Quality

• Quality Policy

• Integrated production and stable supply of products

• Certified locations

• Establishment of a Quality Training Framework

• Supply Chain Quality Management

• G-NNP Activities

• Quality-Related Awards

Last updated: September 2026

Quality

Quality is the foundation of customer satisfaction and, at the same time, an extremely important management issue in reducing business risks arising from critical quality defects and quality failures. The occurrence of quality problems may have a significant impact on corporate value, including erosion of customer trust, impact on our supply responsibilities and damage to earnings. The Group has set out reducing quality risk as a medium- to long-term target, and aims to achieve and maintain zero critical quality issues by FY2030.
In addition, as vehicles become increasingly sophisticated, safety-related parts — beginning with components for advanced driver assistance systems (ADAS) — are growing ever more important. Although high-risk products that include these safety-related parts (hereinafter "critical safety parts") account for only about 3% of the Company's consolidated net sales, we classify products according to their level of importance and apply quality controls commensurate with their degree of impact on vehicle safety functions. For products of high importance, we carry out thorough preventive controls such as risk analysis using FMEA (failure mode and effects analysis) and evaluation using CAE (computer-aided engineering) simulation, and we work to prevent defects before they occur through process control with a high level of process assurance, from design through to manufacturing.
In recent years, with the expanding use of recycled materials in product development and manufacturing, new risks such as quality variation and impacts on safety have been emerging. We recognize the importance of appropriately managing such risks and achieving both environmental responsiveness and quality assurance. We are also working to strengthen our ability to respond to future risks by advancing the formulation of internal quality and safety standards for recycled materials.

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  Critical safety parts: Products whose defects could lead to personal injury accidents, fires or non-compliance with laws and regulations, or to the loss of basic vehicle functions such as “driving, turning and stopping”

Quality Policy

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Realizing Integrated Production and Stable Supply of Products

Nifco meets customer expectations based on an integrated quality assurance process that covers everything from product planning and development to after-sales service.

Quality Assurance Process

Quality assurance is implemented at each stage from order receipt to design, prototyping, evaluation (measurement and testing), mass production preparation, and mass production and delivery. Prior to and during the initial phase of mass production, we conduct risk analysis, process design, product testing, product approval and quality evaluation monitoring. In the mass production stage, we maintain and improve quality through daily management, analysis and improvement based on defect statistics, change management, and periodic testing and measurement.
In product evaluation, we conduct in-house tests in accordance with various laws and regulations and customer requirements, and also utilize product evaluations by accredited external organizations as necessary. For critical safety parts in particular, we perform design FMEA, process FMEA, CAE analysis, process audits and periodic process verification to maintain the level of process assurance even after mass production begins.
Furthermore, we work not only within our own plants but also in collaboration with partner companies to stabilize quality and supply across the entire supply chain.

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Certifications (as of September 2026)

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Establishing a Quality-related Education System

To further strengthen our quality foundation, we have built an education system aimed at raising quality awareness among all employees. We conduct programs systematically and on a regular basis, including Quality Training for new employees, Quality Compliance Education for all employees and Internal Auditor Training for selected employees. Quality Compliance Education in particular is held every year for the departments concerned, from the standpoint of preventing recurrence based on lessons learned from past serious incidents, as we work to raise quality awareness across the Company and fulfill our responsibilities to society.

Supply Chain Quality Management

The Nifco Group rolls out its quality management system based on international standards across the entire supply chain, and works to build a sustainable quality assurance system and enhance corporate value by strengthening critical safety parts management, quality risk management, traceability management and supply continuity (resilience).

1. Participation in Industry Standards and Industry Association Activities

The Company has established and operates quality and environmental management systems based on IATF 16949, ISO 9001 and ISO 14001, and promotes quality assurance activities across the entire supply chain by incorporating these requirements and customer-specific requirements into each business process. The Company also participates in the activities of industry associations such as the Japan Auto Parts Industries Association (JAPIA) to address cross-industry quality and procurement issues.

2. Supplier Quality Policy

The Company’s basic policy is to ensure that materials, parts and services procured externally conform to customer requirements and relevant laws and regulations. We require suppliers to establish and operate quality assurance systems linked to the Company’s quality management system, and promote continuous improvement, including in quality, environmental and chemical substance management.

3. Supplier Evaluation Process

The Company conducts new supplier evaluations and periodic evaluations to continuously verify suppliers’ quality assurance capabilities and the effectiveness of their quality management systems. The evaluation results are utilized for quality improvement activities and risk management.

3-1. New evaluation

In selecting suppliers, we evaluate their quality assurance systems, supply capacity, compliance with laws and regulations, maturity of their quality management systems and other factors, and select suppliers that meet the Company’s standards. For suppliers involved in critical safety parts, we conduct a more rigorous review of their quality assurance systems.


3-2. Periodic evaluation

We periodically evaluate suppliers' quality performance, quality management frameworks, the status of their improvement activities and their quality assurance capabilities, and work to raise their performance levels on an ongoing basis. Based on the evaluation results, we provide improvement guidance and conduct audits as necessary.

4. Corrective Action Process

When a quality defect occurs, we systematically conduct cause analysis, the planning and implementation of measures to prevent recurrence, and verification of their effectiveness. In addition, by rolling out the insights gained across the entire supply chain, we prevent quality risks before they occur and continuously improve our quality management system.

5. Receiving Inspection System for Resin Raw Materials

When receiving raw materials, in addition to checking quality and conformity to specifications, we verify chemical substance management and compliance with laws and regulations. This ensures that only raw materials meeting safety and environmental requirements are used, supporting the manufacture of high-quality products.

6. Material Traceability

We implement lot control and history management from raw materials to product shipment, enabling prompt investigation of causes and identification of the scope of impact when a defect occurs.

7. Improvement Activities for Suppliers

The Company supports suppliers in strengthening their quality management systems through audits, evaluations and improvement guidance. By continuously rolling out quality assurance standards and conducting quality audits and improvement follow-ups, we work to raise quality levels and strengthen supply continuity (resilience) across the entire supply chain.

Co-creating New Value from the Front Lines (G-NNP Activities)

Introduction of G-NNP (Global New Nifco Production System) Activities: Nifco’s Manufacturing Innovation and Strengthening of On-site Capabilities to Enhance Global Competitiveness

1. Overview of Activities (Background, Purpose and Evolution)

G-NNP is Nifco’s own initiative for manufacturing innovation and the strengthening of on-site capabilities, centered on transformation and co-creation, with the aim of providing “good products at lower cost in a timely manner.”

In response to recent changes in the market environment (such as the shift to EVs and labor shortages), we are promoting:

▶ Simultaneous cost reduction, quality improvement and productivity improvement
▶ Establishment of a global culture of improvement

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Currently, based on the principle of “region-led activities + global deployment,” each region proactively promotes improvement activities, and outstanding initiatives are rolled out globally to further accelerate improvement activities.

2. G-NNP Convention (Global Results Presentation)

Nifco holds the G-NNP Convention, an annual global event to share and recognize outstanding improvement cases from each site.

3. Communication with Overseas Sites

● Global collaboration

• Improvement guidance system by region (North America, Europe, Asia, etc.)
• On-site guidance visits to overseas sites and web conferences
• Group-wide roll-out of improvement know-how

● Use of a portal site

Nifco has created a web portal site that serves as an information platform for all manufacturing-related sites, sharing know-how, case studies, policies and information on global manufacturing and improvement activities.

• Improvement case database
• Posting of guidelines and standards
• Sharing of information on each site and the guidance system

By centralizing information, we have built a system that promotes collaboration between sites and enables effective improvement cases to be shared rapidly across all sites worldwide.

4. Results and Future Direction

● Main results

• Establishment of a culture of continuous improvement
• Strengthened collaboration with overseas sites
• Visualization and standardization of improvements

● Future priorities

• Transformation into smart factories (automation and use of digital technologies)
• Establishment of global standard processes

Through these initiatives, the Nifco Group aims to achieve “world No. 1-level manufacturing.”

Quality-related Awards

As of September 2026: “FY2025 Quality Results (Based on Month of Receipt)”

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