Omron 2016 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2016 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 102

  • 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
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

❸ Optimizing Corporate-Wide Logistics
❷ Standardizing Manufacturing Technology Processes
❶ Quality Assurance in
　　
Manufacturing Processes
Product
Warehouses
Shipping
Inspection
Inspection
Process
Assembly
Process
Acceptance
Inspection
Component
Suppliers
Process Design
Product Design
Initiatives for Productivity Improvements
closely in partnership with our suppliers. Strong
relationships reduce environmental risk by
promoting the proper management of regulated
chemical substances, improve cash flow based
on standard payment terms, and allow joint
development through sharing the latest
technologies.
3. Restructuring Fixed Manufacturing Costs
Today we produce 40% of our total in Japan,
30% in China, 10% in Southeast Asia, and 20%
in Europe, the Americas, and other regions. We
are making advances in automating our own
production floors, particularly in China and
Southeast Asia. However, soaring labor costs
mean that improving productivity is still an
urgent issue for us (and every manufacturer). To
address this issue, we plan to accelerate
restructuring of fixed manufacturing costs,
focusing our efforts mainly in China. Specifically,
we are working toward improving productivity
through three initiatives:
We plan to move away from quality assurance
based on manual post-process inspection to a
system that ensures quality has been built into
the process from the beginning. Standardizing
components is one way that will help us be
more efficient in receiving inspections. We will
use information technology to share data with
our supply partners for greater visibility and
stronger relationships. We also plan to bring
more visibility to inspection data and
manufacturing process changes that affect
quality. We will incorporate more information
technology into our own production lines to
visualize data related to process quality, quickly
identifying changes in quality on the production
floor and repeating the cycle of improvement to
continually raise the level of our manufacturing
processes.
We will reduce the time needed to launch mass
production by standardizing our manufacturing
technology processes in all stages, from design
to mass production. We also plan to accelerate
visibility to the production line, allowing
production floor leaders to proactively manage
equipment maintenance and other operations.
❸ Optimizing Corporate-Wide Logistics
Working from a corporate-wide perspective, we
plan to optimize the logistics networks for
products and components developed separately
under each business and division. We will also
drive greater efficiencies in warehouse
management operations as we convert from
manual processes to a digital format.
Moving forward, we will continue to strengthen
our capability to integrate value, our capability to
deliver value, and our capability to respond to
changes in the business environment. We also
plan to improve gross profit margins not impacted
by factors in the external environment.
Improving Global Productivity
❷ Standardizing Manufacturing Technology
Processes
❶ Quality Assurance in Manufacturing
Processes
40 OMRON Corporation