Yamaha Motor Integrated Report 2022

Launch of Global Management Competitiveness from Theoretical-Value-Based Production and Manufacturing DX Technology—New Value Creation Generated On-Site From Smart Factory to Value Innovation FactoryThe logic behind Yamaha Motor’s approach to Monozukuri is that it is not enough to solely focus on reducing costs and move forward; excessively pursuing cost reductions should not compromise our goal to deliver satisfaction exceeding customer expectations. Meanwhile, in order to focus resources on the Yamaha Motor Craftsmanship theme that conveys our Monozukuri commitment to our customers, we will thoroughly engage in reducing processes that do not lead to customer value. Theoretical-value-based produc-tion is the method for classifying processes with and without value and applying that thinking to production operations. This is the foundation of what the manufacturing departments do. While the terms “Smart Factory” and “manufacturing DX” are heard more frequently recently, we have been enhancing our theoretical-value-based production approach through digital meth-ods since 2019. These initiatives enhance technological capabilities to enable a flexible response to on-site environments and targets through classification of the four manufacturing DX—automated transportation, automated inspection, automated operations, and surveillance of conditions and traceability (hereinafter, the four key technologies)—and internalization of development.*1 Demand chain innovation: An initiative aiming to maximize sales by adapting production to changes in the market while maintaining appropriate inventory levels*2 Value innovation factory: Creation of new value that combines theoretical-value-based thinking and DX Under the Global Manufacturing Committee (GMC) launched in 2020, improvements have been made to the Monozukuri Conference and global promotion of activities for DCI,*1 VIF,*2 and carbon neutrality. In 2021, we formulated a medium-term plan for manufactur-ing from global discussions initiated by the GMC and rolled it out to manufacturing plants around the world at the Monozukuri Conference. Based on experience from the following activities, we hope to shift from the previous Japan-focused management of manufacturing divisions to global management helmed by the GMC in 2022. The activities include inviting manufacturing leaders from each region to join the GMC; expanding the system to allow for management decision-making on a regional level; developing policies at the Monozukuri Conference; developing methods and measures at technology and theme meetings; sharing progress, results, and issues at regional meetings; and cycling through the individual result reports from management reviews and factory visits. Additionally, we will promote human resource development of leadership focused on continuous management of GMC teams. With even greater integration of the global Group, we will make this once-in-a-century period of significant change one of opportu-nity, aiming for further development while contributing to the enhancement of the trust, satisfaction, and loyalty of our customers around the world.Utilization of digital technology at manufacturing sites This internalization contributes significantly to the DX of human resource development at manufacturing sites. Specifically, we have decided on digital methods to achieve targets formulated through theoretical-value-based production activities and created many new value processes, such as the following two that cannot be seen at other companies when combined with our on-site experience:1. Reduce defects in casting through real-time monitoring of quality2. Introduce low-cost, general-purpose, custom combination AGVs We will pursue customer value by adding on-site theoretical-value-based thinking to the smart factory approach, which is newly defined as the value innovation factory (VIF) and is for creating new value through on-site guidance.Teddy Cahyadi YacobDirector, PT. Yamaha Indonesia Motor Manufacturing (YIMM)57Message from Management

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