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SLOW. TREE, NEC Invitation to the Internet NEC OMS NEC Quality Management Corporate Philosophy NEC strives through "C&C" to help advance societies worldwide toward deepened mutual understanding and the fulfillment of human potential. Management Commitment NEC is committed to: © Giving top priority to customer satisfaction through relentless efforts to provide better products and better services. © Creating value and usefulness for society through the active exploration of new frontiers in the areas of science and technology. © Tapping the individual uniqueness of each employee and realizing his or her full- est potential. © Fostering the autonomous spirit of each group and affiliate, which adds to the integrated strength of the organization as a whole. © Fulfilling its responsibilities as a corporate citizen. © Increasing profitability to facilitate dynamic growth internally and to contribute to society at large. Better Products and Better Services Contents Contents Introduction .. . Evolution of NEC Quality Management. 2. CSM Concept... 2.1 Significance of CM 22 Scope (1) Scope Q) CSM Cycle 23 Goal 3. Quality System... 3.1 Initiatives 3.2 PDCA Cycle 3.3 Promotion System 10 (1) Organization (2) Principal Committee Organiz 4, Quality Assurance .. 4.1 Quality Assurance Activity and its Global Deployment 42. Quality Assurance Organizational Structure 14 4.3. Complying with International Standards 44 Barth-friendly Products 5, Education .ocnnnnssnne 5.1 CS and Quality Management Education 5.2. Increasing Motivation Introduction Introduction’ Since NEC was first established in 1899, quality has had top priority in our business activities that have been promoted with the motto. "better products and better services.” During these years, NEC expanded its liné of business from communication equipment, components, and information processing equipment to the Computers and ‘Communications (C&C) “? system that integrates all these technologies. NEC is now expanding into the multimedia business, not only in the hardware aspect, but also in software and services as well. In line with this expansion, the concept of quality employed at NEC has expanded from the narrow definition of managing the "quality of products” to "satisfying the demands of the customers." On July 17,1990, the company announced a corporate philosophy and management commitment in which "Giving top priority to customer satisfaction through relentless efforts to provide better products and better services" is strengthened. NEC quality management characteristic is based on the concept that the main area for the enhancement of Customer Satisfaction (CS) activity is the value obtained by using either products or services. In other words, business activity should always be performed with "customer focus" in mind. 1) CaC.Compiters and Communications ‘The Late Dr. Kou Kobayashi, then Chairman of the Board, srmounced th piosophy of CSC atINTELCOM'7, all USA.in1977 1, Evolution of NEC Quality Management i With the motto "Giving top priority to customer satisfaction 1. Evolution of through relentless efforts to provide better products and better NEC Quality services," which has been the guiding principle ever since the company was established, NEC has promoted quality control Management activities that suited the respective age and time, to meet the demands of customers in a changing market environment. Since NEC introduced modern quality control in 1946, NEC has developed unique quality control activities such as adoption of QC, the ZD movement “, Operation Quality", SWQC activities “9 (98 SPEED activities“) and so on. In significant recognition of this effort, many NEC business units were awarded Deming Application Prizes °. To achieve even higher customer satisfaction by thinking and acting with the customers interest in mind, NEC has been conducting CSM activities since 1991. ‘Through these determined efforts, NEC's Semiconductor Group recently won the first ever Japan Quality Award. 0 ‘50 ‘60 '70 ‘80 ‘90 © '46 Quality control is introduced in response toa recommendation from the Occupational Forces GHQ (General Headquarters) @ 48 SQC is adopted (control charts, etc.) @ '52 NEC wins the Deming Application Prize @ 65 Start of the ZD movement @ '72 Start of the Operation Quality program © '73 President's challenge directive for the Deming Application Prize @ '73 NEC wins the Japan Quality Control Medal 71) $C:Statetie! Quatty Control @ '81 Start of SWQC activities “23.20 (aero betes) Hove © '83 President's new challenge directive for the Deming Application Prize sna every by elmira ore rough each inva! employee's @'91 CSM activity implementation in full swing "> Qpaaon Gay cts tae uly 7 © '91 1809000 Series introduced siranan canantyrres tren eat, © '92 CSM concept established *9 NGC ei py ne ay @ '95 Utilization of the Japan Quality Award wil flow. Evaluation System started etisy that @'96 NEC wins Japan Quality Award (Semiconductor Group) +e bernng Appeation Pre Honors a company in recognton sna imrovenats nes @'97 CS & Quality Management eee eee President Award established 7) epan QuatyAvarteblaned n Deore, © '97 NEC Quality Award established 1806 wah Japan Proauctvey Center for Soci Eeonomi Development as sector. 2. CSM Concept 2.1 Significance of CSM 2.2 Scope (A) Scope (2) CSM Cycle 2.3 Goal 2. CSM Concept NEC fosters a corporate culture in which all employees understand customer expectations and think and act with the customer's interest in mind so as to create products and services of value to customers, CS Measurement Continuously strive to assess customer expectations and the activities linked to these expectations. CS Marketing Respond to customer expectations and develop and pro- vide products and services that exceed these expectations. CS Movement Be customer-aware, think and act from the perspective of the customer. Products Services Information Build a system that continuously creates customer value and achieve the No. level of customer satisfaction in the industry. 3. Quality System 3.1 Initiatives 3.2 PDCA Cycle 11) TOM: Tt! Qualiy Management 3. Quality Sytem CSM activity encompasses and relates to several areas, includ- ing Q (Quality), C (Cost), and D (Delivery). Among these, the group of activities whose predominant emphasis is on Q (Qual- ity) is the quality system. ‘These activities strengthen the quality systems in place in each operating group based on TQM“, the IS09000 Series, and the framework of Japan Quality Award, thereby realizing quality that surpasses that of other companies. ‘NEC is committed to implementing improvement activities and raising quality throughout the whole corporation by listening to the ‘wants, needs, and complaints of its customers. Initiatives In the Quality System, the 4 phases P (Planning), D (Doing), C (Checking), and A (Corrective Action) form a cycle that is continu- ously performed to raise quality Leadership P: Quality Plan (Policy) + system C: Evaluation Products, Services {Customer Stistaction ie 3. Quality 3.3 Promotion System To effectively promote quality improvement activities, individual : ‘Quality Management Promotion Divisions under the Corporate staff (1) Organization and Company staff coordinate activities, while the Quality Assur- ance Departments or Reliability and Quality Control Departments are established within the individual Divisions. FTCA) [rowseroreaon eee a) fren (opeaing unt) ——_Cend (Q) Principal Committee To smoothly promote quality improvement activities, NEC estab- Orgeni lished committees by Corporate and Company. Deliberation of policy, confirmation of progress, and dissemination of case studies are imple- mented. Committee (Corporate) 7 4. Quality Assurance 4. Quality Assurance 4.1 Quality Assurance Activity and The NEC Group advocates "holonic” management™ and promotes this concept globally as it continues to establish Research & Devel- {i Global Deployment ‘opment Centers, manufacturing subsidiaries, cooperating service companies, and local offices around the world, ‘NEC retains tight control over the quality of products that flow be- ‘ween NEC and its subsidiaries, cooperating companies, overseas subsidiaries, and parts manufacturers. The NEC Group as a whole makes efforts to assure quality to the customer throughout the total manufacturing process. 4.2 Quality Assurance Organizational Quality assurance requires the participation ofall divisions, and every ee individual, in activities based on our Quality Assurance Organiza~ tional Structure. ‘The NEC Group carties out quality assurance activities based on the system shown in the illustration on the next page. To create products that satisfy customers, not only product but also high reliability, and safety are expected. ‘NEC tries to improve the reliability of products by using quality in- formation from our customers and quality information obtained through our after-sales service activities, while simultaneously striv- ing to assure post-processing of used products by methods such as collection of discarded products, separate disposal of wastes, recy- cling, etc. 1) elon! wanagement"Holnis compres a compound of wo {Greek words holes, meaning “the whole” and on, meaning “nahi” Kinplas te harreiatonandconbinton of rete ‘wo oppostes. The tm halon’ management hats derived ‘tom his concent, means that whe the india or ach even ‘or subsciny,snould dev ts cunbutvess as an ncependent tyra also contre tothe devlopent of he NEC Group busines ina highiyhaorious way. (Tht was rt usd by formar pein, Skit fn uy {802 hen he gave he commemorate speech, NEC Vso for tne 21a Catuy’ en he Sd enlversry of NEC foundston) i 4. Qualy Assurance Quality Assurance System ; ry ee ee ee Poe ca enn a CE ery se rag eg) ee poet NS __< erie cue apo psn reser podal done > | T ~ [Design & design review (Priormance, safely ecoloayote)| ~ a e 1 | > — 7 — — ———

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