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There are growing expectations around the world for companies to become more involved in community development. Our goal is to help realize a sustainable society by harnessing the Hitachi Group’s integrated capabilities to help propel development forward in all communities while strengthening collaboration with stakeholders.
Hitachi Construction Machinery has engaged in the parts remanufacturing business since 1970. This business involves collecting old parts that were replaced during machine repair work and then restoring them at our parts remanufacturing plants. Newly remanufactured parts are then sold to customers at a reasonable price after undergoing considerable quality assurance steps ensuring they are as good as new parts.
This parts remanufacturing service includes removing core parts* from customers’ machines on site and then replacing them with remanufactured parts already in stock. These used core parts are then brought back to one of our parts remanufacturing plants for remanufacturing, after which they are stocked in preparation for the next order. Therefore, compared to repair parts services where a broken part is brought back for repair and then reinstalled in the machine on site at a late date, our remanufacturing parts service helps to shorten the downtime of customers’ machines. For this reason, our remanufacturing parts service is an ideal option for customers who want to maintain a high utilization rate of their machines while keeping costs down as much as possible.
Additionally, our parts remanufacturing plants maintain technologies for reusing many parts that otherwise would be discarded. This greatly reduces the amount of waste compared to conventional repair services. When customers elect to use our remanufacturing parts service, they are helping to alleviate environmental issues, including climate change.
Furthermore, we gather information on core parts and share this with development-related departments in an effort to constantly improve the quality of our products. Typically, the manufacturer is responsible for any defects that occur during the warranty period, so most of the market information that is provided to development-related departments is within the warranty period. Conversely, there is a shortage of information on product faults after the warranty period. Amidst this, a majority of the core parts handled by our remanufacturing parts service are out of warranty, so we are able to provide various detailed and quantitative data to development related departments, enabling us to improve the quality of our products and utilize this data in the development of next-generation models.
In this manner, we now engage in the parts remanufacturing business, which generates a great deal of value for society and the environment, too, at 12 of our manufacturing bases around the world, as of March 31, 2017.
* Core parts: Parts from which used components can be salvaged for remanufacturing and reuse. Core parts indicate those that are regularly replaced after being used for a targeted time interval when operating a machine under a preventive maintenance program.
Parts remanufacturing plant creates jobs in the local community
The parts remanufacturing plant operated by Hitachi Construction Machinery Zambia Co., Ltd. (HCMZ) opened in the spring of 2012. The facility covers key components for mining machinery operated in Zambia and Mozambique. Mining machinery operated in Zambia go through a large number of parts, so much so it is said that a brand new machine can be purchased every three to four years just with the cost of these parts. For this reason, reducing running costs has become a significant challenge for our customers locally. Our parts remanufacturing plant in Zambia is able to supply parts quickly and reliably to these harsh work environments from its facility inside the country.
Also, this facility is closely rooted in the local community and actively hires people from the surrounding area. Currently, it employs a workforce of 161, with 139 of these people Zambian nationals. Employees hired locally undergo on-the-job training (OJT) so that they obtain the technical skills needed in a timely fashion.
In August 2016, HCMZ nearly doubled the size of this parts remanufacturing plant. Until now, HCMZ has mainly supplied remanufacturing parts to locations inside of Zambia, but through this expansion, the facility is hoping to increase its capacity to supply remanufactured parts to the entire continent of Africa. For this reason, the facility is planning on hiring more people and the Government of Zambia has high expectations for the facility’s future.
HCMZ employees in front of the parts remanufacturing plant’s addition
Our remanufacturing center in Tsuchiura, Japan, has developed an educational program involving customer visits based on proprietary curriculum, in an effort to further improve our parts remanufacturing technologies. This program is intended mainly for junior engineers with between two and five years of experience. The goal is to refine remanufacturing technologies by sending these employees out to see the front lines of manufacturing, including at customer facilities.
In FY2016, program participants visited a dedicated manufacturer of hydraulic couplers and hydraulic piping, where they deepened their knowledge about manufacturing. In FY2017, visits are scheduled for a manufacturer of casted products for trucks and construction machinery, a manufacturer of various springs and stamped products, and a manufacturer of metal piping and other metal products.
Additionally, we actively promote outside education as well. For example, related departments, such as the Mining Operations Group, work together to hold practical training for component parts and inviting engineers from overseas to attend. In FY2016, this training was provided to service technicians from Kenya and India.
Looking forward, we will continue to plan educational programs from various vantage points in an effort to increase the production efficiency of our regional parts remanufacturing plants and enhance the skill levels of the people working there.
Engineer from Tata Hitachi Construction Machinery Company Private Limited attending the training
In China, it remains difficult for people to change their family register from a regional or rural area to an urban area. There are only a limited number of spots reserved in urban public schools for children with a rural family register. There is also an economic burden placed on these families as well from attending public school outside of the location of their family register. For this reason, when the parents must migrate to an urban area for work, the children are often left behind in their rural hometown. This situation has led to various social problems, including the decline in academic performance of children in rural areas and an added mental burden for these children.
In June 2009, Hitachi Construction Machinery (China) Co., Ltd. donated two million renminbi (about 30 million yen) to Hefei City in the form of an educational fund. In April 2010, this 400,000 renminbi was withdrawn from this fund to help fund the construction of Hitachi Construction Machinery Songgang Xi Wang Elementary School. Since then, Hitachi Construction Machinery (China) Co., Ltd. has continued to work with the school and in fiscal 2016 it arranged the donation of Hitachi-made projectors for use in its classrooms. Furthermore, assistance is provided so that after graduating from this school students have the option to acquire skills for their future, which includes attending Hitachi Construction Machinery (China) Career Development Center (formerly Hitachi Technical School). Efforts are also being made to develop a positive relationship with the school so that students have the option of working for Hitachi Construction Machinery.
In June 2017, when Hitachi Construction Machinery (China) opens its doors to the public, students of the school will be invited to visit the company in order to learn more about Hitachi Construction Machinery and tour the premises.
Students and faculty of Hitachi Construction Machinery Songgang Xi Wang Elementary School
There are very few training institutes for obtaining operator credentials for construction machinery in Omuta City, Fukuoka Prefecture and the nearby area including Kumamoto Prefecture. Until now, staff from Hitachi Construction Machinery Training Center had to make the long trek from the Fukuoka Training Center in northern Fukuoka Prefecture for on-site instruction. However, the local Labor Standards Inspection Office and customers preferred to have a proper training institution set up in the area. The Hitachi Construction Machinery Training Center learned from Hitachi Construction machinery Japan Co., Ltd. about a customer supporting the reconstruction effort from the April 2016 earthquake in Kumamoto that they were facing challenges because no training institution existed locally for obtaining operator credentials.
As a result, the Omuta Branch of the Hitachi Construction Machinery Training Center was opened and began operations on April 1, 2017 in order to fulfill this need and contribute to the area as part of the reconstruction assistance taking place in Kumamoto Prefecture. The building and practice grounds are leased from Omuta Truck Transport Co., Ltd., as costs were minimized in terms of exterior and interior design when setting up this location.
The opening ceremony held on March 28, 2017 was attended by many local companies as well as the head of the Omuta Labor Standards Inspection Office. Many have high expectations for the Hitachi Construction Machinery Training Center’s new local branch. Hitachi Construction Machinery Training Center’s operations have a highly public nature as it is contracted by the regional Labor Bureau to promote the acquisition of operator credentials. Going forward, we will continue working with Hitachi Construction Machinery Japan Co., Ltd. to fulfill its corporate social responsibilities.
Hitachi Construction Machinery Training Center’s Omuta Branch
Cambodia is known to be one of the most heavily land mined countries in the world. Even today, many years after its civil war ended, people are still injured or killed by land mines. This represents an important issue for Cambodia in achieving the SDGs.
Since fiscal 2007, the HCM Group has donated funds to NPO Good Earth Japan (GEJ) to support local people in using land for their independent life after removal of land mines. In terms of support activities, GEJ began with the development of physical infrastructure such as roads, reservoirs and flood control work, and now it is focusing on support activities through instruction in infrastructure maintenance and agricultural skills such as rice cultivation, poultry farming, and mushroom cultivation.
We will continue to work with GEJ on support activities with the goal of achieving a peaceful and prosperous society for all the people of Cambodia.
Tata Hitachi Construction Machinery Company Private Limited implements various initiatives for community development based on its “promise to improve the quality of life of communities” found in its CSR policy. Tata Hitachi Construction Machinery Company Private Limited teaches its employees that they must strive to gain opportunities to provide the company’s technologies and services widely to society in order to make their own life better and to fulfill the company’s social responsibility of building stronger communities.
One of the company’s most well known initiatives is the development of construction machinery operators. Tata Hitachi Construction Machinery Company Private Limited opened an operator training school in Kharagpur, India in 2012, where it provides vocational training to unemployed young people. The school also manages a database of their profiles and training status that it shares with dealers and customers (in particular new companies) in an effort to promote employment opportunities for these unemployed young people. To date, more than 300 unemployed young people have undergone training and most have found a job either within India or in another country.
Tata Hitachi Construction Machinery Company Private Limited will continue to contribute to community development by supporting youth skills training and employment.
Young people can acquire new skills using the HCM Group’s latest machines