Theoretical-value-based production is a unique initiative by Yamaha Motor and has been implemented at all of its Group companies and business partners. By conducting improvement activities after first drawing up a vision, we try to obtain a much higher output with a different way of thinking compared to a conventional incremental approach. In addition, we seek to achieve contributions to management results by linking these activities with the income statement or balance sheet.Specifically, this is a unique improvement method through which “value running time,” generally known as evaluation benchmark for productivity, is further broken down into value, quasi-value, and no value, and any elements of no value are thoroughly analyzed and minimized.In addition, it focuses not only on the productivity of people and facilities, but also the lead times for people and goods. We seek to realize a shorter lead time and make improvements in following the market by proceeding with the synchronized production of processes with the perspective of overall optimization.These activities were started in Japan in 2004 and rolled out to Group companies overseas the following year, and have led to positive results within the Company. In 2009, these activities were also implemented at our business partners, and helped to improve the results of our partners that had been affected by the bankruptcy of Lehman Brothers.Currently, these activities have been implemented at 18 of 34 of Yamaha Motor’s overseas production bases.These activities, which began with motorcycle production, have expanded to the production of outboard motors, robots, swimming pools, and boats. Such activities are also advancing from process improvements to include comprehensive improvements as well as the pursuit of technological theoretical value.Yamaha Motor’s unique theoretical-value-based production Theoretical-value-based production chartOperating timeValue running timeRunning lossValue working timeQuasi-value working timeNo value working timeField theoretical valueFastest timeTechnology lossEssential functionsTechnological theoretical valueIdentify the essential functions, eliminate items and objects (losses) other than these essential functions, and continue to aim for new heightsTheoretical-value-based logisticsWe define value in the same manner as theoretical-value-based production: cooperate with related departments and pursue theoretical value from the perspective of overall optimization through a demand chain approach. We will reduce losses in plant transport logistics and packaging logistics, and implement packaging and logistics based on a global standard.Theoretical-value-based energyWe pursue energy minimization by defining the theoretically required energy as “value energy,” and thoroughly eliminating non-value areas through improvements in both facilities and operations.We will implement this method at suppliers as well as Group companies in Japan and overseas.Development into theoretical-value-based logistics and theoretical-value-based energyAmount of energy is reduced each year, even with growing sales2012100%57264%500(Base year)Per unit(Energy cost/net sales)Amount of energy(1,000t-CO2)201320142015201620172018Reduction of 36% versus the base yearActivities to Support Value CreationManufacturingYamaha Motor Co., Ltd. Integrated Report 201848

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