Electronic components KPI (Interim Version 1.0)
As of June 30, 2010

No.

KPI

Description
To understand the company's quality
management of products

KPI formula
Number of recalls due to the cause of troubles
and failures

Practice Example
Sample Business Case: ABC company

1 Number of recalls

Number of recalls
To understand the company's quality
management of products

Number of claims due to the cause of troubles
and failures

2 Number of claims

3

Number of critical incidents which affect humanbody2009 2008
202009 200800

Sample Business Case: ABC company

Product

Number of criticalincidents occurredElectronic Materials
Electronic Devices

Number of critical incidents occurred
2009
2008
0010

Ex. Business Case: ABC company
To understand the degree of impact for Average life of products which is derived from the Sample
clients' decisions to buy products
results of internal endurance test
Average Life
Product(years)
4 Average life of productsElectronic Materials
5Electronic Devices
4.5
Other Devices
6Others
3.8

5 Sales by main productTo understand which products
company mainly focuses on under thestrategy

To understand the company's
Number of clients topossession situation of own products
which products were6
which are developed using own
delivered listing by maintechnology and process.
product
To understand the company'scompetitiveness of each product78

Sales by main productSample Business Case:

Number of competitors by main product©2010 WICI Japan all rights reserved.

Sample Business Case: ABC company

To understand the market size and their Market size by main product：Market size for each Sample Business Case: ABC company
areas of specialityof main productProductMarket
Market share by main product：Sales by main
High-frequency
component
6000
product / Market size by main productTo understand the company's
innovative power and strength

New product sales by main product / Total sales
by main productSample Business Case: ABC company

To understand the strength ofconnection with setmakers

Number of joint developments with setmakers

Sample Business Case: ABC company

New product ratio (NPR)
9by main product

Number of joint
10development projects

Product
Number of clients to which products are delivered
Inductive device
3
Piezoelectric material product1

Product
Numbers of competitors
Laminated ceramic capacitor
6
Mechanical module
3

Number of competitors
by main productMarket size and shareby main productSample Business Case: ABC company

Product
Sales y/yHigh-frequency component 600 105%

Number of clients to which products weredelivered listing by main productProductHigh-frequency component

Sales
600

New product sales
4002009
Number of joint developmentswith setmakers

Relation withFinancials

Merit/NeedProvided once a year Cost of goods sold It shows the company's efforts foraccording to the fiscal
quality management and provides theterm.
information which enables customers
to make purchase decisions.

Sample Business Case: ABC company

Number of claims
To understand the company's qualitymanagement

Application Date

Total sales
1,200

2008
5

Market10%

6New product ratio
30%

Provided once a year (Future) sales
according to the fiscal
term.

It shows the internal management for
quality and reputation risks.

Provided once a year Particular charge
according to the fiscal
term.

It shows the company's efforts for
quality management and provides theuseful information which enables
clients to make decisions to buy
products safely.

Provided once a year Noneaccording to the fiscal
term.

It shows the company's efforts for
quality improvement and enduranceedge of products.

Provided once a year Sales,
according to the fiscal Profitabilityterm.

It shows linkages between thecompany's products and theperformance.

Provided once a year Sales
according to the fiscalterm.

It shows the degree of peculiarities
and unfungibility for each product.

Provided once a year (Future) sales,
according to the fiscal Profitabilityterm.

It shows the degree of peculiarities
and unfungibility for each product.

Provided once a year Sales,
according to the fiscal Profitabilityterm.

It shows the market growth potential
and own edge.

Provided once a year Sales,
according to the fiscal Profitabilityterm.

It shows the company's growthpotential through its own technicalinnovation efforts and theperformance.

Provided once a year (Future) sales,
according to the fiscal Profitabilityterm.

It shows the joint developmental status
with setmakers of future earnings
information.

No.

KPI

Number of
11 developments of newuse

Description
To understand the company's
innovation of technology

KPI formula
Number of developments of new use

Recycling rate of components

Recycling rate of
12components

17

Number of overseas
manufacturing bases

19Operating rate byoverseas area©2010 WICI Japan all rights reserved.

Provided once a year (Future) sales,
according to the fiscal Profitabilityterm.

It shows the potential of market growthwhen existing products' use becomeswider.

Provided once a year Noneaccording to the fiscalterm.

It shows the company's greatawareness of enviromental issues andits efforts to improve with corporatesocial responsibility.

Provided once a year Selling, general,
It shows the progress of technicalaccording to the fiscal and administrative succession and educational training toterm.
expenses
the next generation employees.

It shows the possession situation oftechnical skills and professional
human resources.

Provided once a year Noneaccording to the fiscal
term.

It shows the characteristics and theage composition of engineers in thecompany.

Provided once a year Noneaccording to the fiscal
term.

It shows the company's efforts toreduce manufacturing costs by shifting
production overseas.

Provided once a year Manufacturingaccording to the fiscal coststerm.

It shows the company's efforts toreduce labour costs in manufacturing
processes.

To understand the company's efforts to Total amount of costs when a part of theSample Business Case: ABC company
reduce manufacturing costs
manufacturing process is outosourced to the otherOutsourced manufacturing cost
manufacturers
Electronic materials
300
Electronic devices
500
Recording devices
1,000
Others400

Provided once a year Manufacturingaccording to the fiscal coststerm.

It shows the aspect of manufacturingcosts as well as the status ofoutsourcing utilization.

To understand the efficiency of theproduction line and its capacity

Provided once a year Manufacturingaccording to the fiscal costs,term.
(Future) capital
investment

It shows the equipment operating
status and the production availability
as productivity and efficiency ofproduction lines.

Name of qualification
Electronic assembly

Number of qualified workers
300

To understand the characteristics and Average age/average length of service of
the age composition of engineers in the engineerscompany as well as if the company
keens to employ mid-career engineers

Sample Business Case: ABC company

To understand the company's efforts to Number of overseas manufacturing bases otherreduce manufacturing costs by localthan Japanproduction

Sample Business Case: ABC company

To understand the company's use ofcheap labour

Sample Business Case: ABC company
Average
Area
wage
U.S.
400,000
Europe380,000
China
280,000
Others200,000

Average wage by geographic area

Average wage by
geographic area

Total amount of
18 outsourced
manufacturing costs

FY 2009 FY 2008
250
220

Sample Business Case: ABC company

Merit/Need

Provided once a year Noneaccording to the fiscalterm.

Number of workers who
14 have technicalqualifications

16

Recycling rate of2009
2008
94%
92%
93%
91%

Human capital investment (training cost etc.)

Relation withFinancials

41

Number of ISO approval obtained suppliers/Total Sample Business Case: ABC company
number of suppliers

To understand the company's technical Number of workers who have technicalskills
qualifications

Average age/average
15 length of service ofengineers

Number of developments of use
2009
2008
32Sample Business Case: ABC company

Electronic Materials
Electronic Devices
To understand the company's humancapital investment to gain sustainable
competitive advantage

Application Date

Sample Business Case: ABC company

Electronic Materials
Electronic Devices

To understand the company's
environmental activities

Total amount of human
13 capital investment(training cost etc.)

Practice Example

Operating rate by overseas area

EngineersAreaU.S.
EuropeChina
OthersAverage age Average length of service
45.2
23 years

Number of manufacturing bases
5040
20
12Sample Business Case: ABC company

Area
U.S.
EuropeChina
OthersOperating
87.5%
85%
90%80%

No.

KPI

Description
To understand the important area todevelop the global strategy

2021

KPI formula
Sales by geographic area

Number of clients by
22 geographic area andaverage trading period

Sales
2,000
1,500
1,000700y/y
85%
90%110%120%

To understand the company's potential Sales to non-Japanese firms
to expand the business to the global
marketSample Business Case: ABC company

To understand the global distribution of Number of clients by geographic area: Total
clients and the global market
number of clients of each area
development in relations with them
Average trading period: Total length of trading
periods of each client / Total number of clients ofeach area

Sample Business Case: ABC company

To understand the dispersion ofresearch and development around theOverseas research and world
23development costs©2010 WICI Japan all rights reserved.

Sample Business Case: ABC company

AreaU.S.
EuropeChinaOthers

Sales by geographicarea

Sales to non-Japanesefirms

Practice Example

Total amount of overseas research anddevelopment costs

Sales to non-Japanese firms

Area Number of clients
U.S.A
EuropeChinaOthers

100705030

FY 2009 y/y
3,000 110%

Average trading
period
81535

Sample Business Case: ABC company

Research and development cost FY 2009
300
Overseas
400Japan

y/y
110%
105%

Application Date

Relation withFinancials

Merit/Need

Provided once a year Sales
according to the fiscalterm.

It shows linkages between strategic
important areas and the performancefor global development.

Provided once a year Sales
according to the fiscal
term.

It shows degree of business dispersion
around the world.

Provided once a year (Future) sales
according to the fiscal
term.

It shows the company's performancein customer retention as well as
customer loyalty.

Provided once a year Research andIt shows the company's adaptability toaccording to the fiscal development cost, local market needs.
term.
(Future) sales