Improving the Order-Taking Process and Tightening Project Selection and Approval
First written in FY2016. 7 of 13 entries say "Advanced", first in FY2019. Latest entry: FY2026.
The whole theme swung hardest in 2021: 1 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「To further strengthen project risk management from the pre-order stage through completion, we established the Project Management Headquarters in January 2025 and are developing a comprehensive and independent risk management framework covering not only projects led by our company but also projects originated independently by operating bases.」
The company reconfirms its policy of pursuing comprehensive and independent risk management, centered on the Project Management Headquarters, covering not only company-led projects but also projects originated independently by operating bases. - FY2025AdvancedAnnual report
「During fiscal 2024, we advanced discussions on strengthening risk management across the entire Group rather than at individual companies. In January 2025, we established the Project Management Headquarters as the organization responsible for promoting and implementing these measures. In addition to strengthening our response capabilities during the project execution phase, an initiative we have pursued for some time, we are working to strengthen project-screening capabilities during the order-taking phase by rigorously improving risk sensitivity, actively using Lessons Learnt (lessons and feedback from past projects), and appropriately assessing risk appetite when selecting high-quality projects.」
For project screening, the scope of management has been expanded from individual companies to risk management across the entire Group, and the Project Management Headquarters was established in January 2025. Operations are being formalized to incorporate Lessons Learnt and risk appetite assessments into pre-order screening. - FY2024RestatedAnnual report
「● Pre-order stage (project screening and estimation) For each project, we review the technology and scope of work, identify and assess risks, consider their potential impact and probability of occurrence, and formulate rational response measures. To this end, and to ensure transparency and checks and balances in the formulation process, we have established, built and operated the following framework.」
The company continues its order management framework of pre-order project screening, risk identification and assessment, deliberation by the Risk Countermeasures Committee, the Executive Management Meeting and the Board of Directors, and final approval by the President, CFO and others. - FY2023RestatedAnnual report
「● Pre-order stage (project screening and estimation) For each project, we review the technology and scope of work, identify and assess risks, consider their potential impact and probability of occurrence, and formulate rational response measures. To this end, and to ensure transparency and checks and balances in the formulation process, we have established, built and operated the following framework.」
The company reconfirms its traditional order management framework, comprising pre-order project screening, risk identification and assessment, deliberation by the Risk Countermeasures Committee, the Executive Management Meeting and the Board of Directors, and final approval by the President, CFO and others. No new completion track record or numerical targets are presented. - FY2021AdvancedAnnual report
「To further strengthen risk management, which is fundamental to the business, we are pursuing thorough order and execution management. As a result, gross profit margins on current EPC projects have improved substantially compared with projects undertaken before the turnaround plan was implemented.」
The company states that continued rigorous order and execution management has resulted in a substantial improvement in gross profit margins on current EPC projects compared with those before the turnaround plan. - FY2019AdvancedAnnual report
「Meanwhile, to avoid repeating past failures, the selective order-taking approach based on rigorous risk screening that our Group has pursued since formulating its turnaround plan in fiscal 2015 is beginning to bear fruit. Specifically, we are focusing our order-taking activities on projects involving products and regions in which we have particular strengths, strengthening Board governance over risk measures for significant and novel projects, and maintaining a system under which senior management, namely the President, Vice Presidents and CFO, jointly approve projects before estimates are submitted.」
The company continues its selective order-taking and joint approval by senior management, and has demonstrated a track record of successfully completing and handing over the Setouchi mega-solar project, the gas and chemicals complex for Turkmenistan, and the chemical fertilizer plant for India in fiscal 2018. - FY2017RestatedAnnual report
「Although losses arose in executing the US ethylene production facilities project, we also worked to secure gross profit at the time of order acceptance by strictly complying with the order-taking process and to contain selling, general and administrative expenses through year-round cost reductions. These efforts had a meaningful effect on improving profitability.」
The company reaffirmed its existing measures to strictly comply with the order-taking process and secure gross profit at the time of order acceptance. No specific numerical results or completion milestones were provided. - FY2016First statedAnnual report
「Specifically, to improve the order-taking process, we will ensure that, at the initial proposal stage, each project’s strategy meeting thoroughly discusses geopolitical considerations, customer characteristics, partner evaluations and the collaboration policy, including locations. At the final stage, we will operate a strict approval process involving the president, Chief Financial Officer (CFO), director responsible for corporate management and head of the relevant business division, in order to ensure the rationality and transparency of decisions and an effective check-and-balance function.」
A measure to strengthen the rationality, transparency and check-and-balance function of order decisions by separating the initial project assessment from final approval.