Manufacturing as a System of Design
August 2007, for ISSS Takahiro Fujimoto Professor, Faculty of Economics, University of Tokyo Executive Director, Manufacturing Management Research Center Senior Research Associate, Harvard Business School
Manufacturing Management Research Center, University of Tokyo (2003 -)
〒113-0033 東京都文京区本郷3-34-3 本郷第一ビル 8階 TEL:03-5842-5501 FAX:03-5842-5536 問い合わせ先： info@ut-mmrc. jp
The Architecture - Capability Framework 1
Design-Information View of Manufacturing
2
Organizational Capability -- Controlling Design Flows
3
Performance Measurement -- A Multi-Layer Approach
4
Product-Process Architecture
5
Capability-Architecture Fit -- Explaining Competitiveness
C Takahiro Fujimoto, University of Tokyo
1 Design-Information View: Interdisciplinary Background Technology and Operations Management (Innovation Management) Evolutionary Theory of Firms Resource-Capability View of the Firm in Strategic Management Product-Process Architecture in Engineering Combining Design Concept in Engineering and Trade-Industry Policy
Fit between Organizational Capability and Architecture →
Design-Based Comparative Advantage
C Takahiro Fujimoto, University of Tokyo
Framework: Design-Information View of Manufacturing
Key Concept:
Design Information
=
Value
A firm’s products and processes are artifacts that has been designed. Manufacturing is essentially creation and transmission of design information to customers. A firm’s manufacturing (monozukuri) capability is its distinctive ability to handle flow of design information toward customers. Product-process architecture is designers’ basic way of thinking when creating design information for the product and processes. “Design” is the common denominator for these analyses. C Takahiro Fujimoto, University of Tokyo
Manufacturing (monoｄukuri) means creating design information flows to the customers We focus on design (as opposed to material) side of manufacturing artifact = design information + medium c.f., Aristotle: object = form + material
design information
where form is more essential
medium
form material
Products (goods and services) are the artificial (= something designed)
manufacturing, if medium is tangible
design information tangible medium
service if medium is intangible
Primary source of customer value is design information C Takahiro Fujimoto, University of Tokyo
design information intangible medium
Manufacturing as a system of design information between productive resources Manufacturing activity is design information flows between productive resources productive resource design information
Design Information flow
medium
productive resource design information
product design Information flow
medium
design information
medium material (media) flow
customers
firms development
C Takahiro Fujimoto, University of Tokyo
production
sales
Reinterpreting Manufacturing Activities as a System of Design Information Processing Product as design information that is embodied in a particular medium
Figure 1
Product = Design Information + Medium
Design Information
Product＝ Medium
C Takahiro Fujimoto, University of Tokyo
Product development means creation and verification of design information. Production means repetitive transfer of product design information from production process to materials or work-in-process. Figure 3 Production and Development as Design Information Processing Product Development = Creation of Design Information Design Information Stored in the Production Process Producion = Transmission of Design Information from Process to Product
Materials = Medium
Work in Process =
Product =
Medium
Design Information + Medium
Key:
＝ Design Information
＝ Medium
Non-essential information and medium were omitted for graphical simplicity. C Takahiro Fujimoto, University of Tokyo
the
Design Information Body Exterior Design
0.8 mm thick steel sheet C Takahiro Fujimoto, University of Tokyo
Media (Material)
Design Information Body Exterior Design Embedded in Press Dies
Product Development
Production
0.8 mm thick steel sheet C Takahiro Fujimoto, University of Tokyo
Purchasing Meria (Material)
Product = Design Information + Media Body Exterior Design Embedded in Press Dies
0.8 mm thick steel sheet
Production = Marriage of Design Information Media C Takahiro Fujimoto, University of Tokyo
What is Going on at the Press Shop Body exterior design information, embedded in press dies (steel block), is transmitted to 0.8 mm thick sheet steel (media) Information transmission time = value-adding time Information non-transmission time = MUDA
press dies body design
transmission
cast iron
body design 鉄板
body panel C Takahiro Fujimoto, University of Tokyo
Sheet Steel (Media) Absorbs Design Information through the Press Operation
press die press die body design
body design
cast iron
cast iron
press die
press die body design cast iron
Design information, embedded in press dies, is transmitted to sheet steel C Takahiro Fujimoto, University of Tokyo
body design cast iron
Goods and service as flows of design information physical goods ・・・ 2 stage transmission： development
① to tangible medium ② to customers
①
design info
production medium (tangible）
design info
sales
design info
design info
medium (tangible）
medium (tangible）
consumption
service・・・ intangible medium; direct transmission to customers development
unsatisfied customers
medium (intangible） C Takahiro Fujimoto, University of Tokyo
design info medium (intangible）
sales
②
satisfied customers unsatisfied customers
production design info
satisfaction
Design info
consumption satisfied customers
The Architecture - Capability Framework 1
Design-Information View of Manufacturing
2
Organizational Capability -- Controlling Design Flows
3
Performance Measurement -- A Multi-Layer Approach
4
Product-Process Architecture
5
Capability-Architecture Fit -- Explaining Competitiveness
C Takahiro Fujimoto, University of Tokyo
2 Organizational Routines and Capability of Manufacturing Organizational routine of manufacturing ------
Repeated control of design information flow between productive resource
routine design info
design info
medium
medium
A system of organizational routines for fast, efficient and accurate flows of design information to customers
Organizational capability ------of manufacturing
routine
routine
routine
routine
routine
routine
design info
design design info info
design design info info
design design info info
design design info info
design design info info
design info
medium
medium medium
medium medium
medium medium
medium medium
medium medium
medium
C Takahiro Fujimoto, University of Tokyo
Toyota’s Manufacturing Capability as Effective Information-Processing
Toyota’s manufacturing capability Dense and accurate information transmission between flexible (information-redundant) productive resources. (1) Higher Productivity and Shorter Throughput Time (TPS) Muda is unnecessary non-transmission time, which includes inventory, over-production, and defects on the information receiver side, (2) Higher Manufacturing Quality (Lower Defect Rate) (TQM) Building-in quality: - Errors of information transmission are avoided in the first place (vs. inspection) C Takahiro Fujimoto, University of Tokyo
Information Transmission and Reception in Production productivity (#1station) （person-hour per unit）
Value adding time (transmission） Value adding time (reception）
productivity (#2station) （person-hour per unit）
Non-value-adding time Inventory, waiting, transporting, etc. Productive resource
cycle time
cycle time
Worker
Worker
Transmission side (working) Work-in-process
material
Reception side (process) design information flow
material flow
#2 station
#1 station
Inven -tory
inventory time
Tans port
Inven -tory
cycle time
inventory time cycle time
production lead time C Takahiro Fujimoto, University of Tokyo
product
(1) Higher Productivity and Shorter Throughput Time
Figure 9
Organizational Capability Regarding Productuvity and Throughput Time (Toyota) product design for manufacturability
flexible task assignment (shojinka)
pull system
Work Design Equipment Design
workers participate in Kaizen (improvements)
Worker and Equipment
B
levelization of product mix (heijunka)
reduction of finished goods inventory
C Takahiro Fujimoto, University of Tokyo
M
incremental impovement of equipment low cost automation M
supplier's Kaizen (impronements)
flexible equipment quick set-up change
Worker and Equipment
communication
visualizing non-value time (JIT, andon, line stop cord)
regular pace of information transmission (levelization, small lot)
process step 2
reduction of work-in-processi inventory or piece-by-piece transfer
process step 1
designing process flow pror to work & equipment design
M
JIT delivery
M
M+A
mixed-model (small lot) assembly
supplier Kanban
A
M+A+B
lshort-term levelization of production volume
A
in-house design of equipment
Parts Design (M)
preventive maintenance
maximizing value-adding time
customer dealer
A
Work Design Equipment Design B
multi-skilled worker
black box parts system
Product Design (M+A+B)
B
revision of work designs by supervisors
parts design for manufacturability
supplier
reduction of raw material inventory
（2） Higher Manufacturing Quality Figure 10
Organizational Capability Regarding Manufacturing Quality (Toyota) design for manufacturability Product Design (M+A+B)
M+A+B
M+A+B
Worker and Equipment
Worker and Equipment
quick feedback of defect information
B
M+A+B
dramatizing the defect information (andon, jidoka, etc.)
prevention from sending A error messages (poka-yoke, jidoka, etc.)
M+A M+A+B?
yes
M+A+B?
final inspection
process step 2
no
no
scrap or rework
scrap or rework
information flow material flow A,B,M
yes
yes
information content
reduction of inventory or piece-by-piece transfer
on the spot inspection
process step 1 no
scrap or rework
M?
elimination of inspection of receovomg parts no
scrap or rework
inspection transformation productive resource
Toyota-style system as an integrative manufacturing capability C Takahiro Fujimoto, University of Tokyo
M
supplier's on the spot inspection
M
M+A?
yes
Key:
maintenance of process information stock (total productive maintenance, worker training, standard operating procedures)
Worker and Equipment Kaizen (continuous impronements)
customer
M+A
supplier
supplier's Kaizen (impronements)
Efficient/Accurate Information Processing at Toyota Integration-Based Manufacturing Capability Production --- Dense and Accurate Transmission of Design Information from Process to Product Development --- Early and Integrative Problem Solving Cycles For Fast Creation of Design Information Purchasing --- Long-Term Relationship, Capability-Building Competition, Bundled Outsourcing for Joint Creation of Design Information with Suppliers
Toyota’s Manufacturing capability Smooth, dense and accurate transmission of design information between flexible (information-redundant) productive resources. --- Integration-Based Manufacturing Capability 東京大学 藤本隆宏
Three Levels of Toyota’s Capabilities 1. Routinized Manufacturing Capability Ability to Achieve Speed / Efficiency / Accuracy of Repetitive Information Transmission from Process to Product (e.g., Kanban, Multi-Task Work Assignment, Self-Inspection) 2. Routinized Learning Capability (Kaizen Capability) Ability to Achieve Speed / Efficiency / Accuracy of Repetitive Problem Solving Cycles (e.g., Kaizen, QC Story, Product Development Routines) 3. Evolutionary Capability (Capability-Building Capability) Ability to “Learn Anyway” in the Long Run --- or Ability to Establish Competitive Routines Despite Complicated Multi-Path System Emergence C Takahiro Fujimoto, University of Tokyo
The Architecture - Capability Framework 1
Design-Information View of Manufacturing
2
Organizational Capability -- Controlling Design Flows
3
Performance Measurement -- A Multi-Layer Approach
4
Product-Process Architecture
5
Capability-Architecture Fit -- Explaining Competitiveness
C Takahiro Fujimoto, University of Tokyo
3 Measuring and Analyzing Industrial Performance -- From Competitiveness to Profitability Figure 12 Capability, Competitiveness, and Profitability other factors of environments and strategy
Organizational Capability
Productive Performance
Market Performance
organizational routine
productivity lead time conformance quality etc.
price delivery perceived quality etc.
Arena of Capability-building Competition
C Takahiro Fujimoto, University of Tokyo
Profit Performance
Example: Productive Performance of Japanese Auto Firms -- Development Productivity (Adjusted Person-Hours per Project) -3500000 3000000 2500000 USA Europe Japan
2000000 1500000 1000000 500000 0 Period 1 1980-84
Period 2 1985-89
Period 3 1990-94
Period 4 1995-99
Adjustment scheme: (1) # of body types=2, (2) New design ratio=0.7, (3) Supplier’s contribution=0.3, (4) Product class=compact/sub-compact C Takahiro Fujimoto, University of Tokyo
*Following Graphs Cited from Nobeoka & Fujimoto(2004)
Example: Productive Performance of Japanese Auto Firms -- Assembly Productivity (Adjusted Person-Hours per Vehicle) -50 41.0 40
35.5
30 20
25.3
24.9 21.9 16.816.5 12.3
29.7 28.0
20.1
16.8
10 0 JP/JP 日/日 (Hours*Person)
US/NA 米/北米
1989
EU/EU 欧/欧
1994
Developi 新興国 ng Cont.
2000
Source: M. Howleg & F.K. Pil, The second century (IMVP Survey) C Takahiro Fujimoto, University of Tokyo
Example: Productive Performance of Japanese Auto Firms -- Assembly Throughput Time (from Welding to Assembly) --
Throughput Time (Start of Body Assy-Final Line off) 40.0
36.3
35.0 30.0
25.5
25.0 20.0
20.5
20.1 17.1
15.0 10.0 5.0 （hr.)
0.0
(Hours) JP/JP 日本
海外日本 北米 JP/NA NA/NA
欧州 EU/EU
韓国 KR/KR
Data: IMVP2000yr. Survey, made by Jeweon Oh, MMRC C Takahiro Fujimoto, University of Tokyo
Multi-Layer Evaluation of Performance Operational Capability (JIT, TQC,etc.)
Productive Performance (productivity, lead time,etc.)
Market Performance (price, brand identity, etc.)
Profit Performance (ROE, ROS, etc.)
Strategy, Environment (e.g., exchange rate)
Estimated Relative Performance in the Late 1990s Japanese
European
American
Who Gets these Four Performances in a Balanced Way? C Takahiro Fujimoto, University of Tokyo
The Architecture - Capability Framework 1
Design-Information View of Manufacturing
2
Organizational Capability -- Controlling Design Flows
3
Performance Measurement -- A Multi-Layer Approach
4
Product-Process Architecture
5
Capability-Architecture Fit -- Explaining Competitiveness
C Takahiro Fujimoto, University of Tokyo
4 Architectural Thinking and Industrial Classification Supplementary industry classifications -- based on product-process architecture Product architecture, Basic way of thinking of engineers when they design functions and structures of a new product Figure 4
Product Function
Product Architecture
Mapping between Functional and Structural Elements
Product Structure
Compo nent Interface
Interface Component
Sub-functions
C Takahiro Fujimoto, University of Tokyo
Two Basic Types: Integral versus Modular Architecture Integral and Modular Architecture (2) Modular Architecture
(1) Integral Architecture Product Function Hierarchy
Product Structure Hierarchy
１ f1
s
F1
Product Function Hierarchy
S f3 f4
SS f3 f3
S2 s4
s2
F
s3
F2
S1 S1 f2 f2
s2
F
１ １ ss
F1 F1
S1 f2
f1 f1
Product Structure Hierarchy
F2 F2 f4 f4
Legends: F = Product Function as a Whole, S = Product Structure as a Whole
s3 s3 S2 S2 s4 s4
F1, F2=Sub-
functions of the Product , f1 - f4 = Sub-sub-functions of the Product S1, S2 = Large Modules, s1 - s4 = Small Modules ------------- = connection * In order to simplify the diagram, the connection between F and S, and the same between F1, F2, S1 and S2 are omitted. C Takahiro Fujimoto, University of Tokyo
Basic Classifications of Product-Process Architecture Modular architecture ： one-to-one correspondence between functional and structural elements
Computing
PC
Projection
Projector
Printing
Printer
PC System
Integral architecture ： Handling many-to-many correspondence Ride between the functional Fuel Efficiency and structural elements
Body Suspension Engine
Automobile
Open architecture： Closed architecture： C Takahiro Fujimoto, University of Tokyo
“mix and match” of component designs across firm mix and match only within a firm
Three Basic Types of Product Architecture (1) Closed-integral , (2) Closed-modular, (3) Open-modular Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle machine tools
Closed
game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Closed-Integral Architecture (Car)
Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle Closed
machine tools game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Closed-Modular Architecture (Mainframe Computer)
Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle Closed
machine tools game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Open-Modular Architecture (PC)
パソコンの写真を貼 り付ける Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle Closed
machine tools game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Closed-Integral Architecture (unit-body)
Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle Closed
machine tools game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Closed-Modular Architecture (Body-on-Frame, or Truck-type)
Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle Closed
machine tools game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Quasi-Open-Modular Architecture? (Chinese local makers)
Figure 6 Basic Types of Product Architecture Integral small cars
Modular
mainframe computer
motorcycle Closed
machine tools game software compact consumer electronics
LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software
C Takahiro Fujimoto, University of Tokyo
internet
The Architecture - Capability Framework 1
Design-Information View of Manufacturing
2
Organizational Capability -- Controlling Design Flows
3
Performance Measurement -- A Multi-Layer Approach
4
Product-Process Architecture
5
Capability-Architecture Fit -- Explaining Competitiveness
C Takahiro Fujimoto, University of Tokyo
5 Hypothesis: Capability-Architecture Fit at National Level A group of firms in the same country or region, facing similar environmental constraints, national-regional institutions, demand patterns or other forces specific to a particular geographical area may develop similar types of organizational capabilities Products with the architecture which fits this organizational capability tend to demonstrate competitive advantage (-- if not profitability) Figure 6 Basic Types of Product Architecture
History matters
Integral small cars
Modular
mainframe computer
motorcycle Closed
game software compact consumer electronics
machine tools LEGO (building-block toy)
personal computer (PC) Open
bicycle PC software internet
C Takahiro Fujimoto, University of Tokyo
Ratio of Export and Integral Architecture Index Scatter chart(1) （Regression Equation Number 1 assembly products：52sample）
Ratio of Export and Integral Architecture Index Scatter chart（assembly products：52sample） 100.0% 90.0% 80.0%
Ratio of Export
70.0% 60.0% 50.0% 40.0% 30.0% Regression Curve
20.0% 10.0% 0.0% -3.000
-2.500
-2.000
-1.500
-1.000
-0.500
0.000
0.500
Week Integral Architecture Index Strong Ratio of Export
C Oshika and Fujimoto, MMRC, University of Tokyo
1.000
1.500
Ratio of Export and Integral Architecture Index Scatter chart(2) （Regression Equation Number 4 Raw Materials products：43sample）
Ratio of Export and Integral Architecture Index Scatter chart（Raw Materials products：43sample） 100.0% 90.0% 80.0%
Ratio of Export
70.0% 60.0% 50.0% 40.0% 30.0% 20.0%
Regression Curve
10.0% 0.0% -2.500
-2.000
-1.500
-1.000
-0.500
0.000
0.500
1.000
Week Integral Architecture Index Strong Ratio of Export
C Oshika and Fujimoto, MMRC, University of Tokyo
1.500
2.000
Ａｘｉｏｍａｔｉｃ Ｄｅｓｉｇｎ ａｎｄ Ｄｅｓｉｇｎ Ｐｒｏｃｅｓｓ
FR*
A
DP
⎡ FR 1＊⎤ ⎡ a 11 a 12 ⎤ ⎡ DP1 ⎤ =⎢ ⎢ ⎥ ⎢DP ⎥ ＊⎥ a a 22 ⎦ ⎣ 2⎦ ⎣ FR 2 ⎦ ⎣ 21 ⎧ FR1＊ = a 11 ⋅ DP1 + a 12 ⋅ DP2 (1) ⎨ ＊ (2） ⎩ FR2 = a 21 ⋅ DP1 + a 22 ⋅ DP2
Suh
13 C Okuma and Fujimoto, MMRC, University of Tokyo
Axiomatic Design (Suh) and Product Architecture
Modular Architecture
A＝
⎡a11 0 L 0 ⎤ ⎢0 a ⎥ 22 ⎢ ⎥ ⎢M ⎥ O ⎢ ⎥ 0 a mm ⎦ ⎣
Integral Architecture
A＝
⎡ a11 ⎢a ⎢ 21 ⎢ M ⎢ ⎣a m1
a12 L a1m ⎤ ⎥ a 22 ⎥ ⎥ O ⎥ a mm ⎦
9 C Okuma and Fujimoto, MMRC, University of Tokyo
2-Stage Design Process Model
(1) Initial Point
0 1
∧
∧
DP ( a 11 ~ a 12 , FR 1 , FR 2 ) 0 2
∧
∧
DP ( a 21 ~ a 22 , FR 1 , FR 2 )
Try-and-error Coordination
(2) Optimal Point
DP1* ( a 11 ~ a 12 , FR1 , FR 2 ) DP2* ( a 21 ~ a 22 , FR1 , FR2 ) 14
C Okuma and Fujimoto, MMRC, University of Tokyo
Try-And-Error Coordination FR FR2
* DP
FR1
DP2
* DP1
16 C Okuma and Fujimoto, MMRC, University of Tokyo
Design-Based Comparative Advantage (1)
Products may be Designed Where Organizational Capability and Product Architecture Fit
(2)
Products may be Produced Where Products are Designed (Scale Economy and Product Differentiation)
or
Where Organizational Capability and Process Architecture Fit or Where Products are Sold (Production Located in the Market)
Design Matters When Policy Makers Choose Industries to be Promoted C Takahiro Fujimoto, University of Tokyo
Predictions on Architecture-based Comparative Advantage Japanese firms -- integration capability More competitive in products with closed-integral architecture. based on integration-based manufacturing capability Chinese firms – mobilization capability More competitive in labor-intensive products with open-modular (or quasi-open) architecture Korean (large) firms – concentration capability More competitive in capital-intensive products with modular architecture (moving toward integral?) ASEAN firms – labor-retaining capability?? More competitive in labor-intensive products with closed-integral architecture? U.S. firms – conceptualization capability More competitive in knowledge-intensive products with open-modular architecture European firms – expression capability More competitive in closed-integral products based on brand-design-marketing capability C Takahiro Fujimoto, University of Tokyo
Architectural Geopolitics: A Prediction in the Pacific Region Integral Axis
Japan
Korea Modular Axis
China
Taiwan
ＡＳＥＡＮ
C Takahiro Fujimoto, University of Tokyo
ＵＳ
Trade Pattern of Steel Products among Korea, China and Japan (in Mil. Tons)
China Zinc coat Steel sheet, Coldrolled, Hot6,351 rolled Steel, etc.
2,737
’02년 130
1,208 1,924
Japan
Korea 8,722 Zinc coat Steel sheet, Coldrolled, Hotrolled Steel, etc.
C Fujimoto, Oh and Ge, University of Tokyo
Zinc coat Steel sheet, Coldrolled, Hotrolled Steel, etc.
Variety of Steel Sheets for the Automotive Applications
Outer panels
Door outer, roof, front fender, side panel outer, etc.
Inner panels
Door inner, roof side inner, side sill inner, floor, wheel house inner, etc.
Structural parts
Front/rear side member, front/rear cross member, sheet rail frame, bumper reinforcement, door impact beam, etc.
Underbody parts
Suspension member, suspension arm, disc wheel, etc.
Case 2: Surface Treatment Steel for Automobile’s Outer Panel Function
Surface Appearance
Corrosion Resistence
Converter
○
○
Secondary refining
○
○
Continuous casting
○
○
Hot Rolling
○
○
Pickling
○
Cold Rolling
○
○
○
Continuous Annealing
○
○
○
○
○
○
Continuous Galvannealing
○
○
○
○
○
○
Process
Dent Resistence
Formability
Weld ability
○
○
○
○
○
○
Paint ability
Dimensional Accuracy
Rigidity
○
○
Iron Making
○
Integral Architecture Index = 0.48 = 33 ÷(9X8) C Ge and Fujimoto, University of Tokyo
Relatively integral
Case 3 Cold Rolled Steel for Inner Panels of Automobile
Function Process
Surface Appearance
Corrosion Resistence
Dent Resistence
Formability
Weld ability
Paint ability
Dimensional Accuracy
Rigidity
○
○
Iron Making Converter
○
○
○
Secondary refining
○
○
○
Continuous casting Hot Rolling
○ ○ ○
Pickling Cold Rolling
○
Continuous Annealing
○
Integral Architecture Index = 0.23 = 15 ÷(8X8) C Ge and Fujimoto, University of Tokyo
○
○
Relatively modular
Implications to Japanese Industrial Policies The post-war Japanese industrial policy tended to be oriented to “full set” industrial development. But this policy often meant protective industrial policies. It has become unrealistic to maintain the full-set industrial policy The government has to infuse strategic thinking into its industrial policy by discerning strength and weakness of the Japanese firms. Capability-architecture framework may help this initiative. Industrial policy-makers need to select sectors with good capabilityarchitecture fit, identify best-practice firms in such sectors, establish alignment between the industrial policy and the firms’ best-practice, and stimulate capability-building competition (not only price competition). That is, shift to “front-runner-oriented industrial policy” C Takahiro Fujimoto, University of Tokyo
Reference •
Asanuma, B. (1989). “Manufacturer-supplier relationships in Japan and the concept of relation-specific skill,” Journal of the Japanese and International Economies, Vol. 3, pp.1-30.
•
Baldwin, C. and Clark, K.B. (2000). Design Rules, MIT Press
•
Clark, K.B. and Fujimoto, T. (1991). Product Development performance, Harvard Business School Press, Boston.
•
Fujimoto, T. (1999). The Evolution of a Manufacturing System at Toyota (OUP)
•
Fujimoto, T. (2007). Competing to be Really, Really Good, I-House Press, Tokyo.
•
Ohno, K., and Fujimoto, T., ed. (2006) Industrialization of Developing Countries: Analyses by Japanese Econmists, National Graduate Institute for Policy Studies
•
Ulrich, K. (1995). “The role of product architecture in the manufacturing firm,” Research Policy, Vol. 24, pp. 419-440.
•
Womack, J., et al., The Machine That Changed the World (Rawson)
