JIT, TQC, Japanese companies

Just-in-time (JIT) and total quality control (TQC)

The nature of Japanese corporate culture has made it possible for it to excel in industry.Management worked hard to develop a successful corporate process and the two best processes

Examples of such processes include just-in-time (JIT) and total quality control (TQC). Toyota Group managers have devised a JIT called just-in-time. Kiichiro Toyoda, the former president of Toyota Motor Corporation, wanted to catch up with the American automobile industry. Toyota was known as the father of the Japanese automobile industry. Toyota’s management has developed a Toyota production system that uses JIT. The system basically places the right amount of parts on the line on time. This process has a high level of automation at which the system works. One of the advantages of JIT is that it eliminates overproduction and prevents defective products. In addition, it keeps costs down and increases productivity. Nothing is more costly to a company than stacking unused inventory in a warehouse. Finally, we ensure that each worker masters a variety of production techniques and remains actively involved in the factory process. Today, JIT systems are used by many companies around the world and are a sign of their success in Japan decades ago.

Pre-WWII Japanese products were known to be cheap and of low quality. Today, they are praised all over the world for their high quality. One of the reasons for this distinction is TQC. As mentioned earlier, Japanese corporate culture is paternalistic and encourages lifelong employment. With the implementation of JIT, the production system became more efficient. It also led to high labor productivity growth. The Japanese also invented TQC. This was a kind of proposal system in which top management asked for proposals from workers. Currently, it is used by 90% of companies on the Tokyo Stock Exchange. The idea of ​​TQC was to improve the effectiveness of management goals in the most efficient way.

FUJIFILM Corporation is used as an example of using TQC. Fujifilm Business conducted TQC in 1976, and four years later, participated in rigorous exercises and won the prestigious Deming Prize. Fuji Xerox was founded in 1962 as a joint venture between Fuji Photo Film and Rank Xerox (UK), a subsidiary of Xerox Corporation. I started as a marketing company. Fujifilm, the parent of Japan, was mainly composed of employees who graduated from high school or university and joined the company directly and are expected to be employed for life. Fujifilm, on the other hand, hired a diverse group of workers with diverse work backgrounds and was more individualistic than Japanese corporate-oriented parents. Management placed both entities under one roof, which led to internal disputes and even layoffs between departments. This was considered Japan’s last resort.

TQC was conducted in 1976. Management encouraged contributions at all levels. An average of 90,000 ideas are collected annually from employees, and they mainly discuss problems and ideas for improving business functions. This system has instilled creativity, teamwork and initiatives among employees. The main achievement of TQC was the development of a successful new product, the 3500 model, in 1978. This also stimulated other product lines and turned the business around. Four years later, Fujifilm received the Deming Prize along with the other three companies after submitting a formal application to the Union of Japanese Scientists and Engineers.

TQC succeeds in certain situations where good leadership, proper training, adequate resources, clarity of program goals, cultural unity, etc. must all be preserved. TQC has three main principles. Customer-focused. Meet or exceed customer needs. Continuous improvement; and teamwork. TQC is also seen as one of the reasons why Japanese companies performed well in the 1970s and 1980s. Another reason for this success is due to manufacturing control excellence. The facility was kept clean, employees were responsible and the JIT system was used. JIT systems have been particularly known for raising workers’ skill levels, improving quality and reputation, and reducing costs.