Operation Management Toyota Motor Corporation

Toyota Motor Toyota Motor Corporation Corporation

SPRING 2011 OM5202 OPERATIONS MANAGEMENT

Instructor: Dr. Ha Jin Hwang , Instructor: Dr. Ha Jin Hwang , Ph.D.Ph.D.

Prepared by:Prepared by:Mussina Madina 20084630Mussina Madina 20084630Bakhit Sultanbayeva 20071498 Bakhit Sultanbayeva 20071498

OUTLINEOUTLINE1. Introduction: Company Overview2. OM Decisions: 2.1 Toyota Production System 2.2 Total Quality Decision 2.3 Process and Capacity Design 2.4 Human Resources 2.5 Supply Chain 2.6 Inventory 2.7 Maintenance3. Toyota car’s problems 4. Conclusion& Recommendations

Introduction: Toyota overview Toyota Motor Corporation (TMC) is a Japan-based and

multinational company , the world's largest automaker by sales, and is the second largest automaker in the United States by sales

Toyota also owns the Lexus and Scion brands, and has a majority stake in Daihatsu and Hino Motors and minority stakes in Fuji Heavy Industries (Subaru) and Isuzu Motors

Toyota Motor Corporation was established in 1937 by Kiichiro Toyodo on the basis his father’s company Toyota Industries

2010, Toyota has 522 consolidated subsidiaries and 226 affiliates

Toyota Production System TPS emphasizes continuous improvement, respect for

people, and standard work practices Just-in-time is producing only what's needed and

transferring only what's needed. "pull" system where process are based on customer’s

demand. "pull" system tools, including the kanban (information

card), andon (display board), and poka yoke (error prevention) were used to implement the pull system.

Toyota Production System

It is important to halt the process, because defective items will move on to the next stage

That's where the concept of visual control comes from-the andon electric light board

When the problem is clear then use kaizen-"improvement" or "change for the better.

“Identify activities that add value to raw material, and get rid of everything else.”

Total Quality Management

TQM is searching for superior quality from the development stages to manufacturing a product.

1. Philosophy2. Planning3. Production4. People

Process and Capacity Design

The Right Process Will Produce the Right Results

Principle 1 Work processes are redesigned to eliminate waste (muda)

Principle 2 Use "pull" systems to avoid overproduction

Principle 3 Level out the workload

Process and Capacity Design

Principle 4 Build a culture of stopping the production line to fix problems

Principle 5 Standardized tasks and processes are the foundation for continuous improvement.

Principle 6 Use visual control so no problems are hidden

Principle 7 Use only reliable, thoroughly tested technology

HUMAN RESOURCES

Toyota developing people booklet

•Toyota – developing people booklet•Toyota Way 2001•Toyota Institute

INVENTORY

1) F Design Flow Process - F Redesign/relayout for flow

- L Reduce lot sizes - O Link operations - W Balance workstation capacity - M Preventive maintenance

- S Reduce setup Times2) Q Total Quality Control - C worker compliance

- I Automatic inspection - M quality measures

INVENTORY

- M fail-safe methods - W Worker participation

3) S Stabilize Schedule - S Level schedule

- W Establish freeze windows - UC Underutilize Capacity

4) K Kanban Pull System - D Demand pull

- B Backflush - L Reduce lot sizes

INVENTORY

5) V Work with Vendors - L Reduce lead time

- D Frequent deliveries- U Project usage requirements - Q Quality expectations

6) I Further Reduce Inventory in Other Areas - S Stores

- T Transit- C Implement carrousel to reduce motion waste - C Implement conveyor belts to reduce motion waste

INVENTORY

7) P Improve Product Design - P Standard production

configuration - P Standardize and reduce the number of parts - P Process design with product design - Q Quality expectations

MAINTENANCE

Level IThis is a dealer recommended serviceReplace Engine OilReplace Oil FilterCheck and Top Off All Fluid LevelsInspect Condition of Hoses and BeltsInspect Complete Disc Brake SystemSet Tire PressureInspect All Lighting Systems

MAINTENANCELevel IIThis is a manufacturer required serviceReplace Engine OilReplace Oil FilterCheck and Top Off All Fluid LevelsInspect Anti-freeze ProtectionInspect Condition of Hoses and BeltsPerform Tune-up Without Parts (all related parts and specifications are checked)Inspect Engine Idle and TimingInspect Engine and Transmission for External Fluid LeaksCheck Alignment by Test DriveRotate Tires and Balance Fronts Set Tire Pressure

MAINTENANCELevel IIIThis is a manufacturer required service Inspect Steering System Including Alignment Check by Test DriveInspect Front Suspension and Ball JointsRotate Tires and Balance Front TiresSet Tire PressurePerform Tune-upReplace Spark PlugsReplace Air FilterClean Throttle Plate (E.F.I.)Inspect Condition of Hoses and BeltsInspect Operation of Horn, Wipers, Lights, and HeaterLube All Locks, Latches, and HingesRoad Test Vehicle for Performance Quality Check

MAINTENANCELevel IVInspect Drive Shaft Boots & Grease

Repack Front Wheel Bearings (where applicable)Set Tire PressureInspect Exhaust Pipes and MountingsPerform Tune-upReplace Spark PlugsReplace Fuel FilterReplace Air FilterClean Throttle Plate (E.F.I.)Inspect Camshaft Drive Belt (timing belt)Inspect Fuel Lines and Connections, Fuel Tank Vapor Vent System Hoses and Fuel Tank Band

Toyota car’s problems

Toyota RAV-4 2002 year of production

TransmissionEngineElectricalOther

Toyota Camry 2002 year of production

TransmissionEngineAC HeaterOther

Toyota Camry 2007 year of production

Toyota Corolla 2002 year of production

References

http://www.toyota.com/ http://www.toyotaproblems.com/ http://www.toyota-global.com/ http://www.xtimeline.com/evt/view.aspx?id=76357 http://www.toyota.ca/ http://hbr.org/product/toyota-motor-manufacturin

g-u-s-a-inc/an/693019-PDF-ENG http://www.strategosinc.com/toyota_production.h

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