TDK's Future StrategyNext-Generation Monozukuri

New Akita factories to dramatically change the concept of Monozukuri

Strengthening of Monozukuri was a major topic for TDK. The concept for the new Akita factories has its roots in the structural reform period that began in fiscal 2012. At the time, the competitiveness of our multilayer ceramic capacitors, which were one of our major products, decreased and the business became unprofitable. This was due to the fact that we were trailing competitors in terms of quality, lead time, and production costs, among other factors. Our factories in the Akita area were aging, and the need to move products between factories at scattered locations was hurting efficiency.

There was discussion whether production should be moved overseas, where costs were more competitive. One possibility would have been to avoid China with its rising labor costs and go to Southeast Asia or a similar location, but we realized that this would eventually lead to a dead end. Furthermore, developments such as the increasing use of electronics in automobiles and the onset of the IoT society are creating a world where electronic components are ever more intricately linked with daily life, and their quality therefore is an increasingly important factor. With the intent to create a vibrant place where the latest techniques could flourish and where products that are competitive in many aspects could be manufactured, construction of two new factories was completed in October 2016.

Giving shape to the “TDK Industry 4.5” concept to realize zero defect quality

The essential ideas behind the “Industry 4.0” concept promoted by the German government in cooperation with industry and academia are the reduction of personnel requirements and lower costs. Making efforts to keep investments of people and capital as low as possible while increasing production efficiency is an approach that does not differ significantly from the direction in which we are headed. But our new plants are adding “0.5” to the equation by aiming to ensure that no defective product is shipped to the customer, thereby providing added value and resulting in “TDK Industry 4.5.”

The keywords for creating a framework that does not produce defective goods are “Materials” × “Processes” × “Optimization.” In concrete terms, this means that the design already reflects the way the customer's end product will be used, and the material is developed to elevate the quality of the finished product to the ultimate level. Within each process, the conditions for creating a conforming product are clarified and thorough process step design reflecting the methods and intended outcome is harnessed for strengthened quality management. This will enable the realization of zero defect quality.

“Location free” approach to producing the same quality anywhere in the world

Reduction of lead time is also a major factor in creating value for customers. To name one example, the Direct Sintering System (DSS) used in our ferrite production lines results in shorter pressing and firing processes. Stated in simple terms, the ideal is to “insert powder and get a finished coil.” We are also increasingly using robots, and we are not limiting ourselves to single-purpose types. Rather, we aim to utilize versatile robots that can perform multiple functions. Combining these efficiently with human labor is the key for increased productivity. By configuring integrated material + product lines, we will be creating a Monozukuri paradigm that results in consistent product output that is completely independent of the production location.