Corporate Philosophy
Since its founding, FANUC has maintained a consistent management policy. Below is a summary of FANUC's business activities, as well as the management policy that will continue to guide FANUC's current and future activities.
Research & Development
FANUC develops competitive, high-quality products. These successful products reflect FANUC's aggressive, well-funded and strongly supported R&D programs, carefully focused on long term future requirements. This strong R&D effort remains the foundation of FANUC's management philosophy.
There is a Japanese proverb which says "Breeding counts for more than birth", meaning that any underprivileged person can make up for his or her disadvantages at birth through rigorous effort and personal initiative. With regard to its products, however, FANUC believes that birth is more important than breeding. In other words, without a good, solid design from the beginning, it would be more difficult and costly to produce low-cost, high-quality products for today's markets. No matter how hard we strive to make improvements at the production process, a weak initial design is difficult and costly to overcome. This is the reason why FANUC has always placed Research & Development as its top priority and as the foundation of its management practice for its entire enterprise.
At FANUC's laboratories, engineers have always designed and developed FANUC products with a view to keeping costs at a minimum. FANUC first conducts a thorough research of the market to set competitive prices and meet targeted costs. To design the products to meet these targeted costs, FANUC engineers also give consideration to automation and robotization of the production facilities. The development engineer remains engaged as the production manager at the earlier stage of production and assumes responsibility to ensure the new product meets the cost and quality targets established in the R&D phase.
FANUC laboratories also retain and learn from after-sales service data to enhance the reliability of FANUC's next generation products. This process of continuous research and development, accurate and practical feedback, and unrelenting improvement is how FANUC develops, produces, maintains and services high-quality, low-cost products and retains valued customers year after year.
Specializing in Core Businesses
FANUC's core products are CNCs and servo motors.
Since FANUC started developing numerical controls (NCs) and servo motors in 1956, we have consistently manufactured products that contribute to factory automation and robotization of production facilities operated by our customers. Drawing on the success of our core computer numerical control (CNC) and servo motor technologies, FANUC has added robots, ROBOSHOT, ROBOCUT, ROBODRILL, and ROBONANO machines, as well as modern, state-of-the-art laser systems, to these established core products.
By focusing on these core technologies, FANUC has realized speedy and efficient technological advancements and continuous product development and improvement. Based on the long-term accumulation of the core technologies in this narrow field, FANUC develops, manufactures, sells and services products with unrivalled performance and reliability and has therefore achieved a well recognized strong competitive edge in the global market. FANUC's continuing success with CNCs and servo motors helps all FANUC products gain and maintain superb global market share.
FANUC believes there will be an increased demand for robotization at production sites worldwide and will continue to walk a "Narrow Path" to develop, produce and market our core CNC and servo motor technologies as well as their application products, robots and Robomachines, coordinated to maintain and enhance the company's outstanding efficiency and profitability.
Development and Production at the FANUC Headquarters
All FANUC products are developed and produced in Japan.
FANUC's R&D laboratories are all located adjacent to FANUC Headquarters in Japan, which is very important for the company's efficient research and development program. FANUC currently has no plans to relocate its R&D activities. By basing its laboratories at the FANUC Headquarters, where most of the key FANUC factories are located, we have pursued research and development while simultaneously developing advanced production technologies and procedures. This has increased the speed of new product development, lowered production costs, and enhanced product reliability.
FANUC is a manufacturer of capital goods which are produced in a significantly lower volume than consumer goods. This is the reason FANUC does not transplant its production base outside Japan. Concentrated, centralized production enables FANUC to reduce production costs. FANUC's robotized factories help reduce labor costs and respond flexibly to increases and decreases in the production volume of specific products. Thus, FANUC will continue production at its factories in Japan and will not transfer its factories overseas.
Factory Robotization
FANUC uses its own products in production.
FANUC incorporates broad robotization into all manufacturing activities, with more than 1,000 robots now operating at FANUC factories. FANUC is also rapidly installing intelligent robots to enhance the efficiency of its machining and assembly processes, promoting the increased technical and financial benefits of advanced automation at its own factories. By making the most of its vast experience in using its latest advanced products at its own production facilities, FANUC has demonstrated that automation and robotization bring high efficiency and cost reductions to manufacturing and production processes.
Emphasis on Financial Performance
FANUC maintains a continuous review of its profitability and business practices, with rapid, positive and helpful follow-up to ensure thorough resolution of problems discovered at any organization within the FANUC Group.
FANUC emphasizes strict financial management and knowledgeable, effective oversight. Monthly board meetings of FANUC LTD, its domestic and overseas subsidiaries, and its affiliated companies, are held either at FANUC Headquarters or at its overseas companies, or sometimes through teleconferences to review financial reports to verify profit and loss trends, and to review in detail the assets and liabilities of each company. These meetings also look into the profitability and practices of each business segment, as well as to enhance financial transparency throughout the enterprise. Any issues that may arise are immediately addressed and resolved by the joint efforts of the FANUC Headquarters staff and the company concerned.
Human Resources
FANUC appoints young, capable people to positions of responsibility.
The concept of lifetime employment and the seniority system have been traditional Japanese business practices. FANUC maintains lifetime employment to stimulate and maintain the motivation of its people. On the other hand, FANUC does not have a seniority system because it significantly deteriorates management efficiency. As a result, we have been able to appoint young and capable people to responsible posts, including board members, with considerable success.
Overseas Group Companies
FANUC applies its policies to its overseas Group companies, and at the same time, promotes localization.
FANUC's overseas sales accounts for more than 60% of total sales, and many FANUC Group companies that have been established across the globe are engaged in sales and service activities to meet the specific needs of each market. These overseas companies put a special emphasis on training local employees. They learn not only technical aspects of FANUC products, but also FANUC's culture and company policy, including "Genmitsu", a Japanese word for exactitude and strictness, and "Transparency" in the conduct of all business activity.
On the other hand, FANUC carefully selects, develops and appoints local persons as president and to other important posts in overseas FANUC enterprises. This policy enables local management to efficiently resolve their unique problems concerning the local language, customs, cultures, and laws and regulations.
Organization
FANUC maintains a flat organization of optimal size with selected people.
As a company grows, its organization tends to become multi-layered and dense. FANUC believes that this tendency to increase bureaucracy complicates reporting processes and prolongs the time it takes for decision-making. To mitigate these negative effects, FANUC has intentionally flattened its organizational structure to insure responsiveness and to avoid an overly complicated, stratified organization. To consolidate the reporting process, an overseas staff member may sometimes report directly to the top management, in addition to the usual reporting sequence, to speed up problem identification and related decision making and to support effective problem solving.
In addition, FANUC maintains an optimal size organization with a minimum number of employees, while enhancing the operating efficiency. Also, employees' motivation is increased through a merit system, various opportunities for promotion, and generous benefit packages.
Genmitsu
FANUC maintains a common guideline across the company operations.
FANUC's common guideline across the company's operations is called "Genmitsu", a Japanese word for exactitude, strictness and perfectionism. FANUC has long focused its attention on the concept of Genmitsu in setting and maintaining standards of its operations and will continue to do so in the future.
