Asahi Glass | Quality and Customer Satisfaction (CS)

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Quality and Customer Satisfaction (CS)

Concept:

The AGC Group is committed to improving quality in every aspect of its business operations by implementing process reform to improve the quality of its products and services in order to increase customer satisfaction and by changing employee's ways of thinking based on the idea of incorporating the concept of CS into each employee's daily work processes.

CS Guideline for AGC Group

In order to materialize the management policy “JIKKO”-Execution for Excellence- Achieve and win to be a global excellent company;

We will provide products and services that conform to the requirements of laws, regulations, and customers.
We will ensure and improve the quality of our products and services including their safety.
We will incorporate the concept of CS into each employee's daily work processes and pursue “Look Beyond” - innovation and operational excellence. We will be thoroughly watchful an attentive in winning the absolute trust of our stakeholders in order to establish AGC to be “far and beyond” as the top brand.
We all will participate in the continual improvement of effectiveness and efficiency of our quality management, and each of us will individually strive to increase the value of our work.
In order to ensure that the above points are materialized, we will do our utmost to enhance customer satisfaction by establishing and deploying a policy in accordance with this Guideline, setting in consistence with the policy realistic targets of which the achievement level is measurable, and cooperating with our business partners.

Targets for fiscal 2008

To build a management system to ensure product safety
To continuously improve and clarify the CS-focused activities
To expand the CS-focused activities on a global scale

Results in fiscal 2008

		Self-evaluation
1.	A Product Quality Group was established within the CSR Office to reduce product quality-related risks.	A
2.	The CS-focused activities were clarified by describing what the In-House Companies and SBUs should do to “incorporate the concept of CS into each employee's daily work processes” in the medium-term plan.	A
3.	(1) The CS Seminar and CS Dialogue were held in Asia 11 times and four times, respectively. (2) The handbook on the concept of “incorporating the concept of CS into each employee's daily work processes” was published in five Asian languages.	A

Criteria for self-evaluation
A:Satisfactory level, in which the intended target has been achieved
B:Almost satisfactory level, in which a part of the intended target has not yet been achieved
C:Unsatisfactory level, in which the intended target has not been achieved

Targets for fiscal 2009

To conduct product quality audits across the Group
To educate, enlighten, and raise the awareness of employees on product quality
To improve CS activities on a continual basis by improving the CS activity support process
To foster CS activities on a global scale in consideration of local cultures, customs, etc.

Quality Management System

The AGC Group is promoting the acquisition of ISO 9001 and ISO/TS 16949 certifications for its quality management systems so that it can continue to provide customers with high-quality products and services.
As of December 2008, we have acquired the following certifications. We will continue to make effective use of the certified management systems to ensure strict quality management.

Acquisition of ISO 9001 and ISO/TS 16949 certification

Location	Number of certified organizations
Japan	34
Asia	23
Europe	55
North America	14
Total	126

*Percentage of AGC Group employees at the certified organizations: 83% (as of December 2008)

Measures to Improve Product and Service Quality

Surveys on compliance with product-related laws and regulations

In fiscal 2007, the AGC Group conducted interview surveys on Asahi Glass and three other major domestic Group companies to reexamine their compliance with product-related laws and regulations. In fiscal 2008, we clarified the legal and regulatory requirements to be met by our products by creating a list of these requirements, thereby ensuring strict compliance with the related laws and regulations.

Compliance with the Consumer Product Safety Act

Following the revision of the Consumer Product Safety Act in December 2006, manufacturers who have become aware of a serious product-related accident must notify the Minister of Economy, Trade and Industry of the fact within 10 days.
Asahi Glass established its rules for compliance with the Act in January 2008, which stipulates the measures to be taken by the relevant departments in the event of a serious productrelated accident. In March 2008, a Product Quality Group was established within the CSR Office to reduce product qualityrelated risks, implement preventive measures, and prepare for prompt responses to such accidents.
In fiscal 2008, we notified the Ministry of three serious productrelated accidents, including those that might not have been caused by our products, and are undertaking appropriate responses.

Encouraging employees to acquire the quality control (QC) certificate

The AGC Group is encouraging employees in Japan to acquire a certificate on quality control (QC) issued by the Japanese Society for Quality Control. This organization issues certificates on knowledge of quality control in four levels. In fiscal 2008, a total of 174 Group employees passed the certification examination.
The AGC Group makes use of this certification system in order to objectively evaluate the level of quality control enforced by employees in charge of quality control and to raise quality control awareness across the Group for further improvement of its product quality.

Number of employees who passed the QC certification examination

Measures to Increase Customer Satisfaction (CS)

The AGC Group is encouraging all employees to give satisfaction to customers in their daily business operations, based on the slogan of “incorporating the concept of CS into each employee's daily work processes.”
CS is an abbreviation for customer satisfaction, but we do not limit “customers” to our customers in the market. We include “people and organizations who receive work-in-process within the Group” in our definition of customers. In our CS activities, employees identify the problems to be solved from the viewpoints of their customers, with the ultimate aim of providing higher value to our customers in the market. The achievement of this goal will in turn provide the AGC Group with a strong foundation for further growth.
In fiscal 2008, each of our In-House Companies and SBUs selfevaluated their business, taking approaches such as focusing on management quality, with the aim of providing their customers with higher value. The results were incorporated into our mediumterm plan as improvement measures. At present, we are in the process of actually implementing these measures.

Eight steps for incorporating the concept of CS into each employee's daily work processes

Learn about your customers.
Clarify the value that you believe you are providing to your customers.
Take the viewpoint of your customers, and consider the value that they require. It is important to also directly ask your customers.
Based on 2 and 3, in a candid manner, ascertain the areas in which the value that you provide differs from the value sought by your customers.
Based on 4, offer your customers the best value that you think you can provide.
Ask your customers to evaluate the results.
Based on that evaluation (the concept of CS), change your daily work.
Develop these into policies and targets. It is important that you change your daily work on an ongoing basis and with everyone's participation.

*Handbook on the idea of “incorporating the concept of CS into each employee's daily work processes” published in seven languages (Japanese, English, simplified Chinese, traditional Chinese, Korean, Thai, and Indonesian).

Support Process for “Incorporating the Concept of CS into Each Employee's Daily Work Processes”

CS Education

Presentation by participants

The AGC Group provides employees with CS education to encourage them to incorporate the concept of CS into their daily work processes and offer more value to their customers. This education is given in consideration of the features of each organization and department of the Group.
Specifically, we change the details and duration of our CS Seminar depending on who will attend it. For example, we held a seminar on communication and the CS viewpoint for employees of the In-House Companies and SBUs, and a seminar on the quality management systems and the CS viewpoint for mid-level managers of our affiliates. Over the period from the launch of the CS Seminar in 2005 to the end of fiscal 2008, a total of 167 seminars were held, in which a total of 3,608 employees participated.

CS education and training given in fiscal 2008

Name	Target	Theme	Number of participants
CS Dialogue	Mainly managers	Business administration incorporating the concept of CS	212 participants in 25 meetings (90 participants in four meetings overseas)
CS Seminar	Managers and general employees	Basics and tips for CS	1,491 participants in 68 seminars (240 participants in 11 meetings overseas)

CS Commendation

The AGC Group awards “CS commendation” under its commendation system . CS commendation is awarded to individuals and organizations that have achieved great results by incorporating the concept of CS into their daily work processes and changing their traditional ways of operation. Their excellent activities are introduced across the Group to encourage the entire Group to make concerted efforts for CS.
In fiscal 2008, 24 individuals and teams and nine organizations were awarded CS commendation.

Presentation of commended cases held concurrently with the commendation ceremony

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