Engagement with Customers

In order to deliver high-quality products to customers, we emphasize product development from the viewpoint of customers and optimize production, quality assurance and other systems. To remain a company that grows with the joy and satisfaction of customers, Hitachi Cable will continue to do its best in the future.

Manufacturing and human resource development with the "Hitachi Cable Just-in-Time (JIT) Production System"

Mentality of the "Hitachi Cable Just-in-Time (JIT) Production System"

Hitachi Cable introduced the "Hitachi Cable Just-in-Time (JIT) Production System" in FY2007. This "production system" is based on the Toyota Motor Corporation Production System and aims for a thorough elimination of waste. From the standpoint of total optimization, every process from marketing, design to procurement, manufacturing and shipment is reviewed to establish a production framework to produce "what is needed to be produced to the amount needed when it is needed."
The "Hitachi Cable Just-in-Time (JIT) Production System" is to ensure a rearing of talent in view of total optimization take root in the company. Under the concept that the evolution of "manufacturing" means "development of human resources," Hitachi Cable keeps on advancing.

Initiatives to enhance value for customers

In order to effectively operate the "Hitachi Cable Just-in- Time (JIT) Production System" and to enhance value for customers, the flow of the entire supply chain must be adjusted. Our Group started the "Business Strategy Visibility Project" with a cross-functional team comprising of members from Manufacturing, Business Planning, Sales, Development/ Design, Production Planning, Procurement, Quality Assurance and Logistics, since FY2007. The project team has thorough discussions on what values must be provided to customers by division or by product group, grasps the strengths and weakness of individual divisions, clarifies the key challenges and takes the necessary measures.
Currently, the "Hitachi Cable Just-in- Time (JIT) Production System" has been introduced to all six works, expanding the coverage of departments and sections. The System is now in the process of being deployed to domestic Group companies and preparations for extension to overseas Group companies is also in progress.

Quality Assurance

Mentality of Quality Assurance

Basic Principle of Quality Assurance

Aiming for "quality first" and "customer first" based on Hitachi's Ochibo Seishin (spirit of Ochibo)*1, we offer highly reliable products with secured product safety (including software, etc.) to satisfy customers, and thereby contribute to the development of society.

Based on its "Basic Principle of Quality Assurance," Hitachi Cable promotes initiatives to improve quality and customer satisfaction within the entire Group. In order to realize this Basic Principle, we establish a yearly corporate-wide quality policy, set concrete targets and address quality assurance activities.
Furthermore, to improve quality and operational efficiency and to increase customer satisfaction, the Hitachi Cable Group has established quality management systems appropriate for individual operations while aggressively supporting the achievement of ISO9001 or ISO/TS16949 at both domestic and international production bases*2

*1	Ochibo Seishin: Hitachi Group's tradition of "acting on the basis of conscience and humanity." Our efforts to eliminate product defects and accidents are based on this spirit.
*2	Group companies manufacturing products for vehicles have achieved ISO/ TS16949 certification.

Acquisition of ISO Quality Management System Certifications (as of March 31, 2009)
Hitachi Cable

Name of Works Month and year of ISO9001 acquisition Authorizing agency Densen Works 1995.10 LRQA Hitaka Works* 1994.2 LRQA Tsuchiura Works 1998.12 LRQA

* Including Takasago Works, Toyoura Works and Minato Works

Acquisition of ISO Quality Management System Certifications (as of March 31, 2009)
Domestic Group Companies

Name of Works Month and year of ISO9001 acquisition Authorizing agency Tonichi Kyosan Cable, Ltd. 1996.1 LRQA Hitachi Cable Film Device, Ltd. 2009.1 JQA Hitachi Alloy, Ltd. 2004.3 LRQA Hitachi Wire & Rod Ltd. 2003.8 LRQA Hitachi Cable Precision Co., Ltd. 2002.7 LRQA Hitachi Cable Fine Tech, Ltd. 1994.2 LRQA Hitachi Cable Logi-Tech, Ltd. * LRQA Hitachi Cable Networks, Ltd. 2004.3 LRQA Hitachi Cable MECTech, Ltd. 1998.10 LRQA Hitachi Magnet Wire Corp. 2002.9 LRQA Tohoku Rubber Co., Ltd. 2001.11 LRQA

* Simultaneously acquired with the works of Hitachi Cable

Acquisition of ISO Quality Management System Certifications (as of March 31, 2009)
Overseas Group Companies

Company name Month and year of ISO9001 acquisition Authorizing agency Month and year of ISO/TS16949 (automobiles acquisition) Authorizing agency Remarks Shanghai Hitachi Cable Co., Ltd. 2002.3 SAC 2008.1 SGS   Hitachi Cable (Suzhou) Co., Ltd. Cable Works 2007.8 CQC       Assembly Works 2004.5 UL       Hitachi Cable (Johor) Sdn. Bhd. PLO50 2000.5 LRQA 2006.7 LRQA   PLO40 Giga Epitaxy Technology Corporation 2003.1 AFAQ-EAQA       Hitachi Cable Indiana, Inc.     2007.2 Eagle Registrations   AHCL (Thailand) Co., Ltd. 2006.2 URS 2006.2 URS   Hitachi Cable Florida, Inc.     2008.12 SGS   Hitachi Cable (Singapore) Pte. Ltd. 2002.11 LRQA 2005.6 LRQA   Suzhou Hitachi Cable Precision Co., Ltd. 2006.7 LRQA 2008.1 LRQA   Thai Hitachi EnamelWire Co., Ltd. 2003.5 SGS 2007.3 SGS   Hitachi Cable Philippines, Inc. 2003.12 AJA       Hitachi CableManchester Inc. 2003.8 UL       HC Queretaro, S.A. de C.V. 2006.11 SGS 2006.11 SGS   PHCP, INC. 1998.5 SGS 2005.1 SGS   Hitachi Bangkok Cable Co., Ltd. Bangpakong 2003.6 MASCI       Shingburi 2002.11 MASCI       Huanan Wire & Cable Services Co., Ltd. 2003.2 UL 2005.11 SGS ISO13485 acquired Shenzhen Hitachi Cable Co., Ltd. 2008.9 UL       Hitachi Cable Austria GmbH 2006.6 TUV       Hitachi CableUK, Ltd. 2003.1 BSI       Hitachi Cable PS Techno (Malaysia) Sdn. Bhd. 2002.10 BVQI 2009.3 BVQI

Quality Assurance System

The Quality Assurance Departments of each business group and Group company are engaged in quality assurance operations of products they are responsible for, making efforts for quality improvement. In addition, from a corporatewide perspective, the Quality Assurance Center supports on a departmental basis, the Group and Divisions through promoting corporate-wide quality assurance activities and implementing quality education in order to make sure qualityrelated activities go smoothly.
As a company-wide organization on quality, we have established a Quality First Committee and Company-wide Quality Assurance Conference. These committee activities enable those concerned including, Officers to share information on quality situations and to promote continuous improvement by discussing challenges and directions for improvement.

Quality improvement activities

The entire Hitachi Cable Group developed "New QF21 (Quality First for 21st century)" as quality improvement activities from FY2007 to FY2009. This movement, including "Strengthening of CSR for quality" features the below five themes to address, and each Group and Division implements it on the basis of PDCA (Plan-Do-Check-Act): planning, implementation, follow-up at the Committee, including executives and review. From FY2010 to FY2012, aiming for a further improvement in quality, we shall launch the third activity "QF21 (III)."

1.Strengthen quality-related CSR   In order to promote business operations in an orderly manner, we carry out investigations on and thorough awareness raising of technical laws and regulations applied to our products as well as an establishment of compliance mechanisms for individual operational processes.   2.Quality improvement of procured and subcontracted goods   In order to strengthen supply chain management, including the globalization of the procurement of parts, components and materials, we are restructuring the quality control system of procured and subcontracted goods, and are promoting activities to improve the skills of control engineers.   3.Global quality improvement   Aiming for the "same quality throughout the world," we promote quality improvement activities working together with overseas Group companies.   4.Improvement of quality measures   To meet customer's expectations of quality and to firmly establish a business foundation, we quantify quality for improvement.   5.Human resource development   We regularly hold quality control and quality control technical courses in order to improve skills by function. Furthermore, in consideration of frequent issues of corporate ethics in recent years, we host ethical education for engineers through manager training and e-learning courses in order to promote an understanding of the importance of compliance and to prevent issues in actual business.

Small group activities

Ever since their introduction as the core of TQC (Total Quality Control) in 1968, small group activities have been actively working in each Business Group and Group company.
In recent years, the range of the activities has been expanded to cover QCD (Quality, Cost and Delivery) improvement in general, which has become an important activity strengthing our business foundation. In order to vitalize mutual studies and activities of small groups, we host a "International Convention" to announce the results of small group activities at domestic sites and Group companies as well as an "International Convention" to include domestic and overseas Group companies.
During the "International Convention" in FY2009, 21 companies from 10 countries gathered to present results and actively exchange opinion.

Handling quality issues

If any quality issue occurs, it is communicated to departments and sections concerned through predefined rules and routes. If a major product accident takes place, it is promptly reported to top management to take quick action, placing priority on customers.
Countermeasures for any product accident are pursued on the basis of two aspects, direct cause of the accident and the motivational reason of the background to prevent a recurrence.
In addition, from May to June every year, an "Ochibo Hiroi" meeting*3 inherent to the Hitachi Group is held at each Business Group and domestic Group company, and under the guidance of top management, those directly involved in accidents and those concerned learn lessons from the mistakes and contribute them to future operations.

*3	"Ochibo Hiroi" meeting is an activity to review product accidents from the viewpoint of customers, reflect on them and prevent their recurrence.