TDK's Future StrategyLinking Strategy to the Front Lines

To ensure the solid execution of our growth strategy leads to improvements in profitability and corporate value, TDK is working to instill that growth strategy on the front lines. The performance management framework we are working to deploy calls for KPIs to be established by individual business division and site, and for an acceleration in the speed of business, which is key to our new business model. The goal of these efforts is to improve profitability Companywide. Investment effectiveness, including assessment of the efficiency of business assets and capital expenditures based on TDK Value Added (TVA, a proprietary index for evaluating performance), will come under even stricter monitoring, which will lead to an improvement in capital efficiency for the Company as a whole.

Build a framework by which front line policies lead to improvements in capital efficiency

Accelerating the Speed of Business by Reducing Non-Value-Added Time

At TDK, we are working to reduce lead times based on three strategies: (1) getting an early start; (2) reducing non-value-added time (on the front lines of manufacturing, equivalent to time not spent in production); and (3) shortening of work cycles. A variety of projects are underway, led by the front lines, with one factory working to reduce lead times by half from the planning and coordination stage through material procurement and manufacturing. By sharing success stories, we are working to accelerate the speed of business with the participation of all our employees.

Accelerating the Speed of Business by Reducing Non-Value-Added Time

At TDK, we are working to reduce lead times based on three strategies: (1) getting an early start; (2) reducing non-value-added time (on the front lines of manufacturing, equivalent to time not spent in production); and (3) shortening of work cycles. A variety of projects are underway, led by the front lines, with one factory working to reduce lead times by half from the planning and coordination stage through material procurement and manufacturing. By sharing success stories, we are working to accelerate the speed of business with the participation of all our employees.