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Victor Company of Japan, Limited
8Annual Report 2003
Victor Company of Japan, Limited
Initiative One:
Reengineer Our Business Structure—We implemented a range of reforms
in the past year to reorganize our operating bases, reform our employment
structure, and improve core elements of our day-to-day operations by
rebuilding our manufacturing, purchasing, retailing and logistics
frameworks. This has resulted in a leaner and more flexible operating
structure capable of responding rapidly to changes in our environment.
This new stance also allows us to quickly cover resource deficiencies, an
unavoidable issue for a company our size. Another advantage is our ability
to maintain a suitable inventory level while retaining the flexibility to
raise output during periods of high demand. We accomplished this by
leveraging our network of global procurement partners to create an optimal
manufacturing framework. In short, we can now more accurately time
the development and launch of products to satisfy projected demand.
The benefits of reengineering our business structure are already clear—
in fiscal 2003 we saw real success in increasing cash flows. Reducing
lead-times generated additional cash, based on a more efficient 6-month
manufacturing cycle, and further reductions in inventories.
08 Annual Report 2003