AKEBONO REPORT 2012

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AKEBONO REPORT 2012 Akebono Brake Industry Co. Ltd. 9Special Feature Social Repor t Environmental Repor t Economic Repor t Reference MaterialsAddressing Management Issues Needing BCP CoverageWe identified the management issues that had come to light because of the Great East Japan Earthquake summarizing them as eightmanagement tasks and promoting a number of initiatives to address them. Looking ahead we will formulate a new BusinessContinuation Plan (BCP) to tackle these management tasks.Volunteers Speak UpVOLUNTEERS DISPATCHED FROM THE LABOR UNIONSeeing the severe situation I wasonce again determined to continuouslysupport the restoration with aspirit of cooperation.By seeing the actual devastatedarea I learned things that could notbe seen through the media.Through hands-on experience in volunteeractivities I learned much. Iwould love to participate in suchactivities again.I was moved by the words of appreciationvoiced by afflicted people.I appreciate the understanding andsupport I received from the companyand the union with regard to my volunteeractivities.FukushimaManufacturingQualityAssuranceDivisionApplicationDevelopmentDivisionIwatsukiManufacturingAlocsCorporationYoshinori HagiwaraTsuyoshi Kurohiji Yoshinori KuritaTakeshi Arai Kyoji Nakamura●Introduction of Backup Power FacilitiesIn August 2011 backup power facilitieswere installed at Ai-City and YamagataManufacturing. Facilities installed atAi-City use natural gas and those atYamagata Manufacturing use heavy oil each generating 5 750kW. The total generatingcapacities of these facilities correspondsto 40% of Akebono’s domesticelectricity consumption at its peak in fiscal2010.●Supply Chain Maintained by AkebonoWe received the “Above and BeyondAward” from NACCO Industries Inc. thelargest manufacturer of forklifts in NorthAmerica. The award was given forAkebono’s rapid recovery of its supplycapability following the Great East JapanEarthquake and prompt implementation ofmeasures for risk avoidance. In addition we received a letter of appreciation fromNissan Motor Co. Ltd. as a supplier thatgreatly contributed to recovery of productionactivities after the earthquake.●Record of the Damage SituationAt Fukushima Manufacturing we producedDVD with recordings of damage in thedevastated areas. A diorama that replicatesdamage situation of the provinggrounds of the test course (Iwaki City Fukushima Prefecture) is also exhibited onthe premises.Management Tasks Identified after the EarthquakeTasks InitiativesReview crisis managementstructure? Review framework of crisis management project (review of disaster response manuals based on the risk situations identified through the earthquake andcountermeasures implemented against them)*incorporate the unprecedented conditions (radioactive pollutions disasters other than earthquake and overseas relocations)? Appoint crisis management leaders clarify crisis management structure and responsibility of each personnelClarify roles and responsibilitiespursuant to position? Clarify roles and responsibilities of top management ensure swift cooperation between sections clarify roles and responsibilities pursuant to positionand provide a support structure for administrative functions including logisticsVisualize working conditionsof associates? Visualize working conditions (attendance absence and business trips): establish systems to perceive update and share information on working conditionsat the individual associate levelEnsure promptcommunication? Collect information on in-house and external conditions including the situations of customers to forecast order trends in the medium and long-term? Collect information from external information sources (the Ministry of Economy Trade and Industry Japan Auto Parts Industries Association etc.)? Establish structures for the control and sharing of information appoint responsible persons to locations by function to facilitate communicationReview purchasing? Review existing purchasing structure for parts and materials (avoiding overconcentration in a given region and accelerating local procurement)? Review energy procurement methods including the implementation of energy consumption reduction and develop backup power systems? Improve compatibility of products (Japan and overseas)Reform production systems? Reform global production systems (avoiding the overconcentration of factories and products in any given region) establish administrative functions thatcontrol entire factories? Promote exhaustive “just-in-time lean inventory”(checking current situation and maintaining stock in accordance with production capability of each factory)Review and augmentfacilities? Assess earthquake resistance at facilities and entire factories implement countermeasures against vulnerability? Plan facilities for emergencies (evacuation shelters and rest houses)? Establish a back up location for the Response Headquarters (other than buildings)Set up countermeasuresagainst urgent disasters? Review the emergency communication network (introduction of satellite phones and other communication methods for enhancement of quality and quantity)? Review tools for accessing information? Develop emergency-contact networks for all associates as well as a method of confirming the safety of associates and their families and adherence toprescribed communication methods? Create system for emergencies including layoffs buses for commuters and accommodation? Prepare Disaster Response Manuals at the head office (countermeasures against regionally specific disasters)Michael E. Rosberg vice presidentof NACCO visited SanyoManufacturing (October 27 2011) DVD “Recovery and Restoration in the Aftermath ofthe Great East Japan Earthquake”A letter of appreciationfrom NissanThe Japanese Trade Union Confederation is holding continuous volunteer activities in Fukushima Miyagi and Iwate prefectures fromMarch 31 2011. Five Akebono associates participated in these activities cleaning up drifting garbage from the devastated areas.Construction of backuppower facilities(YamagataManufacturing)Backup power facilities beinginstalled (Ai-City)

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