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PRESS RELEASE: No.14
January 9, 2007

Sumitomo Wiring Systems, Ltd.
Summary of New Year speech of 2007 (for employees)

Tadashi Shimokawa, President
In order for Sumitomo Group to win a place in the ever-competitive global market, we started the QCD No. 1 Activity in 2005 as a three-year activity plan under the slogan of "Let's become the world's top manufacturer in Quality, Cost, and Delivery". The final year of this activity will start this April. I would like each and every one of the Sumitomo group's employees to concentrate fully on this activity to produce results and accomplish the expected purpose.

To achieve this, I would like to strongly encourage you to implement the following:
I. Visualize problems and progress
If a problem is well represented visually, people generally take action to solve it. Visualization is a technique for appealing to human instinct, meaning that people will voluntarily take the necessary problem-solving actions as long as the facts or problems are easily seen. It is not an exaggeration to say that whether visualization is implemented can determine the achievements of each division and the results of the QCD No. 1 Activity. Clarify the problems with respect to each division, department, section, plant, and individual, fully increase awareness of the problems to the level of each individual, and devise a means of clearly displaying the progress of everyone's efforts.


II. Return to basics
Most causes of operational problems, including safety and quality problems, can be attributed to the fact that basic rules were not observed. Be sure to bear in mind the Make/Obey/Improve/Obey the rules concept, and simply return to the basics. For example, review all works from the following viewpoints: Were the basic rules observed? Did the procedure follow the basic rules?


III. Fulfill the purpose of activities, instead of simply making them appear to be fulfilled
Various activities generally have an important initial purpose, such as improvement. As time passes, however, the true purpose of these activities is forgotten and they become mere facades without us being aware of it. We then begin to assume that we have completed the work simply by making it appear to be so. Leaving such situations as they are will lead to the collapse of the company. It is extremely important to notice these as early as possible and take adequate measures. For example, devise ways of preventing activities from becoming mere facades if they need to be continued; stop activities if they are no longer necessary. Review conventional activities and take specific action.


$B-8(B. Conduct thorough benchmarking
To improve your company, division, and yourself in all aspects, including products, plant management, operation methods, and scheme of organization, it is extremely effective to compare your company, division and yourself with other companies, divisions, and people. You can assess your current position by simply making comparisons with others and, thus understand your superior or inferior points. I ask each division to conduct thorough benchmarking on important indices this year in order to attain the results of the QCD No. 1 Activity.


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