Today I read a very nice article titled ‘How the Japanese learned to compete‘ in Asia Times Magazine. It captures the growth of Japanese car makers in the world market which was essentially based on quality and reliability.
The article says that there was virtually no competition for American cars after World War II. US car makers then competed with one another on the basis of style, not reliability. It was only around 1980 Americans got awakened because of the competition they started facing from the Japanese in various sectors including automobiles.
Dr. Deming (1900-93) was a key contributor to the Japanese economic recovery after the world war II. It was with his help Japan learned to become competitive. His teachings were centered around the following principles
- Improving quality and reducing costs
- Total responsibility of the management for quality
- Kaizen – planning for continuous improvement
- Using market research to create products matching customer’s needs
Any industry or country that follows these basic principles will become competitive in the global economy and begin to gain market share in their respective business areas. Without long-term consistent leadership on quality from management, Japan would not have become competitive as it is today.
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