Yamaha 2011 Annual Report Download - page 26

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24 Yamaha Corporation
In Japan, we are concerned about manufacturers’ production
delays and sluggish consumer spending in the wake of the
massive Great East Japan Earthquake of March 2011, and the
resulting damage to the Fukushima Daiichi Nuclear Power Plant.
We expect this catastrophe to have an impact on the fiscal 2012
forecast of the Yamaha Group.
Nevertheless, looking at the global market that makes up
our business domain, despite financial deterioration in Europe,
Germany—the largest EU market—remains strong. It will not be
easy for the United States to return to the economic conditions
that prevailed before Lehman Brothers collapsed, but the coun-
try is slowly recovering. In emerging markets, however, growth
is accelerating.
If we unite as a Group, mobilize our know-how and face
our immediate tasks, I am fully convinced that we will achieve
the goals set out in YMP125, including our target of ¥25 billion in
operating income for fiscal 2013.
What is the outlook for YMP125 in two years and after?
Q
A
process with the Kakegawa Factory’s, which began nearly four
years ago. The integration involved much more than simply
consolidating two factories at one location, rather it entailed a
reexamination of each individual manufacturing process and
the design of a highly efficient new factory. As a result, the inte-
gration should yield potential cost reduction benefits of nearly
¥1 billion per year.
Moreover, the integration is the perfect opportunity to
leverage the unique characteristics of our three-manufacturing
base structure and to share parts and components between
factories. In the past, Yamaha piano parts were manufactured in
Japan and assembled in plants in Japan, China and Indonesia.
This time, we will focus on raising overseas factory capabilities
by increasing the number of parts they manufacture in-house
and raising the percentage of parts locally procured. By fully
using parts produced in China and Indonesia in Japan, our goal
is to raise the competitiveness and profitability of the Kakegawa
Factory, while improving the competitiveness of the China and
Indonesia factories. Raising the competitive edge of these key
manufacturing bases will speed up our sales and marketing
development in China and emerging markets, and enhance the
competitiveness of all Yamaha pianos.
For wind instrument manufacturing, we will complete
the integration of the Saitama Factory with the Toyooka
Factory—originally slated for completion in fiscal 2013—one
year ahead of schedule, thereby speeding up the development
of the infrastructure needed to build a three-manufacturing
base structure.
Reorganization of Production Facilities Create three-base structure in Japan, China and Indonesia
April 2010 March 2013
Pianos
HQ/Hamamatsu Factory
(1) Shift to three-base structure completed in August 2010
(2) Production shifts overseas
Kakegawa Factory
Kakegawa Factory Hangzhou Factory (China)
Hangzhou Factory (China) YI (Indonesia)
YI (Indonesia)
Wind/Educational
instruments
Saitama Factory
(1) New Xiaoshan Factory started operation in October 2010
(2) Shift to three-base structure completed in March 2012
with closure of Saitama Factory
(3) Production shifts overseas
Toyooka Factory
Toyooka Factory
New Xiaoshan Factory (China)
Xiaoshan Factory (China) YMPI (Indonesia)
YMPI (Indonesia)