Integrated Report 2021(For the year ended December 31, 2020)

Yamaha Motor Smart Factory Initiatives Applying our Yamaha Motor Craftsmanship to Monozukuri opera-tions at our manufacturing and production sites is essential to giving added value to products for our customers. At the same time, the digitalization of manufacturing processes is crucial to raising the quality of each and every product and for generating value in an efficient manner. Data can be used to drive improve-ments, but we believe deciphering the important messages hidden within it requires real experience on the factory floor and theoretical-value-based thinking.At Yamaha Motor’s smart factories, people are the key players in a process of utilizing data and experience gained on the floor to guide theoretical-value-based activities. The Company defines a “smart factory” as a system that links and unifies data on people, equipment, and products and information in manufacturing, markets, and engineering and which visualizes disparities and fluctuations between theoretical value and effective value in real time. The system is utilized to have worksites apply theoretical-value-based thinking to address resolvable issues and to improve the value provided to customers as well as important manage-ment indicators through theoretical-value-based activities.Case StudiesLaunch of Three GET Manufacturing ProjectsThe manufacturing arm of the Global Execution Transformation (GET) team was estab-lished in fiscal 2020 and has launched three projects: 1) the evolution of the Monozukuri Conference, 2) global manufacturing human resource development, and 3) the galvaniza-tion of key themes such as demand chain innovation (DCI),*1 theoretical-value-based production (TVP),*2 and the Smart Factory. In the team’s first year in fiscal 2020, we focused on making improvements to the Monozukuri Conference and setting up the Global Manufacturing Committee to take the lead with our DCI and TVP efforts. The Monozukuri Conference was held online last year with over 1,000 employees participat-ing, demonstrating to us firsthand that this was an effective method to share meaningful information. In addition to these activities, in fiscal 2021 we are formulating plans that tie into global manufacturing human resource development and are bolstering measures for reducing Scope 1 and Scope 2 emissions globally toward achieving carbon neutrality.*1 An initiative aiming to maximize sales by adapting production to changes in the market while maintaining appropriate inventory levels *2 An initiative to be carried out at all times with the participation of all employees that defines essential functions from the perspective of customer value as theoretical value on the Monozukuri front lines to minimize the gap between the current state of production and theoretical valueMessage from ManagementMichael ChrzanowskiDeputy Executive Officer, Chairman, Yamaha Motor Manufacturing Corporation of America (YMMC)1 Linking of Individual Components and Their Manufacturing Conditions to Augment Overall Condition Management for Creating Quality ProductsThe technological development, systems engineering, and installa-tion work required for successful manufacturing are all performed in-house to ensure versatility to adapt to diversifying worksite environments and objec-tives. Moreover, enhancing our in-house technical capabilities also serves to strengthen the ties between the New Venture Business Development & R&D Strategy Section and investees.2 Collaborative Work between People and RobotsYamaha Motor is building factory environments in which employ-ees work alongside collaborative robots in work areas, so that simple tasks are entrusted to these “cobots” while people are able to focus on value-adding processes that add to customer satisfaction. As we automate work processes, we aim to raise quality as well as reduce manufacturing costs by carefully delineating what tasks can be performed instead by robots and work requiring human eyes and hands for Yamaha Motor Craftsmanship.Successes like the above will be deployed in Japan and overseas in the future to bring high-quality, cost-competitive Monozukuri to our facilities worldwide.45Yamaha Motor Co., Ltd. Integrated Report 2021

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