Discusses the strategies used by Japan in the past to become a leading economic power. Examines the problems of the 1990s including the impact of the appreciation of the Yen, cost structures and offshore production. Presents strategies currently being implemented by Japanese manufacturing firms and the role of total productive maintenance (TPM) to help maintain and strengthen Japan’s competitive edge. The strategies include just‐in‐time product development and cost reduction with the help of TPM.