3. Our Strengths / The key to survive amid cost competition

01. Design Powers / All Design for Substantial Production Cost Cuts

Figure: Design Powers

Photo: Design Powers(1)

Photo: Design Powers(2)

We product deliver such superior cost performance stems from the attention they are given at the design stage. We have brought the core components by in-house made, reduced the number of components and analyzed its value of parts and materials. We have made efforts such as decreased the number of production processes and shifted the management of main design processes to offshores. These cost down efforts have enabled us to win out amid stringent cost competition and become a leading provider of products at reasonable prices.

CHECK1 / Bringing the core components in-house made, and analyzing its value of parts and materials / Reducing the number of components and production processes / Shifting the management of main design processes to offshores

02. FPS / Achieving Ongoing Productivity Increases with Our Unique Production System

We have introduced the unique Funai Production System (FPS) at our factories. This system creates placing stresses intentionally on the production line, such as by increasing the speed of the conveyer. We then observe the problems that arose as a result and improve on conditions that caused the failure. Repeating this cycle enables us to achieve ongoing productivity increases.

Photo: FPS

CHECK2 / Create stresses on the production line to uncover problems / Achieve productivity increases through repeated improvement

Figure: FPS

03. Optimal Production Sites and Procurement / Boosting Cost Competitiveness by Always Looking for Optimal Production Sites and Procurement

Figure: Global production site map

Photo: Plant in ThailandPlant in Thailand

Photo: Plant in the Philippines (Cebu)Plant in the Philippines (Cebu)

We concentrate its production facilities in the most appropriate locations and enhance cost competiveness by procuring materials locally. Particularly in recent years, within Asia there has been a marked trend toward boosting production capacity in Thailand, owing to worker shortages and rising labor costs in China.We have started to manufacture inkjet printers in the new factory on the Philippine island of Luzon.

CHECK3 / Concentrate production facilities in the most appropriate locations and procure components locally / Boost production capacity at Thai plant

04. Global Sales / Leveraging Our Number Three Ranking in North America to Expand Sales in Japan and Overseas

In LCD TVs, we boast the fourth place of the ranks for the North American market—one of the world's largest. However, we aim for sales to be regionally balanced and not place undue reliance on North America. As a result, we are reinforcing our operations in the European and Japanese markets, and open up in Mexico and other Latin American countries, and such emerging markets as India and Thailand.

CHECK4 / The third place of the ranks for LCD TVs in North America / Delivering products in Latin America and Asia as well as North America

Graph: Share of shipments of LCD TVs in 2016 / *Source: NPD DisplaySearch