Merging Kaizen, Monozukuri and Total Quality Control

Could you give us your point of view on why Japan is still dominating when it comes to the high technology field and the role that Monozukuri plays within it?

Collaboration and cooperation between small and large companies are characteristic of Japan; this relationship benefits both parties to further develop and grow. Our company was founded in 1929 and at that time we were engaged in refining fish oils, later developing our technology applied to the automotive chemical sector.

Our main eight technologies – which are emulsification, water solubilization, oil solubilization, dispersion, solubilization, oil coating, powderization, and surface modification technology – have been developed thanks to the dedication and effort of the R&D department. In terms of IoT, Big Data and Industry 5.0, Japan has been lagging behind so we are trying to install these and other cutting-edge technologies.

We have absorbed, improved, and implemented the Total Quality Control (TQC) standards that came from the USA. Toyota was the pioneer in this field of TQC and then SMEs took it as an example to improve their systems always with the central mindset of achieving the best quality for customers and developing a mutually beneficial relationship.

From Japan we have imported foreign elements and adapted them to our culture, for example, TQC, which was imported from the US and is now present in all the organizational structures of Japanese companies, and KAIZEN, which means to strive to improve the Lean Manufacturing formula.

These were the principles governing before but now with globalization and digitalization, we are entering a new era that requires a different set of principles. More and more factories are implementing IoT, and as automatization efforts progress, we are shifting to production automation.

It is no longer only to what extent companies can automate themselves but also at what level they can introduce software to turn companies into efficient, self-managed systems.

Could you please talk to us about the role that R&D plays within your company?

We have a very large R&D network, we establish relationships with universities, with important customers, and with research facilities in Japan.

Among Japanese companies, there is a culture of sharing knowledge that fills me with pride, through briefings and presentations, or discoveries and information of a specific field. We have been holding the study sessions, especially in R&D, with other firms as well.

Could you please give us an overview of your products and if you have any upcoming products that you would like to share with us?

At the moment we are directing our efforts towards the creation of products aimed at the health and well-being of our customers in addition to always bearing in mind our environmental commitment.

At the beginning of our company in the automotive sector, we created a cleaning product for car engines as well as the product that is used in gas stations to clean cars on the spot. Now we have gone further and created a coating agent that allows us to keep cars clean longer. This product was already being used in China as word of mouth spread before we launched. Thus we were contacted to get it up and running immediately.

We are present in many different types of industries from automotives and air conditioning, to cosmetics and the food industry.

Our contribution to the food industry is vital for us; 20% of our business in the food industry is the processing of functional foods. This field is booming as we are more concerned about our health. There are foods that have ingredients our body cannot absorb or are still in insoluble state; we process water-insoluble materials to soluble formulations through emulsification technology. We also use this technology in the field of cosmetics so that the ingredients are better absorbed by the skin. The pharmaceutical field is also a key one for our expansion.

We do not distribute our products as an ODM to larger firms but rather we produce the technologies and the processes behind their products. We do not focus on the sales and marketing side of the company, we invest our know-how and energy in mid-line processing.　

The functional food market is expected to grow not only in Japan but also overseas. Could you please talk to us about this trend and how you plan to take advantage of this growth in the overseas market?

Previously we have used exhibitions to expand our name in big cities like Las Vegas or Chicago. Now in the age of digitalization, we have the possibility to expand online using the public relations of the network.

In the field of exhibitions, the way to establish links with other companies is to explore and present your products whenever possible. Now with Covid-19, the circumstances are different and we must build up something new. What we have currently done is to create some name cards in which you can find a QR code that directs the customer to an exhibition of our products online.　

On a national level in Japan, your distribution channel is the large companies with which you have agreements, also with companies in China and the USA. When it comes to the overseas market what is your channel of distribution, do you use local distributors?

One of the world’s most famous glass manufacturer based in the US provides materials to major companies around the world. They contacted us to find out if they could use our cleaning agent product. Well-known companies using our agent for their products, gives us a boost towards our goals.

There is a co-dependent relationship in terms of distribution with these large companies because wherever they decide to produce, we will go and set up our office there, as well. In that sense, the history of our company is to be able to leverage the Monozukuri process of Japan and be able to take it with us to any markets we go to.

Could you please tell us what role co-creation and collaboration plays for your company and if you are actively looking for new partners here in Japan or overseas?

The truth is that they play a very important role for SMEs, and we benefit greatly from collaboration with large companies here in Japan. It is the large companies that decide what the next steps will be in terms of R&D, so it is in the SMEs' interest to have access to this information.

On the other hand, looking back to the past, we tried to establish a relationship with a partner in Germany though it was complicated and didn't work well. As the company was small like us, it was challenging. Finding new partners in Japan and overseas is one of our priorities.

Throughout your history you have been able to diversify into different industries. Looking to the future of your company, could you tell us what is your midterm strategy to continue your corporate growth?

Our midterm strategy is about developing a solid organizational structure within our company where there is an atmosphere of closeness and comfort with the employees and their productivity grows. Our ideal structure is one where every member of the company is audible and taken into account, I am a director and provide the constant vision for the company but everyone has a say, everyone can act on it.

My aim as the president is to lead the company into any fields that offer us growth and business opportunities. We are currently focusing our efforts in the field of functional electronic materials and functional foods.

The strategic communication within the company is excellent. We have monthly and annual newsletters. Monthly we talk about the direction the company is taking, fields where we would like to introduce ourselves. While in the annual one, we go further and talk about the corporate philosophy, the main goals we strive for along the following year, new products, and so on.

Regarding the international strategy, what is the role that the overseas markets play within your company? Is there any key geographic region that is a key element for the future of your company?

I believe that in terms of our international strategy we will continue to focus our efforts on those places where the cleaning agents and automotive industries are booming.

Furthermore, taking into account the example that at the moment an American company is using our company in China to sell Japanese products online, we see that we have a promising future assured if we continue on this path of collaboration.

If we were to come back in 10 years and interview you all over again what would you like to tell us, what are your dreams for the company and what would you like to have accomplished by then?

In the next 10years, I would like to take the company down a path of sustainability, doing everything we can for the environment. I see that our path will be directed by the field of health and wellness and always with a strong and promising vision.