Omron 2002 Annual Report Download - page 7

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Omron Corporation 5
moved ahead to March 2004 at the latest. Naturally, we will also consider
ways to implement measures even earlier, where it is necessary and possible.
Q: SO GROUP PRODUCTIVITY IMPROVEMENT REFORMS ARE MEASURES
TO ACHIEVE THE OBJECTIVES OF GD2010?
A: Exactly. Furthermore, we formulated the VIC21 measures to ensure that
we achieve the existing target of ROE of 10 percent by March 2005. Each
Omron company has the following three initiatives:
1. Achieve a high level of profitability through selection and focus.
2. Reform the operating and manufacturing structure to create the
optimal business management structure.
3. Restructure the fixed cost and expense structure to match the
optimum business structure.
Head office structure reform will complement the efforts of each company.
Q: ASIDE FROM THE GENERAL DIRECTION OF THE GROUP PRODUCTIVITY
IMPROVEMENT REFORMS, WHAT ARE SOME SPECIFIC OBJECTIVES?
A: When drafting VIC21, we started with the following three benchmarks for
structural reform measures:
1. Reduce Group fixed and variable costs by ¥30 billion.
2. Increase the proportion of overseas manufacturing by 50 percent.
3. Withdraw from underperforming and unprofitable businesses.
The head office and each company will implement various measures
to achieve these objectives.
Grand Design 2010
ROE 10%
Create Powerful
Businesses
Changes in
Operating
Environment
Selection & Focus
Optimal Business Units
Cost Structure Reform
incl. Fixed Costs
Accelerate
GD Measures for
Quality & Speed
Group Productivity
Improvement Reforms
Group Productivity
Improvement Reforms
Re-examine every
management resource
to optimize productivity
Grand Design 2010
Win Globally
>
STRUCTURAL REFORM PRIORITIES