Structure of the Japanese Production System: Elusiveness and Reality

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Structure of the Japanese Production System: Elusiveness and Reality Yoshiji Suzuki Faculty of Commerce, Doshisha University, Genbu-cho, Kamigyo-ku, Kyoto 602-8580, Japan. E-mail: [email protected]

Theories of the Japanese production system (JPS) recognize a definite commonality in the production practices of Japanese companies, with such matters as the quality and productivity of these practices often being explained in terms of the competitive strength of Japanese companies. Various arguments have cast doubt upon the validity of such notions. Toyota special theory argues that it is precisely this special element that is the essence of its own strength, and takes a negative view of JPS approaches that assume these production practices to be common to other Japanese companies. Since the emergence of lean production theories, there has been much keen debate on JPS from various viewpoints, each providing a significant contribution in its own right. However, in terms of a precise understanding of JPS in its entirety, lean production theories, Toyota special theory and indeed various other approaches have generally failed. By demonstrating this point, the present paper seeks to clarify such matters as the kind of production system in terms of which JPS should be understood, the reasons why JPS is difficult to grasp, and indeed whether there is any essential difference between JPS and the Toyota Production System. Asian Business & Management (2004) 3, 201–219. doi:10.1057/palgrave.abm.9200088 Keywords: Japanese Production System; Toyota Production System; JIT; Japanese Work Organization; Jidoka

Introduction The conceptualization of the Japanese Production System (JPS) is valid only when a certain commonality in production practices can be found in Japanese companies, and their competitive strength in such matters as quality and productivity can be well explained from those production practices. However, recent arguments have cast some doubt upon the validity of such conceptualization. According to Spear and Bowen (1999), while many companies both in Japan and elsewhere have tried to adopt the Toyota Production System (TPS), a model for JPS, few have managed to replicate Received 25 August 2003; revised 24 November 2003; accepted 8 December 2003

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Toyota’s performance. They further pointed out that Toyota’s own success in transplanting TPS worldwide emphasized the need to discover its TPS secret. TPS was thus differentiated as something special, essentially distinct from similar practices (or JPS) that may have been adopted in other Japanese companies. Japan too has seen the appearance of theories emphasizing Toyota’s particularity, and criticizing the validity of the JPS concept (Satake, 2000). Thus, it is necessary here to examine whether the idea that TPS is indeed unique, with its implied negative view of JPS, is indeed valid. It was the Lean Production System (LPS) that was originally the starting point for all interest in and discussions of JPS outside Jap