Mitsubishi 2003 Annual Report Download - page 13

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11 MITSUBISHI MOTORS CORPORATION
11 MITSUBISHI MOTORS CORPORATION
Our philosophy is that the models that are adapted for sale in a particular market should be developed and manufac-
tured locally. This idea is based on the fact that the types of cars that consumers want differ significantly by region, and
even by country. In order to reflect these varied needs, we feel that the best approach is to keep marketing, develop-
ment and production as localized as possible. For example, most of the new models that we plan to sell in North America
over the next few years will be manufactured there.
PLEASE TELL US MORE ABOUT THE CFC (CUSTOMER FREE CHOICE) CONCEPT ADOPTED AT MMC WITH THE
INTRODUCTION OF THE NEW MODELS COLT AND GRANDIS IN JAPAN.
CFC is a new system that is designed to respond more precisely to each customer requirement. In this new system, the
customer is given a free choice with all the variable vehicle features. This way, the finished car comes with only those
features and specifications that the customer wants. Elimination of unnecessary features also makes it easier for us to
supply a vehicle at a price that the customer appreciates. The key implication of this system from the manufacturing
perspective is that we now plan production of a vehicle only after we have received a customer order for it. It is effec-
tively a build-to-order system. We plan to extend the scope of the CFC system gradually as new models are launched.
Since we are now front-loading the entire vehicle development process, which builds into the process sufficient time to
make adjustments before mass production begins, the shift to CFC does not involve any major manufacturing changes
in terms of major line revisions, and so on.
The precise pattern of each customer’s single-option requirements for each vehicle is transmitted to our produc-
tion-signaling set-up using an online system that updates in real time, which means that we can respond rapidly to
extremely precise customer requirements. We are also building into the system highly sophisticated capabilities, such
as online assessment of production line speed or individual specification checks performed on the line. Basically, we will
be able to follow the creation of an individually tailored vehicle through the manufacturing process. This means that we
can produce the exact vehicle that the customer wants every time.
The establishment of common production processes at all MMC manufacturing plants worldwide is designed to yield substantial
benefits in terms of quality improvement and cost minimization.