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Annual Report 2005
20
MITSUBISHI MOTORS CORPORATION
Production
Enhance Plant Utilization
MMC is making ceaseless efforts to improve production
efficiency, a key requirement for achieving the goals of its
revitalization plan.
In Japan, a substantial drop in domestic sales volume
in fiscal 2004 triggered a major decline in capacity
utilization at the Mizushima and Okazaki plants, and at
Pajero Manufacturing Co., Ltd. (PMC).
From fiscal 2005, however, an increase in plant
utilization is planned due to increased volumes from the
launch of
Outlander
and
i
, and due to strategic business
alliances with Nissan Motors Co., Ltd. and PSA Peugeot
Citroën of France for OEM supply of vehicles such as
minicars and SUVs.
Quality Improvement Is Essential for Productivity
Improvement
At Mitsubishi Motors, we believe that to improve quality it
is absolutely essential to improve productivity. Improved
quality in each development and production process leads
to smoother production line flow and higher production
output. Based on this belief, MMC is currently implement-
ing the ISQC (In Stage Quality Creation) program. This
program involves far-reaching quality management
initiatives targeting each and every process on the produc-
tion line aimed at enhancing productivity by preventing
Establishing a Unique Production System
MMC is working to raise production efficiency by restructuring production facility
capacity, reviewing logistics procedures, and through OEM supply based on
business alliances. But most important by far is enhancing productivity through
enhanced quality. Improvements in the FTC rate are being made through careful
quality management beginning in the development stage. The goal is to establish a
unique production system with quality and production efficiency that surpasses
that of peer companies.
Makoto Maeda
Managing Director
In Charge of the Production Group Headquarters
inefficiencies and mistakes at the production site. As part
of these efforts, MMC is working to improve the FTC (first
time capability) rate, which has been positioned as a key
benchmark. This rate is the percentage of finished vehicles
assembled without being removed from production lines
due to defects, and improves in step with quality enhance-
ments. When this rate is sufficiently high, just-in-time
component procurement based on detailed production
plans becomes possible, making planned-sequential-
production, which can achieve the best combination of
production and logistics, a reality.
Giving quality enhancements of this kind the highest
priority, MMC decided to temporarily postpone the transfer
of production of models from the Okazaki plant to the
Mizushima and PMC plants, which had been announced
as part of the Business Revitalization Plan in May 2004.
With the Mizushima Plant poised to enter peak production
as the assembly of new models begins in the second half
of 2005, we determined that rather than transferring
production duties at this time, the best course of action is
to avoid placing an undue burden on the site.
Even at production sites, the greatest emphasis is on
delivering high-quality products to our customers, and
enacting measures to enhance productivity.