Stanley's 100th Anniversary Site

chapter5 1990-1999

The Rebuilding of Management Foundation

Masahiro Shinoda, who became the President in 1990, considered as an emergency the significant drop in the company's profits experienced in the previous year for the first time since its formation. He therefore initiated efforts to establish a solid management foundation under a new structure. His expression of the new ideal corporate structure for the 21st century was "a good company." In order to rebuild its management foundation, the planning function of the company was strengthened with new systems such as Chain System (a profit management system), Stars Plan (a new personnel system), and DN-6 (an information system). In addition, the company started "SNAP," activities for production innovations, by establishing the basic principles of manufacturing and how to implement them. From 1990 to 1999, it was the decade in which the company's management foundation, infrastructure, and systems for the years from 2000 to present day were built under the initiative of then-Vice President Takanori Kitano, who was later appointed as the President.

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CHRONOLOGY

1990
Jun.

Appointed then-Senior Managing Director Masahiro Shinoda as President and then-Managing Director Takanori Kitano Senior Managing Director

Jul.

Capital stock exceeded 20 billion JPY

Aug.

Introduced matrix management system emphasizing corporate-wide management functions

Sep.

Certified as No. 1 for quality in the field of subminiature lamps by U.S. Ford

Nov.

THS listed on the Stock Exchange of Thailand

Senior Managing Director Takanori Kitano explaining about the establishment of the three systems of Profit Control, Human Resources and Information

Senior Managing Director Takanori Kitano explaining about the establishment of the three systems of Profit Control, Human Resources and Information

Business activities in P-D-S cycle

Business activities in P-D-S cycle

The Start of the DN-6, an Information System Development 6-year Plan

 In February 1988, Stanley Electric reorganized its then-existing computer system office into the Dia Net Center to streamline business processes such as sales, engineering, purchasing, production, and accounting, and then started an information system development 6-year plan (DN-6) to develop a comprehensive information system to enable the company to identify and solve problems at an enhanced speed. After reviewing the product codes necessary for systematization, the company developed information system infrastructures to implement centralized information management based on networks and databases in stages, beginning with the launch of the production management system Phoenix in June 1989. Starting from 1996, DN-6 was replaced with Dia Net Plans '96, '97, and '98. The company made efforts to equip itself with global and more advanced information technologies for the 21st century, including the utilization of groupware and the development of intranets. These efforts led to the company's ERPs and new cost control system currently being in operation.

Proposal of the DN-6, an information system development 6-year plan

Proposal of the DN-6, an information system development 6-year plan

1991
Apr.

Launched a new personnel system (Stars Plan), implementing a new evaluation system and challenge target system

Jul.

Research and Development Corporation (currently Japan Science and Technology Agency) certified the successful development of the manufacturing technology of CSH-LCD

Aug.

Opened the Yokohama Technical Center (YTC)

Nov.

Launched multi-reflector fog lamp, RAYBRIG R011

CSH-LCD certified as a successful development by the Research and Development Corporation

CSH-LCD certified as a successful development by the Research and Development Corporation

Ribbon cutting at the opening ceremony of the Yokohama Technical Center

Ribbon cutting at the opening ceremony of the Yokohama Technical Center

The Introduction of Stars Plan (New Personnel System)

 In April 1991, Stanley Electric introduced long-term competency-based personnel measures in order to "establish a corporate culture in which people who were aspiring and willing to learn can be respected."
 In the 1990s, many enterprises were shifting toward a results-based system in pursuit of better results and figures. In a results-based system, however, a pay raise and rewards are hard to come by without better results, and focus tended to be on short-term gain rather than long-term growth. Then-Representative Senior Managing Director Takanori Kitano, who was leading the introduction of the Stars Plan, thought that people could not be motivated solely with a profit-centered corporate mindset. He was convinced that people were less motivated by a profit-based system and more by personal feelings. Although a results-based system was important, a singular focus on results would lead to management with an excessively short-term perspective. He therefore thought that the effective use of human resources should be a higher priority and placed emphasis on nurturing people (competency-based system). This involved the idea that an organization would change if its people changed and that a company could contribute to society if its organizations were vibrant.
 He further hoped that this personnel management policy would change everyone's consciousness. More specifically, he wanted each individual to recognize that working with passion, interest, and responsibility for his or her growth would lead to the happiness of everyone, the company, and society.
 The Stars Plan was a reflection of these thoughts on management system. Under this system, evaluation processes were made visible to ensure impartial, reasonable, and valid evaluations were conducted by two categories: competency and performance. Further, employees received direct feedback on their evaluation results. Also, new qualification and wage systems based on a competency-based system were introduced. The Stars Plan was also gradually introduced to overseas affiliated companies.

STARS Plan

STARS Plan

1992
Apr.

Launched blue LEDs

Oct.

Automotive multi-lamp "Jabalina" awarded Good Design product in October 1992

Nov.

LED display board at Narita International Airport

Blue LED lamps

Blue LED lamps

1993
Apr.

Established Stanley Electric (H.K.) Co., Ltd. (SHK)

Jul.

Launched ultrathin, high-brightness chip type LEDs

Sep.

Launched RAYBRIG Hyper Halogen, the world's first high efficiency bulb

Oct.

Acquired shares of Matsuo Electric Co., Ltd. and made it a special subsidiary for the purpose of employing disabled people

Dec.

Expanded into new EL business

1994
Apr.

Stanley Finance and Service Co., Ltd. restarted as Stanley Pal Co., Ltd.

Apr.

Yamagata Factory (exclusive manufacturing of LED chips) started full operations

Jul.

Stars Plan shifted to Ver. 2 (introduced new qualification acquisition policies and a new wage system)

Sep.

Launched Active 30

Oct.

Capital participation in LUMAX of India

LUMAX Dharuhera Factory

LUMAX Dharuhera Factory

1995
May

Strobes on the DC-1, RICOH's first digital camera

Jun.

Established the basic principles of production control

Jul.

Established Stanley Electric Shayukai (Association of Retirees)

Jul.

Implemented union shop system

Jul.

Established Tianjin Stanley Electric Co., Ltd. in China

Sep.

Implemented job change support system

Oct.

First domestic High Intensity Discharge (HID) headlamps were approved

Ribbon cutting at the TSE opening ceremony

Ribbon cutting at the TSE opening ceremony

1996
Apr.

Established the Active 30 Promotion Office

Jun.

HID lamps on the Mitsubishi Motors Super Great, the first time in Japan for mass produced vehicles

Sep.

Established Vietnam Stanley Electric Co., Ltd. (VNS)

Nov.

Established Shanghai Stanley Electric Co., Ltd. (SSE)

HID lamps on the Mitsubishi Motors Super Great, the first  mass produced application in Japan

HID lamps on the Mitsubishi Motors Super Great, the first mass produced application in Japan

Groundbreaking ceremony of Vietnam Stanley Electric Co., Ltd.(VNS)

Groundbreaking ceremony of Vietnam Stanley Electric Co., Ltd.(VNS)

1997
Mar.

First training session by Hitoshi Yamada of PEC Productivity Education Center (currently PEC Kyokai (PEC Institution))

Apr.

Renamed Active 30 Promotion Office as SNAP Promotion Office

May

Published The Stanley Way: 75 Years of Stanley Electric

Jul.

Renamed SHK as Stanly Electric (Asia Pacific) Ltd. (SAP)

Oct.

Announced HRM230S as a new module for infrared communication modules compliant with IrDA 1.1 (4 Mbps)

Infrared communication modules compliant with IrDA 1.1 (4 Mbps)

Infrared communication modules compliant with IrDA 1.1 (4 Mbps)

SNAP Production Innovation Activity

 In September 1994, Stanley Electric started Active 30 to improve cost competitiveness by 30%. Active 30 was designed to improve productivity by eliminating waste, reducing costs, developing new markets, proposing development plans to gain a leading edge, and reducing lead time to increase profit levels,. Active 30 was an initiative to improve cost competitiveness mainly through the streamlining and rationalization in administrative and non-production departments. Meanwhile, SNAP (Stanley New Approach for Higher Productivity) was an initiative started in 1995 to streamline and rationalize production processes. Then in May 1997, the company started to receive guidance from the PEC Industrial Education Center, which had a long experience in introducing Toyota Production System to many firms. The guidance helped the company steadily achieve better results.

2nd training session by Hitoshi Yamada at Stanley Tsuruoka Works

2nd training session by Hitoshi Yamada at Stanley Tsuruoka Works

1998
Jan.

Established Stanley Electric Sales of America, Inc. (SSA)

Feb.

Capital participation in Samlip Lighting Corporation of South Korea

May

Decided to centralize and reorganize the LCD business

May

Established Stanley Electric GmbH (SED)

Oct.

Renamed Hatano Denko K.K. as STANLEY WELL Corporation and made it a special subsidiary for the purpose of employing disabled people

Oct.

Internally and externally announced Environmental Declaration as part of environmental conservation activities

Dec.

Stanley Suburban Office Surf-side completed

Stanley Suburban Office Surf-side

Stanley Suburban Office Surf-side

1999
Mar.

Launched high-brightness chip type LED with lens

Mar.

Announced ultrathin headlamp, Line Beam, at the SAE (Society of Automotive Engineers) International Conference & Exhibition '99

1990
Jun.

Appointed then-Senior Managing Director Masahiro Shinoda as President and then-Managing Director Takanori Kitano Senior Managing Director

Senior Managing Director Takanori Kitano explaining about the establishment of the three systems of Profit Control, Human Resources and Information

Senior Managing Director Takanori Kitano explaining about the establishment of the three systems of Profit Control, Human Resources and Information

Business activities in P-D-S cycle

Business activities in P-D-S cycle

Jul.

Capital stock exceeded 20 billion JPY

Aug.

Introduced matrix management system emphasizing corporate-wide management functions

Sep.

Certified as No. 1 for quality in the field of subminiature lamps by U.S. Ford

Nov.

THS listed on the Stock Exchange of Thailand

The Start of the DN-6, an Information System Development 6-year Plan

 In February 1988, Stanley Electric reorganized its then-existing computer system office into the Dia Net Center to streamline business processes such as sales, engineering, purchasing, production, and accounting, and then started an information system development 6-year plan (DN-6) to develop a comprehensive information system to enable the company to identify and solve problems at an enhanced speed. After reviewing the product codes necessary for systematization, the company developed information system infrastructures to implement centralized information management based on networks and databases in stages, beginning with the launch of the production management system Phoenix in June 1989. Starting from 1996, DN-6 was replaced with Dia Net Plans '96, '97, and '98. The company made efforts to equip itself with global and more advanced information technologies for the 21st century, including the utilization of groupware and the development of intranets. These efforts led to the company's ERPs and new cost control system currently being in operation.

Proposal of the DN-6, an information system development 6-year plan

Proposal of the DN-6, an information system development 6-year plan

1991
Apr.

Launched a new personnel system (Stars Plan), implementing a new evaluation system and challenge target system

The Introduction of Stars Plan (New Personnel System)

 In April 1991, Stanley Electric introduced long-term competency-based personnel measures in order to "establish a corporate culture in which people who were aspiring and willing to learn can be respected."
 In the 1990s, many enterprises were shifting toward a results-based system in pursuit of better results and figures. In a results-based system, however, a pay raise and rewards are hard to come by without better results, and focus tended to be on short-term gain rather than long-term growth. Then-Representative Senior Managing Director Takanori Kitano, who was leading the introduction of the Stars Plan, thought that people could not be motivated solely with a profit-centered corporate mindset. He was convinced that people were less motivated by a profit-based system and more by personal feelings. Although a results-based system was important, a singular focus on results would lead to management with an excessively short-term perspective. He therefore thought that the effective use of human resources should be a higher priority and placed emphasis on nurturing people (competency-based system). This involved the idea that an organization would change if its people changed and that a company could contribute to society if its organizations were vibrant.
 He further hoped that this personnel management policy would change everyone's consciousness. More specifically, he wanted each individual to recognize that working with passion, interest, and responsibility for his or her growth would lead to the happiness of everyone, the company, and society.
 The Stars Plan was a reflection of these thoughts on management system. Under this system, evaluation processes were made visible to ensure impartial, reasonable, and valid evaluations were conducted by two categories: competency and performance. Further, employees received direct feedback on their evaluation results. Also, new qualification and wage systems based on a competency-based system were introduced. The Stars Plan was also gradually introduced to overseas affiliated companies.

STARS Plan

STARS Plan

Jul.

Research and Development Corporation (currently Japan Science and Technology Agency) certified the successful development of the manufacturing technology of CSH-LCD

CSH-LCD certified as a successful development by the Research and Development Corporation

CSH-LCD certified as a successful development by the Research and Development Corporation

Aug.

Opened the Yokohama Technical Center (YTC)

Ribbon cutting at the opening ceremony of the Yokohama Technical Center

Ribbon cutting at the opening ceremony of the Yokohama Technical Center

Nov.

Launched multi-reflector fog lamp, RAYBRIG R011

1992
Apr.

Launched blue LEDs

Blue LED lamps

Blue LED lamps

Oct.

Automotive multi-lamp "Jabalina" awarded Good Design product in October 1992

Nov.

LED display board at Narita International Airport

1993
Apr.

Established Stanley Electric (H.K.) Co., Ltd. (SHK)

Jul.

Launched ultrathin, high-brightness chip type LEDs

Sep.

Launched RAYBRIG Hyper Halogen, the world's first high efficiency bulb

Oct.

Acquired shares of Matsuo Electric Co., Ltd. and made it a special subsidiary for the purpose of employing disabled people

Dec.

Expanded into new EL business

1994
Apr.

Stanley Finance and Service Co., Ltd. restarted as Stanley Pal Co., Ltd.

Apr.

Yamagata Factory (exclusive manufacturing of LED chips) started full operations

Jul.

Stars Plan shifted to Ver. 2 (introduced new qualification acquisition policies and a new wage system)

Sep.

Launched Active 30

SNAP Production Innovation Activity

 In September 1994, Stanley Electric started Active 30 to improve cost competitiveness by 30%. Active 30 was designed to improve productivity by eliminating waste, reducing costs, developing new markets, proposing development plans to gain a leading edge, and reducing lead time to increase profit levels,. Active 30 was an initiative to improve cost competitiveness mainly through the streamlining and rationalization in administrative and non-production departments. Meanwhile, SNAP (Stanley New Approach for Higher Productivity) was an initiative started in 1995 to streamline and rationalize production processes. Then in May 1997, the company started to receive guidance from the PEC Industrial Education Center, which had a long experience in introducing Toyota Production System to many firms. The guidance helped the company steadily achieve better results.

Oct.

Capital participation in LUMAX of India

LUMAX Dharuhera Factory

LUMAX Dharuhera Factory

1995
May

Strobes on the DC-1, RICOH's first digital camera

Jun.

Established the basic principles of production control

Jul.

Established Stanley Electric Shayukai (Association of Retirees)

Jul.

Implemented union shop system

Jul.

Established Tianjin Stanley Electric Co., Ltd. in China

Ribbon cutting at the TSE opening ceremony

Ribbon cutting at the TSE opening ceremony

Sep.

Implemented job change support system

Oct.

First domestic High Intensity Discharge (HID) headlamps were approved

1996
Apr.

Established the Active 30 Promotion Office

Jun.

HID lamps on the Mitsubishi Motors Super Great, the first time in Japan for mass produced vehicles

HID lamps on the Mitsubishi Motors Super Great, the first mass produced application in Japan

HID lamps on the Mitsubishi Motors Super Great, the first mass produced application in Japan

Sep.

Established Vietnam Stanley Electric Co., Ltd. (VNS)

Groundbreaking ceremony of Vietnam Stanley Electric Co., Ltd.(VNS)

Groundbreaking ceremony of Vietnam Stanley Electric Co., Ltd.(VNS)

Nov.

Established Shanghai Stanley Electric Co., Ltd. (SSE)

1997
Mar.

First training session by Hitoshi Yamada of PEC Productivity Education Center (currently PEC Kyokai (PEC Institution))

2nd training session by Hitoshi Yamada at Stanley Tsuruoka Works

2nd training session by Hitoshi Yamada at Stanley Tsuruoka Works

Apr.

Renamed Active 30 Promotion Office as SNAP Promotion Office

May

Published The Stanley Way: 75 Years of Stanley Electric

Jul.

Renamed SHK as Stanly Electric (Asia Pacific) Ltd. (SAP)

Oct.

Announced HRM230S as a new module for infrared communication modules compliant with IrDA 1.1 (4 Mbps)

Infrared communication modules compliant with IrDA 1.1 (4 Mbps)

Infrared communication modules compliant with IrDA 1.1 (4 Mbps)

1998
Jan.

Established Stanley Electric Sales of America, Inc. (SSA)

Feb.

Capital participation in Samlip Lighting Corporation of South Korea

May

Decided to centralize and reorganize the LCD business

May

Established Stanley Electric GmbH (SED)

Oct.

Renamed Hatano Denko K.K. as STANLEY WELL Corporation and made it a special subsidiary for the purpose of employing disabled people

Oct.

Internally and externally announced Environmental Declaration as part of environmental conservation activities

Dec.

Stanley Suburban Office Surf-side completed

Stanley Suburban Office Surf-side

Stanley Suburban Office Surf-side

1999
Mar.

Launched high-brightness chip type LED with lens

Mar.

Announced ultrathin headlamp, Line Beam, at the SAE (Society of Automotive Engineers) International Conference & Exhibition '99

Chapter 4 1971-1990 Towards Becoming an Optoelectronics Enterprise TOP Chapter 6 1999-2002 Stanley Electric's Entry into a New Era
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