Monozukuri (Manufacturing) Reforms

New value creation through Manufacturing

Along with the formulation of the medium-term management plan VISION2023, we have newly established Engineering Innovation Department, as a head office function that serves as a manufacturing skill group linked to business domains, responsible for design environment reform, advanced skill acquisition regarding production technology, quality control functions, and strategic material procurement.

Under the newly formulated VISION 2025, we will continue promoting the integration of production bases, promotion of automated production, encouragement of local production for local consumption, and establishment of a supplier ecosystem. In this regard, we have been working on "production grand design" and "design revolution" that fit the total production volume and total man-hours. We aim to establish manufacturing standards in which anyone is enabled to design, any place is suited to produce, production systems are optimized and standardized, shipping quality is ensured, and work styles are diversified.

Production Grand Design

The JVCKENWOOD Group has established the following three perspectives as its grand design in promoting Monozukuri (Manufacturing) Reforms

■ Acceleration the return to domestic production, including encouragement of local production for local consumption, cooperation with SCM reform, and reduction of fixed manufacturing costs appropriate to the scale of business

■ Further promotion of automated production, such as parts delivery by AGVs

■ Real-time monitoring of production, including the introduction of manufacturing execution systems

Design Revolution

The JVCKENWOOD Group has working on three design reforms in promoting Monozukuri (Manufacturing) Reforms

■ Moving to cloud-based design tools

■ Linking design support tools and procurement systems

■ High-efficiency facilities design by integrating technological resources, such as the establishment of Value Creation Square, an integration of development sites.

Progress in manufacturing reforms

Among initiatives to return to domestic production, for which we have been working as a part of production grand design, we made decisions at an earlier stage to take on the challenge of realizing a production model based on local production for local consumption, and promoted automated production aiming to enhance our management assets. To begin with, in February 2022, we began full-scale production transfer to a factory in Nagano of car navigation systems for the domestic aftermarket that were previously produced at a factory in Indonesia. Thereafter, we transferred the production of projectors from a Thai plant to the Yokosuka Business Center. In addition, we transferred the production of car navigation systems for domestic OEM from a factory in China (Shanghai) to a factory in Nagano, and in September 2023 we ceased production in China (Shanghai). In March 2023, we transferred the car audio development functions from Singapore to Japan.

While we proceed to reorganize production bases in an accelerated manner, we aim to manufacture products in a way in which the "design environment is standardized and products of any categories can be designed" as well as so that "products of any categories can be produced independent of a particular base."

Returning to domestic production (JVCKENWOOD Nagano Corporation)

Although there were great concerns about maintaining the continuity of production activities due to the global economic stagnation caused by the COVID-19, difficulties in procuring parts and materials, especially semiconductors, and disruptions in distribution networks, we made a decision to challenge the realization of a local production for local consumption production model at an early stage under the banner of total cost reform, and as one measure of Monozukuri (Manufacturing) reforms, we dared to return to domestic production and promoted automated production to upgrade our management assets.
In late February 2022, JVCKENWOOD Nagano began full-scale production of car navigation systems for the domestic aftermarket, including production of navigation systems exclusively for domestic automakers. In FY 2022, we will produce more than 300,000 units per year, including production of navigation systems exclusively for domestic automakers. JVCKENWOOD Nagano, as a core plant in the Mobility & Telematics Services Sector, which leads and implements the enhancement of production technology and the promotion of automation, is required to play a role of reflecting the proposal of the optimal product structure in product design from the viewpoint of manufacturing sites, and maximizing competitiveness by reducing costs in manufacturing processes and methods, and reducing labor costs and improving quality through automation and new methods.

JVCKENWOOD Nagano Corporation

Automated manufacturing line