LOGISTICS AND SUPPLY CHAIN OF CBU (COMPLETE BUILT UNIT) IN TOYOTA

SAFETY FIRST QUALITY MUSTFaculty Guide Department Guide Presented ByDR. Ch. Venkataiah Mr. Arun Manager Gelli.V.S.Ch.SwamyChair person PGP Mr. Vijay N S, Asst. Manager GSIB, GITAM University VLD, Toyota Kirloskar Motors

Toyota Production System

ARUN SANManager of

VLD

VIJAY SANAsst. Manager

of VLD

SIDDESH SANDy. Manager of

VLD

VEHICLE LOGISTICS DEPARTMENT

KEEPS THE FRESH QUALITY OF CBU FROM PLANT TO CUSTOMERS

VLD treats, CBU is similar to perishable goods, if is there any delay in delivery or damage in CBU it’s expensive and difficult to recover fresh quality of product and we lose customer loyalty.

VEHICLE LOGISTICS IN TKM >--> BASIC SCOPE

Production Receive Storage Dispatch

Port Delivery

Shipment

Dealer Delivery

Retails

Domestic :

Exports :

H/O from Plant

H/O to LP

OVERALL VEHICLE LOGISTICS OWNERSHIP

RECEIVING CARS FROM PLANT – UPTO – DELIVERY TO DEALERS / PORT

....basically, we are the last link from TKM, in the Supply Chain

LOGISTICS AND SUPPLY CHAIN OF CBU (COMPLETE BUILT UNIT) IN TOYOTA

Getting the right product, to the right customer, in the right quantity, in the right condition, at the right place, at the right time, and at the right cost finally it increases the value of company

CUSTOMER

DEALERCUSTOMER TRANSPORTER

VLDPRODUCTIONSALES & OPERATIONDEALER

BY REACHING VLD GOAL , THESE ARE THE STAKHOLDERS INVOLVE

In out-bound logistics communication between stakeholders plays a vital role for improving the quality of services

CUSTOMER

GREET

SALES EXECUTIVE

ABOUT TOYOTA

TEST DRIVE

NEEDS OF CUSTOMER

DEMONSTRATIONS

PRODUCT PRESENTATIO

N

PAYMENT

SMILE & E.M

ACCESSORIES

PLACE AN ORDER

CONFORM B.P DATE

DEALER CAN RECEIVE C.B.U

ESTIMATED DELIVERY DATE

ACCESSORIES & STICKERING

WASHING POLISHINGBUDJET,

FAMILY, DAILY TRAVELLING DISTANCES

DELIVERED

CASH/IN-FIN/OUT-FIN

ENGINE, SITTING,

FEATURES

4W D/L FINALIZE THE COST

CONFORM THE PAYMENT MODE

MAINTENANCE

Q.C

CUSTOMER REQUEST

PAYMENT DONE

CUSTOMER TO CUSTOMER FLOW AT DEALERS POINT

1:5

WHEN CUSTOMER WAS READY TO PURCHASE CAR

MODEL ADVANCE BOOKING PAYMENT

Etios, Etios-Liva 50,000

INNOVA 50,000

Corolla-Altis 50,000

Fortuner 1,00,000 lk

Camry 5,00,000 lkL.C 200, Prado, Prius 10,00,000 lk

AFTER BOOKING CUSTOMER CAN CONFORM MODE OF PAYMENT

FULL CASH IN-HOUSE FINANCE

OUT-HOUSE FINANCE

Balance Payment Date Finance Documents Bank Details

Registrations Finance Agreement With Balance of Payment

Hypothecations Entry In Bank(form 21)

Delivery Registrations Mode of Payment like DD or E-transfer

Delivery Registrations

Delivery

SALES EXECUTIVES

TEAMS MODELS

3 Etios, Liva

3 Innova, Fortuner

1 Corolla, Camry

BUSINESS PROVIDED AT

TEAMS PLACE

2 Field

2 Showroom

2 Corporate

1 Government

60 MINUTES EXPRESS MAINTENANCE SERVICE

SALES & OPERATIONS

PREPARATIONS OF MDDP BILLING

SALESPRODUCTION PLAN FUNDSVLD YARD STOCK

ASSIGNMENT

DPP (M-15) H.O can Divided Region wise Allocation like E,W,N,S (M-14)

H.O can consolidate and fix FIRM ORDER

(M-10)

By using FIRM ORDER and DPP, H.O can

prepare ASSIGNMENT up to LOD (M-7)

VLD can provide ETD & ETA (M-5)

By using ASSIGNMENT

VLD can prepare MDDP

R.O can divided Dealer wise Allocations

H.O sales

L.P

R.O sales DEALER

M-2CTDMS

PRODUCTION VLDSALES

PREPARTIONS OF MDDP

• Lot making• Parked in Dispatch Bay•Physically checked and inform to EXERCISE person

FUNDSPLAN

DEALER

CTDMS

MDDP

SAL

F.R can Generated

FFB/I.F

STOCK

LOGISTICSFINANCE

CTDMSINVOICE

Cross CheckShare that Information to EXERCISE person

15 mints

BILLING FLOW

VLD (VEHICLE LOGISTICS DEPARTMENT)

KEEPS THE FRESH QUALITY OF CBU FROM PLANT TO CUSTOMER

KAKU VLDQC-Gate

1DISPATCH

QC-Gate

2

NG

OK OK

NGYARD

DEALER

TR

AN

SIT

QC-Gate

3

OKPOD

Inform to

VLD/LP

BILL

NG

Customer Feel Happy

QUALITY GATES IN VLD

TOYOTA KIRLOSHKAR MOTORS

DOMESTIC EXPORTS

…As of May 2013

COUNTRY NO. OF SHIPMENTS

Liners

SOUTH AFRICA

3/Month NYK/K-LINE

MOURITIUS 1/Month MOL

SEYCELLES 1/Month MOL

ZIMBABWE 1/Month NYK/K-LINE

SRI LANKA 1/Month NYK/K-LINE

ZONES OUTLETS 3S 1S 2S BP

EAST 28 21 7 0 0

3

WEST 50 33 13 3 1

2 3

NORTH 90 61 16 11 2

6 2 1

SOUTH 70 48 8 10 4

6 1

TOTAL 238 238

100Km Lashing/ 60kmph/ no ND/ 460km per day

YARD-INVLDKAKU

DOMESTIC FLOW OF CBU

OUT-TRAY

REMOVE KANBAN

AND PLACE DEALER TAG/BAY

Num.

LOT MAKING

SALES/ BILLING

INVOICE/6 EXCISE PERSON CAN CHK THE DETAILS OF THE RESP.

FR Num. By RCV. MAIL FROM FINANCE

VLD / PHY CHK

DRIVERS CAN PARK IN RESP.

BAY

QG-2

GRN/4

TRANSPORTER

E-SUGAM

SECURITY PASSDRIVER

LP send TT as per matrix/ LF

UN-LOAD

DEALER

QG-1

TRASIT

DOCUMENTS

BANKMDDP STOCK

E-TRANSFERMAIL

POD/ NVRR

QG-2

EXPORTS

TKM TMC/ TMAP

EXPORTER IMPORTERCONTRACT

• PURCHASE ORDER• SHIPPING SCHEDULE

CUSTOMS/ENNORE

CUSTOMS/ DURBAN

TSAM

DELIVER POINT

TKM

CBU’S/ DOC. CBU’S/ DOC.

NEXT MONTH 25TH

LT- 12days

FOB ( Free on Board)

D/C ( DOCUMENTS AGAINST CREDIT)

WHY SHOULD WE EXPORTS?

GOVT. INCENTIVES (TOKENS)INDO-THAI

ASIAN REGION (8 COUNTRIES )FMS(FOCUS MARKET SCHEME)FPS(FOCUS PRODUCT SCHEME)

• Wrap guard for export CBU on hood, luggage door, roof panel, wrist handle.

• Anti rust papers for front wheel discs • Owner manual book color i.e., Green for exports, Blue for domestic• Mirror No Caution• In Engine , Air cleaner with side branch• VIN slot number at Windshield glass and chassis num on LH RR

door glass.• Homologation mark was on wireless door lock control • Engine control unit (ECU) software was changed • Kaku, for exports we generate A4 sheet of Kaku • Eye bolt was fitted in front of CBU, for lashing purpose in linear

DIFFERENCE BETWEEN DOMESTIC AND EXPORT CBU

EXPORT FLOW OF CBU

LOT MAKINGYard inKaku

6 57 48 39 2C 1wind

ENNORE PORT

OUT-TRAY WITH BAY

no.

REMOVE ONE

KAKU AND

PASTE ON A4 SHEET

LOT CONFORMATION

INVOICE/ 3

VLD / PHY CHK

DRIVERS CAN PARK

IN RESP. BAY

E-SUGAM

GRN/ 4

ARE/ 5

QG-1

QG-2

TRANSPORTERSECURITY

PASSDRIVERWITH- IN

36 Hrs

CONSULT LP FOR

MATRIX/LF

SON

By using SON IMPEX generate

DOCUMENTS

BAR CODE SHEET

ENNORE

CASE NUMBER

GENERATE

PRE- ASSIGNM

ENT

CBU SHIFTED

TO P-YARD

CBU UNLOADED BY DRIVER

VEHICLE SHIFTING TO

GCB

CUSTOMS CLEARING

(S-1)

CUSTOMS INSPECTIONS

(S-2)

FINAL ASSIGNME

NT (S-3)

PORT IN

CHK, write vessel &

country name, Barcode

OKQC

NG T.P.Y

IMP

EX

INFORM TO

LINEAR

Driver want to submit

GRN, ARE, INVOICE,

BARCODE Sheet

DOCUMENTS GIVEN By EXPORTER To CUSTOMS

•EXPORT INVOICE•SHIPPING BILL•EXPORT VALUE DECLARATIONS•SELF DECLARATIONS•SEA WAY BILL

CUSTOMER

DEALERCUSTOMER TRANSPORTER

VLDPRODUCTIONSALES & OPERATIONDEALER

LOGISTICS PATNERS

India Europe U.S Japan

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

India Europe U.S Japan0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

28%

23%21%

7%

5%

5%

4%4%

3%2%

Automotive

Engineering

Others

Chemicals/Fertilizers

Metals

FMCG

Textiles/Apparel

Services

Telecommunications

Transportation

SHA

RE

CO

ST

TKM LOGISTIC PARTNERS

TKM

TCI

TLKI

TLI

KTS

TOYOTO YUSO

TTC

MITSUI

SUB CON LISTED-769 TT51 DEDICATED

SUB CON LISTED-1149 TT115 DEDICATED

LP’S

J.V

TKM MDDPSub con’s are interested on

particular zones only

TLKI-CC person can generate DDP for whole

month by sync. Zone-wise, dealer-wise

64%

36%

22%

51%

51%

49%

27%

TKM

TLKISUB CON send CC

S-14

TLKI 51 SUB-CON’S

C-17B-19A-11

TRAINING/ TESTING

EDUCATION

OTHER OEM’S

REPAIRINSPECTION

NG

OK10K

10K

For loading it takes 2days, driver wages

3k=23k

•NO INSPECTION, •NO REPAIR COST •NO TRAINING, •NO TESTING, •NO WAITING COST

20K

ON DAY LOADING

CHALLENGING OF TLKI IS…….

….ASSUMPTION

TLKI FLOW OF CC(CAR CARRIER)

EDUATIONS/

TRAINING

CC INSPECTI

ON

CCM/FLEET Mang.

TT

FROM THE PLAN OF TKM, TLKI MEMBER CAN

SHARE THE INFORMATION

PARK

SEND CC TO TKM

DISPATCH CONTROL

LER

TOTAL 77 CHK

POINTS

PRE-DISPATCH

ROOL CALL

VMD

INFORM BAY NUM

DISPATCH DOCUMENTATION

LOADINGWAITING

FOR INSPECTION

DEALER

DAILY ROLL CALL

2TIMES ROLL CALL,

60KMPH(over speed), night drive,

lashing chk for 100km… UPDATE in TKM WEB-TRACK

POD/ NVVR

UNLOADING

QC

LOGISTICS AND SUPPLEY CHAIN OF CBU

CUSTOMER

DEALER

SALES

PRODUCTIONVLD

LOGISTICS PARTNER

DEALER

CUSTOMER FEELS HAPPY

IDENTIFICATIONS & SUGGESTIONS

1. At kaku area, kaku person can miss handle the form-22. because he want to close the hood and open the door by carrying form-22 & kaku labels. Counter measure: Prepare Proper Sop For Carrying Form-22

2. Delay in billing, Waiting until 11a.m due to this the dispatch was started after 11.30 only and its make burden on closing time of day. counter measure: We Hope For Coming Months Sales Become Stable

3. washing bay, with washing dispatch the cycle time is 12mints and without washing dispatch the cycle time is 8mints. Counter measure: Automatic Washing System Or Water Spray In Yard

4. If heavy winds are coming due to clouded sky, we want to check the yard due to quality & damage issues, it was happen after we identify heavy wind flow. So there is a chance any object is hit to CBU. Counter measure: Place A Wind Identifier, By Placing This Instrument It Gives Alarm Before Wind Was Coming(expensive).

Toyota gives more importance to Kaizen for every operation

Its main objective is to Eliminate 3M’s(MUDA, MURA, MURI)

BULLWHIP EFFECT