Japanese manufacturers known for shoddy practices

288
2
Japanese manufacturers known for shoddy practices

Mitsubishi Electric Corp. is one of the many Japanese manufacturers that have been making product testing for years.

Some large companies have been known for shoddy practices, some of which have gone on for decades.

Japan Steel Works Ltd. has been testing parts used in power plant turbines on May 9th. The quality control testing employees had instructed the data to be rewritten to ensure they met their delivery deadlines, and they had instructed those responsible for quality control to do so.

Japan Steel Works is one of the world s largest manufacturers of rotor shafts used in power plant turbines.

The fraudulent testing practices were in place for about 24 years until February, but company officials admitted that fraudulent testing practices had been in place for about 24 years. They said they had not confirmed any specific problems relating to it related to product quality or functioning. They did not reveal the names of the companies that the rotor shafts were sold to.

In January, Toray Industries Inc. announced that it had produced fake test results of its resin products. The investigative committee looking into the matter found that practices had continued for at least 30 years, with those in higher positions aware of what was going on.

On May 13, Toray announced that eight executives, including President Akihiro Nikkaku, would take salary cuts to take responsibility for the findings.

One after another manufacturing industry revelations have emerged, despite the fact that companies were told to review their testing practices about five years ago.

In 2017, Keidanren asked its 1,500 or so member companies and organizations to investigate their internal practices after improprieties turned up at subsidiaries of Kobe Steel Ltd. and Toray Industries.

Keidanren asked the companies to report any malfeasance to the relevant government agency and disclose the findings.

Mitsubishi Electric was unable to uncover its latest testing problems, even though it said it would investigate the company's poor quality control practices on three occasions between fiscal 2016 and fiscal 2018 and that it would investigate the latest testing problems.

Shin Ushijima, a lawyer who is knowledgeable about corporate governance, said Mitsubishi Electric officials likely maintained a high degree of pride and arrogance that nothing could be wrong with their products.

There is the possibility that there are still hidden improprieties, he said. To change the corporate culture, there need to be a structure in which outside board members can oversee and instruct a process of revision that extends over several years.