24th International Conference on Production Research (ICPR 2017) ISBN: 978-1-60595-507-0 MANUFACTURING IN AND FROM JAPAN

K. Takahashi, K. Morikawa, K. Nagasawa Division of Electrical, Systems and Mathematical Engineering, Faculty of Engineering, Hiroshima University 1-4-1, Kagamiyama, Higashi-Hiroshima 739-8527, Japan

Abstract In Japan, companies have continuously improved the performance of quality, cost, delivery, environment, safety, and morale of Japanese Manufacturing Systems (JMS) by using unique management approaches, total quality management (TQM), production system (TPS), and total productive maintenance (TPM). After the introduction, they are implemented by many companies and organizations not only in Japan but also all over the world. Also, in modern Japan, Industry 4.0, IoT, and AI are considered, and various activities are promoted. In this paper, the literature on the research topics and methodologies related to TQM, TPS, and TPM are reviewed. Also, by referring the empirical studies on TQM, TPS, and TPM in overseas companies, the findings and issues to transfer them are discussed. Also, the current situation on the recent practical activities and academic research are reviewed.

Keywords: TQM, TPS, TPM, Industry 4.0, IoT, technology transfer.

1 INTRODUCTION activities are mainly initiated by governments and Previously, “Made in Japan” was a word to show low price companies in Japan, and only a few academic research on and low-quality products. However, it has been changed to these topics has been considered. This paper reviews the a reasonable price and high quality. For the change, in current situation of the practical activities and academic Japan, not only specific some companies but also many or research and shows remaining research issues on these all companies have continuously improved the topics. performance of quality, cost, delivery, environment, safety, and morale. One reason is that Japan was in economic 2 JAPANESE MANUFACTURING SYSTEMS (JMS) development, but the other is that Japanese manufacturing system (JMS) and Japanese management system are Many JMSs utilize management approaches, TQM, TPS, established and promoted in Japan. In this paper, in JMS and TPM. In this section, the overview and research on the with three management approaches, TQM, TPS, and TPM three management approaches are explained. are considered, and the influence upon Japanese 2.1 Total Quality Management manufacturing and the manufacturing all over the world are considered. Also, by reviewing the recent activities in Overview of TQM Japan, the remaining issues in the future of Japanese TQM is one of management approaches related to quality manufacturing are summarized. control (QC). QC is a process by which entities review the In the activities of improving the performance, total quality quality of all factors involved in the production. However, in management (TQM), Toyota production system (TPS), and Japan, the management approach related to QC is total productive maintenance (TPM) can be pointed out as developed and revolutionized. management approaches developed in Japan. After At first, in 1950, statistical quality control (SQC) is introducing the approaches, they are applied to many introduced to Japan by Deming, and total quality control companies and organizations not only in Japan but also all (TQC) popularized by Feigenbaum is introduced. TQC over the world. For promoting the management stresses involvement of all departments in addition to approaches, various research topics and methodologies, production (e.g., accounting, design, finance, human such as quality function deployment (QFD), Just-in-Time resources, marketing, purchasing, sales). Then, the (JIT), Kanban system, U-shape line are developed and introduced TQC is modified into Japanese TQC or implemented. In this paper, the literature on the research Company-Wide QC (CWQC) and then to TQM by defining topics and methodologies related to TQM, TPS, and TPM concepts, tools, and principles and integrating bottom-up are reviewed, and future directions are shown. approach such as QC circle activities. Furthermore, the markets, suppliers, and manufacturing Research on TQM sites of Japanese companies spread not only in Japan but also all over the world, and global supply chains that Including some methodologies, TQM as a management include global suppliers, manufacturing sites, and approach is developed and implemented by many distributions, become popular. Then, the optimization and Japanese companies. Also, the academic issues have management of global supply chain are requested. For the attracted interest and attention from researchers. Empirical purpose, JMS and the management approaches, such as research on TQM surveyed literature or companies to TQM, TPS, and TPM, should be deployed to all the global clarify the effects on company’s performance and the sites. The success of the deployment significantly depends critical factors [1][2][3][4][5]. For example, Porter and on the technology transfer, and by reviewing the literature Parker [1] picked up the following eight factors from a on technology transfer of TQM, TPS, and TPM, the literature survey and discussed the effects of the materials research topics and academic research are discussed in of TQM awards winning companies. this paper.  The role of management leadership and quality policy. Also, in recent Japan, Industry 4.0, IoT, and AI are  The role of the quality department. considered, and various activities are promoted. Recent  Training of employees.

462  Product/service design. Research on TPS  Supplier quality management. Not only many companies but also many researchers were  Process management. interested in TPS, and many research papers on TPS or  Quality data and recording. LM were published. TPS is developed and implemented as  Employee relations. a management approach for companies. Academic issues Also, some papers reviewed the literature and found have been considered, and the effectiveness of the critical factors in TQM (for example, [2][3]). developed methodologies have been evaluated. Then, many papers for empirical studies for companies and In the various methodologies and techniques in TQM, literature reviews are published. Recently, Jasti and Kodali Policy Deployment, Ishikawa Diagram, quality function [14] reviewed the literature on lean manufacturing and deployment (QFD), and QC circle were developed in introduced an increase in the empirical study. Empirical Japan. studies were conducted for evaluating the effectiveness of Hoshin Kanri, or Hoshin Management, was developed by TPS or LM. Matsui [15] analyzed the effectiveness of JIT in Yokogawa Hewlett-Packard in Japan in the early 1970s, Japanese companies, and Thun et al. [16] evaluated TPS and Jolayemi reviewed the literature on the Hoshin Kanri principles in utilizing Kanban system empirically. Also, as [6] and the two best practices models [7]. TPS includes many methodologies, researchers were tried QFD is also a method developed in Japan in 1966 to help to find the main ideas and methods, and Spear and Bowen transform voice of customer (VOC) into engineering [17] and Towill [18] clarified the DNA of TPS. characteristics for a product, and it has been applied As it has many interesting contents, TPS has been successfully by many Japanese, American, and European researched from various viewpoints. Many papers were companies for their product development. The concepts published, and they were categorized [19] and reviewed in and methods were reviewed by Chan and Wu [8]. For each category, such as JIT principles or philosophy [20], utilizing QFD effectively, a method for rating the Kanban system [21][22][23], U-shape line [24] and importance of customer needs was proposed. Also, QFD production smoothing [25]. was utilized for various problems, and the biggest JIT in TPS is a principle in accomplishing TPS and problems of QFD are evaluated from an empirical survey improving the performance. However, JIT and especially of UK companies [9]. Kanban system has been considered as an interesting Ishikawa cause and effect (CE) diagram developed by topic and great impacts on researchers. Kanban system is Ishikawa is a popular tool to investigate and identify considered as a research topic for analyzing, comparing, numerous different causes of the problem. For Ishikawa improving the performance, and applying to other CE diagram, not so much literature has been published. manufacturing and non-manufacturing systems. Also, Only a method for analytically estimating the causes of the determining the number of Kanbans is considered as an problem and building CE diagrams was proposed [10], and interesting topic. For U-shape line, line-balancing were CE diagram was applied to practical plants with Pareto considered as an interesting research topic [24]. U-shape diagram for reducing quality defects [11]. line and multi-skilled worker lead to more flexible line such QC Circle is an activity in TQM and a driver of TQM to as bucket brigades. Also, production smoothing is for promote TQM to companies in Japan as shown above. reducing the fluctuations of production quantity [25]. The value of QC circle in TQM was studied by Sherwood The effects of TPS on US manufacturing, inventory et al. [12]. Also, QC circle is valuable for knowledge increased or decreased, were investigated [26]. creation and organizational learning, and the value of QC circle was evaluated by Seo et al. [13]. 2.3 Total Productive Maintenance The methods developed by Japanese, Policy Deployment, Overview of TPM Ishikawa Diagram, quality function deployment (QFD), and TPM is a production management approach which has QC circle, are all for clarifying the complicated relationship been developed in Japan in 1971. TPM was considered as between policy and tactics, cause and effects, or activities for improving the productivity of equipment in enhancing the motivation of workers, and they show the production departments. Recently, it is considered as characteristics of TQM activities. activities of overall companies including design, 2.2 Toyota Production System technology, and indirect operations departments. TPM seeks to improve the productivity of equipment Overview of TPS extremely, however, at the same time, TPM creates a TPS is one of Japanese management approaches and an corporate culture which constantly strives to eliminate loss integrated socio-technical system developed by Toyota by changing the way of thinking of employees through Motor Corp. (TMC). TPS comprises its management overlapping small group activities within sites to achieve philosophy and practices, and it is explained as a the Three Z’s, Zero Breakdown, Zero Defects and Zero production system which is steeped in the philosophy of Accidents. The main activities in TPM are improvement "the complete elimination of all waste" imbuing all aspects activities for equipment and facilities by small groups. of production in pursuit of the most efficient methods. TPS was established based on two concepts: "jidoka" and Research on TPM "Just-in-Time." The two concepts of TPS are realized by Unlike TQM and TPS, TPM has no original methodology some technologies, means, and activities, including that has been developed and attracted attention from continuous improvement activities by small groups. researchers, especially Japanese. Most of the researches After introducing TPS, many companies and academic on TPM are for evaluating the effects and factors of TPM. researchers not only in Japan but also all over the world TPM has been introduced into many companies, and the were interested in TPS, and MIT started a big project on reported cases show the effectiveness to improve the TPS. However, the topic of the project was not TPS but performance of introduced companies. Also, many lean manufacturing (LM) in 1990. research papers reported the effectiveness and factors of success. McKone at al. [27][28] surveyed plants where TPM is implemented and analyzed what kind of plants had

463 utilized TPM and the impacts of utilizing TPM. They were been transferred into all over the world. Since 1976, clarified that managerial factors such as JIT, TQM, and International Convention on QC Circle have taken place Employee Involvement are more important to the execution every year, and many presentations and delegates have of TPM programs than environmental and organizational come from India, Malaysia, , and Korea. Original variables, such as country, industry, equipment age, QC circle in Japan was suitable for Japan where all of equipment type, company size, plant age, and Japanese sought to improve their life including the works in unionization. Wang [29] and Jeon et al. [30] proposed to companies, and QC circle activities by the group are use Data Envelopment Analysis (DEA) to evaluate the appropriate for Japanese culture to do not by an individual efficiency to implement TPM. Also, Attri et al. [31] but by the team. The promotion of QC circle in and proposed a graph theoretic approach to evaluating the Africa shows similar situation or culture in the countries. intensity of barriers in implementing TPM. Many papers for evaluating the effects of TQM have been In TPM, for increasing equipment efficiency extremely, published. In the papers, the effects of TQM were improvements activities and maintenance activities are evaluated based on the surveyed results for companies implemented into all over the plant. The necessary that implemented TQM and the critical factors to implement education and training are prepared, and 5S for the TQM successfully and improve the performance of primary activities are prepared and implemented as companies were identified. The papers [4][5] for the organizational culture. All of those are practically literature review were also published. In the literature, meaningful. However, they are not so academically papers for empirically study on TQM implementations in interesting. As a result, compared with the literature on specific countries are included. TQM and TPS, not so much literature on developing Figure 1 shows that TQM has direct and indirect effects on methodologies related to TPM has been published. performance, and organization learning or company non- financial performance is a mediator of the indirect effects. 3 TECHNOLOGY TRANSFER OF JMS Effects of TQM: positive Now, many Japanese manufacturing companies produce products not only in Japan but also over the sea, and [34] Italia, USA, France, TQM, TPS, and TPM are transferred into the overseas Germany Factors of TQM: sites for improving the performance of the sites. Also, JMS [36] , [39] India developed in Japan and is directly transferred to overseas Culture: [36] Spain, [38] Iran [40] Hong Kong companies with TQM, TPS, and TPM. In the direct Barieers: [41] India [42] Indonesia transfer, first JMS can be transferred to some companies in some countries without modification. However, it cannot Factors TQM Perforrmance be transferred to the others. In this case, some kinds of modifications should be considered for utilizing JMS to improve the performance. Mediator Ebrahtmpour and Schonberger [32] studied the transfer of Mediator between TQM & Performance : JIT in TPS and TQM to developing countries and mentioned multi-skilled workers as a critical issue. Also, Organizational learning: [35] Turkey, [37] Takahashi et al. [33] surveyed Japanese companies in Company Non-Financial Performance: Indonesia and analyzed the current status of business, [41] India, [43] Turkey progress of technology transfer, and the four kinds of Figure 1. Results of empirical studies on factors and factors. As a result, it was clarified that improving not only effects of TQM. education for workers and staffs but also improving the systems for enhancing the motivation of workers and staffs The countries for the empirical studies are in Asia except lead to an increase of the average score and current status for Spain. As a result, it can be claimed that TQM is of business. attracting interests from overseas, especially Asian companies, and TQM has effects on the performance of Based on this results, it can be understood that JMS can the companies mainly in Asia, that is, developing countries be transferred to other countries. However, the transfer where improving quality is one important issue. However, needs careful consideration of the difference of conditions for achieving fruitful results of TQM, avoiding barriers and and the idea to overcome the difference. The following constructing appropriate culture such as organizational sub-sections show technology transfer of each of JMS, the learning and trying to improve non-financial performance issues, and the countermeasures. should be considered. As remaining issues, TQM and its 3.1 TT of TQM methodologies not for developing countries like in Asia but After introducing Japanese high-quality products and TQM, for developed countries where the level of quality has many overseas companies, especially in developing already been improved, and the importance of innovation countries, have been interested in TQM. Since the 1990s, is high, can be pointed out. The current TQM and the overseas winners of Deming Prize, the most famous prize methodologies are mainly not for innovating but for of TQM, have increased, and it can be understood that improving the level, and it is not certain whether they are TQM has been promoted as before, but its main region has valuable for managing innovation or not. shifted from Japan to overseas. 3.2 TT of TPS ISO9001 was enacted in 1987, and ISO9001 certification is As of the end of Dec. 2016, TMC conducts its business used for certificating the organizations that have worldwide with 53 overseas manufacturing companies in implemented Quality Management System. Then, this 28 countries and regions. All of the manufacturing certification has been a powerful driver to promote TQM to companies and many of their suppliers, and other all over the world. Furthermore, many companies not in overseas companies have introduced TPS, and TPS has Japan but in overseas, especially in Thailand, , and been transferred into many overseas companies all over India have applied Deming Prize. Also, as one of important the world. Especially, similar concept and system of TPS activities to improve employees’ satisfaction and called lean production are introduced and practiced mainly performance of organizations, QC circle activities have

464 in the USA and other countries. Although there is no accidents that reduce overall equipment efficiency. They organization to promote TPS, the activity or performance of are necessary for implementing TPM successfully and TMC itself is a strong driving force of TPS. achieving fruitful results. Konecny and Thun [49] identified Figure 2 shows that TPS does not always have positive that human relations such as employee satisfaction, cross- effects on the performance but negative ones in some functional employee integration, and multi-skill cases. Also, as factors, external and internal factors were development, are driving forces for TQM, but the both identified, and people development and process implementation of TPM and TQM do not show positive development were identified as critical factors for effects because of limited human resources for the implementing TPS. Negrão et al. [48] identified that the implementation. However, Sethi and Tripathi [50] identified causes of high variability, in China without better that the both implementations of TQM and TPM show management practice, with soon after introducing Kaizen, positive effects because not only quality but also show negative effects. maintenance is important in India.

Factors Factors TPM Perforrmance TPS Perforrmance Effects of TPM : Factors of TPS : Effects of TPS : Considerable distance can be Organizational culture, soft Positive effects : [45] USA lean practice: compensated : [51] UK and Japan Positive effects or negative Positive correlation : [52] Singapore [47] 10 countries effects : With TQM : [50] India External and internal [48] 45 empirical studies in factors : [44] Korea With TQM and human relation : 37 countries People development [49] 238 countries Process development Figure 3. Results of empirical studies on the factors and [46] 27 countries effects of TPM. Figure 2. Results of empirical studies on the factors and effects of TPS. 4 FOR NEXT GENERATION OF JMS Japanese people like rule or discipline and eager to avoid For improving JMS, many activities and research have uncertainty. The characteristic of Japanese people can be been conducted, and this section shows those activities considered as a DNA of TPS [17][18], and it may not be and discusses issues for further developments. TQM, TPS, easy to implement TPS to people who is not like Japanese and TPM are still implemented and practiced in Japan, and people. Also, as TPS reduces uncertain factors and wastes the research on them is still ongoing. However, recent as much as possible, it may not be easy to implement TPS topics in Japanese manufacturing industries are IoT, to countries and regions with some or many uncertain Industry 4.0, and Cyber-Physical. By using them, issues to factors. Reducing or suppressing uncertain factors is one renovate JMS and TQM, TPM, and TPS are discussed in key point to implement TPS to the countries and regions. this section. Also, TPS has bottom-up approaches with small group improving activities and some activities to stimulating 4.1 Recent Activities of JMS improvements, such as Kanban system and production As recent activities and Initiatives in Japan for Industry 4.0, smoothing. However, it does not have a top-down IoT, Cyber Physical System, the following three activities approach to improving the total performance. For the can be pointed out. That is, Robot Revolution Initiative purpose, introducing any top-down approach or utilizing (RRI) [53], the IoT Acceleration Consortium (IAC) [54], and not only TPS but also TQM may be better for achieving the Industrial Value Chain Initiative (IVI) [55]. Through the fruitful results. activities and initiatives, Japanese industries, especially manufacturing industries, are trying to revise JMS. 3.3 TT of TPM By using IoT, AI, and other ICT technologies, Japanese TT of TPM to overseas can be understood from companies companies developed tools and devices for improving that applied and won TPM Excellent Awards. TPM JMS, and some of excellent examples are introduced. prepares eight pillars of activities and tools like multiple Corp. developed AI technology for identifying small group activities, and TPM Excellent Awards evaluate standard motions in operations for avoiding abnormal the degree of intensity to promote activities for reducing operations and identifying correlation between breakdown, defects, and accidents and for improving the manufacturing data and KPI for controlling factors of KPI efficiency of equipment. In the TPM Excellent Awards for improving productivity. Omron visualized the flow of winners, companies in Belgium and Singapore won the operations in production lines for improving productivity by awards in 1991 as the first overseas winners. In 2015, 70 detecting defects or unusual operations. Also, Omron overseas sites won the awards, and it can be understood developed an analysis tool of process data and test results that TPM has already promoted all over the world. for identifying the causes of defects. Electric In the academic world, the effects of implementing TPM, or promoted activities for e-Factory and developed a system not only TPM but also TQM, are investigated by for directing operations in cell production systems and a companies surveys. Also, cases in any specific countries system for visualizing, analyzing, and improving operations have been investigated. in SMT lines. Besides the companies, various Japanese Figure 3 shows that TPM has positive effects on the companies, such as , NEC, , OKI Digital performance. However, some cases show not only TPM Imaging, YKK, Yamazaki Mazak, Komatsu, Kubota, etc., but also TPM with TQM or TPM with TQM and human are trying to develop and use IoT, AI, and other ICT relation are valuable for achieving more fruitful results of technologies for visualizing and integrating the process, implementing TPM. plants, and products and for improving performance and In TPM, disciplining rules and avoiding uncertainty are offering value added services. practiced for eliminating breakdown, defects, and

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