Mid-term Business Strategy Conference

Strengthen Manufacturing Capability

Goal: Quality Innovation

Key Strategies:

(1) Production Innovation	"Make problems visible", "Strengthen work place"
Improve production technology Enhance training & education Strengthen maintenance activities		Improve operating efficiency of existing equipment Stabilize processing capabilities, including pre-processing
(2) Business Process Innovation	"Reinforce management with total supply chain"
Improve operation through “standardization” and better flow of information Strengthen management capabilities of headquarters		Shorten lead-time Improve inventory turnover
(3) Procurement Innovation	"Improve profit center function"
Strengthen strategic partnerships with suppliers Accelerate global procurement		Continue further cost reductions Stabilize procurement