Enshu: Connecting technology to the world

Traditionally Japanese manufacturing involves relentless pursuit of perfection and this was defined as monozukuri, but nowadays the modern version of monozukuri is responding to customers’ requests and providing added value in final products delivered. How do you define monozukuri and what is the essence behind it?

The characteristic of our manufacturing can be rephrased as a “Suriawase” type that combines a wide variety of products to improve productivity and quality. We listen to our customers, gather information and ideas, and then use them as our guide as we perform our tasks. Create drawings, designs and production line programs, get customers to approve the entire process, and start the project.

When we spoke with the president of Sodick Co., Ltd, he had an interesting take on the four key elements for precision parts manufacturing: you need the latest and most advanced machinery, advanced CAD-CAM software, a controlled production environment, and the best raw materials. With such a setup we see that there is a decreasing need for workers because IoT and Big Data are now integrated into the manufacturing process to oversee all four stages. In such an automated and controlled environment, what is the role of the engineer?

Enshu started developing IoT three years ago because customers requested that we develop IoT in order to visualize the production process. Through this we were able to develop IoT equipment with innovative technologies that could serve our customers especially in the automotive sector. Our engineers play an important role for our client engineers, and we are always in close contact with them, especially when it comes to research and development.

You mentioned that Enshu has a turnkey system where you make the design for your clients. One of the difficulties that we have seen with machining center manufacturers is that CNC machines are becoming very complicated for use by the engineers. Due to the complexity of these machines, we often see users complaining about the cost of hiring operators and engineers. Are your products more user-friendly? Are you assisting your clients with human labour costs and the training required for operators in your machines?

We tailor-make our products to fit the needs and specifications of our customers. As soon as we receive the order we discuss with our customers about the features and functionalities of the machines as well as how to operate them properly. We give importance to having a discussion first before the final products are made and are given to the customers, we make sure our products are user-friendly. Enshu is a combination of three things: a machine manufacturer, a system integrator, and parts processing maker. By providing valuable suggestions to our customers, we continue to be a reliable and reliable partner for our customers.

Recent reports say that since regional competitors such as China and South Korea can make cheaper machines, while Japan is losing business especially as the automotive industry is changing with car electrification. Furthermore, companies that make CBN (Cubic Boron Nitride) are greatly affected because these products are no longer useful without the combustion engine. The report also states that many Japanese SMEs in the machine tool sector are disappearing. As a machine tool company, what is your assessment of Japan’s machine tool sector and where do you think it will go in the future?

We know that Chinese and Korean products are cheap machines, but our machines are equipped with their own automation-enabled equipment, which gives us an advantage. We also have factories in China and Thailand, which makes us competitive because we can keep prices down. We are coordinating to respond to major changes in the automotive industry, do our best to meet the expectations of our clients, and provide better products and solutions.

Enshu provides tailor-made solutions to the customers for both manufacturing process and machining center systems that could cater the EV sector. Our business platform, being a one-stop shop, offers a variety of advantages to the customers.

Your company is focusing a lot on Horizontal and Vertical Machining to provide solutions for Flexible Transfer Lines or Flexible Manufacturing Systems. You are also an auto parts maker; you make the forged pistons for Yamaha Motor Co., Ltd with whom you have had a very close relationship since 1976. Between the machining and auto parts divisions, which is the main focus of your business where you put most of your resources into? Can you tell us the synergies you have been able to create between these two distinct yet similar lines of business?

We supply the automobile industry with 80% to 90% of our machining tools. Most of our business is engine related. Most of the parts processing in our factory is made for Yamaha Motor Co., Ltd, and the others are for heavy trucks and other transportation vehicles. The parts processing line is increasing its competitiveness by utilizing its own machining centers and special purpose machines.

We know that you have a close relationship with Yamaha Motor Co., Ltd. since 1976 and we are very interested to see that because in the automotive industry we see a vertical supply chain with big giants like Toyota and Yamaha Motor Co., Ltd on top, and then the tier one and tier two suppliers must meet stringent requirements from big manufacturers or else they will be discarded and a new supplier will take their place. How are you able to maintain these high standards that are demanded by Yamaha Motor Co., Ltd for their parts? How are you able to ensure the quality of your parts especially as you operate overseas?

We confirm and understand the quality of products required by Yamaha Motor Co., Ltd and important parts of the production line, and clarify the non-defective conditions for maintaining and managing the quality of products. In addition, we train and educate younger generation, mid-career and other employees to reach the desired level, and make better products through mutual efforts. Lastly, Yamaha Motor Co., Ltd periodically visits our factory to inspect the production line to ensure that everything is accurate and in compliance with the strict standards that they require from us.

The global market for automobile parts machining is expected to grow in the next five years despite the coronavirus, this will be driven by demands for EV and CASE technologies and as well emerging markets in Southeast Asia and South America. As a president of a company that operates globally, what are your midterm sales targets? What strategies will you adopt to take advantage of this continued growth?

We are focusing on ASEAN regions such as Thailand, Vietnam and Indonesia, as well as India, and aim to expand the market. These markets serve as our starting points as we expand further overseas, we see a lot of potential to increase our business portfolio. We plan to supply more products for motorcycles, cars, trucks, agricultural machinery and IT.

Your company is present in the US which is one of the biggest markets in the world when it comes to automotive and heavy equipment. American car makers like GM or Ford are pledging to go for EV and in the motorcycle field we are seeing an increasing demand for lightweight materials such as titanium. How are you adapting to these changes in the US market? What is your strategy for the developed countries America and Europe in which you operate?

We used to provide a system line for GM, but recently we have no track record. When they moved their production line to China, we followed them and provided the system line to our base in China. Currently, Enshu delivers and introduces system lines and machining centers processed parts to Japanese manufacturers such as Toyota and Nissan, which are locally produced in the United States, Tier 1 and 2 companies, and JOB shops.

An increasing number of Japanese companies are combining their monozukuri with foreign know-how and technologies through co-creation endeavours. We saw that your company teamed up with Hamamatsu Photonics K.K. to create your High-Power Laser Welding system. Can you tell us more about the role that co-creation plays in your business? Are you currently looking for international co-creation partners?

The company has been co-creating for many years, and in fact our engineers are seconded to Toyota and Nissan as guest engineers to work with customers on solutions and steps to improve product development and production efficiency. These co-creation endeavors have already been part of our business with our clients. Toyota's development of a laser clad device for TNGA (Toyota New Global Architecture) is the result of co-creation. And the laser welding technology that we introduced with Hamamatsu Photonics was a product of co-creation, especially that we are very close to that company. The world’s first High Power Laser Diode Welding System was introduced as a result of this co-creation. In the future we will do co-creation with other companies that we have not worked with yet. Going forward, we will continue to develop co-creation activities that contribute to building mutual trust with customers such as Toyota, Yamaha Motor Co., Ltd, Nissan, and Suzuki.

Imagine we come back to interview you again in five years, what would you like to tell us? What are your dreams for the company and what would you like to have accomplished by then?

Five years from now, we would like to expand the market and develop in anticipation of customer needs, and introduce more appropriate products that are market competitive in terms of price. My biggest goal is to double the sales of this company in five years. We will do our best to aim for Challenge 500 (sales of 50 billion yen).