Quality
Shareholders and Investors, Suppliers and Other Trade Partners, Employees, Global Environment
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Activities of Quality Management

Quality Assurance Systems

Acquisition of certifications for quality management systems

The Sumitomo Riko Group's quality assurance system is based on IATF16949 (new standard that superseded and replaced ISO/TS16949), the international standard for quality management for the automotive products business. In addition, we strictly observe the ISO9001 standard, which covers the general Industrial Products Business. Thus, we strive to ensure continued quality improvement for our products even after they are shipped from our plants into the market. We are also actively promoting the establishment of quality assurance systems at our overseas sites. Our aim is to obtain IATF or ISO certifications at all our sites.
Currently, a total of 60 sites, consisting of 10 sites in Japan and 50 sites overseas, have gained IATF or ISO certifications.

Quality assurance systems based on SRK-GQS

In the context of the Sumitomo Riko Group's ongoing globalization, due to the need to establish uniform rules that will be observed by all Group companies, the Sumitomo Riko Global Quality Standards (SRK-GQS) were established. Based on ISO 9001 and IATF 16949 and incorporating Sumitomo Riko Group best practices, the SRK-GQS prescribe matters whose observance throughout the Group is mandatory.
SRK-GQS consists of three levels: Level 1, which indicates the guidelines that form the axis of quality assurance activities; Level 2, which describes the business standards that clarify the management of milestones from product planning by each business unit to mass production; and Level 3, which prescribes the actual individual tasks. The preparation and release of a total of nine standards in Level 1 were completed in fiscal 2019. In fiscal 2020, we will work on the preparation of Level 2 (standards for milestone management) and Level 3 (actual work procedures).

Audit of suppliers' quality systems

In order to reinforce the quality assurance system of the Sumitomo Riko Group, we have been executing suppliers' quality system audits since fiscal 2011. For this audit, each manufacturing site is audited based on the global common check sheet covering all items indispensable for establishing a quality assurance system, including top management.
We conducted audits of 22 new suppliers in fiscal 2019. In fiscal 2020, we will audit 38 suppliers, including renewal audits of suppliers for which three years have passed since the initial audit and audits of new suppliers, in an effort to strengthen and enhance our quality assurance framework.

Application of the EDER System

The Sumitomo Riko Group is applying the Early Detection Early Resolution (EDER) System as part of field quality assurance activities. This system enables quick response to quality issues by swiftly obtaining information and is effective for averting quality risks and preventing proliferation of quality problems. The EDER System has been the norm for all Sumitomo Riko companies in Japan since fiscal 2012, and we are currently rolling out the system globally.

Quality Governance

Quality control audit

The Sumitomo Riko Group introduced quality audits from the viewpoint of internal control to monitor whether there is any wrongdoing in fiscal 2016. We have been executing this "quality control audit" globally.
In fiscal 2019, we conducted audits of six locations overseas, namely two in Indonesia, two in Thailand, and two in India. In fiscal 2020, in addition to the quality control audits, we will conduct contract fulfillment audits to ascertain whether contracts with customers are being fulfilled appropriately, in an effort to raise the standard of quality control audits. We will conduct new audit activities of all business units in Japan as well as four locations in Asia to further enhance our response to quality risks globally.

Creation of a Quality Culture

With the aim of fostering a corporate culture that puts quality first, in fiscal 2019 we designated the 9th, 19th, and 29th of each month as “Q Day” throughout the Company, a day on which quality-related work is prioritized.
With the aim of enhancing product quality, quality of work, and communication, since fiscal 2019, Q Day has become firmly established within the Group as a valuable opportunity for departments to enhance communication between managers/supervisors and subordinates and for discussion of key issues in the individual departments, such as the development of globally consistent work procedures, the establishment of a system conducive to the creation of high-quality products, and the development of personnel who are capable of high-quality work.
In fiscal 2020, with the aim of retaining the outcomes of these activities as operational standards and procedural manuals and turning them into assets, we will expand the scope of safety activities to include group companies in Japan, as well as Sumitomo Riko itself.

Recognition Received from Customers

The Sumitomo Riko Group engages in improvement activities focusing on quality, cost, and delivery at business sites in Japan and around the world. It is particularly gratifying for us that customers worldwide recognize our noteworthy initiatives each year. In fiscal 2019, the Group's 13 sites received 24 awards (four in Japan and 20 overseas).

FY2019 supplier awards received

Japan
CustomerAwardAwardee
Yachiyo Industry Co., Ltd.Cost Category - Competitor VA Cooperation AwardSumitomo Riko
Yachiyo Industry Co., Ltd.Cost Category Award
Suzuki Motor CorporationOverseas Contribution Award
Caterpillar Japan LLCSupplier Quality Excellence Process Gold MedalSRK-HT
Overseas
CustomerAwardAwardee
General Motors Company Quality Award for 2019 SRK-QRO
TD Deutsche Klimakompressor GmbH Best Supplier Award(Best Clutch Part Spplier) SRK-P
Honda Car India Ltd. Quality Certificate TIR
Honda Motor India Ltd. Excellent Award(Spare Parts) TRIN
Honda Automobile (Thailand) Co., Ltd. The Environmental Award SRK-ER
General Motors (Thailand) Limited, Quality Excellence Award SRK-ER
Dongfeng Honda Automobile Co., Ltd. Excellent Supplier Award TRG
Dongfeng Honda Engine Co., Ltd. Supplier Excellence Award TRG
Yachiyo Zhongshan Manufacturing Co., Ltd. Quality Excellence Award and Cooperation Award TRG
GAC Toyota Motor Co., Ltd. Quality Cooperation Award TRJ
Quality Cooperation Award TRG
General Motors do Brasil Ltda. Supplier Quality Excellence Award SRK-HDB
Toyota Motor Vietnam Best Improvement Award for Cost SRK-HV
PT.Honda Prospect Motor Best Quolity TRHI
Mitsubishi Heavy Industries Forklift (Dalian) Co., Ltd. Contribution Award TRFH
Sany Heavy Industry Co., Ltd. Superior Supplier Award
Caterpillar (Suzhou) Co., Ltd. SQEP GOLD MEDAL
Zhongwang Branch, Zoomlion Heavy Industry Science and Technology Co., Ltd.. Best Quality Award
Hitachi Construction Machinery (China) Co., Ltd. Price Competitiveness Excellence Award
Hefei Economic and Technological Development Zone Growth Progress Award

SUMITOMO RIKO COMPANY LIMITED.

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