Ricoh 2014 Annual Report Download - page 61

Overview Action Data & Prole
SCM
Ricoh Group Sustainability Report 2014 60
The“ConictMineralsIssue”
is a issue in which the prots
from minerals mined or traded
nance armed groups and
fosterconicts,andoften
involves human rights abuses,
labor issues and environmental
destruction, etc. The Dodd-
Frank Wall Street Reform and
Consumer Protection Act,
enacted in July 2010, requires
specied companies to report
theuseofconictminerals—
tin, tantalum, tungsten, and
gold—and any other minerals
determined by the U.S.
Department of State which
originated in the Democratic
Republic of Congo and/or an
adjoining country.
*1
Production
The Ricoh Group aims to have all its products locally produced and locally consumed, as this not
only improves production efciency but also minimizes environmental impact. We are constantly
innovating production processes and introducing high-efciency equipment at all production sites
to curb our global CO2 emissions. ➤ WEB6
Efcient production closer to the customer
Local production for local consumption allows us to
reduce inventories of nished goods and manage-
ment expenses as well. The production sites in our
four regions of operation are all situated to maximize
theefciencyofourMB&R(ModularBuild&Replen-
ishment)*2 system, which utilizes manufacturing hubs
and conguration centers to optimize quality and
productivitywhileminimizingcosts.Beingclosetothe
customer, the conguration centers can promptly
fulll orders within their region.
TheMB&R(ModularBuild&
Replenishment) production
method relies on nal assembly
at the last possible step of
the production process. We
make modules at lower cost
at intensive manufacturing
sites (China and Thailand) and
assemble nished products
at conguration centers in
consuming regions (Japan, the
Americas,Europe).Thisallows
us to market model types best
suited to regional needs or to
respond quickly to changing
demands.
Flexible production line
Starting in 1999, Ricoh gradually began eliminating
xed conveyor lines and replacing them with free
form production channels that can be dynamically
recongured to handle changes in production volume
and models.
One example is the cart production line, in which
multiple carts powered by air cylinders are lined up
in a row. The carts move down the line carrying
products being assembled. Since conveyors—which
consume high amounts of energy—are unnecessary,
our unique system
signicantly reduces
environmental
impact and energy
costs while boosting
productivity.
The Americas
(Production sites
in consuming region)
Europe
(Production sites
in consuming region)
Japan
(Production sites
in consuming region)
Final assembly (MB&R)
Customized conguration
Recycling
Final assembly (MB&R)
Customized conguration
Recycling
Final assembly (MB&R)
Customized conguration
Recycling
Module production
Final assembly
China/Thailand
(Intensive production sites)
Conict Minerals Issue
TheRicohGroupbelievestheConictMineralsIssue*1
is crucial. We are constantly working with our busi-
ness partners to improve transparency in the supply
chain to ensure responsible mineral sourcing practices.
In 2013, we identied as best we could the parts and
materials used in the products we make or outsource
for production, and conducted a survey of all the
sup pliers around the world who provide these parts
and materials. We received detailed responses from
more than 90% of the targeted suppliers. Going
forward, we will continue to ask for the understanding
and cooperation of suppliers so that we can sustain
responsible mineral sourcing practices. ➤ WEB5
Sharing information with suppliers
In2001,theRicohGrouplaunchedRaVenderNET,
anetwork for sharing information on production and
environmental impact caused by raw materials and
parts.RaVenderNETwasexpandedin2005toinclude
overseas vendors. The network, which is maintained
jointly with our suppliers, has streamlined the process
of conrming the compliance of purchase orders with
Ricoh standards from two or three days to just half a
day, substantially shortening production lead times.
The system has also been used to share information
on socially responsible procurement since 2010.
Sales & Service Logistics ProductionProcurement Collection & Recycling
➤ WEB5Conflict Minerals Issue: www.ricoh.com/info/120830.html
➤ WEB6Logistics reform: www.ricoh.com/environment/office/
*2
Cart production line
Supplier CSR procurement self-assessment
Our suppliers are expected to comply with The Ricoh
Group Supplier Code of Conduct, which contains
rules related to environmental conservation and
human rights, such as the prohibition of child labor.
The Ricoh Group Supplier Code of Conduct
Guidebook is distributed to all our suppliers, and in
2009 we invited all major suppliers to a meeting at
which they were presented the Ricoh Group’s CSR
activities. Our aim was to have them share our values
by raising their awareness of the importance of CSR
and the Code of Conduct.
Also in 2009, we introduced a CSR Self-
Assessment System that helps suppliers implement
a “plan, do, check, act” (PDCA) cycle by themselves.
The system was initially rolled out in Japan and has
since been gradually extended to other countries.
Company activities that require improvement are
identied by these assessments, with the results
fed back to the suppliers together with advice
and support on ways to meet society’s needs and
expectations. The CSR Self-Assessment System has
been used by local suppliers in China since 2010, and
was introduced to Thailand in 2013. P.95