Social Report
Relationship with Customersand Suppliers

The TEL Group sets honest policies for
product quality and procurement aimed
at satisfying customers and enhancing
growth with suppliers.

Approach to Product Quality

Approaches to Procurement

The TEL Group aims for product quality that generates customer

In accordance with its corporate philosophy, the TEL Grouptrust in its products and services through continuous provisionbelieves in the importance of growing its business together withof products and services that consistently satisfy its customers.

its suppliers through building partnerships based on mutual trust.

In order to ensure that our manufacturing systems do not
produce defective products, we have acquired ISO9001

Q Procurement Policy of the TEL Groupcertification and also work to ensure that our product quality

1. Partnerships

management system operates effectively.

Q TEL’s Commitment to Quality
1. Quality is our top priority
TEL’s goal is to achieve the highest quality in the world.

2. Product quality awarenessAll employees must understand the importance of product quality to TEL’sbusiness. Quality must always be given priority, even if profits are temporarilyaffected. That is how we build long-term trust, and contribute to society.

3. Observing company rules
Employees must observe the rules stipulated by each TEL organization toensure that quality remains our top priority and continues to improve. Theserules and regulations are reviewed regularly to ensure that they areappropriate and effective in our effort to improve quality.

4. Employee responsibility
Employees are responsible for making product quality their top priority. They
must remain aware of potential problems, actively identify and analyze them,and take necessary action for improvement.

5. Managers’ responsibility
Managers must monitor on-site conditions at all times, spot problem areas,
and give instructions for improvement. Managers must ensure that theirsubordinates have a good understanding of the overall TEL businessenvironment, including customers’ requirements, and must makeemployees aware of the importance of enhancing the quality of all TEL
products and services.

Quality Assurance System
The TEL Group has established a quality committee comprisingheads of the quality assurance departments of each businessSuppliers represent a key business partner to developing products that cangain the true satisfaction of customers. The TEL Group selects its suppliers inaccordance with its selection criteria in a fair and equitable manner based on
the precondition of free competition and that suppliers continue to pursue
high value-added technologies. We will continue to build relationships withour business partners that enable both parties to grow and that are based on
mutual trust.

2. Cost reduction
The TEL Group will reduce its total costs in order to provide products alignedto market needs at satisfactory prices.

3. Lead time reduction
The TEL Group will reduce product delivery lead time and ensure stable supplies
of its products to customers in order to agilely respond to market needs.

4. Coexistence with the global environment
The TEL Group will proactively employ components and technologies that areconsiderate of the global environment (promotion of green procurement) andundertake product manufacturing with a reduced impact on the environment.

5. Global procurement activities
The TEL Group will flexibly and speedily promote global procurement
activities in order to provide to its customers components and technologies
that conform to market needs.

6. Compliance with legal and social codes
The TEL Group will adhere to the laws, regulations and social codes of thecountries and regions in which it operates, and will undertake honest
procurement activities grounded in sound corporate ethics so that it can berecognized as a leading company globally.

7. Product quality/safety assurance
Under the management policies “safety first” and “quality is our top priority,”
the TEL Group will continue to seek quality and safety in its components andproducts on a global level.

8. Information management
The TEL Group will rigorously manage and safeguard confidential informationfrom its customers and suppliers obtained through its business activities.

unit. The committee meets regularly to oversee efforts toCommunication with Suppliers

enhance product quality and address priority issues, thus

The TEL Group not only uses EDI* for procuring parts andpromoting improvement and enhancement of product quality formaterials, but also operates its own website as a two-way tool

the entire Group.

for communicating with suppliers.
We make daily efforts to address a variety of challenges

Q Framework for TEL’s Product Quality System
President of Tokyo Electron

Quality
Promotion
Department

Executive Vice Presidents of Tokyo Electron(General Manager of the Quality Division)

faced by our suppliers, and we seek to share the values set out
in our corporate philosophy using various platforms, including
the Production Update Briefing
held semiannually by theGroup’s manufacturing
companies and the annual TEL

Presidents/GMs of TEL Group companies
Quality Committee
Heads of the quality assurance
departments in the TEL Group
Quality Committee

Partners Day.
* EDI (Electronic Data Interchange):
A framework to electronically exchange
information related to commercial
transactions among corporations in a
unified standard format.

26

TEL Partners Day
held in fiscal 2011