The OSG Group is working towards the development of a more sustainable society by maintaining and developing healthy relationships with all stakeholders, including shareholders, customers, business partners, employees, and local communities. As members of society, we will strive to exist in harmony with society through social contribution activities and the promotion of mutual understanding with stakeholders.
Initiatives for Employing People with Disabilities
OSG Active, a special subsidiary of parent company OSG, promotes employment of persons with disabilities and engages in activities which contribute to our local community. OSG Active holds lectures mostly in eastern Mikawa for companies, support organizations, as well as special needs school students and their parents. We conduct factory tours and are active in creating opportunities for companies and support organizations to discuss challenges they face as well as observe OSG Active employees on the job at OSG's factories. Recently, we have been receiving more requests for lectures and factory tours from regions outside our local area. Moreover, as the only company participating in the Toyokawa and Shinshiro City-sponsored Liaison Council Supporting Employment of Persons with Disabilities, we have conveyed our approach and ideas from a corporate perspective regarding employment of persons with disabilities, which has contributed to increasing the overall employment rate of persons with disabilities in Toyokawa and Shinshiro City. The statutory employment quota was raised from the current 2.5% to 2.7% in July 2026. OSG and the OSG Group will not only to achieve and maintain the statutory employment quota, which is one of our responsibilities to society but also continue to actively contribute to our community and society.
Percentage of employees with disabilities
VOICE
We took the opportunity to interview the Shinshiro Factory's Hideaki Suzuki, who works with Ryota Takemoto, an employee of OSG Active (a special OSG subsidiary).
Ever since he toured the facility, Ryota Takemoto has been enamored with the Shinshiro Factory cafeteria and reportedly looks forward to eating there every day.
Please tell us about the work that you are in charge of currently.
Every day, I am responsible for reviewing production orders, determining delivery priorities, shipping out materials before they become products, and receiving finished products from other plants.
How do you feel about the workplace environment and how comfortable it is?
OSG has a comfortable work environment and the company is supportive. Whenever there is an issue, I feel no aversion to speaking up. Also, the shuttle service operated by OSG Active is very helpful. Previously, I commuted on the train, but now, the shuttle lets me use my time more productively and has given me more free time.
Ryota Takemoto OSG Active Co., Ltd.
How is Mr. Takemoto at work?
He is extremely diligent toward his work and is a great example to others. He is thorough when it comes to communicating and is very fastidious about his job. On top of that, he is amazing at concentrating on repetitive tasks, so he rarely, if ever, makes mistakes. Mr. Takemoto is indispensable to this factory.
What do you pay attention to in order to ensure that the workplace is a comfortable environment for Mr. Takemoto?
The most important things are very thorough safety management and communication. To prevent Mr. Takemoto from taking on too much work or responsibility beyond what is necessary, we check in and communicate daily to make sure nothing is unusual or troubling. As a workplace, we are always doing what is necessary to manage safety and improve the work environment, but we are also careful not to overly restrict certain things. We would like to develop an environment in which Mr. Takemoto can maximize his abilities and grow.
Hideaki Suzuki Manager Production Management Division, Shinshiro Factory
Promoting Active Participation by Women
OSG has strived to maintain a pleasant work environment based on the proposition of promoting "diversity and inclusion," enabling our diverse human resources to capitalize on their individual personalities and character as well as demonstrate their abilities to the fullest regardless of nationality, gender, ethnicity, sex, disability, or other traits. This approach also recognizes that women's empowerment in the workplace is an important issue. Our aim is to provide the means for each and every woman to demonstrate her abilities to the utmost in her career by continuing to work passionately and assuredly.
Percentage of female managers
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2028, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and Act on Advancement of Measures to Support Raising Next-Generation Children.
＜Goal＞
Increase the ratio of women among assistant managers or higher positions to 7% by FY2026
＜Initiatives＞
Arrange seminars that promote women's careers Regularly hold seminars that provide the skills and knowledge for female employees to enhance their careers
Spread the word about our Comeback Entry Program Actively spread the word to inform employees about OSG's Comeback Entry Program established to create an environment that makes it easier for employees who have left the company for childrearing or caregiving to return
VOICE
In this interview, we spoke with Ms. Masuhara, who leads her team as a manager, in a Q&A format about her career to date, her approach to work, and what she values in continuing her career.
Reiko Masuhara Manager Global Sales Group, Global Sales Department
Could you please tell us about your current duties and role?
I serve as a Manager in the Global Sales Group, Global Sales Department.
I oversee two teams: the Sales Support Team, which handles coordination with overseas subsidiaries--such as consolidating orders placed from overseas to Japan and managing delivery schedules--and the Trade Strategy Team, which is responsible for trade operations including tariff management and trade compliance and security export control.
In the Sales Support Team, we support our overseas subsidiaries so that they can focus on expanding external sales activities. In the Trade Strategy Team, we leverage our expertise in trade operations to build systems that contribute to the company's profitability.
What motivated you to join OSG, and how has your career progressed since then?
One of the key reasons I decided to join OSG was its warm and supportive corporate culture, despite being a global company.
After joining the company, I was assigned to the Global Sales Department (formerly the International Department), where I worked in a role supporting overseas subsidiaries for 16 years.
After that, I was appointed as an Assistant Manager in the Catalog Media Production Team of the Marketing Section, Global Marketing Department.
Five years later, I transferred to the Sales Support Team in the Sales Group of the Global Sales Department as an Assistant Manager, and after another six years, I assumed my current position.
What led you to take on a managerial role, and did your mindset change when you decided to take on the challenge?
At first, I felt uncertain and could only think of reasons to decline the opportunity.
However, I gradually came to realize that this was not a chance given to everyone, and I began to feel that--even if only in a small way--I might be able to contribute by drawing on my past experience.
Another major reason I decided to take on a managerial role was my desire to set a precedent for junior colleagues of the same gender.
What moments make you feel a sense of fulfillment and growth in your role as a manager?
I feel a strong sense of fulfillment when I take a step back to look at the team as a whole, consider how we can improve our workflows and ways of working, and see those efforts lead to positive results.
In doing so, it is also important to have a broader perspective, such as collaborating with other departments. Being able to think from this wider viewpoint makes me realize how my approach has changed compared to before I became a manager.
What do you value most in team management, and are there any approaches or ideas you have developed?
Each team member has different personal circumstances, abilities, and levels of motivation toward their work.
With that in mind, I try to be mindful of what I can adapt to each individual and where I need to maintain consistency, drawing a clear line for myself.
I also make an effort to stay attentive to how people are doing. If someone seems a bit different than usual, I may ask their direct supervisor to follow up or take the opportunity to have a casual conversation with them myself, so that open communication can be maintained.
Have you faced any challenges or barriers as a female manager? How have you overcome them?
As this is an industry where the majority are men, there were times when I felt challenged by being treated differently.
In addition, this is not necessarily because I am a woman, but the fact that I have not had direct experience in sales or manufacturing roles can sometimes feel like a barrier even now.
However, no matter the situation, I try to focus on what I can do at the moment.
Is there anything you keep in mind when balancing work and personal life?
I try to relieve work-related stress at home and personal stress at work. Since getting married, I have always felt that achieving this balance would be ideal.
It is impossible to eliminate stress completely, and I believe that having no stress also means having no opportunities for growth. That is why I think it is important to learn how to manage stress in a healthy way.
Are there any aspects of OSG's systems or workplace environment that you feel have made it easier to work?
Between the births of my first and second children, the childcare leave period was extended to allow up to two years off. This made it much easier for me to coordinate my child's enrollment in daycare with my return to work.
Childcare cannot be managed alone. While support from family members was, of course, very important, changes like this made me feel that the company genuinely supports employees in raising children.
Since then, the introduction of a flexible working hours system and the expansion of eligibility for medical leave have made the workplace even more accommodating and supportive.
What are your expectations for the promotion of women's empowerment at OSG going forward?
I believe that having a similar gender balance in managerial positions as in the overall workforce would be a sign of true balance. I also hope to see the gender gap in average salaries eliminated.
While I feel that the time when women left their jobs due to marriage or childbirth has largely come to an end, I would like to see an environment where women can make the most of their longer careers and continue to advance professionally.
Is there anything you would like to share with younger employees and women who are about to build their careers?
At OSG, there are various systems and support in place, such as correspondence courses for self-development, childcare leave, and nursing care leave, to meet the needs of employees at different stages of life.
As I mentioned earlier, one of the reasons I chose to join OSG was its warm corporate culture, which I feel reflects the company's understanding and support for its employees. Taking on challenges and even failing is truly welcomed here.
I hope you will make full use of these systems and pursue what you want to do with confidence, without hesitation, and continue to take on new challenges.
What values or beliefs do you consider important in your work?
It may not be anything particularly profound, but since my student days, my personal motto has been, "If I'm going to do something, I want to enjoy it."
I also value approaching every task and every encounter with sincerity.
While I cannot say I fully live up to these ideals all the time, they serve as guiding principles that help me stay disciplined, especially since I tend to want to avoid difficult situations or take shortcuts.
Promoting the success of diverse human resources
Building a Human Resource Foundation that Leverages Diversity for Competitive Strength
At OSG, we are continuously working to recruit and promote diverse human resources as a foundation supporting our global business expansion. We believe that creating an environment where people with different nationalities, cultures, and values respect one another and can fully demonstrate their abilities is essential for sustainable organizational growth.
We have been actively recruiting human resources across borders, including individuals from China, Taiwan, South Korea, and Indonesia. In April 2026, we also welcomed two new graduates from Myanmar and India as manufacturing engineers, and they participated in group training together with new employees from Japan.
An environment where people can learn from one another beyond differences in nationality and cultural background fosters new perspectives and ideas, leading to enhanced organizational capabilities and a stronger capacity for transformation. Through utilizing diverse human resources, we aim to strengthen our responsiveness to a changing business environment and create sustainable value.
Looking ahead, as a global manufacturer, we will continue to expand opportunities for human resources across borders while fulfilling our responsibilities, and seek to leverage diversity to enhance corporate value.
Human Resource Development
Human Resource Development Philosophy
In 2013, we introduced a new personnel system with the aim of enabling our employees to develop in a way that maximizes our value as a company while creating a corporate culture that emphasizes personal development and embracing challenges. We believe that our employees have unlimited potential and are an indispensable part of the company. Building on our philosophy with regards to human resource development, we strive to expand and improve our employees' capabilities and help them to develop based on the seven qualities required for advanced manufacturing.
＜Seven Qualities Required for OSG Employees＞
Globality：
As the world's leading manufacturer of cutting tools, we must be constantly aware of our position as a member of a global society and demonstrate the sensitivity to respond to cultures, languages, and customs around the world.
Spirit of challenge：
We must understand dreams and aspirations, never fearing failure as we continue to set and try to achieve ambitious targets. As we move forward, we have to think on our feet to adapt to changes while generating profit.
Conceptualization：
In order to contribute to manufacturing industries around the world as a cutting tool manufacturer, we must be able to see the essence of objects, formulating advanced concepts and plans that also align with company policies and management goals.
Communication：
In order to actualize the idea of "tools and communication", we must foster strong relationships based on trust, communicate intentions and information with speed and accuracy, and collaborate with team members both within and outside of the company.
Leadership：
Leadership allows us to guide the members of our team in the right direction and demonstrate the boundless potential of collective effort. A leader can gain the complete trust of their team and shows humanity, sincerity and a sense of responsibility as the situation demands.
Followership：
Followership means providing active support for leadership in order to demonstrate the boundless potential of collective effort while having the awareness and capacity to collaborate with leaders and organizations to achieve the objectives of the workplace.
Innovation：
Innovation allows us to create new value by pursuing the development of cutting tools to provide products and services that meet the real needs of our customers.
Building a Learning Foundation and Developing Human Resources for the Future
To develop leaders capable of adapting during a time when working styles and ways of thinking are increasingly diversified, OSG provides e-learning courses on communication, management, harassment, attentive listening, and other subjects. This is training that our personnel are able to put to use to better perform their jobs. In addition, we also have more than 150 self-development distance learning courses. Group training is also offered to help employees understand what kind of personnel OSG views as ideal as well as the requirements for promotion. These are part of our initiatives for developing the next generation of leaders. All our training aligns in the same trajectory as set out in our Medium-Term Management Plan and Human Resources Development Policy. It is our aim to establish a program that enables our human resources to continue to develop.
Practical Training for New Employees: The Tool Olympics
The Tool Olympics is an event providing new engineering employees with an opportunity for practical training. Participants are divided into teams each using a different tool: taps, drills, end mills, and indexable tools. Working together, the teams perform cutting tests, measure tools and workpieces, and analyze OSG and other companies' work. At the end of the training, the teams present their results. The aim of the Tool Olympics is for participants to acquire three skills: personal skills, business skills, and technical knowledge, during the approximately one-month program. Although it is not possible in such a short period of time to fully acquire the personal skills necessary for teamwork and communication or the business skills one uses as a working member of society, the Tool Olympics supports new employees' growth as they engage with senior colleagues and cooperate with peers as they engage in the practical exercises. The training also allows participants to acquire engineering knowledge while operating machining and measuring tools. They are able to get a feel for the actual sound and vibration emitted during cutting, compare the chips generated, and analyze tools close-up. The Tool Olympics is a unique learning experience where new employees are able to polish the skills they need to perform as OSG employees while gaining experience completing tasks by a deadline in cooperation with their teammates and acquiring precious experience that only hands-on training provides.
Initiatives to Strengthen Literacy in AI as We Head Toward Its Company-wide Use
Scene from a training session for all employees
At OSG, we are promoting measures to strengthen literacy in AI in anticipation of using it to improve operational efficiency and enhance our ability to create value. As part of this, we held a lecture within a seminar for managers and startup training sessions targeting all employees. In the lecture for managers, we broadly covered the basic framework of generative AI, trends in how it is used in companies, and its expected future role in the manufacturing industry, aiming to form a strategic perspective. In the training for all employees, in addition to learning appropriate ways of using AI based on an understanding of its characteristics, we gave basic explanations regarding copyright, portrait rights, and security. Furthermore, the session was designed to help participants feel more familiar with its practical application by giving them practical exercises in creating prompts. We are strengthening the human resource foundation that supports the utilization of AI with these educational initiatives.
Strengthening the Human Resource Foundation Supporting Global Co-creation｜Achievements and Evolution of Training for Overseas Group Companies
Operating in-house manufactured measuring equipment during training
OSG accepts a diverse range of trainees throughout the year. In FY2025, we accepted a total of 18 groups (a total of 28 trainees) from Japan and overseas Group companies, as well as student interns. In particular, training from OSG Group companies covers a wide range of areas, from pre-installation support for in-house manufactured production equipment, to acquiring processing technology and sales know-how.
In particular, we have been continually accepting long-term trainees from Taiwan, who stay for approximately two years, working on sharing technical and operational information, human resource development, strengthening mutual support systems, and improving equipment maintenance capabilities and skill transfer systems. Upon their return, trainees are able to respond quickly by leveraging the Japanese language skills, technical expertise, and professional networks they acquired in Japan, and they also contribute to stable quality through the preparation of standard operating procedures (SOPs) in Chinese and English. The effects of on-site training, which cannot be obtained remotely, are significant, and we will continue this initiative going forward.
VOICE
Voices of an Overseas Group Company Trainee and an Executive from that Overseas Subsidiary
During training in Japan, I gained experience in a variety of practical tasks, such as investigating the bottom edge grinding capability of long drills, testing the introduction of new machines, and adjusting grinding wheels, which significantly improved my ability to optimize processing conditions and analyze the causes of defects. I also learned methods of thinking to extract issues from complex data and derive improvement measures, and I feel I have grown as an engineer. After returning to Taiwan, I would like to contribute to strengthening the education system and improving machining processes by utilizing the knowledge I have gained.
Wen Jui-hung Taiho Tool Mfg. Co., Ltd.
Taiho Tool Mfg. Co., Ltd. is a Group company with manufacturing and sales bases in China and Taiwan. In the Greater China region, where demand related to EVs and AI is high and competition in development is fierce, we are advancing market development with the local sales, engineering, and manufacturing working as one. Developing local staff is indispensable, and we will continue to provide technical and language training at headquarters while promoting initiatives to deepen understanding of our corporate culture, remaining committed to human resource development going forward under the motto of "No growth without developing local staff!!"
Naohiko Matsuo General Manager Taiho Tool Mfg. Co., Ltd.
Strengthening Human Capital in the Era of a Shrinking Workforce --Enhancing On-Site Capabilities Through the Transfer of Skills and DX
Building a Foundation to Continually Enhance the Value of People
In Japan, the working-age population is rapidly declining due to the falling birthrate and aging population, and in the manufacturing industry, too, the aging and retirement of skilled workers are progressing, while the hiring environment is becoming increasingly difficult. To continue creating value with limited human capital, OSG is addressing the challenge from the perspective of human capital, focusing not on the decline in workforce numbers but on enhancing the value of its people. At the core of this approach are the strengthening of transfer of skills and the utilization of DX. Moreover, we have continued initiatives to reduce our workforce and automate, and have built a foundation for improving efficiency. On top of that, we are promoting the visualization of skills.
Recognizing Issues Surrounding the Transfer of Skills
The conventional method of transferring skills is centered on OJT. This has issues in that know-how is difficult to verbalize and tends to become dependent on individuals. The retirement of skilled workers leads to the risk of the loss of skills. In addition, it is necessary to establish an educational environment where diverse human resources can learn at the same pace, and the conventional approach to education of learning by watching and acquiring through experience alone is not sufficient. At OSG, in parallel with reducing waste through workforce reduction and automation, we emphasize the transfer of skills in areas of adding value that are handled by people.
Visualizing Skills by Utilizing DX｜ Using Video Manuals
Guidance on setup of a compound machine using a video manual
At OSG, we are promoting visualization of skills through video manuals to accumulate skills as organizational knowledge. While using OSG Engineering Standards as the foundation, we position video manuals as a tool to support education and understanding, thereby reducing variation in training by demonstrating operational movements and key points that cannot be fully conveyed through text or photographs alone. This standardizes various operations to bring about stable quality. Currently, we have accumulated thousands of videos from manufacturing work sites, and testing and development divisions, and we envision their use in various situations such as preliminary learning, pre-operation confirmation, and review.
Enhancing Human Resource Development by Transferring Skills and Using Digital Technologies
At OSG, we think that in addition to the foundation of efficiency gained by reducing our workforce and automating, the creation of an environment where employees can grow safely and reliably is what truly enhances the value of human capital. Video manuals connect the knowledge of skilled workers to the next generation and also contribute to quickly making personnel with no prior work experience usable assets. Accumulating skills digitally also leads to the advancement of education and the instilling of improvements.
Future Outlook
Currently, we are in the progress of getting a grasp on how the video manuals are used and their effect on education. Going forward, we will proceed with incorporating them into the education process, establishing operational rules, and organizing their relationship with OSG Engineering Standards, based on feedback from the field. In response to the issue of a declining labor force, we aim to create sustainable on-site capabilities and corporate value by investing in human capital and the utilization of DX.
Careers and Reskilling
The OSG Group promotes reskilling so that our employees learn the knowledge and skills necessary for operations, which allows for the appropriate personnel to be assigned to the appropriate position. Our aim is to establish a system that better links employees' careers and business operations in order to improve the productivity of each and every individual. OSG Group administers a career challenge statement system so that our employees themselves think about their own careers and periodically submit their aspirations detailing where they want to be in three, five, and ten years. Along with a certification incentive program through which we support our employees in improving the skills that will help them prepare to boost their own careers, we are seeking to create a distance learning program that functions interactively and allows employees to choose what they want to learn to improve themselves from more than 150 courses, as well as to create a system helping employees to find fulfillment and motivation in their work.
Building a Better Working Environment
Promotion of work-life balance
Flextime System
We have introduced a flextime system for positions in divisions such as technology, development and the back office, where improved efficiency and productivity can be achieved by providing employees with discretion over their working hours. This has been a popular addition to our existing systems of reduced working hours for employees with childcare and nursing responsibilities because it facilitates our employees' work and enables them to work in a way that fits their individual lifestyles. Our flextime system operates between 6:00 am to 10:00 pm. The core hours depend on the time of year and are either 10:00 am to 2:50 pm or 10:30 am to 3:20 pm.
Childcare leave System
Due to the revision of the Childcare Leave Law, we are conducting educational activities and training for employees. We support the promotion of childcare leave for men as well as women, and have a system in place to provide individual explanations of the childcare leave system. We strive to create an environment that allows employees to balance work and family life. Since the introduction of the system, we have been enhancing the content of the system beyond the legally stipulated standards, and we have continued to improve and expand the system.
＜Childcare Leave System Expansion＞
1. System of reduced working hours to allow for fertility treatment (paid leave)
Employees can receive special paid leave and reduce their working hours by up to two hours per day in order to receive fertility treatment.
2. Early Start Work System
Employees raising children up to the age of elementary school enrollment (extended), including those in single-parent households or dual-income nuclear families, may apply to shift their working hours forward by up to two hours per day, in 10-minute increments.
3. Late Start Work System
Employees raising children up to the end of sixth grade (extended) can request to delay their work start time by up to two hours per day, in 10-minute increments.
4. Extended eligibility period for childcare leave
The eligibility period for childcare leave has been extended until children reach two years of age.
5. Expanded system of reduced working hours for employees with childcare needs
The eligibility period for the system of reduced working hours for employees with childcare need has been extended until children finish third grade of junior high school.
Data on personnel taking childcare leave
Item
FY2021
FY2022
FY2023
FY2024
FY2025
Childcare leave
Men
No. of eligible employees taking leave［people］
3
19
21
16
21
Percentage of eligible employees taking leave［%］
5
37.3
44.6
36.4
38.2
Avg. number of days taken［days］
60
23
42
43.9
43.3
Percentage of employees returning to work［%］
100
100
100
100
100
Women
No. of eligible employees taking leave［people］
14
11
2
5
3
Percentage of eligible employees taking leave［%］
100
100
100
100
100
Avg. number ofdays taken［days］
426
403
308
230
148
Percentage of employees returning to work［%］
100
100
100
100
100
Promoting Male Employees' Taking Childcare Leave
Percentage of male employees taking childcare leave
Following the revision of Child Care and Family Care Leave Act in 2022, the percentage of male employees taking childcare leave temporarily declined from 44% in FY2023 to 36% in FY2024, but has since rebounded to 38.2% in FY2025.
While internal awareness has increased and the environment is gradually becoming more conducive to utilizing the system, we recognize that important challenges remain, including fostering understanding among supervisors and workplaces for those wishing to take leave, as well as ensuring appropriate distribution of workloads during their absence. In addition, some employees are concerned about a decrease in income and the impact on performance evaluations if they take childcare leave, so we are working to enhance both potential childcare leave participants' and their supervisors' understanding of the program by providing explanations of the performance assessment system as well as salary increase and promotion schedules. We believe these initiatives will help increase the percentage of employees taking childcare leave. We will continue to strive to ascertain the current status and challenges facing those who would like to take childcare leave and bolster our commitment to creating an environment where even more employees who wish to avail themselves of this program are able to gain the understanding of their workplaces without worrying about such hindrances.
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2028, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and The Act on Advancement of Measures to Support Raising Next-Generation Children.
◆Targets for Increasing the Ratio of Male Employees Taking Childcare Leave
＜Target: Ratio of male employees taking childcare leave＞ 2027: 50% 2030: 75%
＜Initiatives＞
Promote awareness about the policy of promoting male employees taking childcare leave Clearly communicate the policy to foster a workplace culture where male employees can easily take childcare leave
Raise awareness about the newly established system and expand the number of employees using it Engage in activities that raise awareness among all employees about the newly-adopted childcare leave system with the aim of expanding use of both this and other programs
Individually approach eligible employees Individually approach employees eligible to take childcare leave and encourage them to do so
Continue to issue notices internally detailing the percentage of those taking childcare leave Periodically issue internal notifications announcing the ratio of employees taking childcare leave and share progress being made in promoting this initiative
VOICE
Comments from a Male Employee Who Took Childcare Leave
Please tell us how you feel after utilizing OSG's childcare leave program, including future hurdles the program should tackle.
Most recently, I utilized approximately two-and-a-half months of childcare leave. Caring for a child is a 24-hour a day activity. Caring for my two children has been particularly hectic every day and it has truly been a handful. Once one child starts to cry, the other child joins in. I even wanted to join in myself at times. This was something my wife and I were able to tackle as a team. Taking part in childcare alongside my wife has, in my opinion, deepened our relationship. Also, I am very grateful to OSG for giving me the opportunity to spend priceless time with my children during moments that only come around once.
Since the work that I engage in requires specialized expertise, it takes time to train human resources. For this reason, we spend time every day training employees and covering for one another so that we can accomplish the same work tasks. Thanks to this, I have been able to take childcare leave without feeling anxious. At the same time, I think that there are also some work areas with many challenges for childcare leave, due to the category of work or the number of employees. If we are to promote the use of childcare leave in the future, I think it is necessary for supervisors to first learn about and understand childcare leave, or take it themselves, and then pass on information about it to their subordinates. In addition, some employees may have concerns about the impact of childcare leave on their performance evaluations, so I think it would be even easier for them to take childcare leave if information is provided to employees to fully dispel their concerns.
We have continued to improve and expand our nursing care leave system since its introduction. More detailed information is provided below.
＜Nursing Care Leave System Expansion＞
1. 540-days nursing care leave
In consideration of the trend towards longer periods of nursing care, we provide 540 days of nursing care leave rather than the 93 days stipulated by law.
2. New system of moving up the working hours for nursing care
In support of balancing work and nursing care, a system was newly established in April 2025 that allows working hours to be moved up for nursing care.
Expansion of Eligibility for Taking Annual Paid Leave by the Hour
OSG has previously allowed employees who need to care for a child in the third grade or younger, a family member within the second degree who requires nursing care or support, and need to go to the hospital or receive treatment for an injury or illness to take annual paid leave by the hour. From April 2022, with the aim of improving work-life balance, the scope of coverage has been expanded to all employees to take annual paid leave by the hour.
Increased Maximum Reserve for the Expired Paid Leave Reserve System
As part of our existing efforts to reduce lost paid leave, we have operated a reserve system for paid leave, which expires two years after it is received, while also aiming to increase the rate of paid leave taken each year. Reserve paid leave can be taken in order to receive medical treatment in cases of personal injury or illness and to provide nursing care to family members through the medical leave system. Previously, up to 6 days per year could be kept in reserve up to a maximum cumulative total of 40 days, however, these initiatives were further improved and expanded in April 2025.
＜Medical Leave System Expansion＞
Under the previous eligibility conditions, employees had to be unable to work for at least one full day due to non-work-related illness or injury. We have expanded the eligibility conditions so that the medical leave can be taken on an hourly basis for outpatient treatment, enabling employees to better manage both work and medical care.
Percentage of annual paid leave taken (%)
Safety and Health Management
OSG declared itself a "Global Company," "Healthy Company," and "Environmentally Friendly Company" in 1996. In 2014, we adopted the tagline "Shaping your dreams" as our brand identity. We believe that creating an environment where each and every employee is cheerful, happy, and energetic in their daily work and contributing to the sustainable development of the community, society, and the Earth based on our philosophy of "being a public entity of society" will create a prosperous future. As we approach our 100th anniversary, we will continue to pursue wellbeing and give shape to our dreams through human resource development and manufacturing as a global company that shines even brighter.
At OSG, we have established a company policy regarding support for balancing medical treatment with work.
The feelings of the person concerned are given priority.
Employees are not required to disclose the name of their condition.
A flexible approach is taken without excessive adherence to rules. (Burden should not be placed on the person concerned.)
In order to implement this company policy, a number of employees have been involved in the creation of various systems to support employees who are receiving medical treatment.
Support system including industrial physicians, in-house public health nurses and companies A system to facilitate contact with occupational health professionals has been implemented at each of our locations.
Review of internal notification procedures (reducing the burden on the person receiving treatment)
Occupational health professionals handle a range of internal notification procedures in order to reduce the burden placed on the person receiving treatment.
Creation of tailored plans for returning to work by occupational health professionals and human resources personnel
Careful consideration is given to the condition of the person receiving treatment, and every effort is made to support them as much as possible.
We constantly strive to put our employees first and enable them to balance medical treatment with work.
Health Initiative: "Sukoyaka Nine" Program
In December 2025, OSG launched a health initiative called the "Sukoyaka Nine" Program, aimed at promoting the overall well-being of each employee.
This initiative focuses on nine lifestyle factors: weight, smoking, alcohol consumption, breakfast, diet, exercise, sleep, stress, and personal goals. By using these as a framework, employees are encouraged to reflect on their own health condition and take actions toward improvement.
In addition to company-wide efforts, each site also develops and implements its own health programs, working together across the organization to create a workplace where employees can stay healthy and work with vitality.
Four consecutive years of recognition as an Outstanding Organization of KENKO Investment for Health Program
In the "Certified Health & Productivity Management Outstanding Organizations Recognition Program," jointly administered by the Ministry of Economy, Trade and Industry (METI) and the Nippon Kenko Kaigi, OSG was certified as a 2026 Outstanding Organization of KENKO Investment for Health Program (Large Enterprise Category).This marks the fourth consecutive year of certification.
As part of its commitment to occupational safety and health management, OSG conducts annual health checkups and provides health guidance tailored to individual conditions through industrial physicians and public health nurses, thereby strengthening support for employee health management.
Going forward, OSG will continue to foster a workplace environment where each employee can maintain both physical and mental well-being and fully demonstrate their capabilities.
Safety Management
Safety and Health Committee
Under the leadership of the Headquarters Safety and Health Committee, in which all executives participate, each committee continues to work together with all employees to promote safety and health. In the event of an accident, the Safety Management Committee takes the lead in pursuing the causes and countermeasures at the site where the accident occurred, and shares the information with the company to prevent the same accident from happening again. The Health Management Committee supports the health status of each employee and promotes health activities with the aim of creating a workplace environment where employees can feel healthy and secure.
Company-wide Safety and Health Committee Structure
Safety Education
OSG conducts risk assessments, offers safety and health education, and holds zero accident meetings to raise employees' awareness of safety.
In our safety and health education program, we conduct training for managers and supervisors, special in-house education, and traffic safety education. Since 2016, we have also introduced hands-on safety training in collaboration with outside organizations, allowing participants to engage in simulated hazardous tasks to help compensate for diminished hazard awareness.
Number of Occupational Accidents
Respect for Human Rights
The OSG Group and all employees shall respect human rights both in Japan and abroad and be committed to following the letter as well as the spirit of all relevant laws, regulations, and international rules, while taking an independent approach to the creation of a sustainable society with sound values. We ensure a healthy work environment that will neither offend nor discriminate by race, belief, skin color, sex, religion, nationality, language, physical appearance, wealth, or birthplace.
Human Rights Policy
OSG Corporation and all the group companies (hereinafter referred to collectively as "OSGs") respect the "International Bill of Human Rights" (Universal Declaration of Human Rights and International Covenant on Human Rights), the International Labour Organization (ILO)'s "Declaration on Fundamental Principles and Rights at Work" and the United Nation's "Guiding Principles on Business and Human Rights," which define the fundamental human rights that everyone in the world should have, and establish "OSG Group Human Rights Policy" (hereinafter referred to as "Policy"). Each one of the members of OSGs shall promote activities related to human rights based on this Policy.
Some of the main activities undertaken at our company in order to promote respect for human rights are outlined below.
1. Awareness activities
Training for new employees includes a session on the topic of "Noticing Prejudice" in order to provide an opportunity to engage with awareness of human rights. We also aim to raise awareness of issues relating to human rights among mid-level employees, particularly those in management positions, by providing opportunities to attend external seminars.
2. Initiatives to ensure fair selection during recruitment
Fairness in the recruitment process is a key measure of a businesses' respect for human rights, and OSG employees are provided with comprehensive awareness training before working in positions relating to recruitment or conducting interviews.
3. Initiatives to improve the working environment
Human rights issues are addressed in our in-house newsletter, and every effort is made to prevent the occurrence of issues in the working environment.
4. Initiatives to prevent harassment
OSG has set out harassment prevention rules with the goal of preventing various forms of harassment. We have communicated to employees the company's role, management's responsibility, the availability of consultation systems, and other aspects that help prevent harassment. We are striving to maintain an environment that is pleasant and comfortable to work in. Along with raising awareness about harassment prevention, we will further expand our consultation system, increasing the number of counselors along with other enhancements, so that the company is able to respond quickly to any potential cases.
We are making active efforts to promote human rights awareness among all of our employees and will continue to carry out this important work. OSG is also a member of the Industrial Federation for Human Rights in Aichi and engages in activities to promote and improve human rights awareness.
The Sustainable Development of the OSG Brand
Pursuit of Customer Satisfaction
Technical Seminars
Even as the OSG Group actively strives to achieve digitalization, we place a high value on the connections we have formed with customers. We not only regularly hold in-person seminars but also online seminars so that participants can attend no matter where they are. These online seminars take advantage of the benefits such a platform offers, such as providing archives of the seminars and preparing multiple timeslots so that as many of our customers as possible may attend. In addition, online events and services have spread rapidly since the pandemic, which seems to have diversified points of contact that we have with customers. We are now able to quickly gather feedback from customers voiced across various platforms and make use of this precious feedback to improve our services and quality as well as develop new and better products. We will continue to make use of the advantages that both face-to-face and online platforms offer, and provide our customers with useful information tailored to their needs.
Communication Dial
Inquiries that we receive through our Communication Dial service range from basic questions to quite difficult ones relating to actual machining processes. Depending on the nature of the inquiry, it may be necessary to check with our design and development divisions or contact the sales team to arrange a visit to the customer. We are committed to providing the best service to each and every customer. We also have an FAQ webpage, which we create and update based on analyses of the more than 100 inquiries and feedback received daily from customers. We are striving to create an environment that will enable us to respond to our customers' diverse needs by promoting digitalization in addition to the existing Communication Dial services. With the pace of change accelerating, we will continue to maintain our customer-first approach. We want our clientele to always regard OSG as a company they can consult and rely on to solve any issues they face, no matter what problems arise.
Quality Management System
Quality Policy
1. Offering the best quality which satisfies our customers and society
2. Promoting the standardization of operations
3. Preventing the occurrence and progression of faulty products
4. Shipping products on schedule
5. Enhancing the effectiveness of small group activities and 5S practices
OSG Quality Certification System
OSG has a proprietary quality assurance system certification program in place to ensure consistent quality worldwide, and we have strived to maintain and improve the level of quality at our group companies both in Japan and abroad. The quality certification system certifies that quality management from the arrival of raw materials (or materials for which regrinding has been requested) to product shipment and after-sales service is equivalent to that of the mother factory operated by OSG Japan. Evaluation is performed by certified quality auditors from OSG Japan in accordance with the Three Reality Principle ("going to the actual site", "seeing the actual goods", and "seeing the actual situation"). The systems in place to ensure that the quality required by customers is provided on a consistent basis and the capability of employees to correctly evaluate products are evaluated. This is done through quality audits based on evidence submitted through communication with those in charge and those carrying out the work. Our audits use a five-tier evaluation system to check and determine whether the quality assurance system passes categories defining product quality, quality inspection skills, and quality improvement capabilities. For example, product quality is evaluated by randomly sampling mass-produced products and measuring them to determine whether they are produced according to the dimensions specified in drawings as well as ascertaining base materials and grinding quality. We will continue to further expand these activities in order to ensure that OSG's standards of manufacturing are maintained at our group companies around the world.
VOICE
My main job is to audit the quality systems of our domestic and overseas group companies. With production sites around the world, it is important to maintain stable quality regardless of whether the site is located in Japan or abroad, and to ensure consistent quality no matter who produces the item or where it is produced. However, this is by no means an easy task. Behind the stable quality lies the diligent accumulation of each and every task. I am always thinking about how we can maintain reproducibility in this process and providing assistance in constructing quality assurance mechanisms through these audits of quality systems.
Naoya Fujishiro Quality Assurance Group Quality Assurance Department
Automation of Inspection & Packaging to Eliminate Human Error
Many mistakes and defects in the final inspection and packaging process are often due to human error. Therefore, we are striving to enhance the efficiency of these processes and utilize equipment with the goal of eliminating misjudgments and defects. Streamlining packaging materials simplifies the work and enhances its efficiency as well as reduces plastic waste and costs associated with such materials. In the past, we used to visually check the shipping label affixed to a package and the enclosed delivery statement. Now, thanks to adoption of a character collating system, we have been able to reduce erroneous packaging and shipping. In addition to promoting automation of visual product inspections, we have implemented initiatives to eliminate irregularities in manual inspection accuracy and reduce the risk of blade chipping or other accidents occurring during manual work. Replacement of the previous visual inspections, which were conducted using a microscope, with image inspections has made it possible to inspect tools in more detail. As these images may be stored, this database also offers the benefit of bolsters traceability.
The Path to Manufacturing Innovation: Toward Non-Stop Manufacturing Centered on Quality
Efficiency, Workforce Reduction, and Stable Quality Through the Five "Zero Principles"
OSG sees quality as reliability that keeps customers' production going. We promote the Manufacturing Division's policy of innovative manufacturing throughout the Company. Amid global changes in the composition of human resources, growing sophistication of demand, and increasing uncertainty in supply chains, the stability and improvement of quality lie at the core of sustainable value creation. Based on our five "zero principles"--zero touch, zero return, zero hand, zero judge, and zero stop--we are making stepwise advances in efficiency, reducing our workforce, and strengthening traceability through the combination of in-process quality assurance, preventive maintenance, and digital recording.
Aiming for Stability in Quality Through End-to-End Information Linkage
We are linking our sales, design, production management, manufacturing, and inspection work systems as we transition to a system by which information is only added in accordance with the progress of processes. By aggregating input terminals, with the Shinshiro Factory as the starting point, we achieve real-time recording, the standardization of judgments, and more prompt corrective action. By deploying this throughout the Company, we are simultaneously achieving stability of quality and operational efficiency, which leads to a reduction in supply risks.
Non-stop Quality with Preventive and Predictive Maintenance
We regularly monitor equipment status data (backlash, etc.) and conduct planned maintenance based on threshold management. By detecting signs of abnormality early and minimizing recovery time, we maintain stable operation of equipment.
Using Automated Decisions and Automated Measurements to Make Consistent Judgements
In our in-process inspections, we are introducing image processing and digital measuring instruments to automate decisions on visual appearance and physical dimensions. By excluding the unevenness inherent in human-based judgments, we are strengthening consistency in our in-process quality assurance and record-keeping.
Creating Value with Improvements Rooted in the Manufacturing Site
At each of our factories, we increase the efficiency of work and stabilize quality by using automated conveying equipment, automating inspection processes, and consolidating processes by introducing compound processing machinery. These initiatives steadily advance our shift to a production system that is not dependent on people, which leads to reducing burdens at manufacturing sites and making sophisticated use of technical capabilities.
Balancing Quality and Productivity with an Eye on 2030
We have a goal of establishing a highly efficient production system that makes use of existing resources, with 2030 as the target year. By advancing the automation of processes, digitalization of information, and sharing of knowledge without sacrificing quality, we will simultaneously raise both productivity and reliability.
Raising the Level of Fully Local Manufacturing Originating in Improvement of Quality: OSG (Shanghai) Precision Tools
Evolving Precision and Establishing Market Competitiveness by Reforming the Production Environment
OSG (Shanghai) Precision Tools Co., Ltd.
Viewing quality as the foundation for sustainable growth, we make "Continue to stably create good things" a key theme of management. OSG (Shanghai) Precision Tools (hereinafter the "Songjiang Factory") has achieved both precision in products and positive evaluations from the market with an approach that takes not only reinforcement of equipment and increasing personnel but also the production environment itself as a factor of quality.
Restructuring the Quality Foundation by Visualizing Information About the Production Environment and Stabilizing Temperatures
The Songjiang Factory found that the primary factors behind unevenness in precision lay not only in people and the performance of machinery, but also in variations in the environment, such as room temperature, oil temperature, and machine temperature. To achieve production under constant temperatures, we revamped the factory, starting from its layout and infrastructure.
First, we renovated the factory to significantly reduce the range of indoor temperature variation, from ±2.8°C to ±1°C. By doing so, we constructed a stable machining environment that is less susceptible to effects from outdoor temperature and seasonal variation. In addition, we introduced the latest oil temperature control system for the hydraulic oil used in machine tools. This move has reduced oil temperature fluctuations from ±1.4°C to ±1°C. We further installed insulating material on some machinery to reduce fine fluctuations in machine temperature. Through the simultaneous stabilization of these three points (room temperature, oil temperature, and machinery temperature) we created an environmental foundation that supports precision machining.
Composition of Products and Expansion of Sales Driven by Quality Improvement
The percentage of sales of A-Brand products is rising over time, driven by sales of standard and special order products featuring high precision. In the carbide drill field, sales of both standard and special order products from the Songjiang Factory are growing, and products manufactured there have demonstrated a rise in competitiveness relative to products manufactured in Japan.
Underlying the growth is customers' recognition of not only cost competitiveness but also non-price value, such as the stable precision and reproduceable quality made possible by the products. Seeing this market as a growth opportunity, we transferred a portion of the testing and verification functions performed in Japan to the Chinese site. By doing so, we have readied a system that enables the prompt completion of actions there in China, from analysis of causes to drafting of countermeasures, when issues occur. Raising the speed of quality improvement leads to the earning of customers' trust and creates differentiation from competitors in China and local competitors worldwide.
Toward Creating Sustainable Value Centered on Quality
The Songjiang Factory's initiatives are not aimed at improving equipment but at building mechanisms that create quality. This circular model, by which the environment is controlled, precision is managed numerically, and outcomes are connected to market value, is becoming a vital management asset for our company and will be expanded to other sites.
We will continue to advance fully local manufacturing originating in improvement of quality, as we work to strengthen our competitiveness in the Chinese market and sustainably enhance our corporate value.
The design/development, manufacture and servicing (supply of technical data, technical guidance, calibration) of cutting tools, forming tools, measuring tools and non-wire coater bar.
Supply Chain Management
As an essential player contributing to the global manufacturing industry, the OSG Group will continue striving to solve human rights, environmental, and other challenges throughout its supply chain while also fulfilling its social responsibility.
OSG carries out fair and open transactions based on the principle of free competition and in accordance with the values of globality and openness. In order to establish relationships leading to mutual growth, OSG and its suppliers make efforts to deepen mutual understanding and build relationships of mutual trust.
Compliance with Laws, Regulations, and Social Demands
Our procurement activities are carried out in compliance with laws, regulations, and social norms. In accordance with social demands, we also develop our procurement activities with due consideration to the environment, human rights, labor standards, health and safety, and information management.
Consideration for the Environment
In order to protect the environment, we prioritize the purchase of eco-friendly products (green procurement activities) and the use of suppliers who implement environmental conservation measures in their manufacturing processes.
CSR Procurement
Corporate Social Responsibility (CSR) Procurement aims to minimize social and environmental impacts across the supply chain. This includes issues related to human rights, labor standards, corruption, environmental protection, and other important matters affecting our communities. Stronger demands by society are being placed on companies to implement such efforts. The OSG Group CSR Procurement Guidelines outline key actions that both the OSG Group and our suppliers should take to promote sustainable development.
OSG Group CSR Procurement Guidelines
The OSG Group CSR Procurement Guidelines enhance suppliers' understanding of what is expected of them. This enables them to better adhere to these guidelines in their operations. Additionally, it supports the implementation of CSR activities throughout the supply chain.
The OSG Group has asked its suppliers to do CSR self-assessment surveys and respond to conflict mineral surveys based on the OSG Group CSR Procurement Guidelines. The purpose of this has been to ascertain the status of CSR initiatives in the supply chain, ensure there are no transactions that involve conflict minerals, and have suppliers develop a better understanding of the OSG Group's supply chain management efforts and philosophy.
This fiscal year, we conducted on-site surveys of principal suppliers to verify compliance in areas based on our CSR standards, such as governance, human rights, occupational safety and health, the environment, quality, information security, anti-corruption, and community coexistence. Although the survey confirmed that appropriate management systems were generally in place, we identified room for improvement in two areas: strengthening compliance with chemical substance regulations and enhancing conflict mineral surveys (CMRT/EMRT), and requested corrective actions.
We will continue to refine our sustainable procurement activities through ongoing dialogue with suppliers and support for improvement initiatives.
CSR Self-Assessment Survey
We conducted a survey of our Group's principal suppliers in Japan regarding their CSR initiatives.
Time frame: September-October 2025
Suppliers surveyed: Principal suppliers of raw and other materials
KPI
Target
FY2023 results
FY2024 results
FY2025 results
Survey return rate
80% or higher
84%
86%
86%
No. of companies surveyed
-
139
132
140
No. of companies responding
-
117
114
120
Surveys are analyzed and evaluated, and feedback is provided to suppliers.
We will continue to improve the survey, giving consideration to expanding the number of companies surveyed as well as revising survey questions.
FY2025 average score
OSG Policy of Responsible Raw Material Procurement
Concerns have been raised about the mining of tin, tantalum, tungsten, gold, cobalt, mica and other minerals in conflict-affected and high-risk areas. The process of mining such minerals as well as their trade may involve child labor, forced labor, or other human rights violations as well as raise issues relating to labor standards. There is also apprehension that the proceeds from such mining may also serve as a source of funds for armed groups in conflict-affected regions.
OSG Group has made a commitment to engage in responsible mineral procurement. In accordance with OECD Due Diligence Guidance, we have been identifying risks so that we may address such issues.
In addition, as our suppliers appreciate these initiatives, we have also asked them to cooperate with surveys detailing the history on how the minerals have been procured. We request that they source minerals from certified smelters not party to any such issues.
Green Procurement
We aim to provide our customers with environment-conscious products in accordance with our Environmental Policy of making our entire supply chain more environmentally friendly.
We seek the cooperation of our suppliers in the establishment of an environmental guarantee system and the provision of environmental guarantees of procured products in order to allow us to act as a business that provides eco-friendly products through our development, design, production, and distribution processes in all of the regions in which we operate.
Green Procurement Guidelines
Our Green Procurement Guidelines are an important set of policies that consider the full life cycle of commercial products and relate to the management of chemical substances in supply chain products and information provision. In order to prioritize the procurement and purchase of materials and products with a reduced impact on people and the environment when procuring materials required for production, we work together with our business partners in areas such as the management of chemical substances contained in products and self-evaluation of green procurement activities. We are also undertaking initiatives to promote the integration our green procurement activities with those of our suppliers.
Partnership Building Declaration
OSG drafted and announced our Partnership Building Declaration aimed at strengthening partnerships through the promotion of collaboration, coexistence, and co-prosperity with our supply chain partners and entrepreneurs seeking to create value.
Trainees acquiring skills as they operate equipment
OSG India Academy opened in India in 2023 is an educational institute which aims to develop India's human resources in the field of manufacturing. At OSG India Academy, trainees learn Japanese-style manufacturing while they actually operate machinery during the one-year training program which is originally designed. Of the 10 graduates produced to date, seven have joined OSG India, where all of them are playing active roles as key personnel on the production floor and are highly regarded. Among them, two were assigned as staff members at the new Chennai plant, which commenced operations in August 2025, and are taking on important responsibilities in plant operations.
The distance between Pune, where the academy is located, and Chennai is approximately 1,700 km. Although both locations are within India, they differ significantly in terms of geography and culture, and it is not common in India for employees to voluntarily accept such long-distance transfers and take on the challenge of launching a new plant. The autonomy and advanced expertise cultivated through the academy have made it possible for them to take on this challenge.
Going forward, we continually leverage the know-how gained from management of the Academy and strive to discover and develop human resources in India. In Japan's manufacturing sector, particularly in the core field of tool manufacturing, we will be actively engaged in human resource development in areas such as OSG style product inspection and quality, and tool production techniques and contribute to developing India's manufacturing industry and strengthening the economic environment.
OSG supports the Shuzo Challenge, Japan Tennis Association Project for junior men's tennis athletes
OSG supports the Shuzo Challenge, a segment of the Mt. Fuji Project launched by the Japan Tennis Association Project, to improve the skills of junior men's tennis athletes
Shuzo Challenge is a tennis camp run by Shuzo Matsuoka, director of the Japan Tennis Association and deputy general manager of the High Performance/Junior Development Department. At the camp, Shuzo Matsuoka and his staff provide expert coaching in skills and tactics as well as the ways of building physical and mental capacity to achieve the aim of developing men's tennis junior players' skills and competence to play at a world-class level in the future.
Through our promotion of sports, OSG works to create an environment where each and every one of our employees is able to devote themselves to their daily work in a cheerful, enjoyable, and energetic manner. Based on the principle that companies should be institutions for the benefit of society, we are aiming toward a prosperous future and working to make a sustainable contribution to the community, society, and the planet.
President Osawa and Shuzo Matsuoka in the OSG Headquarters lobby
Junior players at the intensive training camp
We support the San-en NeoPhoenix
OSG considers growing together with local communities and contributing to the creation of a sustainable and prosperous future as one of its key priorities. As part of these efforts, we strongly resonate with the management philosophy of the professional basketball club "San-en NeoPhoenix"--"Bringing smiles and energy to the San-en region"--and support the team as an official sponsor.
At OSG-sponsored games, we carry out a variety of initiatives aimed at further promoting community engagement through sports. During the 2025-2026 season, we invited people from facilities supporting persons with disabilities to the venue and created opportunities for them to showcase and sell products and confectionery made with care. These initiatives provide opportunities for interaction and participation, contributing to the realization of a society where no one is left behind.
Such activities not only allow participants from these facilities to experience the joy of engaging with customers and selling their products, but also offer visitors valuable opportunities to connect with the diverse values and people rooted in the local community.
In addition, OSG's popular character "Tap-kun" appears at the venue each year, interacting with children and many members of the local community and helping to create a lively and welcoming atmosphere.
OSG will continue to work together with San-en NeoPhoenix to expand initiatives that enrich the future through community-based activities.
Basic Philosophy
The OSG Group is working towards the development of a more sustainable society by maintaining and developing healthy relationships with all stakeholders, including shareholders, customers, business partners, employees, and local communities. As members of society, we will strive to exist in harmony with society through social contribution activities and the promotion of mutual understanding with stakeholders.
Multi-Stakeholder Policy（260 KB）
Promoting Diversity
Initiatives for Employing People with Disabilities
OSG Active, a special subsidiary of parent company OSG, promotes employment of persons with disabilities and engages in activities which contribute to our local community. OSG Active holds lectures mostly in eastern Mikawa for companies, support organizations, as well as special needs school students and their parents. We conduct factory tours and are active in creating opportunities for companies and support organizations to discuss challenges they face as well as observe OSG Active employees on the job at OSG's factories. Recently, we have been receiving more requests for lectures and factory tours from regions outside our local area. Moreover, as the only company participating in the Toyokawa and Shinshiro City-sponsored Liaison Council Supporting Employment of Persons with Disabilities, we have conveyed our approach and ideas from a corporate perspective regarding employment of persons with disabilities, which has contributed to increasing the overall employment rate of persons with disabilities in Toyokawa and Shinshiro City. The statutory employment quota was raised from the current 2.5% to 2.7% in July 2026. OSG and the OSG Group will not only to achieve and maintain the statutory employment quota, which is one of our responsibilities to society but also continue to actively contribute to our community and society.
OSG Active Co., Ltd.
Manager Production Management Division, Shinshiro Factory
Promoting Active Participation by Women
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2028, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and Act on Advancement of Measures to Support Raising Next-Generation Children.
＜Goal＞
Increase the ratio of women among assistant managers or higher positions to 7% by FY2026
＜Initiatives＞
Regularly hold seminars that provide the skills and knowledge for female employees to enhance their careers
Actively spread the word to inform employees about OSG's Comeback Entry Program established to create an environment that makes it easier for employees who have left the company for childrearing or caregiving to return
Manager
Global Sales Group,
Global Sales Department
I oversee two teams: the Sales Support Team, which handles coordination with overseas subsidiaries--such as consolidating orders placed from overseas to Japan and managing delivery schedules--and the Trade Strategy Team, which is responsible for trade operations including tariff management and trade compliance and security export control.
In the Sales Support Team, we support our overseas subsidiaries so that they can focus on expanding external sales activities. In the Trade Strategy Team, we leverage our expertise in trade operations to build systems that contribute to the company's profitability.
After joining the company, I was assigned to the Global Sales Department (formerly the International Department), where I worked in a role supporting overseas subsidiaries for 16 years. After that, I was appointed as an Assistant Manager in the Catalog Media Production Team of the Marketing Section, Global Marketing Department.
Five years later, I transferred to the Sales Support Team in the Sales Group of the Global Sales Department as an Assistant Manager, and after another six years, I assumed my current position.
However, I gradually came to realize that this was not a chance given to everyone, and I began to feel that--even if only in a small way--I might be able to contribute by drawing on my past experience.
Another major reason I decided to take on a managerial role was my desire to set a precedent for junior colleagues of the same gender.
In doing so, it is also important to have a broader perspective, such as collaborating with other departments. Being able to think from this wider viewpoint makes me realize how my approach has changed compared to before I became a manager.
With that in mind, I try to be mindful of what I can adapt to each individual and where I need to maintain consistency, drawing a clear line for myself.
I also make an effort to stay attentive to how people are doing. If someone seems a bit different than usual, I may ask their direct supervisor to follow up or take the opportunity to have a casual conversation with them myself, so that open communication can be maintained.
In addition, this is not necessarily because I am a woman, but the fact that I have not had direct experience in sales or manufacturing roles can sometimes feel like a barrier even now.
However, no matter the situation, I try to focus on what I can do at the moment.
It is impossible to eliminate stress completely, and I believe that having no stress also means having no opportunities for growth. That is why I think it is important to learn how to manage stress in a healthy way.
Childcare cannot be managed alone. While support from family members was, of course, very important, changes like this made me feel that the company genuinely supports employees in raising children.
Since then, the introduction of a flexible working hours system and the expansion of eligibility for medical leave have made the workplace even more accommodating and supportive.
While I feel that the time when women left their jobs due to marriage or childbirth has largely come to an end, I would like to see an environment where women can make the most of their longer careers and continue to advance professionally.
As I mentioned earlier, one of the reasons I chose to join OSG was its warm corporate culture, which I feel reflects the company's understanding and support for its employees. Taking on challenges and even failing is truly welcomed here.
I hope you will make full use of these systems and pursue what you want to do with confidence, without hesitation, and continue to take on new challenges.
While I cannot say I fully live up to these ideals all the time, they serve as guiding principles that help me stay disciplined, especially since I tend to want to avoid difficult situations or take shortcuts.
Promoting the success of diverse human resources
Building a Human Resource Foundation that Leverages Diversity for Competitive Strength
At OSG, we are continuously working to recruit and promote diverse human resources as a foundation supporting our global business expansion. We believe that creating an environment where people with different nationalities, cultures, and values respect one another and can fully demonstrate their abilities is essential for sustainable organizational growth.
We have been actively recruiting human resources across borders, including individuals from China, Taiwan, South Korea, and Indonesia. In April 2026, we also welcomed two new graduates from Myanmar and India as manufacturing engineers, and they participated in group training together with new employees from Japan.
An environment where people can learn from one another beyond differences in nationality and cultural background fosters new perspectives and ideas, leading to enhanced organizational capabilities and a stronger capacity for transformation. Through utilizing diverse human resources, we aim to strengthen our responsiveness to a changing business environment and create sustainable value.
Looking ahead, as a global manufacturer, we will continue to expand opportunities for human resources across borders while fulfilling our responsibilities, and seek to leverage diversity to enhance corporate value.
Human Resource Development
Human Resource Development Philosophy
In 2013, we introduced a new personnel system with the aim of enabling our employees to develop in a way that maximizes our value as a company while creating a corporate culture that emphasizes personal development and embracing challenges. We believe that our employees have unlimited potential and are an indispensable part of the company. Building on our philosophy with regards to human resource development, we strive to expand and improve our employees' capabilities and help them to develop based on the seven qualities required for advanced manufacturing.
＜Seven Qualities Required for OSG Employees＞
As we move forward, we have to think on our feet to adapt to changes while generating profit.
A leader can gain the complete trust of their team and shows humanity, sincerity and a sense of responsibility as the situation demands.
Building a Learning Foundation and Developing Human Resources for the Future
To develop leaders capable of adapting during a time when working styles and ways of thinking are increasingly diversified, OSG provides e-learning courses on communication, management, harassment, attentive listening, and other subjects. This is training that our personnel are able to put to use to better perform their jobs. In addition, we also have more than 150 self-development distance learning courses. Group training is also offered to help employees understand what kind of personnel OSG views as ideal as well as the requirements for promotion. These are part of our initiatives for developing the next generation of leaders. All our training aligns in the same trajectory as set out in our Medium-Term Management Plan and Human Resources Development Policy. It is our aim to establish a program that enables our human resources to continue to develop.
Practical Training for New Employees: The Tool Olympics
The Tool Olympics is an event providing new engineering employees with an opportunity for practical training. Participants are divided into teams each using a different tool: taps, drills, end mills, and indexable tools. Working together, the teams perform cutting tests, measure tools and workpieces, and analyze OSG and other companies' work. At the end of the training, the teams present their results. The aim of the Tool Olympics is for participants to acquire three skills: personal skills, business skills, and technical knowledge, during the approximately one-month program. Although it is not possible in such a short period of time to fully acquire the personal skills necessary for teamwork and communication or the business skills one uses as a working member of society, the Tool Olympics supports new employees' growth as they engage with senior colleagues and cooperate with peers as they engage in the practical exercises. The training also allows participants to acquire engineering knowledge while operating machining and measuring tools. They are able to get a feel for the actual sound and vibration emitted during cutting, compare the chips generated, and analyze tools close-up. The Tool Olympics is a unique learning experience where new employees are able to polish the skills they need to perform as OSG employees while gaining experience completing tasks by a deadline in cooperation with their teammates and acquiring precious experience that only hands-on training provides.
Initiatives to Strengthen Literacy in AI as We Head Toward Its Company-wide Use
At OSG, we are promoting measures to strengthen literacy in AI in anticipation of using it to improve operational efficiency and enhance our ability to create value. As part of this, we held a lecture within a seminar for managers and startup training sessions targeting all employees. In the lecture for managers, we broadly covered the basic framework of generative AI, trends in how it is used in companies, and its expected future role in the manufacturing industry, aiming to form a strategic perspective. In the training for all employees, in addition to learning appropriate ways of using AI based on an understanding of its characteristics, we gave basic explanations regarding copyright, portrait rights, and security. Furthermore, the session was designed to help participants feel more familiar with its practical application by giving them practical exercises in creating prompts. We are strengthening the human resource foundation that supports the utilization of AI with these educational initiatives.
Strengthening the Human Resource Foundation Supporting Global Co-creation｜Achievements and Evolution of Training for Overseas Group Companies
measuring equipment during training
OSG accepts a diverse range of trainees throughout the year. In FY2025, we accepted a total of 18 groups (a total of 28 trainees) from Japan and overseas Group companies, as well as student interns. In particular, training from OSG Group companies covers a wide range of areas, from pre-installation support for in-house manufactured production equipment, to acquiring processing technology and sales know-how.
In particular, we have been continually accepting long-term trainees from Taiwan, who stay for approximately two years, working on sharing technical and operational information, human resource development, strengthening mutual support systems, and improving equipment maintenance capabilities and skill transfer systems. Upon their return, trainees are able to respond quickly by leveraging the Japanese language skills, technical expertise, and professional networks they acquired in Japan, and they also contribute to stable quality through the preparation of standard operating procedures (SOPs) in Chinese and English. The effects of on-site training, which cannot be obtained remotely, are significant, and we will continue this initiative going forward.
Taiho Tool Mfg. Co., Ltd.
General Manager Taiho Tool Mfg. Co., Ltd.
Strengthening Human Capital in the Era of a Shrinking Workforce --Enhancing On-Site Capabilities Through the Transfer of Skills and DX
Building a Foundation to Continually Enhance the Value of People
In Japan, the working-age population is rapidly declining due to the falling birthrate and aging population, and in the manufacturing industry, too, the aging and retirement of skilled workers are progressing, while the hiring environment is becoming increasingly difficult. To continue creating value with limited human capital, OSG is addressing the challenge from the perspective of human capital, focusing not on the decline in workforce numbers but on enhancing the value of its people. At the core of this approach are the strengthening of transfer of skills and the utilization of DX. Moreover, we have continued initiatives to reduce our workforce and automate, and have built a foundation for improving efficiency. On top of that, we are promoting the visualization of skills.
Recognizing Issues Surrounding the Transfer of Skills
The conventional method of transferring skills is centered on OJT. This has issues in that know-how is difficult to verbalize and tends to become dependent on individuals. The retirement of skilled workers leads to the risk of the loss of skills. In addition, it is necessary to establish an educational environment where diverse human resources can learn at the same pace, and the conventional approach to education of learning by watching and acquiring through experience alone is not sufficient. At OSG, in parallel with reducing waste through workforce reduction and automation, we emphasize the transfer of skills in areas of adding value that are handled by people.
Visualizing Skills by Utilizing DX｜ Using Video Manuals
using a video manual
At OSG, we are promoting visualization of skills through video manuals to accumulate skills as organizational knowledge. While using OSG Engineering Standards as the foundation, we position video manuals as a tool to support education and understanding, thereby reducing variation in training by demonstrating operational movements and key points that cannot be fully conveyed through text or photographs alone. This standardizes various operations to bring about stable quality. Currently, we have accumulated thousands of videos from manufacturing work sites, and testing and development divisions, and we envision their use in various situations such as preliminary learning, pre-operation confirmation, and review.
Enhancing Human Resource Development by Transferring Skills and Using Digital Technologies
At OSG, we think that in addition to the foundation of efficiency gained by reducing our workforce and automating, the creation of an environment where employees can grow safely and reliably is what truly enhances the value of human capital. Video manuals connect the knowledge of skilled workers to the next generation and also contribute to quickly making personnel with no prior work experience usable assets. Accumulating skills digitally also leads to the advancement of education and the instilling of improvements.
Future Outlook
Currently, we are in the progress of getting a grasp on how the video manuals are used and their effect on education. Going forward, we will proceed with incorporating them into the education process, establishing operational rules, and organizing their relationship with OSG Engineering Standards, based on feedback from the field. In response to the issue of a declining labor force, we aim to create sustainable on-site capabilities and corporate value by investing in human capital and the utilization of DX.
Careers and Reskilling
The OSG Group promotes reskilling so that our employees learn the knowledge and skills necessary for operations, which allows for the appropriate personnel to be assigned to the appropriate position. Our aim is to establish a system that better links employees' careers and business operations in order to improve the productivity of each and every individual.
OSG Group administers a career challenge statement system so that our employees themselves think about their own careers and periodically submit their aspirations detailing where they want to be in three, five, and ten years. Along with a certification incentive program through which we support our employees in improving the skills that will help them prepare to boost their own careers, we are seeking to create a distance learning program that functions interactively and allows employees to choose what they want to learn to improve themselves from more than 150 courses, as well as to create a system helping employees to find fulfillment and motivation in their work.
Building a Better Working Environment
Promotion of work-life balance
Flextime System
We have introduced a flextime system for positions in divisions such as technology, development and the back office, where improved efficiency and productivity can be achieved by providing employees with discretion over their working hours. This has been a popular addition to our existing systems of reduced working hours for employees with childcare and nursing responsibilities because it facilitates our employees' work and enables them to work in a way that fits their individual lifestyles.
Our flextime system operates between 6:00 am to 10:00 pm. The core hours depend on the time of year and are either 10:00 am to 2:50 pm or 10:30 am to 3:20 pm.
Childcare leave System
Due to the revision of the Childcare Leave Law, we are conducting educational activities and training for employees. We support the promotion of childcare leave for men as well as women, and have a system in place to provide individual explanations of the childcare leave system. We strive to create an environment that allows employees to balance work and family life. Since the introduction of the system, we have been enhancing the content of the system beyond the legally stipulated standards, and we have continued to improve and expand the system.
＜Childcare Leave System Expansion＞
Data on personnel taking childcare leave
Promoting Male Employees' Taking Childcare Leave
Following the revision of Child Care and Family Care Leave Act in 2022, the percentage of male employees taking childcare leave temporarily declined from 44% in FY2023 to 36% in FY2024, but has since rebounded to 38.2% in FY2025.
While internal awareness has increased and the environment is gradually becoming more conducive to utilizing the system, we recognize that important challenges remain, including fostering understanding among supervisors and workplaces for those wishing to take leave, as well as ensuring appropriate distribution of workloads during their absence. In addition, some employees are concerned about a decrease in income and the impact on performance evaluations if they take childcare leave, so we are working to enhance both potential childcare leave participants' and their supervisors' understanding of the program by providing explanations of the performance assessment system as well as salary increase and promotion schedules. We believe these initiatives will help increase the percentage of employees taking childcare leave. We will continue to strive to ascertain the current status and challenges facing those who would like to take childcare leave and bolster our commitment to creating an environment where even more employees who wish to avail themselves of this program are able to gain the understanding of their workplaces without worrying about such hindrances.
So that we may create a workplace environment that enables our employees to achieve even greater success as well as balance their work and family life, we developed an action plan to be implemented by March 31, 2028, in accordance with the Act on the Promotion of Women's Active Engagement in Professional Life and The Act on Advancement of Measures to Support Raising Next-Generation Children.
◆Targets for Increasing the Ratio of Male Employees Taking Childcare Leave
＜Target: Ratio of male employees taking childcare leave＞
2027: 50%
2030: 75%
＜Initiatives＞
Clearly communicate the policy to foster a workplace culture where male employees can easily take childcare leave
Engage in activities that raise awareness among all employees about the newly-adopted childcare leave system with the aim of expanding use of both this and other programs
Individually approach employees eligible to take childcare leave and encourage them to do so
Periodically issue internal notifications announcing the ratio of employees taking childcare leave and share progress being made in promoting this initiative
Since the work that I engage in requires specialized expertise, it takes time to train human resources. For this reason, we spend time every day training employees and covering for one another so that we can accomplish the same work tasks. Thanks to this, I have been able to take childcare leave without feeling anxious. At the same time, I think that there are also some work areas with many challenges for childcare leave, due to the category of work or the number of employees. If we are to promote the use of childcare leave in the future, I think it is necessary for supervisors to first learn about and understand childcare leave, or take it themselves, and then pass on information about it to their subordinates. In addition, some employees may have concerns about the impact of childcare leave on their performance evaluations, so I think it would be even easier for them to take childcare leave if information is provided to employees to fully dispel their concerns.
Assistant Manager Manufacturing Division Toyohashi Factory
Nursing Care Leave System Expansion
We have continued to improve and expand our nursing care leave system since its introduction. More detailed information is provided below.
＜Nursing Care Leave System Expansion＞
Expansion of Eligibility for Taking Annual Paid Leave by the Hour
OSG has previously allowed employees who need to care for a child in the third grade or younger, a family member within the second degree who requires nursing care or support, and need to go to the hospital or receive treatment for an injury or illness to take annual paid leave by the hour. From April 2022, with the aim of improving work-life balance, the scope of coverage has been expanded to all employees to take annual paid leave by the hour.
Increased Maximum Reserve for the Expired Paid Leave Reserve System
As part of our existing efforts to reduce lost paid leave, we have operated a reserve system for paid leave, which expires two years after it is received, while also aiming to increase the rate of paid leave taken each year. Reserve paid leave can be taken in order to receive medical treatment in cases of personal injury or illness and to provide nursing care to family members through the medical leave system. Previously, up to 6 days per year could be kept in reserve up to a maximum cumulative total of 40 days, however, these initiatives were further improved and expanded in April 2025.
＜Medical Leave System Expansion＞
Under the previous eligibility conditions, employees had to be unable to work for at least one full day due to non-work-related illness or injury. We have expanded the eligibility conditions so that the medical leave can be taken on an hourly basis for outpatient treatment, enabling employees to better manage both work and medical care.
Safety and Health Management
OSG declared itself a "Global Company," "Healthy Company," and "Environmentally Friendly Company" in 1996. In 2014, we adopted the tagline "Shaping your dreams" as our brand identity. We believe that creating an environment where each and every employee is cheerful, happy, and energetic in their daily work and contributing to the sustainable development of the community, society, and the Earth based on our philosophy of "being a public entity of society" will create a prosperous future. As we approach our 100th anniversary, we will continue to pursue wellbeing and give shape to our dreams through human resource development and manufacturing as a global company that shines even brighter.
Safety and Health Management Report
Safety and Health Management Report（3.1 MB）
Health management
Support for Balancing Medical Treatment and Work
At OSG, we have established a company policy regarding support for balancing medical treatment with work.
In order to implement this company policy, a number of employees have been involved in the creation of various systems to support employees who are receiving medical treatment.
A system to facilitate contact with occupational health professionals has been implemented at each of our locations.
Occupational health professionals handle a range of internal notification procedures in order to reduce the burden placed on the person receiving treatment.
Careful consideration is given to the condition of the person receiving treatment, and every effort is made to support them as much as possible.
We constantly strive to put our employees first and enable them to balance medical treatment with work.
Health Initiative: "Sukoyaka Nine" Program
This initiative focuses on nine lifestyle factors: weight, smoking, alcohol consumption, breakfast, diet, exercise, sleep, stress, and personal goals. By using these as a framework, employees are encouraged to reflect on their own health condition and take actions toward improvement.
In addition to company-wide efforts, each site also develops and implements its own health programs, working together across the organization to create a workplace where employees can stay healthy and work with vitality.
Four consecutive years of recognition as an Outstanding Organization of KENKO Investment for Health Program
In the "Certified Health & Productivity Management Outstanding Organizations Recognition Program," jointly administered by the Ministry of Economy, Trade and Industry (METI) and the Nippon Kenko Kaigi, OSG was certified as a 2026 Outstanding Organization of KENKO Investment for Health Program (Large Enterprise Category).This marks the fourth consecutive year of certification.
As part of its commitment to occupational safety and health management, OSG conducts annual health checkups and provides health guidance tailored to individual conditions through industrial physicians and public health nurses, thereby strengthening support for employee health management.
Going forward, OSG will continue to foster a workplace environment where each employee can maintain both physical and mental well-being and fully demonstrate their capabilities.
Safety Management
Safety and Health Committee
Under the leadership of the Headquarters Safety and Health Committee, in which all executives participate, each committee continues to work together with all employees to promote safety and health. In the event of an accident, the Safety Management Committee takes the lead in pursuing the causes and countermeasures at the site where the accident occurred, and shares the information with the company to prevent the same accident from happening again. The Health Management Committee supports the health status of each employee and promotes health activities with the aim of creating a workplace environment where employees can feel healthy and secure.
Safety Education
OSG conducts risk assessments, offers safety and health education, and holds zero accident meetings to raise employees' awareness of safety.
In our safety and health education program, we conduct training for managers and supervisors, special in-house education, and traffic safety education. Since 2016, we have also introduced hands-on safety training in collaboration with outside organizations, allowing participants to engage in simulated hazardous tasks to help compensate for diminished hazard awareness.
Respect for Human Rights
The OSG Group and all employees shall respect human rights both in Japan and abroad and be committed to following the letter as well as the spirit of all relevant laws, regulations, and international rules, while taking an independent approach to the creation of a sustainable society with sound values. We ensure a healthy work environment that will neither offend nor discriminate by race, belief, skin color, sex, religion, nationality, language, physical appearance, wealth, or birthplace.
Human Rights Policy
OSG Corporation and all the group companies (hereinafter referred to collectively as "OSGs") respect the "International Bill of Human Rights" (Universal Declaration of Human Rights and International Covenant on Human Rights), the International Labour Organization (ILO)'s "Declaration on Fundamental Principles and Rights at Work" and the United Nation's "Guiding Principles on Business and Human Rights," which define the fundamental human rights that everyone in the world should have, and establish "OSG Group Human Rights Policy" (hereinafter referred to as "Policy"). Each one of the members of OSGs shall promote activities related to human rights based on this Policy.
OSG Group Human Rights Policy（80 KB）
Initiatives Promoting Respect for Human Rights
Some of the main activities undertaken at our company in order to promote respect for human rights are outlined below.
We are making active efforts to promote human rights awareness among all of our employees and will continue to carry out this important work. OSG is also a member of the Industrial Federation for Human Rights in Aichi and engages in activities to promote and improve human rights awareness.
The Sustainable Development of the OSG Brand
Pursuit of Customer Satisfaction
Technical Seminars
Even as the OSG Group actively strives to achieve digitalization, we place a high value on the connections we have formed with customers. We not only regularly hold in-person seminars but also online seminars so that participants can attend no matter where they are. These online seminars take advantage of the benefits such a platform offers, such as providing archives of the seminars and preparing multiple timeslots so that as many of our customers as possible may attend. In addition, online events and services have spread rapidly since the pandemic, which seems to have diversified points of contact that we have with customers. We are now able to quickly gather feedback from customers voiced across various platforms and make use of this precious feedback to improve our services and quality as well as develop new and better products. We will continue to make use of the advantages that both face-to-face and online platforms offer, and provide our customers with useful information tailored to their needs.
Communication Dial
Inquiries that we receive through our Communication Dial service range from basic questions to quite difficult ones relating to actual machining processes. Depending on the nature of the inquiry, it may be necessary to check with our design and development divisions or contact the sales team to arrange a visit to the customer. We are committed to providing the best service to each and every customer. We also have an FAQ webpage, which we create and update based on analyses of the more than 100 inquiries and feedback received daily from customers. We are striving to create an environment that will enable us to respond to our customers' diverse needs by promoting digitalization in addition to the existing Communication Dial services. With the pace of change accelerating, we will continue to maintain our customer-first approach. We want our clientele to always regard OSG as a company they can consult and rely on to solve any issues they face, no matter what problems arise.
Quality Management System
Quality Policy
OSG Quality Certification System
OSG has a proprietary quality assurance system certification program in place to ensure consistent quality worldwide, and we have strived to maintain and improve the level of quality at our group companies both in Japan and abroad. The quality certification system certifies that quality management from the arrival of raw materials (or materials for which regrinding has been requested) to product shipment and after-sales service is equivalent to that of the mother factory operated by OSG Japan.
Evaluation is performed by certified quality auditors from OSG Japan in accordance with the Three Reality Principle ("going to the actual site", "seeing the actual goods", and "seeing the actual situation"). The systems in place to ensure that the quality required by customers is provided on a consistent basis and the capability of employees to correctly evaluate products are evaluated. This is done through quality audits based on evidence submitted through communication with those in charge and those carrying out the work. Our audits use a five-tier evaluation system to check and determine whether the quality assurance system passes categories defining product quality, quality inspection skills, and quality improvement capabilities. For example, product quality is evaluated by randomly sampling mass-produced products and measuring them to determine whether they are produced according to the dimensions specified in drawings as well as ascertaining base materials and grinding quality.
We will continue to further expand these activities in order to ensure that OSG's standards of manufacturing are maintained at our group companies around the world.
My main job is to audit the quality systems of our domestic and overseas group companies. With production sites around the world, it is important to maintain stable quality regardless of whether the site is located in Japan or abroad, and to ensure consistent quality no matter who produces the item or where it is produced. However, this is by no means an easy task. Behind the stable quality lies the diligent accumulation of each and every task. I am always thinking about how we can maintain reproducibility in this process and providing assistance in constructing quality assurance mechanisms through these audits of quality systems.
Naoya Fujishiro
Quality Assurance Group Quality Assurance Department
Automation of Inspection & Packaging to Eliminate Human Error
Many mistakes and defects in the final inspection and packaging process are often due to human error. Therefore, we are striving to enhance the efficiency of these processes and utilize equipment with the goal of eliminating misjudgments and defects. Streamlining packaging materials simplifies the work and enhances its efficiency as well as reduces plastic waste and costs associated with such materials. In the past, we used to visually check the shipping label affixed to a package and the enclosed delivery statement. Now, thanks to adoption of a character collating system, we have been able to reduce erroneous packaging and shipping. In addition to promoting automation of visual product inspections, we have implemented initiatives to eliminate irregularities in manual inspection accuracy and reduce the risk of blade chipping or other accidents occurring during manual work. Replacement of the previous visual inspections, which were conducted using a microscope, with image inspections has made it possible to inspect tools in more detail. As these images may be stored, this database also offers the benefit of bolsters traceability.
The Path to Manufacturing Innovation: Toward Non-Stop Manufacturing Centered on Quality
Efficiency, Workforce Reduction, and Stable Quality Through the Five "Zero Principles"
OSG sees quality as reliability that keeps customers' production going. We promote the Manufacturing Division's policy of innovative manufacturing throughout the Company. Amid global changes in the composition of human resources, growing sophistication of demand, and increasing uncertainty in supply chains, the stability and improvement of quality lie at the core of sustainable value creation. Based on our five "zero principles"--zero touch, zero return, zero hand, zero judge, and zero stop--we are making stepwise advances in efficiency, reducing our workforce, and strengthening traceability through the combination of in-process quality assurance, preventive maintenance, and digital recording.
Aiming for Stability in Quality Through End-to-End Information Linkage
We are linking our sales, design, production management, manufacturing, and inspection work systems as we transition to a system by which information is only added in accordance with the progress of processes. By aggregating input terminals, with the Shinshiro Factory as the starting point, we achieve real-time recording, the standardization of judgments, and more prompt corrective action. By deploying this throughout the Company, we are simultaneously achieving stability of quality and operational efficiency, which leads to a reduction in supply risks.
Non-stop Quality with Preventive and Predictive Maintenance
We regularly monitor equipment status data (backlash, etc.) and conduct planned maintenance based on threshold management. By detecting signs of abnormality early and minimizing recovery time, we maintain stable operation of equipment.
Using Automated Decisions and Automated Measurements to Make Consistent Judgements
In our in-process inspections, we are introducing image processing and digital measuring instruments to automate decisions on visual appearance and physical dimensions. By excluding the unevenness inherent in human-based judgments, we are strengthening consistency in our in-process quality assurance and record-keeping.
Creating Value with Improvements Rooted in the Manufacturing Site
At each of our factories, we increase the efficiency of work and stabilize quality by using automated conveying equipment, automating inspection processes, and consolidating processes by introducing compound processing machinery. These initiatives steadily advance our shift to a production system that is not dependent on people, which leads to reducing burdens at manufacturing sites and making sophisticated use of technical capabilities.
Balancing Quality and Productivity with an Eye on 2030
We have a goal of establishing a highly efficient production system that makes use of existing resources, with 2030 as the target year. By advancing the automation of processes, digitalization of information, and sharing of knowledge without sacrificing quality, we will simultaneously raise both productivity and reliability.
Raising the Level of Fully Local Manufacturing Originating in Improvement of Quality: OSG (Shanghai) Precision Tools
Evolving Precision and Establishing Market Competitiveness by Reforming the Production Environment
Viewing quality as the foundation for sustainable growth, we make "Continue to stably create good things" a key theme of management. OSG (Shanghai) Precision Tools (hereinafter the "Songjiang Factory") has achieved both precision in products and positive evaluations from the market with an approach that takes not only reinforcement of equipment and increasing personnel but also the production environment itself as a factor of quality.
Restructuring the Quality Foundation by Visualizing Information About the Production Environment and Stabilizing Temperatures
The Songjiang Factory found that the primary factors behind unevenness in precision lay not only in people and the performance of machinery, but also in variations in the environment, such as room temperature, oil temperature, and machine temperature. To achieve production under constant temperatures, we revamped the factory, starting from its layout and infrastructure.
First, we renovated the factory to significantly reduce the range of indoor temperature variation, from ±2.8°C to ±1°C. By doing so, we constructed a stable machining environment that is less susceptible to effects from outdoor temperature and seasonal variation. In addition, we introduced the latest oil temperature control system for the hydraulic oil used in machine tools. This move has reduced oil temperature fluctuations from ±1.4°C to ±1°C. We further installed insulating material on some machinery to reduce fine fluctuations in machine temperature. Through the simultaneous stabilization of these three points (room temperature, oil temperature, and machinery temperature) we created an environmental foundation that supports precision machining.
Composition of Products and Expansion of Sales Driven by Quality Improvement
The percentage of sales of A-Brand products is rising over time, driven by sales of standard and special order products featuring high precision. In the carbide drill field, sales of both standard and special order products from the Songjiang Factory are growing, and products manufactured there have demonstrated a rise in competitiveness relative to products manufactured in Japan.
Underlying the growth is customers' recognition of not only cost competitiveness but also non-price value, such as the stable precision and reproduceable quality made possible by the products. Seeing this market as a growth opportunity, we transferred a portion of the testing and verification functions performed in Japan to the Chinese site. By doing so, we have readied a system that enables the prompt completion of actions there in China, from analysis of causes to drafting of countermeasures, when issues occur. Raising the speed of quality improvement leads to the earning of customers' trust and creates differentiation from competitors in China and local competitors worldwide.
Toward Creating Sustainable Value Centered on Quality
The Songjiang Factory's initiatives are not aimed at improving equipment but at building mechanisms that create quality. This circular model, by which the environment is controlled, precision is managed numerically, and outcomes are connected to market value, is becoming a vital management asset for our company and will be expanded to other sites.
We will continue to advance fully local manufacturing originating in improvement of quality, as we work to strengthen our competitiveness in the Chinese market and sustainably enhance our corporate value.
Quality Management System
ISO 9001
ISO 9001 Certificate（751.5 KB）
Supply Chain Management
As an essential player contributing to the global manufacturing industry, the OSG Group will continue striving to solve human rights, environmental, and other challenges throughout its supply chain while also fulfilling its social responsibility.
OSG Procurement's Basic Policies
At OSG Group, we implement the following measures based on the OSG Group Corporate Code of Conduct in our procurement activities.
Open and Fair Transactions
OSG carries out fair and open transactions based on the principle of free competition and in accordance with the values of globality and openness. In order to establish relationships leading to mutual growth, OSG and its suppliers make efforts to deepen mutual understanding and build relationships of mutual trust.
Compliance with Laws, Regulations, and Social Demands
Our procurement activities are carried out in compliance with laws, regulations, and social norms. In accordance with social demands, we also develop our procurement activities with due consideration to the environment, human rights, labor standards, health and safety, and information management.
Consideration for the Environment
In order to protect the environment, we prioritize the purchase of eco-friendly products (green procurement activities) and the use of suppliers who implement environmental conservation measures in their manufacturing processes.
CSR Procurement
Corporate Social Responsibility (CSR) Procurement aims to minimize social and environmental impacts across the supply chain. This includes issues related to human rights, labor standards, corruption, environmental protection, and other important matters affecting our communities. Stronger demands by society are being placed on companies to implement such efforts.
The OSG Group CSR Procurement Guidelines outline key actions that both the OSG Group and our suppliers should take to promote sustainable development.
OSG Group CSR Procurement Guidelines
The OSG Group CSR Procurement Guidelines enhance suppliers' understanding of what is expected of them. This enables them to better adhere to these guidelines in their operations. Additionally, it supports the implementation of CSR activities throughout the supply chain.
CSR Procurement Guidelines
Guideline-Based Sustainable Procurement
Pursuing Sustainable Procurement Activities
The OSG Group has asked its suppliers to do CSR self-assessment surveys and respond to conflict mineral surveys based on the OSG Group CSR Procurement Guidelines. The purpose of this has been to ascertain the status of CSR initiatives in the supply chain, ensure there are no transactions that involve conflict minerals, and have suppliers develop a better understanding of the OSG Group's supply chain management efforts and philosophy.
This fiscal year, we conducted on-site surveys of principal suppliers to verify compliance in areas based on our CSR standards, such as governance, human rights, occupational safety and health, the environment, quality, information security, anti-corruption, and community coexistence. Although the survey confirmed that appropriate management systems were generally in place, we identified room for improvement in two areas: strengthening compliance with chemical substance regulations and enhancing conflict mineral surveys (CMRT/EMRT), and requested corrective actions.
We will continue to refine our sustainable procurement activities through ongoing dialogue with suppliers and support for improvement initiatives.
CSR Self-Assessment Survey
We conducted a survey of our Group's principal suppliers in Japan regarding their CSR initiatives.
results
results
results
Surveys are analyzed and evaluated, and feedback is provided to suppliers.
We will continue to improve the survey, giving consideration to expanding the number of companies surveyed as well as revising survey questions.
OSG Policy of Responsible Raw Material Procurement
Concerns have been raised about the mining of tin, tantalum, tungsten, gold, cobalt, mica and other minerals in conflict-affected and high-risk areas. The process of mining such minerals as well as their trade may involve child labor, forced labor, or other human rights violations as well as raise issues relating to labor standards. There is also apprehension that the proceeds from such mining may also serve as a source of funds for armed groups in conflict-affected regions.
OSG Group has made a commitment to engage in responsible mineral procurement. In accordance with OECD Due Diligence Guidance, we have been identifying risks so that we may address such issues.
In addition, as our suppliers appreciate these initiatives, we have also asked them to cooperate with surveys detailing the history on how the minerals have been procured. We request that they source minerals from certified smelters not party to any such issues.
Green Procurement
We aim to provide our customers with environment-conscious products in accordance with our Environmental Policy of making our entire supply chain more environmentally friendly.
We seek the cooperation of our suppliers in the establishment of an environmental guarantee system and the provision of environmental guarantees of procured products in order to allow us to act as a business that provides eco-friendly products through our development, design, production, and distribution processes in all of the regions in which we operate.
Green Procurement Guidelines
Our Green Procurement Guidelines are an important set of policies that consider the full life cycle of commercial products and relate to the management of chemical substances in supply chain products and information provision. In order to prioritize the procurement and purchase of materials and products with a reduced impact on people and the environment when procuring materials required for production, we work together with our business partners in areas such as the management of chemical substances contained in products and self-evaluation of green procurement activities. We are also undertaking initiatives to promote the integration our green procurement activities with those of our suppliers.
Partnership Building Declaration
OSG drafted and announced our Partnership Building Declaration aimed at strengthening partnerships through the promotion of collaboration, coexistence, and co-prosperity with our supply chain partners and entrepreneurs seeking to create value.
OSG Partnership Building Declaration
Contribution to Local Communities
In-house training school, OSG India Academy
OSG India Academy opened in India in 2023 is an educational institute which aims to develop India's human resources in the field of manufacturing. At OSG India Academy, trainees learn Japanese-style manufacturing while they actually operate machinery during the one-year training program which is originally designed. Of the 10 graduates produced to date, seven have joined OSG India, where all of them are playing active roles as key personnel on the production floor and are highly regarded. Among them, two were assigned as staff members at the new Chennai plant, which commenced operations in August 2025, and are taking on important responsibilities in plant operations.
The distance between Pune, where the academy is located, and Chennai is approximately 1,700 km. Although both locations are within India, they differ significantly in terms of geography and culture, and it is not common in India for employees to voluntarily accept such long-distance transfers and take on the challenge of launching a new plant. The autonomy and advanced expertise cultivated through the academy have made it possible for them to take on this challenge.
Going forward, we continually leverage the know-how gained from management of the Academy and strive to discover and develop human resources in India. In Japan's manufacturing sector, particularly in the core field of tool manufacturing, we will be actively engaged in human resource development in areas such as OSG style product inspection and quality, and tool production techniques and contribute to developing India's manufacturing industry and strengthening the economic environment.
OSG supports the Shuzo Challenge, Japan Tennis Association Project for junior men's tennis athletes
OSG supports the Shuzo Challenge, a segment of the Mt. Fuji Project launched by the Japan Tennis Association Project, to improve the skills of junior men's tennis athletes
Shuzo Challenge is a tennis camp run by Shuzo Matsuoka, director of the Japan Tennis Association and deputy general manager of the High Performance/Junior Development Department. At the camp, Shuzo Matsuoka and his staff provide expert coaching in skills and tactics as well as the ways of building physical and mental capacity to achieve the aim of developing men's tennis junior players' skills and competence to play at a world-class level in the future.
Through our promotion of sports, OSG works to create an environment where each and every one of our employees is able to devote themselves to their daily work in a cheerful, enjoyable, and energetic manner. Based on the principle that companies should be institutions for the benefit of society, we are aiming toward a prosperous future and working to make a sustainable contribution to the community, society, and the planet.
We support the San-en NeoPhoenix
OSG considers growing together with local communities and contributing to the creation of a sustainable and prosperous future as one of its key priorities. As part of these efforts, we strongly resonate with the management philosophy of the professional basketball club "San-en NeoPhoenix"--"Bringing smiles and energy to the San-en region"--and support the team as an official sponsor.
At OSG-sponsored games, we carry out a variety of initiatives aimed at further promoting community engagement through sports. During the 2025-2026 season, we invited people from facilities supporting persons with disabilities to the venue and created opportunities for them to showcase and sell products and confectionery made with care. These initiatives provide opportunities for interaction and participation, contributing to the realization of a society where no one is left behind.
Such activities not only allow participants from these facilities to experience the joy of engaging with customers and selling their products, but also offer visitors valuable opportunities to connect with the diverse values and people rooted in the local community.
In addition, OSG's popular character "Tap-kun" appears at the venue each year, interacting with children and many members of the local community and helping to create a lively and welcoming atmosphere.
OSG will continue to work together with San-en NeoPhoenix to expand initiatives that enrich the future through community-based activities.
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