Toyota 2005 Annual Report Download - page 34

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05.
32 >Positioned for the Future
We are approaching cost reduction activities from a new angle in a
bid to offer customers around the world better, more affordable cars.
COST REDUCTION ACTIVITIES
beyond CCC21’s item-based cost
innovation to focus on systems-
based innovation. Adopting a revo-
lutionary approach to designing,
we will aim for comprehensive,
breakthrough cost reductions by
treating associated parts as inte-
grated systems.
Accelerating Cost Reduction
Efforts Based on Mutual Trust
A feature of Toyota’s cost reduc-
tion activities is that rather than
focusing purely on price reduc-
tions, they initiate a chain of manu-
facturing innovation that reaches
all the way back to the design and
development stages. As a result,
such initiatives involve collabora-
tion among suppliers and a wide
range of the Company’s divisions,
Shifting from Item-Based to
Systems-Based Innovation
Toyota has achieved outstanding
results by working in partnership
with component manufacturers
and other suppliers to advance the
CCC21 (Construction of Cost
Competitiveness for the 21st
Century) all-round cost reduction
activity since 2000. Thanks to
those efforts, we have seen annual
cost savings of about ¥200 billion,
peaking at almost ¥300 billion in
fiscal 2003. Building on that proven
track record, Toyota began the
VI (Value Innovation) activity in
April 2005.
As with its predecessor, the new
project will require close coordi-
nation with suppliers. However,
the new project will go one step
Toyota has grown market support through
unflagging cost reduction efforts focused on all of
its models, including Toyota’s signature global
car: the Corolla. Our quest to make better
products less expensively goes on.
株主
CCC21 activity
VI activity
Manufacturing innovation that reached
component design and development stages
Shift from item-based to
systems-based manufacturing innovation
Transition in Cost Reduction Activities