HOW PAKISTAN’S INDUSTRY CAN ESCALATE PRODUCTIVITY WITH JAPANESE CHAIN REACTION?

No country in the history of the world has ever achieved greatness without focusing on massive revenue generation for its long term growth. Either it be through exports or tourism, emphasis has always been to churn in in more dollars which can lead to the massive GDP heights in the long run.

Pakistan’s industry has been striving to escalate the exports bottom-line by producing globally competitive product/service. While the word is embracing the 4th industrial revolution, it is an irony that many of our business houses struggle to streamline their processes for better quality and productivity. Therefore, it is wise to not re-invent the wheel but turn the pages of history to get a framework for subjected needful.

W. Edwards Deming narrated that Japan, in 1950, had negative net worth. Japan was, as now, devoid of natural resources –oil, coal etc. Moreover, Japan had reputation for shoddy consumer goods, cheap but worth the price. It used to export goods in return for food and equipment. Amidst this scenario, only one thing could have catapulted the situation in favor of Japan: Quality through systematic approach.

A system view of the organization maps the flow of the process to create the service and products. Rather than seeing each entity as an individual point, W. Edwards Deming focused on seeing the whole picture as a system. While seeing production (IPO model) as a system, it becomes clear that quality starts from the beginning of incoming raw material rather than only gauging the quality check at the end of production line. Likewise in service organizations, the source A, B, C could be the source of data or work from preceding operation such as design, engineering, quotation, shipping order etc. This concept is summarized as follow;

Thus, Japanese started embracing this systematic view while putting customer as a top priority. By thing all the system with the mindset of system a better quality product at lower cost became inevitable.

JAPANESE CHAIN REACTION

Taking one step forward, by the end of 1950, Japanese engineer started comprehending quality and statistical control techniques in order to better understand the behavior of the industrial system. As a result one chain reaction came into being which served as a daily reminder for everyone in organization to work hard while producing better quality product/service, if you wish to stay in business. This chain reaction became the drawing on every blackboard in Japanese meeting and it is given as:

With the chain reaction in place, every production worker in Japan knew that if less quality (defective) product get into customer hand than company will lose the market and he will lose the job. Moreover it became undivided bond between management and stakeholders top put quality as foremost objective because it can lead to prosperous future for all concerns.

What Pakistan’s industry can learn from this?

We do not have to reinvent the wheel. By following the simplistic work of great gurus and decoding the blueprint of such nation’s alike Japan, we can also embrace the blueprint of quality focused mindset.

By embracing this chain reaction, every personnel cross Pakistan’s business chamber scan get a clear idea about the importance of producing better quality product/service for the end customer. If Japan can do it with minimal resources, than Pakistan with good management can surely make its mark on the earth crust.

The wealth of a nation depends on its people, management, government, more than on it natural resources. The problem is where to find good management?

References

Out of the Crises: W. Edwards Deming

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