K-Way e-learning_History_rev3_GTI FY21

1. K-way e-learning_History_E

1.1 Start

Notes:

In this e-learning, you will learn the KOMATSU Way by looking back on Komatsu’s

history.

1.2 Contents

Published by Articulate® Storyline www.articulate.com

Notes:

In this course, you will learn about three aspect of the KOMATSU Way - 1. History of

Komatsu, 2. Why do we need the KOMATSU Way? and 3. What is the KOMATSU

Way?

2. History of Komatsu

2.1 Contents

Notes:

We will first learn how the KOMATSU Way was established as our corporate culture.

What are the roots of Komatsu’s strengths? How did Komatsu overcome its

difficulties and keep growing until now?

We can find these answers by looking back on our history.

The following video sums it up well.

Published by Articulate® Storyline www.articulate.com

2.2 History video

2.3 Foundation

Notes:

As shown in the video, the course of Komatsu’s history never did run smoothly.

Komatsu was founded in Komatsu City in Ishikawa Prefecture in 1921.

The founder, Meitaro Takeuchi was a man of foresight.

He founded Komatsu Ltd. on his corporate philosophy “Industry is the foundation

that enriches the nation.”

Published by Articulate® Storyline www.articulate.com

He also established The Guiding Principles - Quality First, Technological Innovation,

Global Expansion, and Employee Development.

Today, the principles remain as a part of our Komatsu DNA.

2.4 History of Komatsu

Notes:

This figure represents the Komatsu history from after World War Two to today.

We are now a global company, but the course of Komatsu’s history was a series of

hardships.

Komatsu faced difficulties and always overcame them in the past.

That’s how Komatsu became stronger.

Komatsu is still growing even now, but there were four historic events that made

Komatsu stronger: Project A, Project B, the First Structural Reform, and the Second

Structural Reform.

We will study each historic event and understand how our predecessors overcame

the difficulties, what they learned, and how they passed it on to the next generation.

Published by Articulate® Storyline www.articulate.com

2.5 Project A

Notes:

Project A was implemented to ensure our survival in the Japanese construction

equipment market.

In the 1960s, due to the trade liberalization, Komatsu had difficulty surviving in the

market as Caterpillar Inc. launched their first plant in Japan.

2.6 Project A

Notes:

Published by Articulate® Storyline www.articulate.com

Yoshinari Kawai, the president at the time, started some activities to be more

competitive with Caterpillar.

He introduced TQC (Total Quality Control) and improved mid-sized bulldozers’

quality and functions to improve our inherent reliability.

This is called Project A, the first turning point in Komatsu’s history.

After investigating Caterpillar’s bulldozers thoroughly and through trial and error

with all departments involved, Komatsu succeeded in developing more durable

bulldozers and increased customer satisfaction.

Through Project A, our corporate culture, such as All Involved, PDCA, and “Gemba”

Philosophy was established.

2.7 Project B

Notes:

Next, we will learn about the second challenge, Project B.

Published by Articulate® Storyline www.articulate.com

Project B was implemented to allow us to be more competitive in the worldwide

market by recognizing different use in other countries.

In the early 1970s, bulldozers which are durable with shorter breakdown time were

popular.

To respond to these needs, we focused on not only product quality, but also on “use

reliability”.

2.8 Project B

Notes:

In this project, to feedback machine data from the market to the R&D division, large-

scale market research was conducted by all involved.

We also improved our sales and service system used for selecting appropriate

machines and rapid repair.

As a result, Komatsu succeeded in developing globally-competitive bulldozers.

This was Project B.

Published by Articulate® Storyline www.articulate.com

Through Project B, our corporate culture “Commitment to Quality and Reliability”

was established.

Project B was horizontally deployed with Project C for wheel loaders, Project D for

hydraulic excavators, and Project Q for dump trucks.

2.9 The First Structural Reform

Notes:

Even after Project B, QC activities continued.

However, QC activities in Komatsu were drastically reduced from 1988 as QC

activities were discontinued in all divisions except Production Division.

This is what we call “QC stagnation”.

Meanwhile, Komatsu entered other areas, such as the electronics business in order

to diversify its businesses.

However, the slump in the mining equipment market combined with the bursting of

the Dot-com bubble resulted in Komatsu’s first deficit in 2001.

To recover from this deficit, Masahiro Sakane, then president, revived QC activities

targeting all divisions and implemented reforms.

Published by Articulate® Storyline www.articulate.com

This was the third turning point, the First Structural Reform.

2.10 The First Structural Reform

Notes:

Mr. Sakane started the First Structural Reform with four key terms: visualize

management, separate the costs from the growth, reinforce strengths and shore up

weaknesses, and first and last “surgery”.

Analyzing Komatsu’s revenue data, he found that Komatsu’s weakness was that its

capacity cost was higher than the competitor, almost the same percentage as the

difference in operation profit margins.

Accordingly, he reduced capacity cost in order to overcome the difficulty of

generating operating profit.

While shoring up weaknesses, he also implemented reforms to reinforce strengths.

One of these was to introduce DANTOTSU products (unique and unrivaled products).

Published by Articulate® Storyline www.articulate.com

Although we reduced capacity cost, we didn’t cut back on research and development

expenses.

Focusing on developing DANTOTSU products featured in environment, safety, and

ICT that competitors did not catch up with over the next few years, we were able to

develop more than a dozen DANTOTSU products.

We succeeded in improving our strengths and reforming our weaknesses.

As a result, both sales and operation profit recovered in a V-shape the following

year, and both sales and profits increased.

2.11 The Second Structural Reform

Notes:

Sales and profits continued to increase after the First Structural Reform.

However, due to the Great Recession in 2008, sales and profits declined.

Published by Articulate® Storyline www.articulate.com

2.12 The Second Structural Reform

Notes:

To further reduce capacity costs, we reorganized our plants and distributors.

We promoted global cross-sourcing, such as building a flexible production system

and optimizing our sales, production and inventory supply chains in order to

respond to market fluctuations.

This is the Second Structural Reform, the fourth turning point.

Published by Articulate® Storyline www.articulate.com

3. Why do we need the KOMATSU Way?

3.1 Contents

Notes:

Next, we will learn “Why do we need the KOMATSU Way?”

3.2 Manufacturing Strategies

Notes:

As we learned in the previous chapter, Komatsu has grown as a global company

through four turning points.

Published by Articulate® Storyline www.articulate.com

Through the basic strategy of assembling in regions with higher market demand,

Komatsu now has 25 assembly plants throughout the world and continues to

expand the number of plants.

3.3 Komatsu employees

Notes:

The number of overseas employees has been steadily increasing as a result of

global growth.

At the end of March 2010, the ratio of overseas employees was 50% or more, and

the number of overseas employees exceeded that of Japan.

In 2019, the ratio of overseas employees increased to 67%, partly due to the

integration of Joy Global Inc.

In other words, in less than 10 years, the number of employees who have less

experience at Komatsu and who have different cultures and customs has increased

significantly.

Published by Articulate® Storyline www.articulate.com

3.4 Importance of sharing the KOMATSU Way

Notes:

Since we have employees of different cultures and customs, we need a common set

of values to work towards the same direction.

The KOMATSU Way was created to share common values.

This figure shows the importance of sharing the KOMATSU Way.

Suppose that Mr. A and Mr. J were newly recruited to different groups and started to

work together for a single task.

They should work towards the same direction, but if those who have less experience

at Komatsu, they may not know what decisions and actions they should take as an

employee of Komatsu, and that may result in making decisions and taking actions

based on individual standards that they have cultivated over the years.

In a worst case scenario, they might not achieve the expected results, they might

end up with poor teamwork, or they might take too long to achieve the expected

results.

Published by Articulate® Storyline www.articulate.com

Therefore, the KOMATSU Way is required to ensure that all employees have the

same standards of judgment as Komatsu employees and can make similar decisions

and actions.

4. What is the KOMATSU Way?

4.1 Contents

Notes:

In the next chapter, you will cover “What is the KOMATSU Way?”

To understand and practice the KOMATSU Way, we will explain the definition and

purpose of the KOMATSU Way.

Published by Articulate® Storyline www.articulate.com

4.2 Definition and purpose of the K-Way

Notes:

The “way” in the KOMATSU Way generally means these things.

Other companies have also established their respective philosophies in terms of

way, spirit, and value.

When expanding a business globally, they help employees with different culture and

customs understand the corporate culture and values.

In Japan, many global companies have started expressing their respective values

since the 2000s.

Following the founding principles and family precepts, some companies explain

them in easy-to-understand expressions for their employees.

Foreign companies have been actively sharing their corporate values since the

1980s, 20 years earlier than Japanese companies.

Published by Articulate® Storyline www.articulate.com

4.3 Definition and purpose of the K-Way

Notes:

So, what is the KOMATSU Way?

The KOMATSU Way was created based on the experience of our predecessors,

which will be passed on through the generations to all employees worldwide.

The KOMATSU Way guides employees in the same direction by bringing Komatsu’s

strengths, the Beliefs supporting the strengths, the Basic mindset and perspectives,

and the Behavior to demonstrate those strengths, beliefs, and mindset into action.

In order for Komatsu to grow further, we all should share common values and align

the direction.

Accordingly, the KOMATSU Way is translated into 13 languages.

Published by Articulate® Storyline www.articulate.com

4.4 Definition and purpose of the K-Way

Notes:

What does the spread of values bring about?

As values, such as the KOMATSU Way spread, firstly they establish a core policy to

act on, then that core policy becomes the strengths of the company, and that sense

of unity guides us to the correct direction.

That’s why the KOMATSU Way is important, and we need to make the KOMATSU

Way spread throughout the company.

Published by Articulate® Storyline www.articulate.com

4.5 How the K-Way relates to our management philosophy

Notes:

“The correct direction” in the previous slide corresponds to the Management

Philosophy in the KOMATSU Way.

The cornerstone of Komatsu’s management philosophy is to commit ourselves to

quality and reliability in order to maximize the sum total of the trust given to us by

all stakeholders and society.

Let us visualize the KOMATSU Way as the foundation to achieve our Management

Philosophy.

The foundation is composed of Leadership/Top Management, “Monozokuri” and

Brand Management.

They are the main chapters of the KOMATSU Way and are also related to Komatsu’s

three core activities.

The Leadership/Top Management chapter covers ESG (Environmental, Social, and

Governance) activities, the “Monozukuri” chapter covers TQM (Total Quality

Published by Articulate® Storyline www.articulate.com

Management) activities, and the Brand Management chapter covers Customer Value

Creation activities.

The Brand Management chapter is highly important in gaining customer satisfaction.

We should continue creating value through DANTOTSU products, DANTOTSU

services and DANTOTSU solutions.

Moreover, in order to meet changing customer needs, these DANTOTSU products,

services and solutions must be continuously developed and innovated.

4.6 Contents and each chapter's aim

Notes:

The KOMATSU Way consists of three chapters, Leadership/Top Management,

“Monozokuri” and Brand Management.

The Leadership/Top Management chapter describes attitude and code of conduct

required for top management and leaders in each division of Komatsu group

companies.

Published by Articulate® Storyline www.articulate.com

We would like them to take the initiative and put it into practice.

The “Monozukuri” chapter summarizes the attitude, viewpoint, and values based on

the experience of our predecessors, and categorizes them into seven principles.

We would like all employees to put them into practice, and pass them to the next

generation.

The Brand Management chapter describes the concept of the customer value

creation activities which are required for Komatsu to grow and become

indispensable to customers.

We would like all employees to understand and put it into practice.

4.7 Practicing the KOMATSU Way

Notes:

Lastly, we would like to express our expectations to all employees.

Published by Articulate® Storyline www.articulate.com

Please understand Komatsu’s strengths and values and practice the KOMATSU Way

whenever you can during your daily operation.

By practicing it, you will understand the meaning of the words and importance of

the KOMATSU Way.

The first step is to put it into practice!

Keep practicing and you will get into the habit of practicing the KOMATSU Way

proactively.

Then, please pass what you have learned and experienced about the KOMATSU Way

on to the next generation.

Through this cycle, we hope that we can develop our employees and it brings

Komatsu Group’s growth.

4.8 End

Notes:

This concludes the KOMATSU Way History e-learning.

Published by Articulate® Storyline www.articulate.com

 Please also take the next module, Leadership/Top Management.

Thank you.

Published by Articulate® Storyline www.articulate.com

K-Way e-learning_LeadershipTop Management

1. 2. K-way e-learning_Leadership Top management_E

1.1 Start

Notes:

In this e-learning, you will learn the first chapter of the KOMATSU Way,

Leadership/Top Management chapter.

As you may know, the KOMATSU Way summarizes Komatsu’s common

values.

Leadership/Top Management chapter describes leaders and top

management's attitude and code of conduct required for further growth as a

global company.

As this chapter also describes the company’s direction, it is important not

only for leaders and top management, but also every employee.

Published by Articulate® Storyline www.articulate.com

1.2 1. Mindset of Leadership/Top Management

Notes:

The Leadership and Top Management chapter consists of two sections.

The first is Mindset of Leadership and Top Management and the second is

Guidelines for Leadership and Top Management.

In this slide, we will explain the first section, Mindset of Leadership and Top

Management.

There are five approaches.

1. Leadership and Top Management familiarity with the Gemba (workplaces),

2. Collaboration with partners, 3. Strategy deployment, 4. Employee

development, and 5. Mindset through Brand Management activities.

As some contents are common as the “Monozukuri” chapter and Brand

Management chapter, you may understand that these five approaches are

not limited to leaders and top management, but also all employees.

Please keep these five approaches in your mind in your daily work.

Published by Articulate® Storyline www.articulate.com

When facing difficulties in decision-making, make decisions following the

order of SLQDC (Safety, Law and Compliance, Quality, Delivery and Cost) and

take action accordingly.

1.3 2. Guidelines for Leadership and Top Management

Notes:

Next, we will explain the second section, Guidelines for Leadership and Top

Management.

These guidelines are important to be trusted by all stakeholders.

Following the guidelines enables us to strengthen corporate governance and

ensure sound management of the entire group.

There are five guidelines.

(1) Actively engage with the Board of Directors

(2) Set an example: Communicate with all stakeholders

Published by Articulate® Storyline www.articulate.com

(3) Comply with the rules of the business community

(4) Never put off responses to risks

(5) Continue to think about your succession plan

(3) ~ (5) are not limited to leaders and top management, but apply to every

employee.

Untitled Layer 1 (Slide Layer)

Untitled Layer 2 (Slide Layer)

Published by Articulate® Storyline www.articulate.com

Untitled Layer 3 (Slide Layer)

1.4 Actively engage with the Board of Directors

Notes:

Actively Engage With the Board of Directors.

・The Board of Directors makes the most important management decisions

for our company. Their main role is to perform the duties of strategic

planning and the continuous improvement of corporate value for long-term

success. Almost directors used to be appointed through internal promotion,

and they ran up to a dozen. Therefore, we couldn't have an open discussion

Published by Articulate® Storyline www.articulate.com

at the time. Top management, driven by a sense of impending crisis under

such circumstances, has made efforts to reform the Board of Directors as a

core of corporate governance.

・ Currently, we are narrowing down the number of directors to enhance the

effectiveness of the Board of Directors through active discussions. To ensure

the transparency and soundness of management, outside directors

participate and supervise to avoid autocratic management style. Also, the

management of the Komatsu Group is required to hold meetings of the

Board of Directors following the rules of each company. As a result, meetings

have been held in three stages: reporting, discussion, and resolution through

a full discussion with outside directors.

・That’s how this guideline was established.

1.5 Set an example: Communicate with all stakeholders

Notes:

Published by Articulate® Storyline www.articulate.com

Set An Example: Communicate With All Stakeholders.

Leadership and top management are accountable for explaining the current

conditions and future direction of the company to all stakeholders in their

own words.

In Komatsu Group, the president and all stakeholders have opportunities to

communicate regularly with each other.

For example, at General Meetings for all employees, the president explains

the current conditions and corporate strategies of the Komatsu Group

directly to everyone.

Through these meetings, employees can understand the directions that

Komatsu Group should take, problems that company is facing, and what they

should do.

These meetings are meaningful for all employees, so please attend them if

you have a chance.

Published by Articulate® Storyline www.articulate.com

1.6 Comply with the rules of the business community

Notes:

Comply With The Rules of The Business Community.

Rules of the business community are not only limited to laws and regulations,

but also include rules commonly respected by society.

Compliance with those rules is critical in order to keep the trust given by all

stakeholders.

This guideline is not only for leadership and top management, but also for all

employees.

Leadership and top management are expected to take the initiative to follow

Komatsu Group's Five Principles of Compliance.

These principles define fundamental behavior designed to follow the rules of

the business community.

Published by Articulate® Storyline www.articulate.com

Leaders should also remind their employees that compliance with the rules

of the business community is equally important with occupational safety and

health.

Foster an atmosphere and culture where employees are comfortable

reporting violations when discovered.

1.7 Never put off responses to risks

Notes:

Never Put Off Responses to Risks.

There are inherent risks in management.

The scope of risks is diverse, ranging from safety to compliance, natural

disasters, business strategies, etc.

Risks are inevitable.

It is important to find any hidden risks and investigate them thoroughly.

Published by Articulate® Storyline www.articulate.com

When risks appear (or signs of risks), they must be reported to appropriate

departments and external organizations in a timely manner.

Never put off responses to risks.

Especially, when compliance-related risks surface, never distort or cover

them up.

Take countermeasures in order to minimize potential risks.

Many instances of corporate misconduct are caused by delay or failure to act

on risks.

1.8 Continue to think about your succession plan

Notes:

Continue to Think About Your Succession Plan.

Grooming a successor is an important job for leadership and top

management.

Published by Articulate® Storyline www.articulate.com

Komatsu’s management value must be passed on when training your

potential successor.

It is very important to work with your potential successor daily, ensuring they

gain experience and understand a variety of Gemba tasks in order to develop

their ability to discover the essence of problems.

We expect leaders and top management to develop their successor by

considering following key points;

1. Encourage them to break through difficult situations that will develop

strong leadership skills.

2. Develop your successors’ capability to align people with diverse opinions

to work together.

3. Make sure that your successors understand the importance of compliance.

1.9 End

Notes:

Published by Articulate® Storyline www.articulate.com

This concludes this e-learning.

Please also take the next module, ”Monozukuri”.

Thank you.

Published by Articulate® Storyline www.articulate.com

K-Way e-learning_Monozukuri_GTI FY21

1. 3. K-way e-learning_Monozukuri_E

1.1 Start

Notes:

In this e-learning, you will learn the second chapter of the KOMATSU Way,

“Monozukuri” chapter.

1.2 Monozukuri Seven Principles

Published by Articulate® Storyline www.articulate.com

Notes:

Komatsu has overcome many difficulties and crisis with activities based on

“Monozukuri” (TQM), and grown by creating new values.

Reinforcing and maintaining “Monozukuri” is important to strengthen our

management culture which is durable enough to rapidly changing

circumstances.

When we at Komatsu speak about “Monozukuri”, we define “Monozukuri” as

teamwork activities performed by all members of internal divisions, such as

development, production, sales, service and administration, as well as

suppliers, distributors and other partners in our value chain.

The following “Seven Principles of The KOMATSU Way” are important when

implementing “Monozukuri”.

1. Commitment to Quality and Reliability

2. Customer Focus

3. Defining the Root Cause

4. “Gemba” Philosophy

5. Strategy Deployment

6. Collaboration with Business Partners

7. Employee Development

The “Monozukuri” chapter summarizes those seven principles, and forms the

core of The KOMATSU Way.

Published by Articulate® Storyline www.articulate.com

On the next slides, we will study one by one.

1.3 1. Commitment to Quality and Reliability

Notes:

1. Commitment to Quality and Reliability

As shown in Management Philosophy, quality has always been our

uncompromising top priority.

Leveraging our history of innovative engineering, we will continue to provide

products that exceed our customers’ high expectations.

Commitment to Quality and Reliability consists of five words of wisdom:

(1) Target DANTOTSU

(2) Customer determines quality of products and work

Published by Articulate® Storyline www.articulate.com

(3) Focus your efforts on filling the gap between ideal state and actual

conditions

(4) Think positively about how to do things, instead of focusing on why

something can’t be done

(5) We can't make technological progress if we blame our customers for

quality problems or defective work

1.4 2. Customer Focus

Notes:

2. Customer Focus

We appreciate our customers’ opinions and continuously work to provide

products designed to ensure their satisfaction.

By carefully listening to our customers, we develop closer relationships with

them and become their business partner of choice.

Published by Articulate® Storyline www.articulate.com

Customer Focus consists of five words of wisdom:

(1) Komatsu continuously works to become an “indispensable partner” to its

customers

(2) Customers first. Place top priority on solving customers’ problems

(3) Don’t turn away from uncomfortable situations; make an effort to find a

solution

(4) Own your time commitment; manage communication and deliverables

(5) Remember the internal customer is the recipient of your work

On the next slide, we will focus on (1) Komatsu continuously works to

become an “indispensable partner” to its customers.

1.5 2. Customer Focus

Notes:

Published by Articulate® Storyline www.articulate.com

“Komatsu continuously works to become an “indispensable partner” to its
customers”

We work with our customers and support the growth of their business, not
only through sales activities of our products, but also through the diverse
range of high value-added services and systems we offer.

Our goal is to develop a relationship with our customers whereby we

become their “true partner” and grow with them.
In other words, we strive to become an indispensable partner to our
customers who increasingly depend on us.

Please watch following video.

1.6 2. Customer Focus

Published by Articulate® Storyline www.articulate.com

1.7 3. Defining the Root Cause

Notes:

3. Defining the Root Cause

In order to prevent or limit defects or problems, we have to focus on

identifying the genesis of the problem and correct the root cause by tracing it

through the entire process from product planning to customer machine

operation.

If we can identify the root cause, it allows us to confidently fix what caused

the problem and prevent it from reoccurring.

Defining the Root Cause consists of four words of wisdom:

(1) Repeat “Why?” five times

(2) Multiple hypotheses must be developed and validated until root cause is

defined

(3) Consider the whole process to achieve total optimization

Published by Articulate® Storyline www.articulate.com

(4) Focus your efforts on developing preventive measures, instead of

regretting past defects or mistakes

On the next slide, we will focus on (1) Repeat “Why?” five times.

1.8 3. Defining the Root Cause

Notes:

“Repeat “Why?” five times”

This is our approach to identify the real cause(s) of problems.

When we repeatedly ask “Why?” a given problem has occurred, we take one
step back in our workflow, identify the real cause(s), implement

countermeasures and prevent the same problem from reoccurring.

When we repeatedly ask “Why?” it is important not to place blame.

Preventive measures are designed to find the defects of rules and tools and
improve them, not to blame the people involved.

Published by Articulate® Storyline www.articulate.com

Please watch following video.

1.9 3. Defining the Root Cause

1.10 4. “Gemba” Philosophy

Notes:

4. “Gemba” Philosophy

The term “Gemba” is a key word from Komatsu heritage.

Published by Articulate® Storyline www.articulate.com

Gemba is a Japanese term meaning the “actual workplace” where the “real

thing” and the “real situation” are happening.

Going to and closely observing the workplace for factfinding enables us to

identify the origin of the issues and make potential issues apparent.

“Gemba” philosophy is the backbone of the five Gen elements:

1. Gemba (actual workplace)

2. Gembutsu (real thing)

3. Genjitsu (real situation)

4. Genten (origin)

5. Kenzaika (making things apparent/visualization)

These five Gen elements are the basis of Komatsu’s Monozukuri.

The answers are at the Gemba.

Analyze and visualize the information you have gathered.

Pay close attention, be sensitive to even subtle changes and observe what is

actually going on at the Gemba.

Published by Articulate® Storyline www.articulate.com

1.11 4. “Gemba” Philosophy

Notes:

“Gemba” Philosophy consists of nine words of wisdom.

On the next slide, we will focus on (3) Support your talk with data.

1.12 4. “Gemba” Philosophy

Notes:

“Support your talk with data”

Published by Articulate® Storyline www.articulate.com

Take your stand supported by data, instead of merely experiences or
hunches.
Use analytical data to understand the facts and problems in order to make
countermeasures.

Please watch following video.

1.13 4. “Gemba” Philosophy

1.14 5. Strategy Deployment

Notes:

Published by Articulate® Storyline www.articulate.com

5. Strategy Deployment

When top management determines management strategy, it is promptly

delivered to divisions, departments and employees around the world. The

management strategy is then cascaded down so that all employees, at each

level, are responsible for: recognizing their roles, interpreting the strategy,

defining their tasks and carrying out those activities. This deployment is

accomplished layer by layer, continuously turning the PDCA (Plan-Do-Check-

Act) cycle.

Strategy Deployment consists of two words of wisdom:

(1) Strategy deployment is Komatsu’s strength

(2) Speak in your own words

On the next slide, we will focus on (1) Strategy deployment is Komatsu’s

strength.

Published by Articulate® Storyline www.articulate.com

1.15 5. Strategy Deployment

Notes:

“Strategy deployment is Komatsu’s strength”

Strategy deployment is one of our quality management systems based on

TQM that enables the company to withstand any external factors.

Every three years, Komatsu top management announces their Mid-Term

Management Plan based on the Management Philosophy that takes changes

in the external environment into consideration.

After the announcement, it is broken down into detailed strategies, such as

annual division strategy, plant manager strategy, and department strategy.

Then, middle management sets the activity plan and individuals set their

annual goals.

This deployment is accomplished layer by layer, evaluating our activity

achievements by continuously turning the PDCA (Plan-Do-Check-Act) cycle.

Published by Articulate® Storyline www.articulate.com

In this way, all employees can contribute to the success of the Mid-Term

Management Plan.

This whole process is our strategy deployment.

Strategy deployment was introduced during Project A in the 1960s and it is

now one of Komatsu’s strengths.

We hope everyone will follow this strategy deployment and improve your

daily operation by turning the PDCA cycle.

1.16 6. Collaboration with Business Partner

Notes:

6. Collaboration with Business Partner

All of our divisions work collaboratively to solve mutual problems and

improve operations, share know-how, and conduct business with full

awareness of our corporate social responsibilities.

Published by Articulate® Storyline www.articulate.com

As a member of the Komatsu team, we work to facilitate our business growth.

Collaboration with Business Partner consists of five words of wisdom:

(1) Win-Win relationships

(2) Align the direction with business partners

(3) Emphasize teamwork with distributors and suppliers

(4) Dynamic action through cross-functional teams

(5) Promptly notify, report, and consult

On the next slide, we will focus on (5) Promptly notify, report, and consult.

1.17 6. Collaboration with Business Partner

Notes:

“Promptly notify, report, and consult”

Published by Articulate® Storyline www.articulate.com

Notification, report, and consultation must be made promptly to the
appropriate party as per policy.

A corporate culture in which bad news quickly reaches the top management
enables us to take appropriate actions to prevent problems from growing.

Please watch following video.

1.18 6. Collaboration with Business Partner

1.19 7. Employee Development

Notes:

Published by Articulate® Storyline www.articulate.com

7. Employee Development

Komatsu employees are our most valuable assets, because it is our

employees who support sustainable corporate growth. Through our global

employee development and education, our workplace is enhanced and our

employees’ career development is strongly supported.

Employee Development consists of nine words of wisdom.

On the next slide, we will focus on (6) Propose whatever ideas you come up

with.

1.20 7. Employee Development

Notes:

“Propose whatever ideas you come up with”

Published by Articulate® Storyline www.articulate.com

Komatsu has a corporate culture that encourages creativity, innovation and the
entrepreneurial spirit.

You are the expert at your job.

Organize your thoughts, be confident in yourself, and propose your ideas to your
team and managers so that they fully understand your ideas.

Please watch following video.

1.21 7. Employee Development

1.22 End

Notes:

Published by Articulate® Storyline www.articulate.com

This concludes this e-learning.

Please also take the last module, Brand Management.

Thank you.

Published by Articulate® Storyline www.articulate.com

K-Way e-learning_Brand Management

1. 4. K-way e-learning_Brand Management_E

1.1 Start

Notes:

You will learn about Brand Management, the last chapter of this e-learning.

1.2 (1) What is Komatsu’s Brand Management?

Notes:

Published by Articulate® Storyline www.articulate.com

Brand Management is defined as all of the activities that “make Komatsu

indispensable to our customers”.

These activities aim to make Komatsu the customer’s first choice.

As explained in the KOMATSU Way History e-learning, Komatsu’s

Management Philosophy is to commit ourselves to quality and reliability in

order to maximize the sum total of the trust given to us by all stakeholders

and society.

Stakeholders in the management philosophy are divided into two groups.

The group creating corporate value consists of distributors, suppliers,

employees, and customers.

The group evaluating corporate value consists of customers, shareholders,

investors & analysts, mass media, and the community.

As you can see, customers are the most important stakeholders as they

create and evaluate our corporate value and pay for it accordingly.

Komatsu aims to build a collaborative relationship with customers, to

enhance trust by achieving mutual goals and to continue to be selected by

the customer as the partner of choice.

This is Komatsu’s Brand Management.

On the next slide, we will explain the background in detail.

Published by Articulate® Storyline www.articulate.com

1.3 (2) Background of introducing Brand Management

Notes:

Brand Management was introduced to face the difficulties Japanese

manufacturing industry was facing.

In the 1990s, companies from developing countries entered the market.

There was a large gap in quality and price between products made by

Japanese companies and those made by companies from developing

countries.

However, in the 2000s, the difference in quality narrowed as companies from

developing countries improved their product quality.

It was more difficult for Japanese companies to differentiate their products.

If Japanese companies cannot differentiate their products, they will be

involved in price competition.

Published by Articulate® Storyline www.articulate.com

Additionally, a quick response to meet diverse customer needs was required.

Due to this background, Komatsu needed a new marketing strategy to

provide its products and services to customers.

1.4 (3) A shift in marketing paradigm

Notes:

Our marketing strategy is divided into three phases:

Selling - a strategy to sell our products,

Marketing - a strategy to sell products that meet market needs, and

Branding - a strategy to continue selling.

Our previous marketing strategy was Selling and Marketing.

Published by Articulate® Storyline www.articulate.com

However, we realized that it would be difficult to maintain our position as the

customers’ first choice.

In 2000, Komatsu shifted its marketing strategy to Branding and started

Brand Management activities to build a collaborative relationship with

customer.

In Brand Management activities, we must understand the customer’s

business and issues at the Gemba, learn their ideal state and set goals to

reach said state, even identifying goals that the customer may not have

identified and move forward together toward those goals.

1.5 (4) How to conduct Brand Management activities

Notes:

In conducting Brand Management activities, the following attitudes are

important:

1. Understand the customer

2. Support the customer with our integrated capabilities

Published by Articulate® Storyline www.articulate.com

3. Move forward together with the customer

When we introduced Brand Management, it was conducted mainly by

distributors and the Marketing division.

As our products, services, and solutions are created by cross-functional

teams, they are now expanded to other related divisions, such as the R&D

division and Production division, and has become company-wide activities.

Komatsu’s Brand Management activities have been introduced as customer

value creation activities in external symposiums, thus other companies in

automotive industry are following suit.

We hope that you all will understand Komatsu’s Brand Management and put

it into practice in your work.

1.6 End

Published by Articulate® Storyline www.articulate.com

Notes:

This concludes the KOMATSU Way e-learning.

Thank you.

Published by Articulate® Storyline www.articulate.com