Video summary
中小企業論ゲスト講演 株式会社久田見製作所様
Main summary
Key takeaways
Main ideas & lessons
1) Introductions: Gifu Prefecture and the guest (Okada)
- The speaker introduces himself as Okada from Gifu Prefecture, explaining where Gifu is located in relation to major cities such as Tokyo and Nagoya.
- He starts by addressing common misunderstandings, then provides a touristic/identity overview of Gifu, including:
- Shirakawa-go (World Heritage Site)
- Ueda Onsenkyo (hot springs in the Northern Alps region)
- Hida Furukawa (linked to a Your Name / anime location reference)
- Kusatsu / Gero hot springs (noted among famous hot springs; he says Gero is in Gifu)
- He distinguishes regional character:
- Hida region (north)
- Mino region (south), with references such as Sekigahara
- He mentions Gifu’s population (~1.99 million), arguing it is smaller than Tokyo and that the prefecture’s overall appeal/ranking is relatively low—contributing to population decline.
- He proposes a structural reason:
- Nagoya’s proximity attracts people due to companies and universities, though this also makes travel easier (a tradeoff).
2) Company overview: Kutani Seisakusho / Kutami Manufacturing
The second speaker introduces Kutami Manufacturing Co., Ltd., described as a small, rural/SME-style manufacturer.
Company background and scale
- Founded 1972 → 50th anniversary (at the time of the talk)
- ~32 employees
- Capital: 10 million yen
- Annual sales: over 50 million yen
Core business (three pillars)
- Development & design
- Circuit board implementation
- Circuit board assembly
Location
- Near the border area in Gifu Prefecture, tied to local cultural/historical context (including a Taiga drama reference and the birthplace story of Akechi Mitsuhide).
Example products/projects
- LED-related products (including Sengoku-character designs)
- A circuit board concept that can work when tapped—similar to a transport-card idea:
- radio-wave interaction + lighting
- Application examples for their circuit boards:
- Vehicles (cars/airplanes), vending machines, factories
- Consumer electronics (tablets/smartphones/computers)
- Home appliances (e.g., components for vacuum cleaner centers), “white goods”
Industry challenge
- Semiconductor shortages disrupt production, causing delays and limiting access (e.g., shortages affecting the ability to obtain air conditioners).
Strategic/ethical purpose They aim not only to manufacture circuit boards, but to:
- Bring joy to people through business activities
- Contribute to regional development
- Connect employee development, an education center, and users/customers
3) Company philosophy & quality principles (how they work)
- They define “satisfaction” as results that exceed expectations.
- Operating principles include:
- Design/production responsibility across processes
- During handoffs (process 1 → 2 → 3), each person takes full responsibility for passing work on.
- Quality acceptance rules
- Only high-quality products are accepted from upstream processes.
- No careless or roughly handled work is passed forward.
- Design-for-manufacturing mindset
- Development focuses on making products easy to manufacture and clearly explaining design.
- Design/production responsibility across processes
4) How circuit boards are made (detailed workflow)
The talk outlines the manufacturing process (high-level, but with concrete stages).
Circuit board assembly process
- Print solder paste onto a bare circuit board.
- Place small electronic components onto the solder paste.
- Automated placement
- Many parts are smaller than 1 mm
- Placement machines use program instructions plus vision feedback
- The system detects errors, marks them as NG, and corrects/re-attaches as needed
- Reflow (furnace heating)
- Heat to about ~200°C
- The solder paste melts, bonds components, then cools
- Back-side soldering
- After mounting, soldering is performed so the final result becomes a hardened metal connection
Hand/analog craftsmanship
- Some prototypes or parts not suitable for machines require manual soldering:
- Small components are soldered one-by-one by hand using fine tweezers.
Machine assembly
- The circuit board is assembled into a finished product or module:
- attach into a housing, fasten screws, connect wiring, etc.
5) Macro topic: why SMEs matter for growth (and why Japan’s productivity/wages lag)
The speaker shifts from company practices to broader SME challenges in Japan.
Key claims/statistics
- By number of firms:
- Large companies: ~0.3%
- SMEs: ~99.7%
- By employees:
- SMEs account for ~70% of workers
- Gifu is described as having few large firms, increasing dependence on SMEs.
- He argues that low SME productivity contributes to:
- low GDP growth / low wage growth
- declining productivity rankings (referencing economist arguments and global comparisons)
Why “work style reform” is hard for low-productivity SMEs
- Sales and labor time are linked:
- If you reduce working days/hours, you reduce achievable sales/work volume.
- They describe a break-even point:
- If sales fall below a threshold, the company becomes unprofitable.
- SMEs with low labor productivity have less margin above break-even, so cutting working hours can be risky.
6) Economic mechanics: fixed vs variable costs (wage increases + work hours)
The talk explains the financial risk using a simple cost model.
- Fixed costs (incurred regardless of sales):
- salaries, rent, facility-related fees, etc.
- If wages rise, fixed costs rise
- Variable costs (scale with output/sales):
- example analogy: a ramen shop’s ingredient cost increases with the number of bowls sold
Implication
- For low-productivity firms, increasing fixed costs (wages) can push the firm toward deficits quickly—even if sales don’t change enough.
- Workforce attraction link:
- If a firm cannot raise wages or provide time off, it struggles to attract workers, creating long-run survival risk.
7) What their company did to improve productivity and profitability (methodology)
They present a practical transformation approach to raise labor productivity and stabilize performance.
A. Improve “labor sensitivity” and productivity
- Goals:
- secure high profit margins
- secure stable sales
B. Make profits visible (DX + management control)
- They introduced systems on the production line:
- Tablets let employees record the beginning/end of processes.
- The system calculates:
- output count per product
- time required per product
- profit per product per day
- They use a profitability classification method (ABC-style):
- A: profit margin 15%+
- B: 10%–15%
- Low B: 1%–9%
- Items generating no profit are also assessed
- They use results to decide:
- stop unprofitable work (described as “stop doing them altogether”)
C. Standardize and reduce low-value work
- They divide tasks into:
- High-value analog/craft work (requires skilled humans)
- Routine “everyday work” (can be done by anyone)
- Initiative:
- increase high-value analog work
- decrease routine tasks that do not create value
D. Use 3D inspection and DX to automate inspection
- Replace/augment human inspection:
- use 3D inspection devices for quality checks
- automate most basic inspection steps
- shift human experts to higher-skill tasks
- Claimed outcome:
- “6 out of 7” can perform high-value analog work
- reduce wasted time/unnecessary work
- grow internal craftsmen rather than relying on large external manual labor
E. Take on higher-margin and broader roles
- Instead of only manufacturing, they expand into:
- design, planning, and product development collaboration
- They build internal development capability:
- created an in-house development department (starting around 2019)
- Key philosophy:
- designs should be easy to manufacture, reducing delays and rework caused by poor manufacturability assumptions
F. Stabilize sales through diversification
- Risk: sales once depended heavily on vending machines
- Response:
- enter other industries/sectors to reduce concentration risk
- example: automotive becomes <10%, so losing it won’t destroy sales
- Current diversification (as stated):
- customer count increased from ~10 companies to 60+
- largest customer share is <30%, and many are <10%
G. Build future growth: AI and 5G
- Collaboration with academia/tech institutions:
- Nagoya Institute of Technology
- Gifu University
- government/education support is referenced
- AI use-cases mentioned:
- AI-based maintenance planning to reduce staffing needs by automating when inspections/repairs are needed (e.g., air conditioner/duct maintenance)
- traffic-light automation on construction sites to reduce reliance on human guards and improve safety (including heatstroke risk)
- 5G initiative:
- work on infrastructure to make 5G more usable, aiming to leverage strengths in the 5G market
H. Targeted labor productivity goal
- Quantitative goal:
- increase SME labor productivity from around ~5 million yen/person to ~10 million yen/person by 2027
- They frame their reforms as enabling “healthy work style reforms” and better personnel management.
I. Workforce/HR claims
- Wages and overtime:
- average wage reported over 25 million (with nuance: average wage ~3.8 million yen; Gifu average ~4.75 million yen is also mentioned—framed as employees’ salary being above the Gifu average)
- longest overtime: 53 hours
- average overtime: 32.6 hours
- Family support:
- maternity leave accommodations were mentioned.
8) Final recruitment/career message about SMEs and rural industry collaboration
- The speaker argues SMEs—especially outside major cities—must thrive for Japan to improve.
- Key points:
- rural SMEs have higher dependence/importance, so they are crucial
- rural SMEs can collaborate with local resources/industries to create new products/services (examples tied to local sake cup/masu and a “light-changing” product concept)
- He encourages students to visit/investigate SMEs to discover strengths and opportunities.
Speakers / sources featured (as named in the subtitles)
Speakers
- Okada (from Kutami/Kutani Seisakusho / Kutani Seisakusho Co., Ltd.; also referred to as President Okada during an add-on)
- Kagami Noru (introduced as the person giving company background; born 1974 in Takayama; later also appears as representative director)
Sources / referenced people & institutions
- Jun-san (referenced via the company’s place name; described as connected to “science department” and “Kitamachi Rocket / Hanzawa”)
- Daily and Adkinson (economists referenced for the productivity/SME argument; names may be auto-transcribed inaccurately)
- Gifu Prefecture / Gifu Small and Medium-Sized Enterprise Introduction Association (event organizer/recommender for the guest)
- Nagoya Institute of Technology
- Gifu University
- MEXT (Ministry of Education, Culture, Sports, Science and Technology)
- Komazawa University (host venue referenced)
- C-Learning (attendance/learning system referenced)