︱

Foundation of Sustainability Management ︱SocialQuality Control
Basic Principle

Initiatives for Ensuring Quality

Group Companies withISO Certification⨋ Management System

Management
Meeting

Approves annual activity
plan for QMS and EMS

EachdivisionOnce a year

Scope of ISO 9001 Certification

https://www.sanki.co.jp/en/csr/social/quality/
Our Response to
ISO 9001 and ISO 14001
Noncompliance (FY2019)• C
 onducted ethics seminars forrelevant divisions

P. 46

General manager of the Quality and Environmental Management Office
Company-wide QMS andEMS Office Conference

3 companies:
Sanki Engineering Co., Ltd.
Sanki Chemical Engineering &Construction Co., Ltd.
Kankyo Service Co., Ltd.

• P
 enalty for directors (reduced
compensation)

Quality Policy and Environmental Policy
Reports on Company-wide activities
and decisions on plans
Once a year

• I SO 14001

• V
 oluntary suspension of ISO 9001
and ISO 14001 certifications

Top Management (President)

ISO
Promotion
Conference

2 companies:
Sanki Engineering Co., Ltd.
Sanki Kankyo Service Co., Ltd.

Quality Control▍Quality and Environmental Management System• I SO 9001

SocialWe have integrated and implemented QMS (ISO 9001) and EMS (ISO 14001) at eachdivision in the Facilities Construction Business, Plants & Machinery Systems Business,and Environmental Systems Business.
Risk management is conducted in advance of the actual work for construction
and production to maintain and enhance quality. We also recognize that responding
to problems and complaints promptly and appropriately is a fundamental aspect of
quality management, and we take actions to consistently raise the standards of ourmanagement system.
In fiscal 2019, the quality management of the division in charge of a SankiEngineering Group project was found to be out of compliance. Activities put in place toprevent recurrence are now practiced as standard procedure to maintain and improve
our quality management system.

Foundation of Sustainability Management

We will raise customer satisfaction and deliver new value for society by fully demonstrating the Sanki EngineeringGroup’s comprehensive capabilities and proposal-making capabilities to provide products that meet customer needs ineach business area and for high-quality systems.

Environmental Management System

Company-wide QMS (Sustainability Promotion
Division)and EMS Office

Divisional managers(heads of sections, general managers of the headquarters, general managers of research
centers, heads of business divisions, presidents of branches and branch offices)

Divisional
Management Review

Reports on divisional activities andformulation of plans (twice a year)

Quality and Environmental Management Officer
Divisional QMS and EMS Office

Sales, design, production, construction, and office duties⨋ Major Management System Strengthened in Fiscal 2022

The Facilities Construction Business worked on reducing the workload of site operations
as well as on improving design and construction quality in accordance with therevision of operational flow carried out in fiscal 2021. These efforts helped improve
design reviews, clarified quality targets, and led to fewer problems and complaints.
Furthermore, we strengthened the quality management system by reviewing and

SANKI REPORT 2023

55

︱Foundation of Sustainability Management ︱Social︱Quality Control

standardizing the format for function test results provided to customers.
The Plants & Machinery Systems Business advanced its initiative to create a databaseof construction undertaken by the Company to boost the effectiveness of its quality
control. As for the Environmental Systems Business, it continued to improve thechecking system for each process, including stricter design reviews.
⨋ Sharing Information and Preventing the Occurrence of Problems andComplaints
We accumulate and share our quality-related experiences across the Company bymeans of technical documents in order to prevent the occurrence of problems andcomplaints or, in the event they do occur, to handle them quickly and effectively.
We strive to prevent recurrences by distributing information about problems andcomplaints to construction engineers through a flash bulletin, a weekly bulletin (aweekly meeting of the Problems and Complaints Review Committee, which is also
attended by Group companies in and outside Japan), and a monthly bulletin, which
not only reports the occurrence of issues but also discusses their causes, corrective
measures, and preventive measures. In fiscal 2022, we revised the format for the flash
bulletin and strengthened our engagements to identify the root cause of issues toimplement the necessary measures.
In addition to efforts to share information, quality risk assessments are conductedby the Quality Risk Subcommittee set up under the Risk Management Committee. We
also endeavor to prevent problems and complaints by identifying risks that may affectquality and quickly taking action.
We set a target to achieve zero problems and complaints attributable to us in theongoing construction, and in fiscal 2022 we reduced them by 25% (down 18 cases)
year-on-year thanks to various measures for providing onsite support. In fiscal 2023, weplan to reinforce the analysis and feedback procedure of our Quality Control Center toreduce initial errors.
⨋ Understanding Customer Satisfaction and Reflecting Feedback

In our work to improve construction quality, we conduct a customer satisfaction survey
at the completion of construction work and reflect the feedback in our operations.
In fiscal 2022, we received highly positive feedback from about 92%* of the 653
respondents. Looking ahead, we will continue to incorporate customer opinions into
our operations to enhance construction quality.

A poster for raising awareness of
preventing problems and complaints
is created each month and displayed atworksites.

*C alculated by regarding the following
responses as “highly positive feedback.”
Facilities Construction Business: scoreof 4 (“Somewhat satisfied”) or higher
out of 5; Plants & Machinery Systems
Business: score of 3 (“High”) out of 3;
Environmental Systems Business: scoreof 70 points or higher out of 100.

Initiatives for Ensuring Quality at Construction Sites⨋ Operational Support to Improve Productivity and Maintain High Quality

Sanki Engineering implements the Smile Site Plan, intended to create a rewarding
workplace that encourages staff to focus on their tasks by reducing workloads atconstruction sites and creating effective working environments, to satisfy bothcustomers and the Company while maintaining high quality.
Under the Smile Site Plan, we are leveling operations by establishing and effectively
implementing an operational support system for the processes of sales, design,
procurement, construction management, and quality management to improve
productivity while maintaining high quality. In an effort to simultaneously improve
productivity and maintain high quality, we particularly emphasize design verificationand pre-construction reviews before starting construction work, to raise productivity
and avoid quality risks and to prevent rework, problems, and complaints. In addition,
we are promoting digitalization, including the adoption of BIM, to further boost
productivity.

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SANKI REPORT 2023

P. 68
Promoting the Smile Project⨋ Initiatives for Improving Quality by Promoting DXSG

Environment

SocialGovernanceDigital Tools Developed by the
Sanki Engineering Group•A
 utomated robotic air flow
meter

Automatically measures the air flowfrom air conditioner vents.
Expected to reduce manhours by
75% compared to the conventional
process.

⨋ Initiatives for Design and Technical Operations

Air-flow measurement by an automated robot

SocialQuality Control

We are working on improving quality throughout the construction process from planningand design to completion. In design, we identify and resolve issues at an early stage toensure quality by enhancing design reviews and improving the design accuracy.
In technological management, we facilitate onsite operations after the start ofconstruction work by holding commencement discussions to decide on construction
methods, procedures, and policies that result in higher quality and productivity.
Moreover, we avoid falsifications and deficiencies in quality across all processes by
having line staff and the Quality Control Center conduct stringent checks and followups. We will continue to improve quality and hand down technical expertise by having
highly skilled quality assurance administrators and technical experts conduct audits
during and after construction, implement quality confirmation and corrections, andmentor junior employees.
As a result of the revision of our quality manual and standards and reviewing ofoperational processes undertaken in fiscal 2021, the number of design reviews doubled
in fiscal 2022. We also strengthened risk assessments at the upstream stage. These
efforts have led to fewer problems, complaints, and corrections after construction andhave helped prevent profitability from deteriorating.

Foundation of Sustainability Management

The BIM Promotion Center leads BIM efforts within the Company and subcontractors
and in improving the usage rate of BIM-linked software as well as the participation
rate in BIM education. In fiscal 2022, we conducted in-house education to encourage
the use of BIM. We also implemented the M&A of a company that has provenexpertise in BIM.
In April 2023, we established the DX Promotion Division. We will advance theapplication, research, and development of digital tools for planning, construction,
and acceptance inspections to save labor in construction work while improving
construction quality by alleviating the burden of management operations. By bolstering
the application of DX to operations across the Company, including construction sites,
we will establish more comfortable workplace environments.

E

Quality check by a quality assurance
administrator▍Initiatives on Design and Technical Operations at Construction Sites
Upon Receiving Orders
Design Review
The Design Division’s Design Center and Quality Control
Center lead the design reviews to confirm whether therequired level of quality is met, by scrutinizing construction
operations from the aspects of quality and cost. Also, design
drawings will be more accurate.
Quality Risk Assessment
The Quality Risk Subcommittee of the Risk Management
Committee assesses quality risk. Divisions related totechnology and the Quality Control Center set the quality
targets and identify and address quality risks.

At Start of Construction
Commencement Discussions
Divisions related to technology, onsite
managers, and divisions related tobranches and branch offices determine
the construction method (procedures)and quality targets. The Quality Control
Center checks aspects concerning quality,
construction work, costs, processes, andsafety; identifies items requiring changes in
specifications and plans; instructs on concretemeasures; and considers design changes.

During Construction
Construction Audits
Confirmation of construction work, including
design changes, is led by divisions related totechnology, onsite managers, divisions related
to branches including branch offices, and the
Quality Control Center.
Completion Audits
Check whether quality targets for the design
are being achieved and offer instructions forcorrections as needed.

Enhancing Our Technologies⨋ Technical Awards for Improving Construction Methods andOperational Processes
We have been presenting awards for excellent ideas that improve operational
processes, such as raising efficiency, in addition to ideas that improve construction
work. In fiscal 2022, we received 2,087 applications.

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︱

︱

SocialFoundation of Sustainability Management ︱Quality Control⨋ Fostering Human Resources to Sustain Our Technological Competence

The Sanki Techno Center provides training to help employees acquire basic skills, brushup on their skills, and attain qualifications. New employee training was conducted inperson by implementing tighter infection prevention measures in the accommodationarea, lecture area, and experience area. We also conduct training for construction
managers every three years, with content corresponding to number of years ofexperience. We develop the skills of our engineers through hands-on practice and drills
using actual machinery and facilities at the Sanki Techno Center.

Training for new employees▍Number of Personnel with Quality-Related Qualifications (as of April 1 of each fiscal year)
FY2022
Qualification

FY2023

Consolidated

Nonconsolidated

Consolidated

92

102

80

93

1,125

1,277

1,061

1,225

Architect

37

42

38

42

Facilities construction architect

201

210

179

190

Electrical engineers

162

236

150

230

Professional engineers
Construction managing engineers (civil works,
construction, electrical construction, pipe-laying works)

Nonconsolidated

Chief electrical engineers

26

34

24

36

First class instrument engineers

297

306

284

294

Fire protection engineers
Qualified managing engineers

699

783

662

722

1,635

1,921

1,529

1,806

21st conference on electrical construction
qualityNote: Cumulative figures are shown for all qualifications.
▍Major Skill Development Activities for Fiscal 2022
Initiatives

Initiatives
at the Sanki
Techno Center

Initiatives forpassing ontechnology

Initiatives
for Groupcompanies andsubcontractors

Training

Description of Training

Results

Training for new employees• Seminar for new employees, basic skills training

64 participants

Correspondence course for attaining
qualifications• Preparation for qualification exams for construction
managing engineers and fire protection engineers

125 participants

Training based on operational experience
Third (fourth) year in construction work
Sixth (seventh) year in construction work
Ninth (tenth) year in construction work

• 3- to 5-day training sessions that are held 2 to 5 times per
year at 3-year intervals• S tandardized group-based training according tooperational experience• Technical training using actual equipment and mock-ups• D rills for preventing problems and complaints required inconstruction management

On-the-job training by technical experts• Practical on-the-job training offered by technical experts
selected from all branches who participate in onsite
commencement discussions and construction audits

25 technical experts made 1,343 site visits(cumulative total)

Conference on electrical construction
quality• Test of practical skills for electrical technicians fromsubcontractors of all branches, written exam based on pastcases. Participants receive the Sanki Engineering-certified
Class A Electrical Engineer qualification

17 participating technicians from 18
subcontractors• C ase studies at liaison meetings held at branches andbranch offices

Number of sessions
Tokyo branch: 12, Kansai branch: 25,
Chubu branch: 11, Kyushu branch office:
43, Hokkaido branch office: 5, Chugoku
branch office: 10, Tohoku branch office: 12,
Hokuriku branch office: 3

Explanation of problems and complaints

Held 8 times

114 participants⨋ Collaborating in the Industry through Open Technology

Construction instructions for the Aluminger®* aluminum refrigerant piping method
developed by Sanki Engineering have been made available to the Aluminum Plumbing
Equipment Association. By promoting the adoption of our method, which reduces
labor by 25% compared to conventional methods, we are contributing to standardizing
environmentally sound technology across the entire industry.

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SANKI REPORT 2023

*A new construction method whereby
lightweight aluminum pipes, insteadof copper pipes, are connected withspecialized tools to save labor.