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Classification of Cost-Control Standerds
| 1. | A (Actual) value | Accounting items used in budgets and annual accounting undertaken by the financial division. |
| 2. | CF (Cash Flows) | The flow (outflow and inflow) of cash, such as inventory amount. |
| 3. | V (Virtual) value | A value for operational productivity converted into a money amount, such as production capacity and operating time. |
What is Z∑ Subject?
| 1. | The cost-control standard to be improved with the subject is selected, and an accurate calculation of the monetary effect is undertaken base on budgets and actual performance. |
| 2. | The progress of each subject is disclosed on ZEON's intranet system, and anyone can offer advice and comments. |
Goal and Achievements of Z∑ Subjects
The goals and achievements of the Z∑ subjects for the past three years are as follows:
| Fiscal year | 2004 | 2005 | 2006 | 2007 | 2008 |
| Total number of subjects | 1,047 cases | 1,192 cases | 1,354 cases | 2,166 cases | 3,430 cases |
| Completed subjects | 955 cases | 1,037 cases | 1,043 cases | 1,588 cases | 2,257 cases |
| Completion rate | 91% | 87% | 77% | 73% | 66% |
| Accounting item (A value) subjects | |||||
| Completed A value subjects | 613 cases | 644 cases | 612 cases | 979 cases | 1,338 cases |
About Z∑ Compensation
To further pursue Z∑ Activities, we have introduced a compensation system into our personnel management system to reflect achievement of Z∑ items in employee compensation. Under this system, the Division Evaluation Committee assesses each employee's achievements, based on measurements such as speed and the amount of cash flow generated.
