Here we outline our four businesses, through which we contribute widely to the lives of people around the world.
Machine tools
Citizen began production of machine tools in 1936, utilizing the technologies and know-how developed through the manufacture of watch parts. Our products contribute to the development of manufacturing industries all over the world.
About Us
More than a century since it was founded in 1918 with the desire to produce Japanese-made watches, the CITIZEN Group has evolved into a corporate entity engaged in a wide range of businesses.
CITIZEN's corporate philosophy, "Loved by citizens, working for citizens" is to
deeply contribute to the lives of people around the world through the manufacturing of products that are loved and trusted by citizens.
Message From President & CEO
Crafting a new tomorrow Towards sustainable value creation
The CITIZEN Group has been conducting awareness campaigns for the dissemination of The CITIZEN Group Quality Code of Conduct, which was formulated based on Article 2 of The CITIZEN Group Code of Conduct through the leadership of the "Group Quality Compliance Committee," established in FY2018. These efforts aim to ensure a shared understanding of quality compliance, including at overseas bases, by considering the situation of each business.
This Committee comprises executives responsible for quality at various group companies and is dedicated to promoting the permeation of compliance with quality standards from the perspective of The CITIZEN Group as a whole, transcending individual business units. The Committee also focuses on enhancing the effectiveness of the internal reporting system and incorporates ESG/SDGs perspectives. Additionally, it drives activities to respond to requests from stakeholders in various business domains.
In FY2022, the Committee included the heads of quality assurance departments from various group companies as observers. By engaging in discussions that incorporate viewpoints from both the group perspective and the operational perspective of each business unit, we are addressing the issue of quality compliance, which is at the core of quality management. These discussions are intended to establish an organizational culture that prevents "quality scandals."
Organizational Chart of the Quality Compliance Committee
Progress on the Quality Compliance Roadmap
In FY2023, efforts to strengthen quality compliance were successful in achieving the target of “two activities to disseminate The CITIZEN Group Quality Code of Conduct.” The CITIZEN Group will continue to promote awareness of the Group Quality Code of Conduct persistently through activities such as training for employees in Japan and overseas, displaying posters featuring the Group Quality Code of Conduct at overseas sites, and disseminating the information through the company intranet.
As FY2024 is the final year of the Medium-term Management Plan, the Group Quality Compliance Committee plans to summarize and review the FY2030 roadmap, which will be discussed by the Committee.
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FY2022
FY2023
FY2024
FY2030
Target
Ensuring the independence of the quality assurance department of the business controlling company and development of an effective monitoring system
Ensuring the independence of the quality assurance department of the business controlling company and development of an effective monitoring system
Effective risk identification and correcting the status of compliance with the Group Quality Code of Conduct at all sites
Compliance with the Group Quality Code of Conduct by all Group executives and employees
KPI
Two activities to disseminate the Group Quality Code of Conduct
Two activities to disseminate the Group Quality Code of Conduct
E-learning participation rate: 98.4%
Implementing multilingual e-learning programs
Introduction of an anti-fraud system
Zero violations of the Group Quality Code of Conduct
90% awareness of the Compliance Hotline
Measures
Activities to disseminate the Group Quality Code of Conduct (+ training programs about the Group Quality Code of Conduct)
Expansion of the Group Quality Code of Conduct to overseas sites
Creation of a quality compliance audit checklist
Activities to disseminate the Group Quality Code of Conduct
Conducting audits from a quality compliance perspective
Activities to disseminate the Group Quality Code of Conduct
Introduction of a quality data tampering prevention system into the Group
Deployment of the Group Quality Code of Conduct to all Group sites
Initiatives to Strengthen Quality Compliance
Initiatives of the Group Quality Compliance Committee
The Group Quality Compliance Committee, whose primary role is to address compliance risks related to quality held a lecture by an expert as an activity for FY2023 on points to consider in quality compliance audits, including analysis and auditing of quality fraud cases, and conducted an audit using the Group’'s common quality compliance audit checklist. In addition, the causes of quality fraud in our group were extracted using a fraud cause map chart compiled by a risk management specialist based on an analysis of the causes of quality fraud, and examples of quality fraud information of other companies were shared to discuss the causes behind fraud and measures to prevent recurrence.
The Committee plays a key role in assuring the quality of the Group and promotes the strengthening and improvement of quality compliance including group audits and training, in cooperation with the quality departments and audit departments of each company.
Group Quality Compliance Committee: FY2023 Agenda
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Date
Activity details
1st
July 10, 2023
Review / Discussion of other companies’ quality fraud cases
2nd
September 13, 2023
Lecture by an expert regarding quality compliance
3rd
December 13, 2023
Company Reports on quality compliance audits / Discussion of other companies'’ quality fraud cases
4th
March 13, 2024
Progress report on quality compliance audits / Discussion based on fraud cause map
Conducting Formulation of Audit Checklist Common to the Group from Quality Compliance Perspective
The CITIZEN Group has been actively devising quality compliance strategies tailored to the distinct circumstances of each constituent company within the Group and is conducting audit using the Audit Checklist from the standpoint of Quality Compliance which was created as a standardized measure across the Group in FY2022. To date, no serious problems have been found, however, some points have been raised regarding the storage and handling of quality data. Since the progress of the audit differs among the companies, it is reported to management (management review) as an interim report for FY2023. We will continue to conduct quality compliance audits across the Group in FY2024.
Items of Audit Checklist from Quality Compliance Perspective
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Major items
Audit items
1
Promoting awareness/understanding of The CITIZEN Group Quality Code of Conduct
1 item
2
Quality assurance departments
3 items
3
Quality-related data
2 items
4
Communication and information sharing with customers/suppliers/related departments
4 items
5
Handling of substandard products
3 items
6
4M change management
2 items
7
Internal reporting system
1 item
8
Triangle of quality fraud (KDS)
3 items
9
Auditing and checking functions
1 item
Total 9 items
Total 20 items
Executive Training
We invited outside lecturers to provide training on quality compliance to the directors in charge of quality and the heads of quality divisions at the six major companies in charge of business operations that belong to the Group Quality Compliance Committee, to instill a spirit of compliance with laws and regulations.
The purpose of this training is to ensure that all officers of the Group share a common understanding of the background and impact of the audits, and to instill an awareness of quality compliance throughout the entire Group.
Employee Training
The CITIZEN Group conducts this training as part of its training for new employees and newly appointed directors to raise quality compliance awareness throughout the Group. In addition, to cultivate a heightened sense of quality compliance across its workforce, e-learning training on The CITIZEN Group Quality Behavior Verification was conducted for all domestic employees and Japanese expatriates overseas in FY2023, achieving a participation rate of 98.4% having 6,184 employees participated.
Overseas Deployment of The CITIZEN Group Quality Code of Conduct
In order to raise awareness of quality compliance overseas, we have expanded the poster display of The CITIZEN Group Quality Code of Conduct, which had been implemented at our bases in China, to our manufacturing plants in Thailand, Vietnam, and the Philippines in FY2021. The CITIZEN Group Quality Code of Conduct includes not only quality maintenance initiatives, but also the ideal attitudes of a member of the Group, such as the attitude toward work. In situations where close communication has been difficult due to the COVID-19 pandemic, the poster display has been well received by our overseas employees as it makes them aware that they are also members of the Group and provides them with emotional support. We will continue to raise awareness of quality compliance by expanding the poster display to other sites.
Poster display at overseas manufacturing plants
Efforts to Prevent the Recurrence of Fraud
CITIZEN ELECTRONICS is working to strengthen quality compliance by conducting audits from a quality compliance perspective, implementing a system for the regular personnel rotation of department heads, and the pioneering introduction of a system within the Group to prevent quality fraud and data falsification, to nip fraud in the bud and curb it. In FY2023, we conducted quality compliance checks not only in Japan but also at our production sites in China to prevent fraud throughout the Group. Moreover, no quality fraud has occurred at the company since the implementation of measures to make departments independent, such as placing in-house accredited laboratories and quality assurance departments under the direct control of the president. These initiatives are shared among the CITIZEN WATCH Board of Directors and other members of The CITIZEN Group.
Efforts to Improve Customer Satisfaction
CITIZEN WATCH, a manufacturer of various products catering to the general public, has instituted a dedicated inquiry desk to promptly and genuinely address customer inquiries, consultations, and grievances. This initiative is geared towards elevating customer satisfaction. Noteworthy insights and issues communicated by customers are swiftly conveyed to top-tier management, facilitating timely action. This valuable feedback is further shared across all operational departments, paving the way for refinements in products and enhancements in services.
For situations necessitating immediate product repair or replacement due to significant incidents, notifications are promptly disseminated on the company's official website. In FY2023, the cumulative inquiries directed at CITIZEN WATCH amounted to 50,804, underscoring the company's dedication to fostering open communication and responding to customer needs.
[Case Study] CITIZEN MACHINERY Initiatives
CITIZEN MACHINERY, a leading precision machine tool manufacturer, conducts surveys targeting customers who have integrated the company's products. The aim is to gain insights into product usability and gather feedback on areas for enhancement. In instances involving issues or malfunctions, the company has established a proficient customer support manned by skilled product specialists. These specialists adeptly comprehend customer inquiries regarding product status, offer guidance on addressing the problem, and facilitate the dispatch of replacement components if needed. Should repairs be warranted, the company promptly coordinates the dispatch of repair personnel. Through these measures, the company is committed to swiftly and effectively addressing concerns, minimizing downtime, and mitigating any disruptions to the customers' business operations.
Customer inquiries are channeled internally and disseminated by the quality assurance departments, driving quality enhancements and influencing product improvements. To cater to global needs, the company offers repair and response manuals in English, ensuring comprehensive global support. Furthermore, efforts to elevate customer satisfaction are evident through the provision of an exclusive members-only online portal called the "alkartsite." Within this platform, members gain access to up-to-date product information, electronic manuals, and instructional videos showcasing operational and maintenance procedures.
Handling of Defects and Complaints
Both CITIZEN WATCH and CITIZEN WATCH MANUFACTURING have devised individual quality manuals and implemented Quality Management System (QMS) initiatives aligned with ISO 9001 stipulations. The primary objective of these manuals is to establish a robust framework for quality management across the watch business. They serve to uphold the quality policy, adhering to the standards set forth by The CITIZEN Group Quality Code of Conduct. Additionally, these companies engage in an annual internal audit to validate the efficacy of their QMS activities.
Customer complaints are managed in strict accordance with the Market Complaint Handling Standard and the Product Incident Response Standard. When complaints are received that carry the potential to drive product and service enhancements, the companies duly address them and integrate the insights into the Quality Standards. This integration involves additions to or revisions of the Standards. Swift action is taken when confronted with complaints relating to product quality. For significant cases, a comprehensive array of measures is deployed, including notifications to the Consumer Affairs Agency and the National Institute of Technology and Evaluation (NITE), as well as communication to senior leadership, including the president, during Management Meetings and other pertinent forums. Furthermore, pertinent information is disseminated on the company website through prominently displayed notices, signifying their importance.
Investigation and Corrective Action for Defective Products
Upon receiving a customer inquiry concerning a product defect, CITIZEN MACHINERY takes appropriate measures tailored to the situation. These measures can include dispatching replacement parts and organizing repair arrangements. In cases where the inquiry demands it, an emergency response meeting convenes, involving pertinent personnel to exchange information and probe the root cause of the issue. Following this, a recurrence prevention meeting is conducted, findings are reported to upper management, and corrective actions, encompassing product enhancements, are executed.
Furthermore, the company has established a quantitative confirmation system to tally the number of inquiries and complaints received. This system acts as a basis for making enhancements and streamlining processes.
In response to internally identified process defects, the company initiates strategies to avert future occurrences and ensure that flawed products do not reach the market. Vigilant monitoring of process defects is conducted, leading to updates of standard documents and work manuals and the execution of process enhancements. This concerted effort aims to curtail the incidence of defects. Swift dissemination of defect-related information to overseas bases ensures the swift implementation of countermeasures. Consequently, a uniform quality standard is upheld across all global sites.
