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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

N. Srinivasan, Deputy Director-General CII

"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.

K.K. Nohria, CEO, Crompton Greaves

"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"

Yoshikazu Tsuda

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?"

Sueo Yamaguchi

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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