Since formulating its Import Action Program in July 1994 (revised October
2001) the Chugoku Electric Power Company, Inc. has been developing increasingly
effective and smooth promotion of overseas product imports company-wide
as one of its cost reduction measures.
Import Action Program
Amid the future trend of electric power liberalization the major business
task facing our company will be cost reduction. Accordingly Chugoku Electric
Power is seeking to broaden the base of its materials procurement by inviting
the participation of new domestic and overseas suppliers in order to benefit
from the effects of competition. The Import Action Program provides concrete
guidelines for the company's overseas product purchasing. Purchase of overseas
products will be stepped up by soundly implementing the Program's three
major pillars listed below.
1. Further expand adoption of overseas products
| (1) |
Products and items whose new adoption is envisaged are divided into the
following two ranks in the interest of reliable adoption.
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- Rank 1: Overseas products to be adopted at an early date for reasons of
criticality / urgency
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* For products of this rank, new adoption in specific areas is contrived
in the current/coming fiscal year.
- Rank 2: Overseas products to be adopted in near future but not urgently
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* For products of this rank, information is gathered with a view to adoption
within 2-3 years.
| (2) |
Manufacturers and other relevant business associates are encouraged to
furnish knowledge on overseas products other than the above via the Planning
& International Procurement Section of the Group Management Div, and the relevant departments promptly conduct technological
assessments, etc., regarding such products.
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| (3) |
In order to actively uncover overseas manufacturers, missions to survey
overseas markets, etc., are sent out by Chugoku Electric Power whenever
the need arises. Further, in order to speed up technological examinations
the company’s personnel travel to overseas manufacturers’ plants as necessary
to conduct specification confirmation tests, etc.
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2.Expand utilization of overseas-manufactured parts and materials
- Use of overseas parts and materials is actively expanded.
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* Efforts are made to continue with use of parts and materials that have
already been successfully used, and it is actively contrived to spread
such use laterally into various areas.
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* Further, proposals for new overseas product adoption, including information
on parts and materials quality and prices, etc., are solicited from manufacturers
and other relevant business associates, and such proposals are examined
by the relevant departments.
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* Those proposals that show good promise of yielding cost reduction effects
after comparisons with existing technology have been made are actively
adopted.
3. Extend the Import Action Program to the entire company
Adoption of overseas products in accordance with the Action Program is
being actively extended to all sections of the company, and forward-looking
trial use of overseas products is being implemented.
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* The Import Action Program will be expanded in scale to cover the entirety
of the Chugoku Electric Power Company.
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* The Planning & International Procurement Section of the Group Management Div distributes to all relevant locations throughout
the company information on overseas products that have been sales-canvassed
with the company and on overseas items that have been successfully adopted.
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