YNU

Inside Japan:

April 19, 2013

Understanding Japans current and future automotive industry

The Univ. of Michigan, sponsored by Doshisha Univ.

Roles and Responsibilities of

Manufacturing Engineering
in Japan and Europe
Is M.E. the lynchpin of a lean productive enterprise?
Daniel Arturo Heller
(daheller@ynu.ac.jp)
Yokohama National University
D.A. Heller, 2013

YNU Roles and Responsibilities of Manufacturing Engineering in Japan and Europe

Agenda
1. Introduction: What is M.E.?
2. System Integration: Necessary & Difficult
3. Intl Comparison of System Integration
Japan = Key role played by M.E.
Europe = Key role played by development
(i.e., product engineering)

4. Overseas expansion of Japanese companies:

Doing Japanese-style M.E. abroad (or not?)
D.A. Heller, 2013

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What is M.E.?
Manufacturing Engineering sits between product
development and manufacturing in the value
chain
Roles of M.E.
Set plant layout & production process flow
Establish standard operating procedures
Design production equipment

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Manufacturing Engineering

D.A. Heller, 2013

M.E.

YNU Roles and Responsibilities of Manufacturing Engineering in Japan and Europe

Agenda
1. Introduction: What is M.E.?
2. System Integration: Necessary & Difficult
3. Intl Comparison of System Integration
Japan = Key role played by M.E.
Europe = Key role played by development
(i.e., product engineering)

4. Overseas expansion of Japanese companies:

Doing Japanese-style M.E. abroad (or not?)
D.A. Heller, 2013

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System Integration Example

Lynchpin
System Integrator

In Japanese: (ogiwa no kaname)

D.A. Heller, 2013

(Photo Sourcehttp://japan.osu.edu/culture_box_program.html)

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Integration is often Difficult

Integration is made difficult by:
Uncertainty in user needs
Trade-offs among a products functions
High complexity of structural component
interactions

Automakers faced with great challenges in

all three of these areas

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Difficult System Integration

Examples
Piston and Piston Ring
Car Door
Car

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Piston and Piston Ring

(: Aisin Seiki, 2009 Company Profile)

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(: Riken Corporation, 2008 Corporate Outline)

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Car Door

(: Aisin Seiki, 2009 Company Profile)

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Car

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(Mazda Familia 1966; : Toyota Automobile Museum brochure 2005)

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RX-8
(2003)

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(Source: Mazda Motor)

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YNU Roles and Responsibilities of Manufacturing Engineering in Japan and Europe

Agenda
1. Introduction: What is M.E.?
2. System Integration: Necessary & Difficult
3. Intl Comparison of System Integration
Japan = Key role played by M.E.
Europe = Key role played by development
(i.e., product engineering)

4. Overseas expansion of Japanese companies:

Doing Japanese-style M.E. abroad (or not?)
D.A. Heller, 2013

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System Integration in Automotive

Product Development
(Clark & Fujimoto, 1991; Higashi & Heller, 2012)

Integrate movement of information

Maximize the time spent on value adding activities
Two Types of Integration
External integration (achieving fit w/ customer needs)
Internal integration (coordinating divisions & suppliers)

Key complicating issues : Uncertainty in

User needs, user interface
Products structural interactions
Products functional interactions

Principal system integrator (the lynchpin):

HWPM (Heavy-Weight Product Manager)
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Integrative Role of HWPM

Heavy-Weight Product Manager (HWPM) is the
cornerstone of lean development for products:
With high complexity, and
Equivocal user needs

HWPM leads both external and internal system

integration (i.e, plays the role of both a planner
and an engineer)

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Automotive Lean Manufacturing

(Womack et al., 1990; Koike, 2008)

Whole plant optimization to minimize waste

Integrating the movement of
Material
Work Activity
Information
to get smooth flow from input to output.

Key complicating issues: Uncertainty in

Market demand
Manufacturability of product design
Parts/component delivery

Principal system integrator (the lynchpin):

Shop-floor worker
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But, who integrates Product Development (D)

and Manufacturing (M)?
For complex assembly products, there is
often a vast chasm between D and M

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Development

Manufacturing

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Role of M.E. in (Toyota-style) Japan

Strong capability in Manufacturing
Engineering can be the bridge between
product development and manufacturing
M.E. can be the principal system integrator
for the whole productive endeavor

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Development

M.E.

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Manufacturing

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Why give M.E. this role?

An unlikely candidate to be key player
M.E. neither develops nor manufactures the
product

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M.E.

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Why M.E.?
M.E. can occupy a neutral position
Because it neither develops nor manufactures the product

M.E. is positioned to look both ways

For problem solving M.E. is independent of the local
interests of D and M
M.E.s neutrality frees it to be the guarantor of the
customers interest

M.E. can translate, mediate and adjudicate:

Between product development and manufacturing
Across development and manufacturing functions
Within development and manufacturing functions
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Tend to see

Customer!

or

But with PE as mediator/adjudicator

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Two-way System Integration

This role for M.E. is typical of Japanese management:
A focus on the key role played by the middle
System thinking needed
Systems knowledge = systems thinking
Connection knowledge (Sobeks term)
System-level design (Sobek, 2006)

The aim is full-system optimization

Products that are complex systems require organizations
that efficiently manage complex management systems
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M.E. in (Toyota-style) Japan

Role = System Integrator of Productive Enterprise
Responsibility = 1st be customers guarantor
2nd be active internal mediator

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M.E. as Lynchpin

M.E.
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Impact of M.E. as Lynchpin

On Product Development
Less designing
More choosing
driver of strategically focused design work?
On Manufacturing
Less capital investment
More skill development of workers
driver of improved market responsiveness?
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The result

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Photo Source: wikipedia

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The result

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Photo Source: wikipedia

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The result

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Photo Source: wikipedia

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The result

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Photo Source: wikipedia

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Does M.E. play such a system

integrating role in European Companies?

M.E.

M
In most cases

NO
Way!

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M.E. in Europe

(M)E

new
production
equipment

D.A. Heller, 2013

By closely linking M.E.

with Development, M.E.s
Output can be clearly
defined.
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In Europe, rather than Japanese (Toyota) style two-way,

one-way (upstream to downstream) integration seen.

Development
+(M)E

Manufacturing
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M.E. in Europe (typically?)

Role = Designer of new production equipment
Responsibility = Make high-spec equipment
(but not responsible for actually achieving the high specs on a
day-to-day basis)

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The result

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Photo Source: http://www.autoexpress.co.uk

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The result

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Photo Source: http://www.autoexpress.co.uk

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The result

D.A. Heller, 2012

Photo Source: wikipedia39

YNU Roles and Responsibilities of Manufacturing Engineering in Japan and Europe

Agenda
1. Introduction: What is M.E.?
2. System Integration: Necessary & Difficult
3. Intl Comparison of System Integration
Japan = Key role played by M.E.
Europe = Key role played by development
(i.e., product engineering)

4. Overseas expansion of Japanese companies:

Doing Japanese-style M.E. abroad (or not?)
D.A. Heller, 2013

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Empowerment of M.E. in
Overseas Subsidiaries
To get global optimization, become truly lean, must
strengthen M.E. in the overseas subsidiaries of
Japanese automotive companies
But M.E. is not a natural repository of power and
influence. This is especially true outside of Japan.
Special organizational initiatives needed.
For example in Toyota, Japan:
High % of top management w/ M.E. background
As of 2007, in Toyota City there were more than 8,000
Manufacturing Engineers (called production engineers)
(not including plant-based manufacturing technicians)
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Capabilities needed for

Japanese-style M.E. to work
Systems thinkers w/ connection knowledge
Deep understanding of development
Deep understanding of manufacturing
Strong working knowledge of CAD/CAM

Interpersonal skills (negotiation)

Organizational memory
Understanding of customers interest
Not easy to find (develop) such manufacturing
engineers outside of Japan.
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A Long-Term Challenge
More standardization of development needed
Shared priorities facilitate standardization
Getting agreement on what are the right priorities takes
time and effort
Everyone must buy-in to these priorities

Cultural transformation needed

Empowering overseas M.E. function
Career path management; top-level people into M.E.
Only possible when the whole enterprise values and
rewards systems thinking

Recruiting & retaining appropriate persons

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(Keeping them
in M.E. is
even harder)
D.A. Heller,
2012 Business Review, May 2010)
(Cover
of Harvard

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A concluding word on doing

Japanese-style M.E. overseas
Japanese-style M.E. all begins with understanding
ones neighbors (the upstream & downstream
processes you interact with)
Best way to diffuse it = just do it (yourself)!
Do your own job considering your neighbor

Value connection knowledge (Sobek) and reward it

and the lean results will naturally follow.
The problem is such diffusion takes time. (Can it be accelerated?)
For the foreseeable future, expensive & supply-constrained Japanese
expats and short-term assignments must continue to shoulder the
burden of doing Japanese-style M.E. overseas. (Is there enough time?)
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Selected
References
Clark, K. B., & Fujimoto, T. (1991). Product Development Performance, Harvard Business School Press,
Boston, MA.
Higashi, H., & Heller, D.A. (2012). Thirty Years of Benchmarking Product Development Performance:
A Research Note. The University of Tokyo Manufacturing Management Research Center, Discussion
Paper Series, No. 395. http://merc.e.u-tokyo.ac.jp/mmrc/dp/pdf/MMRC395_2012.pdf
Koike, K. (2008). "Kaigai Nihon Kigyo no Jinzai Keisei", [Human Resources Development of Japanese
firms overseas], Tokyo: Toyo Keizai Shinbunsha (in Japanese).
Marinov, M. & Heller, D.A. (2013) Manufacturing Management Research Center, F-202 Discussion
Paper. http://merc.e.u-tokyo.ac.jp/mmrc/dp/pdf/MMRC431_2013.pdf Todays focus
Shibata, H., (2009), "A comparison of the roles and responsibilities of manufacturing engineers in Japan
and the United States", The International Journal of Human Resource Management, Vol. 20, No. 9, pp.
18961913.
Sobek, D.K., II (2006) System-Level Design: A Missing Link? International Journal of Engineering
Education, vol. 22, no. 3, pp. 533-539.
Whitney, D.E., Heller, D.A., Higashi, H., & Fukuzawa, M. (2007) Production Engineering as System
Integrator? A Research Note based on a Study of Door Engineering and Assembly at Toyota Motor
Corporation Manufacturing Management Research Center, F-169 Discussion Paper. http://merc.e.utokyo.ac.jp/mmrc/dp/pdf/MMRC169_2007.pdf Todays focus
Whitney, D.E. (2008) Design and Manufacturing of Car Doors: Report on Visits Made to US, European
and Japanese Car Manufacturers in 2007 Manufacturing Management Research Center, F-202
Discussion Paper. http://merc.e.u-tokyo.ac.jp/mmrc/dp/pdf/MMRC202_2008.pdf
Womack, J.P., Jones, D.T. & Roos, D. (1990), The Machine that Changed the World: The Story of
Lean Production, Rawson Associates, New York, NY.

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Thank you!

Q&A
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Appendix

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Tasks of Manufacturing Engineering

(1) Line design - designing production lines or
production processes;
(2) Method development - developing production
methods, and/or equipment;
(3) Production preparation - setting up new
production machinery or equipment, making
jigs, tools and dies;
(4) Production improvement - improving existing
production lines and processes, with the aim
of getting productivity increase.
M. Marinov & D.A. Heller, 2013

Shibata (2009)

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Micro-level Summary:
Distribution of Manufacturing Engineering Tasks

Focus on
analytical tasks in
the phase

(Europe)

(Japan)

Key: Blue indicates holder of overall responsibility; Lead role means coordinate, strongly influence
decision making, and execute the majority of the tasks in the phase; Informational support means focus
on providing feedback from the point of view of the line operators; At both Supplier E and Supplier J, ME
provides various forms of technical and informational assistance to MT in the production preparation
phase.
Figure Source: Marinov & Heller (2013), p. 18; see also, Shibata (2009)

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Types of work organization in

manufacturing engineering JAPAN
In assembly and part-processing shops
automobiles, car components, electronics
Line design

Method
development

ME
ME - manufacturing engineers
MT - manufacturing technicians
M. Marinov & D.A. Heller, 2013

Production
preparation

Production
improvement

MT

Shibata (2009)
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Types of work organization in

manufacturing engineering the U.S.
In assembly and part-processing shops
automobiles, car components, electronics
Line design

Method
development

Production
preparation

Production
improvement

ME
ME - manufacturing engineers
Shibata (2009)
M. Marinov & D.A. Heller, 2013

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Key Differences between Japan and the US

Shibata (2009, p. 1907)

1. Overlapping or not
Compared to the U.S. companies,
3. Localized or not
the Japanese companies exhibited
downstream personnel who are
US: MT localized to plant
much more heavily involved in
Japan: Inter-divisional
upstream processes
tasks and functions of MT
2. Hierarchical or not
Japan Horizontal relationship between ME and MT
US Vertical relationship between ME and MT

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Why is ME in Japan and the US different?

(1) Integration (suriawase) orientation - higher
integral capabilities in Japan.
(2) Production workplace orientation - employees
are heavily oriented to:
production
production workplaces
on-site probelm solving
Shibata (2009)

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Segregation of work in U.S Companies

In the U.S., Engineering drawings are not tangible
objects, separating the engineers, and to a lesser degree
the technicians, from the assemblers.
Bechky (2003a, 2003b)

In Japan, engineering drawings are tangible objects

and serve as common ground that can reconcile
differences among groups.
Shibata (2009)
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Middle-up-down
Management

Middle-Up-Down figure

(Source: Nonaka
& Takeuchi, 1996,
Knowledge Creating
Company)

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1996191 56

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Middle-Up-Down vs. topdown/bottom-up

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1996192 57

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/West

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/Japan

top

top

middle

middle

bottom

bottom

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/West

/Japan
top

top
middle

middle

bottom
bottom

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/West

/Japan

boss

boss

worker worker

worker worker

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/West

/Japan

SourceLean Enterprise Institute

2008kaizen!

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Whats a lynchpin?
Pin inserted through an axletree to hold a
wheel on

(Source: http://www.thefreedictionary.com/lynchpin)

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(s: http://farm1.static.flickr.com/14/18180390_cab6aad207.jpg
http://www.disabledparents.net/imagesres/cribpics/hasp-linchpin-pull-rev.JPG)
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A lynchpin
pin inserted through an axletree to hold a
wheel on

a central cohesive source of

support and stability
(Source: http://www.thefreedictionary.com/lynchpin)

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