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Working with Business Partners

Strengthening Cooperation with Partners

Amid the ongoing changes in the business environment, including the growing size of plants, the increasing sophistication in equipment and demands for earlier project completion, it is becoming increasingly important to select the best suppliers and supervise their work by using our quality management systems.

Recently, companies are being requested to promote strict compliance to their business partners as well and to share significance of compliance and CSR with them. For the further promotion of our CSR with the business partners including supply chain management, we have been making efforts to familiarize them with our Corporate Philosophy, CSR Values and various rules. For this purpose, we have delivered “CORPORATE SOCIAL RESPONSIBILITY POLICY” to business partners thorough supply chain, and requested them to follow our CSR policy and rules.

Standard business agreement with business partners specifies compliance with construction law, labor standard law, employment security law, industrial safety and health law, workmen’s accident compensation insurance law, and other applicable laws and regulations. In addition, in order to exclude anti-social forces, anti-social exclusion clauses are incorporated to promote CSR procurement in the entire supply chain including business partners. Also at the annual meeting of the sub-contractors, "Chiyoda Group CSR Handbook" were handed them.

Quality control with supplier

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Equipment to be purchased as materials of the plant affect the safety of local residents and the global environment if there are problems with the quality.
For example, when it becomes necessary to do remanufacturing due to quality problems, the amount of materials used and the environmental burden increases. In addition, if a plant accident resulting from quality occurs, it also has a great impact on the local residents.
There are variable reasons for troubles that occur in manufacturing equipment or at a construction site. In that respect, we regularly hold a meeting named “Valve Summit” with each supplier that ensures the required quality, recognizing and avoiding these problems in advance these problems.
The Valve Summit has been held three times a year since 2013, and in June 2016, about 100 persons participated from 30 suppliers.
We have made every effort to improve the quality of plant and increase technological ability through the discussions on valve technologies, sharing the examples of troubles and the way of avoiding such troubles.
We have held the similarly activities with pressure vessel suppliers twice a year since 2015. IN November 2016, about 100 persons participated from 20 suppliers.
We share the technology information and also adopt quality management methods through with the suppliers.