In anticipation of the long-term market environment, and with the aim of aggressively expanding the portfolio of strategic growth products for the IoT market and achieving Monozukuri reform, TDK is making concerted efforts to speed up development and operations in many areas, including development work to be carried out in close proximity to the customer. We are also aiming for optimization on a global basis by establishing specific KPIs for all processes including sales, manufacturing, and development to enable effective target management. The question of how to turn technological superiority into revenue used to be a challenge for TDK. We are currently building an optimized framework designed for higher profitability to enhance our competitive edge in the electronic components sector worldwide.
TDK, while pursuing value for its customers, is of course a business operation. Being able to provide customers with a stable supply of high-quality products is important, but having to keep a large inventory is not a desirable situation. In order to increase the speed of inventory turnover, it is essential to create a framework for getting manufactured products to the customer without delay.
“TDK Industry 4.5” is a revolutionary concept intended to solve such issues. Reducing the lead time of products is a key factor for increasing productivity. With the Monozukuri approach, an optimized inventory makes it possible to build a highly effective framework that keeps manufacturing processes as short as possible. This will speed up the overall business cycle and determine how quickly we are able to supply the customer with products. Establishing such a framework is a major step toward the intended increase in profitability.
At two new factories in Akita Prefecture, production lines with extremely short lead times are being introduced which will transform the Monozukuri process. In order to be successful, many modifications and improvements must come together. TDK intends to turn “TDK Industry 4.5” into a tangible reality without delay to gain the trust of customers.
We believe that a sense of speed is important in developing products and bringing them to the market-ready stage. In November 2014, the Technology HQ opened the ICT Devices Development Center tasked with developing high-frequency components and similar products for smartphones, and the Energy Devices Development Center for power-related products intended for automobiles, industrial equipment, and the like.
The new facilities are contributing to increased development speed in their respective areas. Furthermore, the newly established Materials Development Center is conducting long-term intensive research aimed at the development of new materials and bringing out the properties of materials.
The requirements of customers for electronic components differ greatly depending on the location. In some areas, the pursuit of cutting-edge technology is a top priority, while customers in other areas are more interested in stable supply and available quantities. TDK has established R&D bases in various parts of the globe and is carrying out R&D activities that are matched to local conditions. We rapidly develop new technologies where customers need them, thereby shortening the time until delivery. At the same time, our sales staff is also in close contact with customers, working together with the R&D side to identify emerging needs as early as possible and provide input and feedback. In Japan, research with a medium- and long-term perspective is being carried out, aimed at new structures and new processes that will benefit the entire TDK Group.
View the full text of “TDK's Future Strategy” on the PDF version.TDK's Future Strategy