Introduction

Manufacturing and DX Strategy
Further improvement of added value

Related material issues

Productivity improvement

The introduction of these systems will enable us to interlink
with tools such as digital marketing and sales force automation,and to manage the entire series of business processes ranging
from marketing and sales activities to order receipt, production
planning, purchasing, and inventory management.
The introduction of the new SCP system in Japan wascompleted in FY2024, and we plan to introduce it at otherlocations globally from FY2025. In the future, we will be able toshare data seamlessly among all Group companies, allowing
us to formulate plans while responding to global fluctuations
in supply and demand.
Preparations for the introduction of the ERP are currently
underway, and full-scale operation of the new system isscheduled to begin in FY2026.

The IDEC Group has members with diverse cultural identities
and values around the world. In view of this, we have establishedthe IDEC Quality Standard, to ensure that all Group employees
can fulfill their responsibilities and mission with the same highstandard of quality.
We make continuous improvements by holding QC
circle activities at manufacturing sites both in Japan andoverseas, and conducting problem solving reviews at monthly
corporate-wide quality meetings, with the aim of creating avibrant workplace and improving customer satisfaction. We
also provide continuous quality education to all employees andencourage them to obtain Quality Management and Quality
Control Examination®* certifications, with the aim of raising
the quality awareness of each and every employee.
* The Quality Management and Quality Control Examination® is a registered trademarkof the Japanese Standards Association.

Business Strategy

the Core Competence Center) develops a diverse rangeof production equipment, and is working to strengthen
our manufacturing capabilities by introducing them atmanufacturing sites in Japan and overseas. We select andcombine the most suitable production equipment from a variety
of production methods in accordance with the characteristics
of product groups with different production quantities andshapes, and ensure the safety of the equipment by utilizing
IDEC switches and safety-related products.
In addition to strengthening our production framework, weare also accelerating DX efforts globally to improve operational
efficiency and streamline management. We are also engaged
in projects to renew our Enterprise Resource Planning (ERP)
platform, which is an integrated mission-critical system, andto actualize Supply Chain Planning (SCP) globally.

Initiatives for
Realization of Vision

To expand our business globally and improve profitability, we
are implementing corporate-wide structural reforms, and madesignificant organizational changes in FY2024. Executive Officer
Marc Enjalbert—CEO of APEM—is in charge of manufacturing,and is responsible for formulating strategies to improve
manufacturing efficiency and the service to customers, andreduce cost for the whole IDEC Group. We are also making aradical review of our production structure and processes toimprove quality and cost.
We established a new Core Competence Center within
our Manufacturing Department in FY2025. The Center has
headquarters located in Japan and Europe, consolidating its
functions to strengthen our global production capabilities.
The Manufacturing Technology Department (part ofImprove the quality of products

Value Creation Story

Improving productivity andoperational efficiency globallySafety, ANSHIN, and well-being

Message

Leveraging our extensive knowledge of HMI and safety acquired since the foundation, we provide high quality, reliable
products to customers worldwide. Also, our Manufacturing Technology Department takes initiative to design and develop
production equipment to enhance quality, production efficiency and automation.

Number of Quality Management andQuality Control Examination® certification holders
MASFA

MarketingAutomation

Sales Force
Automation

Ordermanagement

Production
planning/management
SCP (Supply Chain Planning)
ERP (Enterprise Resource Planning)

Quality assurance

Inventory management

Procurement
management(as of March 2024)

Suppliers

Grade 1 2
Grade Pre-1 7

Grade 4 161664

Grade 2 67

Foundation for
Value Creation

Core CompetenceCenter

Customers &distributors

employees

4 YoY
Example of head office system map following SCP/ERP system introduction

Grade 3 427

27 IDEC Report 2024

Data andCompany Overview

Global manufacturing sites