26000 fluid machinery & systems company - 荏原製作所 · fluid machinery & systems...

Fluid Machinery & Systems Company

The Fluid Machinery & Systems

Company adopted as its

fundamental policy "striving to

become a truly global company

that continuously grows" from

the E -Plan2013 and positioned

the plan term as a period for

building business structures that

can reliably pursue world-

leading status in key business

areas. We set as a priority issue

achieving competitive

superiority in global markets

from a medium- to long-term

perspective, built overseas regional oversight functions in China,

Southeast Asia, and the Middle East, expanded sales and service

sites, enlarged sales network through organic collaboration by

overseas sales companies and domestic and overseas plants, and

reorganize the domestic pump business.

In recent years social needs for energy and water infrastructure have

been growing at an increasing pace, particularly in emerging

countries, and the Fluid Machinery & Systems Company will fulfill

its social responsibilities through business activities that respond to

demand for social infrastructure such as oil and gas facilities, electric

power, water supply, construction, and wastewater drainage. Under

the E - Plan2016, we will expand our presence (share) in global

markets by pursuing a larger scale of business in continuously

growing overseas markets. To achieve this, we will enhance our

product capabilities to supply the quality, prices, and delivery times

that meet customer needs and generate service business throughout

the product lifecycle. We will make every effort to provide the

products and services that customers around the world want with

enthusiasm and sincerity.

Message from the Company's President

Atsuo OhiPresident

Fluid�Machinery�&�Systems�Company

Europe and AfricaEbara Pumps Europe S.p.A.Sumoto S.r.l.Ebara Pompy Polska sp. z o.o.Ebara Espana Bombas S.A.Ebara Pumps RUS Limited Liability Companyand others (8 firms in total)

Southeast Asia and OceaniaEbara Vietnam Pump Company LimitedP.T. Ebara IndonesiaEbara （Thailand） LimitedEbara Pumps Malaysia Sdn. Bhd.Ebara Engineering Singapore Pte. Ltd.Ebara Benguet, Inc.Ebara Pumps Australia Pty. Ltd.Ebara Thermal Systems （Thailand） Co.,Ltd.and others (10 firms in total)

Middle EastEbara Pumps Middle East FZEand others (4 firms in total)

South AsiaKirloskar Ebara Pumps Limitedand others (2 firms in total)

China and East AsiaEbara Machinery （China） Co., Ltd. EBARA MACHINERY ZIBO CO., LTD.EBARA GREAT PUMPS CO., LTD. YANTAI EBARA AIR CONDITIONING EQUIPMENT CO., LTD.EBARA DENSAN (KUNSHAN) CO., LTD. EBARA DENSAN (QINGDAO) TECHNOLOGY CO., LTD.Ebara Fluid Machinery Korea Co., Ltd.and others (13 firms in total)

North AmericaEbara International CorporationElliott Companyand others (7 firms in total)

South AmericaEbara Industrias Mecanicas e Comercio Ltda.and others (2 firms in total)

JapanEBARA CORPORATIONElliott Ebara Turbomachinery CorporationEbara Refrigeration Equipment & Systems Co., Ltd.EBARA DENSAN LTD.EBARA MATERIAL CORPORATIONEbara Hamada Blower Co., Ltd.Ebara Byron Jackson Co., Ltd.and others (12 firms in total)

Main Sites of the Fluid Machinery & Systems Company

In FY2013, we accelerated global development.The Fluid Machinery & Systems Company provides many products and services for facilities that support the living environment of people and regional industry in Japan and many other parts of the world. Through the efforts of sites established around the world, we are steadily developing ties to business in these regions and engaging in customer-oriented activities.

Examples include large coal-fired electric power generation, LNG combined cycle thermal power generation in China and East Asia, the oil and gas markets and electric power markets in North America, agriculture and urban development in Southeast Asia and Oceania, and desalination of seawater in the Middle East. Going forward, we remain committed to contributing, through the provision of products and services, to solving issues in regions around the world rising in conjunction with rising energy and water demand.

18 EBARA Group CSR Report 2014

The EBARA Group conducts business with a high standard of ethics.

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2. The EBARA Group innovates to supply technologies, products, and services that delight its customers.

Pump BusinessResponding to Customer Expectations through Close Community TiesEbara International Corporation (EIC) — which manufactures, sells, and services cryogenic pumps for the liquid natural gas market in North America — marked 40 years since the start of business, Ebara (Thailand) Limited (ETL) — which sells and services fluid machinery products such as standard pumps in Thailand in the southeast Asian region — reached the 20 year mark since its foundation, and EBARA GREAT PUMPS CO., LTD. (EGP)—which manufactures, sells and services large pumps and turbines in China — reached its 10th year since establishment.

Furthermore, during FY2014, in the pump business, we established sales and service sites in Russia, the Middle East, Southeast Asia, and other regions, and in the chiller business, we established a site in Southeast Asia. In the compressor and turbine business, we took measures to enhance service functions at sites in China, the Middle East, India, and other regions. In the pump business, compressor and turbine business, and chiller business, our core businesses, we will continue working to increase installations by overseas sites while providing products that meet regional needs and reinforcing precise service and support to the useful to our customers around the world and further accelerate the globalization of the fluid machinery and systems business.

Providing Solutions to water treatment problems in BahrainWe participated in the Japanese Technologies for Water Environment and Sewerage Workshop held in January 2014 in Bahrain. The workshop was proposed when a Bahrain government official visited Japan and was co-hosted by the Bahrain Ministry of Works, the Japanese Ministry of Land, Infrastructure, Transport and Tourism, the Bahrain-Japan Friendship Society, and the Embassy of Japan in Bahrain as one aspect of investigations into means of solving the water treatment issues that Bahrain is confronting. Currently, 350,000 m³ of sewage is generated each

day, far in excess of the 200,000 m³ per day of domestic processing capacity, and untreated sewage is discharged into the ocean, causing water pollution. At the workshop, five Japanese companies including EBARA gave presentations related technologies for addressing this issue. The company introduced its sewage pumps and explained about passable grain size and types of bladed impeller and their protection. The workshop was attended by approximately 120 persons including government agency personnel, water treatment project contractors, and consultants and generated high levels of interest.

Lecture on Pumps conducted for Customers and Unitra, EMC’s Distributor in MongoliaIn September 2013, Ebara Machinery (China) Co., Ltd. (EMC) held a lecture on pumps in Ulan Bator, Mongolia. During the morning session, the lecture targeted employees of Unitra Co., Ltd., a sales agent in Mongolia, and sales personnel, and the afternoon session was for customers. Unitra conducts sales in Mongolia mainly of machine tool pumps made in Japan, Europe, and the U.S. and became an EMC distributor in 2013. The lecture served to strengthen relationships with Unitra personnel and raised their knowledge of EBARA products. Since EMC signed the distributorship agreement with Unitra, it has received orders for approximately 80 pumps, and the lecture led to new orders. EMC plans to continue holding such lectures in the future.

A�Unitra�sales�office

A�scene�from�the�lecture

40th�Anniversary�of�EIC’s�Establishment

A�scene�from�the�workshop

19EBARA Group CSR Report 2014

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Production Innovation ConferencesWe are implementing production innovation programs to improve production activities and raise efficiency so we can provide products to customers at appealing prices in a timely manner. We held group-wide Production Innovation Conferences in July and September 2013. At the July conference, personnel involved in operations at all plants in China gathered at EBARA DENSAN (KUNSHAN) CO., LTD. (EDKM) with the participation of the Haneda Office through live teleconference to share information on the results of productivity improvements made at each plant in China since the Basic Training Conference held in June 2012.

Quality Improvement MeasuresTo raise competitiveness in increasingly global markets in the future, it is necessary to optimize production locations and product supply from the perspective of regional production for local supply. Each production site must build highly efficient production systems while supplying high-quality products. A conference was held at an Ebara Boshan Pumps (now EMZ) plant in China in FY2013 to raise quality. At the conference, the causes of product defects were analyzed and participants discussed

prevention of re-occurrence and confirmed their commitment to undertaking measures to continuously raise quality while exchanging information. Each plant will continue quality-enhancement measures by implementing quality management based on ISO 9001 to meet the expectations of customers. Going forward, they will respond to increasing globalization, reinforce collaboration among production sites even further, and achieve even greater improvements in quality.

Enhancing Procurement CapabilitiesAn international procurement conference for the pump business was held at the EBARA head office in November 2013. 36 employees including participants from the procurement divisions of nine overseas Group companies attended the conference. The purpose of the conference was to share information on best practices relating to procurement operations among pump manufacturing sites and to reinforce the procurement organizations in order to contribute to reduce cost. If cost can be reduced, the Group will be able to provide products and services to customers at more attractive prices.After confirming the roles that procurement must play in the Medium-Term Management Plan, each participating company gave a presentation on its own procurement policies and issues related to operational practices. The presentations were followed by an active question and answer session and an exchange of opinions.

At the Global Procurement Conference, EPE made a presentation on its procurement activities, such as the methods of procurement used and the indicators used to evaluate supplier’s performance.The procurement conference was a great opportunity to know each other’s companies, to understand the best purchasing practice and share information about suppliers. The idea to create a supplier database where each company can access is a synergy that can create advantage for all the group in order to achieve the planned targets. I think it is mandatory for the EBARA Group to standardize the KPI (Key Performance Indicator) in order to have the same supplier evaluation method.

Diego PonzaEbara�Pumps�Europe�S.p.A.�(EPE)�(Italy)

Achieving Management Targets by Generating Synergy Effects

VOICE

I attended the Production Innovation Conference and gave a presentation on production innovation targets, implementation of 5S management, VSM analysis, and DDT production at EMZ (formerly Ebara Boshan Pumps Co., Ltd.).By participating in this conference, I learned about the features of products from other companies, production methods, and the status of production innovation implementation and studied examples of beneficial production innovation methods at other companies.Also, through dialogue with personnel from other companies during the conference, I investigated with others methods of solving product shortfalls that occur during production, raising production efficiency, and improving product quality, producing positive results.I will work to continue implementing production innovations, promote fixed positioning at pipe-laying sites and high-pressure pump assembly flow work, improve work efficiency and product quality while reducing costs, and raise the company’s market competitiveness.

Wang Dong Bing�Production�and�Procurement�Division

EBARA�MACHINERY�ZIBO�CO.,�LTD.�(EMZ)

Raising Corporate Competitiveness through Production Innovation

VOICE


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The EBARA Group conducts business with a high standard of ethics.2. The EBARA Group innovates to supply technologies, products, and services that delight its customers.

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Compressor and Turbine Business

Compliance TrainingThree years after the January 2011 integration of Elliott Company in the United States and Elliott Ebara Turbomachinery Corporation in Japan, the Elliott Group, which handles the compressor and turbine businesses, has more than 2,600 employees from many different countries. To ensure that the entire multi-national workforce has a full understanding of compliance, Elliott Group conducts compliance training via its intranet in nine languages including English and Japanese, and the Elliott Group Code of Conduct is posted on a website in multiple languages. In addition, officers and employees responsible for compliance conduct on-site compliance training at business sites in each country. Training was conducted at the Taiwan and Singapore offices in June 2013 and in the Sodegaura plant in January 2014 with 424 employees participating.

Measures to Raise Customer SatisfactionThe performance of compressor and turbines used at oil and gas plants is becoming even more advanced and consequently requires after-sales service to ensure stable operation of products. After sales service is becoming increasingly more important than ever. Elliott Group is strengthening the development of field service personnel in the Asia-Pacific Region where many of its customers are located. Elliott Group’s Sodegaura facility plays a central role in service within the region; service sites are located in India, Singapore, Taiwan, and China. We plan to increase the number of field service personnel from 47 as of April 2014 to 50 by the end of 2014. In an effort to train new service personnel and enhance the skills of current personnel and reinforce service structures, we have been, for at least three years (since 2011) conducting training that includes in-house basic and practical training as well as practical on-the-job training at customer sites. As of April 2014, twenty-eight service personnel have completed the applied training course. As a result of these efforts, our work during a major periodic inspection and modification project undertaken by a customer in China in 2013 was highly rated as a result of the exceptional skills and teamwork of our service personnel. In fact, Elliott Group received an award as a best supplier. We will continue to build on these types of measures so we can achieve even higher levels of customer satisfaction.

Contributing to Local Society as a Good Corporate CitizenIn 2011, Elliott Group launched the Elliott Leadership Development Program (ELDP) to train the next generation of leaders. Under this program, community-based social contribution activities by employees are encouraged and supported. In October 2013, twenty-four employees from around the world participated in a volunteer program intended to provide food to several hundred people in underprivileged households living within in the geographic area near Langley High School in Pittsburgh, Pennsylvania. The employees supported a process of packing fruit and vegetables for about two hours and delivered food bags by car to senior citizens and disabled persons, providing more than 6,800 kg of fresh food to 330 households. Elliott Group contributes to the development of local communities through this type of program.

I was appointed president in April 2014.Elliott Group is deeply involved in growing energy markets and supplies products that are positioned among the most

important equipment for oil and gas related plants. Our products are characterized by extremely high reliability and efficiency, and customers in countries around the world require timely after-sales service.Under the E-Plan2016, we conduct global “economic activities based on a keen sense of ethics and high-quality communications” in accordance with the EBARA Group CSR Policy and the Elliott Group Code of Conduct. The entire Elliott Group remains committed to contributing to international society by acting as a good corporate citizen and providing outstanding products and optimal after-sales service that achieves high levels of customer satisfaction.

Elliott Ebara Turbomachinery Corporation’s CSR Policy

Compliance�training Elliott�employees�who�participated�in�the�volunteer�program

Kazuro Takamura PresidentElliott�Ebara�Turbomachinery�Corporation


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Chillers BusinessEbara Refrigeration Equipment & Systems Co., Ltd.(ERS) and YANTAI EBARA AIR CONDITIONING EQUIPMENT CO., LTD. (YEACE) in China are the main manufacturing bases for the chillers business. The company supplies high-efficiency thermal energy systems and products including chillers and cooling towers that take into consideration both comfortable HVAC＊1 environments in commercial buildings and plants around the world as well as the global environment and provides high quality service and support.

New Base Established in ThailandEbara Thermal Systems (Thailand) Co., Ltd. (ETST) was established in Bangkok, Thailand in April 2013 as a new base to respond to rising demand for chillers and other thermal energy systems as commercial building construction increases along with economic growth in Southeast Asia.ETST conducts refrigeration equipment business that covers everything from sales, service & support including installation, testing, repair, and maintenance. Based on product, service, and support technologies developed in Japan, the company will provide even more appealing products and services that meet the needs of customers expanding business in Southeast Asia.

Energy-Saving Screw Modular Chiller LaunchIn 2013, ERS launched a screw modular chiller with improved function that provides less space, energy-saving and achieves distribution of the risk of failure, compared to centrifugal chillers.

Total EngineeringIt is estimated that air conditioning equipment accounts for about 40% of energy consumed by buildings (estimate by ERS), and reduction of energy consumption, carbon dioxide emissions, and running costs relating to air conditioning equipment is an important issue for our customers. To address these issues, we conduct total engineering including equipment diagnoses, proposing optimal systems, providing energy solutions that include installation construction, and provide service and support to maintain optimal operation after installation.

Remote Intelligent Service Systems (RISS)ERS proposes a remote monitoring system to customers. The system remotely monitors the operating status of equipment on behalf of customers 24 hours a day, reducing operating management load. In addition, accumulated monitoring data can be used to propose operating plans that will lead to a more comfortable HVAC environment. Safe, secure, and economical operational support is provided, including predictive functions that can detect signals of HVAC equipment failures, systems for providing rapid and appropriate services using monitoring data in the event a failure occurs, and proposals for more effective maintenance plans from the perspectives of life cycle costs and energy savings.

Improved-Function�Screw�Modular�Chiller

Remote�Intelligent�Service�System

Equipment Diagnosis

Solution

Customer Issues

Customer Support Services

Proposal of Optimal System

Remote Monitoring

Center

Chillers perform work under heavy loads

on a daily basis

Customer

Ebara Refrigeration Equipment &

Systems Co., Ltd.

Remote monitoring

Commands

Dispatch of Service Personnel

＊ 24-hour service （including nights and holidays）

Emergency Dispatch＊

Total Engineering

＊1：【HVAC】��Heating,�Ventilation,�and�Air�Conditioning


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Precision Machinery Company

Since the Precision Machinery

Company was founded, we have

been committed to providing

excellent technologies and

exceptional service in the water,

air, and environmental sectors in

relation to all customer

manufacturing processes, and

we continue to make efforts in

these areas.

During the three years of the

E-Plan2013, we provided

optimal technologies,

particularly to meet the demand for green technology in the market

(such as energy saving and environmental preservation). As a result,

our products, tailored to needs and the times, have been broadly

accepted by customers, and we have established a track record of

success.

Going forward, we will provide products and environmental

technologies required by an information society that is undergoing

rapid and unceasing development and that are suited to the times—

such as the Internet of Things (IoT)—while achieving customer

satisfaction and contributing to society and the earth.

The hurdles regarding customer technology and service requirements

are becoming higher every year, and consequently, achieving perfect

customer satisfaction is not possible. It is demanding requests,

however, that educate us. I ask for your continued support and

guidance in the future.


Manabu Tsujimura President

Precision�Machinery�Company

Ebara Precision Machinery Europe GmbH

EBARA CORPORATION

SHANGHAI EBARAPRECISION MACHINERY CO., LTD

Ebara Engineering Singapore Pte. Ltd.

Xian Ebara Precision Machinery Co., Ltd.

Ebara Precision Machinery Korea, Inc.

Ebara Technologies IncorporatedEbara Precision Machinery

Taiwan Incorporated

EBARA FIELD TECH. CORPORATION

11 support shops1 overhaul plant

11 support shops3 overhaul plants

2 development, design, and manufacturing sites

3 support shops1 overhaul plant

1 support shop1 overhaul plant

1 support shop1 overhaul plant

5 support shops1 overhaul plan

7 support shops1 overhaul plant5 support shops

1 overhaul plant

Main Precision Machinery Company Business Sites

Supporting Semiconductor Advances, Responding to Customer Needs

The markets for mobile devices such as smartphones and tablet PCs and for the infrastructure (cloud) that supports communications by these information devices are growing rapidly.The Precision Machinery Company, whose customers are

primarily manufacturers of the semiconductors, LCDs, and solar cells that play central roles in these products and technologies, develops and manufactures systems and equipment for the semiconductor industry and vacuum machinery to meet the needs of its customers.The company will provide manufacturing systems and equipment that can keep up with the rapid advances in semiconductors and achieve the product functions that


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customers want in a timely manner. As a part of those operations, the company promotes reductions in environmental impact through green procurement, chemical substance management, measures to address the conflict mineral issue, reduction and recycling of waste, overhauling equipment, and other measures while using customer comments as feedback for each phase of the process to raise quality as indicated in the diagram below. By doing this, we gain the confidence of customers and meet their expectations. Some of our customers are members of the Electronic Industry Citizenship Coalition (EICC), an electrical and electronic industry trade organization, and consequently, they engage in activities in accordance with the Code of Conduct adopted by the EICC, and the company acknowledges the Code and supports these efforts and engages in various activities.

Quality Assurance

Raising Productivity through Cooperation with Suppliers

The EBARA Group makes collaborative efforts with suppliers in its day-to-day production activities to raise productivity, reduce burdens, and improve quality. We raised efficiency in the delivery of procured goods by adopting a milk run method, a system where we make the rounds of multiple suppliers to pick up goods, and have undertaken production innovation measures to reduce packaging burdens through the introduction of reusable bags. In all instances, we have relevant suppliers participate in the earliest stages of investigations and implement measures in collaboration with them. We also hold suppliers meetings concerning chemical mechanical polishing (CMP) systems and dry vacuum pumps to reinforce communications and collaboration by coordinating responses to market trends and supporting production innovation measures. In addition, we commend those suppliers that provide particularly helpful cooperation with regard to QCD: enhancing quality (Q) that meets customer expectations, achieving optimal cost (C) performance, and making reliable deliveries (D) and supply that provide assurance to customers. Going forward, we

will continue to issue monthly production forecast data, provide information on developments in day-to-day operations and our initiatives, and take action to prioritize good communications so that we can work in concert with suppliers.

Enhancing Quality through Group-Wide Global Systems

Products such as CMP systems and dry vacuum pumps must operate 24 hours a day, 365 days a year. This means that it is necessary for us to provide highly reliable products and services (such as overhauls and maintenance) under rigorous quality control standards and cooperate on a global scale to meet customer expectations.To make timely responses and reduce costs, we need to develop overseas production sites and locally procure production components and service parts based on the concept of regional

The conference was a great opportunity for engineers from dry pump overhaul service sites in various countries to gather and discuss shared issues and goals from their unique cultural and value perspectives. Japanese, English, Chinese, and other languages were used during the discussions, but there was no sense of awkwardness, and it seemed that we were all speaking the same language. I hope to again have this type of opportunity to interact with and learn from other engineers in the future so I can make improvements and provide even better overhaul services.

Chen Chin ChewPrecision Machinery Division

Ebara Engineering Singapore Pte. Ltd.

On Participation in the Borderless Dry Pump Overhaul Technical Conference

VOICE

Supplier Commendations

Development and

designProcurement Production

Sales and Use

Maintenance Support

Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world’s largest independent semiconductor foundry. Our mission at EPMT is to conduct business by building a win-win relationship with TSMC and gaining their trust.We recently worked with customers to supply and install a number of CMP systems at TSMC’s new plant, and in November 2013, we received the Fab14 Ramping Support Award. Winning this award was not the result of my individual efforts, but the efforts of all cooperating team members, and I am grateful to them. Even though we won an award, this does not mean that we have reached the end of our work, but merely a transit point for further efforts.

Eric LinSemiconductor Equipment Dept.

Ebara Precision Machinery Taiwan Incorporated (EPMT)

Building Win-Win Relationships with Customers and Reinforcing Support Capabilities.

VOICE


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production for regional supply. To maintain the quality of locally-procured parts and production goods, we are standardizing and codifying production and service operations; training workers at overseas sites engaged in production, quality control, service, and so on; auditing and providing guidance on local procurement; and implementing measures to maintain uniform product and service quality levels globally.We held a dry pump overhaul technical conference in 2013. Six employees from Japan and 12 employees from six overseas sites gathered to report on the status of overhaul operations and pump operating conditions following delivery. The participants shared information and exchanged ideas on solving problems and raising quality. We will continue conducting such measures in the future.Group global structures are raising quality and working to supply products and services with quality that meets customer expectations.

Meeting Customer Expectations by Raising Productivity

We have been undertaking production innovations for four years with the aim of raising productivity and reducing lead times in order to enhance customer satisfaction. Assembly lines have been changed from a multi-piece manufacturing flow to a one-piece manufacturing flow, and we have established production systems based on an awareness of linking all divisions and processes from order to shipment. As a result, the dry vacuum pump manufacturing department has cut manufacturing lead times by 75%, while the CMP system manufacturing department reduced manufacturing

lead times by 40% and halved manufacturing man-hours.The knowledge gained from these measures has been used with gas abatement systems as well, and manufacturing man-hours have been cut in half.We will continue to raise the quality of production processes and meet customer expectations by implementing production innovations.

Meeting Customer Expectationsby Ensuring Safety

Under the slogan “Safety First!,” we are creating an occupational health and safety management system (OHSMS) to ensure that all employees can work in a healthy and safe environment.The Kumamoto District, a CMP system production plant, acquired OHSAS 18001 certification in 2008 and became the first EBARA site to introduce an OHSMS to its operations. Other business districts are following Kumamoto’s lead in promoting health and safety programs in compliance with OHSMS and reinforcing safety management systems.Preventive safety was positioned as a priority topic in FY2013, and risk assessment training was conducted according to the positions and roles of management supervisors and on-site workers as a means of enhancing the risk sensitivity of employees. To effectively reduce and eliminate potential product risks (sources of danger) during the development and design stages, we formulated new product safety design rules and continuously worked to enhance product safety in ways that will raise customer trust.

Environmental Preservation MeasuresTo achieve EBARA Group environmental goals, the Precision Machinery Company also undertakes companywide measures.To enable all employees to become involved in environmental preservation measures, each year that organizational restructuring is conducted, all company organizations are assigned to environmental management blocks (there were 45 blocks in FY2013).Within these blocks, organizational heads are environmental management block managers. Block managers take courses on environmental performance reviews, environmental risk management, and other topics and work with block members to propose and carry out environmental measures that will lead to reductions in environmental impact in line with their block operations. A wide range of environmental programs are implemented, and in FY2013 a number of measures were taken to reduce the volume of water and chemicals used in development operations, producing significant results.

We conduct i-Support activities in order to provide the highest-quality after-sales services to customers. As a part of these activities, we established a project team to accumulate detailed data on information systems concerning products delivered to customers, after-sales service histories, parts replacement histories, and so on and to use that data. By doing this, we aim to strengthen collaboration between relevant head office departments and service sites, provide timely after-sales services, and make proposals for preventive maintenance, thereby meeting customer needs, providing high-quality service, and raising customer satisfaction.

Taijiro TaguchiCustomer�Support�Group

EBARA�FIELD�TECH.�CORPORATION

Providing High-Quality After-Sales Services through i-Support Measures

VOICE

One-piece�manufacturing�of�the�CMP�System


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Environmental Engineering Company

Under the E-Plan2013 Medium-

Term Management Plan, we

were able to generate robust

profits in the domestic market,

particularly in the stable O&M＊1

business. Our main issue for the

future is to realize new orders to

maximize profit by operational

improvements challenge steadily

linking demand for facility

reconstruction in Japan.

The new E-Plan2016 Medium-

Term Management Plan states

that our vision for 2019 is to "stand in a leading position in the

market in terms of market share, profitability, and business efficiency

for the construction and operation of waste incineration facilities in

Japan" and sets targets for the next three years. The plan specifies

two basic policies: (1) strengthen stable revenue base while

maintaining and expanding business opportunities and profit in the

domestic market, and (2) improve productivity and profitability by

improving business efficiency. In accordance with these policies, the

five following priority issues are identified.

① Maintain and increase the number of customers, sales, and income

in the Japanese market; ② reinforce field competitiveness through

area-based management and expand market share and range of

business fields; ③ raise competitiveness by standardizing incinerator

product and creating design packages; ④ reinforce the

competitiveness of Ebara Qingdao Co., Ltd. (a wholly-owned

subsidiary of Ebara Environmental Plant Co., Ltd. in China) as a key

component manufacturing base; and ⑤ increase competitiveness by

strengthening and expanding related businesses.

The area-based management referred to in item ② above is a

program for raising customer satisfaction by using our extensive

experience with operational management as a strength to propose

and carry out solutions that meet customer needs through

collaboration among various internal sections. I am confident that by

doing this, we will gain customer trust, expand the scope of our

outsourcing business fields, and secure orders from new customers.


Tetsuji FujimotoPresident

Environmental�Engineering�Company

HokkaidoPublic: 9

TohokuPublic: 10; Private 5

KantoPublic: 27; Private 15

KinkiPublic: 13; Private 3

ChubuPublic: 31; Private 11

Chugoku, ShikokuPublic: 19; Private 4

Kyushu, OkinawaPublic: 7; Private 2

EEP Deliveries in Japan (facilities in operation)

＊1：【O&M】��Operation�and�maintenance�including�operations,�management,�maintenance,�and�inspection.

Ebara Environmental Plant Websitehttp://www.eep.ebara.com/en/


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Environmental Engineering and the Needs of Society

Ebara Environmental Plant Co., Ltd. (EEP), which conducts environmental engineering, provides total services from waste incineration facility design and construction to operation, maintenance, and facility management. The business environment of the waste incineration business has changed substantially compared to before the 2011 Great East Japan Earthquake; disposal of debris caused by the earthquake is proceeding, but electric power shortages have given rise to increased interest in the utilization of waste for generating electricity, and there is new demand for development of waste incineration facilities positioned as regional disaster preparedness centers. Also, as local governments face difficult financial conditions, demand to extend the life of existing facilities so they can be used for longer periods for stable waste processing is rising. It was under these circumstances that in FY2013 EEP received multiple orders for facility construction and long-term facility operation projects (DBO＊1 projects) as well as numerous orders to perform construction extending the life of existing facilities.

Local Production for Local Supply by Using Waste to Generate ElectricityApproximately 25% of all waste incineration plants in Japan have electric power generating facilities. The total rated generating capacity is approximately 1,700 MW (according to General Waste Disposal and Treatment Conditions (FY2012), Ministry of the Environment). Japan is currently experiencing a shortage of electric power, and consequently, disposal facilities with generating facilities are attracting attention as distributed power sources. EEP is a Power Producer and Supplier (a PPS operator＊2) and is purchasing excess power generated by waste incineration facilities and returning it to communities, thereby playing a role in local production for local supply of electric power.The prototype for the local production for local supply scheme for electric power was the Warabi Toda Eisei Center in Saitama Prefecture, which was mentioned in the 2013 CSR Report. Operation and management of the Center is outsourced to EEP, and the total electric output of the Center is purchased by EEP and supplied to the city halls of Warabi City and Toda City and to seven elementary schools in Warabi City. In FY2013, EEP signed a new basic agreement concerning local production for local supply of electric power generated from waste with the Hirosaki Area Environmental Maintenance Association. The Association is a special district authority organized by Hirosaki City, Hirakawa City, Owani Town, Fujisaki Town, Itayanagi Town, and Nishimeya Village. The basic agreement entered into with the Association provides for purchase of the total electric output of two waste incineration plants in Hirosaki City whose operation and management is outsourced to EEP, supply of that power to facilities within the Association's territory including other waste incineration plants and sewage treatment facilities as well as a special district authority, the Hirosaki City Hall,

schools, and other facilities.EEP completed construction of an Environmental Center in Hiratsuka City, Kanagawa Prefecture under a DBO contract at the end of September 2013, transferred possession of the facility, and commenced a 20-year operating project in October. Under the project, general waste from Hiratsuka City, Oiso Town, and Ninomiya Town is incinerated and the heat produced is used to generate 5,900 kW of electric power, and power not consumed by the center is supplied to neighboring areas. All of the incineration ash is supplied to Chubu Recycle, an EEP subsidiary, and other ash recycling companies for melting and resource recovery.＊3 As a result, the facility does not generate any landfill waste and has achieved zero emissions.The fishery processing industry in Kesennuma City in Miyagi Prefecture suffered extensive damage from the 2011 Great East Japan Earthquake. As part of its recovery projects, EEP is cooperating as a PPS operator with efforts by a fishery processing industry association to rebuild Kesennuma as a smart city＊4 EEP purchases electric power generated from waste incineration plants in neighboring areas and supplies power to marine product processing plants affiliated with the association. Operations began in FY2013. A portion of the waste used to generate electricity is biomass, and therefore the generation of electricity from waste is carbon dioxide neutral with regard to the biomass portion, making the power much greener than thermal and other forms of electric power generation. By using this type of green power, EEP is contributing to reducing the carbon dioxide emissions of the city.By promoting the local production for local supply scheme in the generation of electric power using waste, EEP is supporting efforts to position waste incineration facilities as regional energy centers.

Continuously Meeting the Expectations of Customers

In response establishment to the EBARA Group business continuity management system (BCMS), EEP is also developing its own BCMS. The Business Continuity Management Committee chaired by the EEP president and the Disaster Management Committee, a subcommittee that undertakes specific action, are reviewing and developing an incident management plan (IMP) and business continuity plan (BCP)for responding to disasters.In FY2013, the EBARA Group introduced a system to confirm the whereabouts and safety of employees as a first response to disasters, and conducted a drill using the system. In particular

Signing�of�the�basic�agreement�with�Hirosaki�area�entities

＊1：【DBO】�Design,�build�and�operate.�A�method�whereby�a�public�body�raises�funds�and�outsources�design,�construction,�and�operation�to�a�private�company.＊2：【PPS�operator】�Power�producer�and�suppler＊3：【Resource�Recovery】�A�material�recycling�method�for�recovering�zinc,�copper,�nickel,�and�other�metals�from�waste�material.＊4：【Smart�City】�An�environmentally-conscious�city�that�efficiently�uses�electricity�and�maximizes�resource�savings�throughout�the�city�by�using�environmental,�informa-

tion,�and�other�technologies.27EBARA Group CSR Report 2014

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employees who conduct operations at facilities where the company provides operation services work in shifts, and many employees are dispatched to construction sites on a business trip basis, and as a result, making sure that their whereabouts and safety can be confirmed efficiently is essential for the subsequent continuation of business. The results of the drill showed that there are still issues to be resolved concerning the rapid confirmation of employee safety, and the company is currently making improvements.We are also creating a mechanism to report on the status of damaged facilities where the company provides operation services and creating systems for efficient recovery and other measures so that regional waste treatment can be continued even in the event of damage caused by an earthquake or other disaster. Development is proceeding for crisis management systems at facilities where we offer operation and facility management services in consultation with customers based on their approaches to measures during a disaster. Specific plans call for establishing a basic policy, implementing plant preparations, formulating plans, and conducting training and drills in anticipation of an earthquake with an intensity of five or greater on the Japanese scale, an accident such as a fire, explosion, or release of chemicals, or a forecast of a mass outbreak of a new strain of influenza. We are creating mechanisms for taking these actions and making continuous improvements at the approximately 70 facilities where we offer operation and facility management services nationwide.

Health and Safety Measures and Improving QualityThe company undertakes daily measures and conducts training and drills based on the idea of safety first to eliminate occupational accidents at all plant construction sites and facility operation sites. The company is working to establish a mindset where common sense such as conducting comprehensive training when starting work at a new site and prohibiting employees from working alone is accepted as a matter of course. An occupational accident that occurred in FY2013 at a worksite was used in training to identify the problem factors in the work that led to the accident occurred and for implementation of countermeasures in other sites, and in addition to checking manuals and procedures for the same kind of work, all work manuals were reviewed to determine if other work procedures also posed similar risks. As a result of these efforts, inadequacies in work manuals were reduced. In addition, a program was established where a team of specialists examine monthly reports from each worksite to determine if there are any technical issues present, and if there are, the team investigates countermeasures. These measures are expected to raise service operation quality and lead to higher customer satisfaction.Furthermore, standardization is being undertaken with regard to design, operations, and maintenance. Standardization of design was raised in the E-Plan2013 Medium-Term Management Plan covering the period until FY2013 with the aim of raising design quality. Standards for incinerator design were established and series were created for certain types and sizes. Further enhancements will be made to the design standards and the creation of series for all types and sizes will be completed in the future. Standardization of operating and maintenance technologies started in FY2013, and plans call for the process to

continue this fiscal year and later. These standardization measures will serve as a foundation for health and safety and raising quality, and EEP will implement a steady PDCA cycle of implementation and review.

CSR Action Plan for FY2014Under the Environmental Engineering Company FY2014 CSR Action Plan, the following measures are being implemented: (1) building a BCMS and establishing a scheme of its continual administration; (2) maintaining a system of crisis management at the facilities for which we undertake operational management under contract at about 70 locations nationwide and improving on the scheme continually; and (3) promotion of local production for local supply of electric power generated from waste.

I believe that in order to raise the quality of services and facilities where the company provides operation and facility management services, the most important thing is that problems that occur at the plant should not be handled solely by personnel at the site, but companywide support should be provided. Starting in FY2013, we made substantial improvements to our monthly reporting system to recognize in greater detail the operating status of the plant. The revised reports include information on waste treatment volumes, utility consumption amounts, and the environmental performance of its emissions as well as information necessary for preventing any deterioration of operational status.As a result of the improved monthly reporting system, we are now able to compare the operating status of all facilities where we provide operation and facility management services, and in cases where the information indicates that a problem is likely to occur, we can share the information with relevant divisions and provide support at the earliest possible time to prevent the problem from occurring.With regard to problems that are common to all facilities, we are preparing operating manuals on those problems that are caused by operating procedures, and with regard to problems that arise from maintenance issues, we are reviewing maintenance frequencies and methods. In addition, we are providing feedback to engineering departments concerning problems that arise from design to prevent reoccurrences and taking measures to build systems that can pursue better designs.I am confident that these measures will result in significantly higher service quality.

Kazuo Takano Deputy�Center�Manager

Technical�Center,�Ebara�Environmental�Plant�Co.,�Ltd.

Proactive Measures to Raise Service Operations Quality and standardize

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