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0 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc. Kevin King Head of CAM & PDG Fujitsu Network Communications Kaizen Culture: A Continuous Improvement Story of Manufacturing, an Earthquake, and Me 26 March 2021

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Page 1: Kaizen Culture - University of North Texas

0 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Kevin KingHead of CAM & PDG

Fujitsu Network Communications

Kaizen Culture:A Continuous Improvement Story

of Manufacturing, an Earthquake,

and Me

26 March 2021

Page 2: Kaizen Culture - University of North Texas

1 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Fujitsu – Who We Are

Page 3: Kaizen Culture - University of North Texas

2 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Corporate Facts & FiguresThe Global Fujitsu Family

$50B

78,000

#7

Page 4: Kaizen Culture - University of North Texas

3 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Corporate Facts & FiguresThe Global Fujitsu Family

• Operate in over 100

countries

• Employ over 140,000

people

• Run more than 160

data centers

WORLDWIDE, WE:

President: Takahito

Tokaya

Chairman: Tatsuya Tanaka

EST: 1935

Stock Exchange

Listings: Tokyo &

Nagoya

(Code: 6702)

HQ:

TOKYO, JAPAN

$2.6B

annual R&D

expenditure

Page 5: Kaizen Culture - University of North Texas

4 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Fujitsu Network Communications

Page 6: Kaizen Culture - University of North Texas

5 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

FNC Corporate Overview

◼ Name: Fujitsu Network Communications, Inc.

◼ Headquarters: Richardson, TX USA

◼ President: Doug Moore

◼ Employees: 1,175 (FNC); 497 (TrueNet )

◼ R&D: Richardson, TX

◼ Facilities: Factory, NOC*, ATSC**, ASIC***

◼ Fujitsu Group Companies on campus: FAI (IT), FLA(Laboratory), FDK, Denso-TEN

◼ Land: 70 Acre (283K ㎡)

◼ Manufacturing Floor: 79,806 ㎡

Page 7: Kaizen Culture - University of North Texas

6 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Customers and Target Markets

Additional

100+

Additional

200+

Additional

500+

ICP / DCO

Verticals

Communications Service Providers

Page 8: Kaizen Culture - University of North Texas

7 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Kevin King – Who I Am

Page 9: Kaizen Culture - University of North Texas

8 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Career Development

Sales

Operations

1993 1994 1995 1996 1997 2001

Sales intern –

WFAA (ABC-TV)

Industrial Distribution

Logistics intern

Technical

Testing intern

Inventory

Analyst

Operations

Planner

2006

Mgr –

Inventory /

Distribution

2009

Sr Mgr –

Operations

Planning

2011

Sr Program

Mgr –

Fujitsu

Telecom

Europe

2013 2017

Sr Mgr –

Demand

Management

Telecom Management

Finance

Head of CAM

Page 10: Kaizen Culture - University of North Texas

9 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Differences Between Sales & Operations

◼ An afternoon of golf…

◼ Is not considered critical job-skill development

◼ Turns out forecasting…

◼ Has little to do with the weather

◼ We actually have to buy our own meals

◼ Simply having a PowerPoint presentation…

◼ Does NOT mean a product is ready to ship

Sales

Manufacturing

Page 11: Kaizen Culture - University of North Texas

10 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

The Kaizen Philosophy

Page 12: Kaizen Culture - University of North Texas

11 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

FNC Manufacturing Strategy

◼ The Fujitsu manufacturing philosophy is based on the kaizen philosophy of continuous improvement

◼ Kaizen means "change for the better". It is a Japanese business philosophy regarding the processes that continuously

improve operations and involve all employees. Kaizen sees improvement in productivity as a gradual and methodical

process.

◼ Simple, elegant, and effective solutions

◼ Manufacturing as a core competency

◼ It’s in our genes – we’ve done it from the start

◼ Providing a competitive advantage through:

◼ Industry leading responsiveness to customer orders

◼ Continuous cost reductions through tight supply chain control

◼ Maintaining “best in class” quality through fanatical process control

◼ Leverage global purchasing power

Page 13: Kaizen Culture - University of North Texas

12 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Continuous Improvement Requires A Constructive Sense of Dissatisfaction

Tools to develop this mindset…

Operational

Targets

Accountability

Results

…Clear Objectives & Follow-Up

…Attitude

• Today’s performance isn’t good enough

• A good improvement today is better than a perfect improvement next month

• “A revolution in consciousness is indispensable” (Taiichi Ohno)

…Knowing Reality

Genchi Genbutsu - Seeing reality first

hand and asking why

Page 14: Kaizen Culture - University of North Texas

13 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Culture of Continuous Improvement

◼ We implement thousands of Kaizens each year

◼ Most are small improvements…

BUT

◼ The combined impact of thousands of

small ideas delivers impressive results

$1 Kaizen tokens for each implemented idea

Quarterly Kaizen Awards

Page 15: Kaizen Culture - University of North Texas

14 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Earthquake Recovery Effort

Page 16: Kaizen Culture - University of North Texas

15 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

What Happened

◼ On March 11, 2011 a magnitude 9.0 earthquake struck off the coast of Japan, 231 miles NE of Tokyo

and 80 miles E of Sendai

◼ Energy released was approximately 100 Megatons of TNT – 5,000x the energy of the first atomic bomb!

◼ Shortly after the earthquake, parts of the Japanese coast were hit by a tsunami up to 30 ft high

◼ Damage from that tsunami is responsible for the on-going crisis at the Fukushima Daiichi nuclear

power plant

◼ A 30km exclusion zone still exists around the plant

◼ There were 75 aftershocks of magnitude 6.0 or greater, including a 7.1 on April 7, 2011 which had a

profound effect on recovery efforts

◼ The human toll was very severe as is the damage to basic infrastructure

Page 17: Kaizen Culture - University of North Texas

16 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Actions Taken

Supply Chain Recovery Process

◼ FOCUS & GATHER INFORMATION

◼ Special Supply Chain Recovery Office (SCRO) established to manage, synchronize and resolve all issues critical to continued

production (across all organizations)

◼ Identify impacted suppliers & extent of exposures

◼ Identify affected components & finished goods

◼ SOLVE KNOWN ISSUES

◼ Transfer demand requirements to second sources (not always fastest path to resolution)

◼ Work with primary sources through their recovery – Including fast-tracking any necessary qualification of alternative sources

◼ Re-design assembly where required

◼ Review demand requirement/priorities (in collaboration with customers)

◼ COMMUNICATE

◼ Regular updates to customers

◼ Regular updates to Fujitsu executives

Page 18: Kaizen Culture - University of North Texas

17 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Pretty pictures,But…so what?

Page 19: Kaizen Culture - University of North Texas

18 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Personal Weight Loss Journey

◼ “Slow and steady wins the race!”

◼ Small, quick changes

◼ Radical is not sustainable

◼ Daily, weekly, monthly goals

Page 20: Kaizen Culture - University of North Texas

19 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Meet People, Get Involved, Contribute, Learn

◼ FNC Organizations

◼ GAT,WIN, C2C

◼ Dallas Cup

◼ Boys and Girls Club

◼ University of North Texas

◼ Reddit – News, Dallas, Personal Finance,

FC Dallas

◼ Travel - New Orleans, Las Vegas, Destin,

London, Turkey

◼ Financial Awareness

Page 21: Kaizen Culture - University of North Texas

20 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.

Items of Consideration For Your Career

◼ Socrates – “Know Thyself”

◼ What industry do I want to be in?

◼ What size/age company do I want to work for?

◼ What skills do I need?

◼ Development opportunities

◼ Do expectations of career growth match?

◼ Could I be satisfied with the company culture?

◼ Do benefit plans meet my needs?

◼ Competitive salary

Page 22: Kaizen Culture - University of North Texas

21 Fujitsu Proprietary and Confidential. All Rights Reserved. © 2021 Fujitsu Network Communications, Inc.