24MBP Business Shaping Scenario: Create Good Tires

R&D and Manufacturing Transformation: BCMA (Bridgestone Commonality
Modularity Architecture)
EnergyBridgestone E8 Commitment

Ecology

Efficiency

BCMA, supporting “ultimate customization” consolidates
tire parts into three modules and shares them among
different products, simplifying the supply chain including
development and production. It is Bridgestone’s basetechnology for R&D and manufacturing which shortensdevelopment and production lead times to agilely provide
value to customers while also aiming to reduce business cost
including environmental impact.
In promoting BCMA during the 24MBP, we pursue theessence of R&D and manufacturing based on Genbutsu-Genba(respect for being on-site) to start creating benefit, focusing onvalue creation. Direct benefits, or the primary benefits fromBCMA are generated from the first year of BCMA introduction in2024. These consist of manufacturing cost down related toreducing changeover in production by sharing parts between
products, and development cost reduction due to module
sharing. Secondary benefits plan to be created mainly fromthe second year of BCMA introduction in 2025, in which weexpect the reduction in direct material cost and in conversion
cost from productivity improvement. These include benefits
from the evolution of R&D and manufacturing such as
improved capacity in production process and reduced
workload at production sites in BCMA deployment.
These benefits will be adjusted according to each plant’s
R&D and manufacturing power. Plants in the EAST regions(Japan and Asia), that already have high R&D andmanufacturing power and have high productivity, tend tohave smaller room for improvement through BCMA. On theother hand, plants in the WEST regions (U.S. and Europe),that face challenges in manufacturing, tend to have greaterroom for improvement. We lead to create value byspecifying the benefit in each plant according to the roles
and responsibilities of each of the 45 new tire plants clarified
in 2023. Four tire plants globally, two each from Bridgestone
EAST and WEST, have been designed as model plants andlead benefit creation. (Model plants: Burgos plant in Spain;
Joliette plant in Canada; Nong Khae plant in Thailand; Tochigi
plant in Japan.) During the 24MBP period, we will switch
approximately 50% of our global PS tire production to BCMA.
BCMA global benefit amountAccelerate value creation by steadily deploying BCMA in each plant
BCMA global benefit

Amplificationof value
Secondary benefit toemerge from the
2nd year of BCMA
introduction

Secondarybenefit
Primary benefit2024
1st year48

2025
2nd year2026
3rd year・・・BCMA introduction

Extension

EconomyTread (tire surface)

Customization

Carcass(tire skeleton)

Belt(reinforces tire)

Simplification

Link Steady Productivity Improvement andShift to Green & Smart
Linked with BCMA deployment, we drive steady productivity
improvement as well as the shift to Green & Smart to amplify
value and reinforce earning power. In terms of steadyproductivity improvement, we are pursuing streamlined
production based on Genbutsu-Genba (respect for being
on-site). In addition, we accelerate this spiral up of“standardizing craftsperson skills that have been cultivatedon-site over many years by leveraging digital capabilities,
and reinforcing the entire R&D and manufacturing power by
ensuring and improving the standards, and then evolving
the standards as craftspeople enhance their own skills.”
Combining this with automation leveraging smart technology
will accelerate productivity improvement. We concretize
and execute improvement in each plant, aiming to improve
productivity by more than 10% level in 2026, compared
to 2023.
Moreover, when it comes to the shift to Smart, we aim
to connect the entire production process through digitalsensing, AI, and automated control to achieve highly
accurate and efficient R&D and manufacturing. In the24MBP, we plan to introduce MES (Manufacturing ExecutionSystem) as a digital platform that digitally captures theproduction process and to automate the inspection process.
We will also promote technological development, looking
ahead to implementation in the 27MBP. Regarding the shiftto Green, we reduce energy Gentan-i (energy consumptionper unit) continuously.
In each target goal of driving the shift to Green & Smart,
we steadily move forward with the 2030 Long Term
Strategic Aspiration as our North Star.

Shift to Green & Smart: Targets
2026 targets

Green50% over reduction

CO2 emissions

Maximize value with minimum
sustainable resources

Deployment ratio of ultimate “circle” technology

Smart(Deployment ratio for technology applicable machine)

Less skills/High efficiency labor productivity

Value creation fusing ENLITEN and BCMA gradually starts
in 2024 and will expand in 2025-2026 as the true nextstage, to reinforce earning power. In the 27MBP, we willbuild a foundation to further reinforce business quality
and expand earning power.

2011)
50% reduction (vs.
(Scope 1, 2)Over 70%

Renewable energy (electricity)“Strong” real (Takumi) x
digital mastering manufacturing2030 targets(vs. 2011)(Scope 1, 2)

Aim for 100%

Approx. 50%

100%

Above 110%

130%

Creating social value linking with business
Bridgestone contributes to driving carbon neutrality
by reducing its environmental impact throughsimplifying the value chain with BCMA and by
reducing energy Gentan-i (energy consumption perunit) with the shift to Green.

Accelerate value creation through the fusion of ENLITEN and BCMA

Enhance value
Creation of
corporate value

Ultimatecustomization
Differentiation

Reinforcement ofearning power

UP

Base technology forproduct design“New premium”

Gen 1

Improve product power—Generate customer delight
Elevate all conventional performances, and largely
evolve environmental performance and/or performancethat not only meet the needs & wants of specific market/
customers but further inspires them (= “sharpen edge”)

Value creation(social &customer value)

Gen 2

Expand performance
spider chart“sharpen edge”

FusionDOWN

Base technology
for manufacturing
and R&D

Customization

Module 3

Customize performance
per market/customerFusion

Gainingcompetitive
advantage

Simplification

Reduce businesscost &environmental
impactReduce cost
Simplify operations in R&D and production /Support “ultimate customization”

Simplification

Module 2

Improve efficiency fordevelopment and supply
chain, and reduce costby sharing modules
between products

Module 1

As we roll out BCMA globally, we have discussions with many teammates from each SBU, at
Genbutsu-Genba (being on-site), and promote initiatives on a daily basis by performing thePDCA cycle. Although regions and positions may differ, our passions for creating good tires
remain the same. We will evolve R&D and manufacturing to a new stage, supporting ENLITEN
to realize ultimate customization while reducing our business costs. Through BCMA, we willalso transform the individual mindset to R&D and manufacturing as well as organizationalculture, which will create good business quality.

Kosuke Yukitake
Executive Director
Global BCMA and Technology Strategy

Bridgestone 3.0 Journey 2024 Integrated Report49