With optimize manufacturing processes via a scientific approach as the Group’s basic policy, we aim to create an organizational culture that relentlessly innovates productivity. To create the industry’s most efficient production system, we are engaged in efforts to innovate production based on thorough analysis using the IE (Industrial Engineering) method* *.
*A method that scientifically analyzes and improves production activities to enhance productivity.
The Group's efforts to innovate production began in 2008 with the Precision Machinery Company. In 2011, those efforts were expanded to production sites in Japan, and in 2012 they were expanded to production sites overseas. Those efforts have now been expanded Company-wide. From top management to frontline staff, we are working to improve skills through human resources development, promoting Kaizen, process assessment, and knowledge sharing, and striving to provide value and improve reliability to our customers.
We hold innovation production conferences in Japan and overseas with the participation of all Group employees from senior management to frontline personnel, engage in exchange activities (plant inspection activities) that emphasize members workplace, actual products, and reality, provide practical training for human resource development through “voluntary research activities,” and provide support to the in-house company side and the development of DX in production.
Our innovative production efforts are targeted at reducing lead times by 50%, cutting inventory by 50%, and doubling productivity. In addition to the monetary effects of efforts to innovate production, we have defined the Innovative Production ROIC as an indicator for quantitative evaluation that we use worldwide. This is a tool for measuring achievements using an organized and scientific approach, which evaluates the contribution to the return on invested capital (ROIC), which is our most important management indicator, as the Innovative Production ROIC Improvement Effect. Since its introduction in the fiscal year ended 2020, it has served as a guideline in efforts to innovate production efforts through two medium-term management plans, contributing to profit creation through continuously applying the PDCA cycles.
The EGM Survey introduced in the fiscal year ended December 2020, which is a qualitative evaluation, gauges the degree to which business efforts are achieved, and evaluates the level of production efforts on a 10-point scale. The EGM Survey identifies issues in areas such as business structure, organization, human resources, safety, and DX, and works to eliminate gaps between the target levels and actual activities levels set for each business unit. We monitor on an annual basis the degree of achievement of our targets and strive to continuously improve our scores, with the aim of realizing industry-leading process systems.
