Toyota

A global Auto Manufacturer

Supply change Management

By SABIO BERNARD
Sem3. MBA PT.CET

TOYOTA
Introductions Summary Question & Answer

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INTRODUCTION
Toyota motor corporations vehicle production system is a way of making things that is referred to as lean manufacturing system. The TPS (Toyota Production System) was developed to improve Quality and Productivity. Objective: making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible.

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Origin of Toyota Production System

Sakichi Toyoda(1867-1930 ) Automatic loom Kiichiro Toyoda(1894-1952) Used chain conveyor into the Assembly line.

Eiji Toyoda(1913) Implementation of Jidoka and JIT.

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Based on

Supply chain management in toyota

vendor 1. Local parts manufaktur dealer customer

Local Parts

Receiving Dock

PC store

Production

Dealer

(3)Receiving dock pc storeproduction

(4)dealer

(5)customer

2. Import parts
1 and 2 Linked between internal and vendor STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERY KANBAN:- A small time that is the key control for JIT production

Local Parts

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Primary activities

Inbound logistics
toyota in obtaining raw materials, they do not process their own, or create your own, they use a third party, they handed the small parts, such as leather seats, steering wheel, tire, to local companies, but to the nature of strategic importance, like a machine, they import from Japan (center), it's all to maintain the quality standard that was created toyota, Toyota put on the assembly system in the process, it has led to toyota raw material supply for its assembly,, need a place to store supplies, or warehouse, to avoid piling up too many assets, Toyota to forecast demand,

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Internal Logistics in toyota

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Primary activities

Operations
Transforming inputs into the final product form, in assembly and manufacturing (its production) Toyoto use various systems to be efficient and effective, we could also call it, TPS is the Toyota Production System, the concept of the Toyota Production System can be described as a complete building which consists of various components are integrated. The building was also called a The House of Toyota.

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Primary activities oprations

JUST IN TIME : One of the two main pillars of TPS. It refers to the manufacturing and conveyance of only what is needed, when is needed, and in the amount needed in the system.
1. The Pull System 2. Continuous Flow Processing 3. Take time

JIDOKA : One of the two main pillars of TPS. It refers to

the ability to stop production ,by man or machine.( equip malfunction)

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PRIMARY ACTIVITIES

Outbound Logistics
Collecting, storing and distributing the product to buyers

output of the production process at the plant, is the finished product,, a car, the car is directly sent to the toyota dealer,, it's for local, or a region (not crossing the sea in distribusianya, if sending more distant or export,, its delivery using container.

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PRIMARY ACTIVITIES

Marketing and Sales

Providing a means and incentive which allow buyers to purchase the product

Application of Indirect Channels Distrubusi TOYOTA CORPORATE ,Toyota Motor Company was founded in 1937 by the Toyoda family. In the application of the Toyota Company or its product distribution channels to use indirect distribution networks which use the Company Toyota dealer or distributor

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PRIMARY ACTIVITIES

Service
Providing service to enhance or maintain the value of the product The Best Total Ownership Experience 'is a principle that is always carried by Toyota at each line, starting from the central office to the Toyota dealership on every spread in India . Their concept is the customer number one, so that makes them always trying to meet customer needs and continuously improve services. parameters set 6 pieces, among others: the quality of service, type of problem, the service is user friendly, service advisor, service initiation, service delivery and in-service experience

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SUPPORT ACTIVITIES

Firm infrastructure(facility)
infrastructure owned by Toyota factory is very modern and sophisticated, is a robotic system with humans as the operator,, all the production support until the sale is available with either situation, the factory to the dealer,,

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SUPPORT ACTIVITIES

HUMAN RESOURCE MANAGEMENT

Toyota to this day has approximately 300,000 employees worldwide, and nearly 5000 in INDIA, in placement or acceptance of an employee, the company held a test continued with the training, according to its disciplines and expertise,

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SUPPORT ACTIVITIES

TECHNOLOGY DEVELOPMENT
Torrance (DP) - As one of the world's largest manufacturers, Toyota is very concerned with the safety of its customers. That is why Toyota did not stop doing research and development of safety technology.

Here are four technology from Toyota:

Pre-Crash Safety (PCS) with collision-avoidance assists Pop-up Bonnet Adaptive Driving Beam Emergency response technology

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Competitive advantage different strategy

The 14 Principles of the Toyota Way
Book : The toyota way by jefrey k lingker 1. 2. 3. 4. 5. 6. 7. 8. Long term philosphy Right process, right results Use pull sytem to avoid over production level out the work load Build a culture of stopping to fix problems, to get quality right the first time Standardise task are the fondations for continuous improvement and employees empowerment Use visual control so no problems are hidden Use only reliable thoroughly tested teghnology that serves your people and processes .grow leaders who thoroughly understand the work, live philoshpy and teach it to others Develop exeptional peopel and teams who follows yours companies philosphy Respect your extended network of patners and supplied by challenging them helping them to improve See for yourself to thoroughly understand the situation Make decision slowly by consensus thoroghly considering all options, implement decision rapidly Become learning organitation thorough relentless reflections and continous improvement

The last award for excellence in getting Toyota product

1. 2. 3. 4. 5. 6. 7. Best Sedan (Toyota Camry) Best Mid Sedan (Toyota Altis), Best Mini Sedan (Toyota Ethios ), Best Low SUV (Toyota Fortuner ) , Best MPV Diesel (Toyota Innova) Best PR Team Best Website

9.
10. 11. 12. 13. 14.

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summary
Toyota motor corporation is Japan's top auto manufacturer and has experienced significant growth in global sale over the last 2 decades. A key issue facing Toyota is the design of its global production and distribution network. Part of the design of its global strategy is to open factories in every market it serves

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Continue..
Toyota redesigned its plants so that it can also export to market that remain strong when the local market weakens. Toyota called this strategy global complementation Whether to be global or local is also an issue for Toyotas parts plants.

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Continue
Should they be designed for local consumption or should be few parts plants globally that supply multiple assembly plants ? For any global manufacturer like Toyota, one must address the following question regarding the manufacturer and capability of the supply chain.

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uestion
&

A
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nswer

 Apply its global complementation strategy to its part plant. Each plant should be designed with capacity to supply its regional factories

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Continue.
Toyota has around 45 plant globally to cater the demand of customers. Their plants have flexibility to manufacture their various models from the same plant. They have highest capacity at its plant located at CANADA having capacity of 18000cars / month. All other facilities are having an average capacity of around 10000 cars/month.
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2. Should plant be able to produce for all markets

or only specific contingency market?

Flexibility to supply other markets when their local market demand is weakened. Their plant should able to supply atleast one more market / region.
Their plants are sufficient enough to cater the local demand as well as the global demand. During inflation or deflation in economy, they can manage their global operation to survive in the market by promoting low manufacturing cost plant operations.
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3. How should markets be allocated to

plant and how frequently should this allocation be revised ?
Standard allocation should be optimized during the planning phase. Adjusted when necessary, reviewed either annually or twice in a year.

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4. What kind of flexibilities should be build

into the distribution system?
Optimized regionally between the factories and their supplying parts plants. It will be necessary for cost effective distribution to occur between plants and factories to non local markets.

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5. What action may be taken during product design to facilitate this flexibility ?
Uniformity among global products for flexibility among market. Product design engineers should craft elements that both maximize uniformity and satisfy local needs.

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Thank you..
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