The graph on the left side of this slide displays the year-on-year changes in manufacturing costs from the first quarter to the third quarter.
As was explained at the financial results briefing session for the first quarter, this was mainly due to deterioration in manufacturing costs during the first half that was caused by the confusion resulting from the consolidation of the three production bases the Group has in China into two production bases coupled with the launch of mass production for new color MFP products.
For the former models, there were two platforms, one for low-speed units and one for middle- and high-speed units. However, with the recent release of new products, a more challenging approach to design has been taken with a shared platform being used for five models, from low-speed to middle- or high-speed.
The launch stage for mass production was during the first half and performance was affected by the considerable time required to acquire skills and stabilize production. While skills did improve during the third quarter and the adverse impact on costs was reduced to 0.6 billion yen, this is still not in line with plans.
During the fourth quarter we will strive to accelerate improvements in manufacturing costs by achieving improved efficiency in the procurement of materials and assembly.
As was explained at the financial results briefing session for the first quarter, this was mainly due to deterioration in manufacturing costs during the first half that was caused by the confusion resulting from the consolidation of the three production bases the Group has in China into two production bases coupled with the launch of mass production for new color MFP products.
For the former models, there were two platforms, one for low-speed units and one for middle- and high-speed units. However, with the recent release of new products, a more challenging approach to design has been taken with a shared platform being used for five models, from low-speed to middle- or high-speed.
The launch stage for mass production was during the first half and performance was affected by the considerable time required to acquire skills and stabilize production. While skills did improve during the third quarter and the adverse impact on costs was reduced to 0.6 billion yen, this is still not in line with plans.
During the fourth quarter we will strive to accelerate improvements in manufacturing costs by achieving improved efficiency in the procurement of materials and assembly.