Summary of New Year speech of 2018 (for employees)

January 8, 2018 Sumitomo Wiring Systems, Ltd.

We celebrated our 100th anniversary, and this year marks the first step toward the next 100 years. I am determined to work with you to make 2018 another year of success for Sumitomo Wiring Systems, Ltd., and its Group companies and ask for your continued cooperation.
Our company is now at the vortex of a sweeping, 100-year trend involving the automobile industry. The "four angry waves" of electric vehicles (EV), self-driving cars, sharing, and connected urge us to make unprecedented changes.
In order to achieve sustainable growth of the wiring harness business in this severe and difficult environment, we need to further promote the development of competitive plants and fields, the development of unrivaled technology, and a prompt response to globalization toward a company with a solid manufacturing foundation. I ask you, therefore, to address the following three issues with an acute sense of crisis.

The first is to further strengthen SE-QCDD that places the highest priority on safety. The safety (S), the environment (E), and quality (Q). However, Genchi Genbutsu (go and see) and Genri Gensoku (rules and principles) are what underlie safety, the environment, and quality. In order to solve problems, it is essential for us to go to the manufacturing site, ponder the causes while examining actual goods, and determine the root causes of injuries, accidents, defective goods, and errors. I ask you to reinforce the capabilities of shop-floor workers by visualizing problems at the shop floor, enhancing individual employees' awareness of issues, and establishing a culture and climate where each worker makes efforts toward betterment.
For costs (C), it is indispensable to promote cost reductions not only in the manufacturing settings, but also in back-office functions. I ask you, therefore, to promote cost reductions in back-office operations, such as the development of easy-to-build designs, easy-to-use facilities, and rational production plans and the promotion of inventory reductions.
For delivery time (D), I ask you to develop competitive factories and manufacturing sites, which are capable of shortening the lead time without increasing inventory by obtaining accurate information quickly and developing production plans that take the load of facilities and workers into consideration.
For research and development (D), it is important for us to differentiate our products from others via unique, unrivaled features while leveraging our strengths.
I ask you to enhance your ability to collect and analyze information and address the enhancement of development and proposal-making capabilities and the acceleration of commercialization and the reinforcement of global marketing capabilities.

The second is to start the D&I (diversity and inclusion) activity and the development of human resources with a focus on five "-tions" in full swing.
Toward the realization of D&I, I ask each worksite to give chances to employees who demonstrate flexible thinking free from stereotypical views and who embrace the spirit of challenge, to further promote the development of human resources that can play a leading role on the global stage, and to enhance organizational strength.
For the development of human resources, the "five-shons"—passion (passion and enthusiasm), mission (a sense of mission), action (ability to take action), hakushon (abnormality/crisis perceiving ability), and communication— I ask you to focus on the development of the ability to perceive abnormalities and crises (hakution).

he third is to raise employees' awareness of compliance.
Corporate scandals could lead to a situation that affects a company's business continuity, such as a drop in performance, transaction cancellations, and deferment of loans by banks. I ask each and every one of you to raise your awareness of compliance.

Public Relations Section, General Affairs Department

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