What is ‘Shojinka’?
Shojinka means: A reduction of the amount of employees, but only if it REALLY leads to a reduction of cost.
If, by eliminating losses, less labor is needed to create the same value, the employee is no longer needed in this process.
Since the employee may have intensively been trained, and even worked on the loss reduction, it makes sense to keep this employee on board in another position where he can create value.
This is quite different from our ‘savings on labor’ (which is not rarely NOT a real saving)!