With this in mind, Daikin strives to stay ahead of customer needs by providing high-quality products and services based on its corporate policies of "Absolute Credibility," "Enterprising Management," and "Harmonious Personal Relations."
With a quality management system in place, we ensure that our products are of the highest levels of safety and quality in all processes: from design and manufacture to sales and after-sales service.
Air conditioning divisions: "Provide high-quality products through relentless improvement activities."
Service divisions: "Achieve the highest level of service quality (in speed, accuracy, and politeness)."
Chemicals divisions: "Provide quality that sells and that satisfies customers' demands."
All major manufacturing bases in Daikin have obtained ISO 9001 certification and have quality management systems conforming to this international standard. Company divisions maintain high levels of product quality and ensure proper management of each department, such as development, procurement, and production. We are also improving quality at our contract manufacturers.
In all aspects of the quality management system, each division continuously carries out internal audits, assesses the operational system, and carries out the PDCA cycle's do, check, and act steps. Furthermore, every year each division sets key quality measures and targets based on the Group's new year policy and then plans and executes a fiscal year plan based on these measures and targets.
With the goal of establishing a Daikin quality that meets customer expectations, the air conditioning divisions strove to address defects at an early stage through expanding traceability efforts in order to ensure quality that customers can trust.
Additionally, the divisions worked hard to reach their goals by improving development quality with enhanced quality assessment process, improving manufacturing quality with elimination of lot defect due caused by the equipment, and enhancing quality of purchased products through co-creation with suppliers.
In the chemicals divisions, under the policy of "providing customers with reassurance and value," we have introduced early detection of abnormality, process inspection, change management, and equipment design (QFD process*) to eradicate quality defects and respond to chronic quality irregularities of each product, and made efforts to provide global quality assurance through horizontal examination of common quality issues across multiple products.
Moreover, we conducted measures with a focus on themes that had large financial implication or impact on business due to serious defects that occurred in the previous fiscal year with an emphasis on "quality defects and current tasks," and "enhancing the ability to establish quality," as well as developed the platform for improving and stabilizing quality through quality assurance (QFD process) from the product design stage and revising our change management. As a result, we largely reduced the number of quality-related complaints to 17 cases (45% reduction from previous year) and compensation paid due to quality irregularities to ¥329 million (47% reduction from previous year). Going forward, we plan to implement AI and IoT based prediction management on the quality management platform built this fiscal year.
The air conditioning divisions have reformed their development process with a stricter, more segmented design review* under which the personnel in charge of the development divisions inspect the proposed products for conformity to Daikin standards using the five criteria of an individual design review (DR): product quality, monotsukuri (the art of manufacturing), cost-effectiveness, compliance, and security. The item of security was newly added in fiscal 2020 in response to the heightened information security risks for our company's products. The same design review is conducted at Daikin's overseas bases.
In the chemicals divisions, we have been conducting reviews based on a four-level management system consisting of development theme verification, technology establishment, business-viability establishment, and mass-productivity. As key review standards, in addition to the four criteria of product quality, monotsukuri (the art of manufacturing), cost-effectiveness, and compliance, we focus on safety and environmental consciousness. Because we were not able to get evaluations from customers and the industry with regards to criteria in the stage of business-viability establishment, since fiscal 2015 we have increased the number of inspections we do to strengthen design review functionality.
During the development stage, we perform forced ignition tests on actual products to ensure that even if an accident occurs due to a faulty product the problem does not spread beyond the product itself.
Every two years, Daikin holds a meeting of the Global Product Structural Audit. With participation by quality control managers from production bases, the goal of this meeting is to share know-how and bring together those working on the front lines of quality so as to ensure that Daikin's product structural auditing is conducted at the highest possible level worldwide.
We have two global systems for gathering information—on customers and products—from markets around the world. The information is used to solve problems at each base and thus create better products.
Daikin products are designed based on quality standards and design standards that ensure that, even if users misuse machinery or use it beyond recommended limits, there is no danger for the users; and even if there is a product accident, the danger to the user is minimized.
In case of a product accident, we have systems in place that allow us to quickly relay the necessary information and handle the problem, and minimize the impact on the product users and the general public.
In fiscal 2018, we systematized the provision and management of product accident information in order to accelerate information provision and strengthen the follow-up system given the increasing speed at which information proliferates on the Internet and our belief that we must respond ever more quickly to product accidents to minimize any negative effects these may have on our customers and society as a whole.
We strive to prevent major product accidents from occurring. When the cause of a minor product accident is discovered, we examine it to determine whether this could also lead to a major accident. The information we gather is reflected into the development of future products.
In fiscal 2020, there were no cases of product recall.
The Daikin Group (hereinafter, "the Group") believes that its most important management task is to provide products that satisfy customers from the standpoint of our customer when designing and making products that have a high level of safety and quality. To this end, we have formulated the following basic policies on product safety in efforts to provide ever-greater levels of safety and quality in products.
(Formulated in June 2007)
We have formulated our Global Product Safety Standards to ensure products are designed for the utmost safety by having standards common to all Daikin worldwide bases. The goal is to make sure that products can be operated safely and that damage is limited to the absolute minimum in case of a product accident—whether the customer is using the product correctly or incorrectly, and whether the customer can operate the product safety during an atypical usage situation.
These safety standards set common rules for the global Daikin Group regarding things like fire, electrical shock, and explosion, and stipulate two layers of safety in the design: design that will prevent accidents from occurring, and design that will minimize damage should an accident occur.
The Consumer Product Safety Act obligates companies to design products for safety and provide consumers with information and warnings so that household product accidents can be avoided.
Based on the failsafe* philosophy, Daikin's system of checks ensures that customer safety is the top priority in design and that design review (DR) leads to safe products.
Our website also provides consumers with information including the model number and production year of products already on the market. In April 2009, the Ministerial Ordinance of technical standards for the Electrical Appliance and Material Safety Law went into effect. We abide by this ordinance by placing labels on our residential air conditioners and ventilation fans (which are covered by this law) that state the duration of product use.
In Japan, about one-third of the product accidents are the result of improper product operation. We therefore strive to provide customers with accurate, easy-to-understand operating instructions so that they can use our products safely.
The air conditioning divisions conduct product labeling in compliance with industry guidelines, such as the Guidelines for Labeling Household Products for Safe Use (5th edition, revised October 2015), published by the Association for Electric Home Appliances, and the Revisions Labeling Procedures (March 2010), published by the Japan Refrigeration and Air Conditioning Industry Association.
When we make product user manuals, we make sure they are readable, easy to understand, and easily searchable. This ensures that customers can use products with peace of mind. We work with our design, quality control, service, and sales departments to improve areas of customer confusion in order to make manuals with which customers can get the answers they need quickly.
For the installation product user manual of commercial air conditioners developed in fiscal 2014, we changed the page size from A1 to A4 to make the text easier to read. For wired remote controllers launched in April 2017, users can easily download the manual from our website by smartphone or computer.
In addition, in fiscal 2019, we launched a new video support page on our support website, which contains a video manual prepared in cooperation with sales and service departments as a method for fixing operating status which customers have had trouble self-diagnosing whether a product was operating normally or abnormally using the manual alone. Other initiatives include adding an FAQ and AI breakdown diagnosis as well as displaying current operating status in an easier to understand manner by improving the information presented on the remote control of X-type residential air conditioners.
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