TOCICO

Many of Japanese companies are facing the dilemma to fulfill corporate social responsibility by securing employment versus to deliver new innovative products by investing more money for new product development. Mazda, the major employer in Hiroshima and often used as a miniature case of Japan's struggle, was facing the following challenges: -Keep employment to fulfill corporate social responsibility in local community -Huge pressure to move out from Japan to cope with intense Yen appreciation -Keep Mazda spirit to deliver innovative cars -Cost reduction without compromising high performance with eco-friendly gas mileage. With four straight years of negative financial performance and a plummeting share price, Mazda had to come up with a way to deliver car innovation without increasing costs while keeping employment stable. Started with bottom-up initiatives and later supported by a top-down commitment, the company utilized TOC’s critical chain project management (CCPM) to develop an innovative, new technological advance which it called 'SKYACTIV.' Not only was Mazda able to cut its car development time in half, but it produced a lighter and stronger chassis and, using new technology, the ability to extract a significantly greater amount of energy from its fuel. As a result, the mileage is competitive with hybrid cars without any compromise in performance and far less cost. Among the key performance indicators (KPI's) for Mazda are a huge jump in sales and consequent rise to number one in market share in many global markets, a return to profitability, and increased motivation and collaboration within the company. Moreover, the company has won numerous industry awards for its technological breakthroughs. Above all, nothing more than makes all happy is people's harmony - motivation and collaboration. The company’s key learning: There is no limit for technology breakthrough. There is no limit for operational breakthrough. 'Even the sky is not the limit.'