Yamaha President outlines bold plans

Changes to Monozukuri* & Changes to the Way We Work The “Revs your Heart” concept for all  - * engineering, manufacturing and marketing

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President Yanagi gave a presentation on “The growing world of personal mobility” at the Tokyo Motor Show

2014 is the second year in the current Yamaha Medium-term Management Plan in which the aim is to further strengthen the foundations where opportunities lie for sustainable growth. The following is Yamaha President Yanagi’s message for the up-coming year.

Changes to the company

In 2014, as was covered in the “New Year’s Greeting Speech” at the New Year’s Opening Ceremony, we will work towards profitability in all segments, as well as reviewing and strengthening the business strategies for each market. We will also continue “Pursuing the unique style of Yamaha” and “Breaking out of Our Current Norms” with a particular focus on the aspects of “Changes to Monozukuri” and “Changes to the Way We Work”.

Changes to Monozukuri

The unique style of Yamaha lies in pursuit of three elements: generating innovative concepts, realization of superior technology, and achieving designs that epitomizes refined dynamism.

This year, we will launch a range of products into the markets at each business sector that work to combine our two aims: high-quality manufacturing that is uniquely Yamaha and innovative manufacturing that breaks out of our current work norms in the aspects of planning and development concepts, design specs, environmental technology, and cost.

Changes to the Way We Work

This year, in the second year of our Medium-term Management Plan, I wish to look at the following six viewpoints as we take up the challenge of “Changing the Way We Work”.

• Cutting the time it takes between product development and production start

Breaking out of our current work norms in order to cut the time it takes between product development and production start.

The speed and precision required for the time it takes between product development and production start can determine the competitiveness of the company. All work should be carried out under the sense of Urgency, and Timeliness, with Minimization, and Economization”. In order to make this a reality, processes and systems will need to be reformed.

Last year we brought forward production start dates for factories worldwide, through breaking out of our current norms. I would like to see this become the new standard from now on.

In the next two years, we intend to set a new time frame for this of less than 18 months.

• Changes to development grounded in regions and locales

Yamaha Motor is to handle advanced technology research and basic platform development, while product development is to be carried out locally responding to market requirements. I want to construct this type of system as soon as possible.

Progress has already been made at the ASEAN Integrated Development Center where the focus has been on flexible and responsive product development, and at the India Integrated Development Center with designs that meet local quality standards. This type of movement continues to increase. In two years’ time I wish to see over 30% of our products developed overseas.

• Regions and locales participating even more broadly in procurement and manufacturing

Regionalization and localization of procurement and manufacturing continues to progress.

This year, advances in new overseas business and overseas factory establishment, including the boat business and new factory construction in China, the motorcycle business and new factory construction in Pakistan, and the construction of new factories in India and Argentina continue to progress.

As well as the increased technological capacity at each region, we envisage a future in two years’ time that is characterized by an optimum manufacturing structure for the overall Yamaha group.

• Opening up the region and sites to tailored sales operations

Worldwide, we are focused on broadening national markets and the regions within them. In these regions, our work is aimed at increasing contact with customers, and therefore increasing our customer bases.

Much opportunity still remains in these markets and regional areas. In realizing this potential, it is important for us to continue to work in creating strong customer relationships in ways that are both suited and tightly linked with these regions.

Two years’ on, we envisage our workplaces around the globe as places staffed with people who can say with pride “I went to these lengths for the customer”.

• Speed of service for the customer

In further increasing the speed of service for the customer, with “Time Commitment Service” as its nucleus, we will strengthen the driving force behind the 3S’s (Sales, Service, and Spare-Parts).

The longest period of time for customer contact is after purchase. Raising satisfaction levels here can encourage a sense of affinity from the customer such as “I’m glad I chose Yamaha”; and “I’d choose Yamaha again”.

We have a vision through improvement of the 3S’s that in two years’ time, Yamaha’s “Time Commitment Service” will be rated highly worldwide.

• Human resource development, the backbone of a company’s business

Through the addition of conventional human resource training programs, we are working toward creating marketing training for the entire company, global human resources systems, and global evaluation standards. We believe in human resource development that encourages people to meet challenges, make extra effort, and produce results, while at the same time valuing all cultural backgrounds, fields of strength, and specialist abilities.

Human resource development is the backbone of a company’s business. We envisage a future two years’ on where staff who personify the Yamaha brand are active in a range of fields all over the world, contributing to sustained growth and making optimum decisions overall.

The growing world of personal mobility

Part of the work flow described here has already started, with the progression of new model releases including motorcycles, marine, and ROV’s. I would now like to introduce some of the models that fit into “The growing world of personal mobility” sector that we had on display at last year’s Tokyo Motor Show.

PES1 / PED1
From our advanced development of small compact sports models that offer new value comes “EV Sports”. Not a concept model, but scheduled to be realized in two years’ time. With its silent acceleration and hi-speed feel, this model is designed for even conventional motorcycle users to enjoy a “new sense of riding”. In addition, this model has had new innovations in silent instruments, along with progress in projects for new designs.
In 2014, the world of mobility will grow further in EV in Taiwan as it moves from scooters into sports models.

YPJ-01
This is a concept model in Power Assisted System (PAS) bicycles which combine the smallest & lightest drive unit and a battery in its class, coupled with a sporty, yet beautiful body. This model has been created with the next 20 years in mind using key words such as stylish, ecology, health, and enjoyment applied to both the unit itself and its operating system. As well as offering exciting riding, this model enhances riding enjoyment with service functionality of the bicycles information linked to applications via smartphone.

MT-07
Sharing in the realm of the MT (Master of Torque) is this new generation entry sports model which follows the success of the “MT-09″.
This model was developed so that even inexperienced riders can appreciate and enjoy the thrill of riding. As with the three-cylinder engine in the “MT-09″, this two-cylinder engine has been developed with a range of variations as its core engine for sports model platforms in the future.

R25
If the Master of Torque domain of the “MT-09″ and the “MT-07″ are Entry Sports options, then the other option for MC is the world of Super Sports. The “R25″ is a 250cc model that enables you to enjoy the sports feeling in everyday riding by bringing you the Super Sports domain image dominated by the “YZR-M1″ and the “YZF-R1″.
This model will be officially launched as a global model in 2014. “The unique style of Yamaha” will be offered here as a top sports model with supreme capacity in Asia, and as an entry sports model in developed markets.

TRICITY　Concept
A new type of mobility that fuses conventional “Two-wheel values” with a sporty, yet stable riding feel designed for a “new type of enjoyment”. This model is outfitted with an automatic 125cc engine onto a compact, overwhelmingly lightweight body. The Leaning Multi Wheel, with its front two-wheeled system, provides a sense of stability on rough surfaces, paved roads, in side winds, and during U-turns.
As a new standard in city commuting, and as one solution for traffic congestion issues, this model is not just for two-wheeled motorcycle riders, it can also be used in a wider variety of scenes for users without any two-wheel riding experience.
As with the “R25″, this model will be officially launched as a global model in 2014.

MOTIV
This concept evolved out of a two-wheel, three-wheel, four ?wheel, and multi-wheel process. Utilizing our engine technologies developed for motorcycles, we have produced a car that brings a driving pleasure with enjoyment and nimbleness through a sense of synergy between the driver and machine, and a personalized vehicle designed for city life.
Along with its lightweight yet rigid, strong body realized by its chassis, a degree of freeness and diversity has also been achieved in its design.
By realizing the concept of “MOTIV for Inspired Driving”, this model has been developed in order for our customers around the world to experience it.

These “changes to Monozukuri” and “changes to the Way We Work”, in 2014 will link into the “changes to the company” from 2015 onward.

Of course the major players in these changes are everyone here today. How about doing the kind of work that Revs your Heart – and has the same effect on us all as individuals, us as an organization, and on the customers and people around us.