the group-wide effort to promote digital transformation

2
data collection Informatics Accelerate research and development through simulation and informatics Setting goals fundamental technology technology trial in-house evaluation mass production customer evaluation Market launch Share the image of products and development with customers In-house data base VR 3D printer optimum design Simulation Toray Industries, Inc. Integrated Annual Report 2020 74 Advanced Business Management by The Group-wide Effort to Promote Digital Transformation A key focus in “AP-G 2022” is promoting advancements in management through digital transformation (DX), which will strengthen competitiveness and transform business through the effective use of data and digital technologies. In order to facilitate reviews and discussions regarding group-wide efforts to promote DX, Toray established the TDX Promotion Committee, and under that the Technology Center DX Promotion Committee and the Business Division DX Promotion Committee. The Company is advancing the group-wide TDX Promotion Project in addition to conventional departmental initiatives. Research and Technological Development: Research of advanced materials through Digital Monozukuri (manufacturing) Research and development used to require a great deal of trial and error, but efficiency has been greatly improved thanks to simulations and materials informatics, which make the best use of theoretical calculations and data science. Development images can be shared with customers through prototype systems using VR and 3D printers to achieve optimal designs that are consistent from the initial target settings. Examples of DX Initiatives Toray Digital Transformation (TDX) Promotion Committee Technology Center DX Promotion Committee Drive advancement and streamlining by leveraging digital technology in research and technological development (R&D), and production Business Division DX Promotion Committee Visualize global management information in sales & market- ing, finance & accounting, and purchasing & logistics, and advance business management

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Page 1: The Group-wide Effort to Promote Digital Transformation

data collection

InformaticsAccelerate research and development through simulation and informatics

Substantially improve the detection of defects with AI technology

Settinggoals

fundamental

technologytechnology

trial

in-house

evaluation

massproduction

customer

evaluation

Marketlaunch

Share the image of products anddevelopment with customers

In-house data base

VR 3D printer

AI

optimum design

Simulation

Defect detection camera

Image data

defects

shipmentpass

failurescrap

Warehouse

Reader

Office PC

Streamlining logistics by tracking pallet inventory information online

Automatic inventory control and warehouse management

Pallets incorporating active tags

Labor productivityimprovementwith an automation system

Toray Industries, Inc.Integrated Annual Report 2020

74

Advanced Business Management by Utilizing Digital Technologies

The Group-wide Effort to Promote Digital TransformationA key focus in “AP-G 2022” is promoting advancements in management through digital transformation (DX), which will strengthen competitiveness and transform business through the effective use of data and digital technologies. In order to facilitate reviews and discussions regarding group-wide efforts to promote DX, Toray established the TDX Promotion Committee, and under that the Technology Center DX Promotion Committee and the Business Division DX Promotion Committee. The Company is advancing the group-wide TDX Promotion Project in addition to conventional departmental initiatives.

Research and Technological Development: Research of advanced materials through Digital Monozukuri (manufacturing)

Research and development used to require a great deal of trial and error, but efficiency has been greatly improved thanks to simulations and materials informatics, which make the best use of theoretical calculations and data science. Development images can be shared with customers through prototype systems using VR and 3D printers to achieve optimal designs that are consistent from the initial target settings.

Examples of DX Initiatives

Toray Digital Transformation (TDX) Promotion Committee

Technology CenterDX Promotion Committee

Drive advancement and streamlining by leveraging digital technology in research and technological development (R&D), and production

Business DivisionDX Promotion Committee

Visualize global management information in sales & market-ing, finance & accounting, and purchasing & logistics, and advance business management

Page 2: The Group-wide Effort to Promote Digital Transformation

data collection

InformaticsAccelerate research and development through simulation and informatics

Substantially improve the detection of defects with AI technology

Settinggoals

fundamental

technologytechnology

trial

in-house

evaluation

massproduction

customer

evaluation

Marketlaunch

Share the image of products anddevelopment with customers

In-house data base

VR 3D printer

AI

optimum design

Simulation

Defect detection camera

Image data

defects

shipmentpass

failurescrap

Warehouse

Reader

Office PC

Streamlining logistics by tracking pallet inventory information online

Automatic inventory control and warehouse management

Pallets incorporating active tags

Labor productivityimprovementwith an automation system

Toray Industries, Inc.Integrated Annual Report 2020

75

Advanced Business Management by Utilizing Digital Technologies

Logistics: Streamlining logistics by adopting labor-saving pallets with active tagsToray is an industry leader in introducing the Smart Pallet®* pallets equipped with the active RFID tags of UPR Corporation to transport resin products in Japan. Without the need of manual inventory count, the sys-tem automatically keeps track of the number of pallets at the shipping source and makes it possible to use forklifts to load and unload pallets not only within the Company but also at each stage from the delivery com-pany to the customer’s location, thus greatly reducing the burden of labor on women and the elderly.

* The Smart Pallet® was jointly developed by UPR Corporation and NTT Corporation. Its active tag uses technology that is state of the art and can transmit data to a reader up to 300 meters away. Smart Pallet® is a registered trademark of UPR Corporation.

Sales: Holding on-line exhibitions of apparel textilesWith many textile companies forced to cancel their exhibitions due to the COVID-19 pandemic, Toray was able to hold an online exhibition of its spring and summer textiles for men’s and women’s clothing for about 10 days. Materials attracting attention, including Kinari™, were divided into five concept categories, with 73 carefully selected products offered. Orders were accepted online with samples quickly delivered. The online exhibition attracted 652 visitors and won praise as among the first in the industry in using the Internet to select materials.

Production: Automatic monitoring system utilizing AI technologyAI-based image recognition technologies are used to replace visual-based monitoring and inspection work previously carried out by individual employees. This has contrib-uted to a sharp reduction in man-hours and the prevention of abnormalities and defects. We are working to improve productivity by increasing the number of successful cases in which we apply AI technologies in pro-duction operations at each of our plants.

Toray was selected for “Digital Transformation Stocks (DX Stocks) 2020” by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange, as a company actively engaged in DX efforts.