O&M Reform

Our aim is to become a world-class operator of thermal power stations and develop new business projects for the global market. In order to achieve that, we are conducting a Value-up Project (O&M* reform) at all our thermal power stations. We have been striving to decrease fuel, repair, and other costs while doubling productivity by reducing the processes required for periodic inspections and by reforming our procurement system.
In the future, we are going to establish the operational approaches for Fuel & Power stations by further promoting our Value-up Project. Our goal is to strategically digitalize and systematize the operation data, inspection data, and other know-how we have accumulated thus far. This will allow us to meet global standards and create new business models.

*This abbreviation stands for "operation and maintenance."

Establishment of Operational Approaches for Fuel & Power Stations

We are currently carrying out the operation and maintenance reforms for our power stations by incorporating external perspectives. As far as our operations are concerned, we are aiming to reform our production processes by utilizing the knowledge of Daicel Corporation, a manufacturer of chemicals. To be more specific, we are verifying the production innovation processes at Shinagawa Thermal Power Station while formulating a master plan and confirming the applicability towards deployment to all our thermal power stations. On the other hand, we are trying to improve (kaizen) our maintenance work by utilizing the knowledge of Toyota Motor Corporation. In the future, we strive to perfect our approach, speed up the expansion of our methods across the company, and further intensify our efforts toward improvement.
However, we are not going to base our reforms only on the knowledge obtained from other companies. We will absorb that knowledge and make our own improvements as we continue our efforts to establish the operational approaches for Fuel & Power stations.

Reducing Periodic Inspection Period

Thermal power generation facilities are operated at high temperatures and high pressure. Due to the harshness of such environments, the facilities need to be inspected and maintained periodically. Any deteriorated parts also need to be regularly replaced or repaired. Reducing the time required for periodic inspections directly leads to a reduction in fuel costs amounting to several hundred million yen. By training and making arrangements before the inspection starts, by managing each small task of the inspection process in minute intervals, and by reducing the amount of personnel assigned to each task, we have managed to shorten the periodic inspection periods at our coal-fired thermal power stations by more than half.

Procurement Reform

In order to become more competitive, a company must reduce its costs in addition to increasing its profitability. Since improving the procurement capacities can lead to significant cost reductions, our company is currently carrying out a procurement reform. We are conducting quantitative analyses of our current procurement capacities while preparing procurement strategies and plans to improve our design and procurement processes. We are also committed to improving our skills on a regular basis with the aim of enhancing our procurement capacities.
Our efforts include creating guidelines for standardization and collecting records of procurement operations and price analyses in a database. This serves to further develop our measures for procurement reform.

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