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Relationship with Suppliers

Quality Control Measures

For JGC, vendors are not merely the suppliers of the materials and equipment necessary to accomplish our projects but are valuable partners whose contributions make it possible for us to satisfy the quality and schedule standards demanded of us at competitive costs and thus successfully complete those projects. Nor does the quality of the equipment and materials provided result just from our own quality management efforts. Vendors place a high priority on developing an environment that will give rise to improved quality through a process which we call, “Creating a Quality Culture”.
JGC is active in promoting this quality culture movement and, since 2013, we have been conducting “Quality Culture Building” Workshops with the aim of instilling an awareness among vendors of the need for effective quality management in procurement and the reduction of costs.

Listed below are specific examples of these activities.

Second JGC Quality Forum 「Quality is Our Value“KIZUKI”」

Second JGC Quality Forum 「Quality is Our Value“KIZUKI”」
Group photo of Second JGC
Quality Forum

From 2016, we invite domestic and overseas vendors to participate in an annual “JGC Quality Forum” at our head office in Yokohama where they have the chance to introduce the steps they are taking to improve quality and make known the successes they have achieved.

By having the participants share information on the successes they have had together with examples of instances where efforts have not borne the expected results the event gives rise to spirited discussions involving all. This is especially evident on the final day when our engineers and senior management figures join in the discussions and upwards of 200 attendees engage in an exchange of views.

This year, the Second JGC Quality Forum was held on the 19th of January, 2017.
Last year, representatives from 19 vendor companies took part, but this year 36 such companies participated together with 5 of our client companies, making a total of 41 participating organizations, and attendance exceeding 100 guests. By inviting clients to take part in the Group Discussion sessions gave the opportunity for them to hear at first hand the efforts being made by JGC and the vendors to create a quality culture while also allowing us to hear their views on this important subject.

Introduced below are highlights of the event.


This year, the prize for the “Best Presentation” went to a Chinese cast metal valve maker. This company started by identifying clearly the ideal form for each of its functions, then recognizing the gap between the ‘ideal’ and actual situation and setting targets for bridging the gap and doing all of this on a company-wide basis.

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Panel discussion

In addition, on this occasion, clients and vendors also took part in the Panel Discussions. In this way, JGC (the EPC contractor), the vendors and the clients were able to give their opinions from their own standpoints on the topic of “What can be done to do away with quality problems and improve the level of quality?” In these discussions, all sides participated energetically in putting forward their respective opinions and proposals.

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Participants hear an explanation of
the activities during
the factory tour

JGC organizes its "KLEPPA Tour” for the purpose of giving various vendors the chance to observe the operations of a vendor who has successfully established an organizational Quality Culture which has led to great improvement in quality.
As the first such undertaking, we made a visit to a Korean Wrought Fitting vendor who received the “Most Impressive Presenter” award in the first Quality Forum held in January 2016. This KLEPPA TOUR gave an opportunity to all vendors who participated in the tour to get some KIZUKI (hints) for their improvement.by way of "Seeing is Believing". We commit ourselves to taking leadership in building up Quality Culture at all of our vendors.

Quality Culture Cultivation Work shops with Vendors

Quality Culture Cultivation Work shops with Vendors
JGC president in discussions with
vendors during the workshop.

JGC conducts Quality Culture Cultivation Workshops with our vendors. Since quality management involves not only management level personnel, JGC staff actively communicate with supervisors and foremen in the production line who then participate in the Workshop to think about and discuss Quality. As a result, all attendees come to understand that quality products are made where a quality culture has been established. At the end of the Workshop, each vendor builds its unique action plan to develop and nurture its Quality Culture. After the Workshop, vendors have all of their employees become involved in the cultivation of their Quality Culture.
JGC also continually monitors the progress of action plans and from time to time gives advice on how to facilitate those action plans. JGC support positively encourages all these vendors to continue their respective action plans to successfully promote their Quality Culture.

Supporting Suppliers is the JGC Way


Logistics is a major key to project completion. Transporting ultra-heavy and ultra-large cargo, particularly items such as large modules, with safety and reliability requires the vast knowledge that JGC possesses, together with our strong sense of mission and responsibility. Accidents that occur in logistics can have incalculable effects on a project. At JGC, therefore, we are engaged in "Absolutely Safe Transportation," a campaign aiming for zero cargo accidents, zero personnel accidents, and minimal environmental impact from transportation. The campaign covers a wide range of activities, but one major element at present is exercising leadership in establishing a culture of safety by providing joint venture partners and cooperating companies with education on how to provide safe transportation. Going forward, we will continue sharing these activities with all the people involved in our projects, taking steps to instil further awareness of transportation safety so that JGC Logistics will achieve "Absolutely Safe Transportation,” enabling us to fully meet our customers' expectations for safety.



Manufacturers in emerging countries are eager to take on the challenge of producing equipment that is more difficult than they have previously tackled. At such times, engineers from the Company’s Vendor Technical Support Group (VTSG) join the manufacturer in question to get a feel for the manufacturing facilities and the capabilities of the designers, offering appropriate guidance and helping them achieve their new goals.
If a supplier causes quality problems, rather than terminating the relationship, it is in JGC’s corporate DNA to instead pursue the cause of the problem together with the supplier and to support their quality improvement activities.
Our mission is to expand our “Absolute Safety Transportation” activities that aim at “Zero freight accidents,” “Zero accidents resulting in injury or death,” and “Minimizing the environmental burden of transportation,” in order to establish a “culture” of safety, and to foment a “culture” of quality by creating an environment in which quality is naturally generated rather than simply managing the quality of equipment and materials.
For these reasons, we will continue to demonstrate strong leadership going forward.