Olympus 2013 Annual Report Download - page 20

36 OLYMPUS Annual Report 2013 37OLYMPUS Annual Report 2013
MEDICAL BUSINESS
Aizu Investment:
¥9.4 billion
Shirakawa Investment:
¥8.6 billion
Aomori Investment:
¥1.7 billion
Approx. ¥20 billion
Start of
expansion
Commencement of
enhanced operations
Characteristics of Endoscopy System Manufacturing Techniques That Realize
High-Mix, Low-Volume Production
The number of different variations of endoscopes we offer grows each year, and we currently offer more than 300 different
models of endoscopes. Creating endoscopes requires sophisticated manufacturing technologies as well as high-mix, low-
volume production systems. On top of fulfi lling these requirements, we have maintained a stance toward production that
compels us to develop components and equipment ourselves should the market be unable to supply us with items that
meet our expectations for craftsmanship. As the components of endoscopes have incredibly intricate structures, it is
impossible to fi nd ready-made blades for their production. Therefore, each time we need to develop new endoscope
components, we start by creating custom blades and other tools capable of meeting our design specifi cations. The unique
products Olympus offers are the result of an ongoing, comprehensive process of in-house craftsmanship, which entails
resolving issues on our own. This thorough process has enabled us to earn the trust from the world that we hold today.
Detailed eye for customer needs
High-Mix, Low-Volume Production
In-house development of materials, capabilities,
and crafted components not otherwise available
High-precision crafting technologies that create components
accurate to the micron
Japanese assembly technologies that make fi ne adjustments based
on combinations of various technologies and expertise
From Japan to the World
Olympus produces its endoscopes entirely in Japan so that it can employ a level of craftsmanship
only found in its domestic facilities. At domestic endoscope factories, we have established a
comprehensive manufacturing system that encompasses tasks ranging from collaborating with
research and development teams to providing after-sales support services. This approach enables
us to quickly integrate feedback from the medical fi eld into our production. We also have a stance
that inspires us to make our own components if we cannot obtain what we need from outside
suppliers; this commitment enables us to better respond to the needs of medical practitioners
worldwide. Endoscopes are expected to be of high quality and deliver advanced functionality
for healthcare professionals and their patients anywhere in the world. Medical practitioners are
constantly in search of advanced endoscopes with enhanced functionality, versatility, imaging,
and design. Going forward, we will continue to bolster our production capabilities and
pursue ongoing technological innovation in pace with the ever changing medical
industry as we strive to achieve higher profi tability and further growth. In this
manner, we are dedicated to supplying quality products from Japan to the world.
Domestic Manufacturing Site Reinforcing Our Competitiveness (Aizu, Fukushima Prefecture)
Overview of Manufacturing Site
Reinforcement Plans
Role of Principal Domestic Manufacturing Sites
The Company’s principal domestic manufacturing
sites produce such medical devices as endoscopes,
which require high-mix, low-volume production
systems and the application of specialized
technologies and expertise. We produce these items
in Japan so that we may fully leverage the advanced
manufacturing technologies housed within our
domestic locations. By combining the various
technological specialties of each manufacturing
facility, we are able to create endoscopy systems
that continue to win the trust and support of
physicians throughout the world.
Investment Benefi ts and Schedule
30% increase in production capacity:
Increase production by constructing new buildings
to expand fl oor space
50% improvement in production effi ciency:
Improve production effi ciency by instituting production
reforms, optimizing layout for medical equipment
production, and revising workfl ow processes
Implementation of business continuity measures:
Utilize experience with the Great East Japan
Earthquake to develop production systems that
ensure a stable supply of medical equipment even
under extreme circumstances
Image development
technologies
Aomori Olympus Co., Ltd.
Development and manufacture of
endotherapic devices
Disposable product and
high-mix manufacturing
technologies
Aizu Olympus Co., Ltd.
Development and manufacture
of endoscopes
Advanced precision
processing technologies
Decision to Invest about ¥20 Billion in Domestic Manufacturing
Sites to Reinforce One-of-a-Kind Manufacturing Technologies
and Ensure Product Availability
Olympus boasts a share of the global gastrointestinal endoscope market of more than 70%, representing an undisputed
competitive advantage. This achievement is supported by a diverse range of strengths, including the trust of physicians
earned throughout our years of operation and partnership, a solid business infrastructure across the world, unique and
sophisticated technical capabilities, and one-of-a-kind manufacturing technologies, each developed with a focus on
meeting the demands of physicians. To better leverage one of these strengths, we have decided to reinforce our
superior manufacturing technologies by investing approximately ¥20 billion in our domestic manufacturing sites. We
believe this will sharpen our competitive edge and solidify the production systems we use to provide the world with a
stable supply of medical equipment.
CLOSE UP
High-precision endoscope tips
Highly precise scope assembly process
Aizu Olympus
Nobuyuki Koga
Aizu Olympus Co., Ltd.
President
Review of Business Segments
Business Focus:
Medical Business Earnings and Growth Drivers
Shirakawa Olympus Co., Ltd.
Development and manufacture of
power supplies, light sources, and
imaging processing equipment
August
2014
May
2016