"Mazda's CSR and Environmental Initiatives" (September 2011)
In line with its basic purchasing policy, Mazda is taking its efforts to build open business relationships and ensure fair and even-handed dealings with its suppliers both in Japan and overseas.
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 for environmental protection.
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)
- 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.
<Examples of Specific Measures>
- Publishing of the "Request for Thorough Compliance with Labor Related Laws" for all suppliers (January 2005)
- Briefing sessions for employees and suppliers based on the "Guidelines for Appropriate Transactions in the Automobile Industry" formulated by the Ministry of Economy, Trade and Industry (2008)
- Clarification of the behavioral guidelines for appropriate transactions by formulating the "Promotion Manual for Appropriate Purchasing" (2008)
- Related materials made available on the exclusive access site to give information to newly contracted suppliers and for the existent suppliers as part of the continuous educational efforts (August 2011)
Example materials:
"Behavioral Guidelines on Appropriate Purchasing," "Causes of and Countermeasures against Problematic Transactions," "Specific Handling Policies by Each Category of Disputable Transactions," etc.
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, the Mazda Supplier CSR Guidelines outline areas such as prohibition of child labor and forced labor, compliance, and emphasis on corporate ethics, and request that all Mazda suppliers comply with the guidelines in these areas.
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 liaisons 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. For FY March 2012, 129 companies conducted a total of 59 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.
| Target participants | Frequency | Aims / content | |
|---|---|---|---|
| Roundtable conference with supplier management | Executive-level management at major suppliers | Once a year |
|
| Supplier meeting | Representatives of frontline business divisions and departments at major suppliers | Once a year |
|
| Supplier communication meeting | Representatives of frontline business divisions and departments at major suppliers | Once a month |
|
| Other | – | As needed |
|
| Automotive parts | 455 |
|---|---|
| Materials, etc. | 155 |
| Equipment and tools | 417 |
| Total | 1,027 |
| Parts suppliers | Kanto Yokokai (Kanto region) | 64 |
|---|---|---|
| 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 |
Mazda has in place a communication structure using the Mazda Global Hotline so that corrective measures can be taken promptly in the unlikely event that a Mazda Group member or affiliate violates or is suspected of violating laws, agreements, etc., relating to procurement and other transactions.
Every year, Mazda evaluates its suppliers from the perspectives of quality, cost, deadline accuracy, etc., in order to build more positive business relationships, and passes the results of these evaluations back to the suppliers. Outstanding suppliers are recognized with awards.
Mazda also gives special awards to suppliers that have made outstanding proposals on weight trimming, which greatly affects environmental performance such as fuel efficiency, in order to promote weight reduction.
88 parts suppliers, 9 materials 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.
Delta Kogyo Co., Ltd
I like making products, and have been inventing
my own karakuri . I participated in the FY March 2012 J-ABC Karakuri Kaizen Dojo hosted by Mazda in order to learn the basics of karakuri. Once, I saw an employee working at a machine that shaped wires and dumped them haphazardly into a box, without alignment or order; he was bending over the box, making bunches of 50 wires and packing them. I wanted to do something to help him. Using what I learned at the Dojo, I carefully observed the shape and form of the wires as well as how they fell into the box, and designed a platform that used the free-falling energy of the wires to align them. As a result, no human work is needed in the process.
When I presented this system at a presentation meeting at Mazda, I heard surprised and encouraging cheers from the audience. Now, I find great joy in contributing to my workplace through improvement activities using karakuri, under our slogan "manufacturing without additional costs." I also pass on my basic karakuri knowledge to junior staff through maintenance and improvement activities.
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 1,430 visits to 41 plants at 24 companies were carried out to implement cooperative improvement programs. As a result, 48 improved model lines were completed at 19 plants. In addition, more than 50 lines in 25 plants began voluntary improvement activities.
Case Example 2: J-ABC Karakuri Kaizen Dojo
Mazda launched these workshops in 2006 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 onsite guidance meetings.
- Held twice a year in the Hiroshima and Hofu districts, with a total of 19 participants from 19 companies successfully completing the program in FY March 2012.
- Excellent creations were entered into a national competition and received the "Idea Award."
Case Example 3: J-ABC Maintenance Workshop
With the goal of preventing facility stoppages and drops in production capability, Mazda has held these workshops since 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 14 members from 14 companies successfully completing the program in FY March 2012.
Case Example 4: J-ABC Conference
Mazda has held this conference every year since 2005 for all participating companies, providing a venue for case presentations, awards, and other events.
- The 2011 conference was attended by a total of 430 participants, with 350 participants from 41 local suppliers and 80 from Mazda.
- Also used as a brainstorming opportunity where J-ABC activity policy and outstanding case examples are shared.
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.
- Efforts to improve transport efficiency: commenced efforts to reduce environmental burdens through improved transport efficiency by bringing together our suppliers, logistics companies, and Mazda in conducting an overall review of the logistics method.
- Development with consideration to transport efficiency: in some domains, commenced operation of a new parts development process that takes into consideration transport efficiency in order to reduce losses in the entire supply chain.
- Change to the "milk-run" system: Mazda has 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.
- Mazda provides advice on joint subscription systems for product liability insurance, which reduces manufacturers' liability risks for parts.
- Mazda provides information on third-party exhibitions and conventions to showcase the latest technologies and manufacturing methods.
The following educational initiatives are conducted for those engaging in procurement operations in order to realize fair and equal transactions.
- Attendance at the Seminar for the Promotion of Fair Subcontracting Transactions held by the Japan Fair Trade Commission
- Administering comprehension tests on the Subcontractors Act
- Education on financial control
- Posting of guides and process rules regarding appropriate transactions on the Purchasing Division website on the Intranet
- Sharing of training/seminar content relating to consideration for human rights within the supply chain
