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n the Process of the hallengend the Use of theJidoka oncept

Kiyoshi SuzakiW hen I was asked to writean article for Target therequested topic was onn ew movements in JIT, particularly in Japan. After having been exposed to books, articles, and seminars, readers may search for newthinking or techniques. However, instead of writing something new, Ifelt it more important to qualify thepoints which are the foundation ofour thinking. Without this process,we may be aiming at the wrong target. As this publication bears thename target, the term has a special connotatipn. A person may setan individual target, but when anumber of people share the sametarget, they develop a sense of vision, commitment, and shared understanding.

What then is the target for us?Is it to produce required products, at

< J

Fig Aiming for the target

how JIT may applied in theircompany. Initial application of techniques typically brings some successes and some failures. Thosewho succeeded in overcoming difficulties here and there find stilltougher walls in front of them.Strong momentum may have existedat the beginning, but marginal gains

techniques we have read in thebook or heard at the seminar, etc.This is the time to reaffirm our target. A top-level manager once toldme that he was satisfied with the 70percent reduction of inventoryachieved by implementing JIT. Isn t

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even though there is one. With vision comes the mindset that empowers achievement.Let us, then, look further intothe way we typical ly think. For example, we may think:1. Inventory and setup time cannotbe reduced any more.2 Machine breakdown and defectscannot be further eliminated.3 Capacity of people and machinescannot be increased any more.4 Job descriptions and people s attitudes cannot be changed, etc.

If we are to lead JIT activities,however, we must overcome thismindset and establish commonlyshared beliefs. Only with meaningfulaction and commitment can wecommunicate our vision and generate cooperation among all involved.Creative DisruptionJIT strives to best utilize thelimited resources of man, material,machine, and money, without generating waste in conducting a company s operations.The process o progress maybe characterized as creative disruption. Only by breaking down the oldsystem, structure, and mindset dowe have a chance for progress. Theultimate measure of progress in JITis substance (the bottom line) - notform. Superior performance, whensustained or further enhanced in thelong run, reflects the fundamentalchanges and constant challengesmade in the way the business isconducted.While many of us may be comfortable learning JIT techniques andterminology, we should be carefulnot to confuse the means with the

tain techniques work needs to beexamined and challenged constantly. Even though developing a logicalfoundation is quite important for ourprogress, we should not be constrained by the logical frameworkdeveloped yesterday. Just as techniques should improved and theorganization changed to meet today s economic needs, we shouldconstantly challenge the underlyinglogic as well.The progress of JIT by Mr.Ohno of Toyota in the last halfcentury was based on a constantchallenge to the status quo and continuous experimentation with newideas. We may benefit from incorporating the spirit of his challenge andhis drive to creatively disrupt theSimply learning and practicingtechniques is not enough ifwe are to accelerate ourlearning and obtain newinsightsstatus quo in our process o prog-ress JIT, as we find it in front of oureyes, is by no means a completedsystem. Rather, as Mr. Ohno wouldagree, we should keep striving todevelop a better system. To me, thisis one of our most important duties.Central ized organization

Skill, or

The Eighth WasteIn the early 1970s, Toyota emphasized for employees the elimination of waste and its commitment tobattle waste. The company introduced the idea of eliminating theseven wastes: overproduction, waiting, transportation, processing, inventory, motion, and product defects.Observations of companies inJapan, the United States, and Europe indicate that one fundamentalpoint behind these seven wastes isoften ignored. Therefore, I wouldlike to add an eighth waste thewaste of not utilizing people s potential capability.Focusing on purely technical issues overlooks the importance ofthis eighth waste. If our orientationis oton increasing the capability ofpeople and the way each of us contribute, we may miss the wholepoint. Systems make it possible;people make it happen. And afterall, isn t it true that every person canmake some kind of system, whetherit is big or small?In practicing JIT, the key to ultimate success is people, their awareness and understanding of the subject matter, their expectations, andtheir teamwork to make the systemwork and improve. This success is

Decentralized organization

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not by any means a small successor collection of small successesachieved by the introduction oftechniques. The biggest successis minimization of the eighth wasteso that people s capabil it ies are utilized to their fullest degree. In thatsense, we should realize that theprocess of creative disruption equally applies to the process of eachperson s growth.Fig. 2 conveys that each person s effort to upgrade his or herskills provides the foundation for developing a sustainable competitiveadvantage for the organization. If asmall number of people monopolize skills, knowledge, and authorityin a centralized organization, management and staff people will beoverburdened issuing directions, orders, and schedules. Also, there willbe under-utilized people s potentialcapability.

It is for this reason that developing an effective mechanism to facil itate capabil ity gains and the sharing of burdens through teamworkbecomes one of the most importantfactors for long-term success for acompany. The energy and capabil ityof people intricately tied into thecompany s system are difficult forcompetitors to copy or take away.JidokaOne of the most intriguing aspects of J T at Toyota is the strongemphasis on enhancing people s capabilities, using their wisdom, anddeveloping mechanisms to accomplish these things. In other words, afundamental principle of J T is to develop mechanisms which help eliminate waste and at the same t imeenhance people s capabilities.

skills through training, our bodyeventually responds to necessarychanges much more quickly and accurately than before. Just as insports competition, there is a needto train ourselves in manufacturingto compete and survive. But how wecan effectively practice this Jidokaconcept is clearly the challenge.One example of Jidoka is theLine Stop Concept. A l ine or machine stops whenever an abnormalevent happens. At the same time,an Andon (trouble l ight) may l ight upand a buzzer may sound to informothers of the incident and to ask fora supervisor s help. The informationshared by this simple mechanismmay include when, where, and whyit happened, as well as who can- and how to - help resolve the situation.When the line stops, it t riggersquick action to resolve the problemand regain the normal operatingcondition. In other words, with thismechanism, we are committing ourselves to satisfy the specific needsof customers (internal customers inthis case) as quickly as possible.If there are a number of s imilarevents over time, this mechanismwill almost automatically bring people to work together to solve theproblem - a fonomously Thesepeople who are directly facing theproblems can use their collectivewisdom to fix this s ituat ion and benefit from the outcome. When peoplehave appropriate knowledge andan immediate need to restore thenormal condition as triggered by thismechanism, they wiff develop a solution.The Line Stop example illus

tates quick action when required.These tools are useful in developing an effective nervous systemwithin the organization to keep itselfhealthy. As certain abnormalities orproblems may induce repetitivepain, we learn lessons to eliminatethem. In this process of progress,we should upgrade our problemsolving skills and gain confidence asthe solution is being developed. Theaccompanying pains should bebearable, and they should not beignored by management when further support is needed.If we understand these points,the role of manager should be to monitor the levels of abnormality,pain, or problems in the productionschedule, quality, or machine breakdown during the normal operatingcondition, 2) monitor these symptoms as we reduce the number ofKanban cards or the number of op

erators on the line, etc. and 3) provide solutions to the exposed problems or to improve the mechanismto facilitate progress. This description may seem to match the management by exception principle. Thekey difference is much faster feedback and wider development of allpeople throughout the company soperations.The fundamental belief behindthese practices is that there is noiimit to our wisdom. Therefore, continuous improvement is always expected and sought. Depending onthe level of the individual s capability, we need to develop appropriatemechanisms so that problems areexposed as soon as possible, solutions are developed, and hence,new standards are put in place to

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dling, mixed production, mixed loading truck for multi-plant transportation, and single-source supplierarrangements. Beller material andinformation flow across the organization will reduce or eliminate thepreviously existing barriers betweenorganizations. (See Fig. 4.)

Instead of locally optimizingone s organization, these tools helptie different operations and organizations together, reduce total productcosts, and make systems more responsive to customers needs. To doit, v ryon must understand thebroader aspects of operations. Thisunderstanding, in turn, leads tochanges in the organizational structure and people s responsibilities.Just as Jidoka emphasizesquick exposure of problems and creation of autonomous action to solveproblems, techniques such asKanban or product-oriented layoutare also considered examples of autonomous control. They contribute toearly detection of problems, quickcommunication, and, hence, theelimination of waste. As mentionedbefore, we should be needs driven. Organizations should simply follow economic needs, or else theywill not survive.Self controlled Self thinking andSelf motivated OrganizationIf we share these points, the or-ganization should move towardbeing self-controlled, self-thinking,and self-motivated. Material and information move smoothly. People dothings as needed. Quick exposureof problems initiates neededproblem-solving activities.

avenot

WorkerSubordinate

Muscle)( ig 3 Traditional structure odichotomy

If we cannot drive out the fearof change our own mindsethas created walls to preventour progress

but note that as everyone improveshis or her skills, operators may contribute a great deal by developingnew standard procedures, solvingproblems, or even developing newJidoka mechanisms. A natural resultof the increase in people s capabilityand in-depth understanding shouldbe a continuous change in the organization. The number of layers maydecrease as a natural consequence.People may fear losing controlin eliminating a layer of the organization, or any change in their responsibilities. Vision, commitment,and shared understanding of organizational goals should overcome fear.If we cannot drive out the fear ofchange, our own mindset has created walls to prevent our progress.(See Fig. 3.)

Management80ssBrainHave

We also should see changes inthe horizontal structure of an organization as we apply such techniquesas Kanban, product-oriented layouts,U-shaped lines, multi-process han-

Control (SPC) charting should bechanged. The number of Kanbancards may be reduced, replaced byother means, or possibly even eliminated. Although a production controlboard may provide valuable information on hourly production volume- indicating potential problems influencing production- recording numbers on the board may become awaste of t ime once the control levelis increased in the area.Such change is simply a necessary process for improvement.Those who lead the practice shouldbe on top of these changes. Naturally, different techniques, tools, andmechanisms may apply at one timeor another, depending on the levelof control. Also, companies with different production characteristics maybenefit differently from the sametechniques.

Inorder to make changes effectively by incorporating people withthe Jidoka concept, there are a fewpoints worth summarizing:1 Persons in charge of operations(operators) should satisfy theircustomer s needs (that is, thenext process) in cost, quality,and delivery according to the prescribed standards. Naturally, thispractice of following the standardprocedure requires discipline. Persons at a higher level (that is,supervisors) should understandthe broader aspects of operationsand solve problems exposedfrom the procedures currently inplace. Without standards, we cansee no abnormality. If standardsare not practiced by subordi

nates, the supervisor is not fulfilling his role.

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Fig. 5 Sources for this comparison are: A) through E) from Japan HR Association;and N S S Statistics; (F) and G) from Author s calculation.

Comparison of Suggestion Programs in Japanand the United States 1985)Japan U.S.

(A) Participation rate (%) 60% 13%8) Number of suggestions per person 24 0.14(C) Adoption rate (%) 82% 25%(D) Average award per suggest ion 3 398(E) Average saving per suggest ion 118 4397(F) Saving per suggestion + 3900% 1100%Award per suggestionG Total saving minus total award 2.8 million 0.6 milliongranted for 1000 employees

company- (hypothetical calculation)

Improved systems or mechanisms should replace antiquatedsystems to upgrade customer service capabilities. Whether customersare internal or external, we firstneed to understand their needs, andthen to develop necessary techniques or organizations for meetingthe needs - not the other wayaround. omanagers or staff people,operators should be viewed as customers. From the operators' point ofview, the next process should beviewed as their customer. norder tolet upstream or support peopleknow the specific needs of customers, we need systems such asKanban for communicating production information, or Andon (a troublelight) for requesting a supervisor'sassistance. As we satisfy theirneeds better, faster, and at lowerco;;t through better systems, thebetter the whole operation will become.Examples: Improvements inProcessAn example is a suggest ionprogram: Typically, the feedback toany suggestion in most companiestakes too long. Our customers (operators) are, in most cases, capableof doing the job bet ter given the appropriate environment, but if we donot respond to their suggestionsquickly, what are their feelings toward improvement? o apply the customer relationship internally, we need to put ourselves in the operator's shoes andfind bet ter ways to sat isfy theirneeds. Whatever suggestion systemwe have, we should make the evaluation and feedback system fol low

alize that different operators areusing machines without quite following the prescribed procedures, orthat oiling is done in a rather sporadic fashion, what is the point ofusing such a sophisticated computersystem? Isn't it more appropriate tomake sure that operators follow theprocadures for machine operationsand lubrication, and to educate themabout identifying symptoms of potential failures before we install sophisticated diagnostic systems orcomputers?The point of these examples isto remove organizational barriers,and quickly address issues wherethere are needs. Even if an idea islogically correct, installing systemswithout any consideration of theJidoka concept is almost l ike developing a bureaucratic organization

data on Inventory counts at variousstages of operations? or, How canwe develop work standards whichcan be readily practiced and updated? Raising these questions requires imagination. Also, a broadunderstanding, rather than knowledge narrowly confined in one's ownjob responsibil ity, is in order. Thenchange requires the process of creative disruption, denying the currentwasteful operation to create something better.n this process, a challengingspirit and the willingness to experiment are essential. Furthermore, theprocass of challenge requires a supportive environment to let people trywithin reason. Most importantly, avalue system of shared goals, challenging spirit, and higher expecta

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may lack Jidoka mechanisms withinthe organization. As in the case ofdormant suggestion programs, discouraging people with a challengingspirit will make the organization bureaucratic.In a conference about threeyears ago, I addressed seven keyelements of corporate culture whichare conducive to JIT progress.They are:

1. Challenging conventional beliefs2 Bias toward experimentation3. Tolerance for failure4. Trust5. Teamwork6. Flexibility, and7. Discipline.

How these elements are linkedto the use of JIT techniques needsno long discussion. The key point isthat only with a deep understandingof people and techniques in practicing JIT will there be true progress.Those leading the organization andfacilitating the implementation of JITshould, I believe, convey these messages by whatever means available:education classes, company newsletters, posters, banners, improvement boards, awards, mingling withoperators and support staff, involvement in actual improvement activities, self-study groups, etc. It is thestrong conviction and shared understanding in aiming for the same target which makes the difference inthe end.SummaryI have mainly described myviewpoint on the organizational as-

pects of JIT activities as one important foundation of our thinking. Firstis the importance of developing ashared target so that we can develop a sense of vision, commitment,and shared understanding. Peoplerelated problems more often preventprogress than a lack of technical understanding.Second, the process of creativedisruption is important not only fortechnical advancement but also forour own personal growth. If we donot address this point, the wastefrom under-utilizing people s potential capability can be tremendous.Third, we examined the application of Jidoka in such a way that itwill not only help to eliminate wastebut also enhance people s capabilities. With quick action in responseto needs, people s knowledge andwisdom will be better utilized - justas we can develop healthy nervousand muscle systems to increase ourathletic skills through training.Fourth, while applying theJidoka concept will help motivatepeople and increase their capability,we need to fleXibly accommodatechanges in our own organization.Just as techniques, tools, andmechanisms apply differently in different situations, the organizationalstructure should also change tomeet today s demand. Putting it simply, the organization should followeconomic needs.Finally, we shared the idea of aself-controlled, self-thinking, andself-motivated organization. As wepursue the quiCk response to customers needs (internal or external),

break down organizational barriers,and streamline this process with various techniques, the organization scapabilities should be upgradedmor self-managed.There are many barriers to thepractice of these ideas. Even if weunderstand the principle in our brain,it is a different matter to actually exercise it. I believe, however, thatthere is not much choice if we are tomove forward.Suzaki Kiyoshi The New Manufacturing hallenge The Free Press 1987 pp.12 18

2Suz ki Kiyoshi orporate ulturefor JITAPICS Zero Inventory Philosophy and Practice Seminar 1984.

uthorKiyoshi Suzaki is a principal of ArthurYoung Company He has worked asa consultant in various industries in thUntted States Europa and the FarEast. He lectures in major universitiesserves on the boards directors several U S companies and serves asan advisor to Japan Technology Trans-fer Association. He is the author andco-author of two books on manufacturing published in Japan and France andthe author of The NewManufacturingCha lenge Techniques For Continu-ous Improvement The Free Press987

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