-«r J HD 28 .M414 ALFRED P. WORKING PAPER SLOAN SCHOOL OF MANAGEMENT PIONEERING A "FACTORY" STRATEGY AND HITACHI: STRUCTURE FOR LARGE-SCALE SOFTWARE DEVELOPMENT Michael A. Cusumano September 27, 1987 WP#I886-87 (Revised) MASSACHUSETTS INSTITUTE OF TECHNOLOGY 50 MEMORIAL DRIVE CAMBRIDGE, MASSACHUSETTS 02139 PIONEERING A "FACTORY" STRATEGY AND HITACHI: STRUCTURE FOR LARGE-SCALE SOFTWARE DEVELOPMENT Michael September 27, 1987 A. Cusumano WP#1886-87 (Revised) JfPT LIBRARIES RECEIVED Michael A. Cusumano MIT Sloan School of Management '^/ll/^l Software Project Paper #3 Working Paper #1886-87 HITACHI: PIONEERING A "FACTORY" STRATEGY AND STRUCTURE FOR LARGE-SCALE SOFTWARE DEVELOPMENT INTRODUCTION This paper or companies not such corresponds of and to job shops, flexibility larger study examining the question of whether a choosing manage to well as in product of and mixes and technology and Japan process and policy like; criteria a survey of determine where firms stand to what defining software 38 in a relation to followed at firms identified as being close to the ' . approaches, is clearly the U.S. and Japan. a structures more effectively, even with (3) (2) observable (1) in There appears This spectrum, including the to sample of software be nothing inherent in technology that prevents some firms from creating strategies organizational software. that The research project technologies. There are several interrelated conclusions: software as approaches and detailed case studies examining the technology and policy implementation facilities in strategic batch organizations, and factories exhibiting various degrees the U.S. these criteria; "factory" range of a activity spectrum usually associated with "hard" manufacturing, proposal factory model engineering technological as environment for software might look facilities complex a development with software organizational the in the includes factory are large-scale as considerations i.e. part of is The a to manage product and process development relatively new and complex technology such as basic technological infrastructures to aid software process management are Japanese firms But, (4) Hitachi and by -- "flexible standardized comp^onents factory" type (modules paper analyzes what software factory and established of and competitors focused strategies code) of then on in reusing customizing process. programming) end Hitachi was a is the significant for performing both facility the of software first and Hitachi has made available extensive documentation Two, probably the most difficult aspect Software Works (originally its the world, technical is implementation the applications in systems. -- One, two reasons: and US. . This systems by the NEC group and Toshiba, and followed led are significantly ahead of most -- Fujitsu implementing products between Japanese and U.S. firms. not significantly different Hitachi for has this facility's extended its technological factory historical and approach factory policy both to applications and systems software development. I. THE STRATEGIC AND STRUCTURAL SETTI NG HITACHI: Corpo rate Organizat io n and Products originated Hitachi company Tokyo. in the town In neighborhood 1986 of it $20 1908 as in of Hitachi, had the machinery Japan, approximately billion dollars. a 80,000 Hitachi communications and electronics equipment, (36% of fiscal (21%), 1985 sales), home appliances couple s repair section hours by train employees major of area and of a mining north of in the business was sales including computers and software although the company also sold heavy machinery (24%), industrial exchange equipment and other products machinery (10%). In (9%), and telephone computer sales among Japanese companies during 1985, Hitachi ranked fourth, behind Fujitsu, Japan, and NEC, but was traditionally the market leader and second IBM to most For belonged to history, its Computers, has organization Hitachi's the company operated groups: 7 large mainframes in very-large mainframes. in which of factories, of IBM 28 Electronic domestically centered around These 1986. in Consumer Products, Devices, Components and Equipment, Industrial Processes, Power Generation Industrial Group headquarters retained and Transmission, and International Operations. responsibility for sales, but factories engineering and manufacturing. have been responsible for product Factories also operate as independent profit management based on 6-month budgets centers, with factory. Plant managers are thus responsible for engineering and production costs, the financial setting production of company policy has required amounts, factory and any managers to for each expenses; related and standardized institute controls and procedures for budgets as well as engineering and manufacturing management. software. There have been This is what led no to exceptions, the birth of not the even the in world's first case of software factory. The Computer Group Computer exports for Hitachi have been to domestic sales specifically with to be of to (about 17% IBM models unique designs. in 1985).^ as well relatively small path than IBM to comparison Mainframes are designed to compete as to be fully compatible, For example, the AS/9000, and appeared introduced around 1982 compete with IBM's 3081 model, used denser circuitry and flow in a shorter data- provide considerably more computing power for the dollar IBM speeds equivalent to the and at when compared levels computers introduced to compete with Hitachi new 3090 Sierra series, the AS/XL 60 and s more expandable and more "a expanded performance with IBM system. "° similar a according to Datamation, mainframe, cost-effective to also, v\as It IBM machines with 80, also achieved computing the half number processors of lower price. a The 19S2 incident which in engineers were caught by the FBI Hitachi attempting to buy information on the 3081 operating system, particularly new IBM had decided features that that to help This has Hitachi actively sought hardware and its process of also is information success technical development, the in in microcode ("firmware), on information software engineers gathering have also aided the performance It imbed to developed -- two computers helped formally engineering" "reverse may underlying that hardware and software long a is Hitachis history of apparent computer in using parametrons (a used primarily business computer a Ministry of Japan in in 1959. International in 1957, during the The model Trade and then 1950s), for and a machine was this Industry research the Electrotechnical Laboratory (ETL), and largely completed during institute, 1956 at products. compatible Hitachi engineers began experimenting with this technology device transistorized design even the mid-1950s and completed their first model solid-state IBM machines and software Hitachi mainframes and software. of however, case, or suggests in years the the United States. transfer in before 1962, this technology commercial introduction of transistorized The main ETL designer, TaUahashi Sigeru, to Hitachi and moved to the where he headed hardware product development company until 1980.^ Along with in-house research and product development, Hitachi also benefited from it RCA between licensing agreement with a manufactured RCA-designed computers, as resale under the Hitachi The production label of in computer products RCA failed to before along 1961, for purchasing direct as well as with the independent dual strategy within Hitachi: a to introduce machines design new products competitive and then withdrew from computers expertise software, technology of This two-fold approach turned out to be extremely important: from abroad. When new technology of RCA sold as well which tlnrougln Japan. arrangement with RCA, reflected development and 1970, 1961 that 370 and subsequent mainframes. the 1960s late had sufficient internal Hitachi 1970, in in would eventually compete with the IBM Equally important, Hitachi engineers had an opportunity to cultivate independent and develop skills a distinctive, factory- centered approach to software development.'^ computer group Hitachi's in mid-1980s the consisted which started with 348 employees in 1969, separated into two sites during 1985. systems for systems software mainframes, (such It grew language nearly 3000 before being has continued to produce operating mini-computers, as to and office processors); hundred thousand. scale customized control software. as well as corporate producing applications computers; and programs. The smallest programs were several thousand largest several on-line lines of related data-base code and the Omori Software Works produces large- programs such as real-time banking or factory Research and development on new hardware technologies software development tools and design concepts took place ^^ In addition, computer-related products facilities . main six The Software Works, two for software and four for hardware. facilities, of Hitachi and had services, numerous including in two subsidiaries 23 software companies 13 H ITAC H I COMPUTER G RO UP. CA. 1986 LLNE FACILITY Hardware Kanagavsa Works EMPL OYEES PROD UCTS 2,800 Mainframe Computers Odawara Works 2,400 Peripherals Asahi Works 1,100 Smail-Scale Computers 80 Semiconductor Devices Device Development Center Software Software Works 1,400 Systems Software Omori Software Works 1,500 Applications Software 1,200 Basic Research C O R P O ATE RDD Central Research Labs Systems Development Laboratory Systems and Applications Software Technology 350 Corporate Prog ram s for Eng neering an d Manu f actu ri ng Improvement i The software factories took part and improving various aspects analyzing in of all company-wide engineering refinement improvement and of the factory concept procedures) for software, and of engineering performance 1968 has focus of specific at and manufacturing Several corporate programs appear to have led to an increasing operations. For efforts example, been this the has a (technology in and this area. company-wide movement among Hitachi factories since "Management Improvement" (Ml) program. The major been to promote the establishment and implementation standardization, "zero defect," and of p roductivity- improvement objectives. ^ during 1969-1971, this movement took At the Software Works, the form of setting standards for design, programming, and testing activities, introducing launching a and system zero-defect a program, As next step, a in 1973 managers asked all planning personnel submit suggestions on how to improve productivity; this resulted some proposals, and study of how to reduce personnel costs and increase programmer a performance. to document control which of were adopted quickly -- such as 1437 in structured programming techniques and better debugging methods. under the Management Also 1970s, the Software through Promotion Center wide focus ways in the in production; factory staff "* program, during of design productivity, the later reliability, Management formally organized these structure, such as Rationalization a 1975 (headed by the factory manager).'" The company- recent years has centered on three specific areas and potential integrate to Works launched studies and market share. profit generation, efforts Improvement Hitachi and improve productivity in and product engineering has equally applied the concepts and recommendations hardware and software in facilities: Area Design technology Main Objective Shorter times Solutions CAD Standardization Production engineering Labor reduction Automation Process improvement Control technology Less work-in-process Inventory control Another example company, picking Hitachi out has product- is quality followed or a assurance. practice called system-design errors, Since the founding "gleaning," which analyzing them, of the involves and then formally recommending solutions and making reports to colleagues have case reports once with 1977, in procedures analysis the particular would that at the division level The Software Works adopted once every other month. approximately practice month; there are also reports a Factories objective reduce the developing of recurrence of this and design system problems such as not meeting user specifications or designing identified by customers, programs that were not "user friendly."'" IL THE FACTORY MODEL SO FTWARE STR ATEGY: Product Proliferation and Proqra mme r Shortages The drums well as simple Hitachi first for main computers input/output Thus, programs the With it became FORTRAN and to write 1963-1965, late and 1950s early "monitor"' a and few a inclusion of core possible to use subroutines higher-level more sophisticated programs. modern operating system knock-down RCA product kits; for required knowledge, except to be able An in-house in such languages Yet the hardware first computer was Hitachi a little to service the product in 1965.'^ a as still program Fortran But this was engineering or provided Hitachi engineers with both hardware and software development, 8 software machine. ^^ project, on the other hand, extensive experience scientific for which Hitachi produced from imported (model 401), Hitachi as memory and card readers during system introduced with the HITAC 4010 actually an used they did not require software except for had no interrupt features, so control programs were small. The resembling 1960s memory, and paper tape for entering programs and data receiving output. calculations. the of as well as began to strain engineering resources. in the early 19GOs, Hitachi's Central Research Laboratory took on contracts with Tokyo University, the Japanese Agency, Meteorological laboratory build to dubbed the HITAC own use and very-large a produce an operating scale and Telegraph Telephone's computer capable under the direction system ("monitor") of that unit for had to would to compiler experience developing an previous parametron Hitachi's for computers; assigned to work on software for the 5020. of two sources of computer expertise the Totsuka Works, led the in its Shimada Shozo, set out the allow perform input, output, and computation functions simultaneously. engineers main sharing, time of The Central Laboratory completed one 5020. 1964 and then, in Nippon Laboratory FORTRAN assembler and between and 20 5020 were 30 The Central Laboratory was one Hitachi at the time; the other was produced telecommunications equipment and had which company's entrance into computers during the 1950s. ^' Shimada's major source of ideas for the operating system software was MIT, where he and several other Hitachi engineers visited introduction of a Tokyo University professor engineering department. level a Research system Center. made our mouths water." Laboratory, his he next project, The They finished the the head of MIT's electrical to their GE mainframe. Shimada received a own copy which discussed several new approaches and ideas such as 2- addresses and virtual memory. "actually 1965 on MIT researchers were then developing time-sharing system, Multics, using of the manual, in In As soon as he returned made the development in cooperation first delivery of the 5020 a Shimada's words, the Multics manual Japanese version of Multics the Central comparable operating a Tokyo University's Computing with was of to in in 1965, 1968, to a Tokyo University . '^^ couple years before The 5020 was short-handed software 8000 family was incentive required library. were at in first at RCA use the contrast, on a on faster a and a Designing processing Hitachi. to Laboratory, and Hitachi Business an effective exacerbated the Both for of system, the disc strain provided also adequate major a for program system software. TDOS, but this While RCA Japanese customers disc system, a functions all system. drive disc start to RCA's TDOS around modifying Electronics operating with system subsidiary, assistance from Hitachi TDOS and DOS volume resources in s Research Central two subsidiaries (Hitachi Electronics Service (The groups from and Hitachi a Software and Electronics Engineering, large-scale 10 Yoshizawa subcontractor, provided the basic structure on-line on-line of found 80 engineers Sakata Kazuyuki, Engineering), Hitachi capable software-engineering on the project, the Totsuka Works, Machines. greater v,ss mechanism Yoshizawa remained together and formed the basis software (which new "disc operating system," DOS.^^ The manager work on and the series operating system, larger prompting Hitachi this, 1966 and create Spectra system 1967-1969, major feature of the IBM 360 was that hesitated over whether or not to develop insisted during The 8000 developing not developing to two magnetic-tape stations for compilers and the program least available to RCA the of strategy RCA was priority Introduced IBM 360). formal a because decided the with create to development, Hitachi Japanese version a compatible partially series. ^4 HITAC 8000 and the project team became businesses for management gave Hitachi as the for suited not of Engineering the company's established of batch in and largest 1969.) EDOS, which allowed processing and was completed in 1969; became the foundation for Hitachi's current operating this system for large-scale computers. another Yet software operating system for Telephone (NT&T) 8700/8800 within started 1968 in Software Works this project, well as in NT&T Development work large-scale The performance goals batch first processing, commercial project provided hardware design, engineering. and was switch to Hitachi Furthermore, its with not software the for that resulted from the 8700 logic in and on-line 1972-1973, in The computer powerful experience and a Hitachi series, Nonetheless, IBM-compatible software large-scale successfully targeted which in short fell 370 the as development. chips, IBM-compatible machines, M-series, came deliveries as extensive integrated-circuit domestic market for to be used for to sharing, time research institutes.'^" which IBM introduced while the 8700/8800 was the was the 8800, version, had multi-processor, multi-virtual memory capabilities, as computing. ^° several an HITAC the called The commercial operating system primarily to universities and of very-large scale computer, processing). 1969. 0S7, was 1960s Kanagawa Works and was then taken over by the the at a (the data supported real-time build Hitachi telecommunications the in project sponsored by MITI and Nippon Telegraph and a to tackled Hitachi project large relatively was later able which competed directly against the IBM-370 and subsequent series. ^^ Systems programs were not the only software orders this period. manufacturers Since had few companies in-house Japan in software outside expertise, to of Hitachi Hitachi the and during computer the other mainframe producers had to design several large applications programs. Hitachi's case, these included a series of n real-time reservations In systems for (the first programmable system Hitachi delivered the Japan National Railways in throughout Japan); 1100 terminals with 1964, on-line currency-exchange and deposit systems for the Tokai Bank (1965) and Sanwa Bank (1967), and production real-time systems control Toyo Kogyo for (Mazda) and Nissan (1968). 31 The banking systems were particularly important, because most Japanese banks the time were buying these from at beginning of shift a which software, connected 200 processing center in remote terminals Nagoya, was a several Savings in American New completed the and Jersey thoroughly dismayed how at Tokai initial Due working properly. concerned estimates, of about had improving as well as in to to a central and other he They were Chicago. in Howard including programming looked and, once they a year to get the software full Hitachi was not paid for this absorb the costs itself."^ The made Sakata and other managers their Tokai the during 1963-1954 to systems, Illinois took it U.S. the banking difficult the project this and Continental system, around Japan Before taking on the job, to the contract terms, extra debugging time and frustrations airline Developing ' particularly difficult but valuable learning engineers spent nearly two months observe system miarked the Hitachi's systems. domestic according to Sakata. experience, Hitachi more to IBM; ability to control cost and particularly schedules and time bugs. Evolu tion o f the Fa ct ory Strategy During the Sakata, late believed that, 1950s, engineers at Hitachi's Totsuka Works, including since computers relied on digital technology similar to the telephone exchange equipment they were already manufacturing, 12 Hitachi would be able responsible officially in and The computers, section this group started section into of two planning "service" was intimately linked to software since, had to learn from potential customers what their Hitachi needs were and then be able to provide adequate programs. to first language processors (mainly 1963 was divided in the government and university business, and another for private The concept contracts. This factory thus established also software development for about 10 engineers and 1960 with sell Hitachi, in programs), the engineering service section. utility sections, one for to manufacture computers independently. ^ hardware design began and to was group another which Closely related technicians trained for maintenance. management next decided Hitachi division 1962 in along with a to new factory establish to a manufacture in dispersion the make it then led the the new plant took charge of writing or revising software for the new RCA machines Hitachi was planning that hardware, The hardware design Kanagawa Works (separated from the Totsuka Works). section computer separate difficult the to to of a scarce to resource But managers worried offer. -- write software for the new 8000 series. creation of centralized system -- software engineers This situation program department Kanagawa plant, RCA."^ The new department formally brought together the group headed by Sakata and modeled after a would similar in department in the in the Central Research Laboratory that had been developing software for the 5020; the software section at the engineers division already level in the (although Kanagawa Works; physically located and in Works) that had been studying programs for pre-Spectra series produced in program a the RCA Kanagawa machines Japan. The core group consisted of about 60 engineers; 13 Hitachi hired another 20 personnel, for total of 80. a Underlying the establishment of the design section and Sakata factory product." a 5020 the yet be to department, according to the head successor as department manager s in struggle with time. noted delivered, "Work Fujinaka, was increasing logical step was software factory. a In rapid growth of fact, As peripherals (Odawara) or so by from train (Kanagawa Works). in August Totsuka (a computers, 1970s). In expanded was established Hitachi result, a a but Totsuka, vshere it built its this separate 1966 and purchased another site in leaving most few others, for both in current the of company's was still for facility Hadano, an hour mainframe The design and production departments moved 1968, in The building housing the Kanagawa Works, Yokohama, Totsuka-cho, insufficient. a "'^ the hardware and software areas. in so Every day was it. the computer division caused acute shortages of space and personnel located 1969, With the 8000 series going on sale and software for new structure couldn't catch up with rapidly that the The next this was also 'the anticipation that we would develop software Fujinaka Satoshi, as of ' to plant Hadano departments software at engineering and small-scale remained within the division's staff organization until later in the some systems February 1969, the Totsuka building was separate factory -- the first software facility in officially the world upgraded to a referred to as a "39 factory. ^^ ••/ t. According Yukio (the successor), to first and the head Sakata managers of the Kazuyuki who operated the new Software Works), (who served as factory, Nakatani Komoto Nobuo deputy general manager during the 1970s), there were two reasons for following this strategy: 14 (his One was the acute shortage software development productivity. of software engineers and the hope that centralizing in a single Despite a nation-wide would bring about an facility search had considerably less than their target still and The second major was reason software engineers, for to staff the new factory decision corporate a increase to stop in they 1969. in treating software as simply an engineering service that went along with hardware but to view as it benefit of improved ability the to control believed they were making RCA, quality. fixing to bugs. in RCA programs, way of guaranteeing quality. manner; Hitachi as an executives Shibata also and would little not was attention bugs the tolerate to establish discussed the at it software factory made a highest levels of in a a casual company. the President Komai gave the final order to organize the Software Works independent over the profit center, and nature name of in they company "call in it a new the establish a "Software Center." keeping factory. "^^ not understood Hitachi's traditional facility; some engineers wanted to But President Komai intervened and ordered This the world had established sufficiently with A debate within Hitachi ensued a was despite the fact that no other factory for software production, and Japanese university professors criticized Hitachi, was as an forcing Hitachi, according to Shibata, to find organizational structure and control system. that managers such emphasized not Japanese customers Nor was the decision was believed, conscious departure from the approach used at a discovered better managers Hitachi Hitachi where software quality was paid The more disciplined environment. a in approach, factory and should be produced and could that with guaranteed quality, inspected, key separate product a to be 15 maintaining that produced through software engineering and factory methods. -^ The Factor y Architects The figure central manager (currently department Consultants, 1941 in from technical a Totsuka the engineering he Works. and school a is high senior managing director of Nippon Business -- to the two-year machining When of a Hitachi Works in manager Sakata had entered Hitachi work as training at to the in army, a in machine operator in-house Hitachi's Totsuka's he joined November 1945 and began developing in well as studying as improve productivity. to In new computer inspection first In job tasks, 1957, Sakata glimpse of a computer he was reassigned and made the I960, which had about 30 members. section, management separated computer development from the Totsuka and the established inspection engineering department. Kanagawa the which section, customers. program department, was Then, in 1965, with continued Sakata plant, now located The following year he became head division's engineering service department, Hitachi the for as accounting department and got his 1962 of stint operations an IBM 421 tabulating machine. manager well additional and conveyor systems scheduling, moved for times as and gone school production engineering department standard and program After a process factory's system projects software subsidiary). Hitachi a key several for the of Sakata Kazuyuki, the individual who had served quality control systems was as development the in within of the as the computer which did systems engineering for the establishment of the system Sakata became responsible for software production and quality control. Sakata's major frustrations were 16 bugs in the software Hitachi was RCA divide among the A dozen and the shortage of programmers, RCA, from receiving hardware engineers not working on the 5020 learned how Hitachi ASSEMBLER manuals continued then Hitachi customers. program department system the in bugs correcting This experience, as well production management and inspection, and convinced Sakata that there had to be prevent breakdowns due to software for as nature of other Hitachi software was Sakata recalled, errors: such "even though a it new the hardware in computer engineering service, in way better produce programs and to setting the same quality standards for and products, the rejecting would always there that or eight software to the background his as reviewing shipping before to FORTRAN, and RCA's COBOL, HITAC 3010 and 4010 machines; seven for the RCA and from programs had to he machines, the 5020 project, and applications programs. software by studying and translating write which notion that "Thus," bugs. be was software, we called [the new the facility] a "44 r ^^ factory. 4. The key basic was ideas Shibata department in section Hitachi's of who became responsible individual currently Kanji, He the Software Works. computer division engineering at Shinshu University, first in the implementing for head the of Sakata's engineering joined the engineering 1964 majoring after and later moved department and then the production administration to in service electrical the system program section Software the of Works. Shibata quickly management soon training became the in-house expert on after he joined Hitachi. One aspect program for new engineers required them during their second year to write a paper on 17 software-engineering a to of take theme related the company's several to their months work. and then give a Shibata chose to collect data on programmers presentation. RCA machines and working on software for the the 5020 -- much hovs time they spent each day on different activities and different types of programs. Programmers did not being watched closely or keeping records, like Shibata, so they stopped doing this the system program department, in too valuable But Sakata, Shibata's supervisor read his paper and decided this data was Sakata then hired female employees to keep the not to collect. which became the basis records, 196G. in recalled of the Software Works' production planning and control system.'^"' III. FACTORY ORGANIZATIONAL STRUCTURE AND MANAGEMENT Control Philosophy With the managers decision became management establish to obligated procedures to and software a innovate in software management by devising systematic controls on the process There was product quality. treat software as an management systems and Sakata control. "art" little evolved In centering on Shibata and engineering and costs, flow, opportunity, then, for Hitachi managers to "craft." or software Hitachi company- wide accounting adopt thus factory, believed Hitachi's and standardization was it hardware factories, the possible components apply to the same concepts to software. In particular, equivalent serve as the came believe to similar to Shibata wanted programmers to design modules that would what that you of standardized we had find for to hardware parts. introduce hardware, 18 a and "Around 1970 we components in the control system Software Works we established a committee to take this up as members soon however, realized, a "software that The committee special project." not is sufficiently standardized to be treated the same as hardware components control." changed their priorities product standardize manufacturing, committee then design, and just first, had this as they had to find standards establishing adopted name the done been worry about components then started committee original and decided that, for A activities, Programming "Structured way to hardware in control. all a They special while the Methods Committee," believing that structured programming techniques would provide a way to standardize the software design Company engineers next process. spent several years studying these techniques from available literature, well programs analyzing as improve the design had Hitachi became discussed more widely was This structure. already written before structured industry journals in find to and ways as to programming adopted by other companies. 46" addition to their central objective of standardization, In of Sakata them to believe that bugs) In for and other Hitachi managers were most improvements likely to in productivity and quality (reductions in come from better long-term maintenance, better process control. as well tools Developing involve visible and in and management systems. in attempt charts and documentation for "visualized" production control system a because software engineering did To pursue these objectives, they decided raw materials. then visible as became an especially important goal, development hardware production had encouraged they viewed these as higher-level languages and modularization software, analyze, the experience to manage, much the same way as 19 the overall process of not to software they saw hardware engineering and They developed factory systems manufacturing: production management, including man-pov,er, controls; and for product engineering, inspection. The controls involved support-tools and with systems, process, motivation the a mixture strong for and product quality, including standardization, design, and automated during late 1970s and production and the (See Table) ' pursuing and manual of efforts 1980s toward computer-integrated production. Initially, provided controls for that factory-type product-engineering systems was to be able to inspect software products, any other product Hitachi manufactured, But quality. turned out a to side benefit of the system of controls, be the "minimization improvements significant and thereby be able in of problems." productivity, thus like guarantee to according to Shibata, This resulted has addressing indirectly in the shortage of skilled programmers. ° Process Flow and Organization The factory organization contained departments and functions those in hardware manufacturing engineering, accounting, product plants: and general affairs, managers did not view the factory organization consolidated some functional and centralized artificial much the same way primarily conceived engineers composed of as other design of and engineers testing 20 Hitachi over time, departments as they software (railways, banking, the Omori Software Works. software the software training. static; applications industrial) development in a second facility, Hitachi as inspection, intelligence and computer graphics), custom large-scale all as added design areas, technology evolved (such as for well as planning, similar tc development around activities. the Data on process world: in as man-pov\er allocations ca. number (total 1985 indicates this workers) per process of Hitachi at an accurate conceptualization: is went into planning and design, 5% to coding, Software Works roughly 50 to 55% 30-35% to debugging, and about 10% to inspection. ^ The organizations and process flows somewhat different for were systems software as opposed to applications software. the of As seen the table, in Software Works began with three design departments for distinct types system development (custom applications engineering), programs: programs (basic and on-line programs for the National applications or industrial software), Railways, customers). institutional programs For (large-scale NT&T, systems system real-time and other banks, the software, design departments were responsible for design, program construction (coding), and debugging, however, high specializing separated with in from inspection level done by different department. separate At Omori, done by systems engineering departments was design a industries or functional areas, program construction and system testing. and In this this was clearer division of labor between design and "manufacturing," according to Shibata, Omori operated more like systems software as well to do coding, but program construction a in there "factory." There was a division of labor for the sense that younger programmers were asked was no as at Omori. organizational ^" 21 separation of design and SOFTWARE PROCESS FLOW AND DIVISION OF LABOR^ A SYSTEMS SOFTWARE (Hitachi Software Works) Pesig n Depa rtments Basic Design Functional Design Structural Design Coding Stand-Alone Debugging Combinational Debugging Comprehensive Debugging Final B. ^ Inspectio n Department Initial Inspection Planning Documentation Planning Inspection Program Compilation Product Inspection CUSTOM APPLICATIONS SOFTWARE (Omori Software Works) Sy s t m En qinee r nq D ep artments System Proposal Compilation Demonstration Estimate P n>g ra mm ng Depa rtments System Construction/Consultation System Design Program Implementation Conversion System Test i Inspect io n an d Quality Assurance Inspection Final Follow-Up Service 22 SOFTWARE FACTORY ORGANIZATIONAL EVOLUTION A. Hitachi Software Works 1969 Organization Chart ^^ DESIGN DEPARTMENTS ADMINISTRATIVE SECTIONS SYSTEM DEVELOPMENT Administration Inspection Engineering Design Groups (6) SYSTEM PROGRAMS Planning Group Design Groups (2) Accounting and Control General Affairs COMPUTER TECHNOLOGY SCHOOL ON-LINE PROGRAMS National Railways (2 Groups) NT&T (4 Groups) Banking (2 Groups) Government (1 Group) B. Hitachi Software Works 1986 Organization Chart^-^ Product Planning Department OTHER DEPARTMENTS: DESIGN DEPARTMENTS: No. 1 Systems Programming No. 2 Systems Programming Database Programming Data Communications Programming Language Processor Artificial Intelligence Computer Graphics Small-Scale Systems Programming Engineering Documentation/Manual Development NT&T Information Processing Systems Inspection Computer Center Service Software Education Center General Administration Purchasing Accounting and Control Software Technology Center C. Onrori Software Works 1987 Organizational Structure and Functions SYSTEM ENGINEERING DEPARTMENTSPROGRAMMING DEPARTMENTS Banking Hospitals Analysis, Planning, Design Implementation Inspection & Quality Assurance Local Government Industrial OTHER DEPARTMENTS Media Distribution Program Support Accounting Contract Service Program Technical Support Center System Design Automation Computer Center System Simulation Test Payroll Networks Tool Development 23 ^"^ A aspect flexible managers move to personnel department, such as departments in arose Software Works on being groups within each department or difficulties, they could the add manpower appeal the to ability groups within and 600 500 (around largest a example, For between of 900); about 100 programmers, with of Managers could to the project. had generally NTlT department about 30 members. of given a was among between freely departments were then organized into groups sub-groups however, factories, problems if Hitachi the with people, both of also appeal to engineering to help solve project- related Engineering Department and the Software Technology Center for problems or develop tools considered to have factory-wide relevance. "^ Dep a rtmcnts and Functions Staff PRODUCT PLANNING The Product Planning Department in 1970 to centralize planning activities dispersed among the system program department, section. the Responsibilities example, the Hitachi's Itel in U.S. the compatible. Computer Planning To Liaison These assist Office in in but also for exports this the to to effort, Mountain such as In 1974, Hitachi View, Software 24 Works also nev\ for determine policy OEM make the Hitachi hardware to (control) compete directly with included preparing for activities in products up promotion conferences and studying how Department for which Hitachi was designed series, the IBM 370 family. set and the administration planning included beginning with OS7, department M program area, large-scale operating systems, for Software Works was launched the in established California, which administered exports to fully in the directly. IBM 1972 a Product This served as an office "information on pipeline" IBM, replacing RCA, and 1978 was absorbed by the San Francisco office of Hitachi America. " late department became involved the 1970s, unbundled software technical contracts. from and hardware, product pricing as in the Hitachi of overseas department, software the Software administration in In in ' ENGINEERING (PRODUCTION ADMINISTRATION) department originated This section, of Works. It engineering the and was moved Kanagawa Works, the 1970 in to began with two sections (engineering and administration) and 36 The engineering members. in computer division, other section served largely as a liaison group for the Hitachi and factories, providing subcontractors, explanations and documentation on software-product pricing and progress on product development. production The administration management and process was section control responsible (scheduling), as well for as administration of the computer and software centers attached to the factory. This group standard set and times studying software productivity. monitor design It and inspection, for in out of the factory budget. department later became software from full overseas also well as the System Development Laboratory Technology Center (established was responsible cost helped develop control as other tools, (established in in 1975) control and systems to conjunction with and the Software 198X). General-use tools were always paid Other sections departments: and for Japanese CO documentation/manuals section.''" 25 of the original procurement, which subcontractors; engineering purchased and the INSPECTION department originated with the SoftvNare Works This and has followed the strategy of developing inspection and control techniques based on actual operating The manager data. factory head, as and debugging, bugs while and in an all Hitachi factories. important tool program a is has and used input/output all to the testing been the "needle probe," to identify correct to directly addition to overseeing In and to revise estimates The inspection problems. the department also operated the SST, established conditions reports development and provide data in countermeasures formulate department this of which simulated user 1977, in generators defect circuit to detect bugs; organized the design review task forces, which include reviewers from several different departments, including inspection; evaluated the performance of programs information and at locations; took charge bugs and developed methods on developed department customer the had factory's responsibilities of maintenance; testing bug forecasting for of for system. compiled potential In defects addition, the programmer training and helped develop tools. ^^ support ACCOUNTING AND CONTROL The members factory's how to cost treat of this accounting orders, department system. sales, set up A major problem and income. have maintained in the Kanagawa Works. a project's the beginning was Management then decided development expenses for systems software after then charge these back to the and to total completion and Payments for applications programs for customers were included with the hardware; the Software Works received payments by submitting in-house order tickets. 26 Essential to the calculations were the standard times for software development activities, all by the engineering (production administration) department. ^ set SYSTEMS ADMINISTRATION (OMORI SOFTWARE WORKS) department originated This systems department, consultation from 1973, in which developed and Sakata, Software Works, department divisional and centralize introduction to the standardize the of first department responsibilities for mainframes programs to 1985 made The run on them. for to the required institution of standard times corresponded to the move of this The department financial controls for leased moved the systems administration department in which 1974, this effort their of preparation in in moved manager, part as activities, Software Works. the to design M-series additional personnel to rewrite SC (system consultation) Software Works the head of Fujimoto, the deputy general division's applications large-scale programs for the government and private customers. the computer the to systems."' the Omori, took over Hitachi then also Tokyo site, and programs. this a separate factory for applications MANPOWER CONTROL The basic tool standard times for basic design. Hitachi all manpower control Hitachi's software factories phases of the development process, in has revised these once programmer productivity. discipline an engineering activity began in in Since the establishment of the Software Works, managers improvements for in per year, This to attempt the mid-1960s, is beginning with a committee of keep to up study with and when programmers the Kanagawa Works began recording data on computer time and personnel 27 required to develop particular programs. Guided by Shibata, Hitachi engineers had enough procedures for development, and data actual estimating both placing initially confidence labor to Hitachi used and 1967 hours on made 1969 then in establish to machine information this inauguration of the Softv^a^e Works by job formal program for The tickets. necessary to adhere it company-wide budgeting and cost-accounting procedures, which s standard times basic as accounting units for all engineering and production activities. "We were perplexed," recalled Sakata, but they set up succeeded each drawing in class up formal programmers, of standard times based on for committee that and activity for The and experience. training their each a standard times consisted of debugged program steps per day or month, and took into account factors such as the type of program being written and the language being used. in the early planning years They collected the data a "red book" that became, the basis for the factory's current cost accounting and 1S70s, systems. these instituted Hitachi IBM began promoting the use before in controls for software standard times, of several although the System Development Corporation had published some materials discussing how to devise standard times for 1967-1968 and these provided software during several suggestions to Shibata. °^ managers early on Hitachi required different a To deal with times in tools and set this problem, 1973. systems of realized that systems than customized applications software. activities they established SC (system consultation) standard The systems engineering groups such software development as HIPACE (Hitachi also Phased developed separate Approach for High Productive Computer System Engineering) to standardize their proposals and 28 aid to made design automation. in it relatively independent Omori scheduling the to improved significantly soon after the factory and continual development process, Accurate standards and tools move the applications departments to through the compilation was established, different of site. Planning and the easy The evolution programmer data actual of each phase of refinement of planning techniques. were considered classifications for essential to both the planning and budgeting systems, which, for each project, took into account the and experience classifications service in speed output team of Programmer members. were determined largely but not entirely by their length company. the performance, potential according to Sakata, increased was Seniority fairly a accurate indicator of of because actual data showed that coding markedly with experience. But, at any given time, only between 20 and 30 percent of programmers actually met standard times, and it generally took 2 to 3 years to reach standard times for coding (and longer for design) Programmers were classifications. the completion also tested They were made of each course. were tested through competition charts and code to solve individuals and groups, as a reference for future before managers to take certain In in certain addition, courses, all raised their official and then tested programmers twice contests, where they had problems. The contests and management recorded the results a year write flow to involved in at a both data base planning and scheduling.^ PROCESS CONTROL Establishing a capability for accurate planning and process control were 29 his most enduring problems, claimed Sakata. because Hitachi s These were especially important computer division sales department would always announce new computer products and give specifications out Works had developed the systems software. This placed on softvsare managers to meet their targets. applications programs, upset specifications tremendous burden a Customers also wrote their own software was delayed or changed Hitachi if through documents covering the half first status of each development the of Large projects include several hundred people, divided into teams process. about the . The Software Works' process-control system monitors the project Software the based on the advance specifications, and became very systems the if before with thirty parcelled responsibilities equally out to of members. team Time and manpower estimates rely on actual data for past projects, including the annually revised standard times. For example, architects scheduling for determining program steps this the will according to Shibata, general take. project functional This the of Using the and the system how many the most difficult part of scheduling, is Then they look to the development process and calculate and particular programming experiences project. involves specifications They next standard time objective for the entire project. levels first and thus the most error prone. standard times data for each phase a given a standard times as of a look at the skill the employees available for reference, they work schedule based on required program steps, man-months adjusted for out skill a and experience levels, and computer time. At the inception diagrams and then a of the factory, managers began computerized diagramming 30 tool, using simple arrow PERT Network System (PNET), keep track of projects and draw up to linked this experimentally with Computer- Aided (Hitachi accurate, however, program often have managers preferred negotiations. 1973-1974 and which all CAPS introduced an as progress actual to a since parts work can that of a continue; these types of problems through personal with month a diagrams on-line of to discuss (formalized problems and in potential and until system in the factory 1978 to track and documentation, of This system involved the assignment of every terminal specific planning, production control modules thus went back to Hitachi process for completing debugging and design review. programmer lax, was convenient to use arrow diagrams on paper, because arrow written HICAP especially serious other before be to Most too the schedule changes they usually made. manually the completed met once it problems. prove Hitachi 1971, in during project progress meetings addition, In solutions), they found of deal to not schedule was the be to did It other involved computer control the letting planning simulation program a Planning). and master schedule. a well as as a data central base to keep track of the process flow, mainly through the completion of documentation.""' In lists, the debugging process, which indicate problems and progress toward solutions, including from 1973-1974 a Hitachi used and the basic control mechanism has been check system of tickets PX (or tags) for accompanying documents. "° accompany daily control charts during debugging, tickets to PY tickets for daily control charts during inspection. accompanied control charts identifying specific defects tickets designated control charts used during planning, Other tickets correcting indicated defects. the Overall state of monitoring 31 or of the bugs, design, work-in-process, PZ and tickets while PW and coding. progress debugging process was in also incorporated within CAPS. To determine what percentage managers submit reports on completion to the of of modules. been has project a program a If completed, designed is have 100 modules, for example, and 80 are completed, then they consider project the Softv\are Works people -- finish close not One done. 8Cfc the target. best people available This was because of projects."^ systems used the control of the but understanding facilitated rapid results the and generally -- environment factory IBM's experiences contrast, In at managers can add projects are falling behind, if anyone, just to that, is the of with the 360 operating system development was that adding people tended to make projects later, due communication the to needed time to familiarize ^ new personnel . QUALITY CONTROL defined engineers Hitachi preventing the creation of bugs performance specifications. and so, other maintainability measures Sakata, of control, maintenance as high-level well of directly a affected program, languages, product as second, and, stage, first, as, meeting gave them primary importance. and other factory managers and software for so Hitachi also to tracked these the mid-1970s, adopt structured in and formal systems for quality engineering. short-term decided These productivity by facilitated making it and long-term possible divide job tasks more easily and to test completed modules and programs. 32 Two manufacturer were the To improve quality control secondarily.' Shibata, the design Hitachi that and portability design methods, process quality in control These two factors directly impact the customer according to Shibata, features quality to 1971, In of the factory instituted control charts indicating the generation bugs and status corrections, of developed by Sakata, to test and then completed, added another the to to actual bug generation time-series FORCST. "needle probe" a bug estimates.'^ system: tickets P to indicate corrects of bugs. PX-PW-PZ process-control control and estimating. as ticket for different types of of 1974, In system, quality bugs were also design effort project and data on tool programs became the basis program for forecasting control these were simplify to instituted This also provided programmers with examples of bugs the program designate types of software, to help them avoid making similar errors.'"^ part Hitachi 1972, In At the same time, the needle probe statistical technique, program being developed when about 60% was the overall ticket-control and B tickets changes, linked revise a well as review in of a 1975, in different Included as sessions from around 1974 (particularly used for applications programs where Hitachi had to meet customer specifications). focusing on system particular instructive to present to all addition, the system-leaning practices, In problems design employees in and that solutions the Software Works, seemed supplemented other quality assurance activities. Following the practices of other Hitachi factories, with assistance formalized as of well engineers automated as during the mid-1980s, referring its to quality its Development System the control system as and tools "SQE" Laboratory, procedures (Software Quality This maximized not subjective measures of quality but program Evaluation). "reliability" from the Software Works, ( shinraisei "support and improve" , and consisted of reliability a set of procedures and tools by determining the number of defects to and the software and providing quick analysis of the causes of errors and then 33 feedbacl- make corrections and prevent to errors correcting before products continual improvement quality Previously, reach primarily control The objective was customer. the the level of "built- in" in by predicting and errors similar tsukurikonii ( involved the design quality. ) evaluations statistical of finished programs, without systematic error analysis, feedback into design, or control over future design efforts. Two basic should analysis information initial involve allow to number broad a feedback useful through design One was underlay the SQE system. policies for measures of phases all and sufficient development, of These measures, inspection. the error that and tools, from analysis techniques \^e^e also supposed to be sufficiently flexible to adapt to changes in programming environments over of and procedures development the software; of computers. personal should tools easy be therefore, should It The second was time. be to use everyone for made the Hitachi noted that the entire set these that tools two involved in available for characteristics-- defect analysis and feedback to design to build quality into future products, and simplification widely, of insuring Japanese at of tools least quality and procedures some measure control to make of success practices in they sure were used were both characteristic -- other "hard" manufacturing reports on 7f> industries '° . The procedure basic customers to estimate was followed how many to latent (1) use defects information with in-house data on bugs uncovered, defects in new, similar products, errors" through testing. as well as its workforce, and As long as did not a (4) change too much, from this predict the number of attempt to locate these product type and 34 (2)combine existed, (3) bugs its "built-in user environment, Hitachi engineers felt they confident could use particularly programs, data historical since the predict to captured made data bugs latent possible it new in revise to estimates continually. simple statistics were considered most Several development analyzing errors: program processing number of design and content percent configuration; the of (number size program written size of development languages; high-level in code); of lines program program; number size of the the program; estimating and in or steps of structure; man-hours given the man-hours given the useful number checklist of of test given items comparison of the estimated and actual sizes of the the size of the program; program; patterns formed by bugs detected. The SQE estimation, tool consisted set quality test estimation, three of and -- subsystems design quality comprehensive quality estimation-- each covering different phases of the development process. The design quality estimation subsystem was design stage. For program listing to designed for. objectives bugs, program as size, a used was drawn table development progressed. in Second, in the planning up for each Third, as a checklist reliability part of the error analysis procedures, program was written coefficients drawn from to historical model data new the software and the make sure the software performed the basic functions establishment" using first, the number of bugs expected to be number detected was used reliability, first the on its was "quality a occurrence of factors processing content and structure, percent written in such as high-level languages, number of man-hours spent on design and testing. The test quality estimation the different testing steps. subsystem was use A QC graph chart 35 to evaluate quality actual during bugs detected on one against estimated bugs axis likely possible to monitor visually occur to progress in different in stages; error detection, this well as as made it provide immediate "feedback" to design and "feedforward" to improve later testing-before estimates program completion the at called development each of how many bugs were estimates on a To track the data on product was completed. a likely evaluate a and undetected, bugs versus generate to Hitachi used FRCST. The comprehensive quality estimation used This inspection. phase, remain to actual generated data program on the basis of subsystem was by other the used final subsystems two eight criteria covering in to product design, product quality, and operating quality. PRODUCT CONTROL This consisted department in of a formal system, Kanagawa Works, the both for by started storing the program source and accompanying documentation for future reference, either or add enhancements. to copies of all programs in 1976, In a to correct started the practice of Hitachi separate program system location files bugs keeping guard against destruction to from earthquakes or accidents.'' STANDARDIZATION In addition to standard times, from the inception Works, Hitachi managers made "job standardization" not establish long-term fixed initially met almost weekly But the to standards determine 36 the top priority. Software They did because personnel and technology standards, were changing continually. a of what establishment committee work standards short-term should be and codified these as the Hitachi Software Standards (HSS). This entire effort involved a deliberate attempt to standardize software as Hitachi standardized the development and production of material products; factories specifically, managers tried prevent programmers from designing, coding, to and documenting software products standardization technique productivity, raise to In Shibata's opinion, probably the most important flow was the entire process found Hitachi high-level with of different ways. in when combined particularly languages and group-programming support systems such as The fewer bugs that resulted was one advantage; another was CAPS. that standardized documentation made inspection easier." According to the official the standardization effort was factory history, extremely difficult and not very successful at The factory managers succeeded: structured design method portability, despite the same time, the control and system" control 1973 in instituted and then in to facilitate 1977 Meanwhile, the factory manuals for each programming language used The structured programming method standardized approach to design: determination of internal specifications manufacturing (coding); and logic structure interconnections represented Hitachi 37 layers those registration coding began with adopted a user requirements; (2) (the program's between the the facility."^ (the program's functional of a [modules] standard published logic structure); (3) "physical" structure); (5) inspection (testing the (input/output) "components (1) determination of determination of external specifications (4) in At resulted.'^ general-use software tools a however, program maintenance and standardized a time, depended on the establishment programs that often lengthier factory system. effort Over first. of layers. and debugging). a The program and the First, programmers wrote language tool, CEG (Cause-Effect Graph), and decision tables to identify inconsistencies or flavss in specifications the They then structure. logic functions partial natural in develop to and used down the broke algorithms up the program (their hierarchical arrangement function object implement to The physical structure represented the specifications. in-house an as into desired the actual modules making well interconnections) as and data (data hierarchies, data and module interconnections, and data-point relationships) . major Hitachi's design were objectives structure as closely as possible to the logic structure; and physical structure; (3) input subroutine several " (2) physical the to standardize the of the physical structure as This latter principle required each module to have independent as possible. only one make the elements to match to (1) and one output, and each module Documentation also followed a to be in effect standardized format. a "closed addition, In support tools relied directly on the standardized design structures. AGENT (Automated Generator of External Test Cases), for example, automatically generated test items from the cause-effect diagrams and served as a logic-design System) served support as a tool. ADDS (Automated design-support for tool Design and Documentation the analyzing design information and generating documents Related to standardization was the physical in capability developed for both system and applications programs. did not assume programmers to a reuse scheduling Potential reusability targets was more considered easily at 38 the than very by graphic form.° to modules reuse Since standard times software, meet or surpass standard times, or cost programmer would structure doing this allowed and helped managers meet without reusing beginning of modules. designing a and program, facilitated through the standardization design of through structured programming. The tradeoffs, according to involved Shibata, enhancements; structured programs designed to contain always perform as well as newly written programs. used was that, Hitachi then, in if it and reusable parts did not In fact, general rule a they had to revise 30% of the code terms of functional performance, needed from scratch. Only performance was better module, a in write the module to 1985 did Hitachi managers require programmers in to start keeping data on how much code they were reusing, although survey data the in paper previous ranked Hitachi the in category high for this measure, exceeded only by Toshiba, which was over 50% (See Appendix table on Analysis"). "Reusability reusability rate was effort considered as addition, were a series of part of the 1970. A tool in for (Hitachi Translation in 1977. Both of 1968 for the reusability, and reusability Program Application Library), an on-line was transferred programs for to set first Software Works the different up within the machines, in HITRAN Program Library), was separated from the HIPAL system these were for Program Library Network) was it then translating software, the transfer of programs among facilitate (Hitachi and systems standardization data base of applications programs and utilities, computer division of applications programs. in systems to HIPAL different machines. releases The most opportunities about 90%.°"^ however, Hitachi viewed as being In new For a in-house use. HILINK separate system launched in (Hitachi Users' 1975 that made possible for Hitachi customers to exchange programs they had written.'" TRAINING 39 Training was integral to standardization and the general success of the Consequently, factory effort. the Softv.are Works. in an education program was set up along with who had studied hired both software engineers Hitachi the U.S., as well as high-school graduates which the company had to tram But the expansion itself. over 900 1971 in created Software Works personnel from 348 of severe strain on instructors; a was to make greater use of large meetings, based tests programmers, on to the judge the Standards Software Hitachi abilities well as use the as and 1959 to temporary solution a results of among the contests programmers.^ of in Managers recorded the results of these tests and contests and used them (along with length-ofservice information) to classify programmers as an aid estimating time and in cost schedules."^ The education Hitachi, after which system engineer, applications employees computer and depending on whether they were During were classified and as the first trainees and year programmers or years the during which time they factory, system Programmers with between junior leaders six years engineers and ten years from second received of in remained the software Software the courses They "junior" in 12 systems in in took programming. basic for in received the grade of chief programmer or individuals software. science scheme extended classification or Vvorks, introductory classified through additional as fifth courses. experience were designated Between their ninth and and received middle-level courses. tenth years, programmers rose to the status of planners or sub-leaders, while undergoing advanced training. Chief programmers continued their education and software studied subjects such as reliability, or semiconductors, and computer network technology. 40 use of design review, There was however. In separation between the systems and applications factories, distinction a program design of where there was no organizational program construction (implementation), Software Works, Hitachi from young employees who started out doing coding eventually could become designers. implementation versus area, up to Omori, however, there were separate career paths for In engineers system rise a specialists implementation. in Within young employee might move up from doing the simple coding to detailed design and planning, but would not normally switch to the system engineering implementation and area. The reason was that systems engineering and different sets of specific although all skills, in outside managers customers felt required which employees should specialize, systems engineers generally spent about two years working program implementation before moving over IV. for Hitachi in to the high-level design area."' THE TOOL SET The initial essence of the factory infrastructure at was Hitachi primarily a combination of policies to promote standardization and the use of "good" practices division of labor such and as structured in set of tools to facilitate largely in software management that appeared to defy through management alone. six areas of specific A group programming evolved afterward, response to several problems complete solution design. A Hitachi memorandum cited concern: 1. The 2. Increasing scale, complexity, and diversification of program functions invisible nature of the production process 41 3. Pressure for higher 4. Difficulty of improving production efficiency 5. Shortage of software designers, reliability especially experienced designers, and managers Increased work hours for management. ° 6. The and engineers response the Software Works at at Systems Hitachi's arrived during the at Development late Laboratory 1970s was to develop computer-aided systems for functional support (such as design, coding, and and testing) group and the CASD (Computer-Aided through Software Development (Computer-Aided Production Control System for Software). CAPS on relied (Integrated act vities °^ The . development Department of in System into and the Software Works System); and areas CASD and standardized broader effort labelled ICAS System), Laboratory the with in tools, Both aimed production-management Development these technologies, a Engineering Software product-engineering support or also evolved Computer-Aided integrating i subsystems various They themselves methods. for policies man-power, process, and quality control through CAPS for policies The factory's general. in and inspection functions for systems software were design, standardization, integrated programming has at full"> tools and directed the cooperation of the Engineering related to production and quality control. 90 Computer-Aided Software Development System (CASD) CASD was software mainly programs a response and grew out to the of a 42 increasing design and size and complexity debugging tool of Hitachi developed during 1975-1977 controls centralize to supporting for standardizing design through the use of structured programming, and high-level languages for system construction, multiple and remote computer sites, and program library.^' central evolving improvement, standardizes which and quality. flows, 1979 increasingly a variety of in and scheduling in well as to improve cost, process underlying CASD: One was each phase of development and then utilizing support tools. also through be automating improved support these through only not much as possible of what has supported only with design, each phase a single system. of but the This the words of the architects of the system, to "modernize" in usually been considered tools for discrete parts of the CASD Structurally, that Second was standardization for tools development process and then integrating them into was an attempt, CAPS, to software could be improved by standardizing the tasks performance could for linkages activities as reliability ^ that as for tool a and with technologies There were two basic assumptions labor productivity became also it parallel in manpower planning and over control After a manual activity, a development process.^'' included three interconnected support subsystems, programming, and The design-support subsystem testing. constructed the design documentation and analyzed the design specifications. The programming-support subsystem made using a high-level language, subsystem then helped tested, as as well possible it and analyzed the results. devise the test and items evaluate the comprehensiveness run of to write the system The testing-support the program being the tests after they were run. The design-support subsystem relied 43 on a structured-programming tool called Automated Design Module Design Hitachi's and Language MDL made (MDL). standardize and formalize design specifications system placed this documentation, central database, design review process. ADDS covered as it well as possible to as the module level; the at corrections or changes, Printers and terminals The documentation. in provided the capability tables the to and charts produced by such as the functional layered structure areas ADDS into a and checked for obvious errors, thereby assisting the design "visualize' well as (ADDS) System Documentation of program, a module specifications, the data flow path, module connections, and summaries of the modules, functions, and changes. The programming-support subsystem for coding, design called the Static to catch standardized language a This also facilitated and what H'tachi compiler Code Analysis (SCAN) system. Coding reviews were supposed examine the program a components were main HPL's program bugs was largely a Programming Language (HPL). the Hitachi review. on relied early as and also provide a way to engineers were frustrated because this Hitachi logic. possible as manual process, and was affected significantly by the different levels of ability of the To address these problems, the SCAN programmers. system received static-code analysis data from the HPL compiler and put out reports for use various program control structure the module Then, control the coding in in the These reports analyzed the graphic form, the program's data structure, and structure SCAN checked review. and results relationship of between modules these analyses with design and data. information from ADDS. 9^ The testing-support subsystem was quality control and intended simultaneously productivity 44 to tackle by problems facilitating of the identification bugs of and, correspondingly, the This subsystem had four objectives. devoted to testing. detail the to determine the conformance of the program to was to establish testing standards for was impossible -- tools One was to clarify potential to its given program, a recognizing that operating conditions. automate as much of Another specifications. the In addition, testing process evaluate the comprehensiveness of the tests. as Cause and Effect Graphs (CEG), it the as Several Automated Generator of (AGENT), HPL Test and Debugging system (HPLTD), and External Test Cases Test all designed well as test to subsystem was other man-hours of design specifications, on the assumption that the test items had in possible, reduction Coverage Manager (TESCO) -- were integrated within the system to perform these objectives.^" Computer-Aided Production Control System (CAPS) As with problems. CAPS focused on Collection inspired by several persistent managers wanted greater standardization and control Hitachi the process flow, 1. CAPS development was CASD, delivery times, quality, and overall costs. In of particular, the following areas: and analysis of management or process-control accordance with the structure of a data program 2. Chronological analysis of each type of process-control data 3. Imposition of controls on the process limits of design documentation 4. Japanese character and graphic output through 5. Multifaceted quality analysis 6. Construction of a a non-impact printer data base for actual data and standard times 45 in 7. Automatic collection of data 8. Capability for on-line instantaneous utilization the of automated output. ^^ The manual introduced procedures computer-aided 1967 and 1976 provided the foundation for an initial and management analyzing and productivity 1969 both and 1930, historical tools is clearly preceding the start CAPS, of tools which Hitachi completed by establishing and current a means formal of evident in of programmer on data The incremental evolution management. project policies of major milestones 1967 1977 and version between collecting production-control Kanagawa Works and then the Software Works between the at and of these the following chronology CAPS development. ° Completion of a system for computing labor and machine hours for software development (Kanagawa Works) Establishment of standard times for software development (Software Works) 1971 Establishment of programmer standard times ability coefficients and amendments of of an estimation and budget system using standard times simulation system for resource planning Completion and a Completion of a PERT Network System diagramming system for schedule control Implementation of a manual system for processing and quality control 1972 1973 (PNET), time-series an automatic analysis of test Completion of a system for budget- vs -actual expenditure control for man-hours and machine-hours for each project and department . Implementation of a manual system for document schedule control Implementation of a manual system for job process control Implementation of a manual system 46 for productivity analysis and control Completion 1974 of productivity a system for each analysis project and analysis and department Implementation 1975 of a manual system defect for factor quality control Development of 1976 a time-series program for forecasting statistical (FORCST) defects Establishment of standard scheduling system a Implementation of structured design methods Central structures; CAPS was to features improvements of the by requiring programmers to use But successful implementation of the computer- system control depended equally on several One was high-performance computing hardware technology. in and clarification of program standardization the factory accomplished this structured design methods. aided the power, so that numerous programmers could be on terminals connected to the same data bases; this was done by installing Hitachi's largest mainframes, the M-180 and historical these with CAPS M-200I-I. data base recording standard times; (Mass Storage System). base management several also systems, also system; this demanded increased storage capacity past Hitachi filled ADM this this wanted gap with to make was achieved through the use to formalize the large-scale data- a the development of Managers (Adaptable Data Manager). printers that printed Japanese characters managers required efficiently wanted simple visual graphic output, process flow; and comparing present data, came through another Hitachi product, MSS To use MSS most notably and data for the as well development it easier to follow the of non-impact laser beam as English. process for In addition, new software products and then shorten the time needed for program development; Hitachi 47 has been most successful a series CORAL and procedures of prototyping (a An example technology can Controlling seen These EAGLE and HIPACE, as Program Development used are mixing primarily the in management of incorporation as Omon and in and policy computer into Sakata had earlier decided it contemporaries, wanted computerized system that would enable more in determining first, ability; production actual standards job managers such as and, To well to facilitate project, central to as the accuracy to the classifying Shibata these into a estimates time Standard times process. second, follow to required, programmers by Shibata wanted to be comprehensive but stressed while simulate, incorporate to Hitachi that standard times be as simple as possible, as critical was necessary and however, CAPS. these accounted for over 90% standard-time estimates for man-days and computer time. the as and establish closely well programmer time and machine time was considered software production costs. his with System), standard times of according to Shibata and Yokoyama, because, the applications area, in ^ this of be Application tool). applications subsidiaries. such tools (Customer-Oriented CANDO of accomplishing this in covering most of the appropriate criteria. still and so they would be easy to re\ise utilization of the standard times, for each estimates and actual data were fed as the project progressed into production data base from on-line terminals. compare progress Under CAPS ca , to 1980, estimates and revise This estimates made data points included the following: type of object machine (large, medium, small, peripheral) 2. type program possible during the project. 1. of it a (control program, simulator, etc. 48 on-line user control, generator, 3. process phase (basic design, functional design, etc.) 4. degree of difficulty (newness) 5. production volume (number of steps) 6. language being used (assembler, COBOL, 7. machine being used In cost overruns and addition, and Yokoyama believed, correct problem, this late engineers Hitachi actual (1) working hours wrote an the minimum necessary times software program and of result, scheduling and manpower needs and schedules automatically. consideration: etc.) deliveries were the inaccurate daily of FORTRAN, This Shibata planning. algorithm to calculate two factors took To the committed programmers; into (2) required for different phases for each type of standard times. Another assumption Hitachi at was that there was a relationship between the progress of a software project and its an ideal system would thus integrate production quality; quality control automatically Therefore, data. number the defects of they likely designed for each according to the type of program, number of steps, factors, management and CAPS to estimate phase of development, items tested, and other based on actual data.'^^ CAPS techniques, programs relied completely and then used visible. programs divided on base into modules, use of ADM control system designed ADM design, testing, then produced a for structured (Adaptable Data Manager), automatically checked actual progress versus estimates, as each module completed. programming structured design technology to make the structure of this A data the of a program was detailed printout tracking the schedules for and inspection, with additional information on documentation 49 and quality (errors found items test in in countermeasures ) the specifications, design documents, or manuals; bugs and coding; Three . subsystems -- bugging, and inspection progress control and provided printouts additional CAPS was more than sense, provided served as As production a with CASD output files were source file; nor Hitachi register not did to the completed and just was control developed automatically CASD also to analysis. In this also analyzed data and it betvseen the in the a CASD CAPS program to CAPS. major area of development between 19S3 and 19E3, systems two fully CAPS production database For example, the not example, For parallel. however, '^"^ CAPS was system, send corrected modules automatically ICAS program. links in sent to automatically feed data Int eg rated ICAS and system for production management that a quality but program modules CASD, and daily-schedule were also integrated within CAPS -- information v\ith Automating the information flow was, and central and tool for quality control. a integrated bugs of documentation for visual capability for process monitoring; a causes the of programming progress control, and testing, testing preparations and control, analysis making library on bugs from CASD it possible automatically to to from CAPS. Comp ute r-Aided Softwar e En gineering System (ICAS) represented a mixture methods and procedures), but was aimed methods and computer-aided tools. It of at technology and standardized incorporating even more advanced contained four main features: (1) an integrated methodology for the structuring and abstraction of software, using a formal need language and graphic notation, analysis, requirement definition, 50 throughout planning, a life cycle defined as programming, testing. operation and maintenance; cycle; (3) an programmers "intelligent" to information of The basic philosophy database. "methodology-free" tools, methodology development using of the personal computer, a life- allowing use the tools by having dialogues with the computers; management complete (4) workbench, phase for each interactive tools (2) leaving up it the to but phases all approach this of employ, to for was user present to using decide to relational a develop to and not which on computer-aided tools with a "fixed development methodology of multi-purpose use," allowing users to develop software quickly by using having to worry "without the tools about which methodology to apply." Requirements definition involved stepwise refinement functional, and logical conceptual model, data description and defined functional algorithms with only three control elements -- sequence, PAD (Problem Analysis Diagrams). Several algorithm into simplified tools From the system being designed. programmers determined the control structure, abstracted and formed data modules, functional the of the procedural, in repetition, ICAS statements needs then written analysis and selection and automatically in a using PDL or -- converted programming description ( the language. PPDS--Planning Develop Systems and FRAME--FormaIized Requirements Analysis Procedure to Method), and requirements definition (RDL/RD (Requirement Definition Language/Analyzer) Design-aid tools System) and as MDL included ADDS (Automated (Module Design Language), intended to automate coding documentation and source programs. and it 51 and Documentation already part of PDL/PAD (Problem Design Language/Problem was Design CASD, Analysis Diagram). completely consisted of a integrate program as well PDL/PAD design logic design based on structured programming, tool, and a to tool convert automatically design documents into high-level language source programs (PL/1), or viceFor example, departments writing versa. much System) was coding of 30V as TESCO, and CEG, (SEWB) and a infrastructure discussed use to database stored these tools The quality control portions being refined Works, methodologies development generate system Level support library. '^° modules used provided type before a reduce and Hitachi costs communication in an relational from complete the use set of an reusable locate interface Software within applications it retrieving the ICAS development Engineering ''° customized from modules to systemparts a possible exisitng parts database.'*^' integration for Approach automated while and procedures PAD system, making designs ICAS of applications for (Effective Productivity), the in Software Hitachi in EAGLE and high-level a Laboratory, HIFACE, to operation actual in project, EAGLE factory-type methodological infrastructure and technological facility The manner. already linked to the also modules for other functions from Even were design, Software tool EAGLE was nev\ provided Other subsystems Development were important we'-e CASD. of Software Works guide to (SEDB) integrated ICAS of part as Systems the at High Achieving 1986 of Most software. to as Omori and AGEKT, Workbench Engineering Database an in Design data from each tool input into the computer.'^'' all Software Works Software Engineering Softvsare (Database Test-aid tools included A above. able to automate as DBDS addition, In '^ for designing databases tool a tasks COBOL were in . applications between the company's 52 Hitachi at system engineers factory- Hitachi's intended development a HIPACE by Omori HIPACE to facilitating and customers and applying management. project procedures to system development and standardized well-defined, It the set process flow follows: as analysis, system planning, system design, program design, program construction, test, transfer (to customer), installation Data Flow diagrams and evaluation. engineers used Structured First, (SDF) to analyze customer needs. Planning Procedure to Develop System (PPDS) and Standard Procedure to Develop Systems (SPDS) provided then and documentation project-management A phase of the development process. worksheets referred set of Breakdown Structure (WBS) provided the format for planning and To programming, and testing tasks. design, (and reliability structured analysis, engineers reusability), HIPACE-SD structured programming (usually then COBOL or each to as Work of the actual long-term maintenance used structured design, for in facilitate for standards HIPACE-SA for and HIPACE-SP for PL/1).^^ The EAGLE system extended the HIPACE methodology by adding four computer-aided functions: design through database project on testing, design (1) conversational language processing from system using understandable menus; easily specifications and program a (2) implementation, as central well as management (tracking information from the standardized work sheets defined in SPDS manual) the maintenance; automated (3) system facilitate to construction of development new source programs standardized patterns ("skeletons") and components (sub-routines); and and from (4) automatic compilation of maintenance documentation. The process two steps recording the are in a flow the in using analysis of EAGLE was data types "data dictionary" database; also clearly and this system design and program documentation 53 defined. interrelationships is in The first and their followed by registration of a specifications database. At point, this standardized modules are identified and nevs central program parts library, system being developed, programs using the if This makes applicable. new and although customers, reused modules. EAGLE next generates standardize. (module-level) detailed The source program users. individual carried out Hitachi of to it sells modules" "data that these be more difficult an outline of the program from the and then produces a source program. add particular functions wanted by to commands are automatically generated and test (1984-1986) to develop the ^ '^ . EAGLE system have focused both more flexible for meeting customer needs as well as more it factory environment stressing division of labor and maximal a standardized interface edited makes also EAGLE systems which tend conversational language (Japanese) in appropriate to use then Finally, Recent efforts on making specifications is a possible to "assemble" it company engineers have found are easier to use than processing algorithms, to in and existing components are identified for the standardized modules available as products with the to registered been improved; has (Customer-Oriented it hand, the conversational and the system now handles PL/1 and Application Program language for writing specifications software makes One the one components. in Development Japanese), in -- System addition to a CORAL Hitachi COBOL. N'ew own menus, rather possible for customers to design their than use only the ones Hitachi provides, to add unique features to programs being constructed. and The system data-communications now be used also can programs, in addition to to construct data-base business-applications programs EAGLE has also been modified to work more smoothly environment, to allow more people 54 to divide up the in a tasks time-sharing of system development and have better access The result, overall EAGLE generally usually measures As period). by indicated of lines in the code table per below, "productivity" in programmer EAGLE also system design and substantially reduced For hypothetical mean a program taking reduction in a components. ^ in has (Hitachi given time shifted more a necessary for testing. year to develop without EAGLE, development time ' that programs designed with is improvement 2.2-fold a this into would according to Hitachi data, show effort a to the library of reusable to 5.4 months, with this testing being reduced from 4.8 to 1.4 months and program implementation from 4.8 to 1.9 months. system automation of Around 1986-1987, the Omori Works using retrieval for a design automate some such as documentation construction, data intelligence artificial the system engineering tasks, also introduced techniques to hardware and software configurations, and system simulation Without EAGLE With .' ^^ EAGLE "*^^ Development 100 (12 months) 45 (5.4 months) System Design 20% (2.4) 38% (2.1) Implementation 40% (4.8) 36% (1.9) Test 40% (4.8) 26% (1.4) Program Another system Products), that, if which is save on to a appropriate for library a of design basic in development, shorten the is 55 (Applicable Program Hitachi will use as a basis for The objective time APP programs for different applications particular customer, building semi-customized systems. costs time of this required, and approach was guarantee at to cut least "stable quality banks (on-line operations." in banking, As of credit 1957, APP core programs evaluation, broadcasters; hospitals (accounting); local customer existed for information); governments (residents information systems, library information systems); finance (accounting systems); personnel management and payroll calculation; videotex; computer- room operations and control.''^'' V. ADDITIONA L OR GANIZA TIONAL FLEXI BI LITY Where Hitachi to customer meet relied on needed more organizational or geographic diversity has needs than approximately 23 Consultants Engineering (ca. (ca. 2500 2400 Computer Engineering its two subsidiaries. employees), employees), (ca. software it has The largest were Nippon Business established established 1500 employees), classified these firms into ten groups, provided, factories in in 1959; 1969; established and in Software Hitachi Hitachi 1982 ^ MicroHitachi with several overlapping: (1) General systems and applications software houses (Nippon Business Consultants, Hitachi Software Engineering, Hitachi Information Networks, Hitachi Computer Consultants, H/tachi Computer Engineering; and the regional companies Hitachi Chugoku Software, Hitachi Tohoku Software, Hitachi Chubu Software, Hitachi Nishibu Software) (2) Industrial-use control systems (Hitachi Industrial Engineering, Engineering, Hitachi Process Computer Hitachi Control Systems) (3) Semiconductor and micro-computer software (Hitachi VLSI Engineering, Hitachi Micro-Computer Engineering) (4) Information-processing and telecommunications systems (Hitachi Electronic Service, Hitachi Communications) (5) Video and audio equipment, and personal-computer systems and software (Hitachi Video) 56 (6) Semiconductors and electronic devices (Hitachi Electronic Devices) (7) Precision instruments software (Hitachi Instruments Engineering) (8) Automotive electronics (Hitachi Automotive Engineering) (9) Robotics, control equipment, and business personal computers (Hitachi Kyoba Engineering) (10) Personal Computers (Hitachi Micro-Software Systems) other addition, In produced factories Most prominent was the Omika Works, products. computers and terminals that Hitachi Hitachi's in Omika also software factory producing control power generation and transmission group had another thousand programmers writing software. a specialized real-time control industrial used the versions of CAPS and ICAS, although these had to be modified for the different architecture of the control computers. There were also several hundred programmers switching systems automation software software, A brief discussion Hitachi with a tools. of group has managed disciplined development. worked as part factories, to Kanagawa Works, Totsuka and Both design writing Software Engineering illustrates combine flexibility Kanagawa of this subsidiary permanent workforce in how the serving customer needs in and manufacturing engineering the the Totsuka Works writing ""^^ Hitachi Some sections of the at computer hardware. for CAPS and CASD used the and at of approach to software some 2500 employees Hitachi's in-house software while other groups did customized systems development for variety of Japanese customers. 57 a wide The company was organized around design departments specific industries or applications, Unlike the Omori Works, sections specializing financial systems or hospital systems. detailed design ovs n and coding, although implementation as opposed to systems engineering did in Program department. each in in there were no separate implementation departments; departments did their the design exist link specialized and libraries reusable parts were also developed for specific industries or applications, databases corresponding to the departmental organization structure. There was the functional software Hitachi customer a had, division factories; relative where the customer has Software a Engineering. expertise, of lot including how much expertise the depended on this Hitachi to the customers, labor with of Hitachi some In cases, Engineering Software would receive only functional specifications and then do the detailed design and program construction. Works, which This considerable had was done on expertise in occasion system the with engineering; Omori Hitachi Software Engineering would then serve as the "factory" to construct and test the actual program. In the Engineering's view distinguished Yoshiharu, RlD department, manager, software Matsumoto of a it was "factory not and Matsuzaki necessarily approach" manager from a the Hitachi of Yoshizo, an division of non-factory Softv\are applications labor approach. which Their philosophy, and that of managers such as Shibata Kanji and Nokoyama Yoichi in Hitachi quality, Software Works, was that the degree and costs determined whether organization or not. In particular, a of control product was made over processes, in a factory-like ;ign Hitachi managers emphasized their design j The J review procedures along with extensive (and expensive) bug analyses 58 used strategy basic reviews design careful bugs eliminate to beginning with design phases to catch bugs early tasks such as coding, and then to Hitachi Software Engineering test until FORCAST program use of the (3) applied usually served as a its CAPS, HIPACE, and methods and tools company reported and 99% at This estimates. but in an 1981 that actual with lines.) '^° this compared to between in other cases, they In from 90% and such Hitachi systems. 110% on original 300%-overruns during the early 1970s. lines of code; The projects the of as Hitachi project control. complete 98% of to for (The the largest were about 500,000 Control was exercised through separate databases for manpower, and project management; was defects of manpower souce in-house several was able it cost average project size was 50,000 bugs, to employees followed the transferred Software Engineering was also remarkably efficient time numbers the predicted Software Works or Omori Software Works, CASD, detailed elimination of boring (2) factory practices and used the tools at these facilities. still and (1) ' When Hitachi and levels are found. elements: specification functional development; in three of through automatic code generation from PAD diagrams or from reusable software modules; predict bug consisted in these were not yet linked the planning stage. As in data input procedures were automated, As did the Hitachi factories, Hitachi 1987, in Software Works, some though of the and others manual.''^ Hitachi Software Engineering emphasized extensive programmer training (1-year training periods, including 2 months of off-the-job training implementation of when they entered the company), top-down, structured budgets and project management, design and as well careful as strict controls on including standard times for programmers 59 (design and coding). up setting at the subsidiary focused first on and production auditing system project a managers Historically, (1969-1975); applying structured programming techniques productivity improvement and quality assurance through the standardization of and methodologies patterns"), their applications, and relied cataloging utilization addition In on a separate message format processing, library included programs, related in well as and specialized libraries patterns as for parts" checking, contents that mainframe such functions for Software Hitachi "common for message editing and switching, and modules the writing of new programs. libraries, (1976-1978); tools productivity reusable of program in program to These modules. generation the software and (1979-1981); tools through improvement and data-base screen ("standard for different ^^ Engineering served operating as quality reusable as systems message and reception, management mapping, also system line-overflow, error displays, program-function key code analysis, screen editing, and table Some managers assigned programmers exercises on "look-up." basis to make them familiar with subroutines stored in A Production Engineering Center was responsible libraries. new modules recommended by project managers for registration The company library. particularly actual reuse into the useful also modules, rates). Through these to monthly program the for screening in the parts programmers who registered based on an analysis of the specifications programmers were encouraged (not In general, at the design stage (between functional specifications reuse library and detailed design), gave out rewards a to policies, determine as well as all if to look there may be parts they could reuse. the use of tools such as Software Engineering was able to increase reuse rates from 60 EAGLE, a level Hitachi of 10 to 20% in early the 1980s about to 40% in depending 1987, on the department. ^^ the Since activites of numerous areas and customers, base for production control. since customers, programs. 1 9T the not have did it Engineering a rigid spread across company data centralized Standards were also frequently determined by company was dedicated Nonetheless, management strategy was Software Hitachi an and integral producing to clearly customized component stated discipline throughout the firm. In the fact, two managers who spearheaded the development of production technology subsidiary, this admitted to the after use of moving over from Hitachi Software Works, of at openly extensive training techniques to make programmers comply with company standards for program design: "To meet our production project criteria, employees. procedures any If modules have been deviate from and standardized the coding imposed standard, they on are returned to the production line."'^- CONCLUSION did Hitachi as much as not impose standardized practices or emphasize some other firms because and the diversity of significant as and structure its customers, the broadness of of even within single manage the process of large-scale Much can be learned about the patience required of a new and complex product and experience. 61 process to product Yet facilities. the first company to introduce successfully to its reusability a lines it is factory strategy software development. rationalize technology management from Hitachi's Intervievss managers documentation v.ith indicate that and study a Hitachi and technical of historical movement tov>ard the factory s model resulted from three interrelated strategies: 1) A company policy independent factories establishing of (which included both product engineering and mass-production functions) for each major product area. 2) the part of managers Belief on level strategy, well as responsible for corporate- and division- software development, for as that centralized a and disciplined factory environment, integrating product engineering and mass-production offered activities, any for improving worker productivity and quality, product as well the potential of project and cost as control 3) Top management decision executives and, a apply to management controls history foundations between of and could the company- wide a should be to technology and Works Software were factory methodological primarily policy programmers to technology or tool use tool; this as di\'isional controlled -- in a making it and accounting software engineering activities. all Hitachi of standardized , was the since it was standard also indicates introduction of Structured necessary procedure, the that Somewhere policy-oriented. programming technique during the mid-1970s. really (including any other product the company manufactured as necessary The commitment the company president) to treat software as whose development product factory, especially, and structured a programming to train the use in and of is require this new involved critical policy decisions and implementation. This 62 was because important especially became the foundation Hitachi and accounting, support general the of production-control systems, well as by defined as standard-times, factory's The rather sophisticated tools. programming structured (computer-aided) costspecific as technological infrastructure evolved after the basic policy infrastructure, but rapidly, from a few tools at first extensive an to set systems interrelated of that are Hitachi and increasingly being further integrated. A contrast between implementation the experiment offers at System some suggestions Development system containing the factory model Corporation SDC attempted both a in at mid-1970s the why one company might succeed regarding than another at this approach. factory of technological also better to introduce simultaneously a infrastructure and a policy infrastructure (set of standard procedures covering system-analysis, design, implementation, testing, and (central production database, testing tools, etc.) was project-management). technology the program library, automated documentation and there, environment and standardized While programmers dislike to programmers' other reusing seemed Perhaps code. more important was that project managers disliked giving up control factory work for the and dismantling engineers of to this infrastructure through the factory different dwindled; facility sites to develop Hitachi, policy on the infrastructure other over programmers and managers like environment. hand, a incrementaly period of several to operate within a eventually the dispersal programs, divide labor or reuse modules as once envisioned led with in little of to the to the systems capability the factory concept. developed years, the and to imposed thereby 9S 1'^"^ a training highly standardized, factory- Hitachi modified these procedures gradually and then from 63 the mi-1970s began systems to -- investing heavily and large-scale computer-aided tools in the factory-type technological infrastructure. technology-based innovating in process and tools automation came thus management by applying This shift successfully after standardized a focus in approach to both system and applications softvsare development. One might for cited physical identify excellence its automaker also has a consistently productivity in demonstrated the performance of human workers. technology its is world agreed sufficiently to The comparison with Toyota, that benefits case in in technology, in use to extend to but only (such as programmable robots) to as well as the if the into fit human workers. of SDC reinforces case, necessarily bring many as The the Hitachi and strategy to assure the compliance of managers and that, engineers or other programmers, advantages of policy suggests a Japanese levels as flexible tools, simply better process management. productivity as including highest more automation, advances alone do not technological software s largest Only after these policy innovations have introduce flexible well as manufacturing system and supplement the efforts notion The computer-based systems, preferring instead focus on process control and innovation, managers the company often a automobile manufacturing by deemphasizing the of sophisticated automation or Toyota Toyota, management. production in here with parallel efficiency. with the proper mixture the factory approach As suggested in of should offer several the first paper from this research project, these might include the following: Institutionalization or dissemination 64 of "good" technologies and programming or manaqefnent practices. The production engineering departments as well and techniques formal that, in are were responsible for introducing textbooks considered widely models; documentation project-management and programming software on standardization design-review fundamentally be to These include structured design methods; and collection tools management, engineering practices. programs, the factory training as software factories, Hitachi's in and good bug-forecasting data and control program systems; systems; libraries; wide use of computer-aided design, coding, and testing tools; and promotion of standardization of practices and reusability of code where possible. Providing a sufficient scale of people and operations to justify research and development for improving process technology and techniques. In Hitachi addition also activities to used related centralization of engineering the to System departments Development programming software support production at the in the software Laboratory tools and to factories, perform methods. Software Works provided an in-house core of 3000 programmers and supporting and staff; R%D The Omori Hitachi Software Engineering and Nippon Business Consultant added another 5000. Improving process efficiency through teamwork and better inter-qroup communication. 65 This can be seen projects two examples. Software Works the in in The figure 1985. and 1979, 1974 in was 19S6 for is with about 1970 to 13% in average an these figures late projects example, procedures, Software), and when as Hitachi mainframe new a well made it as benefits programmers added level was in this and within new a late But, tools. overturning project 1974- causing of with new projects general, in for reporting process-control, Another example Brook's projects -- more Control System for to factory environment allowed Hitachi managers to add people law be about later. (albeit people available and not just anyone) to help finish projects on time. 66 a Variations the factory, large system. support 1973 and to category. integrate manpower-control, Hitachi's to completing in years of fevs 12% during of CAPS (Computer- Aided Production functions is activity of operating possible to quality-control factory the reflect a These numbers placed Hitachi 5%. Software VNorks along with other firms leading in that the percentage of late dropped dramatically within from over 72% the founding of the factory, remarkably low 7% One, of the more The the best HITACHI SOFTWARE WORKS: PERFORMANCE DATA Year O rg anization a on foc u s l enq m ee rinq p rod u c ra isinq and product ivitv q uality (defect control) As indicated Software Works in the table, doubled within one year promoted Improvement movement and analysis the started in and system implementation the has gleaning practice, measures of to as the mid-1960s made also it improve possible to track the form.ally The central production data base performance and product quality. factory opening and factory's Company-wide and factory programs, such are proprietary. Management the of in although direct productivity figures for the increased significantly overtime, facility productivity of Hitachi employees sales labor for the programmer productivity as well as defect measures, and thereby have precise data tc use in determining throughout the technological specific and or Perhaps factory. infrastructures and product control design, methods in most for the in example, use, or whether to develop also save extensive important, the -- tools area manpower, product of a in which automating and quality, standardization, -- facilitate do not ha\e to expend languages or methods to particular support tool. manpower by used be process, engineering Individuals deciding to administrative the area of production management; in inspection and energy, new the factory of performance analysis and improvement. time developing Systems such much of testing EAGLE as and by recycling program components. In quality, Hitachi employs a measure has reduced bugs from an index of 100 estimate is that this figure program package per machine in represented installation 68 of user- reported major bugs and 1978 to 14 in 1985. approximately 0.01 One unofficial defects per year, and placed Hitachi in per the low along with other leaders category, ^' the survey. factors: this in measure that participated According to Shibata, the decrease in bugs reflected several new System Simulation Tester (SST) completed a in 1977-1979; in CASD (Computer-Aided Software Development System), another group-programming to tool product facilitate reused functions; code, standardization, reaching design and support, approximately 90% new in inspection releases of products such as operating systems; and increasing sales of essentially bugfree programs. '^° Reducing waste and redundancies due to dysfunctional behavior of individuals and the lack of an organizational strategy. High-level factory managers such as Sakata, from the engineering department such as Shibata, for personnel and technological development initial focus has factory Later efforts infrastructure possibility of managers as middle have set a clear direction Their the Software Works. been on gathering information on software technology and then standardizing methods and tools, goals. in as well and setting factory-level performance have focused on and strategy automation they and have created individuals duplicating the efforts of others reusability. has in reduced tool The the or method development, as well as writing code, and lessened the likelihood of workers engaging to in develop methods that practices reusable that are contrary to the organizational modules, or facilitate reusability, use factory-wide tools and goals standardized maintenance, testability, and the 69 such as like. Maintenance of o r ganizat ion al and technic al "flexibility." Both the factories softvtare and technological have been infrastructures policy evolving since of Most 1969. developed for Hitachi Software Works (and then introduced such as CAPS, or subsidiaries), facilities the of in the linkages between systems, documentation, testing, and the CASD, HIPACE, and EAGLE, ha\e well over a decade. or increased capabilities of adapting to Structured design in the to a also endured program library are not obsolete. the factory approach might seem to make respond has for High levels of reusability indicate as well that Hitachi programmers find modules to such as the addition of other support tools for like, non-standardized customer needs. tools other Hitachi been adaptable enough to incorporate important technical advances, additional Hitachi unique customer need it or difficult a for specific a While particular facility type of technology, Hitachi has been addressing these concerns through continued development of cu stome r - or ien ted design systems such as EAGLE, as well as the establishment of numerous subsidiaries and new factory departments such as for artificial intelligence. 70 REFERENCES 1. The current version of the main paper from this research project is titled A. Cusumano, "A Comparison of U.S. and Japanese Software Michael Implications for Strategy, Technology, and Structure," Facilities: Sloan 1987 Working Paper #1885-87 Revised 9/25/87. School of Management Another completed case is "A U.S. 'Software Factory' Experiment: System Development Corporation." Sloan School of Management 1987 Working Paper . . #1887-87. 2. Toyo Kaisha shikiho (March 1986). Keizai, Japan Economic Journal, 7 June 1986, p. 14; and, for market share data, "Nihon no konpyuta setchi jokyo," Coniputer Report (in Japanese), January 3. p. 78. 1985, Hitachi Ltd., "Introduction to Hitachi and Modern Japan" (International Operations Group, 1983); Tadao Kagono et al.. Strategic vs. Evolutionary Management: A U.S. -Japan Comparison of Strategy and Organization (Amsterdam, North-Holland, 1985), pp. 103-105; Takahashi interviews. 4. 5. Japan Economic Journal , 7 June 1986, p. 14. 6. Dale F. Farmer, "IBM-Compatible Giants," Datamation 96-97, 104. New Computers from IBM 7. "2 p. D5. . December The New York Times Rival," . 12 1981, pp. March 1985, A useful book in Japanese on the details surrounding this incident is Nano Piko, Nichi-Bei konpyuta senso: IBM sangyo supai jiken no teiryu (The Japan-U.S. computer war: underlying the IBM industrial spying incident) (Tokyo, Nihon Keizai Shimbunsha, 1982). 8. 9. RCA, Control Data, IBM, and NCR in 1958. all delivered transistorized computers See Franklin M. Fisher, James W. McKie, and Richard B. Mancke, IBM and the U.S. Data Processing Industry: An Economic History (New York: Praeger, 1983), pp. 50-51. For the Japanese story, see Sigeru Takahashi, " "Early Transistor Computers in Japan," Annals of the History of Computing Vol. 8, No. 2, April 1986. have also interviewed Dr. Takahashi extensively on computer development in Hitachi, beginning on 9 and 21 I , January 1985. 10. Takahashi interviews. 11. Shibata interview, 9/19/85. 12. Hitachi Seisakusho, Yuka shoken hokokusho March 1985, pp. 16-17; Hitachi Ltd., "Outline of Hitachi. Ltd." (1984); "Introduction to Hitachi and , Modern Japan," 13. These will p. 12. be discussed in a later section. 71 A recent book on the Ml movement at several Hitachi factories (although not inducting the Software Works) is lv.ai Masa^azu, Hitac hi-shiki Ml undo no kenkyu (Tokyo, Daiyamondo-sha, 1SS3. keiei kaku s hin: 14. 15. Hitachi Seisakusho, of the 16. Sofutouea koj o no 10-nen no ayumi (10-year history Software Works) (Kanagawa, 1979), pp. 118, 179-184. Sofut o uea Koio , p. 198, 202. 17. Nihon N'oritsu Kyokai (Japan efficiency association), ed., Hit ach no leisan k akum ei-- MST seis an ^shisutemu n o zenbo (Hitachi's production revolution -- the full story of the MST production system) (Tokyo, 1982), p. MST stands for "Minimum Stocks/Minimum Standard Time. 32. i 18. Shibata and Nokoyama interview, 7/23/86. 19. Sofutouea Koio 20. Takahashi interview. 21. Sakata interview. 22. sha, Minamisawa Noburo, Nihon konpyuta h atta tsu-sh 1978), chronology. 23. Shimada Shozo, , pp. 51-52. See also Sofutouea Kojo "Hitachi no gijutsu tables on pp. , i (Nihon Keizai Shimbun- kaihatsu-ki (2); 49-50. (HITAC 5020)-- HITAC N'uza Henshu linkai, ed., 20 nen n o ayumi (Hitachi Ltd., 1983), pp. 27-29. Also, Murata Kenro, "Hitachi no gijutsu: kaihatsu-ki (HITAC 5020, 8500) -- hadouea," in HITAC Yuza linkai, p. 22. sofutouea," in 24. Usui Kenji, 25. Takahashi Computopia , "HITAC kaihatsu interview, July 1975, p. shi (2), p. 37. "HITAC kaihatsu 1/9'85; Usui Kenji, 37; Sofu touea Kojo, p. shi (2)," 53. Hitachi Seisakusho, Kanagawa koj o 15-ne n no ay umi (1978), p. 40. Since to build upon the RCA operating system, the mainframes Hitachi has sold in Japan after 1970 are close to IBM but not compatible, although machines Hitachi produces for export and overseas sales through National Semiconductor are modified to be fully IBM compatible. 26. EDOS continued 54-56. 27. Sofutouea Kojo 28. Sofutouea koi o, pp. 56, 130. 29. Hitachi memo , to pp. Cusumano, 30. Takahashi Shigeru interview, 9/1/87. 21 August 1985. interviews, 1/9/85, 72 1/21/85, 9/10/85; Yokoyama 31. Hitachi Seisakusho, Hitachi Seisakusho shi Vol. 3, 1971, pp. 55-56, 223224; Usui Kenji, "HITAC kaihatsu shi (2)," pp. 36-38; Kanaqawa koio 15 nen . no avumi (1978), pp. 45-47. 32. Minamisawa, pp. 154, 163. 33. Usui, "HITAC kaihatsu shi (2)," p. 36; 34. Usui, "HITAC kaihatsu shi (2), 35. Usui (2), p. 31; Sofutouea koio, pp. 50-51; Takahashi interview, 1/9/85. 36. Sakata interview, 9/10/85. 37. Usui (2), pp. 36-37; Sofutouea koio 38. Sofutouea koio Sofutouea , p. kojo, 30. Footnote other sources. : pp. 17, 129. 23. pp. translation Hitachi uses is "works" ( koio) is usually An analysis Japanese. 39. p. Sakata interview. 21-22; Kanaqaw a, pp. 18-22, 69. The English "Software Works," although the Japanese word for translated as "factory" and has this connotation in of the Odawara Works can be found in Hitachi Seisakusho Odawara Kojo, Odawara Kojo 10 nen shi (Kanagawa-ken, Hitachi Odawara Kojo, 1977). pp. 4-5, 8; Yokoyama interview, 9/1/87. 40. Sofutouea kojo 41. Shibata interview, 9/1/87. 42. Sakata interview. 43. Sakata interview, 9/10/85. 44. Sakata interview, 9/10/85. 45. Shibata interview, 9/19/85. 46. Shibata interview, 9/19/85. See also Sofutouea koio 47. Sofutouea koio 48. Shibata interview, 9/19/85. 49. Shibata interview, 9/19/85; and Sofutouea koio 50. Shibata interview, 9/1/87. , , p. , p. 5. 113. , p. 119. Sofutouea kojo Shibata interview, 9/1/87; Hitachi Seisakusho, "Hitachi Omori Sofutouea Kojo annai" (Introduction to Omori Software Works) (ca. 51. ; 1987). 52. Sofutouea Koio 53. Hitachi Software Works, , p. 192. Memo, July 1986. 73 This is a general sketch of the factory's organization based on "Omori Sofutouea Kojo annai," pp. 6-7, 11, and Sof utoue a koio p. 200. 54. , 55 Shibata interview, 7/23/86; and Sofutouea contains organization charts from 1969 to 1979. 57. Sofutouea koio 58. Sofut ouea koio , 59. Sofutouea koio , 60. Sofutouea koio , 61. Sofutouea koio p. , 192-202, which 128. pp. 164-165; Shibata interview, 9/19/85 and 7/23'86. pp. 160-161; 118-119; pp.4-11, p. , pp , 127-128. pp 56 Sofutouea koj o, kojo Shibata interview, 7/23/86. 165. 156. Sofu touea kojo pp. 113-114; Hitachi Memo, "Table 1: History of Production Control at Hitachi s Softv.are Works"'; Sakata interview; Shibata interview, 9/19/85 and 7/23/85. 62. 63 , Sofutouea kojo . , p . 114. 64. Sakata interview; Shibata interview, 9/19/85 and 7/23/87. 65. IntervievNS with Shibata 66. Shibata interview, 9/19/85. 67. Sofutouea koio 68. Shibata interview, 9/19/85. 69. Sakata interview. , pp. and Yokoyama 114-115. Frederick P. Brooks, Jr., The Mythical Man-Month Essays pm Eng neering (Reading, MA, Addison-Wesley, 1975), pp. 16, 31. 70. : Softvsare i 71. Shibata interview, 9/19/85. Sakata interview. Also see Sakata Kazuyuki, "Sofutouea no seisan kanri okeru yosoku giho no teishiki-ka -- sei-teki na yosoku oyobi koshoritu suii moderu" (Formulation for Predictive Methods in Software Production Control -- Static Prediction and Failure Rate Transition Model), pp. 277-283, and "Sofutouea no seisan kanri ni okeru yosoku giho no teishiki-ka -- doteki na yosoku: sakidori hyoka giho" (Formulation for Predictive Methods in Software Production Control -- Dynamic Prediction: Quality Probe), pp. 284291, in Denshi tsushin gakka ronbun shi (Transaction of the institute of electrical and communications engineers. May 1974, Vol. 57-D, No. 5. 72. ni i 73. Shibata interview, 9/19/85. 74 74. Sofutouea kojo 115. based on Hashimoto Yaichiro (Hitachi Software Works) hinshitsu hyoka shisutemu 'SQE " (Software Quality SQE ), Hitachi hyoron Vol. 68, No. 5 (May 1986), pp. 55- 75. This discussion "Sofutouea et al., Estimation System p. , is . 58. See Michael A. Cusumano, The Japanese Automobile Industry: Technology and Management at Nissan and Toyota (Cambridge, MA., Harvard University Press, 1985), Chapter 6. There are also several other articles and books on Japanese quality control practices, such as by Robert Cole and Richard Schonberger, that support this observation as well. 76. 77. Sofutouea kojo 78. Shibata interview, 9/19/85. 79. Sakata interview. 80. Sofutouea kojo , , p. 115; Shibata interview, 9/19/85. pp. 117-118. For applications software sold outside the company, the design departments took until 1975 to set their own standards for both customer estimates and the program-development process. Kataoka Masanori, Domen Nobuyoshi, and Nogi Kenroku, "Sofutouea kozo sekkei giho" (Software Structure Specification Method), Hitachi hyoron Vol. 62, No. 12 (December 1980), pp. 7-10. 81. . Definitions of reused code: Project Reuse Rate = Number of Reused Steps divided by reused steps plus new steps plus revised steps times 100. Cumulative Reuse Rate = Cumulative Number of Reused Steps from Version divided by Number of Steps in Current Version times 100. Shibata interview, 7/23/86. 82. I Yokoyama interview. 83. Sofutouea kojo . p. 84. Sofutouea kojo , pp. 7-8, 124. 85. Shibata interview 86. Sofutouea kojo 87. Shibata interview, 9/1/87. 88. Hitachi , p. 117; 124. memorandum, "Table 1.2 Background and Conditions Affecting CAPS Development." Regarding ICAS, see M. Kobayashi et al., "ICAS: An integrated Computer Aided Software Engineering System," IEEE Digest of Papers-Spring '83 COMPCON (IEEE, 1983), pp. 238-244; and Kobayashi Masakazu and Aoyama Yoshihiko, "Sofutouea seisan gijutsu no saikin no koko" (Current Topics in Software Engineering), Hitachi hyoron Vol. 68, No. 5 (May 1986), 89. . pp. 1-6. 75 90. Interviews with Shibata and Yokoyama, 7/23/86 and 9/19/85. Kataoka Masanori, Hagi Yoichi, and Noqi Kenroku, "Sofutouea kaihatsu shien shisutemu (CASD shisutemu)" (Computer Aided Software Development System, CASD), Hitachi hyoron. Vol. 62, No. 12 (December 1980), p. 33. Kataoka and Hagi were from the Software Works; Nogi was from Hitachi's 91. System Development Laboratory. 92. Interviev\s with Shibata and Yokoyama, 7/23/86. Kataoka Masanori, Hagi Yoichi, and Nogi Kenroku, "Sofutouea kaihatsu shien shisutemu (CASD sh'sutemu)" (Computer Aided Software Development System, CASD), Hitachi hvoron Vol. 62, No. 12 (December 1980), p. 33. 93. . pp. 33-34. 94. Kataoka 95. Kataoka, p. 34. 96. Kataoka al., et pp. 35-36. al., et Shibata Kanji and Yokoyama Yoichi, "Sogo sofutouea seisan kanri shisutemu 'CAPS " (Computer Aided Production Control System for Software), Vol. 62, No. 12 (December 1980). p. 37. Hita chi hyoron 97. , 98. Hitachi memorandum, "Table 1.2 Background and Conditions Affecting CAPS Development." Shibata Kanji and Yokoyama Yoichi, "Sogo sofutouea seisan kanri shisutemu 'CAPS'" (Integrated computer-aided production control system for software 'CAPS'), Hitach hvoron Vol. 62, No. 12 (December 1980), p. 37; Hitachi memorandum, "Table 1.2 Background and Conditions Affecting CAPS Development"; Shibata interview, 7/23/86. Omori makes greater use of prototyping, which produces overall specifications of a program before the actual modules and code are fully written. In systems software, Shibata has felt that prototyping is not practical, since it requires too much time and 99. i . effort. 100. Shibata and Yokoyama, pp. 39-40. A version of CAPS was availabiefor 101. Shibata and Yokoyama, p. 40-42. microcomputers and used at Hitachi's Omika factory, which designed systems software for control computers, as well as at subsidiaries such as Hitachi Software Engineering and Nippon Business Consultants. The s\ stem was not sold commercially. (Shibata interview, 7/23^86.) 102. Shibata and Yokoyama, 103. Interviews with Shibata and Yokoyama, 7/23/86. p. 42. 104. Interview with Matsuzaki Yoshizo, Hitachi Software Engineering, 9/3/87. 76 Applications Software Manager, 105. Kobayashi et al. Interviews with Shibata and Yokoyama, 7/23/86 and 9/19/85. Regarding HIPACE, see "Apurikeshon shisutemu no koritsu-teki sekkei giho 'HIPACE'" 106. (Software Engineering Methodology for Development of Application Systems 'HIPACE'), Hitachi hvoron Vol. 62, No. 12 (December 1980), pp. 15-20; for EAGLE, see Hagi Yoichi et al., "Shisutemu kaihatsu shien sofutouea 'EAGLE'" (Integrated Software Development and Maintenance System 'EAGLE'), Hitachi hvoron. Vol. 68, No. 5 (May 1986), pp. 34. . 107. Matsuzaki interview, 9/3/87. Tsuda Michio, Senior Engineer at Omori Software Works, written response to "Large-Scale Applications Software" survey, 2/20/87; and Takahashi Tomoo, Department Manager at Hitachi Software Engineering, written response tot "Large-Scale Applications Software" survey, 3/6/87. 108. 109. Miyazoe Hidehiko (Hitachi Software Works) et al., "Apurikeshon shisutemu no koritsu-teki sekkei giho 'HIPACE'" (Software Engineering Methodology for Development of Application Systems 'HIPACE'), Hitachi hyoron. Vol. 62, No. 12 (December 1980), pp. 15-20. Also see Nakao Kazuo Hitachi System Development Laboratory) et al., "Shisutemu keikaku no tame no shisutemu yokyu bunseki shuho 'PPDS' no kaihatsu" (System demand analysis procedures for system planning PPDS), Hitachi hyoron. Vol. 62, No. 12 (December 1980), pp. 21-24. 110. Hagi Yoichi (Hitachi Software Works) et al., "Shisutemu kaihatsu shien sofutouea 'EAGLE'" (Integrated Software Development and Maintenance System EAGLE), Hitachi hvoron Vol. 66, No. 3 (March 1984), pp. 19-24. . Hagi "Shisutemu kaihatsu shien sofutouea 'EAGLE'-(Integrated Software Development and Maintenance System 'EAGLE' - the Enhanced Version of EAGLE, EAGLE 2), Hitachi hvoron Vol. 68, No. 5 (May 1986), pp. 29-34. 111. Yoichi et al., EAGLE kakucho-han 'EAGLE 2" . 112. "Omori Sofutouea Kojo annai," pp. 14-15. 113. Source for this table 114. "Omori Sofutouea Kojo annai," pp. is Hagi et al. (1986), p. 34. 10-11. See Hitachi Seisakusho, "'86 shisutemu/sofutouea no Hitachi gurupu" (The '86 Hitachi group for systems and software) 115. 116. Shibata interview, 9/1/87. 117. Interviews with Matsumoto Yoshiharu, R&D Department Manager; Matsuzaki Yoshizo, Applications Software Department Manager; and Takahashi Tomoo, Applications Software Department Deputy Manager, Hitachi Software Engineering, 9/3/87. 118. Denji Tajima and Tomoo Matsubara Computer Software Industry in (Hitachi Software Engineering), "The Japan," Computer May 1981, p. 95. . 77 119. Matsumoto interview, 9.'3/87. Denji Tajima and Tomoo Matsubara, "Inside Industry," Computer March 1984, pp. 36-39. 120. the Japanese Software , and Tomoo Matsubara, "Inside the Japanese Software Industry," Computer March 1984, pp. 36-39. 121. Denji Tajima , RE.D Department Manager; 122. Interviev\s with Matsumoto Yoshiharu, Matsuzaki Yoshizo, Apphcations Softvvare Department Manager; and Takahashi Tomoo, Applications Software Department Deputy Manager, Hitachi Software Engineering, 9,'3/87. 123. Matsuzaki interview, 9/3/87. 124. Tajima and Matsubara (1984), p. 40. Cusumano and David E. Finnell, "A U.S 'Software System Development Corporation." M. .T Sloan School of Ma nagement. Working Paper «1887-87, 1987. See Michael A. Factory' Experiment: 125. I . 126. For a discussion of Toyota see Michael A. Cusumano, The Japanese Tec hnol ogy a nd Management at Nis s an and Toyota Automobile Indust ry (Cambridge, MA: Harvard University Press, 1985). This comparison is also examined in more detail in "Tov.ard the Strategic Management of Engineering: The 'Software Factory' Reconsidered." : 127. McN'amara estimate. 128. Shibata interview, 7/23^86. 813 Ids ^^ Date Due ^'^^ FEB 20 J£ o9'«a : 3 r^^^^h^ ;^ s FEB 26 1^0 DEC 6l99t) JAN 07 1991 JANli ^^'Y Lib-26-67 MIT LIBRARIES 3 TDfiO DD4 T3t, 131