CLOSER ISSUE 22 JUN.2015
TÜV RHEINLAND GREATER CHINA NEWS
Why should We Take SERVICE Seriously? Establishment of Food Safety Risk Management System of China How to Achieve a 180% Increase in Efficiency ? TÜV Rheinland Opens Food Lab in Shanghai
02 CONTENTS
Contents
FEATURED SERVICE
19/21 Cyber Attack on Pacemakers
SPOTLIGHT
04/09
Why should We Take SERVICE seriously? —— The secret of “the experience
economy“ wins customers
EXPERTISE
10/14 Establishment of Food Safety Risk Management System of China
15/18 How to Achieve a 180% Increase in Efficiency ? —— Lean production of a famous
office chair supplier in China
CONTENTS 03
22/23 TÜV Rheinland Opens Food Lab in Shanghai
26/27 Testimonial: Murata
24/25
30
Testimonial: Zoomlion
Starting Young with Food Safety Branding Event
We@TUV
28/29 Start up Something “New” and “First” Again! —— Interview of Jonathan Lam, VGM, Industrial Services
GLOBAL NEWS FLASH USA
31
TÜV Rheinland PTL Tests Racking Systems & Solar Trackers to New Standards Japan
31
TÜV Rheinland Japan Registered as Designated SII Certification Body
CLOSER
Credit
Chief Editor
Ricky Xu
Editor
Clare Zhang Michelle xia Ally Shen Isaac Yuan
Publication Date
2015.6
31
Malaysia
TÜV Rheinland Malaysia Approved as Conformity Assessment Body 31
Germany The European Funded Project “Solar Bankability” project has Started
ISSUE 22 How to contact us Tel
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04 SPOTLIGHT
Why should We Take SERVICE Seriously? -- The secret of “the experience economy” wins customers
SPOTLIGHT 05
What is service? Western management experts divide it into smile, excellence, readiness, viewing, being inviting, creating and having a good eye. In other words, service is the way in which customers should be treated: pay close attention to them, predict their demands, always be ready to serve them with a smile and excellent work, create a warm atmosphere for them, ask for their advice and invite them to come again. In one of the blog posts, Han Han – a famous young writer in China – recorded several small incidents that occurred during his first stay in Taiwan, including a need to repair his glasses and to reclaim his phone after losing it in a taxi. He praised the friendliness and simple folk customs of the Taiwanese people. Isn’t this an indication of the excellent service offered in Taiwan? Since the second half of 2014, the number of mainlanders travelling to Japan has reached record highs. Increasing numbers of Chinese people are visiting a country that used to be seen only on TV or in films. What seems to impress these visitors most is Japan’s service industry, which pursues the concept of offering the best user experience possible. Established just five years ago, Xiaomi Technology Co Ltd is now the fourth largest Internet
46.1%
The service industry’s share of GDP in 2013
enterprise in China. “Doing service well” is always Xiaomi’s business principle. According to data from the National Bureau of Statistics, in July 2014 the service industry’s share of GDP, 46.1%, surpassed that of the manufacturing industry for the first time. Between January and May 2014, the service industry share also increased sharply, reaching 49%. With the country’s reform and opening-up, people are now pursuing higher quality services. No wonder we are seeing an increase in the number of news items such as the following.
1
No matter how good a closet is, customers won’t feel satisfied with it if the service quality is poor.
2
30% of customers are dissatisfied with banks – poor service quality is the main reason.
3
The post-1985 generation has made O2O laundry popular, but the lag in service is criticised by customers.
4
The tourism websites of Shanghai received many complaints during the Spring Festival.
49%
The service industry’s share of GDP during Jan-May 2014
06 SPOTLIGHT
Service quality drives customer satisfaction For most enterprises, the ultimate aim of quality service is higher profit. Improving service quality is one of the key means by which enterprises can increase operating profit. In today’s competitive society, any enterprise that wants to enjoy ample space for healthy development should have a complete set of products and services in addition to high product quality. Meeting the demands of different customers through differentiated products and services can be a way for an enterprise to gain a foothold and enjoy long-term development in the market. The latest scientific and technological developments mean that quality differences between products of the same type have largely disappeared, and thus service differences have become the focus of competition. Service quality determines customer satisfaction, and further influences customer loyalty. Data show that if customer loyalty increases by 5%, net profit will grow by 25-95%; the cost of attracting a new customer is five times that of retaining an existing customer; and only 4% of dissatisfied customers complain, whilst 96% prefer to hold their tongue.
Customer loyalty increases
Net profit grows
Cost of one new customer
Cost of retaining 5 existing customers
dissatisfied customers complain
prefer to hold their tongue
SPOTLIGHT 07
Key applicable industries Transport (high-speed rail and aviation)
Tourism and hotels
Car dealers and 4S shops
Healthcare
Luxury goods
Financial services
Telecommunications/ public service
FMCG
moving consumer goods). The certification process can help enterprises to better understand the real demands of their customers, as well as their own management and service status, and then effectively improve their service quality, perfect their management system and workflow, enhance customer satisfaction and loyalty, and ultimately boost corporate profits and competitiveness. With the extension of human life and the increased pursuit of good health, people’s consciousness of the need for healthcare has generally heightened, leading to a great amount of investment into the sector. China’s healthcare market has considerable room to expand. At present, its health service market is not entirely open, and reform of the country’s health system is ongoing. There is no doubt that such conditions will bring great market opportunities.
Practising excellent service, and improving competitiveness At the beginning of the romantic comedy Women Who Flirt, the heroine knocks over her glass of wine on purpose when she and the hero are dining in a high-end restaurant. She then starts a timer to measure how long it takes a waiter to come and clean up the mess. The subsequent scene depicts the heroine and hero reporting the results of their observation to the restaurant owner. It is at this point that we realise they are “mystery customers”. Visits by mystery customers are one way to monitor and evaluate service quality. However, TÜV Rheinland’s Service Quality System (SQS) certification covers a wider range of methods in addition to anonymous inspections, including service process reviews and service quality training. It is thus broadly applicable to transport (highspeed rail and aviation), car dealers and 4S shops, luxury goods, telecommunications/public service, tourism and hospitality, healthcare, financial services and FMCG (fast-
It is predicted that more international medical institutions will establish chains in China to fight for a share of the health service market, which means that the assessment standards for the healthcare industry depend not only on the professional level of medical staff and the hardware of medical institutions, i.e. the medical environment, but also on medical practitioners’ service quality, which plays an important role in people’s choice of medical institution. With a history of 65 years, Beijing Pinggu Hospital is the largest public Class III hospital in the Pinggu District. In 2014, the hospital invited experts from TÜV Rheinland to carry out related preparatory work, including the training of service quality certification personnel, process design and quality improvement. In addition, the TÜV Rheinland team provided guidance on personnel, environmental and medical services, and suggested numerous improvements. Hospital staff have made progress in the areas of courtesy and considerate and proactive service, which has led patient satisfaction to increase from 76% to 92%, resulting in the hospital gaining a good reputation in the medical circles of Pinggu District. After a year of secret investigations and on-site assessments, Beijing Pinggu Hospital successfully obtained TÜV Rheinland SQS certification, becoming one of the few public
08 SPOTLIGHT
comprehensive hospitals in China to obtain an internationally recognised service quality certificate. The hospital underwent approximately 1,000 tests before gaining certification and effected a number of important changes. It created a better service environment by improving the telephone appointment and registration system, reception desk and outpatient services, ward and operating room practices, and pharmacy and testing service, thereby making sure that patients enjoy the most considerate services possible throughout their hospital experience.
TÜV Rheinland’s “service quality system certification” enjoys great popularity TÜV Rheinland’s quality system certification is one of the most authoritative quality management system certification programmes in the world. Many high-end brands in the service industry, including the automotive, health service and tourism sectors, choose TÜV Rheinland to audit and certify their services. Lidu Medical and Beauty has become the first beauty hospital in Asia to obtain an international service quality certificate During the one-year certification period, TÜV Rheinland sent several experts from Taiwan to carry out secret inquiries at Beijing Lidu Medical and Beauty. They carried out an indepth investigation and inspection in accordance with the standards of considerate service, compliance with the zero-mistake safety guarantee system, stable and well-maintained medical equipment, and the quality of the treatment environment for beauty services. Beijing Lidu was also subject to more than 800 inspections of its environmental, product, personnel, marketing, and internal service and its educational training, on the basis of which it realised comprehensive improvement to finally pass TÜV Rheinland’s SQS certification, demonstrating its achievement of the highest international standards.
SPOTLIGHT 09
Taichung North District Government Office and Household Registration Office has passed TÜV Rheinland SQS certification. To improve their service culture, these two government organisations underwent TÜV Rheinland’s inspection and assessment in accordance with the strictest service standards. The process helped them to better understand the effects of service management on educational training, service reviews, and customer complaints and how to ensure the compliance of their environment, processes and service attitude with the relevant service quality standards. TYREPLUS auto service centres audited by TÜV Rheinland
Wenzhou Kangning Hospital has become the first Chinese hospital to pass TÜV Rheinland SQS certification. The examination and assessment comprised two parts, including three experience-based secret inquiries and a document review. The inspection covered the hospital’s full set of procedures, including online and telephone appointments and outpatient registration, as well as the service attitude of staff. The detailed assessment contained more than 500 items. Wang Lianyue, Executive President of Wenzhou Kangning Hospital, said that “we hope we can actually improve our hospital’s elaborate management using our certification as a carrier and integrate the people-oriented service concept into daily medical work”.
For more information, please contact: James.zhang@tuv.com
Auditors from TÜV Rheinland have inspected all TYREPLUS service centres in Taiwan in accordance with the service standards of Michelin TYREPLUS. Areas assessed include personnel, reception, the service process, technical specifications, workshop management, information management and environmental facilities. All centres are expected to meet the strict quality requirements of the Michelin TYREPLUS Auto Service Centre. Frederic Chouquet-Stringer, Michelin Chairman of the Board, said that “our services were enhanced with TÜV Rheinland’s support”. FC Bayern Munich becomes the first soccer club to be certified according to the new TÜV Rheinland standard for “Certified Service Quality – Sport.” In May 2015, FC Bayern Munich successfully met all the requirements of the new TÜV Rheinland standard for “Certified Service Quality – Sport” which was tailored specifically to the needs of sport. FC Bayern Munich underwent an extensive inspection process incorporating both secret inspections on game days and a comprehensive audit with all those responsible. All service areas of the sports club fell under the keen eye of the TÜV Rheinland auditors, including the infrastructure inside and outside the Allianz Arena in Munich, the admission systems, the stands, the facilities and services in the VIP lounges and the full extent of the catering and sanitary facilities.
Mystery shopping
TÜV Rheinland helps companies to identify problems in their service processes and determine the most effective way to improve; learn about the trends of their counterparts and discover differences in service quality. Service quality improvement, management process and system effectiveness audits
TÜV Rheinland has established a customised enterprise evaluation standard and performance management indicator system based on ISO 9001 quality management standards, process review requirements and customer-specific demands, which contributes to the all-around effective, systematic and continuous improvement of service quality. Service quality training and seminars
To improve service management and the personal abilities of their staff, the backbone of any company, systematised training and coaching is provided.
10 EXPERTISE
Establishment of Food Safety Risk Management System of China Author: Tan Hong Food line business development manager, Systems, TÜV Rheinland Greater China
Food is the most basic material which human depends on for existence and development. In our national economy, food industry has become the first major industry. Currently, Chinese food manufacture industry features “domestication of international competitions and internationalization of domestic competitions”. Successive serious food safety accidents in the world and within our country also have raised high concerns over food safety, forcing the governments around the world to take a new look at the problem that has been lifted to a national public security height and to enhance their monitoring over food safety. On April 16, 2003, the State Food and Drug Administration was established formally, marking our
entry into a new phase in food safety work featuring combination of comprehensive and specific supervision. It also indicates the government’s determination of keeping pace with the current situation and ensuring food safety effectively. After that, however, negative news about food safety never cease. We learned from follow-up reports by news media that Chinese eat three million tons illegal cooking oil a year and many other astonishing food safety incidents such as Buyang inferior milk powder, Chongqing paraffin-blended hotpot condiment, Taicang inferior dried meat floss, Shandong “fertilizer-blended” Longkou bean vermicelli, abuse of food additives, and the world-shaking melamine incident…..In comparison
EXPERTISE 11
with developed countries, our food safety supervision started at a later time with more problems. The failure in eliminating food safety problems could finally be attributed to the lack of a complete assurance system for food safety. With increasing concerns over food safety, risk management of food safety has become more and more important. In international trades under the WTO system, food safety has become a vital factor for food trading. Therefore it is urgent to establish a food safety risk management system. An efficient food safety risk management system serves as an important link in modern food safety management. It is a combination of science-based risks assessment, policy-based risk management and information transmission-based risk exchange, while the food safety risk management system of China is immature and still has many problems.
Necessity in establishment of food safety risk management system
2003
EU established the Rapid Alarm System of Food and Feed (RASFF)
2003
Japan set up a food safety committee
2004
US promulgated the administrative procedure for holding of imported food
A series of rules were made to ensure the safety of food trades after the establishment of WTO international trading system. And members of WTO have also formulated and improved their own food safety laws, regulations and relevant systems. In 2003, EU established the Rapid Alarm System of Food and Feed (RASFF). In the same year, Japan set up a food safety committee, and US also promulgated the administrative procedure for holding of imported food in 2004. However what China has done in terms of food safety after joining WTO is far from enough. We must enhance food safety legislation and establish a food safety risk management system in order to adapt to the new international trading system.
Overview of food safety risk management system Food safety risk management is similar to the function of European Food
Safety Authority (EFSA), with the core missions of providing independent scientific suggestion and supports, establishing a network for close cooperations with member countries (of WTO), assessing relevant risks of the whole food chain and providing risk information to the public. Efficient food safety risk management system is an important link in modern food safety management. It is a combination of science-based risks assessment, policy-based risk management and information transmission-based risk exchange. Food safety risk management is also called “risk analysis” under WTO system, which was proposed by Codex Alimentarius Committee initially and in recent ten years, has been applied to WTO/SPS, food safety and other public crisis events. Risk assessment Food safety risk management is similar to the function of European Food Safety Authority (EFSA), with the core missions of providing independent scientific suggestion and supports, establishing a network for close cooperations with member countries (of WTO), assessing relevant risks of the whole food chain and providing risk information to the public. Efficient food safety risk management system is an important link in modern food safety management. It is a combination of science-based risks assessment, policy-based risk management and information transmission-based risk exchange. Food safety risk management is also called “risk analysis” under WTO system, which was proposed by Codex Alimentarius Committee initially and in recent ten years, has been applied to WTO/SPS, food safety and other public crisis events. Risk management Risk management refers to select and implement proper management measures according to the results of risk assessment to control food risks as effectively as possible and therefore ensure health of the public. Food
12 EXPERTISE
safety risk management comprises the following concrete contents: 1
food safety risk analysis and assessment management
2
food safety risk control management
3
food safety risk alarm and prevention management
Risk exchange There must be two-way exchanges between scientists (risk assessors) and government officials (risk managers), and meanwhile, the government and experts should communicate with consumers, media and other interest parties while taking management measures.
Analysis on current status of China's food safety risk management Duplicate food safety supervision In China, food safety is under the joint management of Ministry of Health, Ministry of Agriculture, State Quality Inspection Administration, State Administration of Industry and Commerce and Ministry of Commerce under the coordination at national level of Food and Drug Administration, and the Ministry of Science and
Technology is responsible for setting up and managing relevant scientific research projects. While from a global perspective, food management systems of WTO members could be divided briefly into three organization modes, i.e. pluralistic management, single management and unified management organization systems, among which the unified food safety management system is becoming the objective of reforms in some developed countries.
by the Food Hygienic Standard Committee under the Ministry of Health. The same expert group is responsible for both risk assessment and risk management (standard drafting for example). This is a makeshift adopted due to the shortage of expert resources and does not fulfill the principle of keeping “assessment” and “management” in “risk analysis” independent from each other to ensure scientificity of the process. Serious shortage of scientific talents
Lack of scientific risk assessment In China, food safety supervision objects have long been limited to already known toxic and harmful food and food materials, and food recall only aims to food that has already or may possibly cause food contamination, foodborne diseases or dangers to human body only. However, scientific risk assessment is absent for the safety of new food and food materials as well as for the effects and harms of emerging biological, physical and chemical factors and food processing technologies on food safety. Risk assessment and management under responsibility of the same authority Currently, domestic food risk assessments are carried out mainly
China’s food safety management system covers the central, provincial and municipal food and drug supervision departments, however it is an urgent need to strengthen the supervision capacity building of counties as the food production source and consumption base. Relevant authorities in China now have the most advanced and complete inspection apparatuses, however considering the difficulties in recruiting postgraduates with both food safety risk assessment knowledge and operation capacity, it is hard to believe these apparatuses can be brought to full play by qualified operators. The shortage of scientific talents is just the “Achilles heel” of food safety assessment work.
EXPERTISE 13
Conceiving on building food safety risk management system Build up national level organization of food safety risk management It can be learned from the food safety risk management system of the United States and EU that it is a common trend in the world to set up a department to take charge of risk assessment and exchange. While drawbacks of China’s food safety management system decide China must reform the mess of pluralistic supervision and establish a national level food safety management organization to take charge of both risk assessment and exchange by two independent branches thereunder respectively Establish unified food safety standardization system For the incomplete law and regulation system, the food safety supervision system and mechanism are to be improved. Combined with serious local protectionism, there is no unified new food safety standard and test standard, departments are subject to different standards and even cause contradictions in standard application, meanwhile standards not unified weaken enterprises’ adaptability to market and competition and affect their development; moreover economic activities in domestic and foreign market also suffer frequent disputes and frictions, in which the legal responsibilities are hard to define and law enforcement shrinks seriously. Therefore, with the progresses in science and technology and development of social economy, to establish scientific and unified food safety standard and inspection standard system to serve as the basis of law enforcement has become an urgent task for the modernization and high-technicalization of food safety risk management
Food safety standard should comprise the following contents 1
Limits for microorganisms, pesticide residue, veterinary drug residue, heavy metals, pollutants, or other substances harmful to human body
2
variety, use scope and dosage of food additives
3
requirements for nutrition of staple and subsidiary food special for infants and other special groups
4
requirements for labels, signs and specifications related to food safety and nutrition
5
hygienic requirements for food production and operation processes
6
food safety related quality requirements
7
food inspection method and procedure
8
other contents that need to be set as food safety standard
Build scientific and unified food safety inspection system Food safety inspection and detection is one of important means of food safety management. It provides important technical supports and policy basis for food safety risk management. Currently, though the basic framework of China’s food safety inspection system has taken shape initially, food safety inspection and detection mechanism, facilities, technical forces and means are still not perfect enough, so the building of food safety inspection and detection system should be enhanced constantly. The current outstanding problem is that the quality inspection, health and agricultural departments usually conduct inspections according to their own provisions, the inspection results are relatively independent and there is an absence of inter-departmental sharing and recognition mechanism. Partial inspection results vary greatly, causing effect on the overall function of the inspection system. This shows it is an indispensable assurance for the enhancement of food safety risk management to establish a scientific and unified food safety inspection system and strengthen technical supervision.
14 EXPERTISE
Establish relatively complete food safety emergency responding system In our food safety supervision, there hasn’t been a relatively complete food safety emergency responding system. The fact is that supervision authorities usually response passively and relevant departments hold a joint meeting in a hurry to define responsibilities, work division and procedure in the case of a food safety accident. This kind of emergency handling method has been unable able to control the food safety accident with causes becoming increasingly complicated, and it is even worse that departments may pass buck to each other and have slow and ineffective information communication. Establishing and keeping improving a food safety emergency responding mechanism not only helps solve the above problem but is favorable for the building of food safety law enforcement department. Start food safety risk assessment system as soon as possible We should enhance exchange with developed countries on assessment technology and relevant data and acquire hazard assessment materials from other countries in a timely manner. Meanwhile, food safety risk assessment should be conducted on some food processing technologies and affecting factors with Chinese characteristics in advance, to provide scientific basis and information for food safety standard and early warning so as to forecast and treat food safety accidents in a timely and effective manner and provide basis for determination of whether to recall food and recalling level. Good news is that food safety risk monitoring and assessment work is particularly stressed in the Food Safety Law of the People’s Republic of China adopted at the 7th Meeting of Standing Committee of the 11th National People’s Congress on February 28, 2009, which specifies: the State will establish a food safety risk monitoring system to conduct monitoring on foodborne diseases, food pollution and hazardous factors in food. The health administrative department under the State Council shall formulate and implement a
national food safety risk monitoring plan jointly with departments concerned. Health administrative departments under the province governments, autonomous regions and municipalities directly under the central government shall organize the organization and implementation of food safety monitoring plans for respective administrative regions according to the national food safety risk monitoring plan and in combination with respective concrete conditions. The State will establish a food safety risk assessment system and conduct risk assessments on biological, chemical and physical hazards of food and food additives. The health administrative department under the State Council shall establish a food safety assessment expert commission constituted of experts in the fields of medicine, agriculture, food, nutrition, etc., to conduct food safety risk assessment work. China, currently in an indepth development process of industrialization, informatization, urbanization and marketization, is facing multiple pressures from structure conversion, structural adjustment, environment conservation, people’s livelihood improvement, poverty elimination, etc. In such a circumstance with complicated social interest relationship and frequently occurred natural disasters, safety production accidents are inevitable and public security is facing many new challenges. Therefore, it is now an urgent task to establish a food safety risk system. We are therefore required to enhance our awareness of unexpected development and pay more attention to the building food safety risk system to provide a stable, safe and harmonious social environment for the comprehensive building of a well-off society and acceleration of modernization. We should study and explore the rules in the building of food safety risk system seriously, draw lessons from successful examples and experiences from other countries in the world, and build a food safety risk system in China.
References: [1] Shen Zhongquan, Cao Haitao. Effects of SPS Agreement on China’s Food Trade and Countermeasures [J]. International Economics and Trade Research, 2002,(2):56-59. [2] Ma Suijun, Food Safety and SPS Measures [J]. China Standardization, 2005, (6): 7-11. [3] Wei Yamei, Han Jiayuan, Operation of Food Safety Risk Analysis System of the United States [J]. Agricultural Quality & Standard, 2007, (Supplement): 123-126 [4] Jin Peigang. Food Safety Risk Management Method and Application [J]. Zhejiang Journal of Preventive Medicine, 2006, (5). [5] Li Jiajie. China Ought to Establish Food Safety Risk Analysis Framework—— Interview with Academician Chen Junshi of Chinese Academy of Engineering [J]. Scientific Decision-Making 2007,(10):17-18. [6] Wang Yanlin. Conceiving on Building of China’s Food Safety Legal System [J]. Journal of Henan Administrative Institute of Politics and Law
For more information, please contact: hong.tan@tuv.com
EXPERTISE 15
How to Achieve a 180% Increase in Efficiency ? - Lean Production of a Famous Office Chair Supplier in China Company A only learned about lean production three years ago. Since then, its dock-to-dock has improved by 180%, labour productivity has increased by 10%, inventory has decreased by 50% and RMB 20 million in circulating expenses have been saved. It seems impossible, but Company A did it. Determined implementation of lean production was insisted upon throughout the process, from learning about it, understanding it and studying it to applying it. Lean production made a substantive leap forward possible and laid a solid foundation for the company’s further development.
16 EXPERTISE
Management was under great pressure from increasing costs and declining profit
Before: lean maturity result
Company A is the largest office chair supplier in China of a globally prominent office equipment retailer. It integrates R&D, production and sales. Indeed, it is the most popular large-scale manufacturer of office chairs in China. Three years ago, facing pressure from increases in in-house expenditures and external declines in profit, Company A’s management invited Xian Wanshi from TÜV Rheinland to perform a lean maturity diagnosis for the company. Although management already had a basic awareness of lean production and engaged in preliminary use of lean tools such as 5S and TPM, insufficient personnel capability and a lack of successful experience in lean projects were having undesirable effects. The result of the diagnosis was bad, with the company receiving a lean maturity rating of “Introduction stage”. According to the lean maturity matrix, the company failed in its production plan, manufactured more products than were desired, spent a longer time delivering goods and suffered from poor customer feedback and an overstocking of semi-finished products. The supplier delivery time was as long as 60 days.
Stable stage
90% ≤ A ≤ 100%
Growth stage
80% ≤ B ﹤ 90%
Introduction stage
60% ≤ C ﹤ 80%
Awakening stage
40% ≤ D ﹤ 60%
Sleeping stage
E ﹤ 40%
Matrix of lean maturity rating Production schedule analysis 100 Standardized operation
60 Industrial engineering
20 0 Human resources
Equalization plan
Flexible production plan
Supermarket driving system
Supplier driving system
Work environment Continuous flow
Stagnation in the course of production may extend the production cycle and cause transportation waste between processes.
To resolve this dilemma, lean experts from TÜV Rheinland put forward a package of improvement suggestions to help the company gain unprecedented improvements in efficiency, cost and performance.
The first step for the company to introduce lean production was to narrow the gap between processes by assessing the possibilities for linking its operational processes and steps. The second step was to carry out assembly line work by setting the Takt Time, engaging in operation analysis and improving production line balance to transform mass production into small-batch production and ultimately achieve the goal of a “one-piece flow” operation. Although the company has yet to complete the entire process, the first step alone has decreased its onsite products by 50%.
Traditional office chair manufacturers separate each process in silo operations. Their overall efficiency is commonly low due to their enlarged floor areas and increased inventories resulting from mass production.
Machinery and equipment
40
Three improvements to resolve the crisis and break the management bottleneck
Narrow the process gap and set up continuous production flow
Effect, goal and indicators
80
mass production
Small-batch production
One-piece flow
On-site products decreased
Production driving and scheduling For traditional office chair manufacturers, each production process is scheduled independently to optimise efficiency. As a result, the product made in the previous process is usually not necessary for the next process, and the product in the next process is not urgently needed by the customer. This leads to an increase in the number of warehouses and
EXPERTISE 17 overstocking of finished and semifinished products, especially in peak seasons. TÜV Rheinland suggested that the company use value stream mapping to identify the value- and non-valueadded activities in the purchasing, manufacturing, packaging and delivery processes and to set up “supermarket” systems (buffer zones) in areas without continuous production flow to drive the production of the upstream process. Despite the serious risks of supply shortages and customer complaints, lean experts from TÜV Rheinland advocated that enterprises should insist on the lean production spirit and produce the required quantity. The downstream company suffered two production halts lasting half day due to supply shortages and the practice almost came to an untimely end due to opposition from basic management when it initially carried out the driving system. However, supported by the firm confidence of the TÜV Rheinland experts, the company finally saw the light and after one year of insistence, the date of delivery was shortened from 60 to 21 days. date of delivery decreased
Value stream mapping is a tool that uses symbols or graphics to reveal the materials and information flow of a particular product, work unit or product family based on data collected during the entire product realisation process, from raw materials to finished product.
Flexible production system The assembly lines of traditional office chair manufacturers are suited for special purposes and produce only one or a few kinds of products. Thus, their production equipment lacks flexibility, meaning that two hours may be required for production switching. Most operators are reluctant to change products frequently and prefer at least two days to switch one kind
of product to another. Therefore, semi-finished products are obviously overstocked, and some workers even think that “it is better to buy more machines to ensure no change than to spend a longer time changing them.” Products are produced by specific machines and the operator has only one or few skills. What’s more, most of the manufacturers had no intention to train a multi-skilled operator. To change the situation, the company enacted stimulation policies by encouraging employees to learn multiple skills and participate in skill competitions in preparation for building a flexible production line.
the die change time decreased minutes
Furthermore, it learned the SingleMinute Exchange of Die (SMED) method, screened a video depicting a Formula 1 race car having its tyres changes and decreased the die change time from 2 hours to less than 20 minutes by introducing rapid fasteners and a concurrent work effort from multiple people. Finally, it reset the flexible U-type production line and took advantage of the results of its multi-skilled-operator training to
maximise labour efficiency and meet the market demands for small-batch production and diversification. Consequently, labour productivity rose from 78% to 89%. After the project was completed, the company performed another lean maturity assessment and discovered that it had moved from 69% to 80%, entering the “Growth stage”. According to the matrix, 80% of the indicators received significantly improved scores. Amazing progress was particularly seen in the flexible production plan, supermarket driving system and continuous flow areas. Company A basically
labour productivity increased
established a corporate culture of lean improvement. The general manager mentioned that an effective team was a prerequisite for the success of a lean project. Team members should be managerial staff from all relevant departments and must be willing to act as role models during project implementation. This is the cornerstone of success.
18 EXPERTISE
TÜV Rheinland helps you achieve operational excellence Operational excellence is an eternal topic for corporate management. By virtue of its many years of experience in training and quality improvement, TÜV Rheinland Training and Consulting integrates the Toyota production methodology and uses various advanced international standards to comprehensively evaluate the operation systems of companies and conduct statistical analysis and benchmark comparisons. In this way, it determines a company’s maturity level at the present stage, which is used as the starting point for the introduction and continuous improvement of the company’s lean system. Furthermore, with the assistance of the measurement and analysis tools of the lean system and an overall evaluation of the feasibility, financial strength and economic benefits involved, TÜV Rheinland works out a lean improvement project that is applicable and viable to the company’s development and draws up mid-term strategies and lean development targets for the next 2-3 years. Therefore, companies are provided with realistic and plausible databases to ensure the continuous improvement of their lean production. They are also able to steer clear of the economic and human resource losses that result from blind project launches and avoid missing useful development opportunities. We are dedicated to helping our clients adopt the latest business strategies and management models. Through public courses, internal training sessions and consultation services, we offer customised solutions to companies, help them increase their competitive edge and efficiency and provide added value to their brands.
After: lean maturity assessment Stable stage
90% ≤ A ≤ 100%
Growth stage
80% ≤ B ﹤ 90%
Introduction stage
60% ≤ C ﹤ 80%
Awakening stage
40% ≤ D ﹤ 60%
Sleeping stage
E ﹤ 40%
Matrix of lean maturity rating Production schedule analysis 100 Standardized operation
80 60
Industrial engineering
40
Machinery and equipment
20 0 Equalization plan
Human resources
Flexible production plan
For more information, please contact: Carol.yang@tuv.com
Effect, goal and indicators
Supermarket driving system
Supplier driving system
Work environment Continuous flow
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The risk in computer-based medical equipment such as pacemakers is that they are often insufficiently protected against hacker attacks.
Cyber Attack on Pacemakers
Healthy thanks to software: Regular IT security tests ensure that heart pacemakers, patient monitoring devices and other medical equipment does what it should
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Melbourne 2012: At a security conference, a cyber expert gives a heart pacemaker an electric shock of 830 volts from a distance of ten meters. For a pacemaker wearer, this attack would be fatal. Although this was only a physical test, it shows the risks facing computer-based medical equipment such as heart pacemakers, implants, insulin pumps and much more today. They are not appropriately safeguarded. It is still unknown whether people are affected by cyber attacks, such as on heart pace makers or ventilation devices. USA 2013: Dick Cheney, former US Vice President, said in an interview that he has had the remote control function of his heart pacemaker deactivated due to fears of an attack. But is this actually possible? "Many implants allow a remote connection. This is protected by a user name and password, but often not encrypted, so that doctors can act quickly in an emergency," explains Dr. Michael Berensmann, expert in medical products. The physicist works on the software security of active medical equipment at TÜV Rheinland. In the case of patient monitoring devices, which display and oversee patient data, the security risk is mainly in internal communication. After all, many devices within a hospital are connected to one another: Doctors quickly upload test results to their tablets forward rounds; radiology sends images to doctors; patient monitoring devices deliver vital parameters such as heart frequencies to nurses; programmed injection pumps feed medication to patients; doctors use their work tablet to surf social networks from the sofa in the evening. "The more devices with Internet interfaces are connected to the hospital network, the greater the security risk," says Dr. Berensmann. If the devices are connected to the Internet, they are at risk of attacks that could hold up or even entirely paralyze work at the hospital. Switzerland, June 2014: Parts of the medical records of Formula 1 driver Michael Schumacher are offered to the media following his skiing accident. Digital data theft?
HOW TO: MINIMIZE RISKS To stop the situation getting this far, European companies who want to launch medical products in particular classifications must first be audited and have their technical documentation examined, including with regard to IT security. The aspects examined by Dr. Michael Berensmann and his colleagues as part of an order include whether the software in question has been developed in line with defined processes and which measures the company has planned in case of emergency. If the audit is successful, the manufacturer receives a certificate and is reaudited once a year. This provides quality assurance that protects customers and patients in the long term and that more and more companies are using – including those abroad. Washington, 1 October 2014: The American regulation authority, the Food and Drug Administration (FDA), publishes its guidelines for the security of medical devices, which have been under discussion for more than a year. The guidelines mean that manufacturers must agree to take information security into account even during the development phase of the devices and as part of risk management. Put simply, they need to name possible threats and weak points and evaluate the probability of these security gaps being exploited. In addition, manufacturers must undertake to define defense strategies. "In the USA, there is immense pressure to make medical technology more secure," says Dr. Daniel Hamburg, information security expert at TÜV Rheinland. Together with its American subsidiary Open-Sky, TÜV Rheinland is launching exactly this service on the market, helping manufacturers of medical devices to determine the technical risks behind their products. This is one building block that will allow implementation of the new, stricter FDA requirements. "It is becoming increasingly important to take IT security into account throughout the entire life cycle of products, systems and software and to establish the appropriate security architecture. The financial cost of this is usually many times lower than the potential damage caused by a real attack, which may occur sooner or later," explains Dr. Hamburg.
ONLINE RESCUE ABOVE THE CLOUDS Alongside the many risks and side effects that medical devices bring, they also offer many opportunities. The current audit, on which Dr. Berensmann is working, is proof of this: "If someone has a heart attack on a long-haul flight, it is possible to use a special device to create an ECG, measure the oxygen saturation, and forward the data to a doctor on the ground via video conferencing. He can then provide further instructions." In addition, the world of apps and smartphones is expected to encroach further into the medical market in future. Apple has already showcased the first watch with heart rate sensor and speech function. If such medical and recreational apps are to have value for more than just leisure activities, important questions of data security and protection against hacker attacks need to be answered here, too.
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IN-EAR-SOFTWARE A cochlear implant recreates some hearing in people who are profoundly or completely deaf. It sits behind the ear and is connected to implanted electronics and electrodes through the scalp, thus bypassing the damaged parts of the ear. Audio signals are transmitted to the brain via the auditory nerve in coded form as electrical signals. However, cochlear implants use wireless data transmission methods and need to be protected against hacker attacks, for example, to prevent them being manipulated from outside.
Ward rounds with tablets: More and more devices in hospitals are connected to the Internet via Bluetooth, WLAN or USB and are an integral part of modern treatment.
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TÜV Rheinland Opens Food Lab in Shanghai World-class facilities. Professional technical team. One-stop local services TÜV Rheinland announced the opening of its new Shanghai Food Laboratory in April, which integrates and strengthens TÜV Rheinland’s capabilities in Greater China. Equipped with worldclass facilities, the Shanghai Food Lab also has a highly competent technical team. By offering advanced and reliable quality assessment and certification services, it will help food suppliers build credibility and achieve business prosperity.
Being one of the first batch of food testing labs that conform to the new requirements of CNAS-CL09:2013
Covering a floor area of around 1,000 square meters, TÜV Rheinland’s Shanghai Food Lab is located in Zhabei District of Shanghai, the pilot district of the country’s public inspection and testing services. As one of the leading and most sophisticated food testing laboratories in the world, the lab introduces a variety of advanced biochemical analytical devices such as GC-MS (gas chromatography mass spectrometry), LC-MS (liquid chromatograph-mass spectrometer), ICP-MS (inductively coupled plasma mass spectrometer) and fully automatic kieldahl azotometer, which enable the lab to conduct physical-chemical analyses and microbial index test in accordance with international standards. It has the ability to test and identify nutrition levels, pesticide residues, heavy metals, food additives and microorganism, especially in food and water. The lab meets the ISO/IEC 17025 standards and is among the first batch of food testing laboratories that conform to the new
requirements of CNAS-CL09:2013, thanks to its bio-safety and the accuracy and reliable testing data it provides. From construction to design, the Lab has strictly complied with the bio-safety prerequisites of WHO labs as well as the new requirements of CNAS (China National Accreditation Service for Conformity Assessment) on microbiological tests. The new CNAS requirements are intended to avoid potential cross contamination and to enable assessment of microbial risk factors. In recent years, food-safety-related scandals have frequently made headlines in the media, severely affecting the credibility and reputation of the food industry. With increased public awareness on food safety and greater demand for high-quality food, inspection and testing organizations have a compelling reason to expand the testing range and to strengthen their technical capabilities.
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Qingdao
Shanghai
Fuzhou Taipei
Kaohsiung Shenzhen
TÜV Rheinland Food Labs
Haikou
Lab Area
Nutrition levels Pesticide residues
Stringent system process & transparent information In the modern market economy, the complexity of the food supply chain has increased manifold. The vigilance on food safety is particularly crucial in the backdrop of multifaceted processes of planting, breeding, processing, packaging, transportation and distribution. Against this background, in 2013, TÜV Rheinland globally started issuing universal labels for food products and food management systems that pass its stringent inspection, testing and certification processes. It not only makes the relevant information absolutely
Heavy metals
Microorganism
Food additives
transparent but also available anytime and anywhere in the world. The food safety solutions provided by TÜV Rheinland will help food enterprises to become more competitive and reliable thereby strengthening their credibility and reputation among customers. As an independent service supplier, we provide food producers with onestop customized solutions including inspection, testing, and audit and certification services. This competency shortens cycle time and increases service efficiency, benefitting food producers by reducing risks and costs of food quality control and monitoring. Currently, TÜV Rheinland has a number of food
laboratories and technical teams across Greater China, notably in cities like Shanghai, Shenzhen, Qingdao, Fuzhou, Haikou, Taipei and Kaohsiung. From April 10, the food enterprises located in Shanghai and others parts of eastern China can enjoy the comprehensive and efficient services provided by the Shanghai Food Lab. The lab will also seek to enhance the food safety standards across eastern China by extending professional technical support and consultancy services.
For more information, please contact: laura.yan@tuv.com
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Zoomlion Founded in 1992, Zoomlion Heavy Industry Science & Technology Development Co. Ltd. is mainly engaged in developing and manufacturing major high-tech equipment for infrastructure construction in the areas of building, energy, environmental, and transport engineering, and it is a continuously innovating global enterprise. The company has independent intellectual property rights in 13 major categories and 86 product lines, as well as nearly 800 leading products, and it has the most complete global product chain of any construction machinery company.
Cooperation Cooperation between TÜV Rheinland and Zoomlion began with a focus on product testing and market access in 2005. Liu Quan, Director of the Zoomlion Group said that “both TÜV Rheinland and Zoomlion are the leading players in their own fields. The wide and in-depth cooperation between us is sure to achieve win-win situations with mutual benefit. Our R&D engineers have now gained a better understanding of European and American product safety requirements with the assistance of TÜV Rheinland. That has been of great help for them in designing and manufacturing products that fulfil international safety standards”.
Challenge In response to the global market demands, Zoomlion began to explore and conduct international certification Overseas mergers and acquisitions, increase in product exports and ISO/TC96 certification all point to the success of Zoomlion’s expansion into the international market
Related services of TÜV Rheinland Crawler crane CE and cTUVus certification
Solutions
ISO 9001:2008 Quality Management System ISO 14001:2004 Environmental Management System
Zoomlion has completed a comprehensive CE and North American certification for crawler cranes and conducted certification tests for mobile cranes with TÜV Rheinland, the nation’s first company to be certified in these two types of products. Zoomlion took only two years to complete CE and North American certification in over 20 models of crawler cranes, and became the nation’s first company to complete crawler crane and mobile cranes certification, an amazing feat achieved by the cooperation of two dedicated parties.
OHSAS 18001:2007 Occupational Health and Safety
Case 1 Over thirty experts from Zoomlion’s central research institute, concrete machinery companies, industrial lift companies and China Construction Machinery Test Center discussed with TÜV Rheinland on current technological trends.
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Case 2 Knowing that the command and use of international standards is crucial to international market development, TÜV Rheinland’s Commercial Products Division provided training sessions for Zoomlion on topics related to almost all of Zoomlion’s export products’ machinery directives, EN60204, ISO13849, EN474, emissions, noise EMC etc.
Case 3 In 2006, Zoomlion obtained the three-in-one certification recertification. This certification is conducted in accordance to ISO 9001:2008 Quality Management System, ISO 14001:2004 Environmental Management System and OHSAS 18001:2007 Occupational Health and Safety. This audit involved nine direct departments, ten subsidiary companies and six industrial parks. Zoomlion successfully obtained recertification in 2011.
Both TÜV Rheinland and Zoomlion are the leading players in their own fields. The wide and in-depth cooperation between us is sure to achieve win-win situations with mutual benefit. Senior President of Zoomlion Heavy Industry Science & Technology Co., Ltd
Zhengfu Yin
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Murata Solid Strength in Global Certification— Providing Comprehensive Support from R&D to Certification The story of Murata began in 1944 when it started as a manufacturing company involved in researching and developing electronic parts using ceramic materials. Over the past 70 years, Murata has continued to develop by adhering to its management concept and slogan “Innovator in Electronics®”. Murata’s one-stop production system from materials to products contributes to the accumulation of unique technologies such as materials technology, process technology, design technology and manufacturing technology, together with the related software and analysis evaluation technology. These technologies connect and relate to each other in R&D, and technicians specialised in different fields exchange information, thus forming a vertical integrated technology system, creating greater technical strength for Murata and ensuring it has an advantageous position in the market. Murata mainly focuses on the development and manufacturing of products using ceramic as its main material and production equipment. Murata has extended its business to various special purpose sensors, wireless communication modules, power modules and so on. As for product technology, Murata always devotes itself to the research and development of “miniaturised, highly reliable and highly accurate” products. Many of its products, such as ceramic capacitors, EMI noise filters, SAW filters and MEMS sensors, rank No. 1 in terms of the market share in their respective product fields.
Challenges Murata is actively forging ahead with the Internet of Things, smart healthcare, smart home, intelligent lighting and smart wearable devices, and providing mature sensor technology, wireless communication and related products and integrated solutions for the global market and consumers. Therefore, it is necessary for Murata to have accurate knowledge about the technical requirements and management standards of every target country and region for different types of products, to quickly pass the certification of corresponding products and ensure the products enter the market successfully.
Solutions TÜV Rheinland has successfully carried out global market access services, including EU R&TTE certification, NA FCC/IC certification, HK OFEC certification, Taiwan NCC certification and ZigBee HA certification, for several of Murata’s wireless communication modules and terminal devices. TÜV Rheinland has also provided consultation services in the R&D stage, helping Murata’s developers to fully understand the relevant regulations and requirements. Therefore, regulation compliance was considered from the beginning of the product design process, which helped to avoid later modifications and reduced the time-to-market.
Related TÜV Rheinland Services Technical seminars on wireless and communication products. Training on global market access. Consulting service on other certification requirements.
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Cooperation The cooperation between Murata and TÜV Rheinland began with the ZigBee HA certification of smart household products. At that time, Murata manufactured two ZigBee-based smart household products for its customers. As an authoritative organisation that conducts ZigBee certification and is officially accredited by ZigBee Alliance in Greater China, TÜV Rheinland has offered ZigBee HA certification services for Murata’s products and helped Murata to successfully complete the certification process, deliver its products to customers and bring these products to market in time. Since then, Murata and TÜV Rheinland have rapidly developed cooperation in other fields. During our cooperation, TÜV Rheinland has really impressed Murata with its specialised and high quality services.
Related Cases In the research and development stage, Murata was very strict and repeatedly checked every technical detail according to regulations and requirements. Murata’s R&D staff effectively communicated with experts from TÜV Rheinland at the beginning of the R&D of the latest ZigBee smart lighting project. This early involvement helped to ensure familiarity with the latest requirements of the ZigBee Alliance during the certification process, and to avoid the modification of products caused by misunderstanding the certification requirements. During the system design stage of new products, experts from TÜV Rheinland also participated in and assisted Murata’s R&D staff to fully understand the regulations and requirements and clarify the meaning of every technical indicator. They also evaluated the feasibility of corresponding projects, which helped Murata to avoid numerous detours.
As a hundred-year-old, well-known certification institution, TÜV Rheinland is our 24-hour one-stop product test and certification partner. Vice President of Murata (China) Investment Co., Ltd.
Dr Sun Kunquan
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Editor's note Ordinary people, extraordinary heart. TÜV Rheinland boasts over 3,000 employees in Greater China. Though they are positioned at different departments with different jobs, we've found every day there are extraordinary stories everywhere. Starting from this issue there is a special column for these heroes. Dear readers, have you met him/her before? Come and learn more about him/her.
]
Start up Something
“New” and “First” Again!
——Interview of Jonathan Lam,
VGM, Industrial Services
”He has been sick for some time before he takes up TÜV Rheinland’s job. His love for the job helps him to overcome all the difficulties for winning several projects, including the first wind turbine inspection project in Hong Kong.” Who is he? He is Jonathan Lam, vice General Manager of Industrial Services.
How did you enter the industrial sector? There is only one word to describe it: “New”. I joined the certification industry in 2002 without prior knowledge in this industry. I started with a “New” no-name testing business called RoHS in SGS and now it is a billion dollar business. Then, another “New” opportunity came for me to manage the business in Asian countries, many of which I had never been to before. Again luckily, I have achieved to make my business stream in Korea from zero to become Top
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No. 2 in the market by the time I left Intertek. After years in the consumer product industry, I stepped into yet another whole “New” horizon on industrial services especially on energies. I have established several energy programs in Japan even though TÜV Nord did not even have an office there.
What motivates you to develop Energy efficiency and Wind Energy business? I would like to use another word, which is “First”. I believe that “First”comer will make the successful path easier. Like my “First” project in the industry is “RoHS”. It is still one of the miraculous businesses that have been talked about in the industry for the last decade. I recently helped TÜV Rheinland to capture the “First” wind inspection service ever done in Hong Kong. This “First” feeling becomes an enormous drive to achieve “New” in the business.
Have you encountered any difficulties in taking up this job? The biggest difficulty and downfall to me is that my health turned bad last year after years of battles in this industry. At that time, I was a Branch Director of a local office of an international certification company and I had to quit my job and took a rest for more than half a year before joining TÜV Rheinland. Thanks to TÜV Rheinland for giving me a reviving opportunity to start up something “New” and “First” again. I know that my body will not restore to my prime years. But, I believe that if my heart and mind can keep up, I can still be better every day to overcome my physical handicap.
Do you have any role model? I do not have any role model in my whole life. I believe that every single person has his or her goods and bads. For every successful individual, they need to execute their own good’s at the right time and the right environment with the right team. I am learning and practicing this every day even though I know it is still a long way for me to go.
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Starting Young with Food Safety Branding Event
TĂœV Rheinland and Affiliated Experimental Elementary School of University of Taipei Host "Junior Food Safety Detective" Event Growing public interest in food safety has highlighted the importance of proper food safety education for consumers. To educate children about their everyday foods, TĂœV Rheinland hosted the "Junior Food Safety Detective" event at the school carnival of the Affiliated Experimental Elementary School of University of Taipei on March 31. The event had three parts: "Defeat the Nasty Food Factory" where a board game introduced children to common
food additives and their uses. In the water testing, "Find the Invisible Suspect", when the reagent reacts with "chlorine" in the water it forms chlorine ion compounds that appear pale yellow in an acid environment. This fact is to teach children how to check that water contains chlorine and is potable. Last came the oil testing, "Slippery Conman" that used the color scale on the test paper to test oil products and see how much "free fat acid" from being repeatedly subjected to high temperatures. Children were taught how to use this to identify poor-quality oil products. The event attracted around 270 enthusiastic elementary school students on the day. The children all had the chances to do the tests and were full of questions. They not only learned about proper food safety concepts but also came away with many happy memories.
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USA
Malaysia
TÜV Rheinland PTLTests Racking Systems & Solar Trackers to New Standards
TÜV Rheinland Malaysia approved as Conformity Assessment Body
After years of testing photovoltaic (PV) mounting systems to internal standards as well as to UL Subject 2703, TÜV Rheinland PTL has begun testing and certifying ground and roof-mounted racking systems and clamping devices in accordance with the First Edition of UL 2703 recently approved by the American National Standards Institute.
As of 15 October 2014, TÜV Rheinland Malaysia was registered as a Conformity Assessment Body (CAB) by the Medical Device Authority of Malaysia to conduct conformity assessments in accordance with the Medical Device Act 2012 of Malaysia and its related regulations. Under this act, conformity assessments are required for manufacturers, distributors, importers and authorized representatives of medical devices imported, exported or placed on the market within Malaysia.
TÜV Rheinland PTL also has extensive experience testing tracker systems in accordance with UL Subject 3703 and now evaluates solar trackers in accordance with the new IEC 62817 standard. Moreover, the organization can perform UL 2703, UL Subject 3703 and IEC 62817 qualification programs simultaneously at the same location. TÜV Rheinland PTL has extensive experience testing PV racking systems, having developed and tested to an internal standard prior to the availability of UL Subject 2703. The organization has also developed expanded PV mounting system testing services to enable manufacturers to further enhance their reliability, durability, and bankability claims.
With the approval as Conformity Assessment Body, TÜV Rheinland Malaysia aims to capitalize on the growing investment in the medical devices industry and the local requirement for conformity assessments to be done for all medical devices manufactured, distributed, imported and exported from within Malaysia.
Japan
Germany
TÜV Rheinland Japan registered as Designated SII Certification Body
The European Funded project “Solar Bankability” project has started
TÜV Rheinland Japan Ltd. was registered as a designated certification body under the Sustainable open Innovation Initiative (SII) as part of the “Project to support the introduction of lithium ion storage batteries for stationary applications,” a subsidy scheme covered under the supplementary budget for fiscal 2014. Applications were opened on March 16, 2015, on the basis that consumers purchasing power storage systems will receive a subsidy equivalent to two thirds of the difference between the purchase price and a predetermined target price for each device (subject to an upper limit).
On 1st March 2015 the European Project “Solar Bankability” was launched. Over the next two years, the consortium which is composed of 3E, ACCELIOS Solar, EURAC, EPIA and TÜV Rheinland will work intensively with the support of an Advisory Board of expert stakeholders from different parts of the PV industry value chain. The goal is to increase trust by establishing a common practice for professional risk assessment based on PV technical and financial due diligence. The consortium will focus on technical risks, on the way they translate into costs and on the way financial returns appear in different business models.
Compared to the equivalent subsidy scheme that existed previously, new details have been incorporated into the current scheme. Standards for earthquake countermeasures have been added in the interests of safety. They require battery cells and power storage systems to undergo testing and obtain a certificate of compliance with earthquake countermeasure standards, clearly demonstrating that they have been screened and approved by a designated certification body.
This project has received funding from the European Commission's Horizon 2020 - Research and Innovation Framework Program under grant agreement No 649997.
TÜV Rheinland Japan will now be providing testing and certification services for those eligible to apply for subsidies.