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Cell Production and Workplace Innovation in Japan: Toward a New Model for Japanese Manufacturing?[Note 1. This paper benefited from comments of participants of the ...]
Author(s) -
Isa Katsuhide,
Tsuru Tsuyoshi
Publication year - 2002
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/1468-232x.00264
Subject(s) - business , profit (economics) , production (economics) , industrial organization , variance (accounting) , order (exchange) , marketing , scale (ratio) , economics , microeconomics , accounting , finance , physics , quantum mechanics
This article investigates the current trend toward cell production and other workplace innovations in Japan using a large–scale sampling survey of manufacturing firms and in–depth interviews with four leading electrical and electronic establishments. The quantitative analysis reveals the correlation between the use of cell production and the ratio of female to male workers and production strategy variables, as well as the positive effect of cell production on operating profit rates and ordinary profit rates. The case studies reveal the following points: First, processes and organizations have been decentralized to the degree that individual workshops move toward taking primary responsibility for customer relations, production decisions, and delivery. Corporate headquarters increasingly play a coordinating rather than decision–making role. Second, firms have steadily implemented make–to–order systems by tightening links to suppliers and customers and developing new inventory and cost–control systems. Third, firms have started to implement more performance–based personnel practices. However, considerable variance among firms is observed in complementary changes, particularly personnel innovations.