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Page 1: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

January 17, 2008Motoo Mizumura, PresidentNEC Wireless Networks Ltd.

PASOLINKCompetitive “MONOZUKURI”

Page 2: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 2 © NEC Wireless Networks, Ltd 2008

■ Outline of NEC Wireless Networks

CONTENTS

・Role of NEC Wireless Networks in PASOLINK Supply Chain・Characteristics of PASOLINK Production ・History of Improvement of “MONOZUKURI Strength”

■ Competitive “MONOZUKURI (Production)”

Page 3: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 3 © NEC Wireless Networks, Ltd 2008

Outline of NEC Wireless Networks

Page 4: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 4 © NEC Wireless Networks, Ltd 2008

Corporate Name NEC Wireless Networks, Ltd.

Established December 1973 (NEC 100%)

Number of Employees 526 (as of December 2007)

Major Operations

Organization

President Motoo Mizumura

Production of Mobile & wireless telecommunication equipment ( Carrier Network BU )Control system terminals, etc. ( Social Infrastructure BU )

CertificatesAcquired

In October 2006

■Information securitymanagement

ISO:27001

■Environmental management

In October 1997

ISO:14001

■Quality management

In October 1992

ISO:9001

Page 5: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

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Major Products

ShieldPROShieldPRO(Robust PC)(Robust PC)

Factory Factory ccomputeromputerssWireless communication equipmentWireless communication equipment

BacBackkbone mbone microwaveicrowavecommunicationcommunication

eequipment quipment for for overseasoverseas marketsmarkets

PASOLINK series

Small-footprint Model FC-E21A

5000S

IDUIDU ODUODU

(WiMAX)(WiMAX)PasoWingsPasoWings

Page 6: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 6 © NEC Wireless Networks, Ltd 2008

Competitive “MONOZUKURI”

Page 7: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 7 © NEC Wireless Networks, Ltd 2008

PASOLINK Supply Chain

NECWireless Networks

131 countries★

NEC Wireless Networks

Sales

Development

RepairsMaintenanceetc.

ProductionProduction preparation

Procurement Shipment

Distribution Customers

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Page 8 © NEC Wireless Networks, Ltd 2008

Characteristics of PASOLINK Production

Characteristics of Wireless Telecommunication Equipment- Designed for various radio frequency policies in any country or region- High reliability as network infrastructure

PASOLINKseries Radio frequency

Transmission capacityInterface

System needs of each customer

× ×

Lineup of over 1,000 product types !

Production byBTO

~Flexible production based on orders reflecting various customer needs~

Page 9: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 9 © NEC Wireless Networks, Ltd 2008

Market Requests

Urgent Urgent demanddemandShorteShorterr lead timelead timess

High ReliabilityHigh ReliabilityHigh QualityHigh Quality Cost ReductionCost ReductionBroad LineupBroad Lineup

AsiaAsiaEuropeEuropeLatin AmericaLatin AmericaOthersOthers

:: 2~4W2~4W:: 2~3W2~3W:: 4W4W:: 4W4W

CustomerCustomer needs inneeds inemergencies emergencies 2W2W

Strengthen competitivenessStrengthen competitiveness UncoverUncover new customernew customerss

HighHigh--Speed & Flexible ShippingSpeed & Flexible Shipping

Page 10: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 10 © NEC Wireless Networks, Ltd 2008

Strength of PASOLINK Business

MONOZUKURI StrengthMONOZUKURI Strength

SalesSales

DevelopmentDevelopment ProductionProduction

Sales/Development/Production“Trinity” management QualityQuality::OutstandingOutstanding qualityquality

CostCost::CCostost reduction exceedreduction exceedfalling falling pricepricess

DeliveryDelivery ::Quick & flexibleQuick & flexible

PASOLINK’s advantages

Cope with needs through flexible production based on orders

Page 11: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 11 © NEC Wireless Networks, Ltd 2008

【【As of JanuaryAs of January 20022002】】【【As of JulyAs of July 20012001】】

◆◆lineline--lengthlength 25m25m

【【NowNow】】

◆◆lineline--lengthlength 8m8m

<PASOLINK ODU line>

Production Line Reforms

Page 12: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 12 © NEC Wireless Networks, Ltd 2008

History of Improvement of 「MONOZUKURI Strength」

2001 2002 2003 2004 2005 2006 2007

PASOLINK unit production

①Production line innovation

② Inline automation equipment

③ Development / production collaboration

④Procurement innovation

Expand business improving together with MONOZUKURI Strength

Adopted Toyota Production System in 2001

Page 13: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

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◆◆ lineline--lengthlength 25m25m

◆◆ lineline--lengthlength 8m8m

<PASOLINK ODU Line>

1.Line Innovation Activity(1)

General Productivity Improvement by

Production Innovation

Evolve autonomously everyday

【【As of JulyAs of July 20012001】】【【As of JanuaryAs of January 20022002】】

【【NowNow】】

Flowing

Page 14: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

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1.Line Innovation Activity(2)

1.Flowing

Build the cost price and quality in lineBuild the cost price and quality in line

2.Mixing

4.Abnormal Stop

3.Standard Operation

- No-backset smooth work- Thoroughly eliminate inefficiencies

- Stop operation in case of any problem → prevent defects from spreading on

SelfSelf--directivedirectiveeevolutionvolutioneverydayeveryday

- Same rhythm, same outcome by everybody

-Achieve flexible, mixed production

Page 15: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

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2. Introduction of In-line Automated Facilities

Standardized operations Clocklike stream

Small automated facilitiesfor manufacturing & testing

■ Improvement on the second time scale■Creation by line operators themselves■Cooperation with special technicians■Low-cost & small facilities■Quality enhancement

~Hands-on activities of manufacturing & PE sections~

Page 16: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

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Line Creator

0

50

100

150

200

2004 2005 2006 2007

[Employees]

Production Engineering Dept.

Line Creators

Classroom lecture

Line creators:production workers with facility development skillswho can design production facilities by themselves

Facility Development Resources

Complete Training System

Practical Training

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Page 17 © NEC Wireless Networks, Ltd 2008

3.Development/Production Collaboration

■Standardization at design phasefocusing on “MONOZUKURI”

- Line standardization by common platform design- Reduction in electron element number etc.

■Close collaboration between designengineers and production operators- Feedback to designers from line workers- Upper design aims for easy manufacturing

・Front Loading・Quality enhancement・Cost reductions exceeding price declines

Page 18: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

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4. Procurement Innovation

■High flexibility through close cooperation with suppliers

■Reduction of parts variety

■Just-in time procurement fully utilizing the “Kanban” system

Stable procurement supporting highly mixed BTO production

■In-house production of core parts

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Page 19 © NEC Wireless Networks, Ltd 2008

「Just In Time」 Procurement System

Just In TimeJust In TimePASOLINK LinePASOLINK Line

Complemental Demand(Order)

Close cooperation with supplierthrough information sharing

SupplierSupplier

Procurement Store

On time fixed route

‘Mizusumashi’

Fill-up as much as used

On time fixed route

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MIC

■ Core technological PASOLINK part ■ Sophisticated manufacturing know-how

with fine processing capability

ODU

Microwave Integrated Circuit

Highly mixed InHighly mixed In--house production & stable productionhouse production & stable production

In-house Production of Core Parts

Core PASOLINK Part

A part of ODU

Page 21: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 21 © NEC Wireless Networks, Ltd 2008

■Outstanding Quality■Cost Competitiveness■High-Speed Shipping

Sales/Development/Production “Trinity” ManagementAs Industry Frontrunner

“MONOZUKURI Strength” Continuing Evolution

SelfSelf--DDiirecrectedtedEvolution Evolution EverydayEveryday

Page 22: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 22 © NEC Wireless Networks, Ltd 2008

A Culture of Continuous Improvementis the strength of NEC Wireless Networks

We now see the next crest . That’s our next target!

Next target is the crest seen from here!

Targeting!!

Targeting!!

Our next target isstill ahead !

Targeting!!

Reaching for exciting new targets together

A culture in pursuit of self-directed& continuous improvement

Page 23: PASOLINK Competitive “MONOZUKURI” January 17, 2008 ... · IDU ODU (WiMAX) PasoWings. ... PASOLINK Supply Chain NEC Wireless Networks 131 countries ... Lineup of over 1,000 product

Page 23 © NEC Wireless Networks, Ltd 2008