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31 March 2026

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<Index>
1. Insight: Thoughts on the Management Philosophy of Various Japanese Companies

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1. Insight: Thoughts on the Management Philosophy of Various Japanese Companies
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In the previous edition, I explained the term "Shain Kagyō" (a mindset in which employees see themselves as the manager of their own business) passed on by Konosuke Matsushita. In my opinion, if this mindset can be thoroughly instilled in all employees at a company, it will deliver significant benefits for QC activities and the like.

I imagine that most readers of this column are familiar with Japanese manufacturing. In Japan, the phrase “the next process is the customer” is an important part of the quality control mindset.
When I joined Panasonic after graduating from university, I was involved in hands-on work on a manufacturing line at a factory for about half a year. I was aiming for a job in marketing, but at Panasonic back then, it was mandatory to first gain a thorough understanding of the spirit of manufacturing through practical experience, regardless of your future position.

I believe this approach is still practiced today at most companies in Japan’s manufacturing sector, whether large, medium, or small. What I learned at the manufacturing site is the idea that the “next process is the customer.”
On manufacturing lines and the like, the goal is to deliver the finished output of the work process for which you are responsible to the person who performs the next process in a way that facilitates their work. Naturally, that means ensuring there are no defects, but it also requires you to demonstrate consideration and ingenuity in various ways, such as cleaning things before passing them on if they are dirty or always placing them facing a certain way to make the next person’s job easier.
I remain convinced that this mindset is the same as shain kagyo, which embodies the management philosophy of benefiting three parties for both colleagues and superiors.

This approach is not limited to manufacturing lines. There are various processes and departments related to manufacturing at companies, including R&D, planning, design, purchasing, production, inspection, and sales, as well as many indirectly related departments. The output of each process is the input for the next process. And ultimately, a company’s output－the products it ships and the services it supplies－is the input for customers.
As an example, designers who are dedicated to shain kagyo will aim to produce drawings that do more than simply meet customers’ needs; they will also satisfy the needs of the departments who handle the next processes, such as creating designs that facilitate manufacturing at production sites or coming up with solutions that facilitate repairs when malfunctions occur.
I
f the idea that the “next process is the customer” is realized across a company based on the spirit of shain kagyo, it should naturally lead to customer satisfaction with the company’s products and services as well as a market-in approach.

To be continued in the next edition.

Rikio Suma, Author

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