Strengthening production-floor competitiveness through KPI metrics and cost reductions

「The Group has pursued sales expansion initiatives as a unified organization, including strengthening its business structure to withstand fluctuations in sales, improving productivity through rationalization and other measures, and expanding sales by strengthening product capabilities. It has also sought to establish a strong foundation for its production operations and create manufacturing operations capable of responding to change by strengthening shop-floor competitiveness through KPI metrics and pursuing cost-reduction initiatives.」

「We made maximum efforts to improve earnings through the pass-through of rising labor costs into selling prices and rationalization improvements at a record-high level」

「Rationalization and improvement at a record-high level, centered on improving the earnings structure through increased sales of high-value-added products such as new stabilizers incorporating new technology, and reducing direct material costs through improved global sourcing and the expanded internalization of outsourced processing technologies」

「During the consolidated fiscal year, the company pursued its activities around three major pillars: strengthening competitiveness, global expansion, and strengthening its management foundation. To strengthen competitiveness, all functions worked together on sales expansion initiatives, including strengthening the business structure to withstand fluctuations in sales, improving productivity through rationalization and other measures, and expanding sales by strengthening product capabilities. The company also sought to establish a strong foundation for its production operations and create manufacturing operations capable of responding to change by strengthening shop-floor competitiveness through KPI metrics and pursuing cost-reduction initiatives.」

「The company has implemented cost-reduction measures exceeding conventional improvement levels, including improved global sourcing to reduce direct material costs, engineering procurement initiatives carried out jointly with suppliers, and expanded capital investment in cold-forming technology that enables spring products to be processed and manufactured using lower-temperature, more compact equipment as part of its response to the SDGs and carbon neutrality. It has also improved productivity by introducing a labor-hours management and analysis system for indirect personnel as part of its work-style reforms, and the results are beginning to emerge.」

「In addition, through KPIs, cost reduction initiatives and other measures to strengthen shop-floor competitiveness, we have worked to establish a strong foundation at our production sites and develop manufacturing capabilities that can respond to change.」

「In addition to improving profitability by beginning mass production of the new SDM stabilizer equipped with new technology, we offset the impact of inflation through cost reductions beyond existing approaches, including strengthened improvements in global direct-material procurement, and revisions to selling prices for customers.」

「As rationalization improvements, we challenged activities beyond conventional frameworks, including globally promoting initiatives to reduce costs together with suppliers by supporting process improvements at suppliers in direct-material procurement, rather than simply comparing costs.」

「Profit growth was achieved as growth in production volumes at major customers, global rationalization improvements including a return to profitability in North America, and the partial pass-through into selling prices of higher utilities and fuel costs incurred in the previous year exceeded the impact of inflation.」

「As initiatives to strengthen competitiveness, all functions have worked together on sales expansion by strengthening the business foundation to withstand fluctuations in sales, improving productivity through rationalization and other improvements, and expanding sales by strengthening product capabilities. In addition, through KPIs, cost reduction initiatives and other measures to strengthen shop-floor competitiveness, we have worked to establish a strong foundation at our production sites and develop manufacturing capabilities that can respond to change.」

「For raw-material purchases, we are promoting global lowest-cost sourcing activities, developing new suppliers in India, China and elsewhere, and preparing for cost reductions beyond those achievable through existing approaches.」

「As rationalization improvements that set a new record, the group worked to improve profitability by promoting a shift in the North American business structure from cables to the higher-margin chassis spring business; procuring direct materials from the globally lowest-cost regions; reducing purchased-component costs together with suppliers; strengthening reductions in labor and operating costs through manufacturing-site improvements, a company strength; improving logistics efficiency; and pursuing total-cost reductions across all expense categories.」

「From the third quarter onward, in addition to recovering production volumes, we aim to achieve our full-year targets by further advancing rationalization improvements through company-wide participation, including improvements in direct material and purchased-component costs, which are at record-high levels, all processing costs, particularly labor costs, and all fixed costs. We are also taking into account the situation in which final decisions on passing through the overall inflationary impact of steel and logistics costs, materials, utilities and fuel costs, and other expenses into selling prices to major customers will be made in concentrated fashion in the second half of the fiscal year, and aim to achieve our full-year targets through profit generation in the second half.」

「In addition, through KPIs, cost reduction initiatives and other measures to strengthen shop-floor competitiveness, we have worked to establish a strong foundation at our production sites and develop manufacturing capabilities that can respond to change.」

「As rationalization improvements, we have pursued company-wide total-cost improvement activities, including improvements in labor and operating costs through productivity gains, an area of strength for us, converting fixed costs into variable costs, and improving raw materials. We are also working to build a strong management foundation that can maintain and improve the break-even structure without being affected by the external environment.」

「Operating profit increased from the same quarter of the previous year as a result of higher sales and rationalization improvements. However, the increase was limited by unplanned cost increases, including soaring steel and logistics costs.」

「By reducing labor and operating costs through productivity improvements, reducing raw material costs through lower scrap volumes, converting fixed costs to variable costs, and pursuing other total cost reduction initiatives undertaken across the Group to turn challenges into opportunities, cumulative consolidated profit for the quarter turned positive.」

「Through KPIs, cost reduction initiatives and other measures, we have worked to establish a strong foundation at our production sites and develop manufacturing capabilities that can respond to change.」

「Through KPIs, cost reduction initiatives and other measures, we have worked to establish a strong foundation at our production sites and develop manufacturing capabilities that can respond to change.」

「Through KPIs, cost reduction initiatives and other measures, we have worked to establish a strong foundation at our production sites and develop manufacturing capabilities that can respond to change.」