Toyota Final

5/26/2018 Toyota Final

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Toyota offers diverse preferences with flawless

quality at affordable price and at perfect timing.

Toyota has always striven for better cars for more

people. After the world war II most people couldnt afford a

car even at cost.

The Toyota Production System (TPS) aims at

elimination of waste, which snowballed

unnoticeably.

JIT and Jikoda helped in reducing the inventory.

The five whys

TOYOTA


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The 5 whysThis exercise consists of asking a chain of why questions until the root cause

is identified and countermeasures are determined.


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They had increasingsales

Toyota was exporting its

products earlier whichwas not a viable option

now.

The yen was becoming

stronger so investment

in foreign market would

fetch more return.

They had to train people

with regard to the TPS

that they followed.

Also they released a new

version of Camry which

had increased variation

in seats. But there was an

engineering flaw in the

seats.

Why a new plant in US Problems they faced


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Georgetown Ramp Up

Replication of Tsutsumi plant, maintaininghigh quality, low cost.

Selection and training programs reinforcing

TPS basics. Month long trip, Intense personal training,

one to one approach.

TPS isolates problem from people therebyenabling them to focus on solving theproblem.


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Operations Production

Mission

Planning process, example

2 major principles used

Heijunka- evening out

advantages: supplier surge, bottleneck elimination


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Operations

Kanban cards- JIT principle, connects supplier and

workstation, part code number, batch size, delivery address.


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Operations

Assembly Work charts (cycle time, sequence of task, timing).

Red , green ,yellow lines and andon cord.


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Operations

Quality Control

1. Setting tough standards and checking every vehicle against

those.

2. Following through with customersexperiences with shipped

vehicles.

3. Inspecting problematic items amongst other items at the

receiving dock.

4. Providing instant feedback to direct operations including

final assembly by rigorous inspection.

5. Prevention of problems happening in the first place by

working closely with the design team and suppliers.


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Operations

PURCHASING

1. Policy of engaging low cost suppliers over low price

suppliers always.

2. Practice of Cost Estimation by encouraging suppliers toshare their cost data with them.

3. Helping them improve their manufacturing processes with

inputs from Toyota Kaizen experts.

4. Subsequently resulting in reduction in procurement prices.


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THE SEAT

Camry seats consisted of front left and right assemblies, the

rear seat benches and backrests and the bolsters.

For the Assembly, it was a soft part prone to damage as

well as the bulkiest.

For the QC, it was an item of safety.

For the Purchasing, it was the most expensive of the

purchased parts.

The seat was a sensory item for customer satisfactionwithout any precise industry standards.


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THE SEAT TMMs used Sequential Pull to get the delivery of seat sets.

SupplierKentucky Framed Seat (KFS).

Just in time inventory delivered according to make and model

specification.

1. Transmitter attached to car body sent real-time manifest

information to printers at KFS and TMM .

2. The car body and the seat sets simultaneously travelled down the

assembly line in the respective factories.

3. The seat sets are then strapped according to the order.

4. Delivered batches of 58 seats to TMM within 30 minutes

5. Sets waited in TMMs receiving dock and hoisted to the overhead

conveyor according to the manifest prints.


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THE SEAT-Assembly


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Exception to Multivendor policy and in house

assembly of seats.

Locational closeness helped Sequential Pull. Kaizen tips to KFS.

Initial Start up was difficult.

Model Change- Sequential pull till last day ofproduction- 10 days to change over its

process- 10 weeks to build-up capacity.

Kentucky Framed Seats


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Defects


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3 styles 4 Colors were changed to 5 styles 3

colors

Camry Wagon +8 North America +10 Europe+18 Japan and Middle East

Inventory build upDelivery deadlines

missed Without affecting line solution

Problems


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Seat Installation & The Hook


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Andon

A type of visual control

Displays the current

state of work It is one of the main

tools of Jidoka.

Allow speedycorrective action to be

taken by supervisors

when a problem arises

Glossary

.


18/29The Andon board


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Key control tool for Just-in-Time production.

Instruction for production and conveyance to check against

over production and to detect irregular processing speeds

The functional categories of Kanban are:

1-card kanban (referred to as Production Kanban)

2-card kanban (referred to as Withdrawal Kanban)

Part Specific kanban (used for single part family or grouping)

Route Specific kanban (used for mix production)

CONWIP (CONstant Work In Progress)

Kanban


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Kanban card


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Kaizen refers to the seriesof activities or practices

that focus upon continuous

improvement of processes.

Kaizen activities typicallyemphasize manual work

operations rather than

equipment.

Not an activity to beperformed by a specialist,

but can bein fact should

beperformed by all

employees at each job site.

Kaizen


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Manufacturing and conveyance of only what is needed, in the amount

needed.

Enhances efficiency and enables quick responses to change.

Just-In-Time


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Four Ss

Sifting (Seiri):Go through everything in thework area, separating and eliminating what

isnt needed.

Sorting (Seiton): Arrange items that are

needed in a neat and easy-to-use manner. Sweeping Clean (Seiso):Clean up the work

area, equipment, and tools.

Spic and Span (Seiketsu):The overall

cleanliness and order that result fromdisciplined practice of the first three Ss.


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Stop production lines in the event of problems.

This prevents passing on defects.

Build in quality at the production process.

At the same time, since defects are prevented automatically,

inspectors become unnecessary, which in turn results in significant

labor savings.

Jidoka

Heijunka / Leveled Production

Overall levelling in the production schedule with respect tovariety and volume of items produced in given time periods.

This is a prerequisite for Just-in-Time production.


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Unintended Acceleration:

Toyota's Recall Crisis

3.8 million cars recalled

Due to floor mats that could jam the accelerator pedal.

There appear to be two root causes for Toyotas quality problems.

1. Outgrowth of managements ambitions for rapid growth :-

Vision for rapidly increasing global market share

Sales grew faster than the company could manage

Priority over the companys traditional focus on quality

Expansion gave management little opportunity for adjusting

its systems and practices to accommodate such stronggrowth personnel were stretched increasingly thin

New contract engineers to boost engineering capacity as

much 30% of its development work


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2. Increasing complexity of the companys products

Typical auto sold in the United States or Europe has more than 60

electronic control units and more than 10 million lines of

computer code a fourfold increase over what was common a

decade ago

Lead time between exterior design approval and start of sales

was compressed to less than 20 months.

Accelerated design cycles strained the companys development

and production systems and pushed human resources to thelimit, creating the conditions for quality failures.

70% of the value added in Toyotas vehicles comes from parts and

subassemblies produced by its suppliers

On the other hand, quality experts say Toyota proved itself inept at

crisis management and marketing.

Toyota representatives reacted to the complaints in ways that

confounded marketing and crisis management experts.


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References

http://www.kellogg.northwestern.edu/kellogg-case-publishing/case-search/case-detail.aspx?caseid=%7Baba218a8-fb7d-48df-9453-86f4e36167d8%7D

http://www.toyota-

global.com/company/vision_philosophy/toyota_production_system/jidoka.html

http://www.businessinsider.com/toyota-paying-billions-because-of-marketing-failures-2012-12?IR=T

http://www.lean.uky.edu/reference/terminology/

http://sloanreview.mit.edu/article/what-really-happened-to-toyota/
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29/29THANKS YOU

Toyota Final

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