The number of business partners that have implemented theoretical-value-based production has expanded to approximately 330 companies globally. In addition, profitability has increased considerably due to the further pursuit of improvements.Through this process, strong teamwork is being established between business partners and Yamaha Motor.Global Suppliers Conference (GSC)• Held for the seventh time this year since 2013. • The objective is to share the “Next Yamaha” with suppliers who are our Monozukuri (engineering, manufacturing and marketing) partners. • Participants consisted of a total of approximately 630 members, including 88 companies from 13 countries, 133 companies in Japan, and executives and employees of Yamaha Motor and its subsidiaries.• Explanations of our Long-Term Vision were provided at Monozukuri workshops and conferences.• Business operations were introduced and awards of excellence were presented to business partners.Theoretical-value-based procurementThe basic principle of TVP (theoretical-value-based production) is thinking about what is the absolute theoretical best that can be achieved. It’s very much a part of manufacturing operations, but I think you can apply it to logistics, design, energy usage, even for process design. Reducing loss is part of the activity, yes, but loss alone is kind of an isolated focus. TVP is more about total optimization—the absolute best. Over the last five years, we’ve had improvement activities inside the company as well as with our suppliers in the United States, and this year we’ve identified twelve of our core suppliers that we will teach TVP to. We will work with them to help teach them and make improvements.I think the end goal is showing how the TVP mindset and understanding can be applied to any part of the company. Not just having Manufacturing doing it globally, but how do we do it with facets of product design, quality assurance, quality design, etc.MANAGEMENT INTERVIEWMichael (Mike) ChrzanowskiPresident of YMMC**YMMC: Yamaha Motor Manufacturing Corporation of AmericaNumber of companies implementing theoretical-value-based production2012542011442010302009132013672014862015146201618320172512018322JapanOverseasYamaha Motor Co., Ltd. Integrated Report 201849

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