Yamaha Motor Integrated Report 2020

44201030200913201267201154201414620138620162512015185201820194162017338“Theoretical-Value-Based Procurement” and the Supply Chain Monozukuri Procurement That Incorporates Our Partners“Theoretical-value-based procurement” is an initiative unique to the Company underway in collaboration with its business partners.This approach—implemented with our partners—extends to procurement the theoretical-value-based production approach applied to our manufacturing and production processes, i.e., first drawing up an ideal vision and then conducting improvement activities striving to achieve high-quality output. With theoretical-value-based procurement, we share issues we are facing with the top management of our partners and emphasize putting dialogue and goal consensus at the forefront in order to uncover the key points for contributing to improved procurement management.To promote these activities, we train “theoretical-value instruc-tors” and dispatch them to suppliers. In addition to improving production processes, the target area for theoretical-value-based procurement extends to reducing energy use, trimming inventory, enhancing quality, and more. Going beyond simply procuring the parts and components required per product blueprints, we work with our partners to create the best possible products in terms of materials and manufacturing as well.As of 2019, 416 suppliers have adopted our theoretical-value-based production approach, and we are creating a robust procure-ment network.Cultivating Teamwork through Horizontal DeploymentThe Company holds an annual Global Suppliers Conference gath-ering together our major business partners and suppliers from around the world, and some 600 people attended the seventh event in 2019, with attendees hailing from 135 companies in Japan, 92 companies in 13 other countries in addition to Company executives, employees, and subsidiaries. In addition to sharing our vision and introducing initiatives at this event, we present awards to outstanding partners in each business, share examples of successful deployments of theoretical-value-based procurement, and display new products. The conference not only helps participants get to know Yamaha but also helps grow the number of Yamaha fans and enhance the brand.Building Information Networks to Support the CompanyBuilding strong teamwork with our business partners facilitates a more attuned response to risks. To be able to quickly collect infor-mation on damage affecting our supply chain stemming from natural disasters like earthquakes, floods, and typhoons, we have established a framework with our partners for checking the supply chain not only with our primary suppliers in Japan, but also one that extends to secondary and tertiary business partners as well as those further upstream. Even amid the chaos seen with global supply chains due to COVID-19, the ability to quickly gauge the status of operations of our suppliers together with individual reports greatly aided in making swift management decisions.To deliver our unique, high-performance, high-quality products throughout the world, procuring a diverse variety of quality parts and materials with a global perspective becomes crucial. By proactively communicating with our suppliers and business partners, we develop trusting relationships and the strong teamwork we build in this way leads to the Yamaha Monozukuri that creates Kando.Global Implementation of Theoretical-Value-Based Production(No. of companies)We asked Indian automotive parts manufacturer Fiem Industries Ltd. (FIEM) to produce our ultra-compact LED headlight created with an emphasis on cost and quality, and based on our theoretical-value-based production approach. Adopted on the 2019 MT-03 model, it greatly raised its product appeal, and for their work FIEM received the Excellence in Technology and Development award at the 2019 Global Suppliers Conference. Overseas JapanProcurementFoundations for Creating Competitiveness40Yamaha Motor Co., Ltd. Integrated Report 2020

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