Canon 2002 Annual Report Download - page 7

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Decreasing Prototype Usage
We have made intensive efforts to lessen our dependency on
prototypes for new products by promoting digital engineering
systems such as 3D computer-aided design (3D-CAD). These
efforts peaked in 2002 when we achieved 100% 3D-CAD
usage in our product development activities Groupwide.
Digital systems allow our engineers to examine every
aspect of new products, fine-tune designs, and resolve
potential problems on computer screens before actual
production begins. Reducing the number of prototypes
we use has helped us slash losses in our production activities, approximately 70% of which are the
result of problems related to product designs.
We have also developed digital engineering systems that allow our engineers to disassemble
their creations on-screen, greatly enhancing processes related to the Life Cycle Assessment (LCA) of
Canon products. In addition to digital engineering, we are working on a variety of innovative factory
automation (FA) technologies to further enhance the cost effectiveness and quality of product
development and manufacturing. The immense volume of data acquired through these activities is
being shared throughout the Group to improve operations.
Managing the Supply Chain
Supply chain management (SCM) is improving the way we
do business by providing Canon Group operations, from
production through sales and marketing, with effective and
up-to-date order and procurement information. Canon Inc.´s
Ami Plant has begun direct delivery operations, under which
certain products ordered by customers are manufactured
completely within the plant, including the installation of
peripheral and optional equipment, and delivered directly to
the point of sale. We continue to expand and enhance our
SCM activities and are devising new methods to succeed in
the increasingly competitive global environment.
The Power of Intellectual Assets
Canon Inc. has ranked among the top three companies
receiving U.S. patents for more than a decade, and in 2002
we rose to second place with almost 1,900 patents for the
year. Intellectual assets are crucial to maintaining the vitality
of our product lines and entering new businesses, which is
why they are a high management priority. Patents play an
important role because they allow us to protect the many
proprietary technologies in our products. A variety of our
patented technologies are licensed to or shared with other
companies, which adds to both our results and the scope of our operations.
5
Using 3D-CAD systems significantly reduces
development lead times.
2002*
2001
2000
199 9
199 8
1,893
1,877
1,890
1,795
1,928
2
nd
3
rd
3
rd
3
rd
2
nd
(Source : U.S. Patent and Trademark Office) * Preliminary count
Number of patents
Canon´s U.S. Patent Ranking
Under the direct delivery operation, products are
ready for shipping from the plant to points of sale.