A
complete restructurung of Mitsubishi Motors Corporation (MMC) at the end
of June saw its 230 departments reduced to 131, speeding up the decision-making process and clarifying
responsibilities.
The new organisation
will include a number of changes geared towards restoring consumer trust
in MMC and pushing through restructuring initiatives outlined in the company's
business revitalisation plan.
A Business Ethics Committee consisting mainly of
experts from outside the company will be established to supervise the
company's efforts to comply with its pledge to place utmost importance
on customers, safety, and quality. The committee will also directly advise
the board of directors, dramatically strengthening quality and governance
auditing.
A new Quality Affairs Office will handle all issues related to quality
assurance and management, while the Corporate Social Responsibility (CSR)
Promotion Office will be established directly under the CEO to promote
quality auditing and compliance issues throughout the company. The CSR
Promotion Office will also monitor quality management and make improvements.
To carry out the reforms outlined in the company's
business revitalisation plan, a Corporate Restructuring Committee headed
by a Corporate Restructuring Officer appointed from among outside investors
will be set up directly under the CEO for one year and cross-functional
teams created for all issues related to the revitalisation plan. The teams
will reach through the entire organisation and make bold proposals to
the Corporate Restructuring Committee. The committee will present implementation
plans to those in charge of operations and promote awareness of reform
issues by directly involving employees. A secretariat will also be set
up to support the committee and cross-functional teams.
Organizations directly under CEO and COO
In the new corporate organisation, the CEO will supervise departments
related to overall management of the group, while the COO will supervise
departments involved in executing business operations. Newly established
organisations reporting directly to the CEO include the CSR Promotion
Office, Finance Group Headquarters, Group Corporate Strategy Office, and
the secretariat of the Corporate Restructuring Committee. Newly established
organizations reporting directly to the COO include the Quality Affairs
Office, Corporate Staff Office, Product Operations Group Headquarters,
Domestic Operations Group Headquarters, Overseas Group Headquarters, and
the Production and Logistics Office. The Global Aftersales Office will
also report to the COO.
CSR Promotion Office
The CSR Promotion Office will be set up to keep watch on the company's
stance towards customers and compliance issues, and take the lead in implementing
necessary improvements. Based on information from customers, corporate
audits and whistle blowers, the office will report to top management,
propose and follow up on countermeasures, and propose and follow up on
new measures to improve corporate culture. The office will also include
enhanced functions for corporate auditing and the Business Ethics Committee.
Finance Group Headquarters
The organisation of the Finance Group Headquarters will be kept simple
to speed up the decision-making process and clarify responsibility. The
current controlling and accounting departments will be reorganized into
the Group Controlling and Accounting Department, Overseas Operations Controlling
and Accounting Department, Domestic Operations Controlling and Accounting
Department, and Product Controlling and Accounting Department. The Corporate
Finance and Financial Service Block will be merged into the Financial
Department.
Group Corporate Strategy Office
Currently, the Group Corporate Strategy Office is in charge of setting
out management strategy while the Product Planning and Program Management
Office is responsible for product strategy. Both of these functions will
be consolidated into the new Group Corporate Strategy Office.
Quality Affairs Office
Quality assurance and quality management functions — currently divided
among four departments — will come under the control of the Quality
Affairs Office to ensure prompt cross-functional information exchange,
clarify responsibilities, expedite quality improvement measures, and improve
development and production quality. The Quality
Affairs Office will also have a safety quality auditor function. The
company will beef up the office's ability to conduct quality audits and
assure the quality of newly purchased items during the product development
and production stages. Responsibility for the final delivery of products
will also be clarified. Personnel working on market measures at manufacturing
plants, purchasing, and the Quality
Engineering Centre
will be integrated into the Quality Affairs Office, speeding up the implementation
of market measures. The
CSR Promotion Office will monitor the quality management operations of
the Quality Affairs Office and make improvements where necessary.
Corporate Staff Office
To speed up the decision-making process and clarify responsibilities,
the functions of the current Corporate Affairs Office, Human Resources
Office, and Global IT Office will come under the umbrella of the Corporate
Staff Office.
Product Operations Group Headquarters
The Product Operations Group Headquarters will be built to deliver quick
results in terms of cost savings and developing products to put the company
back on track to growth as outlined in the business revitalization plan.
The leaner set up — with fewer departments and less layers —
will allow policies set out by senior management to easily filter through
the organization. A Product Development Office,
Development Engineering
Centre, and Global Procurement
Office will be newly established within the Product Operations Group Headquarters,
while the Product Design Office will also be transferred there and renamed
Design Centre.
Production and Logistics Office
Current production and production management departments, such as production
control and logistics, will be merged to bring production and logistics
functions closer together. All production plants will also come under
the control of the Production and Logistics Office.
Global Aftersales Office
To maintain consistency in aftersales operations, the Global Aftersales
Office will be responsible for all development and logistics issues related
to parts and accessories.
Domestic Operations Group Headquarters
The current Domestic Sales and Marketing Headquarters will be renamed
Domestic Sales Office and transferred to the Domestic Operations Group
Headquarters. The areas of responsibility of the Domestic Sales Office
will be reorganised to achieve a simpler organisation with a quicker decision-making
process.
Overseas Operations Group Headquarters
A North America Office, Europe Office, North Asia Office, and ASEAN Office
will be established in the Overseas Operations Group Headquarters to clarify
the responsibilities for profit and loss in each regional business and
speed up the decision-making process. MMC will also enhance its sales
support for overseas markets by bringing related functions under the direct
control of the Overseas Operations Group Headquarters. The new organisation
will also allow the company to remain up to date on potential risks to
its overseas operations.
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