Developing a Global Quality Management System to Transforming Technology into Effective Management Strategy KAKURO AMASAKA School of Science and Engineering Aoyama Gakuin University 5-10-1 Fuchinobe, Chuo-ku, Sagamihara-shi, Kanagawa-ken, 252-5258 JAPAN kakuro_amasaka@ise.aoyama.ac.jp Abstract: - To be successful in the future a global marketer must develop an excellent quality management system that can impress consumers and continuously provide excellent quality products in a timely manner through corporate management for manufacturing in the 21st century. The author proposes a Global Quality Management System for transforming technology called New JIT, new management technology principle into effective management strategy. This system contains hardware and software systems, as next generation technical principles, for transforming management technology into a management strategy. The hardware system consists of the Total Development System (TDS), Total Production System (TPS) and Total Marketing System (TMS). These are the three core elements required for establishing new management technologies in the marketing, engineering, and production divisions. To improve the work process quality of all divisions concerned with development, production, and sales, the author hereby proposes Science TQM (TQM by utilizing Science SQC ) as a software system. In addition as a management technology strategy that enables sustainable growth, the author has proposed a Strategic Stratified Task Team that will become the driving force of Science TQM. The author believes that the effectiveness of New JIT for the advanced management strategy using High Linkage Model Advanced TDS, TPS & TMS has been demonstrated as described herein based on the author s verification conducted at Toyota. Key-Words: - Global Quality Management System, New JIT, three core elements TDS, TPS & TMS, High Linkage Model Advanced TDS, TPS & TMS, Science TQM, Science SQC, Customer Science, Strategic Stratified Task Team 1 Introduction The Japanese administrative management technology that contributed the most to the world in the latter half of the 20th century is typified by the Japanese production system represented by the Toyota Production System (TPS). This system was kept at a high level by a manufacturing quality management system generally called JIT (Just in Time) [1]. However, a close look at recent corporate management activities reveals various situations where an advanced manufacturer, which is leading the industry, is having difficulty due to unexpected quality related problems. Some companies have slowed down their production engineering development, and are thus facing a crisis of their own survival as a manufacturer. Against this background, improvement of the Japanese administrative management technology is sorely needed at this time [2-4]. In the remarkable technologically innovative competition seen today, in order to realize manufacturing that ensures customer first QCD (Quality, Cost and Delivery), it is indispensable to first create a core technology capable of reforming the business process used for the technological development of divisions related to engineering designing. Equally important, even for production related divisions, is to develop new production technologies and establish new process management which, when combined, enable global production [5]. In addition, even the product promotion, sales, and service divisions are expected to carry out rationalized marketing activities that are not merely based on past experiences, so that they can strengthen ties with their customers. It is believed that the foundation of corporate survival is to establish a new quality centered management technology that can link the management of the activities carried out by the divisions above with a view to enhance the quality of their business processes [6-7]. Today s Toyota is not an exception when it comes to the necessity described above. Given this context and by predicting the form of next generation manufacturing, the author hereby ISBN: 978-1-61804-118-0 19
proposes a Global Quality Management System for transforming technology called New JIT, new management technology principle which contains hardware system - three core elements TDS, TPS, TMS, and software system Science TQM by utilizing Science SQC for transforming management technology into management strategy [6]. This system is the basis of Manufacturing Fundamentals 21C accomplished by innovating the conventional JIT system. The effectiveness of New JIT for the advanced management strategy using High Linkage Model Advanced TDS, TPS & TMS is demonstrated in this paper. 2 Conventional Japanese Production System and Quality Control - JIT The system of Just in Time (JIT), a Japanese production system typified by the current Toyota Production System (TPS), is a manufacturing system developed by Toyota Motor Corporation that adopts TQM (Total Quality Management) into its manufacturing process. TQM recognizes the principle of cost reduction, and it also pursues improvement of product quality and productivity simultaneously by pursuing maximum efficiency (optimal streamlining). TQM can also be considered the essential concept behind JIT [7]. For this reason, Toyota positioned this production system as the management technology of Toyota, and often draws an analogy of the two systems being like the two wheels of a vehicle [1,5]. In order to cater to the customers needs and to conduct manufacturing successfully, a study into the timely simultaneous achievement of QCD is the top priority. To accomplish this, Toyota has been viewing the two technologies above as the dual pillars of its management technology [6]. As shown in Fig. 1, through the combination of these two pillars, a rational management attitude has been consistently maintained so that deviations like large tidal waves can be reduced to small fluctuations similar to gentle ripples which enable average values to be constantly improved. This involves the continuation and improvement of QCD research activities while incorporating the statistical quality control method (SQC) from the standpoint of the hardware technology- based TPS and the software technology-based TQM, which are represented on the vertical and horizontal axis respectively. As can be seen from the figure, SQC constitutes the basis for maintaining and improving product quality, and the starting point of TQC (TQM) from a historical standpoint. However, in Use of SQC reduces fluctuations and raises the average level of manufacturing quality. Fig. 1 Relation between TPS and TQM order to prevail in the difficult global quality competition in the future, the technological capability of manufacturers must be urgently reinforced and reformed [7]. The concept of JIT [1,8] and its approach have reformed automobile production at Toyota. As a result of its effectiveness being highly praised all over the world, JIT has been established as a core concept of the world s manufacturing in the 20th century [9]. 3 Management Tasks of Advanced Companies Shifting To Globalization 3.1 Progress of Production Control in the Manufacturing Industry Advanced companies in the world, including Japan are shifting to global production to realize uniform quality worldwide and production at optimum locations for survival in fierce competition. To attain successful global production, technical administration, production control, purchasing control, sales administration, information system and other administrative departments should maintain close cooperation with clerical and indirect departments while establishing strategic cooperative and creative business linkages with individual development, production and sales departments, as well as with outside manufacturers (suppliers). Today when consumers have quick access to the latest information in the worldwide market thanks to the development of IT (Information Technology), strategic organizational management of the production control department has become ISBN: 978-1-61804-118-0 20
incre asingl y impor tant. Simul taneo us attain ment of QCD requir emen ts is the most impor tant mission for Progress of production control in the manufacturing industry Prod. control technology 1900 1950 2000 Industrial engineering Operations research Quality control Management Marketing research Production control IT Taylor system Organization theory Ford system SQC Marketing research Operations research Production & stock control System engineering JIT/Toyota Production System TQC Collaboration partnership Simulation Marketing science CIM CE Automation TQM Global production Supply chain management SCM Digital engineering CAE CAD CAM Production control of plants: Expanding tasks (domestic suppliers overseas) Fig. Figure 1 Progress 1 Progress of of Production Control in the Manufacturing Industry Industry Fig. 2 Progress of Production Control in the Manufacturing Industry For the production control department, the key to success in global production is modelling strategic SCM (supply chain management) for domestic and overseas suppliers with a systematization of its management methods. In the implementation stage, deep-plowing studies of the Toyota Production System, TQM, partnering, and digital engineering will be needed in the future. developing highly reliable new products ahead of competitors [7]. This requires the urgent \establishment of an innovative production control system for the next generation (called nextgeneration production control system). Fig. 2 summarizes the progress of production control in the manufacturing industry to ascertain the desirable form of the Japanese Society of Production Control for it s future progress [10]. In the figure, the flow from IE (industrial engineering) to recent IT is shown as major technologies contributed to production engineering in the vertical direction. In the transverse direction, major elementary technologies, control methods and scientific methodologies that contribute to production control are listed in time series for mapping. 3.2 Today s Management Technology Issues For manufacturers to be successful in the future global market, they need to develop products that give strong impressions to consumers and supply such items in a timely fashion through effective corporate management. In recent years however, the Toyota Production System representing Japanese manufacturing has been adopted as a so-called Lean System [11] and further developed in various systems shared internationally. Therefore, it is no longer Japanese (or Toyota s) exclusive technology. In the United States and European countries also, the importance of quality control has been increasingly recognized through studies of Japanese TQM (or TQC, Total Quality Control). TQM has thus been actively promoted, and recently began encroaching on the Japanese style quality superiority which Japanese products have previously enjoyed [12-13]. What can be deduced from these facts is that it is clearly impossible to continue to lead the next generation simply by adhering to and maintaining the Toyota Production System and TQM, which are the dual-pillars of traditional Japanese management technology. In order to overcome these problems, it is essential not only to advance the Japanese Production System, a core technology of the production processes, but to also establish a core ISBN: 978-1-61804-118-0 21
technology for the sales, designing, and development related divisions [6]. Given the Global products strategy The Development Division Development staff Priority direction of problem above, the author [6,14] Development of new merchandise and products of has conducted an awareness proposal type Mono Mono axial axial Application of information survey of general Formation of vision management personnel and executives (a total of 72 Development of marketing method Global marketing strategy Analysis; Quantification Class III people) from 12 advanced companies belonging to the Toyota Group. Similarly, based on another awareness survey of the companies (Fuji Xerox and Daikin among others, with a total of 153 participants) participating in the Study Group for Manufacturing Quality Management (aka The Amasaka Forum ), management technology issues have been investigated from the standpoint of corporate management. As shown in Fig. 3, by incorporating Quantification Class III, the overall management technology issues have been plotted in a chart. From the figure, it can be confirmed that managers responsible for development give the highest The Development division Priority input of resources Global environmental measures Innovation of organization and system Customer's voice priority to The Production Division division suggestionbased new Bi Bi axial axial Production staff merchandise and product Next generation production system developmen Supply chain management Inheritance of technology t as a and most suitable supply and skill global Strengthening of cooperation Speed and efficiency Adjustment to changes merchandise strategy, whereas production Global production strategy managers put efforts Marketing staff into The Marketing Division division establishing Analysis: Quantification TMS Class III the next generation production system in view of global production. Sales managers, on the other hand, prioritize the development of new marketing methods in order to be successful in global marketing. Moreover, the issue common to all was how to respond to globalization. Therefore, in order to overcome these management issues, it will be necessary to reform the organization and system and innovate the human resources cultivation system through intelligent sharing of information and to create a new management technology for closer ties among the Development of human resources Customer First" point of view Fig. 3 Management Technology Problems (Positioning of Opinion) company s divisions. The above awareness surveys and analysis clarified the core technologies necessary for the next generation management technology principle, the basis for new management technologies, and the technological elements required for linking these core technologies. Consequently, what will be important in the future is the creation of management technology equipped with a new concept that enables a total linkage of QCD research conducted by each of the aforementioned divisions from the standpoint of strategic corporate management, and by so doing, the creation of New JIT will be deemed possible. In order to promote excellent quality management capable of contributing to global manufacturing, the quality of the business processes of all divisions needs to be enhanced through clear-cut, rational JIT activities [6-7]. ISBN: 978-1-61804-118-0 22
Toyota Marketing System TMS How to sell? How was the result? Was production satisfactory? Service Sales Product management Market research Inspection TQM by utilizing Science SQC Manufacturing What is the expected state? TQM-S TPS Product planning Profile design Engineering design Evaluation by examination Science SQC Preparation for production Production engineering Toyota Production System What is needed? Research and development Toyota Development System TDS How to produce? What is to be produced? Fig.4. New JIT, new management technology principle 4 New JIT Therefore, for what is Innovating Management needed is a new, next generation management technology that can become a unifying force for Technology optimizing (strongly linking) the business process cycles of all divisions, in other words, providing a new organizational and systematic behaviour 4.1 Concept of New JIT for Innovating principle. Given this background, the author [6,16] Management Technology hereby proposes a new management technology The new deployment of global marketing for principle, New JIT, as indicated in Fig. 4. This prevailing in today s global quality competition is management principle is equipped with a hardware the most important issue for the manufacturing system and a software system as a next industry. Particularly for Japanese manufacturers, in generation management technology and aims to order to survive in the global market, the urgent strengthen management technology up to the level management issue is global quality and of management strategy. simultaneous launching (optimal production) The hardware system for the strategic which is a prerequisite for succeeding in global management technology system is made up of five production [7,14]. core principles: TDS (Total Development System), In order to create attractive products, it is TPS (Total Production System), and TMS (Total necessary to implement Customer Science [15] Marketing System). These three core systems are which is designed to scientifically grasp customers each a core technology required for establishing the preferences. In order to carry this out reliably, it will new management technology in each of the be vital for each of the development/designing, (b) Management-based design production divisions, and business/sales to carry out management in such a way as to link the entire organization of their own divisions. Planning Design Process Furthermore, all of these divisions need to be Past data Review Design Phenomenon on use analysis by using organically linked together by the Management environment CAE and SQC Section (technology control, production control, TDS Shared use of procurement control, sales control, information Design Philosophy Informaion Optimized design Design Technology systems, and quality assurance), General Affairs Preceding Technology System Elemental Customer-in and next creation engineering technology Section, and Supervising Section (human resources, processes TQM promotion, etc.) which manages the activation Hardware Design Software as well as the systematic and organizational science Behavior science operation of human resources in each division as a whole. Behavioral Science (a) Information-based design (d) Designer's decision-based design Fig. 5 TDS Concept (c) Technology-based design ISBN: 978-1-61804-118-0 23
divisions: business/sales, development designing, production engineering/production, and general affairs/management. For the software system of the strategic quality management system, the author [16-19] proposes Science TQM, new quality management principle called TQM-S (TQM promotion incorporating Science SQC), in order to improve the business process quality of all divisions depicted in the figure. More specifically, this is an operation strategy for next generation quality management that was developed to promote a more scientific approach, and its validity has been demonstrated in recent years. The aim is to rationally systemize and organically organize the application of new quality management through parallel use of Information (a)production based on information Market information Production Philosophy Inspection information (b) Production based on management Mentor Behavioral science Preceding and next processes Planning Production Process TPS Customer-oriented Employee-oriented Process control Human management Promoter Process design Generator Fig.6 6 TPS Concept Production Technology System engineering Quality Cost Delivery (d)production based on workshop formation Element engineering (c) Production based on engineering Technology (IT) and Science SQC. As shown in the figure, implementation of the organic linkages between the related divisions can contribute to the further growth and development of the five core technologies, that is, the main elements of New JIT. 4.2 Tree Core Principles of New JIT 4.2.1 The First Principle: TDS [6] Taking a close look at recent product recall incidents, it is clear that a crisis in reliability, which stems from technological development and design evaluation, is rapidly arising. What is required is not simply the solution for a single isolated technological problem, but the creation of the kind of core technology which leads to the innovation of the business process for technological development, as well as the establishment of a core technology that induces an improvement in human reliability. Given the above, the role and expectation of the second principle, TDS, is the systemization of the design management method as can be seen in Fig. 5. This includes the following elements: (a) collection and analysis of internal and external information which places priority on the design philosophy, (b) development of design processes and their management, (c) creation of a design method that incorporates a strengthened design technology to obtain universal solutions (general solutions), and (d) drafting of design guidelines for nurturing designers (theory action decisionmaking). Here, also, the author [20-21] has been demonstrating that Science TQM is effective for strategic deployment of New JIT in the development and designing activities. For example, when designing a vehicle body (design profile), which is an important factor for inducing the motivation to buy, the application of Science SQC to improve the quality of the designing process in order to ensure the designing conduct code is called Design SQC [20]. In order to advance designing in response to the advancement of technology, it is necessary to strategically implement Design SQC and to proceed with technological development with a view to obtaining intellectual property rights for the continuation and further advancement of such technology. What is vital here is to establish a universal technological solution, not simply individual solutions created from the accumulation of partial solutions. The real aim of establishing TDS is to create technology via optimal designing that is enabled through information sharing [22]. 4.2.2 The Second Principle: TPS [6] ISBN: 978-1-61804-118-0 24
In the midst of the recent drastic changes in manufacturing methods caused by the introduction of digital engineering, it is vital to reconstruct a world-leading next generation production control technology, so that the core part of manufacturing does not lag behind the advancement of production control. Given the above, the roles and expectations of the third principle, TPS, includes the following elements, as shown in Fig. 6: (a) innovation to introduce a customer-oriented production control system which puts the highest priority on the quality of information obtained from inside and outside the company, (b) creation of a rational production process and management of its workplace implementation, (c) a QCD research activity using the latest production technology, and (d) creation of a dynamic workplace capable of managing partnerships proactively. In order to achieve these goals, the application of Science TQM for the strengthening of the overall production system is extremely effective. Here, the scientific conduct code for strategically implementing Science SQC is also called Production SQC [23-25]. The purpose of TPS through application of Production SQC is first, to solve technical bottlenecks such as problems with production preparation and production operation. Second, it is to establish an intelligent and scientific process control method in order to realize a highly reliable production system. The real target of TPS is to create a next generation Japanese production system free from the restraints of the conventional system [26]. 4.2.3 The Third Principle: TMS [6] As more and more emphasis is given to CS (Customer Satisfaction), CD (Customer Delight), and CR (Customer Retention), the sales and service divisions are expected to play new roles. What is needed are the kind of marketing activities which are not merely based on past experiences, but which promote the strengthening of ties with the customers, and the building of reliability into the products and corporate activities, as well as information gathering which will be helpful in creating next generation products. This will be the basis for quality management activities in the future. The roles and expectations of the first principle, TMS, include the following items, as shown in Fig. 7. These are: (a) a market creation activity through gathering and utilizing customer information, (b) improvement of the product value through understanding the essential elements that enhance (a) Market creating activities (b) Product value improvement Reliability Sales and marketing Customer Information Development and production Customer satisfaction Product planning and design Quality, cost and delivery Product value TMS Customer-oriented Quality assurance Customer Focus Customer retention Brand (d) Customer value improvement Shop appearance Marketing System Service Customer delight Fig. 7 TMS Concept M erchandise the product value, (c) establishment of a marketing system from the standpoint of creating trusting ties with the customer, and (d) the creation of a code of corporate conduct to develop an intelligent network, which continually increases customer satisfaction, as well as the recognition of the elements necessary for creating the code. The author [27,28] has been demonstrating that Science TQM is effective in strategic deployment of New JIT in the market. At the implementation stage, in order to establish TMS that is capable of contributing to sales and product planning, it is important to deploy Marketing SQC supported by Science SQC and to set up business linkages between each of the divisions related to product planning and development designing. It has become increasingly important, even from the standpoint of forming a total business linkage between TDS, TPS and TMS to implement Customer Science that places the customer first while also carrying out market investigation scientifically. This is done in order to avoid overemphasis of immediate sales results, and instead, to become capable of recognizing the importance of strategic utilization of Marketing SQC, which contributes to future product development [29,30]. 4.3 New JIT Driven by Science SQC Supplying products that satisfy consumers (customers) is the ultimate goal of companies that desire continuous growth. Customers generally evaluate existing products as good or poor, but they do not generally have concrete images of products they will desire in the future. For new product development in the future, it is important to precisely understand the vague desires of customers. Proposal of Customer Science model [6,15] as shown in Fig. 8 makes it possible to concretize (c) Building Ties with customer ISBN: 978-1-61804-118-0 25
custo m e r desire s Wan t s. T o realiz e this, t h e furthe r expan s i o n of the N e w J I T, Scie n c e S Q C, new quality control principle by utilizing the four core principles as shown in Fig. 9 is a new principle for a next generation quality management technique for the manufacturing business, aiming at providing a universal general solution and thus creating a technology for problem solving [17,19,26]. The first of the four principles, Scientific SQC is a scientific quality control approach, and the second principle, SQC Technical Methods is a methodology for problem solving. The third principle, Total SQC Technical Intelligence System, TTIS, is integrated SQC network by using technical wealth that deal with proprietary technologies or business processes into owned assets. The fourth principle, Management SQC, Market 言 葉 Language (Customers) Inter-company C Cooperative company Inter-company B Cooperative company Inter-company A Capital tie-up Whole company Field division Department group Lingual Knowledge イメージ Image (Concept) Overseas Domestic Task-2 Task-1 Task-8 Joint C Task-7 Joint B Task-6 Joint A Task-5 Total task management team Task-4 Task management Task-3 team Team composition Task team Merchandise 図 面 Drawings (Engineering) Strategic level Large Engineering level Figure Fig. 3. Structured 10 Structured Model Model of Strategic of Stratified Task Task Team Teams [3] Quality management strategy II Important management-technology -related task Global marketing- platform type SCM Quality management strategy I CS, ES and SS Product development strategy II New technology, new process Product development strategy I Bottleneck technology Improving problem solving capability interprets the gap between the theory and reality of technical problems, as the problems existing between departments and organizations, and verbalizes the implicit understanding inherent in the business process, thus further presenting it as explicit knowledge and as a general solution for the technical problem. Scientific SQC -Scientific Approach- Implicit y Knowledge Objectification of Subjectivity Subjectification of Objectivity Subjective Information Objective Information Fig. 8 Customer Science Model Explicit Knowledge y Management SQC -Systematic and Organizational- Science SQC Science SQC Integrated SQC Network TTIS - Technical Wealth - SQC Technical Methods -Mountain Climbing of Problem Solution- Fig. 9 Science SQC, new quality control principle ISBN: 978-1-61804-118-0 26
finally to suppliers (group companies, non-group companies, and overseas companies). 4.4 A Strategic Stratified Task Team, the Driving Force Behind New JIT In addition as a management technology strategy that enables sustainable growth, the author [16] has proposed a Strategic Stratified Task Team that will become the driving force of Science TQM. This is shown in Fig. 10. The expected role of the strategic stratified task team and the benefits it will provide are not limited only to cooperation among the departments inside the company. It will also contribute to the strengthening of the ties among group manufacturing companies, non-group companies, and even overseas manufacturers. Two measures must be taken in order to realize this proposal. First, is eliminate cast the work methods that rely too heavily on the techniques and experiences of individuals. Second, is to revolutionize the business process through the proposed structural model of a stratified task team (Task 1 to Task 8) that places emphasis on cooperation among the departments, with suppliers, and others. As the technology level involved expands to include higher strata, for example moving from Production Strategy I to Production Strategy II, and from to Quality Management Strategy I to Quality Management Strategy II, the structure of the task team extends its boundaries (cooperation) upward starting from the level of groups/sections, to divisions/departments, to the entire company, and 5 High Linkage Model Advanced TDS, TPS & TMS for the Advanced Management Strategy of New JIT A future successful global marketer must develop an advanced management system that impresses users and continuously provides excellent products of high quality in a timely manner through corporate management. Since providing what customers desire before they notice their wants will become a more essential part of any successful manufacturing business, the author has constructed a Customer Science principle [6,15] that utilizes New JIT. In this section, the author [14] proposes a high linkage model that is composed of a triple management technology system. This system combines Advanced TDS, Advanced TPS and Advanced TMS for the advanced management strategy of New JIT principle as shown in Fig. 11. 5.1 Advanced TDS, Total Development Design Model Currently, to continuously offer attractive, customer-oriented products, it is important to establish a new development design model that predicts customer needs. In order to do so, it is crucial to reform the business process for development design [26]. Manufacturing is a battle against irregularities, and it is imperative to renovate the create a technology so that serious market quality problems business process in the development design system and to can be prevented in advance by means of accurate prediction/control. ISBN: 978-1-61804-118-0 27
High Quality Assurance Global Development Strategy -Same Quality Global Worldwide, Production and Development at Optimum Locations- uality Worldwide, and Production (A) Degitized at Op Simultaneous Design Achievement of QCD (B) Development Design System Reform (2) High reliability Development Design System (C) Super-short-term Process System Reform (1)Customer Science - Customer Orientation Science-ization- Advanced TDS -Evolution of Design Reliability Activities- (3) Intelligence Simulation (E) Innovation of Employee Images (4) Intellectual Technology Integrated System (D) High Accuracy of the Prediction & Control The Key of the strategic Development of New JIT Fig.11-1 3-1 Advanced TDS, Strategic Development Design Design Model Model Global Production Strategy - Same Quality Global Worldwide, Production and Production at -Same Quality Optimum Worldwide, Locations and - Production Simultaneous at Optimum High Quality Locations- Assurance CS, ES & SS Achievement of QCD (A) Digitized Production (2) Highly Reliable Production System (B) Renewal of Production Management System (1) Intelligent Quality Control System Advanced TPS -Evolution Advanced of TPS, Global Marketing Strategy -Same Quality Worldwide, and Marketing at Global Optimum Production Locations- me Quality Worldwide, and Pr High (A) Innovation for Innovating Dealers Quality Assurance Building Bond with Sales Activities Customer (B) Reform of (E) Innovation of Office/shop (1) New Sales Employee Images Appearance & Operation Office Image Advanced TMS (2) Intelligent Customer (4) Intelligent Sales -Evolution of Market Information Network Marketing System Creating Activities - (C) Strengthening of (3) Rational (D) Innovation of Merchandise Power Advertisement Promotion System After-sale Service Quality Assurance Activities- (3) Renovating Work Environment (D) Increasing Older & Female Workers (4) Bringing up Intelligent Operators (C) Creating Attractive Workshop Environment The Key of the strategic Development of New JIT Fig.11-3 3-3 Advanced TMS, Strategic Development Marketing Marketing Model Model The Key of the Strategic Development of New JIT Fig.11-2 3-2 Advanced TPS, TPS, Total Strategic Production Production Management Management Model Model Fig. 11 High Linkage Model Advanced TDS, TPS & TMS for Strategic Development of New JIT For example, as a solution to technical problems, approaches taken by design engineers, who tend to unreasonably rely on their own past experience, must be clearly corrected. In the business process from development period is prolonged due to the scale-up effect between design to production, the development cost is high and time the stages of experiments (tests and prototypes) and mass production. In order to tackle this problem, it is urgently necessary to reform the conventional development design process. Focusing on the successful case mentioned above, the authors [31,32] deem it a requisite for leading manufacturing corporations to balance high quality development design with lower cost and shorter development time by incorporating the latest simulation (CAE, Computer-aided Engineering) and Science SQC. Against this background, it is vital not to stick to the conventional product development method, but to expedite the next generation development design business process in response to a movement toward digitizing design methods. Having said the above, the author [14] proposes Advanced TDS, Total Development Design Model as described in Fig. 11-1, and further updates TDS, a core technology of New JIT. New JIT is aimed at the simultaneous achievement of QCD by high quality manufacturing which is essential to realize CS (Customer Satisfaction), ES (Employee Satisfaction), and SS (Social Satisfaction). For realization, (1) customers orientation (subjective implicit information) must be scientifically interpreted by means of Customer Science model, namely, converting the implicit information to explicit information by objectifying the subjective information using Science SQC so as to (2) create High reliable development design system, thereby (3) eliminating prototypes with accurate prediction and control by means of Intelligence Simulation. To this end, it is important to (4) introduce the Intellectual Technology Integrated System which enables a sharing of knowledge and the latest technical information possessed by all related divisions. 5.2 Advanced TPS, Total Production Management Model ISBN: 978-1-61804-118-0 28
As digital engineering transforms manufacturing in workshops, a reduction in the engineering capability of members is often a result. This weakens the scientific production control that ensures that quality is incorporated in processes. Therefore, despite conventional success from the viewpoint of global production, it is an urgent task to strategically advance TPS (Advanced TPS) [14, 26] in order to enable. The author, considering the necessity of including and organically integrating these four elements in the strategic application of Advanced TPS towards global production, has clarified the Total Production Management Model as shown in Fig. 11-2. This model is an advanced production management principle designed to be applied as a global production technology and management model. The mission of Advanced TPS in the global deployment of New JIT is to realize CS, ES, and SS through production with high quality assurance. In implementing New JIT for uniform quality worldwide and production at optimal locations (concurrent production), the fundamental requirements are (i) the renewal of production management systems to accommodate digitized production (see (A) and (B) in Fig. 11-2) and (C) the creation of attractive workshop environments tailored to (D) the increasing number of older and female workers (see (C) and (D) in Figure 11-2). In more definite terms, what is needed is to (1) strengthen process capability maintenance and improvement by establishing an intelligent quality control system, (2) establish a highly reliable production system for high quality assurance, (3) reform the work environment in order to enhancement intelligent productivity, and (4) develop intelligent operators (skill level improvement) and establish an intelligent production operating system. Accomplishing these objectives will achieve higher-cycled next-generation business processes, enabling earlier implementation of uniform quality worldwide and production at optimum locations. 5.3 Advanced TMS, Strategic Development Marketing Model When the author views recent changes in the marketing environment, what is needed now is to develop Innovative business and sales activities that are unconventional and correctly grasp the characteristics and changes of customers tastes. Contact with customers has never called for more careful attention and practice and to offer an appealing, customer-oriented marketing strategy, it is important to evolve current market creation activities [14,29]. Therefore, the author proposes Advanced TMS, Strategic Development Marketing System as described in Fig. 11-3, that further updates TMS. Advanced TMS is aimed at the implementation of a successful Global Marketing Strategy by developing Same Quality Worldwide, and Marketing at Optimum Locations. As shown in the figure, Advanced TMS aims to achieve" a high cycle rate for market creation activities" and is composed of four core elements (1)-(4) : Core element (1), a new vehicle sales office image to achieve a high cycle rate for market creation activities by, (A) innovative bond building with the customer and (B) shop appearance and operation, is particularly important, These constitute the basis for the innovation of (C) business talk, (D) after sale service, and (E) images of the employee image. At a certain stage of execution, for example, it is more important to construct and develop (2) an Intelligent customer information network, (3) a Rational advertisement promotion system and (4) an Intelligent Sales Marketing System that systematically improves Customer information software application know-how about users who patronize vehicles of various makes. This information network turns customer management and service into a science by utilizing TMS according to customers involvement with their vehicles in daily life. The strategic new marketing model which applies the proposed "Advanced TMS" is presented in the next section. 6 Application - Strategic Development of New JIT Principle and Its Effects at Toyota Introduced in this section are case studies where management technology was enhanced at a leading manufacturer, Toyota. In each case, Science TQM was systematically and organizationally incorporated to verify the validity of New JIT, which was proved effective in improving quality management technology. 6.1 The Effectiveness of Advanced TDS For example, among the case studies utilizing Advanced TDS that contributed to the establishment of the development designing core technology, TDS, are the establishment of the Concrete Design Conception Support Method [20,22] that assists the idea formation process of a designer, and also the ISBN: 978-1-61804-118-0 29
establishment of the Automotive Aerodynamic Prediction Model [33] which incorporates high precision CAE for highly reliable designing and a shorter development period. Moreover, through cooperation between suppliers and the development designing, production, sales service, and purchasing procurement divisions, the mechanism of such worldwide technical difficulties as brake squealing [34,35] and oil seal leakage on the transaxle [21] were clarified. Then these technical results were used to enhance the prediction precision of the CAE numerical simulation, thus bringing about a landmark success in quality improvement. These cases were the fruits of the Total Task Management Team activity, which is a cooperative activity where members of the top management class take the lead and set the pattern as a supervisor for resolving these management technology issues. Through company-wide cooperation and partnering based on the platform formed with affiliated and non-affiliated suppliers, and also by realizing the simultaneous achievement of QCD, the strategic innovation of quality management was accomplished [7,16,36]. 6.2 The Effectiveness of Advanced TPS Next, some of the case studies utilizing Advanced TPS that contributed to the establishment of TPS, a core technology for production engineering and manufacturing, are the establishment of the Quality Control System - TPS-QAS [25]. This is a system compatible with global production that intelligently integrated TPS and IT through full use of intelligent In Line-On Line SQC [23], as well as the Facility Operation & Maintenance Control System - ARIM- BL [24]. Another example is the next generation, Reform of the Work Environment [37] in which all divisions cooperated together. Here, divisions related to safety, health, and human resources development cooperated with one another in promoting the AWD-6P/J (Aging & Work Development 6 Programs Project), a program to reform the work environment so that it responds to the increase in older and female members of the work force in an attempt to adapt the automotive assembly process to these aging workers. Because the desired results were obtained, this project is now being actively deployed at production plants both inside and outside of Japan. 6.3 The Effectiveness of Advanced TMS Similarly, one of the case studies utilizing Advanced TMS that contributed to the establishment of the core technology for sales, TMS, is the establishment of the Toyota Sales Marketing System [27-29]. Its aim is to reinforce the ties with customers through scientific verification of the customers buying behaviour patterns, and thereby enhance the mixture effect of TV ads, newspaper ads, radio ads, flyers, and DM/DH (direct mail / direct handing). It also aims to raise the dealer visit ratio of the customers, and thereby achieve the desired market creation that improves business, sales, and service at the dealer [38]. 6.4 The Global Management Strategy of Toyota At the moment, study results attained through the cooperation of the manufacturing, production engineering, production control, and information system divisions in order to realize global quality and simultaneous global launch (optimal production), which are the keys to success in global production, are being integrated and developed to generate further results [39-41]. The first accomplishment was cultivating highly skilled intelligent production operators who can handle a highly advanced production system [42-43]. This system realizes high quality assurance to improve efficiency and reformed the facility maintenance system. Second, the establishment of the New Japan Production Model is also being promoted. This includes the optimization of an entire production plant via CAE numerical simulation, as well as the arrangement of production processes, including the production operators, robots, logistics, and transport [44-47]. Third, the establishment of the platform based partnering chain, with Quality Management as its core is also being promoted. In this chain, divisions such as purchasing procurement, production control, TQM promotion, and quality assurance play the leading roles in cooperating with other divisions such as technology control, production engineering, production control, manufacturing inspection, and sales, which in turn systematically and organizationally collaborate with suppliers. Through the means of this business approach, the establishment of the Quality Management Strategy Model is being promoted for the strategic simultaneous achievement of QCD at both the affiliated and non-affiliated suppliers [7, 48-52]. ISBN: 978-1-61804-118-0 30
7 Conclusion In this paper, the Advanced Management Strategy of New JIT, was proposed and its validity was verified through demonstrative case studies conducted at a leading manufacturer, Toyota Motor Corporation. The New JIT proposed by the author is now being subjected to verification of its validity at a number of Japanese manufacturers with a view to it being further developed and established as a New World Management Technology Model that realizes strategic quality management [53-56]. References: [1] Ohno. T., Toyota Production System, Diamond-sha, 1977. [2] Goto. T., Forgotten Management Origin- Management Quality Taught by GHQ, Seisansei Shuppan, 1999. [3] Amasaka, K., The TQM Responsibilities for Industrial Management in Japan- The Research of Actual TQM Activities for Business Management, The Japanese Society for Production Management, The 10 st Annual Technical Conference, Kyushu-Sangyo University, Fukuoka, Japan, 1999, pp. 48-54. [4] Nihon Keizai Shinbun: (1) Corporate Survey (68QCS) Strict Assessment of TQM (July 15, 1999), Worst Record: 40% Increase of Vehicle Recalls (July 6, 2000), (2) Risky "Quality": Apart from production increase, it is recall rapid increase (February 8, 2006), and Asahi Shinbun: (3) The Manufacturing Industry Skill Tradition Feels Uneasy (May 3, 2005). [5] Hayes, R.H. and Wheelwright, S. C., Restoring Our Competitive Edge: Competing Through Manufacturing, Wiley, New York, 1984. [6] Amasaka, K., New JIT, A New Management Technology Principle at Toyota, International Journal of Production Economics, Vol. 80, 2002, pp. 135-144. [7] Amasaka, K., Strategic QCD Studies with Affiliated and Non-affiliated Suppliers utilizing New JIT, Encyclopedia of Networked and Virtual Organizations, Vol. III, PU-Z, 2008, pp. 1516-1527. [8] Roos, D., Womack, J.P. and Jones, D., The Machine that Change the World The Story of Lean Production, Rawson / Harper Perennial, New York, 1990. [9] Womack, J. P. and Jones, D., From Lean Production to the Lean Enterprise, Harvard Business Review, March-April, 1994, pp. 93-103. [10] Amasaka, K., (keynote lecture) The Past, Present, Future of Production Management, The Japan Society for Production Management, The 20 th Annual Technical Conference, Nagoya Technical College, Aichi, Japan, 2004, pp. 1-8. [11] Taylor, D. and Brunt, D., Manufacturing Operations and Supply Chain Management- The Lean Approach-, First edition published by Thomson Leaning, 2001. [12] Gabor, A., The Man Who Discovered Quality; How W. Edwards Deming Brought the Quality Revolution to America- The Stories of Ford, Xerox, and GM, Random House, Inc., 1990. [13] Joiner, B. L., Fourth Generation Management: The New Business Consciousness, Joiner Associates, Inc., 1994. [14] Amasaka, K., High Linkage Model Advanced TDS, TPS & TMS - Strategic Development of New JIT at Toyota -, International Journal of Operations and Quantitative Management, Vol. 13, No. 3, 2007, pp. 101-121. [15] Amasaka, K., Constructing a Customer Science Application System CS-CIANS - Development of a Global Strategic Vehicle Lexus Utilizing New JIT-, WSEAS Transactions on Business and Economics, Vol. 3, No. 2, 2005, pp. 135-142. [16] Amasaka, K., Development of Science TQM, A New Principle of Quality Management: Effectiveness of Strategic Stratified Task Team at Toyota-, International Journal of Production Research, Vol. 42, No. 17, 2004, pp. 3691-3706. [17] Amasaka, K., Science TQM, A New Quality Management Principle: The Quality Management Strategy of Toyota, The Journal of Management & Engineering Integration, Vol. 1, No. 1, 2008, pp. 7-22. [18] Amasaka, K., Proposal and Implementation of the Science SQC Quality Control Principle, International Journal of Mathematical and Computer Modelling, Vol. 38, No. 11-13, 2003, pp. 1125-1136. [19] Amasaka, K., Science SQC, New Quality Control Principle: Quality Control Strategy of Toyota, Springer, 2004. [20] Amasaka, K. et al., Studies on Design SQC with the Application of Science SQC, Japanese Journal of Sensory Evaluations, Vol. 3, No. 1, 1999, pp. 21-29. [21] Amasaka, K. and Osaki, S., A Reliability of Oil Seal for Transaxle - A Science SQC Approach in Toyota, Case Studies in Reliability and Maintenance, John Wiley & Sons, Inc., 2002, pp. 571-581. [22] Amasaka, K., The Validity of "TDS-DTM", A Strategic Methodology of Merchandise- ISBN: 978-1-61804-118-0 31
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