1 The Apprentice
2 Seeking a New Market in Tokyo
3 On hte Move
4 Lead by Example
5 Starting with Less than Nothing
6 A run of Bad Luck
7 Company Foundation
8 The Third Crisis
9 Entry into the Electric Appliance Industry
10 SANYO Move into the Appliance Business
11 Venturing into the Global Market
12 Great Leap Forward
13 From President to Chairman
14 The End of An Era

The Life And times of Toshio Iue. Founder of SANYO

A Run of Bad Luck 1 2 3

Broken Lamp Bracket


Broken Lamp Bracket
The first prototype of the dynamo-powered bicycle lamp was completed in the spring of 1947. In July of that same year, the plant started mass production. Since sales were handled by Matsushita Electric, the lamps sold under the trade name National Dynamo-Powered Bicycle Lamp.
Just as orders were being collected and before a week-long business trip to visit two sites, Toshio stood in his office handling one of the lamps while lost in thought. As he was doing this the lamp's bracket suddenly fell off. Trying not to panic, he called and asked the manager of the materials department to immediately check all products and see if any others had the same problem. Knowing that some lamps had just been shipped to a wholesaler with whom he already had a contract, Toshio prayed that the lamp he was holding was the only one with a defect. The manager returned with bad news. More than half of all the lamps had defective brackets. Normally never one to loose his temper, Toshio was having a hard time staying calm. As he considered his options, he regained his composure and ordered the manager to replace all brackets for every single lamp in storage. And for those already shipped, recall and replace the brackets. For the manager, Toshio wanted to hit home the importance of ensuring that each and every product had to be of the highest quality.
On inspection, it was revealed that not only was the wrong material used for the brackets but that they were also improperly crimped. Though half of the lamps could go as they were, Toshio was not satisfied unless each lamp was repaired. In starting this business, Toshio had committed himself to creating products better than anything else available and that meant replacing every bracket.
In total, over 10 thousand lamps would have to be repaired. That's equivalent to the number of lamps that could be produced over 6 weeks on the production line. And the repair process would be far more difficult than the manufacturing process. Plus, bankruptcy was possible due to a shortage in funds resulting from a sharp drop in production. Believing the company's credibility to be at stake, Toshio decided to face the crisis head on and weather the storm.

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