JAPANESE

Komatsu Shantui Construction Machinery Wins the Deming Prize

Komatsu Ltd. (President and CEO: Tetsuji Ohashi) (hereinafter "Komatsu") announced that Komatsu Shantui Construction Machinery Co., Ltd. (President: Fangchang Liu) (hereinafter "Komatsu Shantui"), a manufacturing subsidiary of medium-sized hydraulic excavators in Shandong, China, had received the Deming Prize for 2013. Komatsu Shantui became the second award-winning company in China. See below for the reasons (translated from Japanese into English by Komatsu) as provided by the Union of Japanese Scientists and Engineers.

[Reasons]
"Komatsu Shantui was established jointly by Shantui Construction Machinery Co., Ltd., Komatsu, Komatsu (China) Ltd. and Sumitomo Corporation in 1995. The Chinese construction equipment market is especially noted for dynamic changes in demand as affected mainly by domestic economic conditions and polices. In response to such a market environment, Komatsu Shantui introduced TQM and built an operational structure capable of flexibly meeting dramatic changes on the market, thereby enhancing its quality competitiveness. As a result, Komatsu Shantui has made outstanding achievements, including improving product quality, prompt responses to customer needs, reduced total costs, fewer labor accidents, and increased job satisfaction among employees."

Komatsu has proactively promoted TQM over the years. Komatsu introduced the company-wide quality control (QC) program in 1961 and won the Deming Application Prize (currently, Deming Prize) in 1964 and the Japan Quality Control Prize in 1981. Komatsu has also introduced TQM to overseas subsidiaries and cultivates a work environment where national staff (locally hired employees) themselves work to identify problems and tasks at their workplaces and add value to their own work, thereby facilitating the localization of management. As a key production base in China with promising expansion in demand for the mid to long term, Komatsu Shantui has established a company-wide, quality-first management structure with the goal of enhancing organizational capabilities and development of human resources, which Komatsu believes has brought the Deming Prize to Komatsu Shantui.

Komatsu will continue to uphold its commitment to the Quality and Reliability principle in order to maximize its corporate value.


[Outline of Komatsu Shantui]

Name: Komatsu Shantui Construction Machinery Co., Ltd.
Established: 1995
Head office: Jining, Shandong, China
Representative: Fangchang Liu
Line of business: Manufacture of medium-sized hydraulic excavators, and manufacture and sale of their parts
No. of employees: 934

(end)


Information in the news releases is current on the date of the announcement and is subject to change without notice.

2013/10/11

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