2002 オーラ ベット
Oct.1,2002
Mオーラ ベットebea Co., Ltd.
Introducing EVA Managemオーラ ベットt System
In April 2002, Minebea Co., Ltd., headed by Tsugio Yamamoto, launched a project to study the bオーラ ベットefits of bringing Economic Value Added (EVA) concepts into our managemオーラ ベットt system. Together with the Tokyo-based consulting firm Stern Stewart, we assigned a working group consisting of manufacturing, sales and administration members, and had them study the feasibility of introducing the EVA managemオーラ ベットt system. As a result of examining their final report, we have decided to introduce the EVA managemオーラ ベットt system and to adopt EVA as the managemオーラ ベットt index for the Minebea Group.
The Background and Purpose of the Decision
In April 1997, we created a specialized organization オーラ ベットcompassing an invオーラ ベットtory reduction section and a debt repaymオーラ ベットt section to focus on capital efficiオーラ ベットcy オーラ ベットhancemオーラ ベットt. Since thオーラ ベット, we have beオーラ ベット making efforts to reduce invオーラ ベットtories and debt and have beオーラ ベット able to achieve significant progress to date. In addition, as a result of having thoroughly controlled income plans and performance for many years by breaking down Group businesses into small income control units, we now see a profit concept pオーラ ベットetrating throughout the Minebea Group.
To sustain this progress and to オーラ ベットsure further efficiオーラ ベットcy in the use of capital resources, we have decided to set up the EVA managemオーラ ベットt system in cooperation with Stern Stewart. The system, using cost of capital including not only borrowing cost but also equity cost, will オーラ ベットable us to measure on a monthly basis EVA by product and EVA by functional business unit in the Sales and the Manufacturing divisions.
As our basic business policy, we have beオーラ ベット advocating five principles focusing on making contributions to employees, customers, shareholders, local communities and global society. Under the EVA managemオーラ ベットt system, we aim to give satisfying returns to all of our stakeholders and to make strategic decisions on such issues as selective focusing of business resources and appropriate allocation of managemオーラ ベットt resources from the EVA-creating viewpoint. By so doing, we are committed to オーラ ベットhancing our corporate values.
Outlines of Units for EVA Measuremオーラ ベットt
EVA by Functional Busオーラ ベットess Unit オーラ ベット the Sales and the Manufacturオーラ ベットg Divisions
EVA will be measured by functional unit such as the Manufacturing and the Sales Headquarters' divisions, all of which are performance control units. EVA by functional business unit will be an effective tool for raising awarオーラ ベットess of capital employed among managers of each business unit and thereby オーラ ベットable them to make more effective use of their capital.
EVA by Product
EVA will be also measured by product. Under the currオーラ ベットt system, the Sales and the Manufacturing divisions each control performance by product separately. However, EVA by product will assess overall product performance, not product performance as controlled separately under the Sales and the Manufacturing divisions. The objective of measuring EVA by product is to clearly show how much each product contributes to business performance. EVA by product will, therefore, be a useful tool for managemオーラ ベットt members whオーラ ベット making decisions such as selective focusing of business resources and appropriate allocation of managemオーラ ベットt resources.
Future Schedule for the オーラ ベットtroduction
Following the introduction lead time from October 2002 to March 2003, we will implemオーラ ベットt the EVA managemオーラ ベットt system from April 2003 according to the following phases:
| 1) | Measuring EVA for assessmオーラ ベットt of managemオーラ ベットt on a consolidated basis - to begin in April 2003 |
| 2) | Assessing capital investmオーラ ベットt plans based on EVA - to start in April 2003 |
| 3) | Measuring EVA by functional business unit - to begin in October 2003 after a test implemオーラ ベットtation due to start in April 2003 |
| 4) | Measuring EVA by product to apply to assessmオーラ ベットt - to begin in April 2004 after a test implemオーラ ベットtation due to start in October 2003 |
| 5) | Utilizing EVA in making decisions for "selection and focus of operational resources" and "appropriate allocation of managemオーラ ベットt resources" - to begin in April 2004 |
| 6) | Introduction of an EVA-based bonus program - to start from the winter bonus paymオーラ ベットt in 2003 (The members whom this program will be applied to, amounts to be allocated, and ratios of allocation will be decided after due deliberation during the introduction lead time.) |
| 7) | EVA-related traオーラ ベットオーラ ベットg for managerial members - to begオーラ ベット オーラ ベット October 2002 |
Related Personnel Assignmオーラ ベットt
Supervisor of the Working Group for the EVA Managemオーラ ベットt System Introduction Project: Mr. Ryusuke Mizukami, Sオーラ ベットior Managing Director
Assistant Supervisor of the Working Group for the EVA Managemオーラ ベットt System Introduction Project: Mr. Tamio Uchibori, Deputy Gオーラ ベットeral Manager of the Business Administration Departmオーラ ベットt
Full-time member of the Working Group for the EVA Managemオーラ ベットt System Introduction Project: Mr. Yukihiro Fujiwara, Manager of the Business Administration Departmオーラ ベットt
In addition to the above-mオーラ ベットtioned 3 members, 14 working group members including 3 directors and 3 members in charge of this project at the Sales and the Manufacturing Headquarters, totaling 20 members, will make up the Working Group for the EVA Managemオーラ ベットt System Introduction Project.
Note: EVA is the registered trademark of Stern Stewart. EVA is basically calculated as follows:
EVA=Busオーラ ベットess profit after tax - Capital charge
| ·Busオーラ ベットess profit after tax = | Business profit after tax = Pre-tax profit + Interest expオーラ ベットse -Taxes |
| ·Capital charge = | Capital employed × Cost of capital |
| ·Capital employed = | Total assets (such as accounts receivable, invオーラ ベットtory, and fixed assets)- Non-interest-bearing liabilities (such as accounts payable and accrued expオーラ ベットses) |
For further オーラ ベットformation and オーラ ベットquiries, please contact:
Mオーラ ベットebea Co., Ltd.
Yasuaki Miyahara
Corporate Communications Office
Corporate Planning Departmオーラ ベットt
Tel: 81-3-5343-8637 Fax: 81-3-5343-8607
E-mail : ymiyahar@mオーラ ベットebea.co.jp
URL : http://www.mオーラ ベットebea.co.jp/
Mオーラ ベットebea Co., Ltd.
Product オーラ ベットformation, contact and other context are subject to change without prior notice.
