CSR

Efforts Regarding Manufacturing and Logistics

Energy- and Global-Warming-Related Issues

Mazda promotes the efficient use of energy while aiming to reduce CO2 emissions in the areas of manufacturing and logistics.

【Manufacturing】Total CO2 Emissions from Mazda's Four Principal Domestic Sites Reduced by 42.7% (Compared with FY March 1991 Levels)

The total energy-related CO2 emissions from Mazda's four principal domestic sites*1 (including R&D and other indirect areas) in FY March 2015 was reduced by 42.7% compared with FY March 1991 levels due to the following measures.

*1 Head Office (Hiroshima); Miyoshi Plant; Hofu Plant, Nishinoura District; Hofu Plant, Nakanoseki District

<Key Initiatives in FY March 2015>
  • ■ Further implementation of Monotsukuri Innovation
  • ■ Improvements in overall facility operating efficiency
  • ■ Concentrating production and reducing losses from unnecessary work and equipment downtime
<FY March 2015 Results (compared with FY March 1991)>
  • ■ Total CO2 emissions from Mazda's four principal domestic plants reduced by 42.7% (540 thousand tons - CO2)
  • ■ Emissions per unit of sales revenue reduced by 45.4% (23.1 t-CO2/100 million yen)

CO2 Emissions from Mazda's Four Principal Domestic sites/CO2 Emissions per Unit of Sales Revenue

CO2 Emissions from Mazda's Four Principal Domestic sites/CO2 Emissions per Unit of Sales Revenue

* CO2 emissions at Mazda’s four principal domestic sites are calculated using the CO2 coefficient for each year based on standards from the Japan Automobile Manufacturers Association Inc. (JAMA) (Commitment to a Low Carbon Society). Past data was recalculated according to the change of the coefficient.
The power coefficient for FY March 2015 is undetermined as of May 21, 2015; the FY March 2014 power coefficient is used for FY March 2015.
* The figures on the CO2 emissions at Mazda’s four principal domestic sites in FY March 2015 have been verified by a third party. With the verification scope as the basis, the Company has made a recalculation, going back to FY March 2011.

Energy Consumption Breakdown at Mazda's Four Principal Domestic Plants

Unit: (Thousands of GJ)

  1991 2011 2012 2013 2014 2015
Electricity 4,921 6,623 6,298 6,044 6,442 6,344
Industrial steam 0 1,473 1,418 1,337 1,453 1,409
Coal 4,967 0 0 0 0 0
Coke 766 345 276 193 191 170
Fuel oil A 596 67 32 24 23 27
Fuel oil B 11 0 0 0 0 0
Fuel oil C 1,168 80 59 38 28 6
Gasoline 193 72 61 66 64 64
Kerosene 101 13 12 4 15 8
Diesel 81 37 44 39 37 43
LPG 989 51 49 50 54 52
City gas 45 1,429 1,211 1,090 949 933
Total 13,838 10,190 9,460 8,885 9,256 9,056

Energy Consumption Breakdown at Mazda's Four Principal Domestic Plants

* Amount of heat emission at Mazda’s four principal domestic facilities is calculated using the CO2 coefficient for each year based on standards from the Japan Automobile Manufacturers Association Inc. (JAMA) (Commitment to a Low Carbon Society). Past data was recalculated according to the change of the coefficient. The power coefficient for FY March 2014 is undetermined as of July 1, 2014; the FY March 2013 power coefficient is used for FY March 2014.

【Manufacturing】Efforts for Energy-Saving Manufacturing

At production sites in Japan and abroad, improving the facility operation rate, shortening cycle time, and other measures are being taken to optimize the line process as well as the entire manufacturing process. Also, losses in each step from production to consumption of energy are reanalyzed to further cut losses, including cutting losses by suspending the power supply (for hydraulic pressure, etc.) during standby.

<Efforts at Overseas Plants >

Thailand

Mazda Powertrain Manufacturing (Thailand) Co., Ltd., which was established in January 2015, makes effective use of natural energy by implementing the following measures:

  • ■ Reducing heat load, by using highly reflective white corrugated roofs, and heat reflecting/absorbing glass windows
  • ■ Making active use of natural daylight, by using transparent materials for some of the roofs and outer walls
  • ■ Fully adopting LED lighting for saving energy
  • ■ Reducing energy use for air conditioning, by ensuring natural ventilation

China

In November 2014, Changan Ford Mazda Engine Co., Ltd., located in Nanjing, China, set up 305 wind-powered exhausters in its plants.

【Manufacturing】Reducing Energy Use through “Monotsukuri Innovation”

To improve quality and brand value, as well as to increase profit margins, while flexibly responding to the requirements for manufacturing of several models with different production scales and changes in production volume, a breakthrough in “sharing a completely new concept beyond the boundaries of models” is necessary. This idea has resulted in generation of the “Monotsukuri Innovation”.
Under “Monotsukuri Innovation,” at the timing of introducing new models equipped with the SKYACTIV TECHNOLOGY, Mazda has substantially reduced per-unit energy consumption. The specific efforts are as follows:

  • ■ Material: Reduced material weight through using thinner casted parts, shortening forging cycle time, and modifying production methods, so as to reduce energy consumption.
  • ■ Processing and assembly: Evolved conventional flexible manufacturing lines to realize higher-efficiency, mixed flow production, which resulted in dramatically improved operating rates and reduced energy consumption.
  • ■ Press: Reduced the amount of scraps generated in manufacturing of press parts, and retrieved parts from scraps to reduce the amount of use of steel sheets. Also achieved multi-pressing, which performs molding of several parts using a single die, resulting in both integration of processes and reduction of energy consumption.
  • ■ Paint: Developed and introduced the Aqua-Tech Paint System, a new water based painting technology that enables elimination of the primer process while further improving the painting performance and quality, resulting in reduced energy use for air conditioners in painting booths, and substantial reduction of VOC (volatile organic compound) emissions.

【Logistics】CO2 Emissions during Product Shipment Reduced by 37.4% (Compared with FY March 1991 Levels)

Mazda is working with logistics companies, dealerships, and other automakers throughout Japan to reduce CO2 emissions during product shipment.
Since FY March 2011, Mazda has expanded tracking capability for CO2 emissions during import/export of finished vehicles and parts overseas. Although the end of the tracking line used to be overseas ports, in FY March 2015, the Company began to extend this line to inland distributors, in cooperation with logistics-related companies in major markets.

<FY March 2015 Results>
  • ■ Total domestic transportation volume (including the purchase and supply of materials, parts and finished vehicles) was 504 million ton-kilometer. This represents a 37.4% reduction in transportation CO2 emissions per ton-kilometer compared with FY March 1991 levels, far exceeding the Company's target of 27% or more.

CO2 Emissions and Reductions for Logistics (in Japan)

CO2 Emissions and Reductions for Logistics (in Japan)

【Logistics】Realizing Logistics that Enables CO2 Reduction in a Timely Manner

Mazda is taking the following measures to provide customers with the volume they require, with the precise timing they expect, while reducing CO2 emissions.
Efforts to focus on the following three pillars of logistics are being taken by visualizing in detail the hidden logistics issues in each process on a global level.

1. Hub-and-spoke system for transportation of completed vehicles and service parts*2

Reforming transportation by consolidating logistics centers for completed vehicles

Mazda consolidated its logistics centers nationwide with the aim of combining delivery routes with low shipping volumes while ensuring timely shipments (and finished the consolidation in FY March 2012). Continuously reviewing the operation of domestic vessels (car carriers) according to their shipping volumes has enabled the Company to improve loading efficiency. To make more effective use of the domestic vessels on the return journey, collaborative transportation has also been promoted with other companies.

Reforming transportation by reorganizing part suppliers

In line with the consolidation of parts supply bases, Mazda has been reviewing its transportation methods and routes to make them most appropriate.
FY March 2012: Starting with consolidation of parts supply bases in eastern Japan and the Tokai region in Japan, the Company promoted shared transportation of completed vehicles and vessels and expanded use of JR transportation.
FY March 2013: Starting with integration of parts supply bases in the Chugoku, Shikoku, and Kyushu regions in Japan, the Company expanded the range of large-volume transportation and reduced the range of small-volume transportation, so as to increase the load efficiency of trucks and reduce the number of trucks required.
FY March 2014: The Company reduced the total transportation distance by enabling direct transportation to some dealerships in the Kinki region in Japan.
FY March 2015: The Company expanded the range of direct transportation to dealerships in the Kinki region in Japan, and continuously promoted the reduction of the total transportation distance.

Hub-and-Spoke System

Hub-and-Spoke System

*2 In the "hub-and-spoke" system, distribution centers around the country (hubs) act as bases for delivering completed vehicles to dealerships (spokes). In transporting service parts, parts suppliers serve as the hubs and vehicle dealerships the spokes.

2. "Straightening" of logistics network

Straight logistics without distribution centers (Vanning at plant, packaging at plant)

After manufacture of KD*3 parts is complete, they are packaged and loaded into containers at the same location, eliminating the need for shipment between production and packaging locations. At present, the coverage of this logistics system is expanding to engines, transmissions and auto body parts produced at Hiroshima Plant and Hofu Plant.

Closely locating production and packaging sites for repair-use bumpers to reduce losses in transportation

Mazda continued reducing losses in transportation by setting up packaging sites for bumpers as close as possible to their production sites, and increased the number of available shipping destinations. The Company also improved the load efficiency of trucks and reduced the number of trucks needed by introducing large returnable racks.

Reducing the Transportation Distance for Finished Vehicles by Establishing the Hofu Logistics Center

The vehicles manufactured at the Hofu Plant used to be transported to Hiroshima, where accessory installation, pre-delivery inspection etc. for the vehicles were carried out, and the vehicles were then distributed to each region.
By establishing a logistics center at the Hofu Plant in January 2015, Mazda has realized direct transportation from the production site, leading to a reduced transportation distance.

Logistics without Distribution Centers (Vanning at plant)

Logistics without Distribution Centers (Vanning at plant)

*3 A manufacturing method wherein parts are exported to overseas production sites, where they are assembled onsite.

3. Continuous improvement to the Milk-Run System*4

In purchasing production parts, deployment of the Milk-Run system was completed throughout Japan by FY March 2008. Today, Mazda is introducing the same system in overseas production sites, with deployment in the Mexico plant completed in FY March 2014, aiming to reduce CO2 emissions by further promoting efficiency in the purchasing and logistics processes across the entire supply chain. Also, the Company is implementing initiatives to optimize packaging volume for purchasing parts, reflecting logistics needs at the beginning of product development process, so as to further improve the load efficiency of trucks and reduce the number of trucks required.

Milk-Run System

Milk-Run System

*4 A method in which a single truck visits multiple suppliers to collect supplies. Named after truck routes in rural areas, which picked up milk from each farm.


VOICE

Engaging on Purchase and Logistics Operations in Thailand to Establish a Globally Optimized Parts Supply Structure

I am working at the distribution center newly established in Thailand in 2014 in line with the launch of the global production of the new Demio/ Mazda2. I am in charge of the purchase and logistics operations concerning parts produced in Thailand for Mazda’s production sites in Japan and Mexico. By establishing this distribution center in Thailand, Mazda has integrated purchased parts (through the “milk-run” system), and has enhanced marine container loading efficiency. This has enabled the Company to reduce CO2 emissions generated by transportation by 333t- CO2*5. Meanwhile, by using returnable containers for transportation from Japan to Thailand and vice versa, the Company has reduced the amount of packaging waste by 102 ton*5.
To establish a totally optimized parts supply structure for global production sites, I always consider what the ideal would be. I strive to make a contribution not only in terms of quality, cost, and delivery time, but also, at the same time, in terms of environmental protection.

*5 FY March 2015 results

Shigeo Yamamoto

Shigeo Yamamoto
Mazda Sales (Thailand) Co., Ltd.
Mazda South East Asia (MSEA), Ltd.