Canon 2008 Annual Report Download - page 27

2
5
s
y
stem based on cell production and
j
ust-in-time
production while endeavorin
g
to reduce material costs
throu
g
h the optimum procurement o
f
materials.
Furt
h
ermore, Canon is now revampin
g
its
l
o
g
istics
network for global production and distribution.
In anot
h
er move, t
h
e Company
b
egan to
implement a policy of localized production. To
address such factors as the rising costs for transpor
-
tation and the reduction o
f
environmental burdens
related to transportation, the Compan
y
will carr
y
out manu
f
acturin
g
at locations that can ensure the
h
i
gh
est qua
l
it
y.
T
h
ese initiatives are initia
lly
b
ein
g
rea
l
ize
d
wit
h
the new establishment of a toner cartrid
g
e plant at
Canon Virginia. Canon’s operations in t
h
e Unite
d
States will come of age, encompassing all processes
from production to sales, collection and recycling.
Looking
f
orward, Canon is considering the imple
-
mentation o
f
localized production in Europe with
an e
y
e to optimizin
g
production capacit
y
in line
wit
h
gl
o
b
a
l
mar
k
et
d
eman
d
s.
P
romoting In-House Pro
d
uctio
n
Canon pursues in-
h
ouse pro
d
uction as a strategy
for accumulating its technology and know-how,
thereby enabling the Company to differentiate its
products and raise product quality.
In 2008, the Compan
y
promoted the in-house
production o
f
electrophoto
g
raphic and optical ke
y
parts, as we
ll
as meta
l
mo
ld
s. T
h
e Compan
y
a
l
so
established a new facilit
y
for the development and
in-house
p
roduction of semiconductor devices,
including CMOS sensors, at the Kawasaki Offi ce in
Kanagawa, Japan
.
In Februar
y
2008, Canon entered into a compre
-
hensive alliance with Hitachi
,
Ltd.
,
and Panasonic
Corporation (then Matsushita Electric Industrial
Co., Ltd.). The Compan
y
acquired a 24.9% stake in
Hitachi Displays, a Hitachi subsidiary that manufac
-
tures sma
ll
- an
d
me
d
ium-size
d
LCD
p
ane
l
s. Wit
h
this ac
q
uisition, we are able to undertake the in
-
house production of LCD panels as key compo
-
nents
f
or Canon products
.
F
u
ll A
uto
m
at
i
o
n
to
M
a
in
ta
in In
te
rn
at
i
o
n
a
l
C
om
p
etitivenes
s
Canon pursues full
y
automated production as
a means of boosting productivity. In 2008, new
automation systems developed for toner cartridge
production by Canon and Canon Machinery Inc.
were installed and put into operation. Canon will
start automated production o
f
toner cartridges in
Canon Vir
g
inia at the end o
f
2009.
Canon is workin
g
toward expandin
g
the scope
o
f
automation to other products. We have alread
y
started automated production for ink
j
et cartrid
g
es
and ex
p
anded its o
p
erations in 2008. As a further
step in t
h
is
d
irection, t
h
e Company
b
egan intro
d
uc
-
ing automated machinery to certain sections of its
assembly cells for inkjet printers and LBPs in 2008
.
In addition
,
to handle brisk demand
f
or automated
machiner
y
, Canon Machiner
y
built a plant in Shi
g
a,
Japan, in 2008, and expanded production with the
aims o
f
increasin
g
productivit
y
and reducin
g
costs.
Canon Work
f
orce Development Center in Virginia. Canon
c
ollaborates with a local colle
g
e to conduct technical trainin
g.
Cell production
f
or
ink
j
et printers at
Canon V
i
etnam Co.
,
Ltd. In 2008, the new
Tien-Son p
l
ant
s
tarted o
p
eration
.