Frugal Engineering: Jugaad is the new Kaizen

The rise of Japanese manufacturing in the 80s gave rise to "Lean Manufacturing". Lean is based on core values that are a part of the Japanese culture of minimalism, automation and elimination of waste. As Industrial Engineers, we even learned these concepts with their Japanese terms like "Kaizen" (continuous improvement), "Jidoka" (automation), "Poka-yoke" (full-proof) in school. Using the Japanese versions of these terms forces us to create a new meaning to the concepts keeping with the spirit in which the Japanese companies applied.

With the turn of the century, the recession and the rise of Indian companies in the eyes of the world, a new paradigm shift is just beginning to take place, "Frugal Engineering". C.K. Prahlad's book "Bottom of the Pyramid", Tata Motors new $2500 car the "Nano" and Bharti Airtel's telecom business model are the main stories around this new concept of Frugal Engineering. With billions of people from developing countries around the world, joining the "mainstream" market, companies need new thinking on how to succeed with this big opportunity.

A new management jargon that is heard often these days is the Indian word "Jugaad" (to get a solution where there is a scarcity of resources). As with the Japanese terms, it is the spirit in which it is spoken in India that makes it unique. When you want to do a Jugaad, you look for an out-of-the-box solution using existing cheap resources and you want it quick

So if "Frugal Engineering" gets popular like "Lean" and managements around the world start looking for ideas on how to cater to developing countries, like Jugaad, what are the core cultural elements of Indian companies that will be talked about? Here is a proposal:

1. Cutting (micro-consumption): The concept of "Cutting" is you provide in the minimum possible serving size. Cutting is used in relating to tea, where a "Cutting" tea is half-a cup of tea, roughly 50ml. Huge majority of tea drunk in Mumbai is Cutting tea. The majority of mobile phone re-charges (in India most mobile-connections are pre-paid, i.e. you pay first and use later) are for Rs 10 (20 cent). What Cutting does is that it allows for mass consumption of a service or product at very low costs. Cutting is micro-consumption to services like micro-finance is to banking.

2. Zor-laga-kay (the-push): When there is a big problem that needs to be fixed quickly, a large number of people stop whatever they are doing put in effort to solve it. In India more people are likely to be a Jack-of-all-trades rather than specialists. Indian companies are also more chaotic where it is hard to put people into fixed roles and functions. There are obvious down-sides to this, but the upside is that when there is a major problem that threatens survival, everyone contributes. The team self-organizes itself around the problem and everyone puts in synchronized effort to "push" the problem out. A new team spirit and confidence emerges and seemingly impossible tasks get accomplished with Zor-laga-kay.

3. Chalta-hai (take-it-easy): This term is usually used by high-minded Indians as a self-critical symbol of laziness, fatalism and poor quality. But if taken in the right spirit, this concept has a great balancing and harmonizing effect. Indians are more likely to make a compromise rather than pick a fight. In my opinion, the west is too result oriented and sometimes forgets that the journey is as important as the destination. As you enter the developing world, the problems are plenty, your resources are limited, and most things are not in your control. So be prepared to suck it in, calm your mind and say "Chalta-hai".

4. Fat-a-fat (instantly): This means, what ever you want to do, do it NOW. Don't think too much, use your instinct and move on. Sometimes in the West, a lot of resources are used to strategize and plan. The Fat-a-fat principle says, that you don't have much resources or time to plan so just get on with it. Fat-a-fat brings a sense of urgency in an otherwise slack environment. In developing countries, things often seem to move very slowly, with people taking their own sweet time to get things done. Like Narayana Murthy of Infosys said "In India articulation is often mistaken for accomplishment". So if you are feeling interia, just do it - Fat-a-fat.

So next time, hear these words as management jargon, remember where your read them first. And I am sure you would have many suggestions, please write them in the comments!




Note 1: These are terms that are usually spoken in Hindi in Mumbai, every region of India is unique and has their own terms. But I am sure the spirit and culture is very similar.