The Japanese philosophy focuses on simplicity, holism, execution, respect, improvement and balancing productivity and quality. Japanese workers have positive attitudes and managers emphasize interaction, motivation and training. Inventory is managed through low levels, scheduling, delivery and unpacking. Close vendor relations are built on information sharing and proximity. Production uses Kanban, a signaling system, to trigger replenishment through stockpoints and feedback. Technology utilizes tools, computers and preventive maintenance. Challenges include transportation, workforce and protectionist policies.