Omron 2002 Annual Report Download - page 8

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6 Omron Corporation
A Dynamic Commitment to Structural Transformation,
Globalization and Unique Value
Q: PLEASE COVER THESE MEASURES IN GREATER DETAIL.
A: VIC21 will work to implement structural reforms in six areas: business
structure reform, manufacturing structure reform, purchasing process reform,
management productivity reform, Group head office structure reform, and
asset structure reform. There are other measures that are related or under
negotiation that would be premature to discuss at this point, but they will be
in keeping with the specific structural reforms we have discussed.
Group Head
Office Structure
Reform
Business
Structure
Reform
Optimize business strength through
1: selection & focus, 2: review of business processes,
 3: switching to optimal business units
 
Examples of initiatives:
● Withdraw from low profit/unprofitable businesses
● Social Systems Business Company: Divide and restructure
● Creative Service Company: Assess business independence
  and review business strategy units
Create an optimum global manufacturing network
 
Examples of initiatives:
● Strengthen overseas production, mainly in China
● Reduce Group production capacity in Japan and convert functions
  of manufacturing divisions
Pursue best prices by expanding centralized purchasing areas
 
Examples of initiatives:
● Expand centralized purchasing areas
● Strengthen purchasing and procurement in China
Improve human productivity to succeed in global competition
 
Examples of initiatives:
● Impartial evaluation and compensation based on duties and performance
● Right-size the organization at the managerial level
Create a head office that represents and oversees the Omron Group
to prepare for holding company structure
 
Examples of initiatives:
● Create organizational groups and examine/sharpen focus
  on necessary functions
Reduce total assets, reallocate resources, reduce asset maintenance costs
 
Examples of initiatives:
● Sell idle and underutilized assets
● Sell closed or transferred facilities
Manufacturing
Structure
Reform
Purchasing
Process
Reform
Management
Productivity
Reform
Asset
Structure
Reform
STRUCTURAL REFORM OBJECTIVES