Those who operate relevant machines at JForge’s production site are workers the firm has employed locally in Okayama Prefecture. “We learned how to operate it through creating prototypes,” JForge President Yoji Ishikura said, referring to the operation of the press, the introduction of which was unprecedented in Japan.

Five years have passed since the plant started operations. Ishikura said, “We have made it to the point where we are recognized as a maker of large forged components.”

Improving productivity is the current task that needs to be addressed by the company. The production process is essentially unchangeable as it has already obtained a necessary industrial standard in that regard. So, the company seeks to “continue steady efforts” through reducing time for various arrangements and improving jigs and industrial tools, according to Ishikura.

It is also addressing the increase in the number of production items, promoting development and introducing a new production management system. The firm is poised to realize the betterment of both quality and productivity with the use of artificial intelligence to advance automation.

Integrated production efforts

Approximately 3 million components are used per airplane, and small- and medium-sized manufacturers support the production of aircraft as suppliers.

There are many instances nationwide where these companies form joint organizations called “clusters” to promote streamlining through integrated manufacturing and jointly accepting orders. One example of this is the Aircraft Parts Manufacturing Cooperative (APMC) in Matsusaka, Mie Prefecture, which is known as the Matsusaka Cluster.

The process of ordering that is characteristic to the aircraft industry has been dubbed the “saw order” in Japanese, which is likened to the tool’s back-and-forth movement. The concept describes a series of business exchanges between major heavy industry companies — ordering parties engaged in the production of airframes and engines — and their subcontractors. Ordering parties are delivered processed goods from suppliers, and then in the following process, the former places another order to other subcontractors.

Typically in this type of order procedure, longer lead times, as well as growing management and logistical costs, need to be addressed when boosting the cost-competitive edge that the entire supply chain requires. The Matsusaka Cluster was established with the aim of solving such issues in April 2015.

Breaking standard methods

The Matsusaka Cluster began facilitating a joint factory in March 2016, gradually beginning production in autumn 2017.

This cluster’s member companies comprise 10 small- and medium-sized businesses based in such prefectures as Aichi and Gifu that have been engaged in the aviation industry for many years.

Represented by Kato Manufacturing Co. CEO Takashi Kato, whose company is headquartered in Kakamigahara, Gifu Prefecture, the cluster performs integrated production of airframe parts at its jointly owned factory for Boeing Co. There is a possibility for the cluster to produce components for the domestically made regional passenger jet, Mitsubishi Regional Jet, that is under development by Mitsubishi Aircraft Corp. based in Toyoyama, Aichi Prefecture. Mitsubishi Aircraft is a subsidiary of Mitsubishi Heavy Industries Ltd.

Above all, it’s very significant that companies participating in the cluster can handle special processes such as heat treatment, shot peening, surface treatment and coating. If there were no companies that could deal with special processes within the cluster, it would have no choice but to outsource such work, stripping the merits of integrated production at the jointly owned plant. It makes it possible to transcend the saw order through integrated production featuring a continuous processing procedure, beginning with company A, followed by company B and then company C.

Management through IT

In the meantime, preparing a shared production management system is essential for each company to collaborate on production. If the participating companies use different systems, they cannot expect the benefits of integrated production. So, the Matsusaka Cluster member firms have been developing an optimized production management system for their use.

“The system is an absolute necessity,” General Manager Tatsuya Masaki of the Matsusaka Cluster said, stressing its importance. The system is apparently nearly completed.
The cluster also introduced electronic data interchange (EDI) not only for its production management, but also for receiving and placing orders within participating companies. Their EDI system has been customized, based on that of the automotive industry, to feature necessary elements in making aircraft components to further improve productivity.

The cluster plans to expand component processing operations, which have been conducted within each company, to the jointly owned factory to boost the production ratio. The cluster will enter a crucial stage for its full-fledged operation.

Clusters spreading nationally

So far, there are about 40 cases of such clusters being established across the country.

For example, there is Kansai Supply Chain, which has successfully received an order for a processing procedure. Many of its participating companies have sought to enter the aviation industry for the first time from other industries. In the Niigata Sky Project, relevant organizations aim to achieve integrated production at a planned joint factory, which is supposed to feature an automatic guided vehicle system to save manpower.

While some clusters have already started their activities to receive orders, there are also other organizations that are about to form such entities to venture into the aviation field. One of these is the Hokkaido Aero Business Network, which launched in July, the first of its kind in Hokkaido.

In a bid to encourage these moves, METI helped establish The Nationwide Network of Aircraft Manufacturing Clusters as a way to facilitate collaboration across the country.

The Matsusaka Cluster, an example of such efforts, is proceeding on track, and is expected to produce excellent results from boosting such corporate collaboration.

Asia supply chain forum

On Nov. 27, METI will hold the Asia Aircraft Supply Chain Forum. Forty percent of new aircraft will be purchased in the next 20 years in the Asia-Pacific region and large aircraft companies are interested in working with Japan in order to collaborate with Asian companies. Japanese companies have an extensive network and experience in the manufacturing industry in Asia.

This forum will provide good opportunities both for companies that are already engaged in the aircraft industry and for those that intend to newly enter into the industry. Interested parties can register at http://www.meti.go.jp/english/press/2018/0926_004.html .

MRJ is an aircraft with 76 to 88 seats that is being developed by Mitsubishi Aircraft Corp., a subsidiary of Mitsubishi Heavy Industries Ltd., based in Toyoyama, Aichi Prefecture. This marked the first development of an aircraft in Japan in half a century since the YS-11 airplane, the first domestically built plane after World War II.

Japan’s aviation industry has a history of development as a supplier to U.S. Boeing Co. Major domestic heavy industry manufacturers, including Mitsubishi Heavy Industries, have produced parts of Boeing’s aircraft such as primary wings. The development of MRJ is significant in that it means building a finished product in Japan, surpassing the position of a supplier.

Mitsubishi Aircraft is scheduled to deliver the first aircraft to its first customer, All Nippon Airways, in the mid-2020s. However, the delivery had been postponed five times as the company has faced difficulties after a long absence of engagement in developing a finished product.

The company has not received new orders in the past two years, possibly because of developmental delays. In such a situation, an airshow plays a crucial role. Two of the world’s biggest airshows are the Farnborough International Airshow, held during even-numbered years, and the Paris Air Show, conducted during odd-numbered years. A flying display is an important opportunity for makers to showcase an aircraft’s capabilities to airline companies.

Mitsubishi Aircraft displayed the actual MRJ craft for the first time at the 2017 Paris event, but it didn’t take flight.

“This time, we were able to show the guests from airline companies (MRJ’s) actual flight, which helped us stand at the starting line,” Mitsubishi Aircraft President Hisakazu Mizutani said of the significance of the aircraft’s flying display.

Appealing performance

Each exhibitor sets up a facility called a chalet and invites executives of airline companies. Chalets line a hill overlooking a runway and exhibitors showcase their flying displays to those watching from a terrace on the chalet’s second floor.

Mitsubishi Aircraft invited about 100 guests to its flying display on July 16. “We had guests experience the plane’s quietness while it was in flight; that is our selling point,” Mizutani said.

MRJ held flying displays for three days during the show. The aircraft performing the display — the No. 3 testing aircraft — was painted in ANA’s color scheme, tailored to fit the first customer the plane will be delivered to.

The METI Journal asked Aerospace and Defense Industry Division Director Hiroyuki Hatada of the Ministry of Economy, Trade and Industry about the prospects of Japan’s aircraft industry.

Question: You observed MRJ at the Farnborough International Airshow. Could you tell us your overall impressions?

Hatada: It is generally seen that MRJ has difficulty on the development front, but actually it has advanced by a large degree and quality aircraft are about to be produced.

It was very meaningful in that such an aircraft was showcased in a demonstration flight in front of guests and spectators. I’m sure that people understood that it was a quieter aircraft. I also had the impression that it wasn’t as loud and it flew more smoothly compared to other planes. I’m convinced that MRJ entered a new phase.

Question: You talked with foreign government officials and corporate executives there, but how did you feel about their assessment of Japanese companies?

Hatada: When we talk with those from Western airframe and engine makers, they often say something along the lines of, “We would like to increase business opportunities with Japan,” and “We want to meet new Japanese firms.” METI has been asked to give some help, which indicates their high expectations of Japanese manufacturing. They are also interested in selling aircraft in Asia, and at the same time, building them in cooperation with Asian counterparts. I felt another expectation placed on Japan as a gateway to Asia.

Question: METI has supported the Japanese aviation industry and its companies, including MRJ. How will the ministry respond to the surrounding situation in light of the inspection and talks this time?

Hatada: Japan has technical strength and there are many firms that seek to enter into the aviation market. In 2017, The Nationwide Network of Aircraft Manufacturing Clusters (NAMAC) was established, with its secretariat based in The Society of Japanese Aerospace Companies.

Connecting with overseas companies through this organization would make it possible to meet expectations from Western countries and the will from Japanese firms to make inroads. I feel that we can draw a scenario that would produce a win-win relationship for both sides and enable the Japanese aviation industry to grow further.

Question: How is NAMAC’s activity going?

Hatada: Its portal site was created in February, which enabled people to understand what kind of member organizations are there and their locations, as well as their capabilities. Additionally, it organized matching events between its member organizations and foreign companies in Malaysia in February and Tokyo in June.

Despite the widespread notion that Japanese mid-ranking companies (300 to 1,000 employees), as well as small- and medium-sized enterprises feature high technical strengths, people didn’t know what kind of companies are actually in Japan. One of the advantages of utilizing NAMAC is to create a chance to meet several companies at one time.

There are many requests for matching opportunities from overseas to NAMAC and its activity is highly appreciated.