Value Creation Process
The Mabuchi Group’s core Management Principle is the fundamental approach guiding all of our activities. Dating originally from 1964 and formalized in 1971, the Management Principle is “Contributing to international society and continuously increasing our contribution.” Through consistent practice of this core principle, we create value toward the achievement of a sustainable society.
Our Management Principle conveys our desire always to increase our contribution to society and to remain a company that is indispensable to the world. The Management Principle means that all our employees are to participate in contributing to society through their work at the company and through their growth as individuals: by caring for others and for nature, the environment, and all other things; and by cultivating themselves, developing their talents and engaging with society. The Management Principle is the approach to corporate leadership and management that defines the culture and spirit of the Mabuchi Group, today and for all time.
Here, we describe the efforts of the Mabuchi Group to date in service of the Management Principle and company mission. The below summarizes our activities to promote the achievement of the SDGs in accordance with on our key Management Markers.
Specialized in small DC motorsExpand the applications of our products into markets that are positioned in domains with higher added value by utilizing human, intellectual and manufactured capital which have been cultivated.
We have limited our products and business domain intentionally to small DC motors, investing in human, intellectual, manufacturing and other capital in this domain. This is how we established and maintained our position as the leading small DC motor company despite the existence of competitors who are larger in scale.
While focusing on these products and this business domain, we have watched markets all over the world. We’ve grown and preserved our competitiveness by satisfying the tough requirements of leading customers in the global market.
We’ve expanded the markets where our products are used, securing business growth while adhering to our core business philosophy of being a contributor to society. Having started in the model and toy market, we expanded to other applications for our products, entering the home appliances, electric power tools, precision and office equipment, audio-visual equipment, and automotive appliances markets, among others.
Technology improvements in small DC motorsCultivate the two domains of peripheral parts technologies and brushless motor technologies and promote developing the market of high value added applications.
By concentrating our resources into the small DC motor business, we have developed not only our own core motor technologies but also technologies for motor products, motor production, parts, parts production (such as technologies for press, metal processing, resin molding and molds), and final production equipment (such asassembly equipment).
Among our technologies for small DC motors, we have unrivaled brush motor technologies.
We are equally capable of responding to our customers' needs for brushless motors with long service lives. We apply the core technologies we have cultivated for brush motors to achieve more compact, lighter weight, and higher efficiency also in our brushless motors.
By developing and producing compact and lightweight eco-friendly model motors, we will contribute to curbing the use of global resources.
Product standardizationPosition standard products in new applicaiton markets. At present, we are expanding sales of brushless motors into new applications in the fields of both automotive appliances and life and industrial products and aiming to build a standard at an early stage
Our product standardization strategy is the most important means through which we practice our Management Principle.
The functions, sizes, and prices of motors that customers need and request are as diverse as the customers themselves. Yet, we have the necessary know-how, and the proven capability, to identify and produce motors that cater to multiple customers' needs.
It is through our technological expertise and careful attention to customers’ specific needs that we are able to meet their requests with our smaller, lighter, more affordable motors.
Creating and making customized motors tailored to our customers requests would not be difficult - but the resulting products would cost a lot more. We help protect our customers’ competitiveness by working with them to deliver the products they want at a good price.
Our product development engineers commit to tough restrictions in order to achieve higher performance products using standard parts, keeping use of customized parts (which raise product prices) to a minimum.
Global production systemIn the medium term, expand sales in the Americas and Europe by taking advantage of our new production bases in Mexico and Poland. For long- term expansion, assess the investment environment in new regions to identify opportunities.
To optimize our five-region global production system, we must improve the production efficiency of new bases to match that of our existing bases as quickly as possible. Achieving that will engage the cumulative skills and talents from all across Mabuchi Group companies. Fortunately, Mabuchi Motor has deep experience in bringing the capacities of its workforce to bear in creating new value globally.
In 1964, our first overseas production base opens in Hong Kong; 1986 we entered Guangdong Province, China. Headquarters and the Hong Kong office were instrumental.
Our Taiwan office played an active role in launching our production base in Jiangsu, 1993.
Our team at Bien Hoa, Vietnam put our production base in Danang, Vietnam on track.
Today, the local team at our newest production bases in Mexico and Poland a r e collaborating with colleagues from Japan, China, Vietnam, and Taiwan.
Production equipment specially designed and produced in-houseComplete automation of the inspection process, still heavily dependent on human eyes and ears. We’re dedicating research and development efforts to this task.
Decades ago, production at our newly established bases outside Japan relied on labor-intensive processes. But as the company developed along with the areas where we were producing, we applied our accumulated expertise to design and build specialized equipment that automated more and more of our production processes.
Through automation, we increase production efficiency and reduce production costs i n our major production sites such as China and Vietnam. But automation has an additional important advantage: it helps us add value to the areas where we operate, through human capital investments. Automation creates more qualified, higher-paying jobs and multiplies career opportunities for employees.
We have been for this initiative as it is a win-win situation for the governance and the local people who want to reduce production costs, upgrade their jobs, and increase their salary levels.
High-quality, low-cost productsThe operating income ratio of 15% or higher is our target. We pursue highly efficient management by introducing ROIC in order to achieve further growth by investing operating income in new areas.
Typically, quality and cost are proportional to each other - if quality improves, costs increase accordingly; cost reductions would normally lead to lower quality.
At Mabuchi Motor, high quality and low cost coexist. We achieve this through three fundamental strategies: specialization in small DC motors, product standardization, and a global production system.
With high quality and low cost, we put approx. 1.2 billion motors in customers' products every year, motors that support safety and comfort in the lives of people around the world. This is the main substance of our contribution to society.
We have achieved a high operating profit margin, and since our foundation have never posted an operating loss.
Among our financial achievements, we place special emphasis on the operating profit margin. We view the operating profit margin as a key indicator of the contribution our products make to society. In product development, our engineers know that any new product we make must achieve a high operating profit margin.