Omron 2014 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2014 Omron annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 51

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51

54 Omron Corporation Integrated Report 2014 55
Traceability management is employed in various industries,
including those related to food, pharmaceuticals, and
consumer electronics. However, it is particularly
widespread in the automobile industry, where consumer
demand for safety is especially high. Engines and other key
safety-related systems have an immense impact on the
overall quality and safety of an automobile. For this reason,
these items require particularly stringent traceability
management. In the event of a recall, it is crucial for a
manufacturer to be able to quickly and accurately ascertain
which vehicles were afflicted and then analyze the defect.
Traceability makes this possible. The current environment
is such that the social responsibility of a manufacturer will
be called into question if it is unable to respond appropriately
to crises like recalls. Therefore, traceability management is
expected to be even more commonly used in a wider
range of industries going forward.
One possible method of employing RFID in traceability
management involves afxing radio frequency (RF) tags
to transportation-use pallets. Each time a new part is
embedded in an unfinished product on the pallet, a
specialized reader/writer imprints information regarding that
part onto the RF tag. After a product is completed, a type of
barcode, known as a quick response (QR) code, will be
printed on the product, and this code will be linked to the
manufacturing data contained in the RF tag. Both will then be
managed together on a server. Should a defect occur, the
manufacturer can retrieve the manufacturing data contained
on the server based on the QR code. By employing this
method, manufacturers are able to trace the cause of defects
more easily.
Xus first duty was establishing a meeting room in the
production area. Due to its location inside a manufacturing
plant, all employees ranked below section chief go about
their duties while wearing lint-free work suits.
This initiative has enabled
the plant to respond to
sudden disruptions in
production quicker than
was previously possible.
The Chinese manufacturing industry is undergoing great
change. Due to wage hikes, energy shortages, and higher
expectations for quality, Chinese manufacturers now
require automation systems with the same level of
precision as those used in developed nations. OMR is a
flagship production site for relays and switches. Aiming to
become Chinas No. 1 fully automated plant, OMR places
emphasis on improvements related to quality, cost,
delivery, and services (QCDS). The Chinese automobile
industry continues to grow rapidly. We therefore expect
a rise in the production of compact and multi-functional
automotive electronic components, items that are
created using Omrons unique technologies.
Product creation is people creation. In accordance with
this philosophy, OMR launched a new human resource
development plan in fiscal 2014 that includes both on-the-
job training and off-the-job training. From her experience,
Xu has come to believe that people grow by learning of
their own value, and she is committed to cultivating human
resources that inherit the Omron Principles and our
corporate DNA. Through steadfast effort, Xu will continue to
pursue improvements in product manufacturing capabilities.
Xu emphasizes the importance of communication with the
local authorities and communities as well as with customers
and their business partners. She handled most of the
negotiations related to the 2012 opening of the new plant,
personally taking part in the process from land selection
through to the plants establishment. The local government
thus has expectations for Xus exploits as president
of OMR.
Xu is an inspiration for many local employees at OMR.
Aiming to serve as a role model for these employees,
Xu states that she will continue to advance forward, driven
by objectives and gratitude, without fear of failure.
Emphasis on QCDS
Omron Principles and Corporate DNAFirst Duty: Establishing a Meeting Room
Objectives and Gratitude as Driving Forces
OMR Net Sales Target
FY16 Target
Approx.
¥10.0 billion
FY13 Result
Approx.
¥5.0 billion
New OMR plant, completed in August 2012
RF tag
Reader/writer
Widespread Usage in the Automobile Industry
Addresses Strong Consumer Demand for Safety
RFID Contributes to Traceability Management
By equipping runners race bibs with an
RF tag, it is possible to track with ease
runners times. This is accomplished by
equipping checkpoints with reader/writers
that extract data from the RF tag installed
on the race bib to record the time when a
runner passes a checkpoint.
Other Uses for RFID
* About RFID
RFID technologies generally employ RF tags and reader/
writers that connect to one another through wireless
communication to exchange and store data.
RF tag Reader/writer
Imprint
Store data
Traceability Management Provides Consumers with Safety and Security
The Industrial Automation Business (IAB) not only creates equipment for factory automation (FA) but also
contributes to traceability management with radio frequency identification (RFID)* technologies to provide
consumers with safety and security. Traceability management links manufacturing data, such as production
dates and parts information, directly to a product, enabling both to be managed together. Should a product be
found defective, proper traceability management makes it easier to determine the cause of the defect by using
the associated manufacturing data.
IAB and Consumer Safety and Security 100%
Percentage of major domestic automobile manufacturers using RFID
Sustainability Topics
New Female President in China
To achieve true globalization, it is necessary to create social needs based on the specific
conditions of individual countries. Therefore, the Company must be an organization at
which local employees can actively participate in management. In 2013, Xu Jian assumed
the position of president of Shanghai OMRON Control Components Co., Ltd. (OMR),
a manufacturing company in Shanghai that is part of the Electronic and Mechanical
Components Business (EMC).
EMC and Localization of Management 42%
Percentage of overseas core positions filled by local staff (as of March 31, 2014)
Sustainability Topics
President, OMR
Ms. Xu Jian
About Omron Where Were Headed Corporate Value Initiatives Corporate Value Foundation Financial Section