Konica Minolta Graphic Imaging USA: Colorful Changes

Manufacturing
Monday, 31 December 2007
Kazuhiko Fukushima describes the changes ahead for this graphic imaging products provider. When Kazuhiko Fukushima came to the US six months ago to serve as president and CEO of Konica Minolta Graphic Imaging USA, Inc. (MGUS) and American Litho, Inc. (MGAL), he had big changes in mind. Founded in 1899 by the Powers brothers, Konica Minolta Graphic Imaging USA, Inc. has since been a leader in graphic imaging products. During the 1920s, the company then known as Chemco supplied black and white imaging equipment and supplies to newspapers. Kazuhiko Fukushima, President and CEO In 1987, the company was acquired by Konica Corporation. Now known as the Konica Minolta Group, currently an $8.5 billion global company, the acquisition expanded its ability to meet the needs of growing US and global markets. Today, MGUS/MGAL is one of the leading graphic arts suppliers in the US, serving more than 1,500 customers in the newspaper, publishing, and commercial printing markets via a network of 50 dealers. It also serves customers in Central and Latin America and Canada through 20 distributors. Cultural adjustments Despite the company’s successful history, Fukushima established a goal for MGUS/MGAL to become the leading supplier of graphic imaging equipment and supplies in the Western Hemisphere. “Konica Minolta is now focused on a three- to five-year plan, in addition to having short-term goals. Having a clear goal for the future is important,” he said. To reach such a lofty goal, he had to adjust the company’s culture. Today, MGUS/MGAL operates under what Fukushima calls Zero Base Management and Speed Management. “The combination of these two methodologies has rejuvenated the company.” Zero Base management, in essence, creates a blank slate for employees to build on. “Many times, employees get stuck in a certain way of thinking. They continue to do something because that is the way it has always been done. Zero Base management asks them to forget about the past culture and look toward the future with creativity,” he said. Speed Management brings all departments together to refine processes and speed production using their existing resources. Fukushima explained that he asked employees to work twice as fast as they have in the past to keep up with the demand from the fast-paced publishing industry. The lean-like initiative is still in the works, and Fukushima expects to see substantial results in the near future. Increased production rates have allowed the company to introduce its new computer-to-plate (CTP) product line, including the Duros HSV violet polymer offset printing plate and the Replica NIR high speed negative thermal printing plate. These products will help MGUS convert its current product portfolio from analog to digital, as well as introduce its latest product, the LD6500 digital color printing system. Greatest asset One thing Fukushima was not willing to change was the company’s belief that its employees are its greatest asset. The most simple manifestation of that belief is MGUS/MGAL’s open door policy, which encourages employees to share their ideas, suggestions, and issues with management, and its competitive wages and benefits packages. Employees understand that with MGUS/MGAL, there is never a shortage of training or advancement opportunities. Inhouse training includes courses in corporate compliance, codes of conduct, and environment, health, and safety. In addition, the company takes advantage of the services provided by the local branch of Charlotte, NC-based The Employers’ Association, which offers training courses covering a broad array of management/leadership topics. Employees are often sent to various outside seminars, and the company provides those who wish to further their education with tuition assistance. Same destination, new location In addition to operating under new management philosophies, MGUS/MGAL is now operating in a new location. In the spring of 2007, the North American headquarters of MGUS relocated from Glen Cove, NY to Grand Rapids, Mich., where its plate manufacturing campus and wholly owned subsidiary, American Litho, are located. The move consolidates the company’s operations into one central location. “Our employees in Michigan are hard working, honest, and eager to achieve our targets.” In October of 2005, MGUS completed the acquisition of American Litho. When the deal was sealed, the president of Konica Minolta Medical and Graphic Imaging, Inc., Kiyofumi Tanida, named Fukushima, former general manager of Konica Minolta Medical and Graphic Imaging, to American Litho’s newly appointed board. After serving on the board of American Litho for a year and a half, he made the journey from Japan to the US to accept the role of president and CEO of MGUS and MGAL. Since taking on the role of president and CEO, Fukushima has initiated seven major projects, the first being to increase CTP sales. The second project focuses on improving the quality of CTP products by making adjustments to the production line. The third strives to improve business by the end of March 2008 using J-Sox (a Japanese version of Sarbanes-Oxley). The company will tackle operating costs by department with its fourth project, and the fifth is to establish a quick-response management information system. The sixth project aims to dispose of unused assets. The last project is to create a new business model that is responsive to changing market needs. “We would like to establish a firm foundation with strong teamwork and systems to increase reliability and build on our already strong reputation,” Fukushima concluded.

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