DENSO is working on a transition to superior Dantotsu plants to make its domestic
production more competitive. We are targeting increased production efficiency through
such measures as cutting processing costs through faster and more continually operat- ing production lines, applying initiatives including the use of 1/N production equip- ment*. Reduced administrative costs and overheads from rationalization of logistics and inspections and reduced material costs from reform of procurement and lower pur- chased parts costs will also contribute to increased efficiency. Initiatives associated with creating more-compact, low-cost facilities will also be extended to overseas plants. *. 1/N production equipment Equipment that significantry reduces floor area, investment costs, by processing costs by aligning produc- tion volume (economic units) with assembly, through more-compact production facilities and upgrading the production line. Dantotsu (outstanding) plants Monozukuri Through the DENSO style of monozukuri (the art of making things), cutting-edge product devel- opment and innovative self-development and self-production of essential technologies, DENSO has generated a range of world-first products. This uncompromising stance on monozukuri has laid the foundations for DENSOs increased competitiveness and enhanced corporate value. Sup- porting this creation of new value are a large number of engineers and technical personnel. DENSO believes that monozukuri is hitozukuri, which is to say, the art of making good things is the same thing as the art of making good people, and this is the source and driving force behind value creation for DENSO. We are pursuing cost-half activities for 23 major products aimed at emerging markets where further market growth is expected, targeting the establishment of low-cost technologies. Providing a level of functionality and quality to meet the demands of the market, systems are in place locally for every stage from development to production and sales. At present, we have reached our goal for 17 products, achieving a 40% cut in price. We also opened technical centers for supporting these activities in Delhi, India, in March 2012, and Santa Barbara, Brazil, in July of the same year, expanding our develop- ment network to seven locations around the world. We are continuing to increase our global market presence through expansion of our activities Groupwide. Initiatives Directed at Emerging Markets The DENSO Spirit clearly expresses our stance regarding the values of Foresight, Credi- bility and Collaboration, which have been implicit values continuously since the foun- dation of DENSO Corporation and a driving force behind our activities. The DENSO Spirit has been translated into 17 languages to share among associates. In the DENSO Group, we are working to enhance training policies to develop staff who can study on their own and think for themselves, and who continually seek new chal- lenges. We have prepared high-level programs for engineering and technical staff through the DENSO E&TS Training Center Corporation. Around half of the staff taking part in the programs are the DENSO Groups overseas associates. As a genuinely global corporation, we have put in place management systems tied closely to different coun- tries and regions, pursuing activities under the slogan, One DENSO, One HR. Achieving the highest results by working as a team Collaboration Providing quality and reliability beyond customer expectations Credibility Providing surprises and impressions in a way that only DENSO can Foresight The DENSO Spirit There are a total of more than 130,000 people working in the DENSO Group. The Groups varied and individual associates around the world have integral parts of the corporate DNA passed down to them, such as DENSOs attitude toward monozukuri, and share values to grow and develop further. Hitozukuri (making good people) 1. Optimize Function & Performance 2. Optimize Product Structure 3. Set-up the Specific Quality Standard 4. Strengthen Localization Monozukuri 5. Enlarge Global Development Elements of the Activity We are pursuing cost-half activities for 23 major products aimed at emerging markets where further market growth is expected, targeting the establishment of low-cost technologies. Providing a level of functionality and quality to meet the demands of the market, systems are in place locally for every stage from development to production and sales. At present, we have reached our goal for 17 products, achieving a 40% cut in price. We also opened technical centers for supporting these activities in Delhi, India, in March 2012, and Santa Barbara, Brazil, in July of the same year, expanding our develop- ment network to seven locations around the world. We are continuing to increase our global market presence through expansion of our activities Groupwide. DENSO considers high-level technical skills and know-how as the two key factors of tech- nological development and monozukuri, striving to train its technical staff and pass down technical skills. As part of these efforts, it encourages partici- pation in the WorldSkills Competition, where young competitors demonstrate world-class skills in various categories. To date, the DENSO Group has won 28 gold, 15 silver, and 13 bronze medals, and aims to continue entering the tournament as a means of fostering the skills of young technical staff, and passing skills on to the next generation. The WorldSkills Competition