PT Komatsu Indonesia Wins the Deming Prize

PT Komatsu Indonesia (KI) a wholly owned subsidiary of Komatsu Ltd. (hereafter “Komatsu”) (President and CEO: Tetsuji Ohashi), has received the Deming Prize for 2018. 

Since 1961, when Komatsu introduced the company-wide quality control (QC) programme, Komatsu has proactively promoted total quality control (TQM) over the years. In 1964 Komatsu won the Deming Application Prize (currently, Deming Prize) and the Japan Quality Control Prize in 1981. Komatsu has also introduced TQM to overseas subsidiaries and cultivates a work environment where national staff (locally hired employees) themselves work to identify problems and tasks at their workplaces and add value to their own work, thereby facilitating the localisation of management. In China, Komatsu Shantui Construction Machinery Co., Ltd. won the Deming Prize in 2013. 
As a key production base in Asia with promising expansion in demand for the mid to long-term, KI has established a company-wide, quality-first management structure with the goal of enhancing organisational capabilities and development of human resources, which Komatsu believes has brought the Deming Prize to KI. 

Komatsu, in its press release, said that it will remain committed to quality and reliability on a group-wide basis, thereby maximising its corporate value. 

On Komatsu’s win, the Union of Japanese Scientists and Engineers explained that ” in addition to developing and manufacturing new products designed to respond to changing requirements of local customers, KI is expanding the aftermarket business with mounting parts and Reman components. It is also engaged in business reforms for a flexible production system, thereby building an operational structure to meet demand changes without expanding inventories. Furthermore, KI is developing its human resources from a long-range perspective by identifying the capabilities that each and every employee should have in light of achieving its business goals and strategies.

As a result, KI has accomplished the target market share, cut down inventories, reduced the rate of claims by half and achieved the improvement of employees’ capabilities, thereby attaining organisational capabilities to understand customer needs and respond to changes.”

[Outline of KI]
Name      : PT Komatsu Indonesia
Established     : 1982
Head office      : Jakarta, Indonesia
Representative  : Pratjojo Dewo
Line of business    : Manufacture of hydraulic excavators, bulldozers, dump trucks and hydraulic units, etc.
No. of employees : About 1,800