Chapter 05

Initiatives in the Value Chain

Initiatives in the Value ChainYKK AP operates from a perspective of sustainability, based on the YKK philosophy of the “Cycle ofYKK Philosophy
Cycle of Goodness
P4

By creating added value in each of our monozukuri activities and proactively addressing various issues inPurpose
P5Goodness,” and the company’s Purpose.

Procurement Policy and CSR Procurement
The YKK Group has a procurement policy consisting oforganizational governance and human rights. In order toconduct CSR procurement based on this policy, we haveestablished a set of “Basic Transaction Principles” that explicitly
stipulate compliance with laws and regulations and fairtransactions. By FY2022, we had concluded agreements with
1,184 major business partners, achieving our FY2024 target for
the number of agreements in place. In addition, in FY2022, we
conducted a CSR questionnaire at all of our business partners
with whom we have concluded agreements to confirm thestatus of their initiatives. Going forward, we will administer thequestionnaire to our major business partners and those that
handle particularly important materials and parts.
YKK AP also conducts “green procurement,” which involves
prioritizing the purchase of environmentally friendly materials
in accordance with the “YKK AP Basic Policy on GreenProcurement.”

the SDGs, and to be a company that builds a better society through our business.

Three technical facilities and the Central Testing
Center Laboratory

Three technology facilities

Value Verification Center

Product evaluation and verification●Verification from users’ perspectives●Field verification●Analysis & simulation

Global R&D organization

Partners Support Studio
Quality, technology,and engineering proposals●Issues and requests fromprofessional users

Germany (Wuppertal)

Surveys and research on advanced
European window technology●●

Investigation/research on innovative
European technology
Research on advanced technology
aimed at high added value

Indonesia (Tangerang)

Japan (Kurobe)

Research and summary of climate andculture, construction conditions, andstandards●Passive design research for hot andhumid areas, research on windowsand doors●

Research and development ofwindows for hot and humid areas●

In-depth technology capabilities at
the Technology Headquarters

Co-creation of advanced themes
Research and development of coretechnologies, materials, manufacturing,products, and installation methods●Collaboration with the Value Verification
Center and the Partners Support Studio●Integration and sharing of the results ofeach Center●“WIDE VIEW SLIDING” product for wide openings (NEXSTA series)

effective ventilation. In October 2022, we launched "WIDE VIEWSLIDING" in the NEXSTA series for luxury custom-built homes tomeet the need for products for wide openings. Taking
advantage of our knowledge of technological development inJapan in areas such as design and component structure, weensure the necessary performance required in the areas whereour products are used.

Technical Research Division initiatives
Technical Research Division, established in FY2023, is
responsible for technology, research, and development from a
global perspective. It is working on technology, research, anddevelopment for new technologies and new materials,
including the development of recycling technology to achieve a
100% aluminum recycling rate and the development of organic
materials to become carbon neutral. It is also striving toadvance our technologies in existing areas, such as building
technologies for ultra-high thermal insulation glass. Moreover,through joint research with external research institutions,efforts are underway to promote the development andexchange of human resources.

In keeping with the YKK Philosophy, Management Principle,and Purpose, we are strengthening our partnerships withsuppliers and business operators in the supply chain with theaim of fulfilling our social responsibilities. In June 2022, wedrew up and announced the “Partnership Building Declaration”
with the aim of building relationships of co-existence andmutual prosperity.
CSR Procurement Promotion Goals(Companies)

Number of companies that have agreed
to the Basic Principles of Procurement(cumulative total)

Number of companies for which CSR
surveys have been conducted(cumulative total)
1,184

1,200

Corporate DataYKK AP has also strengthened its global research anddevelopment system. In addition to Japan, R&D centers havePartnership Building Declaration

Initiatives in the Value Chain

Global R&D organization

Intellectual Capital
P17

Business Strategies for Growth

The YKK AP R&D Center, Value Verification Center, and Partners
Support Studio, all located in Kurobe City, Toyama Prefecture,
are responsible for the cycle of development, evaluation andverification, technical proposals, and information communicationthat form the foundation of YKK AP’s monozukuri process. TheYKK AP R&D Center is a center of technology and expertise
which develops high-quality products. The Value Verification
Center conducts “user verification” using consumer monitorsand “field verification” that reproduces the natural environment.
Finally, the Partners Support Studio presents proposals aimed
at addressing the issues of professional users, based on ourtechnology. Furthermore, the Central Testing Laboratory, a JNLA
testing laboratory that meets international standards, reinforces
our product quality assurance system through rigorous testing.

been established in Germany and Indonesia to conduct
research and studies in different regions: Japan for warmer
regions, Germany for colder regions, and Indonesia for hot andhumid regions. This information is compiled and shared todevelop products optimally suited to each region.
At the YKK AP R&D Center (Germany), we investigate andresearch innovative European technology in the fields of energy
conservation architecture and building materials, and promotehigh added-value in windows and doors through functionalparts, thermal insulation of windows and doors, and frames andglass, etc.
At the YKK AP R&D Center (Indonesia), we conduct
investigations, research, and development related to energy
conserving construction methods and windows and doors
suited to hot-humid regions, as well as research on passive
design (the design of comfortable living environments thatutilize natural energy). As part of a joint industry-governmentacademia research project on “energy-conserving multi-family
residences for middle-income residents,” we are measuring theeffectiveness of using windows and entrance doors that provide

Foundations Supporting our BusinessResearch, Development and Verification

Value Creation

the infrastructure that supports these activities, we hope to contribute to solving social issues and achieving

Messages from Management

Materials Procurement

1,184

1,184

1,000821

800
600
400
2000325848 48

20192020

2021

2022

2023
(Targets)

2024 (Fiscal year)(Targets)YKK AP R&D Center

Creation of technological information and product development●Accumulation and aggregation of findings and data
●Joint research toward solving issues

50

Details of the YKK Group Procurement Policy, YKK AP Basic Policy on Green Procurement, and the Partnership Building Declaration are presented on the website.
https://www.ykkap.co.jp/company/en/sustainability/procurement/

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Chapter 05

Initiatives in the Value Chain

Integrated production system

Integrated production system
P18
YKK Philosophy,
Management Principle,Purpose
P4-5

Smart factory
P41

Sales
BtoC and BtoB activities
For end-user customers and professional users, we provide
information on safe, secure, healthy, and comfortable
homebuilding through our showrooms and web content.
Furthermore, since 2002, we have maintained a businessalliance in the remodeling field, the “TDY Alliance,” with TOTO
Ltd. and DAIKEN Corporation. Information on remodeling isdelivered through 13 collaborative showrooms nationwide,fairs and events, as well as a joint website.

SE (Sales Engineers)
One of our greatest strengths in terms of proposal capability is
our sales engineers (SE), who make technical proposals
together with sales representatives. Our 49 sales engineers
belong to the Product Development, Residential Business
Department in Product Research & Development Division, andare located at 10 sites in Japan. Our proposals are based on ourknowledge of housing as a whole, and are designed not onlyfor new construction but also for the revitalization of the marketfor stock housing. We also provide information to help address
the requests and problems of professional users, tailored to thecharacteristics of individual regions, such as verifying the valueof shutters in snowy areas.

Business Strategies for Growth

The so-called “2024 problem” will arise in April 2024, when an
overtime limit for truck drivers will be imposed. YKK AP began
developing new pallets in FY2016 to improve delivery
efficiency. In FY2019, we endorsed the “White Logistics”
campaign initiated by the Ministry of Land, Infrastructure,
Transport and Tourism, aiming to promote logistics efficiency
and productivity improvement to realize sustainable logistics.
Specifically, we have introduced a “unit load” system that
efficiently transports cargo in units such as pallets andcontainers, enabling efficient loading and unloading that does
not rely on driver experience and intuition. In addition, Y-Caps,a proprietary system designed to efficiently load pallets onto
truck beds, identifies the optimal combination of products andpallets to improve truck loading efficiency and enable optimal
dispatch management. Moreover, in order to reduce work hours
associated with various logistics processes, we are pursuingsustainable logistics through joint transportation with othercompanies, thereby reducing drivers’ time commitment.

Foundations Supporting our Business

Another important issue is to create a safe and healthy
workplace for employees involved in manufacturing. We are
creating a stress-free and fulfilling workplace by installing airconditioning equipment and air-conditioned clothing tocombat heat, and improving the environment of the cafeterias
and restrooms. To enhance safety, we also continue to conduct
regular equipment and machinery safety audits every threeyears to ensure the intrinsic safety of our equipment. Inaddition, since FY2021, we have been identifying andimproving “shortcut behaviors” and “troublesome tasks” in theworkplace in order to eliminate all unsafe practices. Starting inFY2023, we will provide training to workplace leaders toincorporate hazard prediction into their training, further
strengthening safety awareness.

Value Creation

Upholding the spirit of YKK founder Tadao Yoshida, who laid thefoundation for the company’s integrated production system,YKK AP has integrated all monozukuri processes at its own
manufacturing sites in Japan and overseas.
Currently, we are working to further enhance our technologicalcompetitiveness through seamless and rapid collaboration
between our development and manufacturing departments
and Machinery and Engineering Department, which is responsible
for the development and manufacture of specialized equipment
to make our products. In addition, we are rolling out technology
developed in Japan to overseas markets, as shown by the
introduction of the labor-saving APW line, a vinyl window
manufacturing line used in Japan, to the residential vinyl
windows plant being built at YKK AP AMERICA INC. Goingforward, we will pursue a shift to smart factories and aim to
improve productivity through DX.

Logistics

Messages from Management

Manufacturing and Logistics

Health and safety

Initiatives in the Value Chain
Corporate Data

Unit loading facilitated by the introduction of the proprietary Y-Caps system

Shutter side pressure verification using reproduced snowfall

Details of customer satisfaction initiatives are presented in our Sustainability Databook. (in Japanese only)
https://www.ykkap.co.jp/company/jp/sustainability/data/social/

52

Saitama MADO (Window) Plant

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Chapter 05

Initiatives in the Value Chain

Installation

In accordance with its Product Safety Basic Policy, YKK AP iscommitted to providing information to ensure that customers
can use its products safely and with peace of mind. In addition
to paper manuals, QR codes are printed on product labels sothat customers can easily access usage, care, and traceability
information.
In addition, the official YKK AP app “AP Poke Navi” offers push
delivery and provision of information on how to use and carefor products, as well as on preparing for disasters such as
typhoons and heavy rain.

Foundations Supporting our BusinessIn 2013, YKK AP established the “Installation Skills Training
Academy” in collaboration with the “YKK AP Group Installation
Cooperative,” which consists of sash and curtain wall installation
specialists with advanced installation skills, in an effort totransfer skills and develop human resources. The academy
trains installation technicians for a minimum of six years, and acumulative total of 311 young technicians have participated in
the program as of FY2022. Overseas, we have establishedinstallation training centers and conducted installation training
in China, Taiwan, and Indonesia to support the improvement oflocal installation technicians’ skills.

Providing information to customers

Value Creation

The Field Technical Center (FTC), located in Fabrication
Technology Department in the Manufacturing Division,
provides technical support to enhance the competitiveness ofdistributors, who serve a variety of functions in the completionof building homes, as well as providing training and guidanceon assembly and delivery to ensure product quality. Assigned tothe FTC are 39 FEs, engineers who are active on the front lines
of installation sites, working at 14 locations nationwide.
Currently, the FTC is expanding its educational programs forFEs, responding to requests for improvement from installationsites, and supporting sales expansion by enhancing installation
training for remodeling products, thereby contributing to theimprovement of our product appeal and technology capabilities.

Co-creation to improve installation quality in Japanand overseas

Messages from Management

FE (Field Engineers) and the FTC

Product Use

Providing support information through the “AP Poke Navi” appBusiness Strategies for Growth

QR Code on a product label

Initiatives in the Value Chain

Internal FE installation training

On-site installation training in Taiwan

Corporate Data

Note: “QR Code” is a registered trademark of Denso Wave Incorporated.

Labor-saving in installation work

Maintenance support

With the aging of installation technicians and the increasing
workload at construction sites, the FTC is also working to savelabor in installation through the development and operation ofinstallation jigs. The “Folded Plate Lifting Roller” provides
support for lifting folded plates, the material used for roofing
carports. Other new developments include a “diamond cutter
dust collection cover” that improves safety and the working
environment for installation technicians with its superior dust
collection performance, and a “simple hand crane” that assistsin the loading and unloading of trucks.

To ensure long and safe use of our products, we aim to improve
the quality and consistency of our maintenance support. The
Maintenance Business Development Department in Residential
Business Division takes the lead in sharing information with theMaintenance Centers in each region. Further, we launched theYKK AP Certified Maintenance Technician Association to certify
installation technicians with superior skills, and by having themjoin the association, we are strengthening our maintenancesupport capabilities through technical training and otherprograms. In addition, we are working on the maintenance ofelectric equipment using digital tools.

Installation using the “diamond cutter dust collection cover” (top right)

Maintenance of electric equipment using digital tools*No. of Certified Technicians: 541 (as of June 1, 2023)

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