), the Toyota production system (TPS) (Liker, 2004;
Ohno, 1988), or lean production (Womack et al., 1990; Womack and Jones, 1996), have
illustrated the importance of kaizen. Furthermore, studies of kaizen activities in
countries outside Japan, such as Australia (Chapman et al., 1997), Sweden (Lindberg
and Berger, 1997) and the UK (Oliver and Wilkinson, 1992), suggest that the concept of
International Journal of Operations & kaizen have become routinely accepted throughout the world.
Production Management In contrast to the worldwide diffusion of the concept of kaizen, many researchers
Vol. 28 No. 6, 2008
pp. 518-539 have illustrated the difficulties for many companies outside Japan to have kaizen
q Emerald Group Publishing Limited
0144-3577
activities take root in organisations (Bateman and David, 2002; Bessant et al., 1994). In
DOI 10.1108/01443570810875340 fact, as the comparison of key performance indicators between Japanese, UK and US
auto-parts manufacturers by Oliver et al. (2002) shows, there is still a large gap in terms Transferring
of the effects of kaizen activities between Japanese and western companies. This Japanese kaizen
highlights the necessity to understand not only the details of the implementation of
kaizen activities in countries outside Japan, but also the nature of Japanese kaizen activities
activities itself in more depth.
Studies on transferring Japanese kaizen activities to overseas plants would be helpful
for this understanding, because these allow us to approach management practices by 519
examining the well-suited context of Japanese kaizen activities in countries outside
Japan. The transfer of Japanese kaizen activities to overseas plants has been researched
as part of the studies on transferring Japanese management practices to overseas plants
in the USA (Abo, 1994; Kenney and Florida, 1993; Liker et al., 1999), the UK (Elger and
Smith, 2005; Oliver and Wilkinson, 1992; Saka, 2004), and China (Hong et al., 2006a, b;
Taylor, 1999). These studies suggest that the implementation of Japanese kaizen
activities in overseas plants is situated in the cultural and social contexts. For instance,
Hong et al. (2006b) illustrate that it is difficult to get active participation from frontline
workers in kaizen activities in China, and suggest that great management efforts are
needed to create well-suited contexts for Japanese kaizen activities, such as introducing
an open plan plant and office layout, and importing daily communal rituals from Japan.
This study examines management practices in transferring Japanese kaizen
activities to overseas plants through the case studies of nine Japanese overseas plants
in China. Based on the assumption that learning is situated in the context (Lave and
Wenger, 1991; Nicolini et al., 2003; Suchman, 1987), the concept of community of
practice (COP) promoted by Wenger (1998) is used as the analytical framework of this
study. The usefulness of this perspective in analyzing kaizen activities is highlighted
by the studies that illustrate the divergence between kaizen methods and the actual
practice on the shop floor (Baxter and Hirschhauser, 2004; Jørgensen et al., 2003).
Muda elimination
Analytical framework
Communities of practice and the transfer of Japanese kaizen activities
The previous section illustrated that Japanese kaizen activities are supported by the three
types of organisational capabilities. However, as many researchers suggest, the reason
why organisational capabilities can be a source of competitive advantage is that they are
difficult to imitate by others (Barney, 1991; Grant, 1991; Hamel and Prahalad, 1994). The
organisational capabilities that have been developed through their own history and
consist of complex social relationships are difficult to transfer to other plants.
This study addresses the issue of the transfer of kaizen activities to overseas plants
through the concept of COP promoted by Wenger (1998). In this perspective, people
learn something through participating in a practice, and also develop their identities
through the participation (Lave and Wenger, 1991; Orr, 1996; Wenger, 1998). Here, the
concept of practice means, “doing in a historical and social context that gives structure
and meaning to what we do” (Wenger, 1998, p. 47). According to Wenger (1998),
the COP involves a group of people who mutually engage in a practice through
negotiating meaning, jointly pursue their own enterprise, and share resources for
negotiating meaning, such as routines, words, tools, ways of doing things and so on.
This perspective suggests that the transfer of Japanese kaizen activities cannot be
achieved only by introducing formal procedures in the overseas plants. As Brown and
Duguid’s (1991) argument of divergence between canonical and noncanonical practices
suggests, actual practice cannot be controlled completely through formal procedures.
In the strict sense of this perspective, the knowledge concerning Japanese kaizen
activities is not transferable to overseas plants, because the meaning of an activity is
always situated in the local context (Brown and Duguid, 1991; Suchman, 1987).
Instead, people in overseas plants can produce their own meaning of Japanese
kaizen activities by participating in these activities. Management practices are able to
allow the people to create their meanings of Japanese kaizen activities by providing
them with a context to learn Japanese kaizen activities. It is such management practices
that lay the ground for implementing Japanese kaizen activities in overseas plants.
Methodology
A case study methodology (Eisenhardt, 1989; Yin, 2003) was used to examine
management practices concerning the transfer of Japanese kaizen activities in nine
medium- and large-sized Japanese auto-parts overseas plants in China (Table I). This
aimed to look at generic processes concerning how management practices that support
the three types of organisational capabilities work in transferring Japanese kaizen
activities to overseas plants in China. Multiple-case sampling was employed to
strengthen the confidence of findings (Miles and Huberman, 1994). The main intent
was not to conduct random sampling, but to follow replication logic (Yin, 2003).
A cross-case comparative analysis was conducted in order to look for within-group
similarities as well as inter-group differences (Eisenhardt, 1989).
Sample plants were selected with the aim of investigating the intensified management
efforts to transfer Japanese kaizen activities to overseas plants. Automotive-related and
China were two key factors in the case selection. First, the parent companies of all these
plants were Japanese auto-parts manufacturers that have made an intensified effort to
implement kaizen activities with the help of the customers or Japanese automotive
manufacturers (MacDuffie and Helper, 1999; Womack et al., 1990). Second, as the growth
of automotive production in China, that is estimated to produce more than 10 million cars
by 2010 (Nihon Keizai Shimbun, 2007), suggests, automotive-related companies have
The aim was to investigate not only the implementation of Japanese kaizen activities in
China (topic 2), but also the environment surrounding this implementation (topic 1),
and management efforts in creating well-suited contexts for Japanese kaizen activities
(topic 3). In the framework of COP, it is actual practice that gives workers meaningful
experiences, not formal methods. Therefore, the interviewees were asked about details
on how kaizen activities and related management practices were implemented, in
particular about the opportunities for participation by workers.
In the analysis, the data concerning management practices that support type A, B and C
capabilities were selected and classified according to their type. Concerning type A,
management practices that offer workers opportunities for participating in kaizen
activities through voicing matters concerning their work processes were selected.
Concerning type B, management practices that enable plant members to get in touch with
people from different functions and communities, and also HRM practices that support
cross-functional communication were selected. Concerning type C, management practices Transferring
that aim to make workers adhere to company rules and work standards were selected. Japanese kaizen
However, difficulties arose because management practices, such as suggestion schemes
and QC circles, are implemented in different ways depending on the company, and cannot activities
be classified into only one category. For example, a QC circle can be a place where workers
actively participate in kaizen, and can thus be classified as type A. However, in one of the
investigated companies, QC circles were conducted among people higher than team 527
leaders. Therefore, when classifying the data, the author paid close attention to the way
certain management practices were implemented. When describing the results of the
analysis (“basic findings” in this paper), the author always tried to bear in mind the various
ways certain management practices were implemented.
Data analysis included multiple readings of the data collected through various
channels, such as interview transcripts, field notes, and documents given to the author
by the investigated companies. In order to minimize interviewee’s bias, data collected
from the semi-structured interviews were carefully compared with the data from
unstructured interviews on the shop floors and plant observations. In the unstructured
interviews, interviewees were asked to explain tangible examples in detail in order to
improve the reliability of the data. In the case of tools and equipment, interviewees
were asked questions such as which exact part was improved through which kaizen
activities, and who was involved in the improvement.
Basic findings
Management practices in supporting type A capabilities
Concerning type A capabilities, case D and H in group 1 and case J in group 2 had a
place in which shop floor workers participated in kaizen activities, considered kaizen
ideas, and suggested the ideas as a team. This management practice is considered to
give workers a place in which workers have a meaningful experience of kaizen through
negotiating meanings with each other, i.e. a COP. These three plants also actively used
ideas from operators to improve their work processes and equipment. However,
although operators in each case made suggestions, it was people higher than team
leader level that played a major role in actually improving work processes, tools and
equipment.
Case D held small group activities on a regular basis (QC circles and suggestion
committees every Wednesday), in which workers considered and suggested kaizen
ideas. This plant had a policy to revise work standards in response to the results of QC
circles and suggestions from operators as quickly as possible. It was team leaders that
played a major role in improving work standards in this plant. Although, the engineers
prepared the documents that were used to make work standards, the team leaders
judged the appropriateness of the procedures described in the documents, and asked
engineers to revise the documents;, i.e. they had a real say in improving work standards.
Case H had a team-based piecework system. In an ordinary piecework system, a
standardised way of working determines the upper limit of a piecework rate. In this
plant, however, it is possible to achieve a higher piecework rate by improving the tools
that the workers use by themselves. The MD of this plant noted that although the
Japanese staff initially provided most of the ideas for improving tools, most of the
recent ideas were suggested from the workers as a team. In addition, this plant has a
policy to share a good idea from operators with the whole plant.
Group 2 Group 1
Large
Case J Case D, H
Figure 2.
Four groups of sample Group 4 Group 3
cases Small
Case A, B, C, F,G Case E
Case J also had QC circles and a suggestion scheme as in case D, and thus gave workers a Transferring
place to have a meaningful experience. However, this plant had a more individual-oriented Japanese kaizen
suggestion scheme than in case D. In case J, a suggestion was written down by an
individual worker on a preset form, and was evaluated in terms of the estimated effects of activities
its implementation. This plant had a monthly board of review in which the management
evaluates the suggestions. The worker could get a monetary reward for the suggestion
through this evaluation process. In contrast, the suggestion scheme in case D was 529
conducted as a part of small group activities and did not provide a monetary reward to the
individual worker who made a suggestion. In this scheme, a leader who was selected from
among group members played a coordinating role in a group.
Both case D and J had a management practice that gave workers a challenge or hint
to conceive kaizen ideas. As an example of case D, the author saw a noticeboard that
had 15 sheets of hints about kaizen written by the MD. One kaizen hint included charts
on how to identify the difference between repaired products and defective products. He
mentioned his aim of this practice as giving workers clear goals in order to increase
their self-initiative to create better things.
Most of the cases in group 3 and 4 did not have a place in which workers considered
and suggested kaizen ideas as a team, such as QC circles. Therefore, it was only
possible to observe very few management practices concerning type A capabilities
from these cases. Case G had a QC circle whose participants were only the people
higher than team leader level. In fact, the MD of this plant said that Japanese staff were
the main people who conceived kaizen ideas. Case E also implemented kaizen only
among people higher than assistant managers.
Although most of the cases in group 4 gave workers an opportunity to make a
suggestion, managers in these plants noted that the plants were not in a position to link
such a scheme to kaizen implementation. As an example of this position, a production
manager of case B reported that, although defective products were rare in Japan, nearly
half of the products were sent for repair in this plant. He explained that the operators
were of the opinion that, “When defective products arise, one only has to send them in
for repair.” Concerning the reason why it is difficult to implement kaizen with the
involvement of operators, the deputy MD in case C put forward three reasons:
(1) there is a large difference of salaries between management and workers;
(2) it is easy to implement kaizen according to the ways decided by management; and
(3) operators frequently move to other companies.
Conclusion
In conclusion, the implications for the studies on management practices in transferring
Japanese kaizen activities, or organisational capabilities that facilitate an incremental
organisation-wide innovation, to overseas plant are summed up in the following three
points:
(1) Management practices that try to support one of the three types of capabilities that
encourage workers’ self-initiative, facilitate cross-functional communication, and
discipline workers are able to achieve significant effects in combination with the
support of the other two types of capabilities. It is necessary to create a healthy
balance between the three types of organisational capabilities.
(2) Shop floor-based disciplinary methods play a major role in transferring Japanese
kaizen activities to overseas plants. These methods are able to give people in
overseas plants not only an opportunity to learn kaizen activities, but also a source
of understanding that provides the legitimacy to engage in kaizen activities.
(3) Communication between different functions makes it possible not only to
improve their equipment, but also to create the support systems to maintain the
equipment with just the people in the overseas plant.
As stated earlier, in Japanese kaizen activities, management had to make a trade-off
between type A and C capabilities. In order to address this issue, this study concludes it
is necessary to further examine shop floor-based disciplinary methods. The successful
cases made good use of such methods. As the “red-handed” practice in case D illustrates,
managers are better able to make the linkage between company goals and workers’
operations comprehensible, when it is based not only on canonical descriptions (Brown
and Duguid, 1991), such as work standards and company rules, but also on a concrete
situation or actual practice. This suggests that such shop floor-based methods may lead
to the sharing of company goals between workers and management, and may also
produce a trust relationship between them.
In order to further examine this hypothesis, it will be necessary to develop a framework
that is useful to investigate the relationship between management practices and trust
relationships between different actors. Using Wenger’s (1998) concept of COP, it is
possible to address this issue by focusing on the three modes of belonging (engagement,
imagination, alignment). As Wenger (1998) suggests, an essential duality is inherent in
COPs that not only create meaningful experiences for the participants, but also hold them
hostage to such experiences. COPs create discontinuities between those who have been
participating and those who have not (Wenger, 1998, p. 103). However, few studies have
addressed this issue in the context of the implementation of actual management practices,
such as kaizen. Further research should be focused on issues such as how individual actors
IJOPM achieve a healthy balance among the three modes, and how the combination of the three
28,6 modes leads to trust relationships within and between COPs.
Concerning the research methodology, some future tasks exist. This study has not
fully examined social and historical aspects of management practices, such as conflicts
and power relations among various plant members. To address such issues, it is
necessary to conduct diachronic studies on single cases that cover interviews with
536 various members, such as workers, supervisors, engineers and managers. Moreover, in
order to approach the complexity of individual management practices in depth, more
participative methods, such as participant observation, are needed.
Some future tasks also remain concerning the generalisability of the results. This
study has not fully examined the influence of cultural factors in China on the
adequateness of management practices. For example, it can be questioned if Japanese
methods that emphasise discipline work better in countries, such as Europe and
the USA with a longer history of implementing Japanese kaizen activities than China.
Thus, there is a need for cross-national case comparisons in order to examine the
cultural differences of the implementation of Japanese kaizen activities.
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Corresponding author
Katsuki Aoki can be contacted at: kaoki@kanto-gakuin.ac.jp