3-3. Reduce Production Costs Through Manufacturing Reform

Konica Minolta Inc. Medium Term Business Plan

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	Medium Term Business Plan

	New Medium Term Business Plan

	1-1. Basic Policy

	1-2. Management Objectives

	1-3. Management Objectives -by Segment

	Strategies and Policies for Each Business 2-1. Strategy Overview for Office Services Business 2-2. Strategy Overview for Commercial/Industrial Print Business 2-3. Operating Income Growth in Business Technologies Business 2-4. Strategy Overview for Healthcare Business 2-5. Strategy Overview for Industrial Optical Systems Business 2-6. Strategy Overview for Performance Materials Business 3-1. Manufacturing Reform, SG&A Expenses Reform 3-2. Maximize Profitability by Product by Introducing PLM 3-3. Reduce Production Costs Through Manufacturing Reform 3-4. Corporate Reform

	Key Points of the New Medium Term Business Plan

3-3. Reduce Production Costs Through Manufacturing Reform

The Business Technologies Business manufactures mainly in China. It has had some success reducing costs by procuring components locally. In the next phase, we plan to strengthen production technology and to work with local suppliers to cut costs. We will be expanding these efforts from China to all of the ASEAN region. We believe that by working with our suppliers starting at the design stage, we will be able to cut not only variable costs but also fixed costs.