Executive summary
The United States and Japan seem to have different working cultures in terms of industrial relations. Japanese economists respond to problems in distinctive manners such as the ways that have been influenced by the Japanese economic environment, by indigenous intellectuals traditions, and by the status of the economist in Japanese society. Japanese state played a vital role in initiating and protecting the business enterprise. While the American industrial history is full of cost analysis, human rights act and labor problems. In the late 1800s, Americans began their industrialization process with little knowledge about their workers rights. Thus, because lack of information on how to value their employees, resulted in the creation of many different groups, demonstrations, and unproductive protests nationwide. The impact of these protests led the United States industrial market to change the requirement of the market to meet the needs of the population. This brought in the idea of considering people first if the company has to produce better. The idea of putting people first was very fruitful for the workers. As the management is based on organization strategy, the employees deal with themselves. This concept is still used up to today and is very vital to the industrial sector.
Japanese reconstructed their industrial manufacturing sector after the Second World War. They focused their reconstruction on a simple philosophy of committed work ethics, after encountering large losses economically. The work ethics of commitment and devotion to work helped lift their nation back on its feet again after the war. The idea of company first philosophy was brought up, where the companys needs were valued first, and its success was their satisfaction. Today, this concept of valuing the company first has spread throughout the Japanese industrial sector, which in turn makes Japan be among the best industrial sectors in the world.
Sanyo Manufacturing Corporations in Japanese management came up with a system from activities implemented on their island after Warwick Electronics Corporation in America took over in Forrest City, Arkansas, in 1977. However; they encountered problems in their system because of the ideals of the American employee. Significant changes resulted in taking over a quantity production and cost industrialization process with a Japanese system, which emphasized quality over quantity, hence change on the manufacturing line.
Japanese improved standards and the American employee’s philosophy collaborated within the Sanyo Case study, though not as required, still produced fruits. The Japanese never considered the importance of the American work ethic of workers first. Therefore, for this case study, we will evaluate the contrasting differences between the industrial philosophies of the Japanese and the Americans.
Warwick Electronics Corporation
This Warwick Corporation was started as a joined business by Sears, Roebuck, and the company. Whirlpool bought control shares of the organization in 1966. Thus, Warwick Corporation was under the Whirlpool and Sears from 1966 to 1977. Sanyo Corporation purchased controlling stock in the Warwick in 1977. All these changes came about as a result of the unsatisfactory nature of the American customers from the products produced by Sears, Whirlpool, and Warwick. The organization was mainly based on quantity production of goods and services, therefore failing to create a program focusing on meeting the satisfaction and happiness of the consumer concerning the goods being sold to them. Their many attempts to change the various issues were very expensive and unproductive. By the time Warwick commenced creating an advanced television set, the general public had developed a bias and had no trust, thus making it hard for future purchase of the Warwick products (Hayes, 1981).
Warwick failed to produce effective products as expected for its consumer even after employing a quality control manager. It was described by the manager of that period that, Warwick was manufacturing products that were not efficient even before they left the manufacturing factory. This meant that the inefficiency of those goods produced could be felt before they were officially brought to the market for sale. Therefore, this angered Sears, as customers stopped using the Warwick goods, thus the only thing needed at that particular moment was change.
The Sanyo Takeover
Warwick Corporation was transferred on January 1st, 1977 to Sanyo who later changed its name to Sanyo Manufacturing Corporation. The Japanese manufacturing industry aimed at producing clear and quality goods after the purchase of the Sanyo Manufacturing Corporation Company. They improved their manufacturing abilities within the first six months from one production line to three. They managed to create a more sophisticated and improved production facility that was able to make 800,000units per year, from a small television-manufacturing site (Hayes, 1981).
For Sanyo to survive in the production line had to carry out critical steps like promoting the Quality Control Manager to show that they value quality more than anything else, they also had to maintain the old employees who added up to 18% of the Forrest Citys population, and finally, they had to carry out clean-up activities within the factory because televisions are environmentally sensitive. Therefore, this clean-up exercise was advantageous to Sanyo Manufacturing Corporation because its quality and efficiency were improved. The workers at Sanyo were never satisfied even after the Japanese leader attempted to create a healthy environment by opening communication between the subordinates and managers. The Japanese leaders at the Sanyo Manufacturing Corporation did not notice the tension that existed at the company, thus they were not prepared when demonstrations occurred. From this, it was noted that the American workers maintain a lower relationship towards their organization compared to the Japanese.
Moving Forward
American philosophy was finally put into consideration by different foreign leaders after many trials, and labor problems between employees and managers, Japanese and the Americans, thus, leading to meeting the goal of improved quality and making it a reality. Quality being the Japaneses weapon, they realized that it was not the most vital piece to the American manufacturing industry. They learned that people were the most essential item in the production line.
Recommendations
For Sanyo Manufacturing Corporation to reach its goal, they need to put in more effort so that they improve quality beyond its current state. They are also recommended to put their manufacturing philosophy needs in line with their workers and their supervisors through attending classes on American workers union history and the industrial revolution up to the current situation. Japanese leaders should know that it is not enough just to open up communications channels between workers and their managers, but there is a need to provide training opportunities for the new communication channeling model.
Conclusion
The Japanese manufacturing model implementation was a better way to begin improving the quality and effectiveness of the plant. For Sanyo Manufacturing Corporation to be among the best producers in the American manufacturing industry, they need to apply the recommendations given above. For example, rewarding their employees who work hard to improve upon the Japanese philosophy of quality improvement and they should also find more vendors.
Reference List
Hayes, R. (1981).Sanyo Manufacturing Corporation–Forrest City, Arkansas.USA: Harvard Business School.