Difficulties in shifting from predominantly manual manufacturing to the introduction of mechanization, AI and IoT
First written in FY2018. 12 of 23 entries say "Mitigated", first in FY2019-Q2. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1MitigatedAnnual report
「As a result of efforts to optimize order prices while continuing to improve efficiency in the production division, revenue was ¥584 million, up 34.9% year on year, and segment profit was ¥118 million, up 86.5%.」
The company continued to improve efficiency in the production division and, together with appropriate order pricing, generated a substantial increase in segment profit. Progress was made in addressing the difficulty of improving efficiency in predominantly manual manufacturing operations. - FY2026WorsenedAnnual report
「In response to the recent increase in demand in the defense sector, unprecedented expansion of production capacity and productivity improvements are required. Going forward, we will seek to improve profitability through company-wide optimization by strengthening coordination between departments, rather than limiting our efforts to improving efficiency within the factory.」
Against a backdrop of expanding demand in the defense sector, the company has identified expansion of production capacity and cross-functional optimization as challenges, in addition to conventional manual work and equipment constraints. - 2026-06-02RaisedGeneral Meeting of Shareholders
「In response to the recent increase in demand in the defense sector, unprecedented expansion of production capacity and productivity improvements are required. Going forward, we will seek to improve profitability through company-wide optimization by strengthening coordination between departments, rather than limiting our efforts to improving efficiency within the factory.」
生産能力の拡大、生産性向上、部門間連携による全体最適を新たな対応方向として示している。 - FY2025WorsenedAnnual report
「Because our production equipment handles explosives and hazardous materials, it is not easy to replace or update, and it faces challenges including aging and declining efficiency. In addition, the chronic labor shortage has reduced the number of skilled workers, so we will advance automation with an emphasis on improving production efficiency while ensuring safety.」
In addition to aging and declining efficiency of equipment, the company explicitly identified a decline in skilled workers resulting from the chronic labor shortage. It also indicated a policy of advancing automation as a countermeasure. - FY2024WorsenedAnnual report
「Because our production equipment handles explosives and hazardous materials, it is not easy to replace or update, and it faces challenges including aging and declining efficiency. In addition, the chronic labor shortage has reduced the number of skilled workers, so we will advance automation with an emphasis on improving production efficiency while ensuring safety.」
In addition to aging and declining efficiency of equipment, the company explicitly identified a decline in skilled workers resulting from the chronic labor shortage. It also indicated a policy of advancing automation as a countermeasure. - FY2024-Q3AdvancedAnnual report
「In terms of earnings, the company reported lower revenue as several factors weighing on profit overlapped, including higher costs resulting from elevated raw material and energy prices and the expense burden from building renovations aimed at improving operating efficiency.」
Building renovations were carried out to improve workability, advancing specific equipment and facility improvements aimed at increasing manufacturing-process efficiency. However, the renovation costs were a factor behind the decline in profit. - FY2023MitigatedAnnual report
「In terms of earnings, the establishment of improvement activities aimed at increasing efficiency at production sites helped mitigate the decline in margins caused by higher costs.」
Improvement activities at production sites became established, mitigating the decline in margins caused by higher costs. - FY2023-Q3MitigatedAnnual report
「In terms of earnings, a decline in profitability was unavoidable due to soaring raw-material and energy prices and higher labor costs. However, efficiency improved through investigating the causes of even minor bottleneck processes and making successive improvements, and although profit declined from the previous fiscal year, the profit margin improved.」
To address the difficulty of improving efficiency in manual work and production processes, the company repeatedly investigated and improved the causes of bottleneck processes, leading to greater efficiency and higher margins. - FY2023-Q2MitigatedAnnual report
「However, from the current fiscal year, we reorganized the company according to product characteristics and rebuilt the production structure, while reviewing each process. As a result, production efficiency improved and profit increased.」
Organizational changes tailored to product characteristics, restructuring of the production system and process reviews advanced the response to the challenges of predominantly manual manufacturing, resulting in higher profit. - FY2023-Q1MitigatedAnnual report
「In terms of earnings, profitability improved through greater efficiency and labor saving at production sites, but the improvement was insufficient to offset the increase in fixed costs, and the Company was unable to secure a profit.」
Efficiency and labor-saving measures at production sites improved profitability and advanced the response to the challenges of predominantly manual manufacturing. However, they did not go as far as absorbing the increase in fixed costs. - FY2022MitigatedAnnual report
「In terms of profit and loss, profitability improved through greater efficiency and labor saving in production, but profit declined overall because the company continued to improve employee compensation as an investment to secure highly skilled personnel and increase employee motivation.」
To address the difficulty of improving efficiency in predominantly manual manufacturing, the company advanced efficiency and labor-saving measures at production sites, resulting in improved profitability. - FY2022-Q3MitigatedAnnual report
「Although expenses for internal infrastructure and personnel costs resulting from improved employee compensation increased, profit increased significantly because of efforts to improve productivity through the mechanization and rationalization of operations.」
Improving productivity through the mechanization and rationalization of operations led to a substantial increase in profit as the company addressed the difficulty of improving efficiency in predominantly manual manufacturing. - FY2022-Q1MaterialisedAnnual report
「Because products for the Ministry of Defense are produced in many varieties, each requiring corresponding equipment and worker assignments, they are inefficient and have thin margins. As a result, we were unable to recover the increase in fixed costs during the period, which put pressure on profit.」
The inefficiency and thin margins resulting from the equipment and worker assignments required for the many product varieties supplied to the Ministry of Defense actually put pressure on profit by preventing the recovery of higher fixed costs. - FY2021MitigatedAnnual report
「We have therefore been developing automation, labor-saving and systemization measures aimed at improving production efficiency and increasing the added value of our products.」
To address the challenges of predominantly manual manufacturing and the difficulty of mechanization and efficiency improvements, the company is strengthening its response to these risks by advancing automation, labor-saving measures and systemization. - FY2021-Q2RestatedAnnual report
「We maintained normal plant operations while ensuring employee safety and continued to improve work efficiency.」
The company continues to improve work efficiency in predominantly manual manufacturing, but no specific progress in the adoption of mechanization, AI or IoT was reported. - FY2021-Q1RestatedAnnual report
「However, the company has continued making capital investments aimed at improving product quality and efficiency.」
As measures to improve efficiency in predominantly manual manufacturing, the company continues capital investment aimed at improving quality and efficiency. No specific progress in the adoption of mechanization, AI or IoT was reported. - FY2020-Q3MitigatedAnnual report
「In the manufacturing industry, capital investment in rationalization and labor-saving measures has been increasing against a backdrop of labor shortages. We have also continued capital investment alongside a review of work processes aimed at improving manufacturing efficiency. In terms of earnings, process improvements for each product have produced certain results in reducing costs, but profit declined from the previous period because of capital investment, improved employee compensation and investment in human resources for business expansion.」
To address the difficulty of improving efficiency in predominantly manual manufacturing, the company reviewed work processes, made capital investments and improved production processes, achieving certain results in reducing costs. - FY2020-Q2RestatedAnnual report
「At the same time, we continued efforts to reduce costs through thorough efficiency improvements in manufacturing processes and worked to improve profitability.」
We continue to improve manufacturing processes in predominantly manual production, but no specific progress in the adoption of mechanization, AI or IoT was reported for the quarter. - FY2020-Q1RestatedAnnual report
「In terms of profit and loss, although the company continued to improve efficiency in the manufacturing process, profit declined year on year because of higher personnel expenses resulting from improved employee compensation and higher depreciation expenses from capital investment.」
We continue to improve process efficiency in predominantly manual manufacturing, but no profit improvement resulting from these efforts was reported for the current quarter. - FY2019MitigatedAnnual report
「Mechanization also has limitations because of the nature of our products. However, as a result of vigorously pursuing efficiency improvements within each production process, we have demonstrated cost reductions in the manufacture of some pyrotechnic products.」
Although the constraint that mechanization has limitations remains, efficiency improvements within production processes have demonstrated cost reductions for some pyrotechnic products. - FY2019-Q3MitigatedAnnual report
「Strengthening the production engineering structure at the manufacturing site, reviewing the work environment and improving efficiency helped reduce costs and improve the profit margin.」
To address the difficulty of improving efficiency in predominantly manual manufacturing, we strengthened the production engineering function, reviewed the work environment, and improved efficiency, leading to lower costs and higher margins. - FY2019-Q2MitigatedAnnual report
「From the second half of the previous fiscal year, we implemented organizational reforms to strengthen the production engineering function at our plants, while improving work efficiency at manufacturing sites and promoting the effective use of machinery and jigs.」
To address the difficulty of improving efficiency in predominantly manual manufacturing, we reorganized the production engineering function, improved work efficiency, and used machinery and jigs. - FY2018First statedAnnual report
「Given the characteristics of our products, the adoption of mechanization, AI and IoT requires extensive verification, and research and development must be conducted cautiously. In addition, because many manufacturing processes rely on manual labor, improving production efficiency presents certain challenges for the business.」
The special characteristics of pyrotechnic products and predominantly manual manufacturing processes have been identified for the first time as internal factors creating risks related to mechanization, the adoption of AI and IoT, and production efficiency.