4.0 The impact of RoHS directive on the company

4.1 Strategic Quality Management

Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved, assesses its competitors and sets goals and strategies to meet all existing and potential competitors, and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment, or a new social, financial, or political environment. It is also a very important part of the operations of a business entity as it focuses on finding out the weaknesses and turning them into strength. For the purpose of fully complies with the global quality standard, Panasonic have built some strategy quality management.

Firstly, Panasonic has a quality management policy, "Customer comes first & manufacturing based on the fundamentals". This policy is the very fundamental of all corporate activities. To satisfy the increasingly diversified needs of modern society, the company have newly added the three quality elements of S (safety and speed), M (morale), and E (environment) to the conventional three quality elements, which are Q (quality), C (cost), and D (delivery as scheduled). In a broad sense, Panasonic consider overall quality to consist of these six elements as product quality and are committed to quality improvements.

In addition to conventional quality management system, Panasonic have built superior quality management system that fully complies with the global quality standard (ISO/TS 16949:2002) that have been applied to the automotive manufacturing industry. Adopting also the elements and philosophies of total quality management (TQM), the company are committed to contributing to the improvement of corporate and organizational management in terms of quality enabling companies and organizations to be respected entities, and to establish an empathetic relationship with interested parties to share mind-evoking experiences.

The impact of RoHS directive on the company has caused leading companies in the electronics industry to begin a significant shift in the materials they use in their products. Directive on the Restriction of the Use of Certain Hazardous Substances in

Electrical and Electronic Equipment (RoHS Directive) states that, by July 1, 2006, no new electrical and electronic equipment put on the market may contain lead, mercury, cadmium, or hexavalent chromium. Polybrominated biphenyls(PBBs) and polybrominated diphenyl ethers (PBDEs) are two types of flame retardant also prohibited. There are exemptions for some uses of mercury in fluorescent bulbs, and for lead in glass used in CRTs and in solder used in servers and other network infrastructure.

The major electronics manufacturers generally make design changes and adopt new technologies on a global scale, affecting all of their products regardless of where they are manufactured and sold. Panasonic, which like other companies in the industry foresaw the coming changes during debate over the RoHS Directive, converted all its television production facilities worldwide to the use of lead-free solder by March 2003, ensuring that televisions with lead-free solder. Most of the major electronics companies have set their own targets for meeting the RoHS deadline ahead of time. An industry leader in converting to lead-free solder, Panasonic plans to meet the requirements one year in advance of the deadline.

Efficiency is another reason why companies are likely to convert all the products in a product line to comply with the requirements of RoHS, regardless of where they are assembled. Once a company tests and adopts a new technology, such as lead-free solder, standardizing equipment and processes throughout its manufacturing facilities is much more efficient and cost-effective than maintaining separate production lines to make products slated for different markets. The RoHS Directive is driving design and technological innovation, with companies shifting millions of dollars into research and development to meet the new standards.

4.2 Company Image

As a responsible corporate citizen, Panasonic greatly value the conservation of our environment and is committed to conducting business activities with minimal adverse impact on the environment. Panasonic assurance to produce energy-efficient products and strive for reduction of CO2 emissions at our manufacturing sites. Besides, Panasonic also encourage the spread of environmental conservation activities throughout the world. The cover symbolises how the Panasonic Group of Companies lead the way with “eco ideas”.

Panasonic are also made notable progress in its manufacturing activities among others, strengthened quality management, attained manufacturing innovation through various implementation on the production floor, continuous application of cost reduction activities, enhancement of product development capability and realised efforts to reduce CO2 in manufacturing and other facilities.

Product safety and quality underline the Company’s determination to deliver a sense of security and satisfaction in its products to all Panasonic’s customers around the world. The Company’s improved quality of products was through enhancement in Product Evaluation System encompassing product development, design and manufacturing, implemented visualisation by alarm system and strengthened suppliers’ quality control, aimed to promote prompt and transparent quality administration. At the same time, the Company also ensures product safety by enhancing product designs, adhering strictly to Panasonic’s Safety Design Standard, regulatory requirements and Restriction of Hazardous Substances (“RoHS”) compliance, and leveling-up its manufacturing abilities.

The Company has through its “eco ideas” activities contributed to the prevention of global warming by implementing projects that help to reduce CO2 emissions. Several awareness campaigns on energy efficiency and recycling projects were initiated. The internal operations have also been reviewed to improve energy efficiency by reducing energy, fuel and diesel consumptions in our daily operations which have a direct impact on CO2 emissions. Concrete efforts taken included installation of inverters, reactive power energy savers and eco power meters to heavy energy consuming machines, improvement of machine cycle time, replacement of  high bay lamps with high frequency lamps and removal of unnecessary fluorescent tubes. The Company also reformed its physical office layout with the implementation of One Office where all departments are relocated to be adjacent to each other. This is to create a conducive office environment under “6C” Concept i.e. “Communication, Cleaning, Convenient, CO2 reduction, Comfortable and Cost-saving”.

As a responsible corporate citizen, the Company is committed to adopting best practices in all aspects of its business as guided by “Panasonic Code of Conduct” issued on 1 October 2008. The Code reflects the basic ideas of fairness, honesty and a general concern for people that determines all our actions in the course of enhancing shareholders’ value and customers’ satisfaction.

4.3 Staff Mindset

The impact of RoHS directive on the staff mindset have advantages and disadvantages. The advantages is to help staff to improve their skill by provide the training to comply the RoHS. Besides that, it also encourage employee to participate in complying the RoHS. The enhancement of development capability, the Company concentrated on increasing manpower for the development function, further upgrading of technical skills and knowledge of engineers through introduction of the Quality Stability Design Scientific Method which is geared towards efficiency at designing stage. Moreover, it also enhances the safety of the working environment and helps reduce damage to people. The use of lead-free solders and components has provided immediate health benefits to electronics industry workers in prototype and manufacturing operations However, RoHS also have disadvantages on staff mindset, because all of the process also need to comply the RoHs, it will be many rules need to understand and follow.

4.4 Financial Performances

The impact of RoHS directive on financial performance will indirectly improve the financial performance of the company such as revenue and cost. For example, the customer will more love the green product and continue increase the loyalty of the customer. As a result, it will increase the revenue of the company. Besides that, it also reduces the environment cost that we need to afford.

In conclusion, the impact of RoHS directive on the company will help a company to improve the quality of the product and also increase the business potential to success. Besides that, it also help a company to achieve the goal of the organization.