To achieve this goal, we will develop a necessary foundation for further increasing our profitability in the remaining two years of the medium-term management plan, and implement various reforms in FY2024.
■Production reforms through organizational restructuring
Our first focus of reform is production. Currently, the products we develop are manufactured at our factories and the production equipment used is fabricated at our head office’s Manufacturing Technology Department. Since this approach shields our manufacturing processes from the forces of competition, it has been an obstacle to the enhancement of our productivity.
We began redesigning our entire Group’s organizational structure in FY2024 to improve our established practices. One step we have taken is appointing talent who possess in-depth experience gained inside and outside our Group to manage each unit. Also, we plan to restructure our global organization, including APEM, to enable bilateral supply and technology exchanges in procurement, supply chains, and production across our Group, using an approach that strengthens each function. One possibility is to enable IDEC and APEM to share parts and jointly procure supplies, which would achieve tremendous cost savings. We will also consider expanding our range of manufacturing options to encompass not only our factories, but also external manufacturing contractors.
Through production reforms such as these, we will work to radically lower our costs and strengthen our global competitiveness.