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CSR activities in FY2018

Relationships with CustomersRelationship to SDGs

Monozukuri

Basic Approach

With customer satisfaction as our top priority, we aim to further improve our QCD (quality, cost and delivery). We will improve field capabilities of our manufacturing team through “KANZEN SEISAN*” activity, and build global production systems based on at-local-site, with-local-material procurements. And we continue to meet our customers’ needs under the production system optimized throughout overall SCM (supply chain management) which streamlines the logistics from supplier to customer.

* “KANZEN SEISAN” means “perfect production” in Japanese.

Main Activities

Streamlined production

As a part of the production reform promotion activities, we are taking initiatives to create factories where people, goods and information flow “NAMERAKA*”. In particular, we aim to streamline our entire SCM through shortened lead time from order to shipment by synchronizing things including suppliers and shortening/connecting production processes, as well as through effective inventory management. We aim to reduce “inventories (material inventory, in-process inventory, and finished good inventory) = invested capital” by creating the framework for overall optimization and promoting streamlined production. By improving return on invested capital (ROIC), we will strengthen the profitability and management performance of the entire NTN.

* “NAMERAKA” means “smooth” in Japanese.

Monozukuri that NTN aims to shape

NTN is transforming from a “Manufacturing Company” into a “Company that Delivers Value to Customers through Products and Services.” In the production reform, which is a base of our transformation, we promote streamlined productions, bring Monozukuri sites and customers closer to each other through advanced and efficient productions utilizing robots and AI/IoT as well as through SCM collaboration, and thereby deliver higher value to customers.

Six concepts

Six concepts

Monozukuri that NTN aims to shape

Monozukuri that NTN aims to shape

Wakayama Works

Wakayama Works is currently under construction in Wakayama Prefecture as a new base designed to produce radial bearings, the core product of the Company. Due to a rapid development of electrification in the automotive industry in recent years, the market needs are rapidly expanding for radial bearings used for motors and drive systems with high value-added features such as low friction, low vibration and long operating life. Wakayama Works will concentrate on such high value-added products while actively outsourcing standard type products, by which we will reorganize our radial bearing production centering around the new production base.
Wakayama Works will reduce the delivery time of prototypes by half and the production lead time by one third, through smart factory efforts and an introduction of IoT and AI system-based new production machines, and speedily supply high quality products worldwide. We will strengthen the entire NTN Group’s business by developing similar initiatives in Japan and overseas.

Construction of Wakayama Works in progress (photo taken in July 2019)

Ensuring Global Quality

Basic Approach

NTN’s Basic Quality Policy specifies all the basic principles that shape our manufacturing approach. We use it to work on maintaining and improving product quality throughout the world, working toward high quality that satisfies all our customers.
Our products are used in many applications around us, providing daily support. They are also found in equipment where life is at stake, such as aircraft, railway, automobile and medical equipment, and therefore, require extreme precision and durability. Every single employee understands the importance of Quality and works earnestly toward Quality to improve NTN brand globally.

Basic Quality Policy

Pursuing right quality to meet functions and specifications requested by our customers.

  • Applicable quality
    Our quality should immediately respond to the change of our customer’s requirements.
  • Competitive quality
    We have to win quality competition.
  • Quality for economy
    Quality should benefit our company.

Quality Slogan

Quality is our future.

Quality paves the way for our future.

Quality is our future.

Quality management system

We are proactively acquiring ISO 9001 certification (international standard for quality management systems) at domestic and overseas production sites, as well as IATF 16949 certification (additional standard for the automobile industry). In the fiscal year ended March 31, 2019, three new sites have been certified. This means that, if we do not consider production sites which are still in development, all our domestic and overseas consolidated subsidiaries have now received the proper certification for their Quality Management System.
In addition, JIS Q9100 and Nadcap which are standards for the aerospace industry, and certification for the railway industry standards IRIS (Europe) and CRCC (China) are also obtained by relevant sites.

Main Activities

Working to eliminate serious complaints and promote “zero customer complaints”

To earn the confidence of customers in the NTN brand, it is essential to eliminate quality problems, so we are working on activities to reduce customer complaints on a Group-wide basis.
For new products and newly launched products, we aim to deliver stable quality from the very start of production, by enhancing risk analysis through pre-production preparation activities and design reviews. To eliminate recurring complaints, in addition to promoting local audits intended to follow up on measures taken, we globally distribute check sheets summarizing the causes of past customer complaints as well as the measures taken, coupled with key points for preventing recurrence. Moreover, we obtain findings from the inspections to examine the risks of recurrence as well as the effectiveness of the measures.
By using our quality information management system (G-QUICK), which centrally manages information of customer complaints on a global basis, we can promptly deploy the information to relevant departments and solve problems in the early stages.

Establishing a global quality assurance system

Although our materials, equipment, and production environment differ from one country to another and from one region to another, the NTN brand is one and the same. We think it is important to deliver uniform worldwide quality and to establish a global quality assurance system while working to build a global production system.
For launching a new plant, we have enhanced the rules for production transfers and process changes to make an arrangement for the smooth and reliable transfer of mother plant production systems. Moreover, in addition to revising the quality standards and processes at production plants, we have been conducting project activities aimed at creating production processes involving higher quality assurance levels.
Given that it will become increasingly more important to distinguish ourselves through high quality and more advanced functions, and deliver quality adapting to low-price market segments, we at the NTN Group will work as one team to pursue quality improvement activities with the aim of developing the NTN brand into a globally-trusted name.

Securing good quality of global steel products and enhancing special process control

To push forward with production in the customer regions under our global production system, it is essential to procure steel material locally and enhance the quality of that steel material. As a step toward doing so, we have created a specialized department within the Quality Assurance Headquarters of the head office to strictly control the inspection method and acceptance criteria of steel materials used worldwide, etc. and to centrally manage quality control. We detect the variations of quality and change points of the steel manufacturer at an early stage to prevent market defects caused by materials. We also actively continue to audit materials manufacturers and give them technical assistance on a periodic basis.

Quality education and quality month activities

Quality initiatives are promoted throughout the company in November each year during “quality month,” as a way to improve the quality of our products. Quality month kicks off with a message from the President to all employees, addressing the importance of quality in his own words. In the fiscal year ended March 31, 2019, we promoted an activity participated by all employees under the theme of “What should I do to improve the quality of workplace (quality of operations)” in which each employee declared their own theme they need to work on and took initiatives accordingly. We work to raise group-wide quality awareness through global efforts such as attending quality presentations and creating original-themed posters. During quality month, we create the Company’s original posters, translate them into 12 different languages including Japanese, and distribute them to each business site in Japan and overseas.

Original poster for quality month

Original poster for quality month

Improving logistics quality

Modularization of cardboard boxes

Following a measure taken to upgrade cardboard box quality as a step toward addressing the issue of crushed outer packaging boxes in the aftermarket applications market, we have begun to use NTN New Standard Outer Packaging Boxes with the aim of delivering improved logistics quality by modularizing outer packaging boxes. NTN New Standard Outer Packaging Boxes, coming in seven categories designed to unify the loading weight on each pallet, are intended to withstand a package weight of up to 15 Kg in principle. In an effort to improve the NTN brand value, we will work on streamlining toward the new standard outer packaging box.

Shift from wooden pallets to resin-based pallets

We shifted from wooden pallets to resin-based ones that are superior to the former in durability, which enabled transportation quality improvements, reduction of contaminants such as wood chips, and recycling into new resin products. Thus, we are conducting our operational activities in an environmentally-friendly manner. In the previous fiscal year, we achieved our initial shift target (60,000 units). To improve our logistics quality further, we will go on shifting in a planned fashion.

Improving customer satisfaction

Customers’ needs are changing with the times; lighter weight, quieter operation, lower torque for energy saving and longer life. Competitors are also raising their quality levels. We strive to improve customers’ confidence and satisfaction in the NTN brand by meeting their needs promptly, differentiating ourselves from competitors’ products, and delivering our products at appropriate pricing. We conduct a customer satisfaction survey as an opportunity to listen to the voices of our customers directly such as their level of satisfaction and requests.
For the fiscal year ended March 31, 2019, the satisfaction survey was conducted on 104 corporate customers of each sales office. The result of overall evaluation shows that we maintain a high customer satisfaction level with 95% of our customers rating us as “Excellent” or “Good”.

The result of overall evaluation in Customer Satisfaction Survey

Excellent

21%

Good

74%

Needs some improvement

5%

Needs much improvement

0%

* The number of customers who rated us as “Excellent” or “Good” declined by 3% year on year to 95% in this quality evaluation. This was due to lower satisfaction ratings from customers who experienced quality defects. To regain the confidence of our customers, we will resolve the quality defects as soon as possible.

Quality generates brand power

We define NTN’s brand power as the ability to be chosen by customers. We are receiving high acclaims as we have been continuously delivering high-quality products to our customers for 100 years since the founding of the Company. However, as commoditization is progressing for many of NTN products such as bearings, it is not easy to differentiate ourselves from competitors. In this environment, by continuing to provide products and services that win our customers’ satisfaction at appropriate prices, we will build up better relationships of trust and improve our brand power.
We guarantee the quality of all products we sell to our customers from “the moment we receive inquiry until the appropriate operating life of product ends.” Sales divisions accurately identify operation environments and required specifications informed by customers, and share the information with technical and manufacturing departments. And the technical and manufacturing divisions complete productions complying with customer requirements, internal development steps and manufacturing rules to perfection. We have a system to follow up continually after sales in case any defect of a product is detected in the market, thereby making the guarantee possible from the moment we receive inquiry until the appropriate operating life of product ends.

Takashi Fujii

Operating Officer,
Quality Assurance Headquarters
Corporate General Manager
Takashi Fujii

As a recent trend, among major quality defects which largely affect the market, many of their initial causes lie hidden in the pre-mass production stage. Since the establishment of the Quality Assurance Headquarters in 2018, we also have been focusing on measures against quality defects arising from the working stage of engineering. We continue our Monozukuri openly and squarely by identifying quality risks and improving them, such as rules difficult to comply with from the perspective of actual manufacturing.
We promote local productions according to demands of global market, which we divide into four regions throughout the world. While localizing steel materials procurement and special processes, we strengthen rules to achieve globally standardized quality and build a global system to centrally manage quality information. To be chosen by customers with trust, the entire NTN Group will work as one to further strengthen its quality assurance system.