
Customer satisfaction forms the basis of everything we do here at the Citizen Group. We constantly strive to provide products and services that offer top quality from the customer's perspective and take on board customers' comments to help us develop products and improve our services.
In order to continually improve customer satisfaction, we are currently implementing a range of initiatives designed to comprehensively enhance the quality of our operations at Citizen Watch Co., Ltd., including after-sales services as well as product capabilities in areas such as quality, functionality and design. New initiatives in fiscal 2010 include: first, the introduction of a text analysis tool called Text Mining to analyze customer comments gathered by the Customer Service Desk and create a system to better convey them to relevant departments; and second, a survey of customer satisfaction, with watch repair services as core business of the service center. The survey confirmed that 86% of the customers were satisfied with our repair service. We aim to improve our services to boost the satisfaction level.

The Customer Service Desk

The map has been drawn by analyzing inquiries made to our Customer Service Desk to represent the connection between words and how often they are used. Inquiries are classified into repair, operation methods, parts replacement, and product purchase. Numerous inquiries on operating methods and adjustments reflect market needs for user-friendly watches.

* The massive growth in the number of inquiries in fiscal 2010 is attributable to our decision to include the number of inquiries received by a subsidiary, Citizen Customer Service, in addition to that of the Customer Service Desk.

Interview
CITIZEN WATCH

Jindai Yamakawa
Manager
Development Center
Technical Development Division
Our products reflect the many different comments from customers. The Attesa is characterized in that it is made of titanium. More than 20 years have passed since it hit the market. We are one of the very few manufacturers to have continuously mass produced general industrial products made of titanium. Then, becoming one of the first companies to start our initiative to protect the environment, we paid attention to the abundance of titanium reserves and to the non-allergenic properties of this metal. To answer customers' needs for attractive watches that do not cause metal allergies, we created a sharp line and a gorgeous mirror finish using titanium, a material that is notoriously difficult to process.
The Direct Flight radio control, which corrections for time differences simply by turning the stem, and the Eco-Drive feature, which transforms light into electric power energy to eliminate the need to regularly replace batteries, have been developed to meet customer needs for simple operations for time difference correction, for trouble-free time setting, and for freedom from cumbersome battery replacement.
Despite difficulty in ensuring the balance between design appeal and functional utility, we endeavor to meet the demands of customers in every detail, visible and invisible, ranging from surface treatment to structural design. The point is to build real credibility and offer products that bring greater satisfaction by responding to customer needs. We will continue to seek technical innovation, harnessing our accumulated expertise and constantly maintaining a sincere attitude towards our customers.
Interview
CITIZEN SYSTEMS JAPAN

From left to right in the photo:
Yasuhiro Kiuchi
Manager, Planning Office
Consumer Devices Division
asuhiro Hayashi
General Manager, Engineering Division
Yuichi Nishizawa
Manager, Quality Assurance Office

A waterproof test for the TR-10

TR-10-GR
Citizen Systems Japan released a new digital pedometer called the TR-10 in the fall of 2010. Conventional pedometers incorporating acceleration sensors began emerging around 2005. They count the number of steps by monitoring waveform signals generated while walking. However, they are unable to correctly count steps while jogging, because the act of jogging produces violently swinging waveforms. Many users wanted the ability to count steps accurately when they jogged and walked. We refined the waveform processing technology so that the TR-10 could work well while jogging.
Customers who used their pedometers early in the morning or after work requested a display screen that was visible in the dark. Consequently, the TR-10 is equipped with a backlight. In addition, conventional models had a drawback in that sweat and rainwater got inside the device, corroding the internal circuit board. We upgraded the drip-proof feature of conventional models to a water-proof feature for the TR-10, to attain a structure more resistant to water and sweat.
These improvements have differentiated the TR-10 from its competitors, adding extra product value. It is clear proof of the importance of customer feedback to product development. At Citizen Systems Japan, the Customer Service, Quality Assurance, and other sections work together, exchange opinions and step up studies in an effort to product enhanced products. We will continue to manufacture products with care to detail, so that we can constantly increase customer satisfaction.

Targeting nationwide retailers, at the Spring/Summer Watch Showcase we exhibited valuable new watch products that bring together Citizen's technical and design expertise and provided effective ways of showcasing the Citizen brand in-store. By introducing the new brand initiatives being deployed by Citizen and the new Eco-Drive movement that achieves accuracy to within plus or minus five seconds a year, at this year's event we believe we succeeded in having retailers understand Citizen's attitude towards manufacturing, which is based on a product policy of fusing technology and beauty. Looking ahead, we will continue to make proposals to assist retailers.
As a part of our quality policy at Citizen Electronics Co., Ltd., we now conduct customer satisfaction surveys twice a year to gain feedback from customers. We have our major customers respond to the surveys, which comprise 14 criteria including questions about price. For the overall evaluation conducted in October 2010, the comprehensive evaluation of customers shifted upwards after three consecutive periods of decline, revealing the results of efforts made in each department. However, looking at specific criteria, in terms of suitability of price our products continue to be regarded as "high" compared with our competitors in the market. We believe that this mainly reflects the fact that while the worldwide lighting market has expanded, significant price drops have occurred in the market for conventional mobile phones. Accordingly, for the February 2011 customer satisfaction survey we will make the addition of a customer survey on lighting, an area experiencing sales growth, in an effort to make use of more accurate customer feedback in implementing internal improvements.

On-Time Co., Ltd. operates a network of 23 open, friendly stores nationwide. Each store has specialist technicians permanently available in order to offer "Repairer Bunch" services. We wanted to do something to show how much we value relationships with our many customers, even if it was just something small. We have therefore introduced a number of schemes as part of our "3R+R" project, which expands on 3R activities* to include "Repairs" as well. For instance, we have replaced packaging used to send items between stores and head office for repairs with bags that can be reused any number of times. We also recycle used batteries that have been replaced and use the proceeds to fund environmental improvement initiatives.
The best thing we can do to for the environment is to repair our customers' beloved watches to the best of our ability so that they can keep on using them forever.
*3R activities: Making effective use of resources by Reducing, Reusing and Recycling

We apply the JIS T 14971 standard for the application of risk management to medical devices as part of the development of electronic thermometers and blood pressure monitors at Citizen Systems Japan Co., Ltd. As well as being used by medical institutions, electronic thermometers and blood pressure monitors are also the most commonly used medical devices on an everyday basis in the home. To enable customers to use such devices with confidence, it is essential to ensure not only that devices provide accurate readings but that they are also safe. The JIS T 14971 standard covers more than 100 criteria and requires improvements in areas such as design, manufacturing, labeling and instruction manuals, including (1) identifying all hazards relating to the device, (2) assessing risk levels based on the severity and frequency of each hazard and (3) ensuring all hazards are made safe. We have standardized procedure for the implementation of JIS T 14971 in the form of our Risk Management Regulations and Risk Analysis Manual and continually monitor implementation through design reviews at every stage of the development process (planning, design, prototype development, trial mass production and shipping approval).

Electronic manuals
We make every effort at Citizen Machinery Co., Ltd. to ensure that customers can use our products correctly and safely, with the aim of achieving "the world's highest level of customer satisfaction." The purpose of machine tool manuals is to provide the customer with accurate information regarding how to use the relevant product correctly and safely when they need it. In addition to supplying such information in the form of printed manuals, in 2007 we began to provide electronic manuals on CD.
Although electronic manuals were initially only available for selected new models, we are now in the process of producing electronic manuals for all models currently on sale in response to strong demand from customers in Europe, the United States, and all over the world. In the interests of customer usability, we are making improvements such as including easy search functions and revising safety-related content. The impact of electronic manuals is gradually starting to become evident from an environmental standpoint as well, including preserving resources by using less paper, conserving electricity by using copiers for shorter periods of time and saving storage space by switching formats to CD. One of our key focuses for the coming year will be to investigate other new means of providing information, including access to online manuals and integrating manuals into actual machinery. We will continue to provide our customers with quality manuals when they need them in the future, focusing on customer usability, product safety and environmental friendliness.
Citizen Plaza Co., Ltd. is one of a select number of companies within the Citizen Group that interacts directly with customers, dealing with upwards of 2,000 customers on busy days. In addition to working to improve levels of hospitality amongst all employees, we are also in the process of improving the operating structure of the newly relaunched ice skating division based on the motto "safety first." Key initiatives include (1) introducing an entry and exit system to continually monitor the number of skaters on the ice and enable skaters to move around the ice safely, (2) making the rink twice as bright by installing new lighting, (3) running continual rink safety patrols and (4) producing a safety manual featuring precautions in English. To encourage children in particular to read the safety manual, we have included lots of pictures and details of actual accidents that have occurred at the ice rink. Copies of the manual are distributed to children taking part in skating classes and general customers in an effort to raise levels of safety awareness. We will keep up our efforts to ensure that our customers have an enjoyable and satisfying skating experience.

· "To all the Ice Fairies" safety manual

Shinichi Kobayashi
Manager,Systems Management Department
Citizen Finetech Miyota Co., Ltd.
Voice Responding to Second-Party Audits
We attach a great deal of importance to customers' comments as part of our manufacturing operations at Citizen Finetech Miyota Co., Ltd. One of the ways we are committed to achieving this is through second-party audits. This involves customers visiting our premises in person to view the manufacturing processes here at Citizen Finetech Miyota through the eyes of a quality professional and highlight areas in need of improvement in a stringent manner. The experience gained from invaluable opportunities such as these are shared on a companywide basis and help us to promote better manufacturing.
Including documentary inspections, we underwent a total of 14 second-party audits during fiscal 2010. While the criteria in recent second-party audits have tended to become stricter and a number of areas in need of improvement were highlighted, we nonetheless passed all 14 audits. Details of audits, areas in need of improvement and remedial action take are reported to monthly quality improvement meetings so as to share information with other departments and provide them with positive examples to help improve their own practices in the future. We are committed to activities aimed at improving customer satisfaction.

Hideo Ina
Manager, Domestic Sales Department
Citizen Machinery Co., Ltd.
Voice From Customer Satisfaction to Customer Inspiration
We are committed to doing everything for the customer at Citizen Machinery Co., Ltd., based on our customer satisfaction-oriented approach to management. We have always been focused on the customer's perspective and have strived to achieve customer satisfaction ever since we started manufacturing machine tools. We have continued to translate that philosophy and our customers' needs into concrete solutions. You can never fully achieve customer satisfaction. Even if your products or services are 100%, some customers will always be unsatisfied. That is why our current focus is on "customer inspiration". We are committed to surprising and delighting our customers, in an effort to exceed their expectations, and to continually enhancing inspirational value.