Canon 2009 Annual Report Download - page 18

16 CANON ANNUAL REPORT 2009
Having experienced periods of extremely diffi cult market conditions
in the past, Canon has come to fully understand the necessity of
becoming a corporation with a fi rm structure capable of responding
rapidly and fl exibly to any changes in external conditions. This
understanding acted as a catalyst for our success to date in improv-
ing the quality of management.
Improving management quality is synonymous with developing
the capability to realize real-time management, that is, reinforcing
the Company’s comprehensive capabilities to make decisions accu-
rately and agilely and translating those decisions into swift action
even amid dynamic fl uctuations in market conditions. Through the
achievement of sophisticated SCM, IT reforms and an optimal global
production structure, Canon aims to realize real-time management.
Establishing Sophisticated SCM
Canon aims to realize sophisticated SCM that considers not only
procurement and production processes but also the design process.
To remain successful amid major market changes, Canon must
continue to expeditiously launch competitive new products in an
effi cient manner. This cannot be achieved through product planning
and development capabilities alone. We will realize more sophisti-
cated SCM in order to facilitate the timely and effi cient launch and
supply of our products.
Sophisticated SCM will be based on the concept of eliminating
intermediate ineffi ciencies throughout the process, from develop-
ment to sales and marketing. In other words, if Canon utilizes
effi cient SCM, it will be able to minimize lead times, prevent stagna-
tion in parts and product distribution and directly connect production
and sales activities. The realization of such sophisticated SCM will
come through the reinforcement of Canon’s purchase order-oriented
production system, cell production and logistics capabilities.
Realizing IT Reforms
Canon is very much aware that IT reforms hold the key to improve-
ments in SCM and, ultimately, management quality. Such IT reforms
will enable Canon to centralize the information management of all
its business processes, which will, in turn, empower it in the achieve-
ment of sophisticated SCM. By effectively using information through
IT, the Company aims to integrate the outcomes of the management
reforms that it has undertaken to date, thereby enhancing the
effi ciency of its management and operations. Consequently, SCM
will allow us to meet changes in market conditions more effi ciently
and effectively as well as to strategize our production and marketing
activities more fl exibly.
From Development to Production
In Canon’s upstream IT reforms, the utmost priority has been given to
the standardization and integration of the 3D-CAD systems used for
>> IMPROVING THE QUALITY OF MANAGEMENT
Canon gained a foothold in 2009 in improving its management quality and will con-
tinue to improve it, aiming to achieve renewed sound growth.
IT Reform
Prompt Optimization of Inventories,
Capital Expenditures and SG&A
Supply Chain
Value Chain
Procurement Production
Development/
Design
Product Planning Mass-Production
Trial
Sales &
Marketing Service
Quality Information
3D Information Purchase Order Information
In connection with Group-wide 3D-CAD system standardization
and integration, the introduction of a PDM system will enable
centralized technical information management throughout the
design, procurement, prototyping and production processes,
thereby shortening development times.
With procurement and production operations sharing the
purchase-order information managed by sales and marketing,
Canon will be able to optimize its control of inventories, facility
utilization and costs in sync with market fluctuations. This
approach will allow the Company to establish sophisticated SCM.
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