Omron 2014 Annual Report Download - page 16

Special Feature 1
Nigel Blakeway
OMRON MANAGEMENT
CENTER OF AMERICA, INC.
Headquartered in Hoffman Estates, a northwestern
suburb of Chicago, in the U.S. state of Illinois,
OMRON MANAGEMENT CENTER OF AMERICA,
INC. (OMCA), manages Omron’s operations in the
Americas. The company’s jurisdiction encompasses
Canada, United States, Mexico, Brazil, and the rest
of Latin America. This region is massive in terms of
scale, and its sales are expected to amount to
approximately ¥110.0 billion (US$1.1 billion) in fiscal
2014, roughly 15% of Omron’s projected net sales
for this year. OMCA supports Omron’s businesses
in the Americas, helping to maximize their results,
particularly with regard to advancing VG2020, the
long-term management strategy. In particular,
support is offered for this crucial region through
due diligence and by providing legal, financial, tax,
and human resources services.
OMCA Chairman, President and CEO Blakeway
is committed to helping OMCA play a central role
in linking businesses and divisions through
Omron’s global vertical-horizontal management
system, primarily in the Americas but also in other
parts of the world.
Global Vertical-Horizontal Management
OMCA Plays a Central Role in Linking Business
Mexico’s automobile industry is booming, with
growth rates as high as 10% per annum. As a
result, Mexico is now ranked the world’s No. 8
in automobile production. At present, more than
1,000 automotive component manufacturers
have set up operations in the country, and this
number is expected to grow. Omron is aggres-
sively developing operations in this growth
market. In February 2012, we established our
Mexican manufacturing company, Components
Electronics OEDS De Mexico (OEDS). Going
forward, OEDS will be positioned as a central
base for automobile operations due to its close
proximity to automotive markets in the Ameri-
cas and Europe and to Mexico’s beneficial free-
trade agreements.
The establishment of the OEDS plant was
a miraculous feat. While building such a plant
would normally require 12-to-18 months, custom-
er demand necessitated that this plant be finished
in only 6 months. This nearly impossible task was
surmounted by a committed project team and
their unwavering sense of determination.
In
2010, the Automotive Electronic Compo-
nents Business (AEC) was spun off from Omron
and it is now practicing autonomous manage-
ment through a vertical link in Omron’s global
vertical-horizontal management system. None-
theless, corporate headquarters functions are
providing ever-more extensive support to boost
AEC’s operational efficiency. In establishing the
OEDS plant, for example, OMCA provided its
assistance through a horizontal link. Specifically,
OMCA smoothed contracting with local compa-
ny, supported local financing efforts, and provid-
ed other legal and financial assistance.
Even after the plant’s production line started
up, OMCA continued to offer support, helping
communicate the Omron Principles and other-
wise linking the Group together. Also, outside
of Mexico, vertical and horizontal links are
maintained throughout AEC to realize ongoing
improvements in efficiency.
One example of such links can be seen in OMCA’s support for setting up a new factory in
Mexico. To aid this effort, OMCA provided its expertise with regard to trade issues, customs
rules, and difficult regulatory matters.
Support for the Launch of AEC’s Mexican Factory
Assistance through Horizontal Links
Special Feature1Global Vertical-Horizontal Management
Mexican manufacturing company established in February 2012
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