Quality Assurance

Approach and Policy

The SMM Group has established and operates a business model based on 3-business collaboration between the Mineral Resources, Smelting & Refining, and Materials Businesses. Through this business model, we endeavor to continuously improve products and respond to changing customer needs in order to deliver quality that satisfies customers.
To provide quality that satisfies customers, the president has established a Company-Wide Quality Policy and sets SMM Quality Objectives every year. Based on these standards, each business division sets forth and implements division-specific quality targets and conducts quality activities that are aligned across the entire SMM Group.

Quality Assurance Management Framework

With the president bearing ultimate oversight responsibility, we have appointed an executive officer in charge of the Quality Assurance Department to drive quality assurance initiatives. Each business division develops and maintains their own quality assurance framework, while the Quality Assurance Department manages quality across the entire Group and ensures a Group-wide unified approach.
Additionally, not only does the Quality Assurance Working Group—which comes under the Sustainability Committee—deliberate key measures for promoting quality assurance activities, it works to improve the Group’s quality management systems (QMS) through the sharing of information on progress toward departmental targets and quality control status including the reduction of the number of complaints against the Company.
In addition, quality assurance managers from the various business divisions and business sites, along with members of the head office’s Quality Assurance Department hold an annual quality meeting to share the quality management status of each business site and quality issues common across the entire Group.

■ Management Framework Chart

Company-Wide Quality Policy and Results​

Company-Wide Quality Policy

FY2024 Company-Wide Quality Goal

Drive QMS improvements to achieve zero major quality complaints and create a structure that earns customer trust.

• Zero major quality complaints. Prevent complaints on quality that could jeopardize our business foundation
• Zero occurrences of quality misconduct
• Achieve complaint goals within business divisions

FY2023 Results

The figure to the below illustrates the changes quality complaints for the entire Group with FY2014 set as 100. The number of quality complaints decreased gradually starting from FY2014, reaching approximately one-third in FY2023 compared to FY2014.
In FY2023, number of quality complaints increased slightly from the previous year. This was mainly due to defects caused by human error in some departments. We will enhance risk analysis, take countermeasures to eliminate the true causes, and continue quality improvement measures in each business division and business site in the same manner as until now.

■ Changes in Quality Complaints (with FY2014 data as 100)

Quality Improvement Initiatives

Issues and Initiatives for Improvement

Quality trusted by customers can be achieved only when all employees align their goals and directions and actively engage in activities to achieve targets. To enable this, we clarify issues based on facts obtained through external and internal communication to set targets, and all employees proactively participate in quality improvement activities based on our “SMM Quality Standards,” which summarizes the ideal form of QMS at our Company in order to achieve our goals.

Improving Effectiveness of Quality Management Systems

The SMM Group has established and is operating QMS at its business divisions and business sites. For such QMS to function effectively, we have been conducting improvement activities based on the SMM Quality Standards. Every fiscal year, each business site sets a target standard to be achieved for the SMM Quality Standards and undertakes improvement activities. At the end of fiscal year, we conduct a self-evaluation to determine whether the quality level has achieved the targets, while evaluating and reviewing activities through internal quality audits and quality audits by the Quality Assurance Department. Based on the results, new targets are set for the next fiscal year, and the PDCA cycle of improvement is executed to continuously improve effectiveness of QMS at business sites.
The SMM Quality Standards categorizes requirements into eight chapters, with content based on the details of checks incorporating past issues, allowing us to identify strengths and weaknesses of each business site, and to focus on improving such weaknesses.
The SMM Quality Standards are revised each year, and we will continue to provide quality that satisfies our customers by improving the ideal QMS required by our Group.

■ Overall Picture of QMS and Applicable Items in SMM Quality Standards

Strengthening of Our Internal Quality Audits

In accordance with the SMM Quality Standards, we carry out measures with the objective of conducting internal quality audits that can identify, from a third-party-like perspective, potential internal issues arising from problems that have been discovered and relay these findings to top management. We hold training to cultivate internal quality auditors at business sites in Japan, turning out roughly 570 internal quality auditors from FY2019 to FY2023. Internal quality auditors supervise the actual audits and verify their effectiveness, and we implement a PDCA cycle to develop these internal auditors.
To prevent quality-related misconduct such as falsification of inspection or testing data, we provide Group-wide quality fraud prevention training opportunities using e-learning. In addition, Group-wide efforts are made to deter misconduct, including internal quality audits to guarantee product quality and to confirm the reliability of inspection or testing data, automated transfer thereof to avoid human intervention, and if such automation is difficult, administrative measures are enhanced.

Expansion of Group-Wide Education on Quality

We provide training on quality based on our education system that aims to equip each level of employee, from new employees to managers, with necessary quality-related knowledge and management ability. With the aim to acquire wide-ranging quality-related knowledge and enhance awareness, SMM Hinkaku,¹ an e-learning program for all employees launched in FY2019, with approximately 5,900 employees taking the course in FY2021. SMM Hinkaku will be used for the education of new employees and transferees.
As a shortage is expected of human resources capable of assuming responsibility for quality in the future, training is conducted Group-wide to nurture people responsible for quality. Four practical training sessions a year are conducted to improve the effectiveness of the QMS by rolling out SMM Quality Standards to the business divisions. After completion, the trainees will determine issues to be addressed at their own business sites and aim to accomplish these issues by utilizing what they have learned in the training program. The Quality Assurance Department also follows up on the progress of the initiatives. The training was completed by 19 employees in FY2023 and is currently participated by 18 employees in FY2024.

• 1Trainees learn the minimum level of knowledge and awareness regarding quality required for manufacturing and then their proficiency is graded through a test

Products and Services Information Disclosure

Most items in the SMM Group product lineup are supplied as raw or processed materials for use by customers for manufacturing. Information that customers require to handle our Group’s products properly from safety and environmental perspectives, as well as information needed to enable them to supply products, is communicated in product specifications at the time of contracting, during technical discussions, and via product inspection certificates and safety data sheets (SDS),¹ based on prior and the latest information, our Group’s proprietary knowledge, and necessary studies. SMM products supplied to customers are carefully designed, incorporating considerations toward safety and environmental compatibility, and are only delivered after thorough trials and inspections carried out during their manufacture². We make sure that information utilized for the above is always appropriate through quality management systems, reviewing it based upon the latest technology, laws and regulations and demands from customers.

• 1SDS (Safety Data Sheet): A document listing information on a chemical product, including the chemical substance, the product name, the supplier, hazards, safety precautions and emergency procedures
• 2We also conduct surveys linked to life cycle assessments (LCA) for copper, nickel, and zinc through associations related to each metal

Communication with Customers

Business divisions and business sites take the initiative in conducting customer satisfaction surveys. The results are fed back to the sales and development divisions. To enhance customer satisfaction, we are constantly improving our methods of measuring and assessing customer satisfaction, accurately identify issues through precise and sufficient communication with our customers, and execute effective measures. Through quality improvement activities, we contribute to resource and energy conservation by improving product yield.

Information on SMM Products Requiring Disclosure by Labeling and Applicable Products/Services

Regarding product and service information and labeling, we disclose necessary information as indicated in the following table.

Method of Providing Information Relating to Specifications

We indicate product specifications requested by the customer on the delivery sheet to provide necessary information to them.

Method of Providing Information Relating to Chemicals

The SMM Group uses SDS and others to provide information on chemical substances contained in products, complying with regulations for chemical substances and usage, regarding health and safety.

Other Initiatives

The SMM Group also engages in businesses such as the sale of various lubricants to general consumers. In line with related laws and regulations, we provide information on products and services in this area through labeling, advertisements, and explanations to ensure correct understanding.

Responding to Product Quality Issues as They Arise

If a quality issue arises in relation to the Group’s products or services, the necessary action will be taken in accordance with the Quality Assurance Regulations. The business divisions and business sites will immediately check facts, report results of root-cause analysis and verification to the customer, and agree on the necessary corrective actions and recurrence prevention measures.
In the unlikely event that a serious quality issue occurs, the business division will promptly report the problem to management and the General Manager of the Quality Assurance Department, who in order to resolve quality issues immediately, will check the progress of necessary response measures, and confirm the effectiveness of corrective actions and measures to prevent recurrence.