43Yokogawa 100th AnniversaryKogyo K.K. for analyzers, CHINO Works (the current CHINO) for temperature controllers, Asahi Kohsan for instrumentation work, Hokushin Electric Works for recording paper, and IBM for computers.End of the Rapid Economic Growth EraLeaving the high-frequency measuring instruments business to YHP, Yokogawa focused on growing its general measuring instruments, industrial instruments, and instrumentation systems businesses. When the stock market took a turn for the worse in 1965, sales declined for both Yokogawa and YHP. In 1966, Miyaji Tomota took over as Yokogawa’s president and sought to strengthen Yokogawa’s business by reducing the number of product models and overhauling the company’s administrative functions. Business conditions in Japan started to pick up again in November 1965 and remained strong until July 1970.In terms of products, the launch of the CCS in 1962 was followed by the release of the YODIC-500, Japan’s rst double CPU direct digital control (DDC) system, and the EBS, an electronic control system, in 1966; and the YODIC-600, a fully duplex DDC system, in 1970. These products employed some of the same highly reliable technologies, that would later be used to develop the CENTUM integrated production control system.Yokogawa also entered the process analysis instruments business. Starting with the release in 1966 of its rst process gas chromatograph, which featured an ER for added value, Yokogawa continued to develop various technologies and by the 1980s had captured a 90% share of this market in Japan. In 1969 the company released a B/M meter (for use in paper mills to measure basis weight and moisture), and in 1970 the company came out with a sulfur content meter that would later be used to enter the US market.To boost sales by strengthening relations with customers, the Tokyo branch oce was relocated to Yaesu in central Tokyo. Administrative work eciency was also improved greatly by introducing an IBM360 computer. And in the company’s manufacturing facilities, productivity started to rise with the introduction of leading-edge equipment and quality control activities.However, the Japanese economy started to slow down after the Osaka Exposition in 1970, and the Nixon shock (dollar crisis) in 1971 caused great diculties for most manufacturers, including Yokogawa. In 1971, when Toshinori Matsui became the Yokogawa president, the company had fallen behind its competitors in sales revenues. Yokogawa therefore acquired Nakaasa Instruments Co., Ltd., a meteorological instruments manufacturer, and signed a sales tie-up agreement with Tokyo Keiki for marine instruments in July 1972. In the same year, the company acquired land for a second production facility in Kofu, Yamanashi, where there was more space for future expansion.However, in October 1973 when construction of the Kofu factory was just about to start, the rst oil crisis struck, and all advanced economies, relying on oil-dependent mass-production and mass-consumption, entered recession. The Kofu factory, which was completed in July 1974, started operation amidst an economy that was shrinking for the rst time since the war. Japan’s rapid economic growth ended and Yokogawa was forced to seek new avenues for growth in a slowly-growing economy.Miyaji TomotaYODIC-500The Kofu factoryToshinori MatsuiGas chromatographSulfur content meterB/M meter
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