Together with Customers: Quality Assurance Activities
Since its founding, N.E. CHEMCAT has provided high-quality products and services that earn theconfidence of customers and meet their expectations. We strive to improve our quality on a daily
basis so that we can work with customers to provide them with optimal solutions.

Quality Assurance Activities
Quality Policy
In order to ensure our customers receive high-quality
products, we have implemented a Quality Policy and arealways striving to further improve quality.

Quality Policy
1. This is our quality policy:(1) We provide quality that satisfies customers andearns their confidence.
(2) Through the efforts of all employees, we aim forcontinuous quality improvement.
2. In order to fulfill this quality policy, we implement the following measures:(1) Create a quality management system that is ISO
9001 compliant, and strive for continual system improvement.
(2) Ensure that each department sets and implements
its own quality targets, monitors their progress, andreviews them regularly.
(3) Review the appropriateness of our quality policy
during management review activities.
(4) Inform all members of the organization of our quality policy and enhance their understanding.

Continuous Quality Improvement
N.E. CHEMCAT makes the following efforts to continuously
improve quality.
 Internal Bodies for Quality Improvement
The company has established the following bodies forquality improvement, and has established a system enabling departments to cooperate for enhancing quality.
- Audit Reporting Committee- Quality Committee- Quality Manufacturing Liaison Committee- Quality Defect Reporting Committee- Quality Patrol Global Cooperation System
Our technology transfer system has been created to enable manufacturing of auto exhaust and other catalysts
developed in Japan at overseas production plants without
any loss of product performance.
We also regularly share technical information with theBASF Group and adopt the latest technology to further enhance quality.
Global System of Cooperation with the BASF Group

Quality Management System
At N.E. CHEMCAT, the General Manager of the Production& Technology Div. is ultimately responsible for service
quality assurance and product liability, and oversees thecompany's quality assurance activities.
Our quality management system has been certified under the ISO 9001 and IATF 16949 programs, and we provide a stable supply of high-quality products.
Business Sites That Have Acquired Quality Management
System Certification
ISO 9001:2015

Numazu Plant

IATF 16949:2016(Auto exhaust catalysts)

Head office, Numazu Plant, andTsukuba Plant

Quality Audits
Based on our quality management system, each plant conducts external and internal quality audits once a year.

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SUSTAINABILIT Y REPORT 2023

● N.E. CHEMCAT● Joint ventures of BASF and N.E. CHEMCAT (exhaust catalysts)■ BASF production and R&D sites (exhaust catalysts)▲ BASF production sites (process catalysts)

SOCIAL Customer Satisfaction Surveys
We often work closely with our customers, from catalyst development to scale-up. In order to further improve customer satisfaction and quality, we conduct
an annual Customer Satisfaction Survey. The results
are used for our continual quality improvement.
Quality Awards Received in FY2022
Daihatsu
Motor

Quality ExcellenceAwardMay 2022

Quality Control Training
N.E. CHEMCAT actively conducts quality control
training to improve the abilities of human resources involved in quality control. This includes Quality
Management System (QMS) basic training, IATF tooltraining, and internal quality auditor training.

Main Quality Control Training in FY2022
Training programs

PlantsFundamentals of manufacturing

Numazu / Tsukuba

Introduction to IATF for new process owners /scopes due to organizational change

Numazu /Head office

IATF process approach

Tsukuba

IATF standards study group

NumazuIATF core tools

Head officeCorrective action review using QMS-style cause
investigation diagram and Naze-naze Analysis

NumazuSupplier Audit Approach

NumazuMeasurement system analysis (MSA)

Tsukuba

Measurement instrument and apparatus
management

Tsukuba

CP and P-FMEA preparation

Numazu / Tsukuba

Lean Six Sigma Activities
Lean Six Sigma (LSS) is a globally recognized management approach for quantitative improvement of processes and quality.
In addition to being a means for operational improvement, LSS
activities are also helping us to develop the human resources
who will be the leaders of tomorrow. Our employees are able
to comprehensively develop the four skills required for Green
Belt (GB*1), Black Belt (BB*2), and Master Black Belt (MBB*3). We
have expanded the scope of activities every year since beginning these activities in 2019. During the 7th term in 2022, webegan GB development in the head office and in Development,in addition to Manufacturing. We have also embarked on MBB
development further enhance LSS activities and certified thefirst MBB in the company during the 7th term.

LSSactivities

Number of GB/BB/MBB Certified Personnel
GB40BB30
20
1012

618MBB

21

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0032

3038

31Term 1 Term 2 Term 3 Term 4 Term 5 Term 6 Term 72019 2020 2020 2021 2021 2022 2022

second first second first second(firsthalf ) ( half ) ( half ) ( half ) ( half ) ( half )*The numbers for 2021 (first and second half) were changed
due to revision of the aggregation method.

Four Personal Skill Categories Fostered by LSSTeam management
Stakeholder management
Decision making and final decision making
Personal leadership development
Team member leadershipdevelopment
Team member motivation

Statistical techniques
Risk analysis and risk management
Data collection and analysis
Utilization of statistical software

Projectmanagement

Leadership

Four
Personal SkillCategories
Numericalanalysis skills

LSS tools

Business process improvement
Solving actual problems (realizationof improvement opportunities)
Creative thinking
Change management
Continuity and management
Report presentation skills
Identification and prioritization oforganizational interests
Six Sigma methodology
Lean methodology
Customer orientation
Process conceptualization skills*1 Green Belt (GB)This is the first level of LSS qualification. Leads an LSS project within the scope of normal business activities.
*2 Black Belt (BB)This is one level higher than GB. Provides guidance and advice to GBs and leads an LSS project that spans multiple areas.
*3 Master Black Belt (MBB) Qualified to assume responsibility for development and establishment of company-wide LSS activities as routine practices.
An MBB manages LSS projects, formulates medium- and long-term plans for LSS activities, supports management,
conducts training, coaches projects, and improves the level of recognition of such projects in the company.

SUSTAINABILIT Y REPORT 2023

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