Quality Assurance Initiatives The Ajinomoto Group Quality Policies The Ajinomoto Group ensures strict quality assurance from raw material procurement to sales activities by applying the Ajinomoto System of Quality Assurance (ASQUA) to all of its products and services. Philosophy We contribute to a better life for all throughout the world by providing safe and high-quality products and services. Policies 1. 2. 3. 4. 5. We pay full attention to the request of our customers, and provide products and services meeting with their satisfaction. We actively provide appropriate information to our customers and continue to improve our trustworthiness. We make no compromises with regard to safety, conducting surveys and research as thoroughly as possible, faithfully complying with applicable laws and regulations, and always delivering products and services of uniform quality. We assure quality through the Ajinomoto System of Quality Assurance (ASQUA 1 ), based on the concepts outlined in the international ISO 2 standard. Under the leadership of our management, each one of our company's employees makes the greatest effort to provide sage and high-quality products and services through work at all levels, from research and development to production, distribution, sales and services. 1. ASQUA (the Ajinomoto System of Quality Assurance): This quality assurance system, which is based on the ISO concept, specifies those standards that are required for quality to be high enough to merit the Ajinomoto Group's brand name. 2. ISO: The ISO9000 standard is the international standard of quality assurance as determined by the International Organization for Standardization. The standard is not applied to products themselves, but embodies the requirements relating to the product's quality assurance systems that are necessary for customers to feel confident about product quality. The Ajinomoto System of Quality Assurance Ajinomoto Co., Inc. established the Ajinomoto System of Quality Assurance (ASQUA) in 1997. Under the system, the Ajinomoto Group carries out quality assurance activities spanning from the procurement of raw materials to the sale of products, while making improvements to its products, services, and operations to more efficiently respond to customers' requests and expectations. The ASQUA system complies with the ISO 9001 international standard of quality assurance; the Hazard Analysis and Critical Control Point (HACCP) system, which is a standard for food product management; as well as the Ajinomoto Group's in-house quality standard. As such, the system functions to ensure the production of products of the highest quality. 55
The Ajinomoto Group Quality Standards The Ajinomoto Group Quality Standard is an in-house standard for ensuring that products meet the level of quality expected of the Ajinomoto Group's brand. The group has also set strict standards covering a wide scope of areas that include raw materials, packaging, quality control, and labeling. Examples of the standard are listed below. Standard for Quality Standard for Food GMP Standard for Quality Control Assessment of Ingredients Standard for Quality Control of Subcontracted and Procured Products Standard for Responding to Complaints Standard for Determination of Responding to Quality Emergencies Organizational Framework for ASQUA Implementation Comprised of members of upper management, the Quality Assurance Committee oversees product quality in the Ajinomoto Group. Under its supervision, the Quality Assurance & External Scientific Affairs Department at Ajinomoto Co., Inc. determines and implements rules related to quality assurance. Through these rules, managers and employees in charge of production and sales on the shop floor gain a greater awareness of product quality, and recognize the importance of providing safe products to customers in order to win their trust. Review of Activities in Fiscal 2010 In fiscal 2010, the Ajinomoto Group enhanced its communication with customers, and improved the system for sharing and incorporating customer feedback in its operations. Furthermore, in response to customer requests for more information related to product safety, Ajinomoto Co., Inc. actively provided relevant information in newspaper advertisements and on its Web site. To ensure a dependable supply of safe products, the company stepped up the auditing of suppliers, including those outside of Japan, and worked to raise the level of management in their operations. With the 2011 2013 Medium-Term Management Plan for Quality Assurance, the Ajinomoto Group will continue quality assurance-related measures and uphold its commitment to customers to provide safe and dependable products. The group intends to improve its quality assurance systems particularly applicable to product design and development, new business domains, and new markets around the world. Human Resources Training to Raise Quality Assurance Levels In fiscal 2010, the Ajinomoto Group held a training program on quality for company executives. Information sessions on group quality assurance activities and the Medium-Term Quality Assurance Plan covering fiscal 2011 to 2013 were also held for division heads of Ajinomoto Co., Inc. and presidents of group companies. In addition to these annual events, the group held the 31st Ajinomoto Management and Technical Conference on Quality. A record turnout of 462 employees participated in the conference to discuss the latest initiatives and reaffirm the importance of quality assurance activities. 56
The Ajinomoto Group is also focusing on training employees from its companies outside Japan. The 10th Quality Management System Training Course was held in fiscal 2010. Nine managers were invited from Thailand, Vietnam, China, the United States, France and other countries to spend two weeks studying a wide range of topics related to quality assurance and promoting exchange between group companies. The group also held the ASQUA School in each region of the world where it operates, and actively carried out training on quality assurance in the ASEAN region, China, and Brazil. Designed to improve quality assurance levels at group companies, sessions were held in Vietnam for 24 employees from 14 subsidiaries in eight ASEAN countries, in China for 26 employees from 11 subsidiaries, and in Brazil for 26 employees from that country as well as Peru and the United States. The training program on quality for company executives The Ajinomoto Management and Technical Conference on Quality Employees from overseas group companies at the ASEAN ASQUA School in Vietnam Measures to Reduce Customer Complaints and Quality Issues The supply of safe products to customers is of paramount importance for a company, and, therefore, one of the most vital missions for the Ajinomoto Group. Toward this end, the group carries out measures designed to reduce qualityrelated problems in every process of its operations, from product design and materials purchasing through to production and sales. In fiscal 2010, the Ajinomoto Group reviewed and improved its framework for assessing quality at the product design and development stages. Exhaustive investigations were conducted on the underlying causes of each issue uncovered and relevant countermeasures were implemented, resulting in a decline in customer complaints and problems related to quality. Issues that continue to arise involve the misprinting of expiration dates, mislabeling, inadequate product volume, and the presence of foreign substances in products. Accordingly, the group is working to further strengthen quality assurance systems at the product design and development stages to improve design quality and prevent problems from arising in advance. Supplier Audits and Quality Control The Ajinomoto Group conducts transactions covering the outsourcing of production, purchase of outsourced products, and the purchase of raw materials with suppliers 1 based in and outside Japan. In accordance with criteria stipulated in ASQUA, the group requests that its suppliers establish quality control standards and quality requirements, and apply them during transactions. To ensure that quality control measures are being dependably implemented and transactions are legitimate, the group works to strengthen its relationships with suppliers and conducts evaluations via quality audits and other methods. Outside of Japan, the Ajinomoto Group has established its worldwide Global Supplier Management (GSM) as a system for carrying out quality audits at companies in the ASEAN region, China, South America, the United States, and Europe. Through the system, auditors are provided with education and training to conduct the audits in these countries and regions. 1. Suppliers are defined as companies that subcontract product manufacturing and supply outsourced products and raw materials. 57
Product Recalls In fiscal 2010, three voluntary product recalls were carried out by companies within the Ajinomoto Group. In August 2010, about 6,000 packages of Calpis Co., Ltd. Premium Butter (unsalted) were recalled after mold was discovered on some areas of the product. As the cause was identified as mold that had grown on packaging paper, Calpis Co., Ltd. has stepped up quality control activities related to packaging materials. Approximately 200 tons of the seasoning, Sazon, sold by Ajinomoto do Brasil Ind. e Com. de Alimentos Ltda., were recalled in December 2010. The cause was a discrepancy in the labeling of allergy-related information on the outer and inner packages, which resulted from using outdated materials for the outer packaging during a transition to new packaging materials. In response, Ajinomoto do Brasil Ind. e Com. de Alimentos Ltda. has completely overhauled its change management process and strengthened cooperation between divisions. Also in December, amino VITAL, a beverage exported from Japan and sold in Korea by Ajinomoto Korea, Inc., was recalled after it was confirmed that a food additive in the product had not been approved for use in the country. Accordingly, the group has worked to improve its quality assessments made prior to export. Public Relations Initiatives on Quality Assurance The Ajinomoto Group has been placing increased emphasis on public relations concerning matters of quality assurance since fiscal 2008. The initiative aims to strengthen education on the quality of the group's products in order to promote consumer confidence and meet their needs. Additionally, the group is striving to provide comprehensive information on matters such as its approach, policies and ongoing activities to provide customers with products of exceptional quality. As part of these initiatives, Ajinomoto Co., Inc. has established guidelines for providing retail product information in its commitment to offering useful information on package labeling and Web sites in cooperation with all group companies. The company also updated its Web pages covering quality assurance initiatives (in Japanese) in 2009, improving the content to more effectively share information with customers. It includes sections on topics of public concern in Japan, such as food poisoning and food additives, with explanations by independent experts; advice on understanding product The quality assurance Web site (in Japanese) of Ajinomoto Co., Inc. package labeling; and overviews of the company's efforts to produce safe and reliable products at every stage of operations, including raw material management, product development, and production. Approach to Food Additives and GMOs The Ajinomoto Group conducts strict checks on the safety, usefulness and legality of food additives and genetically modified organisms (GMOs), and takes a firm stance against irresponsible labeling using these terms. In recent years, the number of processed foods labeled as "Additive XX-free" or "No XX" on the market has increased. As a manufacturer of food products, Ajinomoto Co., Inc., strives to avoid labeling methods that may give consumers doubts about GMOs and food additives recognized as safe based on government standards and scientific research. The company believes that inviting unnecessary confusion is not beneficial for the consumer. Use of food additives and product labeling Food additives not only enhance dietary lifestyles by improving the taste, aroma, nutritional content, and storage stability of food; they also play an important role in the distribution and effective utilization of food resources. Since food additives today are consumed by millions of people, they are subject to stringent testing under the supervision of governments to confirm their safety. The Ajinomoto Group selects appropriate food additives for use in product development and production based on the latest research findings on safety and other relevant issues. Furthermore, the group is committed to clear and accurate labeling of food additives on its product packaging, in accordance with standards stipulated in relevant laws. 58
Use of GMOs and product labeling GMOs represent an important technology that is expected to play a major role in the alleviation of environmental problems and food shortages, including the reduction of pesticide use in farming by genetically modifying crops to be resistant to harmful insects. At this time, it is also important to thoroughly check the safety of GMO foods. In order to ensure food safety, stringent assessment and approval for GMOs is currently being carried out in various countries. In Japan, assessment is performed by the Food Safety Commission of the Cabinet Office, while the Ministry of Health, Labour, and Welfare is responsible for approval and quality control. Labeling standards have been established in order to provide necessary information to consumers, and Ajinomoto Co., Inc. faithfully complies with these standards. The Ajinomoto Group also utilizes its own detection technology in order to prevent inadvertent contamination by ingredients containing unapproved GMOs. 59
Initiatives for Customers Communication Guidelines The Ajinomoto Group strives to put the customer first, offer excellent service, and provide safe, high-quality and innovative products. Ajinomoto Co., Inc. established its Customer Satisfaction Promotion Policy and Customer Satisfaction Code of Conduct based on ISO 10002 1 to achieve higher customer satisfaction. In accordance, the company is committed to realizing products and services that fully satisfy customers. 1. ISO 10002: International guidelines for a complaints management system. It sets requirements for an organization to meet in responding appropriately and promptly to customer's complaints to improve customer satisfaction. Customer Satisfaction Promotion Policy To ensure that we continue to provide products and services that satisfy our customers, we will listen to customers, see problems from their point of view, and focus all of our resources on creating the solutions customers need. Above all, our aim is to be an honest company that customers can trust. Customer Satisfaction Code of Conduct 1. 2. 3. 4. 5. We provide safe and reliable products and services to our customers. We respond to complaints, requests and inquiries from our customers precisely, promptly and politely. We respect the voice of the customer, and strive to use all input to add value to our products and services. We actively disclose appropriate information to our customers. We comply with regulations and voluntary in-house standards related to protecting the rights of our customers. To put the Customer Satisfaction Promotion Policy and Customer Satisfaction Code of Conduct into practice, Ajinomoto Co., Inc. has established internal procedures laid out in a manual based on ISO 10002 standards. In accordance with these procedures, the Ajinomoto Group is deeply committed to increasing customer satisfaction by incorporating customer feedback and requests. Activities at the Customer Service Center As a contact point between Ajinomoto Co., Inc. and its customers, the Customer Service Center strives to ensure high customer satisfaction by responding precisely, promptly and politely to inquiries. The center records and analyzes customer feedback and inquiries on a daily basis. Customer opinion is shared with business divisions and product development departments as a means to help the company develop better products and services. Recognizing the importance of communicating with each and every customer, Ajinomoto Co., Inc. strives to improve customer relations and satisfaction. Also the company strives to build the quality level of customer satisfaction in all business activities starting with the provision of products and services. Highlights of Activities in Fiscal 2010 In fiscal 2010, customers continued to be highly concerned with food safety and dependability, and stringent demands and expectations were placed on food and beverage companies. In response, Ajinomoto Co., Inc. stepped up its measures to ensure product safety with an emphasis on the customers' perspective. The company worked to further improve cooperation between divisions in charge of customer service at group companies in Japan, and pushed ahead with activities designed to improve product quality at each company group-wide. 60
Main activities in fiscal 2010: Employee education program for improved customer service quality Ajinomoto Co., Inc. continued its employee training program designed to enable customer service representatives to develop the individual skills required to raise customer response quality and improve communication. Through this training, the company intends to further improve customer service quality and increase customer satisfaction. Improvements for sharing customer feedback To ensure optimum product quality, the Customer Service Center collects feedback from customers, and regarding it as valuable information, regularly shares the data in company meetings and reports as a means to improve products and services. Furthermore, product evaluations based on feedback are conducted in assessment meetings at the product development stage, with the aim to take precautionary measures against possible customer dissatisfaction. Improving response to customer complaints When a customer complaint is received about products or services, Ajinomoto Co., Inc. investigates the matter and reports its findings to the customer. The process includes asking customers about their satisfaction with the company's response. In fiscal 2010, the company continued to conduct initiatives to improve this area. It included establishing baseline targets for the number of days in which to respond to complaints, and the level of customer satisfaction with how complaints were addressed. Feedback is used to pursue ongoing initiatives across the company in an effort to further raise customer satisfaction. In-house training on customer satisfaction As a part of the in-house customer satisfaction training program, 1 Ajinomoto Co., Inc. provided practical training for employees at the Customer Service Center to gain work experience, opportunities to communicate directly with customers, and consider ways to improve customer satisfaction. In addition, the company introduced five workshops and lectures in fiscal 2010 covering the business needs of each company division. Through these activities, the company is promoting a better understanding of customer satisfaction among employees. 1. The following workshops and lectures are provided under the in-house customer satisfaction training program: Practical training at the Customer Service Center Lectures on customer perception Workshops on customer feedback analysis Workshops on use of the customer feedback portal Workshops on responding to customer complaints Individual training programs on customer satisfaction Improving cooperation between group companies in Japan With the overall aim to increase customer satisfaction, Ajinomoto Co., Inc. organized a regular conference for all customer service personnel at group companies in Japan to cooperate in continuously identifying and examining issues and initiating improvements related to enhancing the quality of customer response and more effectively incorporating customer feedback. 61
Customer Feedback in Fiscal 2010 The Customer Service Center received approximately 38,000 customer inquiries in fiscal 2010. The number had been on the decline from the previous fiscal year, but suddenly increased at the end of fiscal 2010 as customers made inquiries regarding raw materials and production dates of products with concerns over radioactive contamination in the aftermath of the Great East Japan Earthquake that struck in March. Since fiscal 2007, the center has continuously received numerous questions about cooking methods from people with limited experience, such as young housewives and elderly men. There were also a growing number of inquiries and suggestions related to environmental concerns, such as requests for containers and packaging that are easier to separate for disposal and recycling. The Customer Service Center forwarded the feedback to relevant company departments, which will use the information for future reference. Content of Customer Feedback in Fiscal 2010 Approximate total: 38,000 calls from customers Topics of Inquiries in Fiscal 2010 Application of Universal Design at Ajinomoto Co., Inc. Ajinomoto Co., Inc. applies universal design 1 principles in its development of product packaging. Package containers are designed to be easy to hold and open, colors are employed to clearly differentiate product types, and package surfaces are made to improve the visibility of lettering. In this way, the company is setting various standards for its products from the diverse aspects of universal design. In the context of the aging of society, the universal design approach has become particularly important in recent years for developing products used by elderly and one-person households. Accordingly, Ajinomoto Co., Inc. is making advances in the design and development of products and packaging used in nursing and health care. Special attention is paid to clearly displaying essential information and instructions to avoid incorrect usage. The company intends to promote research in universal design to integrate the basic function of packaging with the need to create more economical and environmentally friendly packaging in the future. 1. Universal design refers to the design of objects that can be easily used by as many people as possible, irrespective of age or physical ability. 62
Consumer Information in Product and Company Advertising Ajinomoto Co., Inc. has two objectives for providing information to consumers: the first is to announce product releases and promote awareness of their benefits in an effort to boost sales; the second objective is to communicate the ideals and the activities of the company as a way to win customer support. To achieve these goals, the company recognizes that the information it provides must be clearly presented, accurate, and highly useful to appeal to customers. In its recent advertisements, the company has presented ways of using its products and recipe ideas to emphasize the products' usefulness in everyday life. The advertisements have received many favorable reviews for their effectiveness in conveying useful information. Web site for customers to Advertising campaigns have also focused on eight initiatives for contributing to the submit their favorite recipes that environment and society to mark the 100th anniversary of the founding of Ajinomoto use HONDASHI soup stock (Japanese only) Co., Inc. Viewers have expressed their appreciation for receiving information on the company's initiatives and becoming aware of the fact that Ajinomoto Co., Inc. is a global enterprise. Looking forward, Ajinomoto Co., Inc. is fully committed to offering consumers clearly presented and accurate information on the usefulness of its products, suggestions for their use, and various initiatives undertaken by the company. Working with Restaurants through Point Campaigns In collaboration with the organization, Table for Two International, Ajinomoto Co., Inc. began including "a school meal for a child in Africa" as a prize that can be exchanged using points accumulated in a customer points campaign currently promoted at independently operated restaurants. The prize was included from April 2011. Ajinomoto Co., Inc. recognizes that independently operated restaurants, which are important customers, face major obstacles in initiating social contribution activities and carrying out such activities on their own. In response, the company created a framework for restaurant owners to easily participate in a customer points program as a way to contribute to society. The initiative was commenced with the aim to enable the restaurant industry as a whole to become more involved in helping people. Ajinomoto Co., Inc. anticipates that a large number of restaurants will join the campaign in the future. Web site for the Table for Two school lunch campaign (Japanese only) 63