Relationships with Customers

Building a change-resilient "Monozukuri" system that NTN aims for

In recent years, we have been facing a rapidly changing and unpredictable business environment, including large-scale natural disasters and the cessation of global economic activities due to the new coronavirus (COVID-19).
At the same time, business conditions are rapidly changing, including customer needs, and the speed of processes from product planning, including marketing, to prototyping and mass production will be the key to improving customer satisfaction in the future.
Under these circumstances, we will strengthen the linkage between the innovation process of product planning and development and the supply chain process of marketing, production, and sales, with the aim of establishing a "Monozukuri" system that is resilient to changes.

■Basic approach to Monozukuri

Procurement reform

Organizational change of the Procurement Headquarters

In order to strengthen global procurement and centralized purchasing and accelerate Variable Cost Reformation through centralized management led by the head office, the Procurement Headquarters was reorganized into 3 departments: the Global Procurement Supervising Department , the Japan Region Procurement Department, and the Procurement/Logistics Administration Department.
We will establish regional headquarters in North America, Europe, China, and ASEAN, and build an NTN global procurement network, thereby promoting local procurement and procurement in optimal locations with global suppliers. In doing so, we will endeavor to ensure stable procurement and reduce costs.

Establishment of a Global Procurement System

In the current world, a single day doesn’t pass without us hearing the word "global," and we are making efforts to build a global procurement system, which is the pillar of Variable Cost Reformation and essential to our business. We believe that not only organizational development but also human resource development is essential for building the system, and we have worked with Mr. Brelaud, Operating Officer, transferred from NTN-SNR in France, to review the procurement organization and to develop human resources that can play an active role in the international arena. To build our foundation, we will think from a global perspective about what is optimal procurement for the Company, and will continue to promote cost reductions, which are indispensable for generating income.

Promotion of Monozukuri Paradigm Shift "PRODUCTION REFORM"

We are promoting digitalization with the aim of realizing "Monozukuri" that determines our competitiveness. The pillar of our policy is to eliminate waste by connecting information, and to prepare for a reduction in the working population through robotization, automation, and intelligence technology.
Until now, we have pursued partial optimization (streamlining by process). In order to apply digital technology more effectively, we will introduce the overall optimization (streamlining of the entire supply chain) method to achieve more streamlined production.
We will promote streamlining with the goal of reducing production lead times and improving inventory turnover and productivity. We are aiming to create a Monozukuri system through digitalization and streamlining.

■Promotion of Monozukuri Paradigm Shift "PRODUCTION REFORM"

Basic approach to quality and promotion system

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 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 lives are 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 earn our customer’s trust.

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 management system

We are proactively acquiring ISO 9001 certification (international standard for quality management systems) at domestic and overseas production sites, as well as IATF16949 certification (additional standard for the automobile industry). We are also working to acquire certification for new businesses and newly launched sites. Except for the sites which are still in development, all our domestic and overseas consolidated manufacturing 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 IRIS (Europe) and CRCC (China) which are standards for the railway industry are also obtained by relevant sites.

■Major certification achievement (Fiscal year ended March 31, 2020)

ISO9001 (34 production sites certified)
U.S.A.	NTK PRECISION AXLE CORP. (Frankfort Plant)	Fiscal year ended March 31, 2020
IATF16949 (38 production sites certified)
U.S.A.	NTK PRECISION AXLE CORP. (Frankfort Plant)	Fiscal year ended March 31, 2020

Applies to domestic and overseas consolidated manufacturing subsidiaries (excluding sites that have not started mass production)

Activities to enhance quality

To ensure the stable quality of new products, we conduct reviews in every step from development to mass production. All relevant departments participate in the review process, and they confirm and evaluate from their respective perspectives to detect and prevent quality risks in an early phase. Through this effort, we ensure reliable quality.

Activities to improve quality

Every November, we conduct various activities to raise quality awareness of all employees with November being set as Quality Month. This year's theme is "Quality is THE connection to NTN’s future. Every one of us is responsible." Under this theme, all employees look back on the work they are in charge of from the viewpoint of customers, and specific actions to be considered and taken by each employee to pursue the quality that satisfies customers have been declared. Also, each department is promoting major actions and working to improve quality under the NTN global framework.

Quality control for the entire supply chain

To maintain and improve the quality of our suppliers'products, we summarize and distribute our quality requirements. In addition, we regularly request all suppliers to conduct self-audits to verify compliance, and we assess their quality and conduct special audits as necessary. We will continue to maintain good relationships with suppliers and promote quality improvement throughout the Company.