Feature 1 Responsibilities for manufacturing critical components for cars produces crucial components for automobiles, wire harnesses and related parts around the world. The first feature showcases Yazaki’s wire harness business, and outlines its commitment to employee training and management improvement globally in order to satisfy stringent quality and delivery requirements by automobile manufacturers.

Global Production of Wire Harnesses Yazaki supplies wire harnesses to auto makers around the world. With more than 200,000 employees in 38 countries, we have also established R&D and production facilities.

Factories Sales outlets R&D facilities Offices

9 YAZAKI ● Social & Environmental Report 2008 as awireharness supplier,initspursuitofthe market leaderinthewireharnessbusiness. to overcominganyhurdlesremaininga adhering tothehighestqualitystandardsbut needs. Wearecommittedtonotonly for quality,Yazakihassatisfiedcustomers’ By establishingevenstricterinternalstandards high qualityrequirementsforwireharnesses. performance. Automakers,therefore,setforth vehicle’s basicperformanceanditssafety automakers. harnesses andotherpartstooverseas sites in38othercountriesandsupplieswire wire harnesses.Yazakialsohasproduction of allvehiclemodelsinJapanuseYazaki all automakersinJapan,andmorethanhalf in 1939.Itswireharnessesarenowusedby visible, extendtoeverycornerofthecar. design. Theseelectricalwires,althoughnot them tobeinstalledaccordingthecar’s electrical wiresanddatacircuits,allowing compactly bundlethismassivenumberof weight of50kgormore.Wireharnesses total lengthofmorethan7,000metersanda approximately 3,000wirecircuits,withthe about 20kg.Aluxurypassengercaruses wires canreach2,500meters,weighing combined totalextendedlengthofthese approximately 1,000wirecircuits,andthe speaking, asmallpassengercarneeds performance ofthesecomponents.Generally are allconnectedbywires,ensuringbasic controlled. Electronicdevicesandparts engines, gaugesandlights,areelectronically a keytobeingsupplier ofchoice Addressing environmental issues, are essentialtosafetyandperformance of thehighestqualityforproductsthat Working withautomakersinpursuit Yazaki has taken pride, throughout itshistory Yazaki hastakenpride, throughout Wire harnessesareessentialtobotha Yazaki firstbeganproducingwireharnesses Many componentsinmoderncars,including CO weigh less.Lightweightvehiclesemitless the weightofwireharnesses,makingcars to certifyourcompliance. and submitsreportstoautomakersregularly system toeliminatetheiruseinourproducts has establishedastringentmanagement restrict theuseofcertainchemicals.Yazaki other nationshaveenactedregulationsto considerations seriously. (environment), aswetakeenvironmental delivery). Inrecentyears,weaddedE basic threeelements,QCD(quality,costand them. business ofeducatingthepeople whomake Yazaki: tomakeproducts istobeinthe This commitmentisrootedinacredoat feel leadership positionsand,atthesametime, workers’ and educationalprogramsfosters world toimprovetheirskillsthroughtraining to beingagoodneighbor. policies emphasizesthatYazaki′scommitment they op provided employmentinthecommunities functions areaddedyearafteryear. harnesses keepsincreasingasmorevehicle as thenumberofwirescontainedinwire of limitedspaceforwireharnessesinacar, Thinner wiresalsohelptosolvetheproblem still withstanduseinrigorousconditions. wires withthediameteroflessthan1mmthat developed technologythatproducesthin emissions intotheenvironment.Yazakihas and contributingtocommunities Creating jobs,trainingemployees, Yazaki hastackledthechallengeofreducing To preservetheenvironment,EUand Yazaki assistsemployeesaroundthe Yazaki’s wireharnessfactorieshave 2 , therebyfurthercontributingtolowering motivated andfindpleasureinworking. erate in.Oneofoursocialresponsibility development sotheyassume YAZAKI ● Social&Environmental Report 2008 10

Special Feature 1 Special Feature 1 11 YAZAKI Automotive PlanningDivision General Manager Senior ManagingDirector, Masashi Yamashita REACH *2 ELV directive *1 Restriction ofChemicals: Authorisation and Registration, Evaluation, hexavalent chromium. cadmium, mercuryand automobile makers:lead, of foursubstancesby in July2003,banstheuse (ELVs), whichtookineffect End-of-Life vehicles The ECdirectiveon substances. associated withchemical manage therisks importers toassessand and manufacturers force in June 2007, requiring regulation enteredinto ● Social&Environmental Report The contain costincreases.Tomeetthischallenge, made itdifficulttopurchasecopperand is amainwirematerial.Thepricehikehas stable supplyofwireharnesses,sincecopper years hasposedagraveconcerntoour challenges globally. illustrate howwehavetackledrecent establishing globalmanagementsystems. ensure astablesupplyofpartstranslatesinto and expandedgloballysothatoureffortsto flow hastranscendednationalboundaries and stablesupplyofourproducts.Ourwork responsibility toourcustomersistheconsistent automotive partssupplier,thecrucial taking anattention-to-detailapproach.As challenge tomeeteachoneoftheirneedsby differ accordingly.WeatYazakibelieveita Their needforandexpectationsofsuppliers globally, whileotherfocusoncertainregions. strategies andoperations.Someoperate in ourroleasaglobalsupplier We takeonourresponsibilitytosociety The copperpricesurgeinthepastfew I wouldliketodiscusssomeactivitiesthat Our customers,automakers,varyintheir 2008 we havesetupnetworksin collaboration withvarious departments around the world toshareprice information, streamline purchasing channels, and revisepurchasing contracts. Wehave also redesigned wire also redesigned harnesses touse less copper,as reduce CO in theEU. materials andpartsforourproductionbases overseeing thesmoothsupplyofthose are compliantwithREACHregulations,and made intheU.S.,JapanandSoutheastAsia responsible forensuringmaterialsandparts FY2007, theneworganizationhasbeen and systemsonaglobalbasis.Beginningin to managegroupwidesupplychaininformation established anorganizationandasetofrules including ELV them inmanufacturingprocesses. well asreducedcopperwastesorreused further promoteCO established fiveregionalorganizationsto Corporate Policy. this simpleideawillleadus tolivingbyour do business.Ibelievehonestly thatfollowing cultures andpeoplesinthe places wherewe listening tocustomersandrespectingdifferent also stressthesignificanceofcarefully environment andcompliance.Lastly,letme without compromisingthreeissues:safety, in whyourcustomerschooseYazaki. factor willincreasinglyplayanimportantrole cost, delivery),becausewebelievetheE (environment) togetherwithQCD(quality, environmental efforts.WewanttoaddE we plantogoastepfurtherwithour essential andcertainlyresponsibleactions, setting goalstopreservetheenvironmentare working toward. groupwide reductiongoalsthatallregionsare Yazaki hasbeenengagedineffortsto In compliancewithEuropeanregulations The YazakiGroupcontinuestooperate While formulatingguidelinesandrules 2 fornearly10years.Wehave *1 andREACH 2 reductionandset *2 , wehave make. Thenyouwillhavemore motivated leave themtofigureout what changeto suggest thatachangemust bemadeand growth wither.Abetterway istosimply good, andtheirinnovationpersonal workers cannotcomprehendwhythat’sno way,” andshowhowitshouldbedone.The cannot justsay,“that’snogood;doitthis for cars. that wearemakingverycriticalcomponents come fromresponsibilityandprideinthefact manufacturing. Thecoreofthatheartshould crucial thattheyalsoputtheirheartsinto Teaching skillsisnotenough,andIbelieveit’s seek tomakefurtherimprovements. meanings ofthetaskstheyaregivenandto workers totryunderstandthegoalsand advice derivesfrommyownexperience. sympathy andconsideration.Thispieceof communicate withtheirsubordinates,using humbleness. Ialsoencouragethemto countries andemphasizetheimportanceof given theopportunitytoworkinforeign managers nottoforgetthatit’stheywhoare locally hiredemployees.Ialwaystellthose are oftenassignedtoprovidetraining for Yazaki. mean bytheheart,anddiscussafuturevision harnesses. Iwanttoelaborateonwhat isrequiredtomakewire heart” that “the words, itbecomesimportanttoremember means humanresourcemanagement.Inother manual labor.Qualitycontrol,therefore, harnesses areproducedpredominantlyby not onlytheskillsbutalsoheartthatcomeswiththem Putting heartintomakingwireharnesses.We passon To effectivelymotivateworkers,amanager On theotherhand,Ialsoadviselocal In overseasplants,Japanesemanagers Except forafewautomatedprocesses,wire we dobusiness. incommunities which and needed by corporation welcomed Yazaki togrow a as development, and helping employee fostering wiremaking harnesses, putting into our hearts another country. trained inonecountrymovetotrainothers vision becomingareality,assomeleaders operated. Thesedays,webegintoseethat around theworldwillbeautonomously pass on:theheartthatcomeswithskills. her story.ThisispreciselywhatImeantto home. Ialmostjumpedwithjoywhenheard recycling, shewantedtointroducetheideaat the importanceofwastemanagementand the Philippines,but,shesaid,after factory. Thereisnosuchpracticeathomein the sortingoutofwastesandrecyclingat sorting outwastesathome,afterpracticing she beganeducatingherchildrenabout Philippines, afemaleemployeereportedthat internalized. actions oncegoalsandmeaningsare nature: peoplewillinnovateandtakepositive I continue to advocate the importance of toadvocate theimportance I continue I envisionthatYazaki’s When Iworkedinafactorythe workers withgrowthpotential.It’shuman wire harness realizing YAZAKI plants ● Social&Environmental Report Management Division Automotive W/HProduction General Manager Senior ManagingDirector, Kazuhiko Fukukawa 2008 12

Special Feature 1 The discussion was held at the entrance hall in the World Headquarters, surrounded by a biotope garden.

Feature 2 Working together at Yazaki

Thanks to the recruitment policy at Yazaki, employees from a diverse array of backgrounds and nationalities work together. Several employees, who have seldom encountered each other through work, sat down recently to talk about issues of generations of diversity.

What matters most in it takes a long time to develop a seasoned interpreter, I came to believe that a central manufacturing wire harnesses task of the factory manager should be retaining a talented interpreter. Yoshinaka: When I was working in Gu: When communicating policies and Europe, Yazaki had just begun expanding its ideas from our quality control division to offices there. It was hard to grasp what our Chinese colleagues, mere translation from customers wanted, since cultures and Japanese to Chinese didnʼt suffice, but business practices differ from us and from “cultural” translation that included interpreted one country to another. Repeated face-to-face background information, was necessary to discussions finally broke the ice, and I was convey true intentions. I feel that Yazaki sometimes even able to read between the employees from different countries and lines of what was being said. departments exchange frank and open Takahashi: I was assigned to work in a dialogue in the workplace. It is a good factory in Thailand in 2000. I was surprised corporate culture. that Thai employees closely observed Asyikin: I became interested in wire working relations among the Japanese staff. harnesses when I was studying in a technical This made me see that good working college in . My current job is to convert relationships among Japanese reflected the specification data from automakers and send performance of the factory. The role of an it to our factories, which requires understanding interpreter is also a key to success. Although both our work and our customersʼ work. I am

13 YAZAKI ● Social & Environmental Report 2008 responsible for factories in the Philippines, and I not only communicate by email but What kind of person is “kokusaijin” speak on the phone with representatives (an internationally-minded person)? there to ensure they understand converted data. Yoshinaka: A person who understands Conrad: Itʼs been two years since I came othersʼ views. When capable of putting your to Yazaki in Japan, and I occasionally feet into othersʼ shoes, one can communicate encounter cultural differences. In Japan beyond cultures. everyone follows corporate decisions without Takahashi: A person who respects others hesitation, so that the startup is quick, but as fellow humans. sometimes itʼs questionable if everyone Gu: A person who is capable of listening to understands the goals. Americans usually other opinions with respect from the bottom donʼt start anything until everyone of the heart. understands the goals, since they presume Asyikin: In addition, that person clearly everyone has different opinions. Once states his/her opinions. everyone shares the goals, changes are Conrad: We all strive to build good made fast. Since Yazaki operates globally relations despite commonly felt gaps in and goals and policies must be shared communication. I would add to Mr. everywhere, the way they are pursued Yoshinakaʼs comment on the globalist – a should be customized to each country or person who doesnʼt stop learning and division. thinking of the future.

Developing corporate culture What is important for working together while for the future at Yazaki? recognizing differences Takahashi: Yazaki faces the challenge of Takahashi: I was a foreigner in Thailand, raising its technology levels. Another area of so I followed the old saying: “When in Rome, importance is human factors in labor do as the Romans do.” Buddhist influence is relations overseas. seen in that country, and they listen to the Gu: I believe itʼs important to pass on national anthem twice a day. I believe we Yazaki DNA to new employees and nurture work together well when assignees from collaboration among employees worldwide. Japan appreciate working in that culture. Ashkin: Lightweight wire harnesses can Conrad: Americans recognize differences among people, since they think itʼs ok to have be used for environmentally friendly Special Feature 2 Special Feature different ways of doing things as long as purposes, including applications in electric common goals are reached. vehicles, and such research should be Gu: Compared to Americans, I believe enhanced. Chinese thinking is closer to Japanese. Many Conrad: By capitalizing on its resources realize the importance of bridging differences around the world and adopting the best through frank discussions, since manufacturing from different places without minding quality not improve unless common goals precedent, Yazaki will grow to become a are shared and differences reconciled. stronger company.

Hideki Yoshinaka Masayuki Takahashi Longlong Gu Nur Asyikin David Conrad Manager, European Manager, Asia-Oceania Second Quality Management 1st Development & Design Manager, Logistics Division Department, Production Coordination Department Department Global Logistics Department, Automotive Planning Division Division Quality Management Division Renault- Business Unit Automotive Wire Harness EEDS R&D Division (W/H) Production Management Division

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