#Fuji Hydraulic #Shikigaku #KAIZEN Institute #Maebashi

Fuji Hydraulic Equipment's Successful Transformation

Fuji Hydraulic Equipment Co., Ltd., based in Maebashi, Gunma Prefecture, has made a remarkable stride in organizational reform, facilitated by the innovative approaches of Shikigaku, Inc. This transformation has caught the attention of the globally recognized KAIZEN Institute, who recently conducted an observational visit to assess the outcomes of the reform.

Background: Initial Challenges Faced by Fuji Hydraulic Equipment

Fuji Hydraulic Equipment specializes in developing, manufacturing, and selling automated machinery for various industries, primarily serving the printing and binding sector. Despite its extensive product line—including vertical, drop, and horizontal stacker bandlers, as well as high-speed stackers—Fuji was grappling with several pressing challenges:

• - Financial Pressures: The company faced a significant debt load that threatened sustainability.
• - Technology Transfer Issues: High employee turnover hindered the accumulation of specialized know-how among skilled workers.
• - Lack of Management Clarity: A few technicians monopolized operations, leading to chronic delays and losses.
• - Organizational Opacity: Unclear criteria for task completion lowered employee morale.
• - Inadequate Information Sharing: Difficulty in locating similar designs often resulted in unnecessary redesigns.

To address these issues, Fuji began implementing Shikigaku's organizational management theories in March 2022, marking the onset of serious reform efforts.

Investment Background

The decision for the Shikigaku 1st Fund to invest in Fuji was primarily informed by the company's exceptional technical capability and a wealth of experience. However, reliance on outdated practices and specific technicians led to operational inefficiencies that drained resources. During management interviews, Fuji's leadership demonstrated a positive and open attitude towards organizational reform, prompting confidence in a beneficial partnership with Shikigaku.

Reform Goals and Achievements Post-Investment

The Shikigaku 1st Fund aimed to enhance Fuji's corporate value through organizational and operational improvements. The outcomes significantly exceeded initial targets:

• - Sales Revenue Increased by 46%
• - EBITDA Saw Approximately a Fourfold Increase
• - Average Salaries Rose by About 20%

These results underscore the success of the strategic reform initiatives.

Implementation of Shikigaku's Reform Process

Through Shikigaku's hands-on support, Fuji Hydraulic Equipment launched several initiatives, including:

• - Management Training: Over 50 hours of one-on-one management training for executives.
• - Establishment of Clear Rules: Unified guidelines on greetings, attire, and communication were adopted to reshape corporate culture.
• - Clarification of Responsibilities: Roles and authority were delineated for optimized business operations.
• - Digital Transformation (DX) Promotion: Transition to cloud-based technology for enhanced knowledge sharing and preservation.

These measures greatly improved management structures, fostering a fairer and more efficient workplace environment.

KAIZEN Institute's Observational Visit and Feedback

The KAIZEN Institute's representatives toured Fuji’s facilities to witness the changes brought by the implementation of Shikigaku's theories. Following the visit, several commendations were made:

• - “The monopoly on know-how through consistent production is commendable.”
• - “The factory is organized, and maintenance is maintained even on older machines.”
• - “The integration of DX and manual processes is advantageous.”
• - “Courage to change is paramount for recovery from crisis.”
• - “The management team exhibits openness and transparency—excellent!”

Numerous questions were posed, and discussions ensued on essential topics:

• - Skill Loss due to Veteran Departures: The response indicated plans to digitize expertise and shift dependency from individuals to organizational knowledge.
• - Quality-Cost Balance: Emphasis was on maintaining high quality before expanding cost efficiency.
• - Rule Setting and Operation: Suggestions were made to establish simple, easily adhered to rules, refining them based on factual outcomes.

The KAIZEN Institute expressed significant interest in Shikigaku's reform methodologies, recognizing their effectiveness as a model for revitalizing Japan's manufacturing sector.

Results Post-Shikigaku Integration

The integration of Shikigaku's principles has yielded tangible results at Fuji Hydraulic Equipment:

• - Cultural Improvement: Clarity in roles and responsibilities has expedited decision-making processes.
• - Increased Productivity: The push for digital transformation has streamlined information sharing, reducing unnecessary redesigns.
• - Asset Development of Knowledge and Skills: Storing technical data on the cloud promotes sustainability and resource sharing within the organization.

Future Outlook

Fuji Hydraulic Equipment plans to continue leveraging Shikigaku's theories for ongoing organizational enhancements. Shikigaku aims to broaden its support across various sectors, thereby contributing to the enhancement of Japan's industrial competitiveness.

Fuji also invites KAIZEN Institute representatives to participate in their morning radio exercises, celebrating collaboration and commitment to well-being.

About Shikigaku

Shikigaku, the field of