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Customer Relationships (Quality and Product Safety)

Approach

As stated in the IHI Group Basic Code of Conduct, the IHI Group pays full attention to the safety of the products and services it develops and provides and constantly strives to raise quality level of its products and services by confirming whether they satisfy customers and users. The quality of the products and services is the bond of trust that connects the IHI Group with its customers and society, and the Group believes that ensuring quality is fundamental to its social mission and existence as a company.
Additionally, in response to an incident of inappropriate conduct in a Civil Aero Engine Maintenance Business in 2019, the Group established the IHI Group Quality Declaration, which states that it prioritizes quality as well as safety. This reiterates the Group’s basic approach to manufacturing and its actions and awareness of quality.

Policy

IHI Group Quality Declaration

We, the IHI Group, shall:

  1. Always put quality first.
  2. Continue improving quality via Sangen-Shugi and communication.
  3. Listen sincerely to issues, swiftly take action and share accurate information.
  4. Provide quality assurance through compliance with rules and working appropriately.
  5. All strive for the satisfaction of our customers.

Governance

Quality Assurance Framework

The IHI Group established the IHI Group Quality Committee as a Group-wide committee on quality. The Committee confirms that important policies related to quality are being developed as specific initiatives. The Officer in charge of Overall Group Quality Assurance acts as the Committee chairperson. Committee members consist of Presidents of business areas, Executives in charge of quality for business areas, and Executives of corporate divisions. The Committee meets at least twice a year and also may meet as needed depending on the status of quality assurance risks, such as deployment results or quality issues that occurred during the fiscal year. The Committee also deliberates on the quality policy for the next year at the final meeting of the fiscal year.

Quality Improvement Promotion System

IHI Group Quality Committee

Chairperson Officer in charge of Overall Group Quality Assurance
Members Presidents of business areas, Executives in charge of quality for business areas, and Executives of corporate divisions
Secretariat Monozukuri System Transformation Division
Number of meetings convened in FY2024 5 (including special instances)

Strategy

Risks

The IHI Group has built a Quality Assurance Framework and has put in place a quality management system (QMS) to ensure quality in order to provide products and services that achieve customer satisfaction, safety, and peace of mind. The Group strives to maintain the QMS in an appropriate state at all times by reviewing it in a timely and appropriate manner in response to changes in customer expectations for products and services and changes in the external environment, including legal requirements.
However, if an unexpected situation were to occur, it could lead to a decline in customer safety and public reputation, as well as compensation for damages, which could have a negative impact on the IHI Group’s business performance and financial condition.

Opportunities

Ensuring quality and product safety provides the IHI Group with great opportunities to improve customer satisfaction, strengthen its brand image, and improve market competitiveness.
Also, rigorous approach to the quality management system will enhance the quality assurance ability of the entire organization, and timely and appropriate responses to environmental changes will promote product innovation.

Risk Management

Quality Assurance Activities

The IHI Group carries out its business activities after obtaining Quality Management System (QMS) certification based on public standards such as ISO 9001 at its Offices and Works that provide products and services. QMSs that have been certified may be required to obtain certification other than ISO 9001 due to customer requests, and due to the nature of their business, there may be cases in which they intentionally do not obtain outside certification.
Of the 72 locations of IHI and subsidiary companies in Japan and overseas, 57 locations have acquired the QMS certification for fiscal 2024. (Acquisition rate: 79%)
In addition, in order to make Quality Assurance Activities using QMS more effective, the Group has been continuing activities since 2019 to create a comfortable workplace by solving problems that arise in the workplace. The Group aims to disseminate fantastic activities throughout the entire company by announcing them at Group-wide results reporting meetings.

Ensuring Product Safety

The IHI Group conducts life-cycle risk assessments during product development and implements design measures to reduce risk as much as possible. The Group then provides residual risk information to its customers.
On the contrary, if an incident (nonconformity) occurs in which a product provided to a customer does not meet the requirements of the customer or society, including issues related to product safety, the product will be reviewed as determined by each organization’s Quality Management System (QMS). The Group will take measures to deal with any non-conformities that have occurred, following the procedures specified.
In addition, in order to prevent the recurrence of previous nonconformities, the Group will conduct a thorough investigation of the problem to determine the root cause, which may include issues with systems and procedures, their management and operation, ability management, education, quality awareness, and so on. By improving the QMS that addresses these concerns and implementing the necessary education and training, the Group will achieve more reliable recurrence prevention.

Customer Satisfaction Surveys

The IHI Group offers a broad range of products and services, therefore customer satisfaction surveys are tailored to the unique needs of each business. The content and methods of the survey also vary on the characteristics of the business. In order to further improve customer satisfaction, the results of these surveys, including website inquiries, are analyzed and the results shared with related divisions, leading to developing activities to further improve customer satisfaction.

Metrics and Targets

Number of Law Violations

(Unit: Incidents, Scope: IHI and consolidated subsidiaries)

Item FY2021 FY2022 FY2023 FY2024
Laws/regulations relating to PR activities 0 0 0 0

Quality-Related Training Participants

(Unit: People, Scope: IHI and affiliated companies in Japan)

Item FY2021 FY2022 FY2023 FY2024
IHI Group Quality Declaration 288 262 384 852
Internal auditor programs 29 44 43 56
Basic quality management
How to proceed with product safety risk assessment
81 50 12 19
Training seminars for manufacturing divisions focused on problem-solving and addressing issues in quality management 123 117 94 119
Professional Quality Training 6 6 6 5
Quality Assurance Training for Managers 182 40 0 421
Quality & Compliance Training for Managers* 2,487 436 318 1,959
Quality & Compliance Training Based on Case Studies
Discussion Leaders Training
398 77 62

Limited to the Quality Assurance Division until FY2023

Initiatives

Employee Education and Awareness Building

The IHI Group provides education and training, etc. tailored to each employee’s career and job position, with the aim of raising employee awareness of the importance of product and service quality and safety.
Training is provided for new employees to help them understand the IHI Group Quality Declaration. At the same time, the Group is also expanding educational programs to develop leaders who will play a central role in promoting quality assurance in each organization. In addition, to gain a deeper understanding of quality issues, the IHI Group provides quality compliance training that employs case studies to teach the mechanisms and underlying causes of quality-related compliance issues, as well as what should be done to prevent them. After the quality issues were discovered in fiscal 2024, special training was conducted for all employees of the affiliated companies in question. In addition, workshops were held for all employees with the aim of instilling and establishing a deeper awareness of quality issues.

Disclosure of Information about Products and Services

The IHI Group discloses information about its products and services through various mediums, such as television and newspaper advertisements and the Group website. This information helps familiarize the stakeholders at large about the Group’s business operations. The Group cooperates with all relevant internal departments to provide accurate information in accordance with copyrights, trademarks, and all other relevant laws and industry regulations. The effectiveness of these advertisements is evaluated to examine opportunities on areas of improvement.

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