.5%35
reduction

Reduction rate of changes at the design stage

Quality
Each individual employee of the TEL Group strives to understandthe true needs of customers, and we provide high quality
products and services to satisfy our customers by continuously
working to improve quality through our respective work.

The concept of high quality manufacturing
The TEL Group promotes the concept of high quality manufacturing throughout
our entire company. From the Development and Design, Purchasing, Productionand Manufacturing, and Shipping Departments directly responsible for ourproducts to the Planning and Sales, Administration, and Service Departments
supporting them, we constantly strive to improve quality to meet and exceed theexpectations of our customers.
Planningand Sales
Dept.

In order to improve quality, reducing the numberof changes during the development and designphase is necessary. As a result of improvement
efforts on an ongoing basis, the number ofchanges at the design phase for fiscal 2014
decreased by 35.5% from fiscal 2011.

DevelopmentandDesign Dept.

Purchasing
Dept.

Service Dept.

Quality Promotion Framework
President & CEO

Production andManufacturing Dept.
Shipping Dept.

Administration
Dept.

Aiming to increase the quality of all departments

Quality promotion framework
The TEL Group has established a cross-divisional TEL Group Quality Promotion
Framework led by four working groups. These working groups cooperate witheach other for efficient and stable quality control with the goal of improving
customer satisfaction.

Initiatives for improving quality
In order to increase efficiency and design quality, the TEL Group employs astrategy of early detection to solve potential problems in the early phases ofproduct development. As a result, it is highly important to correctly identify andpinpoint potential problems during the early stages of design. To guarantee thehighest possible quality, we expanded our training programs created to improve
design quality and skills and built a matching framework to test them.
In the future we will be increasing efforts to use appropriate analysis
techniques to improve equipment design quality and build quality as well asreduce man-hours and development costs, and use evaluations to properly
measure and reward employee skill and improve motivation.

General Manager ofProduction Division
Presidents ofGroup companies
Heads of GM
committeesTechnology ProductionControlGMCommittee Committee| Glossary |16*1 TPM activities: Total Productive Maintenance or Management.

Quality GMCommittee* Working group members
DesignParts
Standardization Standardization consist of general managers,
department managers orWorking
Working
representatives from plants*Group*Group*and offices in Japan.

Analysis education using the Internet

I n Fo c u s From the manufacturing workplace—Improving quality and productivity through TPM activities

The TEL Group has continued to implement TPM activities for the last 10 years to maintainand improve overall productivity. We have implemented our TPM systems throughout ouroffices and manufacturing locations. In addition to establishing TPM as an instrumental
component of our employee training, we are also working closely with the Design andAdministration departments to tackle challenges and develop new improvements to quality
and productivity across all divisions.

Material GMCommittee

Secretariat(Quality
Promotion
Department)*1