On Concepts & Methodologies in TQM Activities & TPM Activities: Toward Intelligent Manufacturing

On Concepts & Methodologies in
TQM Activities & TPM Activities:

Toward Intelligent Manufacturing
Dr. HIROSHI KUBOTA
1
Backgrounds for the Subject
 I have observed actual practices of TQM activities and
TPM activities in various organizations through
examinations for Deming Prize and Awards for PM
Excellence.
 Excellent business results could be attained for various
organizations in the world through TQM and TPM.
 TQM and TPM are both socio-technical system
approaches which have developed mainly in Japan.
 Although TQM and TPM are effective methodologies,
which are continuous organizational kaizen activities
with total participations, no studies through the
empirical action research have ever tried to compare
TQM and TPM under the unified conceptual framework.
2
Contents
 TQM and TPM Toward Intelligent
Manufacturing
 Review through Comparison between TQM
and TPM
 Integration of TQM and TPM as Effective
Management Methodology for Organizational
Kaizen Activities
3
TQM and TPM Toward
Intelligent Manufacturing
4
Adaptation to environmental change: toward continuous growth
 Change in environment is universally true: Ideal and reality certainly change
 Company is a living system like a creature. Environmental adaptability is the
necessary condition to survive
 Be adaptive to the environmental change by establishing response to environmental
change (fluctuation in demand, exchange rate, business condition) and respond to
structural environmental change (Self-organization, innovation)
 Pro-actively acknowledge, establish and solve problems: Proactive to
environmental change
 Competition for survival by corporate domain: Strategy is the key. Be aware of the
market, competitors and yourself
 Establish an image of achieving continuous growth: in which direction should
movement be made to become an excellent company
 Establishing organizational capability (core competence) as a requirement for the
realization of continuous growth
 SWOT analysis for continuous growth: competition analysis and self-evaluation
 Extraction of problems and theme setting for the realization of ideal organizational
capability
 Establishment of infrastructure and problem-solving activities to resolve problem
Hiroshima Institute of Technology 5
themes Hiroshi KUBOTA
Outcome of continuous growth: Outer competitiveness
 ROE: Sales profit rate, capital turnover rate, shareholders equity to total assets
 Profit, stock price, grading
 Sales: size, growth rate, share (competitive status of the market: new products,
differentiation, high-value added product, No.1 or No.2 in the industry), component
ratio (product group, industry, customer, domestic and abroad)
 Cost; raw material cost, labor cost, fixed and variable cost, distribution cost
 Intellectual property, patents
 Labor productivity, added value productivity
 Total equipment efficiency: hourly operating rate, capability operating rate, non-
defective product ratio
 Production capacity, process capability
 Inventory: product, in-process inventory, raw material
 Quality failure cost: recall, claim, inadequate
 Energy, water, industrial waste cost
 Safety, sanitary environment: accident, retirement, absence

Hiroshi KUBOTA
Organizational capability for continuous growth:
Inner competitiveness
 Organizational capability: capability in technology and response,
vitality；
＊Technical capability: new product development, technological
development, production technology, equipment, evaluation,
examination
＊Response capability: independence and promptness, single-channel,
seamlessness, acknowledgement, sensitivity, concurrent, digital-
engineering, networking
＊Vitality: continuous improvement, project team & small group
activity, full participation, incentive system
 Leadership and commitment: determining direction in which to work,
priority, motivation, policy and diagnosis
 Business process: production, procurement/distribution, marketing,
SCM, CRM

Hiroshi KUBOTA
 Establishment and deployment of strategy: research/project, policy
management, strategic alliance, cross-divisional projects
 Relationship with stakeholders: customers, employees, suppliers,
society, shareholders
 Corporate social responsibility: information disclosure, social
contribution, environmental conservation, safety and health
 Power of the workplace: skill, self-management, self-maintenance,
improvement, 5S, visualization, daily management
 Learning capacity: individual and organizational learning, progress,
knowledge management system
 Organizational culture, code of conduct: customer
orientation/satisfaction (comfort, pleasure, excitement), respect,
mutual trust, fact-based, team mate, affection and knowledge
 Organizational infrastructure: human resource management, IT
utilization

Hiroshi KUBOTA
Good company
1．Strong company
Strong technical capability/
Strong products/ services business operations
Good business performance Favorable asset components
2．Friendly company
Social responsibility
People-friendly
Eco-friendly
3．Cheerful company Organizational vitalization

Lively

Hiroshi KUBOTA
Corporate presence and stakeholders
 Company as an entity in society: social responsibility
 There are stakeholders for a company being mutually dependent
upon each other
 Company is to provide products and services: customer creation and
customer satisfaction
 Company is to provide employment: work and living for employees
 A company/organization which is needed, trusted, respected will
survive
 The factor to exist is to become a good company for stakeholders
(customers, employees, business partners, shareholders, society)
 The relationship based on trust is the most important tie among
stakeholders
 Foundation of reliable relationship is the balance of incentive and
contribution at a high level: Win-Win relationship
 Simultaneous realization of customer satisfaction and employee
satisfaction:
“Employee satisfaction without satisfying customers is irresponsible
Customer satisfaction without satisfying employees is unproductive”
Hiroshi KUBOTA
To realize an organization with a larger presence
Provision of products and services that

satisfy customers needs and expectations
Organizational vitalization Adaptation to the

Enhancing and exercising of environmental change
corporate capability Organizational innovation
Awareness, exposure and

Enhancing business performance
resolution of problems
Strengthening of competitiveness
focusing on quality

Hiroshi KUBOTA
Basic Concepts and Fundamental
Requirements for Intelligent Manufacturing
 Intelligent Manufacturing for Realizing High

Value Added Products and Sustainable
Competitive Superiority
Under Changing Uncertain Environment and
Severe Mega-Competitive Situations
 Organizational Learning and Knowledge
Creative Organization
 Activation of Autonomous Individuals and the
Integrated Organization through Human
Resource Management and Kaizen Activities
12
Intelligent Manufacturing Property of
Leading Companies in Japanese Industry
 Intelligent Manufacturing sources;
Principles of thoroughgoing for the scene and actual thing,
Hi-sprit organization and developing talented parson, and
Developing of production technologies and equipments
through kaizen activities
 Components of Competitive Intelligent manufacturing;
The intelligence in Individuals of every department
 Intelligent Manufacturing Organization;
Activation of each front-line people’s intelligence
Systemization and integration of intelligences in individuals
Leadership to produce good business results and to
strengthen organizational ability
13
Requirements for Intelligent Manufacturing
under Changing Environment and Mega-Competition
Ensuring Competitive Position through Adapting
Oneself Speedy for Environmental Changes
Pursuing Desirable States Self-Reorganization
（Kaizen/Innovation）
Scientific Approach
Quality Creation and
Effective Utilization Quality Assurance
of ICT Target Costing and Control
Reduction of Uncertainty Lean Operation
And Coordination
Reduction of Lead-Time
Synchronized Production and Inventory
Based on Real Demand Elimination of all Losses
Information 14
TQM；
Pursuing Quality from the perspective of Customer’s Value
Activation of Organization and Kaizen

（Total Participation and Continuous Kaizen）
Power / Strength of Core Competences /

Product, Sales Organizational Ability;
and Manufacturing Technology, Speed and Vitality
Customer Creation and Adaptation for Changing

Customer Satisfaction Business Environment
Sustainable Competitive Advantages and

Excellent Company Value / Cash Flows
15
TPM；Focus to Technology/Skill and Organizational Activities
For Effective Plant Maintenance and Kaizen
Activation of Organization and Kaizen

（Total Participation and Continuous Kaizen）
Elimination and Prevention of Technology/ Skill,
All Losses on Manufacturing System Power on Site People
Production could be Provided Innovation for Activities and

for any Demand on time System of Production ;
with Less Inventory Adaptation for Environment and
Ensuring Sustainable Competition
Realization of Profitable Production Management System

16
Basic Recognition on TQM and TPM
Total Participation and Continuous Kaizen

Organizational and Systematic Intelligent Manufacturing
Means for Attaining Business Objectives（Better Results）
？Coping with Actually ？Tendency to Emphasis
Alternative one on Differences
Difference of Focus and Methodology/Tools applied
Different Prizes for Practice, Different Promotion Organization
Not Inconsistent of Methodology/tools applied

Expectation for Complement and Synergy Effects
Constitute of Conceptual Framework Through Empirical

Toward Integration/Fusion Action Research
17
Intelligent Manufacturing for Realizing
Competitive High Value Added Products
Organizational Activities pursuing Quality from Customer Value （TQM）
Proposal to each Customer, Creative Development of

Sales with added Value Product/Technology
Differentiation and Intellectual Property and Power Brand

Obstacles to Enter/Transfer
Innovation of manufacturing/
Technology/Skill on
Production System（TPM）
Manufacturing/Equipment
Scientific Approach and
Kaizen Activities Human Resource Management
Customer Creation and Exploitation of New Market/

Customer Satisfaction Expansion of Market Share
Progress of Quality of Life and Welfare, Results and

Execution of Corporate Social Responsibility Competitive Ability 18
Review through Comparison
between TQM and TPM
19
Basic Common Property of TQM and TPM
Objects are Socio-Technical Systems；

Organization is a Group of Peoples
Core of the Organization is the Technology
Organization is a Living System
Management Technology；
The Aims are Results and Competitive Superiority
trough Excellent Leadership and Commitment
by Top Management
Kaizen Activities;
Formation and Solving of Problems
Activation and Learning of Organization
Resources Management;
Human Resources and Information
20
Scope and Focus
TQM; TPM;
From Quality of Product/Service Overall Equipment Efficiency
to Quality of Activities, Human,
System and Management Elimination of All Losses for
Manufacturing Activities System
Company wide／Stakeholders
Product Cost Reduction
Customer Satisfaction, Reduction of Lead Time
Profits (Flow) and Assets (Stock) and Inventory
Quality as Fitness；
Claim/Complaint, Unfitness
Evolution of Quality Concepts； Quality Maintenance,
From Fitness to Creation Individual Improvement,
Autonomous Maintenance,
Marketing and Product/Technology Planned Maintenance, Cellular,
Development as Important Areas JIT, Set-up and Adjustment,
21
Unmanned System
From the company’s point of view: From the customer’s point of view:
Challenges in production Challenges in the market
Conformity to Standards:
Control regulation
Fitness for use (Aims and Conditions)
Fitness of Cost : Target costing and Control
Fitness for Latent Requirement
Demand creation
Fitness for Corporate Culture : Brand
Fitness to Social and Global Environment
Change in basic challenges for quality
S.Siba & D.Walden(1993):Four Practical Revolutions in Management, Center for Quality Management,pp.3-17
Hiroshi KUBOTA
Consistency on Scope and Focus of TQM and TPM
TPM approaches TQM according to Expand its Territory from

Manufacturing to Business Process and to Full and Evolve
Activities in order to Pursue the Ultimate Goals of Reduction/
Limitation of Opportunity Loss/Cost
World Class Award

TQM
Opportunity Special Award
Loss/Cost Creative ＴＰＭ
Epoch-making ＴＰＭ
Ideal ＰＡＲＴⅢ
PM Excellence
Theoretical ＰＡＲRTⅡ
Overt ＰＡＲＴⅠ
Territory
Manufacturing Production Business Process
Site Process 23
Figure 3. Evolution Process of TPM Activities
Methodology and Tools
Many Methodologies of TQM／TQC has been Build in TPM;
Policy Management, Quality Function Deployment, Autonomous
Activities, Statistical Methods, Reliability and so on
Overlap ＰＭ Circles Evolutional ＱＣ Circles

Autonomous Maintenance Autonomous Management
Workshop of Maintenance Tendency
and Kaizen of Fusion Practical Education/Training of QC
TQM and TPM are both Organizational Management/Kaizen Activities
Definite Definition of Losses in TPM Emphasis on Recognition of

Problem in TQM
TQM and TPM are Based on both Scientific Approach（Factual Approach）
Technological Examination in TPM； Utilization of Statistical Methods in TQM；

Hypothesis for the Mechanism Null Hypothesis
Engineering Approach
Social Scientific Approach 24
By demonstrated the Evidence
Methods for Activation of Kaizen Activities
5S and Visualization（Show and Share）；
Creation of Ideas
Single Set-up and Adjustment, JIT Production System
Elimination of Non Value Operation, Simple Automation,
Kaizen of equipment
Method for total Optimization

Through bottleneck Analysis, TOC
Methods for Realization of Zero/Ultimate Goal

PM Analysis, CAE, Complete Conditions for Zero
Methodology/Tool Utilized in TPM

could be Utilized effectively too in TQM
25
Application of Loss Concepts in TPM to Problem Definition in TQM
Active Definition of Opportunity Loss；

Overt Loss, Theoretical Loss and Ideal Loss
Correspondence to Expansion of Activities Fields in TPM
Utilization of Methodology of Strategy, Marketing, Product Planning
Learning from Methodology in TPM
From Statistical QC Methods to Scientific QC Methods；

Active Utilization of Technology/Skill and Experience
Esteem for Specialty and Existence of Each Member of the Organization；

Cross Functional Project Team, QC/PM Circle
Self-Realization
26
Promotion of Organizational Activities
TQM and TPM should be developed to Adapt for Environmental

Changes ；With Consistency, Continuation and Thoroughgoing
Awards on TPM are Constituted in order to Raise the Level of Activities

Step Up Development is Provided for Each Core activity.
Corresponding Relation Between Awards and Developmental Steps
TPM has been Promoted and Activated by consultants of JIPM；
The Committee of Award of PM Excellence are Constituted

by Professor and Specialist in Various Relevant Fields.
Examination for Awards of TPM is performed for Business Unit
By the member of the Relevant special Field
Instructive Comments on the Examination are Given

By the Examiners at the Final Day.
27
On Relation Between TQM and TPM
TQM(Total Quality Management) TPM(Total Productive Maintenance)
( Common )
Results Social Corporate Responsibility Definition/Concepts of Loss
Cash flow, ROA Profit and Loss Theoretical / Ideal Loss
Share, Defectives Total Efficiency of Equipment
Process Business Total Participation Production
Quality Concepts of Quality Quality Assurance Quality Maintenance
Quality Creation, CS Quality Control Condition for zero defect
Quality Function Deployment
Approach QC Approach Factual Approach Development by steps
& Tools QC 7 tools Continuous Kaizen Model development
New QC 7 tools Problem Solving Trough-neck Analysis
Statistical Approach Making Visible PM analysis
; SPC, DOE, System Flow Diagram Why-why analysis
Multivariate Analysis Putting/Removing Tags
Sampling Inspection Cross functional Team Single Arrangement
Reliability Approach ECRS, Ergonomics Man-Machine Relation
SOP, OPL
Horizontal Deployment 28
Motion & Time Study, Layout
On Relation Between TQM and TPM
TQM(Total Quality Management) TPM(Total Productive Maintenance)
( Common )
System/ Management by Policy Daily Management Phase Management

Activities Quality Management Production Management Autonomous Maintenance
Marketing System New Product Development Planned Maintenance
R&D Small Group Activities Tool Management
Project Team Activities
Safety & Environment
Supply Chain Manegement
Leadership/ Commitment
Education and Training
Enrichment, Enlargement
Learning, Interaction
Information System
Utilization of ICT
Activation/ Incentive System
Award, Diagnosis, Consultant
Security, Risk Management
Compliance 29
Integration of TQM and TPM as the
Effective Methodology of
Organizational Kaizen Activities
30
From the View of Customer Value and Quality Creation
Management and Kaizen through TQM
1) New Products and Competitive Position in the Target Market;
Concurrent Engineering, Customer Relationship Management,
Customer Satisfaction/Delight, Zero Claim, Quick Response
2) Decreasing Defects/Defectives; Quality Assurance/ Improvement
3) Speed Economic Effects and Cost Reduction;
Reduction of Cycle Time and Lead Time, CR/QA, Speed QA
4) Zero Emission and Reuse/Recycle of Resources and Utilities
5) Quality of Work Life; Work Environment and Healthy/Safety
Product Planning, Strategic Policy Management(Breakthrough Management),

Daily Management, Cross-Functional System, Quality Function Deployment,
Team and small group(QC cycle), People Management(Human Resource
Management, Education/Training), TQM Promotion(Diagnosis, Review),
SQC, SPC, PDCA, Methodology of Problem Solving , Factual approach,
QC 7 tools, New QC 7 tools, Reliability Methods(FMEA,FTA,Proof,Safe)
31
Customer Value Creation and
Customer Satisfaction
 Fundamental requirements for existence of business are
customer value creation and customer satisfaction.
 The base of customer satisfaction is in the quality could be
decomposed into the quality of entity provided for
customer, the quality of process and the quality of
environment. Any customer has an aggregate of the variety
of needs depending on social context.
 Although customer satisfaction may influence on customer
retention and word of mouth, it could be defined by the
evaluation after purchase and use.
 Customer satisfaction requires customer value creation,
but customer satisfaction doesn’t imply customer value
creation for realizing customer creation.
32
Definition and Estimation of Opportunity Losses
Kaizen Activities through TPM
1) Innovative Progress of Product performance;Technological Establishment
2) Realization of Zero defect;
Improvement and maintenance of Good Quality Conditions on Production
3) Dramatic Cost Reduction; New Method/Material, Modular Assemble on
Parts, Integration of Lines, Extension of Tools’ life, Breakdown/Trouble
Zero, Stockless, Less Energy, Waiting/Stopping Zero, Less Transportation
4) Epoch-making Increasing Capacity and Substantial Reduction of Lead
Time; Flexible Straight Lines
5) Active Promotion of Environmental Maintenance and Safety & Sanitation;
5R(Refine, Reduce, Reuse, Recycle, Retrieve Resources)
6) Minimizing Investment; Renewal Retro-Equipment, Simple Automation
by Karakuri Kaizen
6) Activation of Organization and Development of Creative Talented People;
Workshop of Kaizen, Maintenance, Quality, Skill and so on
Loss tree, Through Bottleneck Analysis, Single Time Set-up, PM analysis,

Why-Why Analysis, Autonomous Preventive Maintenance, 5S, Good Quality
Condition (Quality Maintenance), Visualization , Workshop, Step development
33
Model Development, Horizontal Development
The Basic
Structure of TDS
Management (TOYOTA
at TOYOTA Development System)
TQM;
Organizational
Activation
TPS TMS
(TOYOTA (TOYOTA
Production System) Marketing System)
The Function of TPS at TOYOTA 34

Mission & Vision and Objectives
Strategy Target／Goal Setting

View of Balanced Score Card Policy Management
Management Technology;
Policy(Breakthrough) Management
Process/System approach
Factual(Scientific) approach
Environment Resources/People Management
TQM
TPS TPM
Socio-Technical Activities
(Resources)Input-Process-Output(Results)
35
Management Technology on Management Implementation
Manufacturing Innovation and Strategy
for Realizing Quality Creation
 Japanese style brand strategy for customer value creation should be
developed without depending mythology.
 Manufacturing innovation should be pursued with making the most of
strength on Japanese manufacturing skills and organizational culture
such as continuous kaizen with company-wide and in thoroughgoing of
the scene and actual thing.
 In order to successful manufacturing innovation three management
technologies (TQM, TPM and TPS) should be integrated and exploited
effectively such as customer in straight production system, construction
of brand DNA, customer value assurance related with QFD, definition
and reduction toward zero for theoretical loss and ideal loss, total
optimum based on through-bottleneck analysis and TOC,
thoroughgoing pursuance of less (trouble less, process less, setup time
less and so on).
36
Toward to Integration of TQM and TPM
 Because both TQM and TPM are management technologies for socio-
technical management system and goal-seeking organizational activities
to achieve its mission and objectives, they are able to integrate mutual
complementally.
 TPM has many excellent concepts of loss, step evolution for each
activity’s area, PM analysis, through-neck analysis, workshop such as
karakuri kaizen and autonomous maintenance, and so on, could be
embed in TQM enlarge to quality of management.
 Since the effectiveness of technological site for any applied
methodology/tool could be evaluated by results with rationality
correspondence with each issues, in any application the selection from
methodology and tool of TQM and TPM should be made for copying
with each special problem.
 Since social site of the integration may connote complicated strong
psychological resistance, excellent leadership and commitment of top
management is essential to successful integretion.
 Effective problem solving activities should be implemented creatively
for overcoming issues abstracted through pursuing the ideal
appropriate states by cross-functional project teams with relation to
policy management. 37
Summary
 Methodologies in TQM and TPM could be integrated.
 TQM and TPM should de refused to exploit effectively.
 TQM should be implemented so as to realize
organizational development and effective utilization of
good relationship with stakeholder
 Quality has been the essential subject should be
pursued perpetually.
 Any organization ought to implement effective problem
solving activities for kaizen.
 Fundamental requirements and causal model for
effective problem solving could be presented.
 Top management should perform leadership and
commitment for organizational kaizen activities.
38
Appendix 1
Introduction to TQM
39
Customer shows their
interest and begin to think of
purchasing Market
Provision of products and

Competitors
services that meet /Alternative products,
customers’ expectation Customer services
Organization:
activity, Trust Brand
resource
Provision of products and Customer Alternative
services that fulfill organizations;
customer expectations activities, resources
customer purchases and

evaluates
＊Business will not be realized without the customer and their support
＊Market creation and concerted effort for customer acquisition
＊Harsh competition not only domestically but also overseas

Hiroshi KUBOTA
Basic understanding of quality in the company:
Compatibility of reasonable demand and expectation of customers
regarding the activity output (products and services)
Create customer
Pursue “Quality” from Customer value
Customer will be satisfied
Quality of
activity, work, system, Bundle of customer needs Fulfill needs
employee Varied needs (demand, standard,
aspiration level)
Quality of Varied customer needs

providing entity, Depending on changing
process, social context social context
Next process is handed Relativity
down to customer Unnoticed
Unable to display
“Must-be quality”
Attractive quality Principle is to “incorporate quality in the
process”
Hiroshima Institute of Technology
Hiroshi KUBOTA
Go up the spiral by setting
challenging objectives Act Plan
Act Plan Act Check-

Do
Analyze
Check- Plan
Do
Analyze Act Plan
Check-Analyze Check-
Analyze Do Do Act Plan
Act Plan Check-

Do
Analyze
Check-
Do
Analyze
Basic of Quality management: Rotate the
management cycle of PDCA
Hiroshi KUBOTA
Quality Management Target and Person in Charge for
Quality Management
Managing target aspects
＊Quality: Customer value, satisfaction, fulfilling of the needs
＊ Cost: Thorough waste elimination, minimization of opportunity loss,
reduction of time cost, compromising cost, adjusting cost, fixing cost
＊Quantity and delivery: When, where, how much and what is necessary
timing, speed (time is an important element in competition)
＊Safety: Safety of work, product and service
＊Morale and Motivation: Psychological energy, organizational activation,
create challenging environment, respect for successful experiences and individuals
＊Environment, ecology, employee satisfaction and ethics:
Global environmental conservation, resource and energy savings,
economic development and welfare improvement,
Corporate social responsibility (existence in society)
＊Role of the person in charge: leader, decision maker, information center

＊Responsibility of the person in charge: result, execution obligation, accountability
Hiroshi KUBOTA
Expansion and integration of quality and technology
(planning of quality and technology)
Activity system Output Output quality Satisfactory customer needs

requirement requirement requirement (Customer value/satisfaction)
Management by items to be checked Management by control item

(Feed forward) (Feedback)
Activity system
Transaction/ Output Output quality
Input
conversion
Basic concept of quality management

practice method
Hiroshi KUBOTA
Points of management practice method for each “quality”
Deployment of quality and technology (quality plan)
＊Regulate output quality, input, process, management method
＊Deployment is to create and realize the concept: words of customers for
words of technology (quality coherency, quality and technological consistency)
＊ Understanding customer and market, enhancing and utilization of technology
Management
With control items With items to be checked
＊Regulate satisfactory demand of ＊Grasping of major cause by identifying
output the cause related factors and process
＊Judgment standard, normality, abnormality analysis
＊Sensitivity for and countering abnormality ＊Judgment standard for normal and abnormal
process maintenance, technology, ＊Rules for abnormality countermeasure and
capability, system, rule practice
＊Visible management and 5S ＊Good Conditions keeping for process
＊Cause analysis and recurrence prevention maintenance, education & training
Hiroshi KUBOTA
Achievement of corporate objectives
Realization of the organization with vital presence
Achievement of organizational mission, continuous securement of appropriate profit
Favorable relationship with customers, employees, society, business partners, shareholders
Enhancement of satisfaction
Provision of products and services that could generate high customer satisfaction
The Entire picture Customer’s point of view, pursue quality

of TQM
Enhancement of organizational capability
(technical and response capability, vitality)
Systematical activity to effectively operate the company-wide organization

Leadership, vision and strategy of the top management
Management control system (maintain, improve, innovate:

policy management, daily management, managing elements control)
Quality assurance system Elemental management control system
Enrichment of major management foundations (“employees” “information”)

Basic concept and method of TQM (TQM philosophy, TQM method)
Hiroshi KUBOTA
Leadership: Operation
Value
c) visional g) Overall optimization
a) Creation of customer value
leadership h) Process approach
b) Creation of social value
i) Approach based on facts
Resources
e) Participation of employees
f) Cooperation with partners
Establishment of oneself
d) Acknowledge competence
Organizational culture
j) Organizational and individual learning
k) Speed
l) Independence
12 Principles of Quality Management: JISQ9005/9006

Hiroshi KUBOTA
Provision of assured products and services: Competitive superiority in the market,
All the products and services are targeted brand image, continuous profitability,
(software, IT system) mission, presence
In all industries (manufacturing,
construction, information, distribution, Customer satisfaction (consumer, user,
company, government), social satisfaction;
education, transport)
Attractive, exciting, pleasurable, proud,
comfortable, trust-worthy
System and technology of quality assurance Trade condition:

System formulation of License to join
technology, Industrial quality system standard: market competition
examine/evaluation, QS9000s,HACCP
reliability/product safety, Japanese Industrial
analysis, information Standards (JIS)
Loss for all concerned
system, learning International quality system standards:
parties: Accidents, complaints,
ISO9000s
Imperfect defects, Product liability
International environmental
defect problems, compensation
management standards
recall
ISO14000s
Basic concept Hiroshima
of quality
Hiroshi assurance
KUBOTA activity
Institute of Technology 48
Existing basic challenge in quality:
Provision of products and services that the customer would choose
Quality assurance and customer satisfaction
Harsh competition and uncertain environmental change

Disparity among products and services, among companies
Good selling products/service and bad selling products and services

Customer satisfaction and dissatisfaction/complaints from customers
Major incidents still recurring due to inadequacy of quality control:

There always are recalls and complaints:
automobile, home electric appliance, etc.

Hiroshi KUBOTA
Customer and quality assurance
Principles of quality assurance

＊Understanding of customer, enhancing and utilization of organizational strength
＊Do not produce, distribute or receive defects
＊Incorporating quality in the process
＊Quality assurance system, analysis, activity
Satisfaction, value and relativity of customer

＊Fulfilling customers needs:
different person, situation and sensitivity
＊ Appealing products:
appeal by product, people and brand
＊Quality assurance is the basic pre-condition to generate customer satisfaction
＊Business operation and service that adds value to products
＊Win-Win relationship with customers:
happy to buy, happy to sell
Hiroshi KUBOTA
Importance of business operation and services
Quality in business and service activity
＊Customer satisfaction varies even among the same products

＊ There are people who would sell whereas those who would not sell
＊ Moment that the fact is realized, is important: judge the situation and
respond adequately: empowerment (sharing of value and fact,
authority to judge)
＊Satisfaction decisive factor (utilizing check list):
reliability, promptness, eligibility, access, behavior, communication,
degree of reliability, safety, customer understanding, formationality, intimacy
＊Establishment of a manual: things that must not be done,
things which must be minimally done, things to make others happy
＊Organizational business operation and ＊Human resource development:

service activity affection and knowledge
＊Strength in technology, proposal, response ＊Visualizing process
＊Support system, activity ＊Forming information system
＊Provision of information regarding market, ＊Sharing human network and
development, customer Hiroshima Institute of Technology
Hiroshi KUBOTA successful experience 51
Basic process of activity to produce customer satisfaction
Wide gap among organization and individuals
Next process is handed
Identification of customer down to customer
Characteristic, situation, context

Understanding of customer
Contents, meaning, strength, creation

Foresight of customer
Identifying the requirements of customer needs Proposal, practice
Exercising activities to fulfill customer needs Moment that the fact

is realized
Grasping and evaluating customer Understanding, stratification

satisfaction rate (frank opinion)
Prompt conduct of necessary response Confirmation of effect and

break of effect
Hiroshi KUBOTA
Business environment with How to secure continuous profit by
harsh price competition competitive superiority
Cost reduction Development of distinctive and creative new products
with high customer value
A pre-condition is to assure quality Trend toward elimination of information disparity
Structural and material improvements Construction of a system that could continuously

enhance yield, reduce defects, reduce develop differentiable products
stock, enhance productivity, reduce Establish core competence
mechanical failure, minimize temporary stop, Forming strategic alliances
improve processes, equipment, Intellectual property rights such as patents
layout and line formation
Organizational strength
Effects on quality of movable parts (moving point): (technique, response, vitality)
Examine with pessimistic hypothesis
Unintentional defects
Make cost reduction and quality assurance inseparable: tools and systems
Quality Assurance under harsh price competition (CR/QA)

Hiroshi KUBOTA
Change in production structure and material (relation among components)
Quality characteristic Confirm the relation between

quality characteristic and structure
Secure and assure Estimate, evaluate, examine,
Design review
quality quality information
Change of method, production process, condition, equipment
Evaluation of occurrence of defects
Cost down
Effect on quality characteristic

by process FMEA
Secure and assure Process Extraction and improvement of tasks
quality management Education, training
Change purchase place
Material change Change of method, production process, condition, equipment

Effect on quality characteristic Process audit, diagnosis
Secure and Process management
Assurance purchase Spec identification
assure quality and inspection
Identify and confirm the quality characteristic that should be assured
Hiroshi KUBOTA
Uncertain and harsh business environment Increased burden to invest on development
Shortening life cycle of products To securing profit
Shortening development period Vertical launch Stock minimization
Concurrent engineering Effective use of IT
Enhance and utilize organizational capability Information network
CAE, Simulation Digitization of technical data Organizational learning
Individual understanding and Know-how, Know-why,

Solving given themes
general understanding use of implicit knowledge
Quality integration in development Minimizing pilot products Measures toward market change
Minimizing Prompt action

compromise cost Rework reduction Assuring process
toward complaints
Quality Assurance in the era of speedy management (Speed QA)

Hiroshi KUBOTA
Appendix 2
Production System
Related to TQM & TPM
56
Changing Uncertain Management
Environment( Economics,
Technology, Society and so on）
Adaptation；
Creation / Self-reorganization
Organizational
Retention of Behavior
Market /
Customer Great Important of Fundamentals,
Flexible Correspondence to Changes,
Company Challenge to Opportunity ；Kaizen
Group of
Human; Fundamental Requirements for
Activation of Survival / Growth of any Company
Organization 57
Requirements of the Production System
 Under Changing Environment and Unfolding Mega-
competition in the world,
Self-reorganization should be pursued for Adapting
Environmental changes and Ensuring Competitive
Position in the Global Markets through Kaizen Activities;
 Objectives of Kaizen Activities are
Competitive Customer Value Creation/Customer
Satisfaction and Superior Financial Results through
1)Quality Creation and Quality Assurance
2)Target Costing and Lean Operation
3)Shortening Lead Time and Decreasing Inventory
 Kaizen Activities intend to
the Customer in Planned Ordering Straight Production
based on determinate orders from customers through
eliminating any opportunity loss 58
Production Management System
Orders Orders
Resolution & Casting
Raw Materials (Automation system)
Products
Just in
Just in Time Time
Processing by Machine
(cellular system)
Supplier Parts
Market;
Assembling & Testing Dealer
(pull system)
Customer
Lean Operation
Just in Time
Customer Value
(Physical Activities)
and Customer
(Kaizen Activities)
Satisfaction
(Brand DNA build in)
59
Basic Conceptual Model of Production System
Fundamental Technology and Skill for Supporting
Production system
 Flexible Automation System for Resolution & Casting;
Various robots for operation and transformation
Automatic set up
Common processing elements by product design
 Cellular System for machine processing;
Multi-skill development, Automatic set up & part feeder
 Pull production for assembling;
From estimated demands to determinate demands
Line balancing , Automatic set up & part feeder
5S(seisou-clean,seiri-in order,seiton-tidy,seiketu-neat,shituke-discipline)
Visualization, Autonomous Maintenance, Small group activities
Workshops(Dojyo) for Kaizen, maintenance, skill, quality and so on
60
5R(Refine, Reduce, Reuse, Recycle, Retrieve Resources)
Kaizen Changes of Production Activities
Quality, Cost, Delivery(Time/Quantity), *Enhancement of Corresponding

Safety, Pollution, Sales, CS, Trust Ability to Changes
Process/System;Equipments,Tools, *Increasing of Adaptability,

Communication, Function/Structure, Flexibility, Effectiveness and
Relationship, Information/Decision Efficiency of the Organization
Resources;Skill/Technology, Roles,
Belief,Materials,Utility, *Establishment of Differential
Data, Knowledge, Will Core-Competence
Speedy New Product Development Reduction of Production Lead Time
Corresponding Ability to Needs for Processing Ability to Uncertainty

Short-Lived Product Life Cycle on Fluctuations in Demand
Relationship Between Kaizen and Changes of Production 61

Obedience of delivery
Customer
Customers’
Dealer Shortening lead time
Environment
Ordering;
Determinate Information
Competitive
Organization Uncertain Changing Demands
Sales Office and Factory Office

Just in Time
Supplier Resolution & Casting; Automation
Reorganizing
Just in Time relevant
Processing by Machine; Cellular System production
Just in Time system
Assembling & Testing; Pull system
Changing Process parameters through kaizen activities
Reorganizing Production System Related Kaizen Activities62

Sales
Demand Information
Department From Customers
Production
Management Demand Information
Department From Customers
Factory Instruction in
Office
Real Time
Production Demand Information
Lines From Customers
Whether the demand information is determinate or non-determinate?

Whether any coordination loss occurs or does not occurs?
Lead Time Loss on Information Flows 63
Unofficial announcement
Sales Unconfirmed Unconfirmed Unconfirmed

Department Information Information Information
Demands
Coordination by Coordination by
Planning staff Foreman
Unconfirmed
Information loss
Input loss Coordination Output loss
Information with Loss
expectation Input Communication
Transformation Band Method:
Time Modification Phone/Facsimile
Actual Information Flows with Loss Lead time

64
Theoretical Theoretical Theoretical
Material-in-process Work-in-process Product-in-process
Before Core Finished After

Material
Process Process Support Product Process
Process Accompany
Material- Process
Operation Product-
in-process Loss Work-in- in-process
Loss
process Accompany Loss
Loss process
Multi Distribution of Loss
Small Lots through
Integration of Logistics
Theoretical Lead Time and Loss of the Physical Production System

65
Two Fundamental Requirements for
the Production Management System
1. To Meet the Customer Needs for Delivery (Item, Time,
Quantity, Place) including
Merits of Speed for the Customer and the Organization
2. To Minimize Cost and Inventory in the System (From
Supplier to Customer) through
Reduction of Lead Time Loss and Physical Loss
Ultimate Just in Time Production System

Realized Completely both Two Fundamental Requirements
Reduce Uncertainty Conformed Production
Customer-in Planned Ordering Straight Production System
66
Fundamental Requirement for Realizing Ultimate JIT
 Competitive production lead time and friendly relationship with
customer should be realized
 Some exceptions should be treated
 Kaizen Activities should be implemented to shorten production lead time
 Scientific Approach such as TQM, TPM and TPS should used effectively
at Kaizen Activities
 Total optimization should be attained by the system integration of
information system and physical production system
 Straight production system should be realized from start of the
production for new products by effective applications of ability and
results for kaizen
 Reduction of unit requirement should be seeking for all resources and all
lines
 Minimum total cost should be pursued at material areas
 One unit manufacturing and one unit sending should be pursued at
machine processing and assemble area
 The planed production in order with confirmed demand information
should be attained
67
Feasibility Study including Sensitivity Analysis
should be performed on the Planed Production
 Related with Results of Kaizen Activities
 In order to estimate Possibility of Realization of the
Planed Production, and to evaluate
 Effects of the Planed Production;

Estimated Production Lead Time, The Rate of the Planed
Production(The Rate of Exception) , Competitive Position for
Delivery, Inventory, Loss Cost and Opportunity Loss
 Effects of the other Prospective Production system;
For Various Inventory Control Systems
In order to review
 Evaluation on Results of Kaizen Activity
 Decision of the Direction and Priority of Kaizen Activities
68
Variables of the System Model
1) (Constraint Variables)
 Environmental Input Variables; The number of
Customer／Dealer, Confirmed／Unconfirmed Demands
2) (Independent Control Variables)
 Policy Variables; Target Delivery, Inventory System
 Organizational Input Variables; The number of Items and Processes
 Manipulation Variables; Lead Time for Each Process,
Inventory Level Set for Each Item
3) (Provability Variables)
 Noise Variables; Lead Time Delay with Occurrence of Troubles
4) (Objective Variables)
 Output Variables; Lead Time for each order, Probability of
Attaining the Target Variables, Inventory Cost, Production Cost
69
Premises of the System Model
 Material/parts could be supplied Just in Time to each
process
 Any production capacity has been secured
 The arrival time of each demand order is random
variable
 Physical distribution lead time is omitted
Kaizen Activities give parameters Variables
The Production System Model

A queuing model started from demand arrival generation
Evaluation of Output and the System

70
Environmental Uncertainty
In Outside Organization Kaizen Activities for Customer Value
and Customer Satisfaction through
Customer Dealer Quality Creation, CRM and so on
Decided Prospective
Orders Orders Kaizen Activities for High Efficiency
Lines from Key Concepts on
Desired Delivery Date; Slim, Straight and Easy
Setting Target Delivery
Kaizen Activities for JIT Production
MPS(Master Production From Key Concepts on
Schedule); Flexible, Stockless and Real time
PDM/ERP
Inventory; Based on Confirmed demand Optimum Lot Size
PN,SR,WC Minimize Total Cost;Production
MRP(Material Requirement cost, Arranging cost, Inventory cost,
Planning)&CRP(Capacity Sales opportunity loss
Requirement Planning)
Vendor;
Supplier Production Capacity Available
Production Ordering; Manufacturing technologies &
Scheduling with Planned Knowledge Management
Ordering Straight Production
Technological Uncertainty
In inside organization
Just-in-time Production
71
Schematic Presentation on Customer-in-Planned Ordering Straight Production System
Conclusions
In order to adapt speedy to environmental change
self-reorganized dynamically through kaizen activities
to make only products could be sold out and
also to sell out all products
 JIT production system with making less all losses

including lead time loss through kaizen activities
 The planed based on confirmed demand information
 Kaizen for shortening the production lead time might
cause to increase production capacity, to reduce cast
and to enhance adaptive ability to changing demand
 Various production systems should be integrated so as
to optimize totally toward to the customer-in planed
ordering straight production system
72
Appendix 3
Fundamental Management
73
Three Fundamental Methods in Management
 Static Management
①Vertical Management：Daily Management (Operational Control
by rank, Department-wise Management)
Management of system and practice of all activities that must be
properly done on a daily basis to accomplish objectives to
operate effectively in each department
②Horizontal Management：Cross-Functional Management
(Function-wise Management, Objective-wise Management,
Cross-Functional Cooperation)
Management of processes: from the entire organizational
(business division) point of view, that ranges across departments
with functions such as Quality, Cost and Delivery (Management
objectives, in other words, management factors)
 Dynamic Management
③Policy Management (Management of the entire
organization in accordance with the business
environment)
Management which enables to surely solve corporate
management assignments, by tailoring directions as an
entire organization, that are considered difficult to
implement satisfactorily with existing management
system so as to comply with the business environment
and achieve the vision of the corporation
Policy Management
76
Policy Management (Management by Policy
and/or Management through Policy
What is ‘Policy Management’:

Based on the management principles, long-(mid-) term
management plans as well as short-term management policies are
established.
In order to achieve them effectively, activities are practiced in
cooperation with the entire corporate organizations
*Adaptation to business environmental changes, accomplishment
of corporate vision, important management assignments, display
of total capacity and capability
Features of ‘Policy Management’:

Deployment of objectives taking into account feasibility,
deploymentof policies and means to achieve the objectives,
basic adoption of process management upon
implementation, review on a large scale at the year end
Points to influence success (or failure) in Policy Management;
*Determination of a prioritized, logical and clear Corporate
policy
(Policy Determination)
*Full conveyance and understanding in every department and
rank
(Policy Deployment)
*Plan of concrete means to achieve the policy
(Concrete Means)
*Check and follow up activities in processing
(Process Management)
*Deep analysis of causes if not achieved in the year end
(Problem-Solving Ability)
Deployment and Management of policies
In order to manage policies, implement ‘Policy deployment’ and
‘Management of Policy’:
①Policy Deployment: Prepare an ‘Activity Implementation Plan’
to connect ‘Policy’ with ‘concrete action plans’ by deploying to
embody President Policy to General Manager Policy, and to
Manager Policy
②Management of Policy: Manage to achieve the objectives and
goals of Policy (by rotating PDCA cycle)
Policy ＝ Objectives and Goals ＋ Means

Policy implies “Where to go” , ”What to do” and “How to act”
Objectives and goals are ‘the results expected in the future’;
Clarify goal items, evaluation standards and due dates
Means are ‘fundamental indicators of action plans to achieve the
objectives and goals’
Control Items (Management Items)
What are the control items?
*Items identified as objects for management to practice management activities
in a rational manner
Content of Control items
*Control Point: Result-oriented point based on the implemented results
*Check Point: Factor-oriented point based on operation
【Note】 There are many cases where factors are identical with results.
In such case, both points are used without distinction
Control Item Table
*Table which shows control items by position or rank in a company
*Control item table with objectives deployed by stratification must include the
purpose of control, materials used for check ups, the person in charge and the
method of control. (Frequency, control standards, and handling instructions)
Hints to make effective use of control items
①Avoid preparing formal (external) control items
②Hold the will and act to accomplish the objective
③Systemize control for management;
Making use of control items as a tool for management
Steps for Policy Management
(1) Determination of Policy
*Management Philosophy and vision/strategy, mid-(long-) term
plans, Situation analysis of internal and external environment,
review of previous year
(2) Deployment of Policy
*Deployment of objectives and goals/Deployment of means
*Promotion of mutual understandings/Ensuring consistency
between top-down and bottom-up activities
(3) Implementation of Policy
*Plan of feasible activity plan
-Grasp and analysis of current problems to achieve the upper
policy
-Determination of implementation items, control standards,
person in charge
*Practice based on activity plan
(4) Check up for activity status
*Check up using control items daily and monthly,
Diagnosis by top management
*Process-oriented,
Analysis of elements achieved and not achieved
(5) Take action
*Determination of appropriate actions
(Back up for delays, additional distribution of resources,
change of plans)
*Measures to hindrances
(Technical difficulty, environmental change, problem in
operations)
(6) Reflection to the following year
(Review, look back)
*Analysis of cause in not achieving this years’ policy
*Review of system/mechanism on Policy Management
Mechanism of Policy Management
Management Philosophy/Management Principles
Determination of
Analysis of Review of former year
Mid-/long-term management plan
Social Movement
Designation of Corporate Policy
Designation of Departments’ policy Establishment of

to realize Corporate policy Department’
Mid-/long-term Plan
Designation of measures
to realize departments’ policy
Draw up the execution plan
Implementation based on Evaluation of results Prospect and revision

＋＋ of policy/execution plan
the execution plan by control items
Clarification of problems
through year-end review
SWOT Analysis for strategy planning
From the standpoint of organizational capacity and capability
to realize sustainable growth
Threats Opportunities
External ←
Weaknesses Strengths
→ Internal
Negative ← → Positive
Example of deployment in objectives/means for
Policy Management
Objective Principle *Suggestion on assignments and measures
Top Management
Items Means *Clarification of Business Unit in charge
level
Objective Principle *Clarification of Division in charge

Business Unit Report Means
Items *Delve into the theme
level
Principle *Clarification of Dept./Person in

Report Objective
Division level Items Means charge
*Delve into the theme
Principle *Clarification of
Department level Objective
Report Means person in charge
Items
*Delve into the theme
Objective Principle
Section level Report
Items Means
Individual level
Deploying policy using two-way chart of
objectives and means
【Source： Dr. Yoji Akao(1988),
‘Practice of Policy Management’ ,p.10, JSA】
Div. Objectives
Dep. Objectives
Div. Means
Dep. Means
Dep. Objectives
Sec. Objectives
Dep. Means
Sec. Means
to
Sections
Top Management Diagnosis
in Policy Management
What is ‘Top Management Diagnosis’:

*Review of progress in achieving policy and assignments
determined by Policy Management
*Total review of important assignments of management elements
such as PQCDES
*Diagnosis of actual conditions of daily management
in each department
Features of Top Management Diagnosis:

*Diagnosis based on actual case studies carried out
in each department which is stratified by top management
themselves
*More respect paid to the implementation results and processes
than logic and theories
Effect of Top Management Diagnosis:
*Grasp of situations in organization and the first front line:
Observation of actual workshops/ actual actions
and evaluation of real situations
*Motivation and education: Communication among top
management, middle management and the first frontline
workers
Improvement in skills and abilities of the middle management/
staff members
Cultivation of motivation and enthusiasm
Expectation by top management
*Giving directions and priority order:
Exercise of total organizational capacity and capability,
decision-making by fact
*Clarification of problems/assignments:
Grasp of substantial weak points of the organization
Clarification of structure of problems/assignments to be solved
The aim of Policy Management
The Differences between Management by Policies (Policy Management) and
Management by Objectives (Objective Management)
Policy Management Objective Management
Object of Result and the process Result
evaluation
Evaluation angle Mid/long-term respected Short term
Evaluation Index ・Financial & non-financial Index ・Financial Index
・Quantitative & Qualitative ・Quantitative Index
Index
Evaluation period Mid years, year and (+ anytime) Year end
Information flow Assimilation of top down and Top down approach

bottom up approach
Style of By participation By direction
management
Style of effort ・Repetition of Improvement ・Always start from zero
・Room for further Improvement ・One round activity
Effects of Policy Management
■Incidental effects
①All employees are able to hold the same vector to direction that the
company is heading for, with Top Management Policy being deployed to
penetrate to the end worker thoroughly by promoting mutual understanding
from both vertical and horizontal directions
②Quality in business operation of each department and the level of
management will be enhanced by solving important assignments and
management priority of control items
③The roles and positioning of the operation taken charge within the entire
organization will become clear by policy deployment
④Performance of operation becomes deliberately planned to the point of
improvements based on the execution plan
⑤Communication within and between organizations will become better by
promoting mutual understanding when determining the policy and checking
up the implementation status.
■Incidental effects
①All employees are able to hold the same vector to direction that the
company is heading for, with Top Management Policy being deployed to
penetrate to the end worker thoroughly by promoting mutual understanding
from both vertical and horizontal directions
②Quality in business operation of each department and the level of
management will be enhanced by solving important assignments and
management priority of control items
③The roles and positioning of the operation taken charge within the entire
organization will become clear by policy deployment
④Performance of operation becomes deliberately planned to the point of
improvements based on the execution plan
⑤Communication within and between organizations will become better by
promoting mutual understanding when determining the policy and checking
up the implementation status.
Policy Management for Sustainable Growth
 Environmental change is an universal fact:
It is certain that ideal figures and reality will change
 Adaptability to the environment is a survival condition for living
companies
 It is required to adapt to environmental changes by fluctuations
of demand, currency and business, as well as responding to
structural changes of environment with self-organization, and
innovation
 It is required to recognize, determine and solve problems
proactively in environmental change
 Strategy is important for survival competition within the domain
“Know the market, rivals and yourself”
 Determine the figures after achieving sustainable growth; what
kind of excellencies will you hold?
 Define the core competency as elements to realize sustainable
growth
 Utilize the SWOT analysis for sustainable growth: Analyze
rivals and evaluate yourself
 Extract a problem and determine the theme to realize the ideal
figures with core competency
 Implement strategic policy management to realize the ideal
figures
 Establish the organizational culture and maintain the
infrastructure to implement policy management effectively
Process of determining the policy and Seven Strategic Tools(S7)
Collecting Market
information 【Source: Dr. Hiroshi Osada（1996）, Strategic Policy Management in TQM Era, JUSE】
(Attributes of
customers, customer Defining business vision
needs) Microscopic Trend
Collecting Product Information
(product features, Measuring business attractiveness
competitiveness) Environmental Analysis Business Attractiveness
Product benchmarking Grasping potential customers
Product Analysis Market Analysis Determining the

Strength and weakness of product Characteristics, needs of customers, market size product priority
Grasp positioning and Product-Market Analysis Product Portfolio Analysis

competitiveness Order of Product Priority
Positioning information
Determining Product & Market

Target for Strategy Allocating resources by priority
Selecting strategic elements
Strategic Elements Analysis Resource Allocation Analysis
Selected Strategic Element
Determining Policy (=Strategy)
Deployment of Strategic Elements
Deployment of Policy
Outline of Strategic Seven Tools (S7)
(1) Environment Analysis: Grasp the movement of external
surrounding environment as well as structure, characteristics and
attractiveness of the industry:
Macroscopic Analysis: Analysis on industrial structure and
competitiveness
(2) Product Analysis: Clarifying the distinction of management
elements such as quality of product (incl. service), price, etc. by
comparison with competitors’:
Grasp the strategy of competitors by clarifying the distinctions,
comparison with competitors’ management elements with quality
aspects such as fundamental capability, operationality, reliability,
durability, security, environmental design, maintainability, service,
etc. from a cost aspect
(3) Market Analysis: Discovering the superiority of self-products in
the market segment by grasping customers needs and the attributes
of customers who purchase:
Analysis of customers needs based on required quality deployment
and analysis of attributes of customers who purchase
(4) Product-Market Analysis: Grasp the situation of
products corresponding to customer needs by combining
the results of Product Analysis and Market Analysis
Grasp the positioning of your company and competitors
and the situation of the competition by creating a
Product-Market matrix out of product and market
segments, and by mapping the products of your company
and competitors
(5) Product Portfolio Analysis (PPM): Make the order of
product priority by the superiority of your product group
in the market in relation to competitors’:
Prioritize products of your company by reviewing the
balance using a matrix plotting the self-products and the
competitors, using the competitive advantage of a product
as the horizontal axis and the attractiveness of the
industry as the vertical axis.
(6) Strategic Element Analysis: Build the foundation of a policy by
extracting key factors which largely influence a business
strategy:
Narrow down the strategic elements by classifying business
functions such as R&D, production, etc. and management
elements such as quality, cost, quantity, delivery, security,
environmental design, etc., and extracting a strategy in
accordance with business characteristics
(7) Resource Allocation Analysis: Allocate management resources
such as manpower, machines, money and time properly, in order
to achieve strategic objectives:
Assign priority of investment to products according to
expectations of future business using time series PPM. Then,
allocate resources to the function that should be strengthened
deliberately using a matrix of products and functions
【Source: Dr. Hiroshi Osada（1996）, Strategic Policy Management in TQM Era, JUSE】
■What is Cross-Functional Management?
Cross-Functional Management is the management activity that
is practiced in cooperation with all members composing the
organization
across divisions, departments and sections cross functionally
working on each fundamental management factor such as
quality, cost, safety with the goal of common purpose and view
so as to achieve it effectively.
This management system is suitable for members, composing the
organization, to proceed with business operations which hold a
close relationship to each other
Cross Functional Management
99
■Three major functions of Cross Functional Management
① Function that makes plan and adjustment from the corporate
or long-term point of view, which tends to be lost from sight
by individual departments
② Function that promotes Quality assurance, environment
management, employee satisfaction, etc. which are liable to
become of less interest to individual departments, although
they are determined to be objectives by the company
③ Function that deals with special operations in blocks which
are required for each department such as management of
procurement, information, technology, overseas business and
education
Example of Cross-Functional Management
◎：Closely related ○：Related △：Less related
Dept. Product Product Product Purchas Manufac

Sales
Functions Planning Design Prep. -ing -turing
Quality ◎ ◎ ◎ ◎ ◎ ◎
Cross-Functional
Cost ◎ ◎ ◎ ◎ ○ ○
Management
Technology ○ ◎ ○ ○ △ ○
Production △ ○ ◎ ○ ◎ ◎
Sales ◎ ○ △ △ ○ ◎
HR/Admin. ○ ○ ○ ○ ◎ ○
Department-Wise Management
Challenges for Quality Assurance in Business Operation
Business operation that makes customers happy: add value to the products
(Win-Win relationship).
Remove problems that the customer has trouble with, given up or hasn’t noticed.
Reliable (timely provision of information and assistance),
establishing human network and favorable relationships.
Not only securing orders but also gaining understanding and insight into
customer’s status and needs:
Grasp and provide the useful information in a timely manner for new product
development that makes customers happy.
Identify customer demand and specific condition:
eliminate singular variation and add design specs and drawings

Hiroshi KUBOTA
Selling of products with which both customer and company can enjoy added value:
Selling of products in which the company’s strength and resource can be utilized
Minimization of special specs: development and sales of products
with stable processes as well as firmly assured quality
Demand for the product specs that can promise sales growth:
In order to secure all orders, response to customer demands needs to be reviewed
Understand the background and the meaning of each customer’s demand,
adjustment and negotiation for the ideal specs
Avoid receiving orders which require unacceptable delivery dates:

Tight delivery schedules cause delay in delivery, insufficient quality assurance,
production plan changes, high cost, negative effects for other product:
eventually put customers in a difficult situation

Hiroshi KUBOTA
Challenges for Quality Assurance in Development and Design
Pitfalls of engineer’s goodwill and effort (too late in asking for support)
Engineers tend to keep problems to themselves (unable to reach solution despite
their utmost effort)
Grasp progress and provide instruction to avoid helpless situations
Clarify the intent and coherency among concepts, specs and design
Design must match the needs of the person who solves the problem and be
coherent to purpose, intent and plan.
Visualization of the concept to deepen one’s thinking, implement adequate
adjustment, examination and instruction
Fostering and vitalizing engineers

Hand down basic knowledge, common sense and accumulated skills.
Acknowledge customer demand and use conditions.
Transfer and utilize the new technology. Enhance individual technical skills.
By evaluating skills and engineers, with the use of skill mapping and HR
mapping, enhance organizational technical capability.
Hiroshi KUBOTA
Effective utilization of IT and technological information
Make use of CAD/CAE as a black box (not knowing the applicable condition,
not realizing input errors, failure to discuss matters which should be considered)
Learn what’s to be kept in mind when using, relation between hypothesis and
examination, virtual and reality.
Effective accumulation and utilization of quality/technical data.
In order to realize effective CALS/Concurrent Engineering.
Enhance evaluation technology:
Examine and evaluate possible defects in Function-Structure-Use condition.
Theoretical study, experiential study
(accumulate, utilize and analyze information and experience)
Test the market for new products at an early stage in order to reduce the number
of pilot products.
Extract and advance development of the bottleneck technology:
Delays in developing period, not achieving cost goal, attribute to quality related
(technical) problems
Make basic adjustments by applying creative design review and consideration at
the conceptional /schematic drawing phase.
Regard key technology as an advanced technology development theme.
Hiroshi KUBOTA
Create an environment that enables designers to focus on technical uncertainty:
Effective thinking comes from securing continuity of thinking. Define policy and
conditions.
Be free from miscellaneous affairs, sharing value and fact, authorization,
adjust at the moment that the fact is realized
Make adjustment/integration in advance: avoid adjustment from occurring on the

frontline afterwards: adjust/integrate related internal and external parties at the
conceptual and schematic drawing phase.
Develop coherency among the entire organization and each unit as well as among
mechanics, electronics and software.
Advance adjustment with the next processes such as simple design for easy
production and design that allow effective use of the equipment.
Make a virtual catalog and user instructions when the product is in the conceptual
phase
Identify the sales point/ customer value/ using condition/ operation manual in order
to make effective design review and to avoid a return to the design stage

Hiroshi KUBOTA
Attractive concept
Mission Excellent functions Technical &

Employee map
Technical challenge Wise structure
Information system:
Total concept
Utilization of IT
Unit concept Mechanical concept
Unit concept Electrical concept
Unit concept Soft concept
Conception chart
Hiroshi KUBOTA
Spirit of researchers and engineers who engage in R&D
Enthusiastically talk about dreams:
Product is a piece of work. Process/ Technique is an asset
Self innovation: every individuals seeks the ideal
Become creative: Spirit of engagement
In order for each engineers to enhance their level
Innovate work process, way of thinking, action pattern
Vitality in each engineers
Be proud of the technology each engineers potentially possesses
to develop new product
In order to enhance the level of outcome
Understand the market and customer: Seeing and thinking are believing
Share the scenario, courage to show and see the scenario, gather knowledge
Offer information, interaction/joint research and development with external institutions
Examples of action guidelines in R&D sector

Hiroshi KUBOTA
Basic mission and TQM activity in R&D sector
Structural change, harsh competition Securing continuous profit
Continuous superiority in competition Well-established company with presence:

Differentiated products and services Strong, kind and enjoyable company
Development of new products, services,
Understanding of market and customer technologies
Favorable relationship with stakeholders Strategic alliance with external institution
Differentiate development activity process Strengthening of organizational capability
Concurrent (shortening of development period), application of

the latest technology for minimization of compromising cost
Effective cooperation with related sectors

Shift the focus of the activity to the upper stream
Taking parallel action and integration in advance Effective use of IT
Hiroshi KUBOTA
Challenges of quality assurance in procurement, processing,
assembling, maintenance service
Identifying and visualizing points of quality assurance:
In order to assure the required action to be taken by individual workers in each
process
Certifying one’s point about quality assurance, process of quality assurance and line
Visualized quality assurance activity
Improvement of skills and multi-functionalized worker:
As the required skill changes, deal with the change by introducing multi-skilled
workers
Define, train and instruct about necessary skills to address the tendency of declining
Frontline skills in Japanese companies.
Measures to tackle human error:
Mental functions such as: Capability, training, motivation, physical strength,
health, attentiveness, judgment
Consider human engineering, work management, environmental management
Basic principles, basic education, fool-proof measures, adequate allocation,
prediction/prevention, improvement
Hiroshi KUBOTA
Strengthening of measures against defects:
Adequately acknowledge abnormality, take prompt action.
Reinforce capability of setting up steps and follow-up activity.
Promptly take action on newly found defects by practicing early morning activity:
office organizational and team activity
Review and reconstruct from the viewpoint of risk management
Effective use of external management resources:

Worldwide optimal procurement is also a realistic task.
Procurement through the internet.
Quality assurance is the pre-condition for addressing such tasks
Quality system certification does not necessarily assure quality: organizational
capability is inevitable.
Establish a cooperative system which could generate a synergy effect as well as
trust.
Making results in quality assurance, improvement and innovation is important.

Hiroshi KUBOTA
Response capability toward the customers at the moment of fact:
Key elements for customer satisfaction are products and services as well as the
employees which directly encounter the customer.
The fact is what is happening in the market or Gemba:
Managers don’t have an accurate understanding.
Establish a corporate culture in which people working on the forefront attach
importance to the moment of fact.
Secure customer’s trust by providing skillful services and sincere responses.
In cases where trouble to the customer occurs, turn the potential disaster to one’s
advantage
Develop systems and skills that enable staff to take flexible and prompt action.
Customer service and information feedback:
Support and maintain the operation are targets to be differentiated.
Avoid warning labels or defects.
Make useful manuals, simple to revise when necessary: computerization is
inevitable.
Shift corrective maintenance to planned maintenance or to monitored maintenance.
Establish an organizational structure and system that constantly enable us to
grasp the market status.
Hiroshi KUBOTA
Required specs
supplier delivery
product
Do not know how the product Do not know the weakness
will be used by customer of the product
Imagine how the product will be Thoroughly locate what the

used by customer weakness is
If there is an opportunity to discuss the weakness of

the product and how the product will be used by the
customer, enormous waste could be eliminated
Good Discussion Good

Design Review
Importance of sharing weaknesses

Hiroshi KUBOTA
What change did you make?
What concerned you by making the change?
Other concerns?
In what circumstances do the concerns actually appear?
Other causes?
How does it effect customers?

Other effects?
What action did you take to avoid your concern from
actually happening?
Other actions?
Process of DRBFM (Design Review Based on Failure Mode)

Hiroshi KUBOTA
Creative FMEA (DRBFM)
component
Focus on the change

Good Design
Good Discussion
Concern regarding the change (failure mode)
Cause of concern
Degree of effect and importance
Design Review
Reflect on the design Reflect on the evaluation
Confirm implementation items
Good Design Review
Structure and implementation steps of DRBFM

Hiroshi KUBOTA
After observing, how is the symptom
did you notice different than before?
What problem did you foresee from that symptom?
Other symptoms?
In what situation does that symptom
actually appear as a problem?
Other causes?
How does it effect customers?
Other effects?
What action did you take to avoid the symptom
from actually occurring as a problem?
Other action to be taken?
Process of DRBTR(Design Review based on Test Result)

Hiroshi KUBOTA
Quality Management for Manufacturing Processes and the
Philosophy of Poka Yoke (Fool-proof)
【Source：Nagoya QS Research Group(2001), “Management and improvement for workshops, Poka Yoke-[Revised]”, JSA】
①Remove the cause itself - Diminish the cause of careless mistakes:

Share the same parts (prevents wrong assembly), Change the shape of the parts (prevents
wrong assembly), Interlock with limit switch (prevents process omission), Change forms,
colors and size, Clear display of parts/materials (Installation of component box) (prevents
incorrect assembly)
②Remove effect of the cause - Produce no inferior products even when you are about to
make careless mistakes:
Positioning device/Guidance board (prevents wrong processing), Installation
devices/prevention pins (prevents wrong processing, mixture of foreign items), Limit
switches/Phototubes (prevent wrong processing, installation, and failure)
③Measurement and processing – Prevents outflow of inferior products:
Chute (prevents mixture of foreign items), Limit switches/Detection Rods (prevents wrong
processing)
④Diagnosis and adjustment – prevention of careless mistakes:
Management of workshop/operational conditions, education & training. Report based on
Heinlich’s law Hiroshi KUBOTA
Mechanism of Poka Yoke and examples
【Source：Nagoya QS Research Group(2001), “Management and improvement for workshops, Poka Yoke-[Revised]”, JSA】
Method Example of Mechanism

*By shape of the components *By color or bar code
Distinction
*By place to store materials and components
*By micro switches *By limit switches
Alarm
*By counter
Locking *By pins or stoppers *By shape of the tools
Linking *By interlock switches
Sorting *By shape of the chute

Hiroshi KUBOTA
“Let’s re-examine the power of workshops”
【Source: Hiroshi Okuda（Chairman, Japan Business Federation）, Monthly Economy Trend ,January 2004 Issue】
 Cause of Recent Accidents and problems:

Violation of rules at workshops are considered the main cause from
simple mistakes to cutting corners due to excess consciousness towards
profit and business results
 Background:
Not an issue of laxity of rules or the mood
Structural problem to cause the deterioration of workshops
Decrease in the number of experts and highly skilled workers, Pressure to
workers derived from excess result-orientation, Tendency to disregard
and criticize lifetime employment and maintenance of employment
 The endeavor of each workshop to support the foundation of the national
economy
 The power of workshops:
Cultivated with respect to individuals and long-term vision
Managed in a Japanese way

Hiroshi KUBOTA
Appendix 4
Power of Workshops &
Daily Work Management
120
The Power of Workshops
 A workshop is the place to exercise activities to create values in relation
to products and customers by the joint work of frontline workers
 What are required to power workshops?
1) Never fail to do what you must do
*Clearly define ‘how’, ‘what’ and ‘why’, and practice thoroughly;
Correspond to the situation
*Notice with common recognition; Enthusiasm with skills
*Transform what to do in a changing environment;
Essential to review and visualize
2) Make continuous improvement and education
*Along with corresponding to environmental change, contribute to
enhance the value of social presence by customer creation/satisfaction as
well as competitive advantage/business result excluding waste

Hiroshi KUBOTA
Consciousness of ‘the involved’
in problem-solving
‘The power of workshops’

Autonomous ability to solve problems
‘Organizational ability’ ‘Creation of competitive advantage’

by total participation with high motivation
The 3 conditions for the power of workshops

Hiroshi KUBOTA
Daily Management
What is ‘Daily Management’?

*Routine activities practiced so as to perform
the business operations efficiently;
Maintenance and management of business operations
must be regarded as extremely important
＊Clarify purpose of operations, roles and responsibilities

of each department
＊authorization transfer
＊Adjust overlapping operations, operation gaps
＊Define business outcomes and abnormalities
＊Grasp the problems and make improvements
＊Found the base of Policy Management
＊Manage Changing Points; Change Management
How you proceed with ‘Daily Management’:
①Identify the operations of each department and put them
in order
②Define the purpose of each operation and
set up control items and standards
③Standardize operational procedures and
provide education and training as required
④Prepare materials for management and
perform operations based on standards
⑤Record the results of operations and monitor the results
⑥Make prompt running repairs when abnormalities are observed
⑦Pursuing the root cause of preventive measures with Five Gen
Principles, and revise control items, standards as well as
operational standards accordingly as abnormalities are found
⑧Summarize and report to managers at given periods,
and discuss to make planned improvements as required:
such as too many adjusting operations?
Principles of Policy Management
and Daily Management
Management circles of Policy Management and Daily Management
Management cycle of SDCA and PDCA
Policy Management
Management Policy→Improvement activities as

important implementation items
P D
Management of C A
important problems Standardization
by priority
Daily Management
A S
Chronic Problems C D
(Improvement Activity)
Maintenance of Standardization for business operations by rank

Daily Management of Manufacturing/Production Dept.
for Managers and supervisors
①Quality Control: High / No defective products
②Cost Control: Low / No waste
③Process Control: Observation of delivery / Less inventory
④Safety･Environment Control: Safe and easy･Environmentally
friendly / Less energy consumption
⑤Plant･Equipment Control: Effective and Efficient
⑥Operation Control: Properly designed, prepared and maintained
⑦Material Control: Properly planned, stored and utilized
⑧Labor Control: Develop abilities, take root, raise motivation

⑨Information Control: On-the-spot management, Appropriate supply
of external information
Solid Operation Control
a. Upgraded hard ware (Automation, fool-proof)
b. Upgraded soft ware (Operational Standardization, management by
viewing)
c. Upgraded human wares (Improvement of skills, enthusiastic)
Hiroshi KUBOTA
What are QC Circles?
【Source：QC Circle Headquarters of Japan, ‘Fundamentals of QC circles’, JUSE(1996)】
A QC Circle is a small group consisting of

first-line employees who
continuously control and improve the quality of their work,
products and services
These small groups:

*Operate autonomously
*Utilize quality management concepts and QC methods
*The member’s creativity, and
*Promote self- and mutual-development

Hiroshi KUBOTA
QC Circle activities aim to:
*develop members’ capabilities and achieve self-actualization,
*make the workplace more pleasant, vital and satisfying,
*improve customer satisfaction, and contribute to society
Executives and managers ensure that QC Circle activities contribute to

improve the corporate constitution by:
*regarding QC Circle activities as an important part of employee
development and workplace vitalization
*taking initiative in practicing company-wide activities such as TQM,
*providing support and guidance for total participation while respecting
the individuality
Basic principles of QC Circle Activities

*Fully call forth human capabilities and eventually draw out infinite
possibilities
*Respect humanity and build a pleasant, vital and satisfying workplace
*Contribute to the improvement and development of the corporation
Hiroshi KUBOTA
Nature of QC Circle activities
 Improvement of individual skills and abilities:
Through thinking in a QC way and learning QC methods, each
member can acquire a logical way of thinking and viewing
matters as well as scientific and problem-solving methods
 Creation of a pleasant and vital workplace:
Through discussions among members with individual
knowledge and experience in business operations, members
can develop teamwork and build up mutual trust
 Improve customer satisfaction, contribute to society and self-
actualization:
Through solving problems in the workplace, members can
contribute to the organization and to society

Hiroshi KUBOTA
Status of small group activities and future assignments
QCC activities in a harsh environment First-line workplace
Chronic decrease in number Deterioration in the power of the workplace:

Lack of teamwork, decline in the level
Stagnation of branch/area activity
of techniques/skills, loss of vitalization
Decrease in promotion
Promotion of PM activities Decline in efficiency/competitiveness
by other companies
Status of small group activities Sign of change in small group activities

Tough Management
assignment Lose interest
e-QCC ; unified with business operation
Involvement of top management/managers
Promoters become exhausted Sluggish Education Activities of broader sections/new field
Active circles at companies with good business results Unique activities presented at convention
Transformation of social context in Small group activities

*Structural reform *Diversification of learning opportunities *Change in labor conditions
and consciousness *Less leeway in the organization *Change of trust for the organization
Hiroshi KUBOTA
The role of managers regarding theme-setting to vitalize
QCC activities
Conscious of problems/ Condemn concealment of problems,
improvements Encourage problem-raising; Visualization
Difficult and changing environment Pursue ideal situation

Anticipation in the first-line worker; Observe, predict and confirm the status
Strengthening the power of workplace
Problems expected to be worked on Beneficial problems to be autonomously worked on
Sharing and providing information on problems Suggestion/Guidance for the theme
Advice/adjustment in selecting a leader

*Theme-setting;
result to be realized Advice/adjustment in forming a circle
*Composition of members
*Schedule of the activity plan Advice/adjustment in approach to the theme
*Decision for burden sharing
Promise to support and trust

Hiroshi KUBOTA
The role of managers to pursue cause, planning and
implementation measures
Pursuit of ideal situation Recognition of difference (problem) Observation of the status
Situation/
Logical and ideal Related theory/experience
phenomenon
Advice/guidance based on knowledge/experience Support system by experts
Formulate a hypothesis on cause and measures

Reason for a hypothesis Investigation/experiment to confirm hypothesis
Pursuit of measures based on the confirmed hypothesis
Responsibility of managers on results and recourses Selection of the best measure

and its implementation
Support and guidance as duties Confirmation of the effect

and horizontal deployment
Hiroshi KUBOTA
Fundamentals of QC Circle activation
Activities beneficial/useful for members who perform them
Activities evaluated Contribution to the Managers’ concern

organization and involvement
Activities which have fulfillment Respect for individuality
Activities that develop and utilize skills Activities that recognize each member
Activities that possess as amusement factor to keep going
Opportunities for presentation Competition

Sharing values and facts with audience and recognition
Self-discretion A number of choices for activities Teamwork
Significance on result and process Allowance of failures Challenge the uncertain
Creation of these situations, atmosphere and culture depend on what manager say and do
Hiroshi KUBOTA
Restructuring small group activities
Requirement for effective QC Circle activities Activation of QC Circle activities
*Sharing the recognition of contribution

*Vitality: Self-claim and Self-realization
: autonomous activities
*Activities that make use of individuality
*Good theme: Contribution and induction
*Sense of tension and accomplishment
*Trust among members: Group effect
*To become a ‘required’ person
*Good supporting environment: managers’ concern
*Creating situation for activation
*Good learning environment: JIT Education
*Destruction with creativity
*Self-motivated activities: Expect gains
*Review of incentives
*Empowerment: Self-discretion
Vitalization of various team activities

(QC Circle activities are amalgamated with other team activities)
*Team activities: Cross-functional problem-solving, action speed, selected members
*Project activities: Important management assignment, revolution, Concept creation, realization
and imagination
*Six sigma activities: Management objectives, improvement/innovative activities, experts
*Creative team activities irrelevant to business operation: Paradigm transformation, allowance for
failures, experimental
Hiroshi KUBOTA
Anticipation for
the management/managers/promoters
Regard maintenance and improvement of the power of workshop as

managers’ responsibility
Visualize the situation of managers’ support
Evaluate the contribution to realization of QC Circle activities by managers
Trust the heart and wisdom of first-line workers
Show interest and expectation in word and action
Share information on management environment and labor conditions
Guide composition of QC Circles flexibly applied to situation
Advise and support appropriately as a coach: Be a reliable coach
Promote or practice improvement activities by yourselves:
there must be an increase in the number of cases that managers practice
small group activities/improvement activities
Present a meaningful theme to adhere to business operations in small group
activities

Hiroshi KUBOTA
Calling forth a group effect;
examples of precepts for action
Let’s respect individuality, recognize each other, and build a

reliable relationship
Let’s be proud of our workplace and colleagues
Let’s strengthen ties and share both good and bad experiences
Let’s consider contribution as a pleasure
Let’s share values and facts
Let’s promote visualization: Let’s take courage to see and show
Let’s search for goodness out of not escaping from reality
Let’s broaden our circles
Let’s make creative suggestions
Let’s not forget the basics, look straight at the facts and act faithfully
Let’s make much of the difference between ‘knowing’ and ‘doing’
Let’s make “no choice” dead language

Hiroshi KUBOTA
To develop human resources and vitalize the organization
 Principles (Learning from the proverb):
“A company consists of people”, “The core of Quality management is the
Management of people quality”, “Quality Management begins with education
and ends with education”, “Behavior is a function of ability of the heart’s
condition”
 Effective use of small group activities such as QC Circle activities and project
team activities:
Successful experience of different groups, development of ability in collaboration,
formation of human networks and mind networks of members, implementation
of effective project management
 Organization culture and system to make the most of each individual (Build a
system to develop and utilize the treasure of human resources):
Employ on the regular payroll, Job rotation by application, Satisfying results and
rewards, Selection of motivated team members, Organizational culture to
challenge uncertainty and learn from failure
 Thoroughly follow the basic steps for human resource development and
customization by target:
Deployment to foreigners, part timers, and contracted workers, Combine human
resource development and incentive system

Hiroshi KUBOTA
 Structured effort to develop organizational learning:
Organizational learning and knowledge management,
establishment/utilization of support information system, e-learning,
inherit of skills and techniques, thorough visualization, promotion of
education
 Evaluation, reinforcement and utilization of core competence:
Management of Core competence to enhance competitiveness and
social existence, Human Resource mapping, Evaluation of contribution
 Opportunity Provision for learning through experience:
Kaizen training, Autonomous upkeep training, Customer handling
training, Workshop power improvement training
 Exchange with external community:
Interaction among others in the industry, academic and the
government. Skill Olympics, Effective use of external diagnosis or
examination, Participation in events such as QC Circle conventions
and symposia, Company Exchange and/or visits
 Opportunities for presentation and recognition:
Convention/exhibition, skill/technique white papers, pursuit for
recognition
 Redefine the roles of top management and managers
Hiroshi KUBOTA
Practicing QCC activities
• Keep track of the nature of QCC activities (small group

activities)
• Define the aim of QCC activities and the role of QCC
activities in management by making clear what is
expected to be exercised within the organization
• Understand the characteristics/environment of the
workshops
• Customize the form of activities grounded on 1. the
nature of QCC activities, 2. the aim/roles of activities in
the organization, and 3. the characteristics/environment
of the workplace

Hiroshi KUBOTA
Appendix
Concepts and Methodology for Problem Solving
140
Reality (past, present, future)
Observation/ Setting/
Fact Ideal
Prediction Pursuit
Scientific approach Gap Sound demand
Improvement
Innovation Specifying the gap Improvement and
innovative activity is
Problem recognition and motivated by problem
formulation recognition
Conceptual diagram of problem(separation between an
ideal and reality)
Sound demand and scientific approach open possibilities for improvement and
innovation.
141
Harsh and uncertain
Change in ideal image
Environmental change
Comparison
Structural change in
corporate environment Change in reality and fact
Problem recognition
問題の認識
Proactive recognition
Improvement/innovation
Function
改善・変革of self-reform:
Corporate structural innovation will for innovation, leave
no choice but to innovate
Environmental change and problem

recognition/innovation
142
No difference from others, easily caught up, other choices available,
customers unable to evaluate, dispensable
Tough competition Effect increase by minor gap
Differentiation, competitive superiority Continuous realization of the minor gap
Competitive superiority in responsiveness, Quality assurance, moment of truth,

speed, flexibility, warmth Corporate and product image
Activate organization Enhance technological ability
Vitalize problem solving activity
Networking and favorable relationship among IT, Information system and stakeholders
143
Problem awareness,
Environmental changes enthusiasm for improvement Problems to be detected
Confirmation and setting of ideal image Observation and prediction of the reality
Grasp problem ( understanding of target business process and gap)
Numerous tasks and problems: different influence,

Priority oriented
loss of opportunity, desire for achievement, possibility for solution
Theme setting and shared perception (identification of the aim and target)
Clarifying rule and meaning of what is to be achieved
What is the target?

Set challenging goal, make issue of endogenous problem; For what reason?
Tackle as one’s own problem
What is to be done?
Benchmarking
The basic procedure of theme
setting: the most important step
144
Plan: determine the benchmarking target Action process
Search: identify comparative company Not limit within one industry
Observe: observe process performance, gap clarification
Analyze: cause of the gap in performance Pursuit of

adaptive possibility
Check, Adapt: select best practice, adjust according to company style
Repetition of breaking
Action,Improve: fortify and improve the process
the existing circumstance
and receiving
Basic benchmarking process top education
Learn from the best, continuous improvement,

make yourself the best
145
Approach to the problem solving
 Application of scientific approach and methodology:
Observe and connect the world of mentality and reality with reason:
Provide understandable explanation and present related facts
 Variety of scientific approaches and methods: Problem-solving, Task-
achieving, Action-taking, KT method, Soft methodology, Breakthrough
mind, QC7 tools, New 7 tools for TQC, Statistical method, Reliability
engineering, IE method, Why-why analysis, PM analysis
Anything could be applied as long as the approach or the method is an
adequate
liberalization of the method to apply: religious debate over methodology
and method is unproductive
The top priority is to be well informed about the reality of the target
 Integration and application of TQM, TPM and TPS
(management technologies that Japan takes pride in), proactively
implement useful items
Establish TPM and TPS under the umbrella of TQM
 The point is to achieve, not the complexity or detail of the applied method
146
Analysis plan Purpose of analysis Purpose of the action (intent of purpose)
What do you What do you do What is the meaning?
want to know? with the knowledge?
action
Study, experiment, Scientific approach
application
analyize
Scientific statement
Examine the actual world (facts) (ability to explain)
Data
Satisfying Scientific method (Induction,
Observed facts communication Deduction, Interpretation)
Observation Reasoning
World of mental (thoughts)
hypothesis
Basic concept of the scientific approach for improvement and innovation
147
QC Story: Task-achieving Theme-setting QC Story: Problem-solving
Select QC story
Set a target Grasp the present state, set a target
Plan a policy Analyze the cause
Pursuit of successful scenario Plan countermeasures
Implement a successful scenario Implement the countermeasure
Confirm the effect
Firm establishment of standardization and Control
Review and consider future task
Comparison of Procedures between Task-achieving and Problem-solving

[Source: ‘Task-achieving type of QC Story’, P8, Dr. Noriaki Kano, Mitsuru Nitta(1999), JUSE Press]
148
Usual task New task
Gap appears between the current level New objective appears

and the set objective
Find solution while taking

Find solution without
the current work process
considering the current
into consideration
Problem-solving
Task-achieving
work process
Find where the problem stems Find measure and method
from within the work process
Partially change the Create new work process

current work process
The Difference between Problem-solving and Task-achieving
149
Cause-and-effect diagram:
Result (quality characteristic) stems from a cause(major cause)
Pursuit to incorporate quality into the process
Pareto diagram:
There are few important things. Resources and time are limited.
It is necessary to be priority-oriented. Pareto diagram could apply to both priority
orientation in result and cause
Histogram:
There are variables in products and services. It is important to learn from the
variability. 5M: material, machine, manpower, method, measurement vary.
There are identifiable causes and chance causes for the variability. Central
tendency, range and characteristic of the variability and abnormality could be
identified.
Check sheet:
Use designated format and make approach based on the fact.
Effective means to observe and record the actual circumstance objectively.
Designed for both checking and recording purposes.
150
Stratification:
What is fundamentally important when taking measures toward attribution causes
is to “acknowledge the difference”.
Make comparison from a different angle by categorizing attribute in order to
“acknowledge the difference”
Handle the matter differently when target objective varies.
The point is the interaction of one method to another.
Scatter diagram:
Learning “linkage” is effective to handle quantitative causes.
It is likely to be able to take reasonable measures by learning the linkage between
quality characteristics and causes, among quality characteristics, among causes.
Graph:
Utilizes the excellent recognition skill of human.
Enables us to find out abnormality, tendency and the relationship between the whole-
part relationship.
151
Basics and Procedure of Root Cause Analysis
Pursuit to find the reason by setting up hypothesis and examining.
Observe the details from many angles.
5-Gen principle: Gemba, Genbutsu, Genjitsu, Genri, Gensoku.
＊Identify the purpose

Find out what do you want to know, what do you want to do and what
meaning is attached.
＊Closely observe the workshop
(acknowledge the situation, phenomenon, and process)
＊Sort out the hypothesis of the relationship between cause and result.
(confirm the theory and experience related to the generating mechanism)
＊Determine characteristic value (make purpose and target coherent)
＊Collect data (gather high quality data and identify what is available and
what needs to be newly-gathered)
＊Analyze (use QC method)
＊Draw a conclusion after examining (understanding, explanation)
152
The Key Point of Root Cause Analysis
Recognize the difference and provide adequate response
Effective measure differs when handling different targets.
Start from acknowledging the difference when finding the attribute causes.
Recognize the relationship and provide adequate responses

Learn the linkage for finding the quantitative cause, however note below as well.
① Correlation is not equal to consequence.
② Consider the possibility of dummy correlation.
③ Stratification is necessary as well.
④ Focus on outlier.
Provide adequate response by identifying defect categoris
① Sudden defect ②Sporadic defect ③ Chronic defect
153
Past Present Future
Cause-oriented Objective-oriented
Occurred problem (deviation, non-attained

target), Problem that has happened
Search problem (improve, fortify)
Problem to be rectified
Set problem (development, avoidance)
Problem is to consider what to be done for the future
Types of problems
Application field of task-achieving procedure

Setting Searching
Handle new business operations Creation of appealing quality

Predict to attempt the task in the near future Breakthrough the current work situation
154
Theme Evaluation Evaluation
Objective List of possible List of

Ideal image aims measures
Items of means
Aim 1
Characteristic
Information Work procedure

Manpower Budget
Equipment
Successful Scenario
Aim 2
Gap Current state

Aim 3
Items of means
Aim 4
Characteristic
Information Work procedure
Manpower Equipment Budget Aim 5
Conceptual diagram of process from setting the ideal image to setting the aims
155
Identification of the aim (target point)
Set characteristic (aim of the theme)
Set the ideal image required means to achieve the characteristic,
precondition, environmental criteria
Grasp the current status Same item with the ideal image determined
Grasp the ideal as well as the current status Consider overall coherency, left out
items, aim to select sheet
Search for the gap Gap between characteristics and means
Draft the possible aims Aiming point in items of means for characteristic
achievement: Benchmarking
Determine what to aim Evaluation by removing the gap of characteristics
Target setting
What (target item), How much (target value), By when (required period to accomplish)
156
Planning of measures
Focus on the aim, search for the possibility
List the measures (ideas) of achieving the objective based on the
engineering technology
Narrow down the measures
Evaluate by the expected effect only
Seek for the complete picture of the successful scenario (plan)

Necessary items to implement the measures,
Examine the scenario implementation procedures, limiting preconditions
Forecast the expected effect Forecast the expected effect, compare with the
objective value
Predict the obstruct, Obstruct, negative effect, side-effect upon
examine the preventive measures implementation
Narrow down the scenario Comprehensively evaluate the gains and losses.
Choose the overall successful scenario
Implementation of the successful scenario
Make action plan Schedule and role of the successful scenario
How to respond when encountering an unexpected
Implement the action plan
situation
157
Requirements for New QC Tools
for Creative Thinking
• Restoring Verbal Expression Data
• Inducing Brilliant ideas and Exchanging lively
Conceptual different View
• Enriching the Quality of Plans
• Escaping/Making Free from Omissions / Errors
• Promoting Total Participation and Collaboration
• Making full agreement for everybody involved
• Calling for vivid/unsophisticated description
• Visualizing Interactions of Components and
Wholeness of the system
158
Affinity Diagram (KJ Method)
• A method to identify what the problem is by
integrated data collected from chaotic
circumstance applying mutual affinity. It is
effective when compiling a variety of opinions,
ideas and experiences from different individuals.
159
Main Uses of KJ method
• Setting upon QM policy and Strategic Plan as New
company/plant
• Setting upon QM policy and Strategic Plan on new
grand project, new product and new technology
• Investigating Market Research for QA in order to
entry of new unexperienced market
• Exchanging and Prevailing actively different view /
opinion/ facts, and Reaching common consensus on
cross functional problems
• Activating activities of Project Team, QC circle, Tool
meeting and so on
160
Points of good drawing and effective use
• Collecting data through Brainstorming; dividing
clearly between facts and opinions , describing
concrete not but abstract, warmly welcoming
different opinions
• Writing briefly to cards; per independent minimum
sentence
• Gathering a set of language data cards by affinity;
sentiments not logically
• Making nameplate for a set of language data cards
• Drawing the diagram through organizing group for
sets of the cards under several stages , and
commenting intelligibly the whole structure
161
Relation Diagram
• It is useful when finding adequate solution while
identifying cause and effect among problem and
phenomenon. The principle is whether to remove the
problem from where it stems from or it to have no
effect.
162
Main Uses of Relation Diagram
• Deployment and Decision of QA policy
• Drafting of TQM Promotion Master plan
• Countermeasures to Customer Claim/Complaint
• Quality Kaizen in Manufacturing Process, especially
to Latent Defects
• QC Promotion for Buying and Outsourcing products
• Countermeasures to Troubles on Delivery and Process
Control
• Effective Promotion of Small Group Activities
• Kaizen of Business Operation in Office and
Sales/Marketing
163
• Collecting broad informations as far as possible ;
brainstorming, listening directly gemba operators
• Expressing the lives of the people; not nominal but
brief sentence or language
• Finish drawing with all together in group members
• Putting out much effort for redrawing twice or three
times
• Capturing the root cause but not the middle cause
• Exchanging “why why” questions and answers
• Carrying out immediately actions as possible
• Thinking of the relation where we could cut off for
round circle causes
164
Tree Diagram
• “Deployment of component element”: develops the
component elements of the target to the relationship
of purposes and method. “Deployment of Measures”
: systematically develops the purpose and measures
in order to achieve the objective.
165
Main Uses of Tree Diagram
• Deployment of design quality in new product
development
• Deployment of Assurance Quality and bringing
into QC Process Diagram with each other in order
to ensure QA Activities
• Utilizing it as Cause and Effect diagram
• Deployment of Ideas for problem solving on QCD
etc. in within business corporation
• Deployment of Policy, goals, and strategic
Initiatives
• Making clear Functions of Division / Management
and Pursuing means with business efficiency 166
• Setting objectives and goals: brief express as “in
order to do～for ～ ”, make sure relevancy of the
setting
• Deployment of means
• Evaluation of each means (effectiveness , feasibility,
potential ) ; making effort for realizing and
developing of ideas
• Making cards of means
• Making tree structures consisted from hierarchical
relation between objective and means
• Verifying the attainment of objectives
• Implementation planning to completion
167
Matrix diagram
• Consists of rows and columns. Method that enables
people to observe the response among elements
(phenomenon, cause, method). It identifies the matter
in question and major emphasis by applying
pluralistic thinking.
R1 R2 R3 R4 R5 R6 R7
L1 ◎ △ ○ ○ △
L2 △ ◎ ○ ○ △
L3 ○ ◎ ◎ ○
L4 ○ △ ○ ◎ ○
L5 △ ○ ○ ◎
L6 ○ ○ △ ◎
168
Main Uses of Matrix Diagram
• Setting of the point aimed for development/ improvement
of the system product
• Quality Deployment of the Materials Product
• Enhancement and establishment of QA System through
Connection Quality Assurance with management functions
• Enhancement of Quality Assessment System
• Investigation of cause for defect at manufacturing process
• Drafting Product Mix Strategy through Linkage Market
between Product
• Making clear Linkage some projects with technology for
the realization
• Search of application fields for Existing technology,
materials / elements and so on
169
• There are derivative types in the matrix diagram as
follows; a) L type : the basic two dimension such as
objectives vs. means, b) T type: combination of two kind
of L types such as defect vs. cause vs. process and
component vs. property vs. use, c) Y type: combination of
three kind of L type such as A vs. B, B vs. C and C vs.
A, d) X type: combination of four kind of L type such as
A vs. B・D, B vs. A・C, C vs. B・D, D vs. A・C, e) C
type: Cubic type such as A vs. B vs. C.
• Should select and use the most relevant matrix type
correspond to objects analyzed and objectives achieved.
170
Process Decision Program Chart（PDPC)
• Method to establish the process that leads to the ideal
result for problems which results could vary along
with the development of the facts.
171
Main Uses of PDP
• Implementation Planning for achieving aggressive
goals
• Setting upon plans for the technology development
theme
• Prediction of any serious accident in the system and
deciding on the thoroughgoing countermeasures
• Countermeasures for defectives occurred in the
manufacturing process
• Planning and choosing of some alternative
countermeasures in the Negotiation Process
172
• Participation and Discussion of relevant persons with
the theme
• Abstraction of the subject matter have to consider
• Enumeration the results predicted for the subject
matter implemented
• Classifying subjects matters due to urgent need, man-
hours, possibility, difficulty and so on.
• Anticipation the most pessimistic/worst for results/
states of subject matters
• Determination of the priority for different property of
contents according to inter dependence
• Predetermination the time schedule to complete the
investigation for the process
173
Arrow Diagram
• Net work diagram is the diagram expressed by node

and arrow for ordered activities, where each activity
composed of the project is expressed as an allow and
is combined in order of precedence, and then nodes
are added to reveal time of start and completion.
174
Main Uses of Allow Diagram
• Promotion Planning and its progress management for
new product development / product improvement
• Scheduling and its progress management for the trial
manufacture / mass production
• Synchronization of scheduling with QC activities
• Scheduling and its progress management for the
transfer of plant / periodic maintenance
• Planning of Process Analysis and improvement of
business efficiency
• Scheduling of preparation and its progress
management for QC audit and QC diagnosis / QC and
QC circle conference
175
• Abstraction of works for the project
• Making clear the relation of preceding work and
succeeding work among works
• Abstraction and determination of parallel works
• Use on the dummy work for uniqueness of express a
pair of nodes for any work
• Drawing the allow diagram and estimating the
times/days required for each work
• For each node, earliest node time, latest node time and
slack are calculated, and for works, the earliest start
time, earliest finish time, latest finish time and latest
start time are calculated, and then total float, free float
and critical path can be derived
176
Matrix Data Analysis
(Principal Component Analysis)
• A method for an arrangement of multiple data
with matrix diagram to some representative
characteristics focused on correlation between
data with the least loss on information. It is the
principal component analysis, only numerical
data analysis. X2
Z1 Z2
･・
・・
X1 ・・・・・・・
・
・・・・・ Xp
177
Main Uses of Matrix Data analysis
• Process Analysis for complicated factors involved

• Analysis for defect factors with multivariate and
great deal of data
• Grasp the required quality from market survey
data
• Integration and Categorization for various
Sensual characteristics and samples
• Complicated Quality Evaluation
• Analysis of Curve response data
178
• Comprehensive measure principals(z= l x +l x + ・・+l ｘ
1 1 2 2 p ｐ
） are derived from multivariate data (x , x , ・・ｘ）so as

1 2 ｐ
to maximize variance of z
• Each principal (z > z >・・） is interpreted and attached
1 2
meaning based on l （i=1, 2, ・・ｐ） and independent

i
variable (x , x , ・・ｘ）. In generally, there is a statistical

1 2 ｐ
tend that z becomes size factor and z becomes shape

1 2
factor
• Systematic classification of common characteristics
according to type for values of the principals(z , z ,・) 1 2
• Effective treatment should be pursued for the

classification
179
Points to utilize task achieving process
Pursuit of the ideal image
Set a mission and existence value necessity. Identify what type of business
environment should be established.
Clarify the basic element which should be satisfied.
Evaluate element to secure superiority
Recognition of the gap between the ideal and the actual. Objective setting
Grasp demand, current level. Acknowledge the gap.
Understand the actual circumstances.
Set an aim to fill the gap. Set challenging objectives which are achievable
Make a task-achieving scenario
Clarify the connection between the objective and the target angle. Make a basic
action plan.
Extensive activity plan. Make an action scenario. Basic agreement of the scenario.
Follow up the scenario development
Thorough pursuit of the measure. Evaluation of the ideal and practicability
Measure proposal. Selection of the effective policy. Identifying criteria for effectiveness
to be realized. Selection of the optimal measure. Establish criteria for the measure to be
put into action. Effectiveness evaluation plan.
180
Statistical method
Population
Probability distribution, Substance, Psychology,
Market, Customer,
theory Probability Society
Supplier, Product,
distribution Service, Process,
Criteria, Activity
How it works Population: Target all the interested
Targets to be approached
Test, Estimate theory Random sampling:
Speculate, Test, Same components,
Estimate extract by accuracy
Direct observation; Sample Sample survey method

Experiment, Examination,
Data collection Sample distribution
Statistical quality control method Evidential scientific approach

181
Statistical method
Statistical quality control method Evidential scientific approach
Customer/industry analysis: customer needs analysis, market characteristic

analysis, typifying and segmentation, prediction, competitor analysis.
New product development: analyzing the effect of criteria, cause analysis,
experiment planning and data analysis, setting of the optimal criteria.
Quality assurance and specification; setting of optimum spec (Quality demand
suitability, device, assembly tolerance), reliability, maintainability.
Statistical process management: process safety, abnormality assessment,
abnormality handling, process capability evaluation, man-power improvement,
Examination and inspection; examination method, evaluation, supplier evaluation,
market and in-house evaluation, statistical examination method
Quality management, achieve

Aim and objective seeking approach
management objective
Customer satisfaction, market competition superiority, favorable ties with

customers and business partners, Continuous profitability, social evaluation,
Reduction in complaints, defects, failure, cost and time. Savings in resources
182
and energy.
Good company; Strong product and
Solution of problem and task Environmental change: Services which can provide customer
society, economy, market satisfaction. Enjoy good business
Observation, situation performance and financials. People and
awareness, prediction Sound mind and affection environmentally friendly. Cheerful.
Reality; present, future Gap Ideal image, demand Good society: Wealth,
economic growth,
Problem awareness, improvement,
Analyze and understand Conscious of innovation
advanced welfare
the current situation Problem, Task Grasp needs, insight, pursuit
Acknowledge the difference Technical aspect Understanding, stating, formulation,
Social aspect
and relationship modeling of a problem
Cause Possibility Learn from others: benchmarking
Phenomenon, occurrence
investigation seeking
mechanism
Concept, target angle, scenario
Analysis, hypothesis, Ideas, Originality
examination Countermeasure alternative plan Simulation, practicability
Eliminate cause, avoid
Evaluation, Choice Prototype, User-led
negative effect
Implementation of the countermeasure
Break of an effect, Confirming of the effect Systematize, firm establishment,
standardization, Learning, maintenance
Realization of the improvement and
lateral spread evolution. Sense of achievement
183
Essential Requirement in Problem Solving
Activities for Getting Successful Results
 Leadership and Commitment by Top Management

 Setting Meaningful Theme for the Organization
 Organizing Project Team for Solving the Theme
 Making Progress Theme and Supporting Problem
Solving in Public
 Instructing Future Countermeasures
184
Recognition in critical situation for organizational existence
Leadership and commitment by top management
Transformation process focused quality

Input;
Team
Environment
Output;
Strategy;
Resources Theme Evaluation
Results
(organization SWOT
&
Direction & Support Competitive
Stakeholder)
ability
History
Activation of the organization
185
Figure 4. Causal Model for the Effective Problem Solving Activity
Recognition in Critical Situation;
Social Value of the Organization Sharing Value and Fact (Problem)
Setting Critical Theme toward

Leadership and Results and Competition
Commitment
By Top management
Making Clear Direction and Priority
TQM Activities
& Organizing Cross-functional team
TPM Activities;
Creating Successful Scenario
Concepts
Methodologies
Tools Defining Problem & sub-theme
System
Performing Problem Solving Activities
Activation
Figure 5. Organizational Deployment of
Kaizen/Innovation TQM Activities and TPM Activities 186

On Concepts & Methodologies in TQM Activities & TPM Activities: Toward Intelligent Manufacturing

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On Concepts & Methodologies in TQM Activities & TPM Activities: Toward Intelligent Manufacturing

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On Concepts & Methodologies in

TQM Activities & TPM Activities:

Dr. HIROSHI KUBOTA

Hiroshima Institute of Technology 6

Hiroshima Institute of Technology 7

Hiroshima Institute of Technology 8

Good business performance Favorable asset components

3．Cheerful company Organizational vitalization

Hiroshima Institute of Technology 9

Provision of products and services that

Organizational vitalization Adaptation to the

Awareness, exposure and

Hiroshima Institute of Technology 11

 Intelligent Manufacturing for Realizing High

Activation of Organization and Kaizen

Power / Strength of Core Competences /

Customer Creation and Adaptation for Changing

Sustainable Competitive Advantages and

Activation of Organization and Kaizen

Production could be Provided Innovation for Activities and

Realization of Profitable Production Management System

Total Participation and Continuous Kaizen

Not Inconsistent of Methodology/tools applied

Constitute of Conceptual Framework Through Empirical

Organizational Activities pursuing Quality from Customer Value （TQM）

Proposal to each Customer, Creative Development of

Differentiation and Intellectual Property and Power Brand

Customer Creation and Exploitation of New Market/

Progress of Quality of Life and Welfare, Results and

Objects are Socio-Technical Systems；

Change in basic challenges for quality

TPM approaches TQM according to Expand its Territory from

World Class Award

Overlap ＰＭ Circles Evolutional ＱＣ Circles

TQM and TPM are both Organizational Management/Kaizen Activities

Definite Definition of Losses in TPM Emphasis on Recognition of

TQM and TPM are Based on both Scientific Approach（Factual Approach）

Technological Examination in TPM； Utilization of Statistical Methods in TQM；

Method for total Optimization

Methods for Realization of Zero/Ultimate Goal

Methodology/Tool Utilized in TPM

Active Definition of Opportunity Loss；

Correspondence to Expansion of Activities Fields in TPM

Utilization of Methodology of Strategy, Marketing, Product Planning

Learning from Methodology in TPM

From Statistical QC Methods to Scientific QC Methods；

Esteem for Specialty and Existence of Each Member of the Organization；

TQM and TPM should be developed to Adapt for Environmental

Awards on TPM are Constituted in order to Raise the Level of Activities

TPM has been Promoted and Activated by consultants of JIPM；

The Committee of Award of PM Excellence are Constituted

Instructive Comments on the Examination are Given

System/ Management by Policy Daily Management Phase Management

Product Planning, Strategic Policy Management(Breakthrough Management),

Loss tree, Through Bottleneck Analysis, Single Time Set-up, PM analysis,

The Function of TPS at TOYOTA 34

Strategy Target／Goal Setting

Provision of products and

customer purchases and

Hiroshima Institute of Technology 40

Quality of Varied customer needs

Act Plan Act Check-

Act Plan Check-