Page 56 - KRA Annual Report 2020

KRA ANNUAL REPORT Company
2020 Improvement
Activities

1. SALVAGING TECHNOLOGIES DEVELOPMENT

During FY2020, there is a change in the sales component composition, where in terms of quantity
composition, non HD785 components increase compared to HD785 components. This resulted in the
achievement of minimal cost reduction in the first quarter which was only contributed by improvement
activities on the HD785 as a popular model.

So that KRA has expanded its improvement activities on Non HD Components to achieve cost reduction
targets, such as the Engine HPI models, PPM components, Final Drive PC1250/2000, etc.
Beside focusing on metal part salvaging, KRA has been expanding salvaging for non-metal parts material
such as sensor & polymer material.

By addition the improvement items, KRA has expanded cooperation with the Komatsu network, in order to
utilize their capability and facility as part of synergy activity. The collaboration was carried out with Oyama
Plant, KI (KBN, MTC, Hydraulic as well as Foundry), MEDC Osaka, Awazu Plant, also initiate to collaborate
with Koriyama Plant as the mother plant for hydraulic cylinder.

Currently, the salvaging method is increasingly limited and remains for a specific part with a high replacement
ratio. For this reason, in collaboration with MEDC, investigations have begun for salvaging on specific parts
such as bearings, gears and splines with application targets in the next 2-3 years, also part of mid-term plan
of salvaging.

1.1. SALVAGING FOR HD COMPONENT

On the other also need to keep continue research and study for develop salvaging and reusable method for
Engine and Power Train Component. But, not only for cost reduction purpose, but also for enhance the
speed. By supported MEDC and Oyama Plant, KRA has been developing the salvage for the turbocharger
of engine. By covering the KTR110 and KTR130 models, the reman needs for turbocharge on all engine

To ensure the quality of the reman parts, KRA has brought
in an engine test bench to get accurate balancing, so that it
is ensured that the quality of the reman turbocharger issued
is like the quality of a new turbocharger.
This step is also part of KRA's efforts to increase customer
support for the needs of 'midlife components'

1.2. SALVAGING FOR NON-HD COMPONENT

Starting from July 2020, the sales number of Non HD785 Components has increased in ratio. For this
reason the salvaging development has been changed, focusing on component with high sales, especially
Non HD785 Components, such as D375 Engine (actuator), PC1250 FD (Hub), PC1250 ENG (blowby
sensor), WA800 FD (case), etc.

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