Canon 2006 Annual Report Download - page 9

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7
2
Establish new production systems to maintain
international competitiveness
For Canon to compete with the world’s
top companies, it must raise production
efficiency to even higher levels. Therefore,
the Company has set a Phase III perfor-
mance target for the cost-to-sales ratio of
45% in 2010. To attain this goal, Canon is
implementing Companywide initiatives
targeting in-house production, automation
and procurement reforms.
In-house production of key devices
and components is one of the most
important aspects of efforts to increase
product competitiveness and reduce
costs. Canon is also strengthening
in-house production of parts and
production equipment.
The Company has introduced auto-
mated production lines using automated
assembly systems and robots in order to
meet growing demand for Canon products,
as well as to reinforce competitiveness on Canon is now establishing fully automated toner cartridge production
Canon Machinery Inc., a company with
expertise in automated machinery that
was added to the Group in 2005, will
construct a new plant for production of
automated machinery for toner and ink
cartridge assembly.
In the field of procurement reforms,
Canon works to secure more reliable
parts and components with a focus
on environment, quality, cost and
delivery (EQCD). At the same time,
the Company is making significant
progress in reducing costs by raising
efficiency in procurement operations.
a global scale and to boost production. In
Japan, the Company is promoting the
automated production of such products
as toner and ink cartridges, for which
there is a sharp increase in demand.
Canon will take active steps to realize a
“three-in-one” foundation for manufac-
turing that integrates development,
production technology, and manufacturing
know-how. As a step in this direction, the
Company is planning the construction of
a new production-engineering center in
Japan to accelerate the strengthening of
production technology capabilities. Also,
Canon will continue to promote production
innovation initiatives