1 Japanese “Monozukuri” Culture & Global Management 2016-2017: Kyoto Univ. Japanese Culture Program Part-time Lecturer: Tetsuya Sogo - April 25, 2016 & May 1, 2017 - CEO of NTN Americas 日本の “モノづくり” 文化 と グローバル経営 2016-2017: 京都大学・日本文化研修プログラム

2 Company Name: NTN Corporation Date Founded: March,1918 Head Office: 1-3-17, Kyomachibori, Nishi-ku, Osaka-shi, Osaka 550-0003 Representatives: Hiroshi Ohkubo, President Capital: 54.3 billion yen (as of March, 2016) Fiscal term: March,31 Description of Business: Production and sales of bearings, constant velocity joints, precision equipment, and other mechanical components Employees: 24,109 (consolidated), 5,154 (unconsolidated) Sales 717.0 billion yen (consolidated), 335.5 billion yen (unconsolidated) Profit: 47.8 billion yen (consolidated), 9.1 billion yen (unconsolidated) Market Share: Bearings: Global No.3, Japan No.2 CVJs: Global No.2, Japan No.1 Corporate Profile Head Office (Osaka, Japan) （as of March,2016）

～ Course Content ～ 3

[1] Global Values, Local Success - Jan. 1, 2016 “Profile Magazine” - Power of inspired people with KAIZEN spirit How to get the maximum power from the local employees, management and executives Learning Organization with effective Middle Up/0own Management 4

5 What kind of Image do nou have for Japanese Manufacturing Culture? (TPS? 5S? KAIZEN? QC Circle?)

[2] What is Muda (Waste)? 6 What you have to achieve? How you achieve it?

How to improve? 7 IE

< Definition of Industrial Engineering > 8 “Industrial Engineering is concerned with the design, improvement and installation of integrated system of people, materials, information, equipment and energy. It draws upon specialized knowledge and skill in the mathematical, physical and social sciences together with the principles and methods of engineering analysis and design, to specify, predict, and evaluate the results to be obtained from such systems.”

9 : not onln to get practical knowledge of how things work, but also to gain the respect of nour peers. March 26, 2015: Commencement Speech at Waseda University, Japan (0epartment of Industrial & Management Systems Engineering )

2015-03-30 | PRESS RELEASE NTN'S SOGO DELIVERS COMMENCEMENT AT WASEDA UNIVERSITY TOKYO, JAPAN – In front of a crowd of graduates, parents and faculty, Tetsuya Sogo, CEO of NTN Americas Region, delivered the commencement address to the 2015 graduating class of Waseda University’s Department of Industrial & Management Systems Engineering on March 26, 2015, in Tokyo, Japan. “It is an honor to be asked to deliver the commencement address at your alma mater,” said Mr. Sogo, a 1982 graduate of Waseda. “I believe it is important to provide insights to new professionals that can help them see how the education they just received will be the foundation of a successful career.” Mr. Sogo focused his remarks on his experience in a global marketplace, and how the education he gained from the School of Creative Science & Engineering still helps him today. His main message, though, was that their education does not end with their graduation, they just need to change how they learn. “Students learn theory in the classroom. Now it is time for them to go out into the world and learn through action,” Sogo said of the speech. “Action will serve them well not only with their practical knowledge of how things work, but also gaining the respect of their peers. The sooner they can learn this, the sooner they can establish themselves as growth minded leaders.” Sogo has proven his support for this ideal through two initiatives. First, he has been establishing a Learning Organization culture at NTN in the Americas. Training and education reimbursement are available to inspire growth in all employees. Additionally, he has provided internship opportunities in all departments to help students in their education transformation. 10

[3] What is Muri (Impossible)? 11 11

12 How to improve? VE

< Definition of Value Engineering > 13 “Value Engineering is a systematic and organized approach to provide the necessary functions in a project at the lowest cost. Value Engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Also called Value Analysis (VA)”

14 14 [4] What is Mura (Instabilitn)? How to improve? Standardization

15 15 [5] What is KAIZEN/INNOVATION? - 参考文献:“ＫＡＩＺＥＮ” Masaaki Imai (1986) - ( INNOVATION )

16 16 < Ideal Pattern with Maintenance > Maintenance Maintenance Maintenance

17 17 < Ideal Pattern with Maintenance & KAIZEN >

18 18 < Ideal Perceptions of Job Functions > * Management = Maintenance + Improvement * Maintenance = Activities directed toward maintaining current technological managerial and operating standards * Improvement = Activities directed toward improving current standards = INNOVATION + KAIZEN * KAIZEN = Gradual, unending improvement = Continuous improvement

19 19 IE/VE = Management Approach KAIZEN = For All Top 0own Middle Up/0own Bottom Up * Team Activities (5S. Fish-bone, Pareto Analysis …)

20 20 < 5S > 1.SEIRI - - - - - Sorting 2.SEITON - - - - - Set in Order 3.SEISO - - - - - Shining 4.SEIKETSU - - - - - Standardizing 5.SHITSUKE - - - - - Sustaining the discipline

21 21 < Fishbone Analnsis (Example) >

22 22 < Pareto Analnsis (Example)>

23 23 < 5S> Fishbone Pareto Perfect Production ( Circle Activities ) Gemba (Bottom Up) Motivation + Skill up 6σ Y = f(x, x2 …) Staff (Top 0own)

24 24 < NTN Americas Culture Change bn “Skill Based Grade Snstem”> (established in 1995) - Conventional Wisdom - • Higher quality leads to higher costs. • Larger lots lead to lower costs. • Workers do not need to be taken into account. - NTN Americas Revolution - • Higher quality leads to lower costs. • Smaller lots lead to lower costs. • A thinking worker is a productive worker. Challenge to Conventional Wisdom (A or B A and B )

25 25 [6] Essence of Competitive Strategn Top 0own Bottom Up Strategic Positioning Operational Effectiveness Middle Up/0own Outside - In INNOVATION Inside - Out KAIZEN/INNOVATION 0o the different things 0o the things better

26 26 < Transformation > = No Guts, No Glorn!! Relentless Pursuit for Excellence!! Core Competence Core Capabilities Intellectual Properties Emotional Intelligence Knowledge

27 27 TACIT EXPLICIT Respect and full consideration to each individual employee

28 28 < NTN Corporation Philosophn > We shall contribute to International society through creating new technologies and developing new products. Networking The World With New Technology NTN Americas is: • To be a Corporate group that makes steady growth with powerful product development and market penetration. • To be a Corporate group where each employee can pursue professional growth and achieve full career potential through his or her job. • To be a Corporate group that is respected in the local and global community for doing more than pursuing its own profits.

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30 30 < Basic Concept> Corporate Philosophy Vision of NTN Americas Overall Strategies for NTN Americas Business Plan for Each Company Target for Each Employee Culture Change to “Learning Organization” MBO Consistency

31 31 [7] Inspiring Growth in People, Organization and Markets < Town Hall Meeting > - Philosophn , Vision, Strategn -

32 32 < Executive Development Program > - Kellogg -

33 33 < Leadership Academn > - Managers & Supervisors-

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36 36 Thank nou!!

37 37 (1) 何度教えても仕事を覚えない、同じようなミスを繰り返す。 (2) 仕事をやっと覚えたと思ったら辞めてしまう。 (3) 締め切りを守らない、時間にルーズ (4) 指示したことしかやらない、自発性に欠ける。逆に頼んでもいないことを 勝手な判断でやってしまう。不十分な情報や勘違いで勝手に結論を出し て進めてしまう。 (5) 残業を嫌がる。休みが多い。自分のこと優先で、会社に対する忠誠心が 低い。 [参考] 日本人出向者の現地従業員に対する不満 - ｵｸﾞﾘﾂﾘｰ・ﾃﾞｨｰｹﾝｽ法律事務所の資料から引用 - 工場の日本人出向者がよく言っていた現地の人材従業員に対する不満、フラストレーション

38 38 (６) 本人は面接で出来ると言ったのに、実際やらすとできない。 (7) 部下や後輩に自分の仕事を教えない。 (8) 現場や実務のことを良く知らないのに、管理職や専門職というだけで、 現場に合わない不適切な指示を出す。現場に 出ずに事務所でばかり 仕事をしている。 (9) ろくに仕事もできないのに給料を上げてくれと言ってくる。ダメもとで無理 な要求をしてくる。 (10) 自分のミスを認めようとしない。言い訳ばかりする。 [参考] 日本人出向者の現地従業員に対する不満 （続き） - ｵｸﾞﾘﾂﾘｰ・ﾃﾞｨｰｹﾝｽ法律事務所の資料から引用 -

39 39 (1) 会社に夜遅くまでいる。その割には日中の時間の使い方の効率が悪い。 (2) 会議の中で、ほとんど発言しない人がいる。何をしにアメリカにきている のかわからない。口数が少なく、何を考えているのかわからない。 (3) 仕事を頼むときに、as soon as possibleが多い。その時も相手の都合を 確認しなかったり、都合を聞かなかったりすることが多い。 (4) 仕事を頼んだり、意思決定を伝える時に、その理由を丁寧に説明しない。 (5) 人を褒めたり、人の努力に感謝することが少ない。 [参考] 現地従業員の日本人出向者に対する不満 - ｵｸﾞﾘﾂﾘｰ・ﾃﾞｨｰｹﾝｽ法律事務所の資料から引用 - 逆に、現地従業員の日本人出向者に対する不満、フラストレーション

40 40 (６) こんなことも知らないのかと人をばかにしたり、素人扱いする。言葉使い が乱暴、そのくせすぐにSorryと謝る。 (7) 早足で歩き、人とすれ違っても声もかけずに、人と人との狭い隙間をすり 抜けようとする。 (8) 社内昇進には、仕事の実力よりも、遅刻、欠勤をせずに、素直に長時間 働く人が優先されることが多い。 (9) 職務範囲外の仕事を人にどんどん頼みながら、給与の査定時にはその ことをきっちりと考慮してくれない。 (10) Yesと言われたので了解したと思っていたが、そうではなかった。 [参考] 現地従業員の日本人出向者に対する不満 （続き） - ｵｸﾞﾘﾂﾘｰ・ﾃﾞｨｰｹﾝｽ法律事務所の資料から引用 -

(As of April 1, 2018) 41