Three-year initiative toward realization
To make these social contributions a reality, we have developed Mid-term Direction 2021. The three main pillars of this initiative are i) harmony among people, organization and society, ii) establishment of advanced supply system & exponential productivity enhancement, and iii) implementation of portfolio management. By implementing these measures one by one, we will make steady progress toward realization.
Among these three pillars, we must focus our efforts on “harmony among people, organization and society” in particular. This is the foundation for our efforts to solve social issues and achieve sustainable growth. In the current fiscal year, we have identified key issues (material issues) for Murata to address over the medium to long term originating from social issues. In identifying material issues, all executives gathered together to participate in a training camp and thoroughly
discuss the relationship between business and the environment as well as Murata’s commitment to society. Through these discussions, we came to the realization that “sustainable monozukuri (manufacturing) is what brings sustainable growth to Murata.”
First, from the perspective of the “environment,” we must consider the impact of our business processes as we seek for opportunities for business expansion. As long as a company operates business as a member of society, lack of consideration for this point will not only make a negative impact directly on the environment and affect the surrounding area, but it will also destroy the trust that we have cultivated and threaten the foundations on which we operate. Murata has been conserving energy, reducing greenhouse gases, reducing waste, and recycling resources mainly at each of our factories. By further strengthening and integrating these activities throughout the Company as a whole, we will implement strategic initiatives that are integrated into our businesses and build a foundation for sustainable growth together with society.
From the perspective of “society,” we will promote initiatives centered around the key concept of creating a safe and secure workplace through respect for human rights and diversity. Diversity in Murata’s human resources and organizational structure has been increasing as a result of recent business expansion and M&As. The ideal workplace we are aiming for is an environment where we can raise our value as a team backed by the leeway to express our own personal opinions and respect for each other’s views while exchanging ideas, even among a diverse selection of members. Diversity and inclusion are indispensable values in promoting this initiative. For this reason, we will develop programs that promote communication within and between organizations, as well as enhance career paths that enable diverse contributions that leverage expertise. By integrating these new initiatives and our continuous efforts to build a safe and secure working environment, we will realize the creation of an ideal workplace.
In the second pillar, “establishment of advanced supply system & exponential productivity enhancement,” which serves as the driving force behind building the foundation we are aiming for in the first pillar, we aim to evolve and improve the efficiency of work structures. One of the reasons for tackling this issue is a decrease in the working age population. In Japan, it is said that the increase in the number of employed workers will reach a plateau in the first half of the 2020s, and the problem of securing human resources may present a bottleneck for future business operations. As such, we must drastically improve productivity by changing work structures. Another reason is to incorporate state-of-the-art technologies in the realization of “next-generation monozukuri (manufacturing)” and further refine one of Murata’s definitive strengths, “monozukuri(manufacturing) capabilities.”
The construction of smart factories is essential for the realization of productivity improvements that are not just extensions of previous concepts. We will focus on introducing next generation facilities, manufacturing methods, and management techniques based on stateof- the-art IT technologies primarily in domains where productivity is expected to be improved to a great extent, whereby realizing higher level of work quality by utilizing relevant data in each process, enhancement of facility productivity, visualization of issues faced by facilities, and operational automation with robots and AGVs.
Murata is also focused on enhancing direct/indirect labor efficiency, utilizing all appropriate methods, including AI and RPA. Starting with considerations for the introduction of AI and RPA, we have been taking an inventory of operations, asking ourselves whether these operations are a source of Murata’s competitive advantage. After selecting certain operations to focus on, we will proceed with the standardization and automation of work processes that employ IT.
The last of the three pillars is “implementation of portfolio management.” This is an initiative to optimally allocate management resources for expanding business opportunities. From the perspective of the markets in particular, we want to contribute to the creation of more prosperous and more convenient future by investing our main management resources in the two markets of communications and automotive, capturing new opportunities and contributing to the further development of these markets.
In the automotive market, there is a high level of demand from customers for QCD and we will be required to provide long-term and stable supply. Accordingly, we must make efforts to focus our expertise more strategically. In addition, we are attempting to capture the market not only through automobiles themselves (In-Car) but also in areas that provide coordination with other automobiles and transportation infrastructure through communication technologies (Out-Car), whereby broadening our perspective on discovering new areas where Murata’s strengths can be leveraged.
Acquiring and strengthening core competencies is also important. Without business operations that leverage core competencies that are inimitable for competitors, it will be difficult to achieve sustainable growth and there will be less necessity for Murata to take on that business within the market. We must also push forward the optimal allocation of management resources in carrying out this effort.