The following information is true and accurate at the time of publication.
July 26, 2000
A New Engineering, Manufacturing and Customer Services System for the Broadband Network Era: Establishment of a Final Assembly Platform Company for Japan in April 2001
(Tokyo, Japan)
On April 1 2001, Sony will integrate 13 domestic manufacturing facilities for the final assembly of electronic products into a new Engineering, Manufacturing and Customer Services (EMCS) Platform Company, tentatively named Sony EMCS AV/IT. This is the first step in realizing the EMCS concept that was positioned as an integral feature of the corporate reform process for the broadband network era outlined on March 30, 2000.
The EMCS concept entails a fundamental reform of the existing production system that is differentiated along product categories and Network Company lines, and a move to a strengthened system which meets the needs of a new era where the business environment is rapidly changing.
The new EMCS company will be separated from the direct supervision of the Network Companies and will be responsible for the domestic final assembly of all electronics products. The new company will apply IT to all its processes and will be responsible for the engineering and manufacturing cycle including: mass production design and prototyping, materials procurement, production planning, manufacturing technology and mass production. Inventory control, logistics and customer service functions will also be included with the aim of creating a speedy, flexible and high quality manufacturing system based on direct contact with the customer and the market.
The following benefits will flow from the establishment of the new company:
- The application of IT in enhancing supply chain management and introducing e-procurement will result in more efficient engineering and manufacturing processes, shortening of production lead times and optimizing inventory control.
- The new system will coordinate engineering and manufacturing operations, transcending the limitations of individual manufacturing facilities. The resulting fast and flexible manufacturing activities will mesh with a rapidly changing market environment where product cycles are becoming shorter and shorter.
- Any duplication of manufacturing operations within the Sony group will be eliminated leading to productivity gains and enhanced competitiveness.
- Technology transfers between facilities will be promoted, such as high-density mounting processes, quality control etc. and total group manufacturing technology will be strengthened.
- The customer service system will be strengthened through the expansion of direct contacts with the customer and customer needs will be fed back immediately to production facilities.
In preparation for the start of the new company, Sony will be consolidating and integrating the engineering and manufacturing functions currently deployed among the 13 manufacturing facilities and between Network Companies. At the same time, the redeployment of personnel resources will be reviewed. Through this process, the business management role of the Network Companies will be positioned (including business planning, technology R&D, product planning, basic design etc.) and the demarcation of responsibilities with the new company clearly defined.
Semiconductor and component manufacturing operations as well as overseas manufacturing facilities are distinctive in terms of products, processes and geographical characteristics. Sony will continue to review how they can best be reorganized under the overall EMCS concept.
Outline of New Company (Proposed)
| Name: | Sony EMCS AV/IT (tentative) |
| Establishment Date: | April 1, 2001 |
| Representative: | Fujio Sugano |
| HQ | Shinagawa ku, Tokyo |
| Sales Revenue: | approx. 1.5 trillion yen |
| No. of Employees: | approx. 12,000 |
The following 13 domestic assembly production plants are scheduled for inclusion in the new company:
| Sony Senmaya Corp. | Iwate Prefecture |
| Sony Nakaniida Corp. | Miyagi Prefecture |
| Sony Kitakanto Corp. | Ibaraki Prefecture |
| Sony Bonson Corp. | Saitama Prefecture |
| Sony Kisarazu Corp. | Chiba Prefecture |
| Sony Digital Products Inc. | Nagano Prefecture |
| Sony Broadcast Products Corp. | Shizuoka Prefecture |
| Sony Kohda Corp. | Aichi Prefecture |
| Sony Ichinomiya Corp. | Aichi Prefecture |
| Sony Densi Corp. | Aichi Prefecture |
| Sony Inazawa Corp. | Aichi Prefecture |
| Sony Mizunami Corp. | Gifu Prefecture |
| Sony Minokamo Corp. | Gifu Prefecture |
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