Employees who never stop learning are our source of innovation, Bühler Group, Switzerland

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I have learned from a friend of mine familiar with Swiss industries that there is a company that sends young apprentices of 15 to 16 years old to China for six months. (Note for Japanese readers: “Apprentices” is a part of professional training system unique to Switzerland. They are not employees of a company but students of professional schools. They work in a company, which provides on the job training for 3-4 days a week. They thus obtain professional skills on the shop floor through work.)

This company sends apprentices to overseas for as long as six months, though they are not its employees. What company is it?

Those personnel who carry on international business are indispensable for the Swiss industries as they largely address the markets worldwide. It is also true that the industries owe much on personnel for innovation, for which Swiss companies incessantly strive to stay competitive in the international markets.

That said, why does this company invest that much to grow its personnel? What is the management philosophy behind?

With these questions in mind, I interviewed Mr. Dipak Mane (Photo), Director of Global Human Resources of the company, Bühler Group (https://www.buhlergroup.com/global/en/home.htm).

 

2000px-logo_bühler_ag.svg

mr.dipak mane

What company is Bühler?

Founded in 1860, Bühler continued developing over more than 150 years as a family-owned company.

Based on the original strength of iron casting and roller mills based on the iron, the company developed to become the first-class company in the world markets for the its excellent technologies. During the course of development, Bühler steadily enlarged its business areas to include those areas related to its core competence of iron casting and roller mills.

“The company presently provide machines and solutions indispensable for food industries, ranging from raw materials such as grains, rice, cacao and coffee to medium- to end-products, and livestock feed (Source: https://premium.ipros.jp/buhlergroup/). Bühler further extends its business edge to support sustainable mobility and the total solutions to ensure production of the healthy food.

What are policies of the HR department to ensure competitiveness in international markets?

Two things are most important. One is the sense of purpose, i.e. to be always conscious with the purpose of technologies. The sense of purpose has been the spirit of our company since its birth. To serve this purpose, we have been investing 4 to 5 per cent of turnover in R&D.

The second important thing is the profit.

We must hold these two things together.

The family-management enables to maintain these two essential points. Top managers may manage the company in line with their own management philosophy and make decision swiftly without interference by external stakeholders.

The HR policy is to put the management philosophy into practice. The purpose of Bühler’s HR policy is to maintain employees motivation high. Those are people who always improve their skills and knowledge and who are interested in doing better job all the time. Such employees continue self-improvement all the time by participating in training opportunities. In this sense, our company is a training company, such as a university.

We invest much in trainings. One per cent of Bühler’s personnel costs is spent in training and we plan to raise it to two per cent by the year 2020. In Swiss Francs, the investment is about 6 – 9 billion Swiss Francs per year.

One employee takes 1,85 days of training per year. We plan to increate this number to be 2 in the year 2020.

As for apprentices (those young women and men of 15 and 16 years old) who just stepped in the professional lives, Bühler has a history of 100 years of their trainings. The total number of the apprentices we trained adds up to 7,700.

We started an overseas training program about ten years ago. About 600 apprentices who come to work in Bühler every year are sent to various countries as a part of the training program. One half of them stays in Switzerland and the other half go abroad, such as Austria, China, India, Brazil and South Africa.

china_2017
Bühler’s young apprentices in China

What are reasons of such a HR policy? What do you think of a risk that those employees who obtained higher skills and competence may leave the company for better salary?

Our CEO thinks that we would have to keep a number of employees with low skills and competence who may not leave the company, if we do not provide them with training opportunities.

In fact we see positive results. An employee retention rate of Bühler is as high as over 73 per cent. One thousand apprentices out of those who came to the company for training join Bühler as formal employees.

We witness significant results in the young people who leave their hometowns to meet the new people in other countries with different cultures.

In general terms, many people wish to stay in the company that provide trainings, as they may improve their competence and obtain new skills such as management. Young apprentices watch during their training period how long-lasting employees develop themselves, and project their own future over the elder workers. This makes the young to wish to continue working in Bühler.

What does the company obtain from this unique training?

We obtain the diversity and inclusion (D&I), which are indispensable for innovation. Bühler has a built-in system for people with a wide variety of background to work together.

Though it is surely a large investment to send apprentices to overseas locations for several months, the return is huge. The young learn through their day-to-day work cultures, languages and the market needs.

We not only send apprentices to overseas. We also provide an online program for them to stay in touch with the Swiss Headquarters during the overseas training period. It is a remote sit-down training based via video conferencing (ClassUnlimited). The program is available starting from Switzerland and China to become available in other countries.

Such a training lies in the centre of the company. Apprentices obtain skills and leadership in order to brush up the sense of purpose.

We do not expect a return on investment (ROI) in the short terms, because it is our belief that the smart employees are the core resource of a company.

We always seek ways to improve competence of employees. Means to do so is not limited to trainings.

We are aware that training is a long-term investment and continue increasing the variation of the training.

It should also be noted that those who enjoy benefits of trainings are not limited to a small number of employees who are expected to take senior management positions in the future. It is Bühler’s management philosophy that we address all the employees for trainings.

In what ways would HR department contribute to the innovation?

The birth of innovation requires a certain ecosystem, or a chain of various factors. The HR department is an integral part of the eco system of innovation. For example, the HR provides the office environment that enables employees to communicate better with each other, encouragement of collaboration with Universities, and sponsor some research programs in Universities.

In Bühler, we organise an innovation competition participated by 2,000 employees worldwide. This means 15 per cent of all the employees participate in the competition.

We must find those needs which market has not yet found. Our Chief Technology Officer (CTO) always tells us that 99 per cent of knowledge is outside the company. We must continue looking for good ideas all the time. For this purpose, we will continue working with those outside the company, including start-up companies.

What kind of company would Bühler want to be in the future?

We want to see Bühler for which employees want to work most in the world. Young employees know well what such as a company is all about. They wish to work for a company that has social purposes. They want their company contribute to something that help people, such as to alleviate adversarial consequences of the climate change, etc. Social contribution is Bühler’s tradition. We wish to continue investment in R&D. Going beyond Industry 4.0 is only a part of the company’s future.

We want to see Bühler running the top of the industry worldwide.

One example of our contribution is a new innovation centre, Cubic innovation centre (Photo), to be open in February 2019. We invested CHF 65 million in Cubic. Cubic is a contribution to the industry. We have been organising an event called, “the Networking day”. The event is to open factories to people from outside. We will be able to invite the public all the time after the opening of Cubic.

cubic_visualization
Cubic innovation centre

Notes by the author

We know that people are essential resources of a company but rarely see the one like Bühler that provides opportunities for the young apprentices to experience the world and for all the employees life-time training programs. This would surely create employees with eyes wide open and who may produce products, systems and services with the sense of purpose.

It is said that Diversity and inclusion (D&I) is essential for the innovation. Bühler proves this is true. The company’s success in the innovation owes highly motivated people with diversified knowledge and background, and an environment that enables them to work together.

  • The article is originally prepared in Japanese for News Letter published by Swiss Business Hub Japan, Tokyo, Japan, December 2018

(Photos provided by Bühler Group)

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Fresh & hot from Japan, from 31 May to 2 June 2017

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Please enjoy fresh & hot news from Japan with comments by Europe-Japan Dynamics.

31 May Airport operating company of major airports in Osaka region reported the settlement of accounts of net income 16,900 million yen, for the first time after the airport privatization

The Kansai airport which operates the Kansai Airport and Osaka (Itami) airport announced the annual settlement of accounts for the first time after the airports privatization. The operating company reported the operating income equal to the sales amount of March, 2017 period, 180,200 million yen, and the net income indicating the final profit 16,900 million yen, thanks to the largest number of passengers for the Kansai Airport and the increase of the landing tax.

Comments: Why Kansai, not in Tokyo? Worth investigating.

1 Jun. Mitsubishi UFJ Bank looking into to the Netherlands for the new location of its securities base due to Brexit

With European Union (EU) secession decision of the U.K., Mitsubishi UFJ Financial Group, Inc. (FG) is reported to be examining Amsterdam, the Netherlands, as a major candidate as a new base of its securities business operation in Europe. The Group will make the final decision this summer.

Comments: Would the Bank brave enough to leave the UK?

2 Jun. Power-free walk-support machine developed, fatigue reduction, good for health

There is neither the battery nor the motor. Imasen Electric Seisakujo (Inuyama-shi, Aichi) , an automotive parts maker, developed a walk-support machine “aLQ” (aruku, meaning “walk” in Japanese) for the use by wide public. The machine gets attention as a product of research collaboration between the university and industry, that applied a principle of the power-free bipedal robot and car manufacturing techniques.

Comments: Nice product! aLQ will be needed a number of people when the population is aging.

aLQ

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 20 to 26 May 2017

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20 May Shogi Maestro Amahiko SATO defeated by AI

The Shoji Maestro Amahiko SATO was defeated by PONANZA,  artificial intelligence (AI) of Shogi, at the second match between the human Shogi maestro and AI held in  Himeji-jo Castle of Himeji-shi, Hyogo. This win has became the two successive victories of PONANZA, which marked the defeat of the human maestro who was the top of the Shogi world.

Comments: It is endless in what AI could do.

23 May Japanese LCC, Peach Aviation to introduce bit coins, aiming at more passengers visiting Japan

A Japanese Low Cost Carrier (LCC) Peach Aviation will enable purchasing airline tickets by a virtual currency bit coin  within this year. While an increasing number of retail stores and restaurants have begun introducing it as a means of payment in Japan, this is the first case among major means of transportation. Peach Aviation is expecting the use by overseas visitors to Japan by facilitating the payment.

Comments: It’s a marketing strategy to use bit coins to facilitate visitors from China.  Market volume counts.

24 May Pushing market development of pharmaceutical companies in the newly developing economies, a new organization to be established on the basis of public and private sectors partnership

The Japanese Government is establishing an organization in cooperation with the private sectors to push forward the Japanese pharmaceutical companies in the rising economies. The organization may build a factory in host countries so that participating companies may use it. Prime Minister Shinzo Abe, who till be the general manager of the organization is going to announce the plan in the strategic promotion office of the health and medical sectors to be open in June.

Comments: Would the pharmaceutical sector need that much hands-on support by the Government?

25 May Discovered possible therapeutic drug of the intractable disease ALS, Univ. of Kyoto by using induced pluripotent stem cells

A research team of Professor Haruhisa Inoue (neurology) of University of Kyoto discovered the compound that may be a candidate of the therapeutic drug using the induced pluripotent stem cells made from the skin of a patient of the intractable disease “amyotrophic lateral sclerosis” (ALS) that causes symptoms of muscle weakness.  It was confirmed by experiment using mice that the compound works to suppress the progress of illness.

Comments: Good news!

26 May Orix to sell an electricity subsidiary, Kansai Electric Power tenders a bid for sale

Prix is selling is subsidiary, Orix Electricity (Tokyo) that undertakes a mass sales of the electricity apartments. Prix is going to decide the sale by a bid from June to August.  Electricity majors, such as  Kansai Electric Power, and city gas majors are examining participation.

Comments: Does this indicate a failure of liberalization of the power supply?

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 8 to 12 May 2017

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8 May LIXIL returned the best sales performance, thanks to a solid shower toilet selling well in China

The net income of the settlement of accounts (international accounting standards) of a house equipment major, LIXIL Group, recorded the highest gain of 42,500 million yen for March, 2017 period (cf. a deficit of 25,600 million yen in 2016).  This was due to results of cost cutting and good sales performance of overseas restroom business including China.

Comments: This news indicates consumer interests in China have turned to the improvement of living conditions.

9 May You may be a sales person even above 70 years old, Daiwa Securities to lift the age limit of reemployment

Securities major Daiwa Securities Group Inc. decided to lift the age limit of the reemployment of the sales job, which presently is 70 years old. It is intended to reinforce sales force by utilizing abundant experience of the veteran work force.

Comments: Good not to eliminate resources because of the age, but what will be their payment? A major problem of the present Japanese reemployment after the legal retirement age is a sharp decrease of wages even for the same job.

10 May Film for tablets that may not be broken, invented by RIKEN TECHNOS Corp.

A plastic film maker, RIKEN TECHNOS CORPORATION, returned a record high operating income of 5,800 million yen for March 2017, up by 15.3% from the previous year.  While the main product was a vinyl  chloride material for automobiles, the company developed a plastic film which was hard to be broken for the screens of tablet terminals, anticipating that the number of cars produced in Japan may not grow any more.

Comments: From core-competence, taking into account the digital markets, innovation is born.

12 May Search by a smartphone application of strolling person due to dementia, the first field trial in Aichi-ken

A trial to look for an elderly person strolling around because of dementia using an application of smartphone started. Those who look for such person may send some information of the missing person such as his/her characteristics to  the smartphones of the cooperators, thus expand a search network to the entire region. The first field experiment in Japan took place in Kasuga-shi, Aichi-ken in April.

Comments: A key to success may be to have a large number of people who install and pay attention to such an application, or social awareness raiding.

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 17 to 21 April, 2017

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17 Apr. Sharp to fight back in household appliance markets, increasing the variations of models of fridges and TVs

The president of Sharp, Mr. J.W. Tai, revealed a strategy to largely increase the line-up of  household electrical appliance such as TV and the refrigerator for the domestic market in 2017. While its computers are reducing the household appliance business due to thin-margin, Sharp dare intends to increase its presence in the market.

Comments: Having been acquired by Foxconn, it remains to be seen if and in what ways Sharp will reborn.

18 Apr. Field experiment of “Robot cat Yamato”, an automatic driving car for the home delivery of parcels started, aiming at the 100% automatic delivery in the future

A giant  of home delivery of parcels, Yamato Transport, and an IT major, DeNA, have begun a field experiment of parcel delivery service by an automatic driving car, “Robo cat Yamato“, envisaging unmanned delivery in the future. Clients can call a car loaded with a locker-type safekeeping box to receive parcels to the place they wish, including the workplace. It is aimed to reduce time and labour of re-delivery for understaffed logistic centers.

Comments: It is an interesting application of technology of the automatic driving.

ロボネコ_03

19 Apr. Practicing English conversation with AI, which even do web searching to respond to questions

The SOFTBANK commerce & service Crop. has started sellig “Musio X”, a robot which helps you to improve English conversation using the artificial intelligence (AI). Musio X reads aloud English text by right pronunciation and undertakes the web search and answer to you for the questions asked in English. The company plans to add a function to the robot to operate air-conditioners upon voice command in the future. Music X is approximately 22 cm tall and weights 850 g. Its price is 98,000 yen (Approximately CHF 10’000) excluding tax, with monthly payment of 980 yen (Appx. CHF 10).

Comments: What an interesting use of AI! English teachers must use it to know a smart use of Musio X and teachers’ value which the robot can’t offer.

Musio X20 Apr. Trade surplus in FY 2016, for the first time in the past 6 years

According to the trade statistics (breaking news, customs-based accounting) of 2016 announced by the Ministry of Finance, the trade balance was the in the black figure of 4,006,900 million yen. It was the first black figure on the basis of a fiscal year in the past six years, or since the East Japan great earthquake disaster in 2011. This was largely a consequence of a large decrease of the import caused by strong yen and low price of the crude oil.

Comments: Good news for the moment, though the reason of trade surplus is not because of the economic recovery.

21 Apr. Will the initial investment of the simultaneous delivery of TV over the Internet be only 1% of assumptions by NHK?

The Ministry of Internal Affairs and Communications announced for the first time an estimation of costs of the simultaneous delivery of TV over the Internet. As for the case in which TV broadcasting companies jointly use  the delivery system, initial investment to make the system would be 75 million yen per company, and the annual operation costs approximately 21 million yen. In contrast, estimation by NHK was five (5) billion yen for the initial investment and less than 10 billion yen a year for the operation, on the assumption of the single company operation. 

Comments: Does it signal a replacement of TV broadcasting over the air by the high speed Internet? 

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 3 to 7 April, 2017

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3 Apr. The highest possible hit of application for mountain clibmbers, being able to confirm location outside the mobile phone network zones

YAMAP, an application of map for mountain climbers developed by a venture company of Fukuoka-shi has become very popular. The application sees the 500,000 downloading, and 38 millions of monthly viewers, which are the largest numbers among the applications of this kind available in Japan. Drawn on the strength of being usable in those areas where the electric wave does not reach, attempts are being made to use it for wider purposes such as disaster prevention and sightseeing.

Comments: Swiss version of YAMAP may be very useful, if made available.

logo_YAMAP

4 Apr. Solar battery not needing the sun, developped by Sekisui Chemical

SEKISUI CHEMICAL CO., LTD. developed the solar battery which could generate electricity indoor where the sun light does not reach. While not much power may be generated, one may bend or process the battery into tape and stick to something because it is in the form of a thin film and is light. The company will start selling it from 2017, aiming at the sales of 10 billion yen in 2015.

Comments: This technology may be a breakthrough for ecological power generation!

積水太陽電池

5 Apr. Payment by “bit coin” is becoming popular, Bic Camera to introduce it

There is an emerging trend to allow payments by the virtual currency “bit coin”. A major household appliance shop chain Bic Camera announced that it will allow payments by bit coin in some shops in Tokyo. The trend may spread to other retail shops and restaurants in future. While the bit coin is not free from risk of changes of market price, it is gradually becoming popular as a means of settlement.

Comments: Bit coins may dominate the present means of payments, such as “Osaifu Keitai” by domestic mobile phone service providers in Japan, as Bit coins may be used in wide payment opportunities worldwide. Foreign visitors to Japan may benefit from payments by Bit coins.

6 Apr. Sharp to increase the number of workers to 4,000 in Kameyama factory to increase production of parts of smart phones

Senior managers of Sharp revealed that the company will increase the number of workers of Kameyama factory (Kameyama-shi, Mie-ken) from 2,000 and several hundreds to about 4,000, including subcontractors. This move is in line with Sharp’s plan  to double the production volume of camera parts for smartphones.

Comments: It appears that Sharp is successfully walking a turnaround path since its acquisition by Foxconn (Taiwan).

7 Apr. Almost perfect precision with only a few centimeters’ errors, the second GPS satellite made in Japan released to the public

“Michibiki (guide)” the second, a quasi-zenith satellites of Japanese GPS (Global Positioning System), was shown to the public at  the Japan Aerospace Exploration Agency Tsukuba Space cCnter (Tsukuba-shi, Ibaragi-ken).  The launch from the first to the fourth unit is planned by the end of this year aimed at the full use in 2018.

Comments: This level of precision may allow a wide variety of use of locational information.

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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Fresh & hot from Japan, from 20 to 24 March, 2017

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20 Mar.  Asian Youtubers to promote Hiji-machi, Oita-ken, all in Chinese

Tourist information board of Hiji-machi, Oita-ken, engaged a Chinese “YouTubers” (those who earn income by posting their own videos on YouTube) to create a promotion video of the town and posted it in its own Home Page (HP). It is a new way of attracting overseas tourists to their town. The city started the promotion targeted at China.

HP of Hiji-machi –> $http://www.town.hiji.oita.jp/page/h2903_syoko_hijimachi-youtuber-movie2017.html

Comments: It is an innovative way to promote a town as a tourist attraction to foreign travellers.

21 Mar. ”Linear motor car effects” felt in Nagoya, land price doubled in Kanayama district

Rapid increase of price of op commercial areas in front of Nagoya Station has been spreading over the neighboring areas. According to the land price announced by the Ministry of Land, Infrastructure and Transport, two spots nearby the Kanayama Sougou Station (Naka-ku and Atsuta-ku of Nagoya-shi, ) were newly ranked in the top five of Aichi Ken. This is due to effects of investments in land in the areas neighbouring Nagoya, in anticipation of the land price increase upon the opening of linear motor car.

Comments: Lack of control of land price would distort social distribution of the wealth. 

22 Mar. Straight defeat of AI due to a Come-from-behind defeat, World Championship of Go, Iyama also got the second defeat

The World Championship of Go, where champions from Japan, China and Korea, and AI (artificial intelligence) are fighting, took place in the Japanese Go Society Kansai total headquarters of Osaka, Umeda, on the middle day. A Japanese Go player, Iyama Yuta crown (27), the sixth Crown, was defeated by Mi Ikutei  (21), the ninth dan, of the China. The Japanese strongest AI “DeepZenGo” lost again by a great come-from-behind defeat by the Champion of Korea, Pak Jon-Fan, the nineth dan.

Comments: It’s not SF that AI fight against human champions in Go.

  • All the news items are picked up from “Asahi Digital”, and summarized and translated by Europe-Japan Dynamics. The articles are not an official translation by the Asahi Newspaper.

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