Yamaha Streamlines Domestic Operations

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For Advanced Productivity and Efficiency
Based on'Domestic Operations Reorganization Project'which started last April, Mitsuru Umemura, president of Yamaha, recently announced 2-year strategic plans to improve efficiency of domestic sales, production, semi-conductor production businesses and promote structural change of the organization including workforces.

As domestic music and sound market has matured, the industry can not have prospects for continuous growth in the foreseeable future. The new plans are designed to streamline domestic operations to meet the changing market.

The four sales locations in Sapporo, Sendai, Nagoya and Fukuoka will be closed and consolidate overall sales organizations to Tokyo and Osaka in April 2013.

Music and sound products sales operations are separated from the headquarters and operate as independent entities. Also Yamaha Music Trading which is responsible for import and distribution businesses of music products, Yamaha Music Lease, a lease and rental division for musical instruments, Yamaha Electronics Marketing for domestic sales of AV products will be consolidated in April, 2013, and Yamaha Music Japan (tentatively named) will control all their businesses. YMJ will be located in Minato-ku, Tokyo.

As a subsidiary company of YMJ, Yamaha Music (tentatively named) will manage music and English teaching operations consolidating 8 retail locations in April 2013.

Restructuring plans also go to domestic production. As appreciation of Yen affects profit structure, Yamaha has moved production of parts and assembly lines for inexpensive products overseas in the last years. The new plan accelerates its efforts reorganizing domestic production by further reducing manufacturing cost while maintaining production technology and technical skills of the workers for mid and top product lines.

Kakegawa piano factory in Shizuoka will operate after April, 2014 as a separate entity as Yamaha Piano Manufacturing (tentatively named). Yamanashi Kogei which produces wooden piano parts will be consolidated to YPM.

Toyooka wind instrument factory in Shizuoka will also operate as an independent company, Yamaha Wind, String and Percussion Instruments Manufacturing (tentatively named) consolidating Yamaha Music Craft, manufacturing division of wind, string and percussion instruments in April, 2014.

Toyooka digital musical instruments and audio products factory will continue operation under a new independent company, Yamaha Digital Products (tentatively named) in April, 2014.

Semi-conductor division will increase its investment in magnetic sensors, sound generators, image for entertainment businesses, and auto parts which Yamaha has strength traditionally.

Uncompetitive electronic devices now manufactured in Japan will be commissioned to overseas producers step by step. Yamaha Kagoshima Semi-conductor will be transformed into a production base for advanced magnetic sensors.
In a scheme of trimming the organizational structure, the headquarters will exclusively serve corporate management and planning, while the subsidiary companies are responsible for day to day operation, or some part of businesses will be outsourced to maximize efficiency.

The series of restructuring plans will associate with reduction of workforce at some subsidiaries. By limiting new employment, the company prospects slimmed overhead at manufacturing bases.

Yamaha has secured 1.7 billion yen for the total reorganization programs as a temporary loss for the 2013 fiscal term. On the other hand, the company plans to invest 1.2 billion yen for production divisions including Yamaha Kagoshima Semi-conductor. The two year restructuring is expected to save 2.7 billion yen for 2014 fiscal term.

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This page contains a single entry by jmtrades published on August 31, 2012 2:31 PM.

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