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COVER STORY
The Teacher Sans
Contd...Yamaguchi hates dissent. If a manager interrupts him with a doubt, or tries
to justify the company's style of working, Yamaguchi shouts him down. And he shows his
dislike of poor quality graphically, as he did on a shopfloor when enquiring of the CEO of
a company: ''Where's your toilet? I feel like puking.'' The CEO-as Yamaguchi had
plotted-has vowed that he will show dramatic improvements on the guru's next visit. On
another occasion, Yamaguchi burst out in rage when he discovered that a particular company
had not implemented his suggestions. The CEO of the company had shouted at him: ''I pay
you money; you can't shout at us.'' Yamaguchi not only raised his volume further, he also
dropped the company. Says K.K. Sawhney, 55, President, Gabriel India: ''He can be totally
ruthless when it comes to mowing down hurdles on the path to change.'' That goes for
Tsuda, too. And the commonalities between the two masters are evident in their primary
pedagogical characteristics: the propensity for calling a spade not a spade, but a shovel;
the relentless focus on time-bound results; and the strategy of achieving results through
micro-management.
SOME NOTES ON THEIR TEACHING
"Tsuda and
Yamaguchi are very different in terms of temperament style, and body-language. But they
both work for excellence."
N. Srinivasan
Deputy Director-
General, CII |
A system of instruction that relies on visual
inspection, implicit obedience, and an almost ritualistic observation of basic
shopfloor-housekeeping practices may seem primitive and unscientific. It isn't. For, it
works. Indeed, Japan Inc. has for long acknowledged the benefits attached to the visual
approach to shopfloor management. Besides, the implicit obedience has a benefit: quick and
certain results. Agrees Uttam Chatterjee, 42, Head (Quality Assurance), Hindustan Lever
Ltd (HLL), one of the organisations that Yamaguchi is working with: ''If you implement TPM
the Yamaguchi way, there's little left in the plant for you to bother about.'' For
Tsuda-San's disciples too, anything the master says is gospel. Says K.K. Gupta, 58,
Managing Director, GKN Invel Transmissions: ''Our senior management has resolved to do
whatever he tells us. We have agreed to follow him without arguing.''
The focus on basics helps organisations challenge fallacious
assumptions that might have been systematised over a period of tine. Says Arvind Dham, 38,
Managing Director, Amtek Auto: ''We've always had a lot of books, charts, and quality
manuals, but, according to Tsuda-San, a company can practice world-class quality only when
everyone in the organisation has his basics right. By doing the same job for years, we
begin to believe that we know it like the back of our hand. But, actually, we may have
forgotten the basics.'' Or got them wrong.
But if the approach of solving problems by walking around
seems unscientific, the specific tools and techniques used certainly aren't. When
Yamaguchi first visited HLL's ice-cream plant at Nashik, he found a bucket kept under a
machine. When questioned about it, the worker on the machine told him it was placed there
to collect ice-cream sticks that would fall off the machine from time to time. An
inspection revealed that one of the clips in the machine was not gripping the sticks
adequately. And a cause-effect analysis indicated that low pressure in the pneumatic
cylinder powering the machine was responsible. The cylinder was repaired. And the problem,
sorted out. Explains V.K. Mehta, 58, Vice-Chairman and Managing Director, Clutch Auto:
''It's the science and the systematic learning behind the theory that is fascinating.''
The approach: focus on discrete, achievable goals, recommending specific improvement
initiatives, and pack in just the right amount of practicability to make it attractive to
managers deluged in a surfeit of theory.
THEY'RE MAGICIANS TOO
Of course, the numerical results are flowing faster than the
gurus' volubility. Among Tsuda-San's disciples-all of whom have taken up the challenge of
attempting to win the Deming Prize over the next 5 years-Sundaram Brake Linings' customer
complaints have come down from 1,451 per million to 1,227 per million. Sona Koyo
Steering's machine downtime has reduced from 23.60 to 17.31 per cent in assembly-line. And
Asahi India's rejections have reduced from 0.13 to 0.05 per cent due to Poka Yoke.
Yamaguchi's pupils are proving no less apt. Losses due to stoppages and idling at HLL's
Sumerpur (Uttar Pradesh) plant have fallen from 112 hours in the first quarter of 1998 to
the targeted 50 by the first quarter of 1999. The A.V. Birla Group's TANFAC Industries'
overall equipment effectiveness has increased from 77 per cent in 1995-96 to 118 per cent
in 1998-99. And cases of equipment breakdown and failure at Sundram Fasteners have slumped
from 410 and 360 in 1995-96, to 30 and 25, respectively in 1998-99.
"ISO and QS
are introductions to TQM. To achieve Deming standards, one needs to climb many more steps.
And that need teachers."
K.K. Nohria
CEO, Crompton Greaves |
But it isn't just the manufacturing and quality
practices of corporate India that the dynamic duo are targeting; it's an entrenched
mindset. Says Surinder Kapur, 53, CEO, Sona Koyo Steering: ''The gurus put you onto a
process which will bring about change in mindset and improvements vis-à-vis world-class
players.'' That Tsuda and Yamaguchi are serious about change becomes evident from the
first, and, often, only condition they lay down before agreeing to work with a company:
the involvement of its principal change-agent-the CEO.
Observes T.K. Balaji, 50, CEO, Lucas-TVS: ''Besides the
specific methods and techniques, Tsuda brings to bear a high level of thinking process in
implementing ideas. His approach, if fully practised, would benefit companies in not only
institutionalising the change process, but also helping to constantly think and challenge
the status quo.'' Yamaguchi even threatened to stop working with TANFAC Industries when
Managing Director V.T. Moorthy could not be present at the plant at Cuddalore during a
visit due to a pressing foreign engagement. It was only after Moorthy's personal apology
that he relented and let himself be persuaded to return. Avers Yamaguchi: ''If the top
management is not serious, I don't like to waste my time with the company.'' The logic
underlying their choice of prime-disciple is fairly easy to understand: it is easier to
get an individual to learn than an organisation. And if this individual is the CEO, the
organisation is certain to learn quicker than it would if he were the assistant manager
(quality).
Both Tsuda and Yamaguchi address-target describes it more
aptly-the middle-managerial level as the launch-pad for transformation. To tell the truth,
both of them actually consider the middle-manager the bane of quality movements. Listen,
first, to Tsuda: ''The Indian worker is very good, and he's doing his job very well. The
top management also has the right vision for the business. It's the middle level that is
not performing. The production manager works like a jail superintendent. He is too
involved with the supervisory role.'' Echoes Yamaguchi: ''Companies in India have top
managements with a vision. The workers are quiet, and they do their work as they are told
to. It's the manager who's not performing. He's sleeping. Wake him up.''
What the angry twosome are telling corporate India: the
middle-manager is too busy maintaining status quo to turn his attention to
improvement-leave alone breakthroughs. Tsuda believes that India's managers spend 90 per
cent of their time ensuring that existing levels of performance are maintained; 10 per
cent, on generating improvements; and none at all on achieving the breakthroughs that
quality demands. His ideal: the mirror image of that distribution, which would, at one go,
pitch the middle-manager into the role of changemeister. It's the same approach that's
evident on the Faridabad shopfloor where Yamaguchi has just blown his fuse at a senior
manager. ''If this company is unable to perform, it will be because of your attitude,'' he
thunders, advising the CEO of this particular vendor to Maruti Udyog to sack that manager.
In their hands, TQC and TPM are serving as effective
change-management tools. And any company that implements either successfully immediately
focuses on the next Operational Efficiency (OE) initiative that it needs to launch. Thus,
less than a year after it bagged the Deming Award, Sundaram Clayton is implementing the
JIPM's TPM practices and chasing the Japan Prize. Says Sundaram Clayton's Srinivasan: ''I
don't want complacency to set in.'' And, 4 years after winning the JIPM's TPM Excellence
Award, Vikram Cements has made TPM the platform from which it launches all other OE
initiatives.
BUT IS IT JUST ALTRUISM?
Maybe, just maybe, there's more to it. One possible
explanation could be the future of India in Japan Inc.'s worldview. The essence of
Japanese manufacturing is the keiretsu-a chain of supplier-manufacturer relationships that
serves as an effective entry-barrier to the competition while guaranteeing high levels of
quality. And the desire to establish an off-shore keiretsu may lie behind the
Japanese-sponsored TQM and TPM revolution that India is witnessing.
In the New Millennium, the manufacturing function will become
the domain of large technology-rich contract manufacturers in the developed countries, or
large labour-rich global suppliers in the developing world. Japan is not ideally
positioned to tap either opportunity. So, developing a global sourcing base (read: India)
is critical to the future of Japanese industry. The efforts of the JUSE and the JIPM,
then, could well be part of a greater strategy that seeks to build a base of high-quality
suppliers that Japanese industry can tap. Whether that happens or not, Indian companies
are emerging as gainers already. For that, they can only thank the two unpredictable
guru-san. Domi Arigato.
"My quality mission will end only when I'm simply unable to
come to India any more" |
Name: Yoshikazu Tsuda
Age: 64 years
Education: B.Sc in Mathematics & Statistics from Osaka City
University, Japan, 1960
Occupation: Counsellor, JUSE
Posts held: Research Fellow, Faculty of Science, 1965-68; Lecturer,
Faculty of General Education, 1968-72; Associate Professor, Faculty of General Education,
1981-95; Professor, Faculty of Interactive Science, Rikkyo University, 1995-97
Hobbies: Skiing, and playing the oboe |
Two years ago, he was Professor of Mathematics,
Rikkyo University, Tokyo, Japan. But it is through his alter ego-Counsellor, JUSE (Union
of Japanese Scientists & Engineers)-that the 64-year-old Yoshikazu Tsuda is best known
in corporate India. The quality guru who helped Sundaram Clayton become the first Asian
company-outside Japan-to win the Deming Prize for quality, Tsuda is a peripatetic prophet
of Total Quality Management (TQM). On the rare occasions that he is at home in Tokyo,
Tsuda-San can either be found playing the oboe, or skiing on the slopes. On a recent visit
to India, he shared his vision of Total Qualiy India Inc. with BT's Rajeev Dubey. Excerpts from the
interview:
Tsuda-San, how did a professor of mathematics become
a prophet of total quality?
Each individual has 2 sides to his personality: what he
is-and what he wants to be. For instance, a good conductor may want to be a good pianist
too. I have an interest in quality.
What are the major shortcomings that you have
discovered at the companies that you work with?
They didn't have any precision in their operations. There was
no transparency in their work. Transparency means that people should have access to
information. Each employee of the company must know what is being done-and why. That
wasn't there. The companies claimed they had ISO and quality systems. But their
application was superficial. They claimed that they had sound operational standards, but
the efficiencies that should have been there if operational standards were being followed
were just not there. The concept of quality is understood only superficially in India.
Companies need to go in deep to get good results. That's what I'm telling them.
Do you think Indian managers are equipped to create
organisations that are quality-oriented?
Indian managers lack initiative. If somebody tells them to do
something, they do it better than anybody else. But they never do it on their own. I only
organise their own initiative into order. In most companies, managers work like
supervisors, but that's not their job. A manager's job is to manage. He should spend the
maximum amount of his time on improvement and breakthroughs. Operational details are for
workers. But here, most managers are busy with the operational details. I believe the
Indian worker is doing his job; the Indian manager is not. Each layer of management must
contribute appropriately to value-addition. Most Indian companies lack management
infrastructure. I also insist that the companies I work with have a clear job-description
for each of their employees, defining the person's authority, responsibility, and
accountability.
Why did you decide to organise companies into
clusters before working with them?
There were 2 reasons. One, there was a huge demand for my
time. I could not have taken up individual assignments. Two, it helps to study and learn
through one another. It's best when companies work together, sharing their problems, and
coming up with a solution. I am only a facilitator.
One of the companies that you've worked with,
Sundaram Clayton, has won the Deming Prize. Do you want the other companies you work with
to run for the Prize too?
I'm not insisting that any company should go for the Deming
Prize. I'm only making sure that they do whatever they set out to do-perfectly.
How do you determine whether a company is ready to go
for the Deming Prize?
The company must have created excellence in implementing
certain quality measures.
What is excellence, Tsuda-San?
It is difficult to explain, but when you look at a company
and its process, you can make out. The company must have the desire to enhance its
productivity and product-quality. It must also be able to bring about drastic changes in
its performance. The company must be able to align objectives across departments,
functions, and individuals. And its corporate policy must be transparent and known
throughout the company.
How long do international companies take to reach
these standards?
Companies with inherent strengths can do it in 10 years. But
some are never able to achieve quality standards because they neither had the willingness,
nor the inclination, to work hard continuously.
How long will the journey take for the companies you
are working with in India?
For these companies, we have targeted 5 years. For me, it'll
end only when I'm just not able to come to India any more. |
"If the manager is sleeping, who will implement TPM?" |
Name: Sueo Yamaguchi
Age: 52 years
Education: Bachelor of Business, Ritsumei Kan University, Japan, 1969
Occupation: Consultant, JIPM
Posts held: Head of JIPM's Osaka branch, 1975-87; Manager, Education Training Division,
JIPM-HQ in Tokyo, 1987-89; Head, Overseas operation, JIPM, 1989-91...
Hobbies: Golf |
This guru can pretend to be irascible. Sueo
Yamaguchi, 52, a consultant with the JIPM (Japan Institute of Plant Maintenance) is just
5-feet-2-inches tall, but he packs a mean punch. Calling himself 'a wake-up call for
middle management,' JIPM's Chief Representative to India doesn't mince his words,
machine-gunned in Japanese-spiked English. He is determined to drive his teachings home,
any which way. And when he isn't spreading the gospel of Total Productive Maintenance
(TPM), he is either absorbed in brushing up on the basics of Tamil and Hindi, or teeing
off on the greens of Bangalore with the mission of becoming a scratch golfer. Although he
spent half of 1998 in India, TPM and golf hardly leave time for anything more. But, dogged
as he was by BT's Rajeev Dubey,
Yamaguchi pinched time between lunches, dinners, presentations, seminars, and
factory-visits for an exclusive interview. Excerpts:
Yamaguchi-San, how difficult is it to operate in a
country that has hardly understood the essence of TPM?
When I was first preparing to come to India, my boss, T.
Suzuki, the Vice-Chairman of JIPM, told me: 'TPM is difficult to implement in India.' But
companies here are not any different from those elsewhere. The environment and the
conditions may be different, but the problems are the same.
So you don't share Suzuki's viewpoint?
I don't feel that way. In fact, I managed to change his
opinion when he came to Vikram Cements for the TPM Excellence Award audit. His perception
of India has also changed significantly.
Indian managers were acquainted with TQM, but not
with TPM. Didn't that lead to conflicts between the two?
Quality is not something to be discussed. In Japan, it is not
something you talk about. It should be there. That's all. That is how it should be in
India too. TPM and TQM complement each other. There is never a conflict. There are so many
companies who implement TPM after TQM. In India, Sundaram Clayton is doing this. First,
they won the Deming Award in 1998. Now, they are implementing TPM. But TPM makes for
quicker results. You can observe drastic changes in 3 years. Vikram Cements and Sundram
Fasteners both achieved significant benefits from using TPM in just 3 years. Few other
practices can claim that kind of result.
Are there any pre-requisites you insist on before
teaching a company how to practise TPM?
If the top management is not interested, I don't waste my
time with the company. Most top managements are not interested. They think TPM is
cleaning. It is a question of approach and change of mindset. I went to a company where
the president got up to address the top management and said that they must learn TPM from
Yamaguchi. Before I started my presentation, the president was gone, 6 of his joint
presidents were gone, and half of his 26 vice-presidents also went away. Who will
implement TPM in that company?
In all your presentations to, and meetings with
companies, you always come down heavily on managers at the middle and lower levels of the
organisation. Why is that?
That reflects how I feel. I think companies in India have top
managements which are endowed with a vision. The workers are quiet, and they do their work
as they are told to. It is the manager who is not performing. My favourite topic is the
manager. He's sleeping. Wake him up (thumps the desk hard). Ask him to do his job.
Your temperament and demeanour are intimidating.
Doesn't it scare people and put them off their work?
I use my temper only to wake them up. I shout to change their
attitude. If the manager is sleeping, who will implement TPM? The union? I'm like a person
who is in charge of the wake-up call. I have to keep ringing the bell. One chairman told
me that if he shouts at his people, there's a big problem-long faces. But there is no
problem when I shout. He says I keep them on their toes; he says he is happy with the
progress. That's how it works. If I don't thump the desk every 3 months to ask why the
homework has not been done, nothing will get done. After Sundram Fasteners got the TPM
Award, I asked Suresh Krishna (the company's CEO): 'Why do you need me? Your cost
increases because of my visits.' He told me: ''No. My cost will increase if you don't
come. There will be no pressure on managers to improve.''
What happens when you go away, Yamaguchi-San? Don't
they go back to their old ways?
I hope not. If it is a learning organisation, in 3 to 5
years, TPM normally becomes a habit. Sundram Fasteners is not implementing TPM, the
company is enjoying it. TPM is like a sport. Practice is very important. |
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