Mitsubishi 2006 Annual Report Download - page 38

36 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006
For achieving the goals of the Mitsubishi Motors
Revitalization Plan, MMC views improving produc-
tivity through stringent quality management and
raising capacity utilization through optimal use of
its global production system as two of the highest
priorities. Production departments are therefore
making every effort to achieve continuous improve-
ments in these areas.
Excellent Progress With ISQC
MMC recognizes that building quality into each pro-
duction process is essential to improving productiv-
ity. The company therefore is implementing In Stage
Quality Creation (ISQC)*1 at all plants. In fiscal year
2005, these activities generated solid results, with
the first time capability (FTC)*2 rate averaging more
than 95% at all domestic plants. MMC believes that
a better FTC rate can contribute substantially to
income because it makes just-in-time parts procure-
ment based on detailed production plans feasible.
This leads to reductions in logistics costs associated
with component shipments from business partners
and from within the company.
MMC has also made strides in developing trace-
ability systems for tracking component quality. This
enables identification of vehicles with potentially
faulty components down to their production date,
time, and line, within a few hours of finding a defect
in any one of roughly 300 safety-critical key compo-
nents. MMC plans to reinforce cooperation with busi-
ness partners to expand the range of components
covered by such traceability systems.
Promoting Optimal Use of the Global
Production Network
In Japan, MMC expects planned production volume
to continue to exceed capacity at the Mizushima Plant
throughout fiscal year 2006 due to strong demand
for minicar models and export models, along with
projections of continued export-led sales growth. To
resolve the capacity issue, MMC has opted to reverse
the decision originally contained in the Mitsubishi
Motors Revitalization Plan to stop mass production
at the Okazaki Plant. This decision was made based
on a comprehensive review of options for avoiding
missed sales opportunities at minimal cost, achiev-
ing the shortest possible launch lead times, and en-
suring the quality of components procured from
business partners. Production of
Outlander will be
partially transferred from the Mizushima Plant to the
Okazaki Plant, and operations at the Okazaki Plant
will move from one to two-shift production.
MMC subsidiary Pajero Manufacturing Co., Ltd.
(PMC) will also resume two-shift production from
the second half of fiscal year 2006 with the planned
launch of the new
Pajero (Montero) and Delica models
this fiscal year. MMC’s production departments are
working in close cooperation with other divisions to
put in place a system for meeting higher demands
stemming from these new models. These efforts are
crucial to fulfilling the company’s responsibility to
deliver high-quality vehicles to valued customers.
Overseas, MMC will strive to boost capacity utili-
zation by adjusting production levels at plants with
excess capacity while raising output through model
shipments to new markets where appropriate.
Production
Managing Director
In Charge of Production Group
Headquarters
Makoto Maeda