Veteran Interview
Interview Date: March 2018

MSI CorporationInnovation Business Division, Director General, Mr. Kazuo Watanabe
Innovation Business Division, System Group Manager, Mr. Kazunari Oba
Since becoming a FLEXSCHE partner in 2003, MSI has been introducing FLEXSCHE primarily throughout the Tohoku region. However, before that, they had almost no manufacturing clients. How did the company successfully expand its business into manufacturing from almost zero? We spoke with the two leaders of the Innovation Business Division's sales and system teams, who are driving the company's FLEXSCHE business.
Yamagata's Prime Vendor, also focusing on 'Human Development'

-
FLEXSCHE
-
First, please tell us about the history and business activities of "MSI Corporation" (hereinafter referred to as MSI).
-
MSI Watanabe
-
Our company engages in software development, network construction, cloud products, and hardware sales. We provide solutions to a wide range of customers, including not only the manufacturing industry but also government agencies, construction, and distribution wholesale industries.
-
FLEXSCHE
-
Please tell us about the unique features of your company.
-
MSI Oba
-
Since our founding, our management philosophy has been to "aim to create a company that satisfies customers and delights employees." We conduct customer surveys once a year and employee surveys once a year, and one of our prides is that the results show very high customer and employee satisfaction.
-
MSI Watanabe
-
Additionally, we have a policy of not subcontracting and always working directly with customers. By working directly with customers, we believe it leads to higher service quality.
-
MSI Oba
-
We also focus on 'Human Development' and engage in various initiatives. For example, we have daily radio calisthenics and morning meetings that everyone participates in, as well as weekly cleaning by all employees. Communication within the company is also close, and I think it is a company with strong horizontal connections and unity. We aim to nurture bright, energetic, and proactive employees as a company.
-
FLEXSCHE
-
Indeed, the greetings from the employees when entering the building were very pleasant.
-
MSI Watanabe
-
Thank you.
-
FLEXSCHE
-
Next, please tell us about your own backgrounds.
-
MSI Watanabe
-
I originally worked as a system engineer at a predecessor company. I left that company as one of the founding members of MSI. After that, I continued to be involved in system development, but I transitioned to a system sales role to strengthen the company's system sales capabilities. When the company decided to focus on the manufacturing industry, I took charge of that sales.
-
MSI Oba
-
I worked for a computer-related company in Tokyo for five years, but I decided to return to my hometown, so I left that job and joined MSI, which had just been founded. I was in charge of system development for government agencies and distribution wholesale industries, but I took on my current position when a department specializing in manufacturing was established within the company.
-
FLEXSCHE
-
By the way, are both of you from Yamagata?
-
MSI Oba
-
I am from Kaminoyama City, next to Yamagata City. I've lived here all my life except for the time I worked in Tokyo.
-
MSI Watanabe
-
I was born and raised in Yamagata City. I'm a genuine country person.
-
FLEXSCHE
-
Please tell us about your hobbies.
-
MSI Watanabe
-
I refrain during the winter, but during the season, I play golf all the time.
-
MSI Oba
-
Mr. Watanabe is amazing. He's like a pro.
-
MSI Watanabe
-
No, no, that's not true! I'm working hard to achieve a single-digit handicap. And my winter hobby is hot springs. There are many hot spring areas in Tohoku, so I enjoy visiting them along with meals and drinks.
-
FLEXSCHE
-
Yamagata also has many hot spring areas. I'm envious. How about you, Mr. Oba?
-
MSI Oba
-
My hobby is billiards. Recently, I played with your company's representative, Mr. Urano. Recently, my presbyopia has been getting worse, so I need to practice more.
Shifting the business focus from government and construction to manufacturing

-
FLEXSCHE
-
The "Innovation Business Headquarters" that you both belong to is a department specializing in the manufacturing industry, isn't it? When and for what reasons did your company start to focus on the manufacturing industry?
-
MSI Watanabe
-
It was about 15 years ago. It was a time when government offices and the construction industry were declining, and package software was becoming more prevalent, leading us to predict a decrease in commissioned development projects, which we excelled at. Therefore, we decided to focus on the manufacturing industry, where we had almost no customers, and expand our business there. In rural areas, there are many manufacturing companies, but local competitors were hardly involved in manufacturing work, so we decided it was a viable market and made a company decision.
-
MSI Oba
-
Even now, many manufacturing companies do not have what you would call a proper system. At that time, it was probably only some large companies. Moreover, the number of product types was not as large as it is now, and the need for systemization was not as great, which is one reason why the manufacturing industry was an untapped market.
-
MSI Watanabe
-
As time went on, the trend towards smaller production lots and a shift to make-to-order production systems progressed, and it was a time when systemization was gradually being demanded, which was also a reason why we decided to expand our business into the manufacturing industry.
-
FLEXSCHE
-
What is the current proportion of manufacturing-related business within your company?
-
MSI Watanabe
-
It's still about 30%. However, we plan to increase personnel in the manufacturing department, and I think it will reach 50% within the next two years.
-
FLEXSCHE
-
What was the trigger for you to start handling FLEXSCHE?
-
MSI Oba
-
At that time, our manufacturing customers were asking for a production management system, but as we listened to their issues in detail, we realized that what they really needed was a production scheduler. So, we were looking for something that met their requirements, and that's when we chose FLEXSCHE.
-
FLEXSCHE
-
What aspects of FLEXSCHE did you find appealing?
-
MSI Oba
-
We felt that the interface was excellent. The data format being in CSV files made it easy to handle. Additionally, the graphical operations that other companies didn't have were also attractive. As a result, we were able to have that customer select it, and it became our first project handling FLEXSCHE. This made it clear that there was such a need within the manufacturing industry, so we put more effort into expanding it.
-
MSI Watanabe
-
Since we were entering the manufacturing market as a new player, we thought we needed something outstanding to develop it, and in that regard, FLEXSCHE became a significant weapon. I believe that the issues that a production management system can solve are not many. For example, improvements in productivity and inventory reduction can only be achieved with a production scheduler. Moreover, even when explaining a production management system, it's difficult for customers to understand how it differs from other products, whereas FLEXSCHE can make a significant impact in a short time, making it a valuable system that is easy for customers to understand from a sales perspective.
-
MSI Oba
-
Also, when we convey customer requests to FLEXSCHE, they quickly absorb them and reflect them in function enhancements during version upgrades, which is great.
-
FLEXSCHE
-
We are also grateful to have our partners directly share the needs they hear from customers. We want to work hard to make FLEXSCHE an even better tool. Mr. Watanabe, what do you think of the value of FLEXSCHE as a product from a sales perspective?
-
MSI Watanabe
-
When we show a demo, in most cases, they become interested immediately, so I feel it's an easy software to sell. Moreover, it often leads to discussions like, "There are also issues with the current production management system, can you propose something together?" As a result, there have been many instances of delivering production management systems based on FLEXSCHE. So far, we have sold 42 licenses to 36 companies, generating significant sales. It's not an exaggeration to say that the business of the Innovation Business Headquarters has come this far thanks to FLEXSCHE.
-
FLEXSCHE
-
Is it often paired with a production management system?
-
MSI Watanabe
-
もちろんFLEXSCHE is単独でも価値のあるSoftwareですis、生産管理Systemandの連携によってもっand価値は高まりますlaunch。生産管理SystemのNakataにも工程管理のFunctionはありますis負荷to山積みして平準化していく方法では限界isあり、実際のものづくりは時系列上での緻密な計画is必要.多くのFactoryで行われているようなMicrosoft Excel®to用いた手作業での計画立案ではそんな緻密なものはできませんし、その上Systemandの連動も難しいのでそれ以上の広isりは期待できません。FLEXSCHE isOthersSystemandの連携によってSystem全体の価値to高めてくれる存在なの.
Challenges in handling FLEXSCHE

-
FLEXSCHE
-
Could you tell us about the difficulties you face when handling FLEXSCHE?
-
MSI Oba
-
There have been several instances where customers have said that operating it is difficult. One of the objectives is to eliminate the personalization of planning tasks, but if a dedicated person is assigned to the system, that issue isn't resolved. If the production method changes, the system must also be changed, and it's challenging to enable customers to handle that themselves. Many customers considering the introduction of FLEXSCHE are also concerned about this. However, we can support them, and there are cases where customers have successfully integrated it into their operations over a long period and even change scheduling rules themselves.
-
MSI Watanabe
-
After the initial setup, we can support and resolve issues, but the most challenging part is the initial setup. Whether the customer can focus on the introduction of FLEXSCHE and allocate dedicated personnel can determine the success of the implementation.
-
FLEXSCHE
-
How is the training of engineers involved with FLEXSCHE? Can those newly assigned to the manufacturing department quickly adapt to the system?
-
MSI Oba
-
Regarding the technical aspects, it shouldn't be too difficult. If someone has a basic understanding of systems, they should be able to model simple cases quickly. However, in reality, there are no customers who can be satisfied with a simple model. Ultimately, without experience with FLEXSCHE and knowledge of the manufacturing industry, it is difficult to make good arrangements.
-
MSI Watanabe
-
In the future, we want to ensure that know-how is effectively communicated, so it is a challenge to leave the results we have built as assets in an easy-to-understand form for the next generation of engineers. It would also be great to collaborate with other partners to create templates for models for various industries.
-
MSI Oba
-
Technical exchanges might also help solve such problems. By sharing know-how, we can work more efficiently and with higher quality.
-
FLEXSCHE
-
Our partner meetings do not have such elements, and it would be great to have some new initiatives. Currently, I hear that your company's sales of FLEXSCHE are on the rise. Is this due to the overall boom in the manufacturing industry?
-
MSI Oba
-
That is likely a factor, and the recognition of production schedulers has also significantly improved.
-
MSI Watanabe
-
I also analyze that one reason is the recent work style reforms. Planning personnel often spend a vast amount of time and also juggle multiple tasks, which is quite challenging. We have received inquiries about wanting to somehow reduce this workload.
Further possibilities for the expansion of FLEXSCHE

-
FLEXSCHE
-
Mr. Oba, I hear you have implemented FLEXSCHE overseas three times in the past.
-
MSI Oba
-
Yes, I did it in Thailand, the United States, and Taiwan.
-
FLEXSCHE
-
Did you receive direct inquiries from overseas?
-
MSI Oba
-
No, they were all Japanese global companies, but there was a track record of implementation at a subsidiary's factory, which led to proposals to related companies, resulting in overseas implementation.
-
FLEXSCHE
-
It's quite rare to hear about implementations through horizontal expansion in all three cases.
-
MSI Oba
-
I believe it is because the product is good that it has been recognized.
-
FLEXSCHE
-
No, no, I think it's because your company did an excellent job. By the way, do you think there is a possibility of selling FLEXSCHE overseas in the future?
-
MSI Oba
-
Overseas factories often have large land areas and can create simple lines or only manufacture mass-produced products, so unlike Japan, FLEXSCHE may not be useful in all factories. However, from another perspective, it could be used as a tool to control local companies from Japanese factories. In fact, we have received inquiries about such usage.
-
FLEXSCHE
-
What do you mean by that?
-
MSI Oba
-
It means visualizing the production status and improving efficiency by conducting planning operations in Japan and giving instructions to overseas factories. I feel that FLEXSCHE can fulfill such a role, so I believe there is potential for sales not only domestically but also overseas.
-
FLEXSCHE
-
I see, that kind of proposal is certainly possible. Lastly, could you tell us about your future goals?
-
MSI Oba
-
I believe FLEXSCHE can play a role in advancing the automation of factory operations. As an actual example, we have integrated ERP, FLEXSCHE, and a performance management system, achieving complete automation of planning operations. When FLEXSCHE schedules, work instructions are displayed on the terminals on-site, and as production progresses, the system automatically collects results and reflects them in FLEXSCHE. With IoT, all production information can be linked with the system, and FLEXSCHE can be used as an engine to circulate that information. In the near future, I want to strive from the integrator's standpoint to ensure that FLEXSCHE can also bear the value as such a tool.
-
MSI Watanabe
-
I am confident that FLEXSCHE will become a necessary tool in all manufacturing industries in the future. Even from the initial sales phase when we were told, "We don't have any issues with production planning," the number of proposal requests has increased now, and I believe production schedulers will continue to be in demand. We will continue to pursue customer satisfaction and provide better solutions to the manufacturing industry in the Tohoku region.