Manufacturing Excellence & DX Briefing

March 6, 2024

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Table of Contents

1.Manufacturing Excellence and R&D Strategy

2.DX Strategy

3.IT Strategy

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Manufacturing Excellence and R&D Strategy

Copyright ©MITSUBISHI MATERIALS Corporation.All rights reserved.

1. Manufacturing Excellence and R&D Strategy

Materiality

Materiality

Creation of a

recycling-oriented society

Key Themes

Main Initiatives

Objectives, etc.

Contribution to global environment

Sustainable supply chain

management

Respect for human rights

Creation of innovation

Building and execution of new business creation processes for continuous creation of businesses to be developed (increase in themes; business

commercialization; growth

of new businesses)

FY March 2024: Launch of acceleration program

By FY March 2028: Establishment of organization system; ongoing investment and lending strategies (new business creation, M&A, etc.) FY March 2031: Operation multiple businesses of a prescribed size

Workplace safety and hygiene

Maintenance and improvement of

governance

Retainment and utilization of

human capital

Stakeholder communication

Deepening of DX

Exploration

Black Mass processed

and creation

Creation of rare earths and

FY March 2026

900t per year

of social value

rare metals recycling business

FY March 2028

3,000t per year

FY March 2031

6,000t per year

Execution of basic policy for

strengthening manufacturing

Pursuing issue setting, problem

capabilities (strengthening of

solving and plant capability

Strengthening

manufacturing

evaluation from businesses and

capabilities through PDCA

plants vision based on the FY2031

of

cycles for strengthening our

Strategy; continuation of working

manufacturing

manufacturing constitution;

on innovation to improve

reinforcement of

manufacturing

the manufacturing foundation

capabilities = continuation of

technology development and

specialization

improvement)

Initiatives to create new value

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5

1. Manufacturing Excellence and R&D Strategy

Monozukuri and R&D Strategy Division: Organization and Strategy Promotion System

As of April 1, 2024

Monozukuri and R&D

Strategy Div.

Intellectual Property

New Businesses

Manufacturing Excellence

R&D Strategy

Strategy

Strategy

Strategy

Corporate

Monozukuri and

New Business

Intellectual

Research &

Corporate

Incubation Center

Promotion Dept.

Property Dept.

Development

Innovation Center

Production

Strategy Dept.

Engineering Dept.,

Planning and

Strategy

Safety &

New Business

Environment

Fuji-Oyama

Management G

Planning G

Promotion

Dept.

Plant

Dept.

Business

Analysis &

General Affairs

&

Development G

Research G

Administration

General Affairs

Dept.

&

Business

IP Prosecution

Planning &

Administration

Dept.

Support G

G

Coordination

Dept.

Production

Management

Monozukuri

Dept.

Fields

Monozukuri

Innovation &

R&D Fields

Product

Design Dept.

Strategy Formulation / Promotion

Implementing Strategies in conjunction with Company Development / Technical Divisions, Centers / Laboratories, and our Innovation Center / Incubation Center

Strategy

Implementation

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1. Manufacturing Excellence and R&D Strategy (Manufacturing Excellence Strategy)

Manufacturing Excellence Strategy

  • Formulate a vision for each plant based on the FY2031 Strategy, work to evaluate plant capabilities, set issues and solve problems.
  • Specialize manufacturing capabilities through bottom-up activities, enhancement of our manufacturing foundation, and development & improvement of our technologies.

Specialization

Visioning based on

Technology development and improvement

business strategy

Improvement of

Conversion to a

process and process

Evaluating plant

smart factory

technologies

capabilities and

setting issues

Establishment of AI

Data collection and

utilization and automated

infrastructure

Evaluating the capabilities of plants

inspection technologies

development

by ourselves and pursuing solutions to

Enhancement of digital technology and expansion of the

problems

application of utilized technology through a promotion

system in which each department works closely together

  • Plant innovation capability
  • Policy management

capability

Manufacturing foundation

  • Mass production capability

Plant operation capability

Reform of production

Strengthening field

Plant improvement capability

capability-Supervisor

preparation process

Organizational and talent

role reform

development capabilities

Reform toward a special status that is not an

extension of the past

Strengthening

manufacturing

capabilities

Strengthening

manufacturing

foundation

Strengthening human

resources

Development of human resources who

can understand the principles and solve

the problems

Bottom-up activities

Fostering a culture of

improvement

Providing opportunities for trials

that promote motivation

Support for problem-solving

Providing opportunities for

autonomously solving problems

Strengthening

our

manufacturing

constitution

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1. Manufacturing Excellence and R&D Strategy (Manufacturing Excellence Strategy)

Current Efforts to Enhance Manufacturing Capabilities

Area

Previous Strategy

Current Strategy

- 2050

(- 2022)

(2023 - 2030)

Digital Twin

Digital Twin

Promoting Smart Factories

Process

This technology creates a virtual

New

Enhancing Productivity

Optimization

model of the physical space using data

collected and compiled via IoT, etc.

Predictive

Functions

Maintenance

Coordinating

& Effects

Visualization

Talent & Equipment

Primary Benefits

Safety Measures

(Internal

Operational Support

Compliance with

Equipment Maintenance: Real-Time

Development,

& Education

Quality Improvement: Virtual

Operational Standards

External

Skill Transfer

Simulations

Collaboration

Location Management

Risk Reduction: Virtual Simulations

Time Saving: Virtual Simulations

Optimizing Internal

Logistics

Cost Reduction: Virtual Simulations

Utilizing DX

Improved Services: Real-Time

Developing AI Professionals

New

AI Data Analysis

Virtual Space

Capabilities

Machine Learning / AI Image Search

(Digital Plant)

Smart

Process Simulation & Plant Simulation

Factories

Implementing AGV Systems & Robots

Apply the results of simulations &

Automation

SensingPrecision / 3D / Spectral

analysis performed in the virtual space

(Sophisticated

Data Collection Infrastructure

Import data from the physical space

Sensing &

Production Management System / Scheduler

Control)

Physical Space

Work Analysis / Flow Line Analysis / Gaze Analysis

Human

(Actual Plant)

Voice Recognition / Wearable Devices / VR / MR

Support

Edge Computing / Edge Devices

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1. Manufacturing Excellence and R&D Strategy (Manufacturing Excellence Strategy)

(Achievable Project) Current Efforts to Enhance Our Manufacturing Foundation

Achievable Project

  • 3-yearproject (FY Mar. 23 - FY Mar. 25) intended to enhance our manufacturing foundation (FY Mar. 22: preparation period)
  • We aim to be an organization that continuously produces results and build systems that promote autonomous improvement, and the culture of talent development needed to support it, through quality stabilization and efforts to strengthen production management, while always moving forward.
  • Steps to Strengthen Production Management, Current Progress

Phase 1

Phase 2

Currently

Phase 3

Detailed Examination

Strengthening Footing

Polishing &

Carefully examine current

Site visualization & initial

Preparation

improvement activities, unify

improvement

Accelerating

activities

understand production progress

improvement

understand clear lead times

improve in-process

understand status of activities

understand & improve bottleneck

inventory

propose new activities

processes, process management loss

evaluate compliance rate

plan activities in line with capabilities

understand setup times, improve

for standard operations

procedures

reform the role of auditors

Phase 4

Strengthening Our

Manufacturing Constitution Establishing improvement

meet targets for in-process inventory, improved productivity, standard operations

reform the role of auditors establish/strengthen onsite presence

  • Steps for Quality Stabilization, Current Progress

Phase 1

Phase 2

Currently

Phase 3

Phase 4

Initial Analysis

understand situation on the ground (sites) analyze defects, find true causes

identify underlying technologies necessary to prepare for production

connect to production preparation process prepare systems

(in terms of products and underlying technologies in preparation for production)

Starting Activities

initial analysis

  • anticipate, take measures against causal factors
  • There are limits due to complex underlying technologies required in preparation for production.

Reaping Results

reap results from underlying technologies being advanced concurrently

  • There are limits to measures that can be taken in response to defects of unknown cause.

Achievement!

analyze factors involved in defects of unknown cause deep investigation of underlying technologies

Eliminate defects

  • standardize the production preparation process

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9

DX Challenge Stats
1st Period (Oct.7, 2022 - Sep.29, 2023) Theme Submissions : 19 Implemented: 7
2nd Period (Sep.30, 2023 - ) Theme Submissions : 8

1. Manufacturing Excellence and R&D Strategy (Manufacturing Excellence Strategy)

Current Efforts to Strengthen Our Manufacturing Constitution (DX Challenge)

Concept: Cultivate talent by providing all employees with a place to learnand practiceDX through our Company-wide activities.

DX Challenge Program

  • Recruit bottom-up themes within a defined scope (number, budget)
  • Costs of initial stages are paid from DX funding
  • Embrace challenges / lower barriers to participation

Overview of Other Measures

Issue Support

Pursue solutions to problems

LearnSelf-Improvement,Person-to-Person Communication, Preventing Isolation

Building Community

Head office leadership: numerical

analysis, image analysis, text

mining, optimization...

DX Themes

DX Education

Proposed by

& Training

Programs

Employees

Issue Support

DX Challenge

Program

Plant Vision

faced by sites with support

from the appropriate experts

at the Strategic Headquarters

DX Education & Training

Programs

Grow advanced digital talent

Inspire employees to seek to

attempt specific things and

experience specific, relatable

activities and changes

Environment (Tools)

Create an environment where

Environment

(DX Tools)

Business

Vision

Connect themes proposed by employees

to each vision

Practice

even people without DX

experience can quickly put it

into practice, including RPA,

data visualization & analysis,

and no-code tools

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Disclaimer

Mitsubishi Materials Corporation published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 03:00:04 UTC.