SPECIAL FEATURE
Strength of Japanese MONOZUKURI
– Factors for greater competitiveness
F
rom June 4 to 15, 2007, the
Ex- ecutive Program on
Monozukuri (Japanese Art of
Manufacturing) was held at TKC. As
part of the program, a lecture on
the Competitive Strategies of
Japanese Manufacturing Companies
was given by Mr. Hiroshi Ito, the
Spe- cially Appointed Researcher of
Manu- facturing Management
Research Cen- ter at the University
of Tokyo, on June
5. The following is the article on
the lecture that Mr. Ito
contributed to KENSHU
magazine.
Introduction
Many so-called Japanese baby-
boomers are due to retire in 2007.
This has been accompanied by
heightened concerns about
shortages in the sources of
expertise in monozukuri. The word
monozukuri is often used to refer to
unique techniques or skills. Around
the world, many people have
unrivalled skills or manual dexterity
which may be essential in the
creation of artworks. However,
making prod- ucts to please many
customers requires the
organizational capability of
monozukuri.
Product-related factors such as
price, design, brand influence,
service, performance/function and
cost are, so to speak, tangible forms
of competi- tiveness and customers
have a direct understanding of these
factors. In con- trast, intangible
factors related to per- formance at
the development and the
production sites, cannot be readily
perceived by the customers. These
fac- tors include the productivity of
Summer, 2007
the production processes, the
production costs, the defect rate, 1965: Graduated from the Faculty of
the time taken for development, Engi- neering, Yamagata University.
development pro- ductivity and Started work with Honda Motor
Co., Ltd., as- signed to the mold
the production period
design section of the mold
plant.
Engaged in the commercialization
of compound vortex controlled
combus- tion (CVCC) engines,
body engineer- ing and technical
assistance to the Brit- ish
automaker, Rover.
1989: Appointed director of Honda
Engineer- ing Co., Ltd.
2004: Took up post as Specially
Appointed Researcher at the
Manufacturing Man- agement
Research Center, Faculty of
Economics, the University of
Tokyo.
or lead time. Tangible
competitiveness is supported by
intangible competi- tiveness.
Monozukuri staff members try
every day to consistently maintain
and develop tangible
competitiveness. What gives the
Japanese practice of monozukuri
its strength? The follow- ing
discussion is based on my experi-
ence of working at an automaker
from the perspective of an
individual en- gaged in
monozukuri.
Definition of monozukuri
Professor Fujimoto of the
Manufac- turing Management
Research Center, the University of
Tokyo, who special- izes in
monozukuri economics, defines a
product as the copy of design data
into a material, namely a
medium. Literally speaking, the
Japanese word “monozukuri” is a
combination of “mono” (goods)
and “tsukuru” (manufacture).
Usually monozukuri is translated
1
into “production” or
“manufacturing.” However, these
words are both too narrow in mean-
ing to a c c u r a t e l y r e p r e s e n t
monozukuri. No English word can be
associated with a broad meaning that
may include development, production,

Mr. Hiroshi Ito

Specially Appointed Researcher
Manufacturing Management
Research Center,
the University of Tokyo

procurement and service, as well as

both tangible and intangible qualities.
It may be described as a combination
of technology and operations to in-
clude development, production and
procurement. But this is too wordy.
After all, the J a p a n e s e term
monozukuri sounds most suitable.
In other words, monozukuri is a
chain of processes to create, copy,
dis- tribute and communicate to
custom- ers design data that are
valuable to them. The important
thing is to smoothly deliver to
customers the de- sign data having
good copy quality.
D es ig n data r e p r e s e n t s the
company’s attitudes to its users. Con-
sistently allowing the right attitude
to permeate into the company’s
organi- zations and accurately
copying it for the users is the goal
each manager has to achieve. A
company cannot grow unless the
development and produc- tion staff
correctly understand the messages
that the product, namely the hardware,
is meant to deliver. In par- ticular,
automobiles have many func- tional
requirements. In addition to the basic
performance of running, turn- ing
corners and stopping, the scope

2 KENSHU No. 182

of the requirements also extends to counterattack. The Western system
petitive power in the emerging Japa-
safety, comfort and factors that cor- of mass produc- tion with a large,
nese auto industry. Based on an under-
respond to environmental friendliness. heavy, long, bulky line would not
standing of these facts, the problems of
The engine, transmission, body, have worked as com-
Western-style mass production were
sus- pension and many other parts
analyzed and an incessant flow of high-
oper- ate, mutually
mix, low-volume production with a
supplementing each other. This is
correct understanding of design data
exactly how an automo- bile is
was established. This is Japan’s own
configured. The use of design
production system. The commitment to
drawings or a prototype to make a
quality control led to quality im-
product requires a thorough under-
provements, to the establishment of
standing of what the product is
more efficient processes represented by the
really intended to provide the user.
just-in-time (JIT) production sys- tem
Other- wise you would only be
and to cost reductions as a result of
tracing the drawings. You must
Toyota Production System (TPS) and
understand the intention of the
other kaizen activities. They can also be
design drawings, pre- pare
considered improvements of orga-
schedules for the processes, pre-
nizational capability to enhance the
pare for production, procure the
intangible competitiveness mentioned
com- ponents, conduct the
above. [See Figure 1]
production ac- tivities and engage
The organizational capability of
in the sales. Monozukuri is a chain
monozukuri involves integration, im-
of all of these processes made
provement and advancement. The fol-
before the product is delivered to
lowing are analyses of these capabili-
the user. Monozukuri re- quires
ties as factors that contribute to the
organizational capability, and
strength of Japanese monozukuri.
improvements in organizational capa-
1. The fusion of production technolo-
bilities should also be adapted to
gies involving the product develop-
so- cial changes. The level of
ment sector and suppliers facilitates
organiza- tional capabilities
development that tends to be simul-
differs between companies. Yet
taneous. This is intended to ensure an
this is where compa- nies compete
accurate understanding of the design
and where the differ- ences between
philosophy and to shorten
the companies emerge.

The strength of Figure 1: Strengths of Japanese Automobile Manufacturing

Japanese monozukuri Continued strengthening of deeper-layered competitive edges
Th e s t r e n g t h of J a p a n e s e
monozukuri was not created over-
night. It is the result of theAmalgamation
efforts between product development & production engineering
made by managers, laborers and
Concurrent development
sup- pliers against a variety of
Procurement of parts with function warranty
historical backdrops. TheseIntegrated
people parts order system
handled the difficulties created
Highlybyeffective and efficient production system, supported by improved quality of work
Watergate in the United States, the
Streamlined constitution of manufacturing, including JIT and Kanban sys- tem
oil shock of the 1970s, emission
Quality workforce
controls, the collapse of the so-called
Management based on respect for people, including seniority system and lifetime employmen
Bubble Economy in Japan and other
unanticipated circum- stances that
arose through economiz- ing, through
reviewing business prac- tices,
through working on research and
development and through explor- ing
new fields. In this way, they suc-
cessfully minimized the damage and
looked for a chance to
 the development period.
2. Consistency and reliability of
the main line are improved
by making sure that
components from suppli- ers
are delivered as subassemblies
in which functionality is
guaranteed.
3. Systems of high-mix, low-
volume production have been
established and facilitate
flexible model changes.
The systems include the JIT
system, the Kanban system,
Total Productive
Maintenance (TPM) and so
forth, which are con- cerned
with making a variety of
products only when
necessary and in the quantity
needed. This allows a
company to reduce costs
without having unnecessary
inventory.
4. As a result, the company’s
produc- tion system is
streamlined into a shorter
production line, fewer staff
members and greater
production ef- ficiency.
Tr adi tio na ll y, the
company’s management has
been based on respect for
personnel as represented by
the seniority system and
lifetime employment. There
has been an increasing
tendency for workers to
acquire multiple skills. The
so-called 5S (seiri, seiton,
seisou, seiketsu and
shitsuke; namely keeping
things in order, ti- dying up,
cleaning, keeping things

clean and discipline) and the activi-
ties of total quality control (TQC)
improve the routines.
If we consider monozukuri as a
copy of design data, we can
understand the importance of
combining all pro- cesses,
including development, pro-
duction preparations, purchase
and procurement, production,
sales and service, to make sure all
products ac- curately reflect their
design data. The JIT system, the
Kanban system, TPM and 5S are
tools intended for every member of
the production staff to share the
understanding on specific
problems and to find and
implement appropriate solutions.
Characteristics of Honda’s
monozukuri
Honda was established after
World War II. The two founders,
Soichiro Honda and Takeo
Fujisawa, advo- cated respect for
human dignity in- cluding the
independence, equality and trust
of individuals and the three forms
of joy obtained through buy- ing,
selling and creating. Based on this
corporate philosophy, Honda has
been Figure 2: Crystallization
◆ Realization of origin of
manufacturing
Ⓧ • Die, facility
• Independency production system
of technology in inde
pendent company
Make Space for Technology
Transmission of Philosophy
System of practice evaluation
• Form HM to HG and EG
Ⓧ • Highly efficient but small
Ⓧ •Evolution
number of project Matrix organization Making platform
concentration
Concentrate on single point
Ⓧ •Take up to 2nd floor then remove ladder
Defeat separation
Surprise attack tactic
E=mgh+–1mv2
Ⓧ In general, a company is
2
SPECIAL FEATURE
supported by the understanding
and respect of individuals who work
for the company, as well as the
numerous efforts to share and put
into practice this philosophy. Honda
is Japan’s lat- est maker of four-
wheeled automo- biles, being
founded 25 years after Toyota. The
practice of its corporate philosophy
and the originators’ ac- tions,
advice and guidance to fill the 25-
year gap formed the basic philoso-
phy of Honda’s monozukuri. At
times when Honda lagged behind
its com- petitors in human resources,
funds and materials, the originators
gave prior- ity to devoting more
time for product development,
production system, pro- duction
equipment and machinery to
process the equipment. This is
based on the idea that everyone
has too many things to finish and
there are only 24 hours in a day.
[See Figure 2] Concerning product
development, the philosophy has
become more com- mon in some
forms of competitiveness seen today.
Having originated from a very small
enterprise, Honda since the outset
has had no boundary separat- ing
product development, production
technologies, the manufacturing sector
for Car Making
◆ Shearing of information
Ⓧ •SED system...simultaneous
•Design in...from past
•Agile...strong point
•Concept in
Handing down of Honda’s
management philosophies:
flat organization and project
and procurement/purchasing. It
was natural for the company to
adopt con- current interdepartmental
engineering or simultaneous
engineering. This helped keep all
individuals concerned fully informed
of the design data and created an
uninterrupted flow from process to
process. In this way, Honda built a
system that was able to quickly
deliver the products to the users.
Being Japan’s latest four-wheel
automaker also meant that it could
dispense with the existing rules regard-
ing production equipment and the
line configuration. Ironically, this
fact en- abled Honda to go back to
the basics of car-making and to
establish its own monozukuri
systems.
Concerning production technologies,
Honda directed its attention to
mate- rials while its monozukuri
attached importance to press
working and mold working such as
injection and die cast- ing. This is
based on the idea that it is
ineffectual to waste materials and
pro- duce a large volume of powder
in a resource-deficient country such
as Ja- pan. As a result, Honda’s
components became increasingly
integrated. Whereas competitors
tried to make the flows more
standardized and to facili- tate them
by simplifying and separat- ing the
processes, Honda keeps its lines lean
by concentrating as many tasks on
one process as possible. This
prevents the quality from
deteriorating, which may occur
when a product is moved. In
addition, the transport of products
is streamlined and more economical
use is made of space and
investment. This unique production
system is an essen-
tial characteristic of Honda that dis-
tinguishes it from its competitors.
systems
organized in the form of a
pyramid. Honda, however, is different
because it is more project-oriented.
Projects may start either in a top-
down or a bottom-up manner. The
leader of a project basi-
cally has an equivalent level of author- goals.
• Winning a race involves more than
ity to that of the president in running • Even though you can successfully
having a good driver. It requires good
the project. Each member of an orga- make a good car, you cannot com-
teamwork with a coach, technicians,
nization independently takes part in pete in a race if it is too late. Time
engineers and management staff.
the project to focus on his or her own management is very important.
• Cultivate the will to win. If you lose,
commitment. On the assumption that
identify the cause and do everything
the strength of Japanese manufactur-
necessary to solve the problem by the
ers lies in the people at worksites, it
time you compete in the next race.
is more effective to give authority to
• Last, you need to have flexibility.
a project and increase the sense of
Conditions differ between grounds
ful- fillment thereby enabling the
and between courses. You must al-
workers to find reasons to work hard,
ways be ready to flexibly adapt
than to focus on the comparatively
yourself to change.
few man- agers in the organizational
pyramid .
Unlike its competitors, Honda is not
Evaluation of the processes is
the type of organization that carefully
very important in running a
climbs a mountain step by step. Being a
project. Achieving a goal requires
late entry in the market, Honda has fo-
making an evaluation at each
cused on its dreams and visions right
milestone in the overall process. In
from the start. To use the metaphor of
Honda, the project team and those
mountain-climbing, Honda pays less
who evaluate their performance
attention to its feet than do its competi-
enthusiastically ex- change views
tors. Instead, Honda works its way
in pursuit of overall im- provement.
around cliffs and valleys to find alter-
Therefore, the project sys- tem is also
nate routes. The company’s founder said
an opportunity to develop human
that success accounts for only one per-
resources and to hand down
cent, with failures accounting for the
Honda’s philosophies. In other
other 99%. People’s expectations of
words, it is a system that naturally
Honda have remained constant despite
equips staff members with
the continual changes that engulf the
capability in integra- tion, in
world. Since the starting point of its
making improvements, and in
foundation, Honda has always quickly
advancement, all of which are the
built a system that corresponds to the
ba- sic factors for improving the
changing time and keeps the company
organi- zational capability of
focused on its customers and to take any
monozukuri.
necessary actions accordingly.
Through its efforts in the Formula
One (F1) car race, Honda may
Conclusion
gener- ally be regarded as a
As mentioned earlier, competitive-
technology-ori- ented company.
ness in monozukuri depends on orga-
However, the improve- ments of its
nizational capability. While organiza-
unique technologies and making
tional capability consists of individu-
them practicable depend on how
als’ abilities, individuals would not be
they are run, namely the organi-
equipped with the specific skills with-
zational capability of monozukuri.
out belonging to their organization.
[See Figure 3]
There is a limit to what can be accom-
The reason Honda has
plished alone. It is important to focus
participated in the F1 race is that the
everyone’s skills and abilities on a spe-
company was founded by car
cific objective. The knowledge and
enthusiasts and since its foundation,
documents given out during training
the spirit of racing has con- tinued to
sessions are not meant to be kept by
thrive within the company.
each individual alone. They should be
The following ideals encapsulate
shared so that they can gather a sig-
the spirit of racing.
• Everything starts from having an
ambition and trying to achieve

Summer, 2007 7
 catching up with and
Figure 3: Racing Spirit surpassing your competitors.
Seek the Challenge Moreover if you consider a
Ready on Time difference more positively and
Competitive Mind focus on using it better, you may
Flexible be part of the force that
outstrips even that of a
developed nation.

nificant amount of power and

so that they can enable people
to quickly achieve their goals.
Imagine a situation in which a
design drawing was leaked.
Without an under- standing of
the real intention behind the
drawing, no one would be able to
accu- rately copy the series of
processes that the document
represents, from finding
materials to completing the
product. Some unique and
important parts of Japanese
production systems, such as TPS,
the commitment to finding im-
provements, the JIT system and
5S, can- not be effectively
implemented without the
accurate understanding of those
who use them. After all,
monozukuri is the work of a
human. We will experience
changes in society, technical
innovation, concerns about the
global environment and many
other problems and trends in the
future. This is a major
opportunity to achieve goals
that are still left unachieved in
developing countries. Taking
this opportunity requires mak-
ing the optimum use of the
things that distinguish you from
your competitors. The difference
can either be expressed
numerically as values, or it may
mean being qualitatively
different. As long as you work
for a company or an organi-
zation, you play some role. If
you are assigned to something
you are good at, you will be
more willing to improve,
irrespective of the difficulty that
it may entail. The numerical view
of difference, if applied to inter-
company relation- ships, leads
you to nowhere other than