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CSR Initiatives

Implementing CSR in the Value Chain

Working with Mazda's Suppliers

Based on its basic purchasing policy, Mazda does everything it can to build open business relationships and ensure fair and even-handed dealings with its suppliers around the world.


Mazda set the following basic purchasing policy

Mazda will, in the fullest sense of coexistence and mutual prosperity, engage in research and production for improved competitiveness. The Company will build open and fair business relationships to ensure sustainable growth and raise its level of contributions for social and economic development. (1994)

In addition, Mazda is committed to promoting CSR activities aimed at building a sustainable society in full partnership with its suppliers. The Company bases its assessments of business dealings with its suppliers on a comprehensive evaluation that covers not only quality, technical strengths, pricing, delivery time and management approach, but also corporate compliance structure and initiatives to protect the environment.

Measures Based on Basic Purchasing Policy

  • Mazda extends opportunities to businesses throughout the world, regardless of nationality, scale or history of transactions with the Company.
  • Upon receiving a request to start business with Mazda, Mazda assesses the company in question in a fair and even-handed manner according to its in-house criteria for evaluation of suppliers, and determines the feasibility of a business partnership.
  • Mazda requests that suppliers comply with Mazda Supplier CSR Guidelines and Mazda Green Purchasing Guidelines.

Mazda Supplier CSR Guideline

To promote CSR activities among Mazda suppliers, in July 2010 Mazda created the Mazda Supplier CSR Guidelines with reference to the CSR Guidelines of the Japan Automobile Manufacturers Association. At the same time, the Company revised the Mazda Green Purchasing Guidelines, aiming to promote CSR-oriented activities throughout the entire supply chain.

In addition to requesting total compliance with the laws and regulations of all countries and regions, these guidelines outline areas such as prohibition of child labor and forced labor, compliance, and emphasis on corporate ethics, and ask that all Mazda suppliers comply with the guidelines in these areas.


Communicating with Suppliers

To enable coexistence, mutual growth and prosperity for all parties, along with the overarching goal of building high-quality vehicles, Mazda takes steps to promptly brief suppliers on medium- to long-term business strategies and on matters related to sales and production, and arranges opportunities for the exchange of information on a regular basis. The Company also maintains close liaison with supplier-managed purchasing cooperative organizations.*1 For example, staff from member companies visit each others'offices in order to exchange examples of successful approaches and practices through subcommittee activities.

  • *1An autonomous management organization, comprising suppliers that have a certain degree of transaction with Mazda, with the purpose of strengthening relationships between Mazda and its suppliers as well as promoting mutual growth and prosperity.
Major Channels of Communication with Suppliers
Target participants Frequency Aims/content
Roundtable conference with supplier management Executive-level management at major suppliers Once a year
  • Mazda's president and CEO explains Mazda's current status, the problems the Company faces and its policies, after which the general manager of the Purchasing Division explains Mazda's purchasing policies in order to heighten participants' understanding of Mazda and gain their cooperation.

  • This conference also deepens friendly ties between Mazda and its suppliers.
Supplier meeting Representatives of front line business divisions and departments at major suppliers Once a year
  • Mazda's specific purchasing policies are explained to representatives of front line business divisions at suppliers, based on the explanation given at the manager of the Purchasing Division at the roundtable conference by the general manager of the Purchasing Division. This helps to promote a better understanding of Mazda and provides useful input for the work that suppliers do.
Supplier communication meeting Representatives of front line business divisions and departments  at major suppliers Once a month
  • To facilitate smoother collaboration with its suppliers, Mazda provides them with information such as topics concerning daily operations between Mazda and its suppliers, production/sales status, quality status of purchased materials, pilot construction schedules for newly developed models, and mass-production implementation schedules for new models.
  • Mazda explains its priority measures, environmental protection approach and compliance initiatives, and asks its suppliers to comply with these initiatives.
Others - As needed
  • Mazda also employs a range of other communication channels, such as publishing the in-house "Mazda Technical Review" on its website, highlighting new technologies and research.
Number of Suppliers (As of March 31, 2011)
Automotive parts
455
Materials, etc.
155
Equipment and tools
420
Total
1,030
Purchasing Cooperative Organizations (As of March 31, 2011)
Parts suppliers Kanto Yokokai (Kanto region)
65
Kansai Yokokai (Kansai and Tokai regions)
47
Nishi Nihon Yokokai (Chugoku, Shikoku and Kyushu regions)
61
Materials suppliers(Raw materials, equipment, molds, etc.) Yoshinkai
78

Evaluating and Recognizing Suppliers

Every year, Mazda evaluates its suppliers in order to build more positive business relationships, and passes the results of these evaluations back to the suppliers. Suppliers with excellent overall evaluations, and suppliers offering outstanding quality, are recognized with awards.

FY2010 Results

  • Main areas evaluated : Overall assessment of quality, cost, delivery time, etc.
  • Suppliers receiving awards : 90 parts suppliers and 12 materials suppliers

Practical Course on Routine Quality Management for Local Suppliers

Mazda shares its insights with local suppliers in and near Hiroshima Prefecture on what it views as the ideal form of routine quality management. In FY2010, Mazda held a course to deepen understanding of the significance and necessity of routine quality management, as well as to teach participants how to practically apply quality management methods and tools to their activities.

Activities

By deepening understanding of the necessity of change-point management and process assurance evaluation among quality and production control managers at suppliers, and by encouraging practical application to their in-house operations, Mazda is promoting routine quality improvement activities among suppliers.

Results for FY 2010

Themes

  • Lecture: "How routine management ought to be implemented"
  • Creating reports on execution of routine quality management
  • Implementation of process assurance evaluation
  • Providing workshops based on case studies of improvements made by other companies

Deployment process : Implementation in each department and throughout the company via quality and production control managers

Program period : July 2010 to March 2011 (107 sessions in total)

Number of participating companies : 13 local suppliers in and near Hiroshima Prefecture who are aiming for future quality improvements


J-ABC Program to Promote Manufacturing Skill by Local Suppliers

Mazda is rolling out its J-ABC program (Jiba ["Local"] Achieve Best Cost program) for local suppliers in and around Hiroshima Prefecture. Under this program, Mazda staff visit suppliers'plants and use the approach employed in Mazda production systems as the basis for pinpointing wasteful or problematic manufacturing processes. Mazda then works cooperatively with the suppliers to formulate and implement countermeasures. This program is also expected to enhance potential for improvement at manufacturing sites in connection with Mazda's Monotsukuri Innovation activities.*2

VOICE

Receipt of the Effort Award at the Karakuri Kaizen Mechanism Exhibition 2010

photo : Hideyuki Nagase
Hideyuki NagaseManufacturing Department
Production Division
Hirotani Co., Ltd.

I found it tremendously interesting to learn about different device mechanisms at the J-ABC Karakuri Kaizen Dojo. Having seen a coworker lift heavy — 30 kg (approx. 66 lb.) — materials by himself every day, I felt the urge to do something to help. I designed a mechanism that uses the principle of leverage to enable easy lifting of heavy items, and received the Effort Award for my idea.

I will continue participating in the Karakuri Kaizen Dojo in the future, and I want to encourage others to follow suit.

Results for FY2010

Case Example 1: Cooperative Improvement Efforts

Operating under themes such as "outstanding productivity" and "shortened lead times," Mazda achieved major results in terms of improved operation rates, shorter production cycle times, improved logistical operations, etc.

  • A total of approximately 1,530 visits to 38 plants at 24 companies were carried out to implement cooperative improvement programs. As a result, 55 improved model lines were completed at 38 plants.

Case Example 2: J-ABC Karakuri Kaizen Dojo

Mazda launched these workshops with the aim of fostering high levels of creativity and making work more fun without incurring additional costs.

  • The ability to devise mechanisms for increased productivity was improved through practical programs such as lectures and on-site guidance meetings.
  • Held twice a year in the Hiroshima and Hofu districts, with a total of 27 participants from 26 companies successfully completing the program.
  • Excellent creations were entered into a national competition and received special awards.

Case Example 3: J-ABC Maintenance Workshop

With the goal of preventing facility stoppages and drops in production capability, Mazda held these workshops for the first time in 2010.

  • The ability to both detect and properly respond to irregularities was improved through practical programs such as lectures and on-site guidance meetings.
  • Held twice a year in the Hiroshima and Hofu districts, with a total of 10 members from 9 companies successfully completing the program.

Efforts to Eliminate Inefficiencies in the Supply Chain

Mazda takes measures to reveal production inefficiencies and loss throughout the supply chain, ranging from manufacturing of single parts to completed automobiles, and works in close cooperation with suppliers in order to prepare and implement improvement measures.

Results in FY2010

In cooperation with 40 companies, Mazda achieved CO2 emission reductions through logistical improvements, reduced inventory levels of items at suppliers before being delivered to Mazda, eliminated unnecessary tasks and procedures, and achieved overall improvements in efficiency.


Other Measures for Supplier Support

  1. Change to the "milk-run" system: We have shifted from the conventional system, with delivery of parts by each supplier, to the "milk-run" system (MRS), in which Mazda trucks stop at multiple suppliers to collect parts. This system reduces workload in logistical operations and contributes to reduced environmental impact.
  2. Mazda provides advice on joint subscription systems for product liability insurance, which reduces manufacturers' liability risks for parts.
  3. Mazda provides information on third-party exhibitions and conventions to showcase the latest technologies and manufacturing methods.
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