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H&M OPERATIONS MANAGEMENT
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Financial Discipline
When discussing the concept of “Just In Time” (JIT), we should first examine a key moment in Toyota’s history. In 1950, Toyota was reorganized into two main entities: a Sales company and a Manufacturing company. Let’s take a closer look. 1️⃣ Impact on manufacturing The separation was sparked by Toyota's financial crisis. One issue was the rollout of monthly installment sales. As Japan shifted to a market economy after WWII, automobiles became a free-market commodity. Toyota a
hidet77
Apr 63 min read


Standard Work Bulletin Board 1922
I was reading an old 1922 article about a factory in Osaka, Japan, that had a standard work bulletin board. This shows that standard work bulletin boards have been valued for many years, well before Taiichi Ohno. To evaluate the enduring relevance of standard work bulletin boards, I will analyze the article in greater detail. The company, Dainippon Boseki Co., Ltd. (now Unitika), used a standard work bulletin board. The board showed workers, roles, key points, and backups. Fo
hidet77
Mar 302 min read


Checklist
It’s Not a Task List, It’s a System In a complex world, trying to remember every repeated step under pressure all the time is impossible. That’s why the most advanced organizations don't rely on "working harder" or "paying more attention." They rely on the checklist. Is a checklist a perfect solution? Absolutely not. Does that mean we should abandon them? Abandoning them and living with forgetfulness and mistakes is impossible. Just because it is not perfect, abandoning it an
hidet77
Mar 233 min read


Dandori
Changeover. In Japanese, it’s Dantorikae 【段取り替え】 or Dandori 【段取り】 for short. This word has always puzzled me — not because it’s hard to say, but because of what it actually means. Most people involved in manufacturing know the word as a technical term: the process of switching a machine or production line from one product to another. However, the word itself has a much richer history, one that dates back to classical Japanese theater, Kabuki. Once you understand its origin, y
hidet77
Mar 164 min read


Management mistake
We often hear statements like “the operator’s mistake is not the root cause.” But why do we only focus on the operator’s mistake? We tend to avoid discussing management’s mistakes or act as if those mistakes don’t exist. Just because we don’t acknowledge them doesn't mean they’re not there. In reality, there are many examples. Yet, these mistakes pretend they didn’t happen; instead, we blame others—“Oh, the market,” or “the government,” etc. Despite spending millions of dolla
hidet77
Mar 93 min read


Shitsuke 躾
The fifth ’S’ of the 5S is Shituke. “Shitsuke” should be translated as discipline. By the way, for some reason, in the English version of “Workplace Management,” by Taiichi Ohno, discipline disappears from the title of the chapter that talks about 5S. The original Japanese version has Shitsuke in the title. According to Merriam-Webster, discipline is defined as follows; 1-a. control gained by enforcing obedience or order b. behavior in accordance with rules: orderly conduct c
hidet77
Mar 22 min read


Spiritual Control
When it comes to management by objectives and management by policy, there is concern that top management will treat them too lightly, simply setting objectives and policies, and will fall into the trap of spiritual control, telling employees to “work hard, work hard,” rather than adopting scientific management. むしろ目標管理、方針管理というと、トップは安易に考えて目標や方針だけ示してあとは頑張れ頑張れという精神的管理に陥り、科学的管理になってこない心配がある - Kaoru Ishikawa How often do we see this “spiritual control” when telling an employee to w
hidet77
Feb 233 min read


Pillars
The two “pillars” of the Toyota Production System are Jidouka and Just-in-Time. “Pillars.” Because Taiichi Ohno explained this in such a way, we see visuals of the house of TPS. It is essentially pulled by the perception of the “pillar” and resembles a Greek temple. The trend continues: you will see something like eight (or more) pillars of TPM, etc. There is a perception that the more pillars we have, the better our ‘temple’ looks. A thought. In Japanese Shintoism, a pillar
hidet77
Feb 173 min read


“Don’t use money on Muda.”
“Don’t use money on Muda.” A common phrase we use in Japan. There are two words we use to describe such thinking. The first is “Kenyaku【倹約】.” This word’s subject is money. This activity reduces Muda spending and uses the savings for something truly necessary. One of the most famous figures in Japanese history associated with “Kenyaku” is the first Shogun of the Tokugawa shogunate, Ieyasu. He was known for not spending money. For example, when he was Shogun, a piece of toilet
hidet77
Feb 93 min read


Andon is not an emergency brake.
Andon is not an emergency brake. The other day, I was riding the Subway. In this subway, there is an emergency sign. According to this sign, we should not pull the emergency brake in case of a fire, a medical emergency, or a police situation. I am not sure when we should pull it. The fact is, someone does pull this brake, since news of a subway stop due to the emergency brake is common. In case of an emergency, we should contact the train crew. That is the message of this sig
hidet77
Feb 23 min read


Sustaining Costs
Masaya Hanai, the fourth chairman of Toyota, delivered a speech on cost reduction. The speech was published in the September 1978 issue of Kansai Keikyou magazine. In it, he emphasizes the importance of sustaining costs (not the cost of sustaining). Hanai highlights four pillars of cost reduction. Target costing Investment planning for equipment Sustaining cost Kaizen of cost Of the four, Hanai states that maintaining costs at the current level is the basis for all other acti
hidet77
Jan 263 min read


Arguments
Masaya Hanai. The fourth chairman of Toyota. Not necessarily the friend of Taiichi Ohno. Or the rival. Both were coached by Taizo Ishida . Both became directors of Toyota in 1959. Hanai was responsible for finance, accounting, and purchasing. Ohno was responsible for production. And many saw the two arguing¹. But these arguments were important. This is not resistance. Such internal competition strengthens the organization. One of the arguments between Ohno and Hanai happened
hidet77
Jan 194 min read


Profit-Making IE
“Profit-making Industrial Engineering.” That’s how Taiichi Ohno described the Toyota Production System. “Profit-making”? What’s so special about this? In the end, we are all seeking profit? The Japanese word Taiichi Ohno used here is “Moukeru,” which has a different meaning. Those meanings are; Prepared. Developing future leaders. Taiichi Ohno called the Toyota Production System “Profit-making Industrial Engineering.” What is the difference between traditional IE and the Toyo
hidet77
Jan 123 min read


Year of Fire Horse
Happy New Year! 2026 is the Year of the Fire Horse. The Chinese Zodiac indicates high energy and many movements this year. This post is about the horse. Horses came to Japan around the 4th century. They became a critical resource for the country, serving as essential military and civilian assets. You might imagine a samurai riding a horse from movies, but those are Thoroughbreds. Japanese horses, until the arrival of Thoroughbreds, were fat and small. A purebred of such a hor
hidet77
Jan 52 min read


“Repetition, Continuation, Conscientious”
“Repetition, Continuation, Conscientious” feels good. Sinsuke Kita (Haikyu!) Manga. A critical part of modern Japanese culture. The topics manga covers are broad, and some feature fascinating themes. The quote above is from Sinsuke Kita, a character in the manga “Haikyu!” “Haikyu!” is a volleyball manga and one of the best sports manga. This character is the captain of the opposing team to the main characters and was the semi-champion of the previous tournament. The team is f
hidet77
Dec 29, 20253 min read


Muda of Transportation (?)
On LinkedIn, you see many posts about Muri, Mura, and Muda that use a truck as an example. When the truck's capacity is 1.5t, always load 1.5t. That is push. What matters is market needs. Loading the truck to full capacity while ignoring market needs is a push. This is the same logic as production. Consistently producing at a process's maximum capacity is a push. We need to pace production to market demand. Muda of Transportation. Many Japanese words can be translated as 'tra
hidet77
Dec 22, 20253 min read


Copy
“Copy Toyota.” “Don’t copy Toyota.” There are posts on this topic. For the Japanese, “copy” or “imitate” is closely associated with learning. One of these words is “Manabu 【学ぶ】.” It means to study. You get coached or learn from your experiences. This word comes from “Mane-bu,” which means to copy, mainly just the motion or behaviors. “Maneru 【真似る】” is another word that comes from the exact origin, meaning to simulate, copy, imitate, follow, or emulate. There is another word c
hidet77
Dec 15, 20253 min read


“If you are prepared, you will have no worries.”
“If you are prepared, you will have no worries.” A saying in Japan, originally from China. Question: As a manager, how much of your work is about preparation? The morning begins with the daily production meeting. Each team reports on their KPIs from the previous day. During the meeting, you experience a Déjà vu, asking yourself, “Didn’t we have this problem before?” But you look around, and nobody seems concerned. You don’t want to disrupt the atmosphere. Besides, this is wha
hidet77
Dec 8, 20253 min read


“The best good is like water.”
“The best good is like water.” Laozi Another quote from Laozi. It continues: “water helps everything, doesn’t conflict with anything, and flows to the lowest place.” This phrase embodies Laozi's philosophy. While this philosophy is known for accepting things as they are and for its passive nature, we can apply it in various ways. 1️⃣ Standardized workf low like water “People don’t follow the standardized work,” is a comment we often hear. Responding to such comments frequentl
hidet77
Dec 1, 20253 min read


A journey of a thousand miles begins with a single step.
"A journey of a thousand miles begins with a single step.” Laozi The wisdom of Laozi remains valuable in many ways. How do you interpret his teachings? The original lesson of this phrase is as follows; “Even if something is going to be a big problem, it is easier to deal with it early.” This is a surprising but original lesson. It’s because the original phrase doesn’t say “single step.” Instead, it says “beneath the foot.” 【千里之行始于足下】 So, to solve a big problem like a thousand
hidet77
Nov 24, 20253 min read
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