Toyota A global Auto Manufacturer

Toyota

Submitted By: GROUP 2Supply change Management

INTRODUCTION

GM, Ford and Chrysler almost dominated the global market in early twentieth century

1994 : Replaced Chrysler2003 : Replaced Ford and became the 2nd largest global manufacturer2008 : Replaced GM to become the largest automaker globally

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.

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.

Based on

To provide best quality, lowest cost, and shortest lead time through the eliminating of waste.Established on two concepts:JIDOKA: Automation with a human touch, means that when the problem occurs, the equipment stops immediately, preventing defective product from being produced.JUST-IN-TIME: In which each process produces only what is needed by the next process in a continuous flow.

Toyota PRODUCTION SYSTEM(TPS)1. JIDOKA: Highlighting problemsMeans that a machine safely stops when the normal processing is completed

Operators can confidently continue performing work at another machine, as well as easily identify the problem cause and prevent its recurrence.

TPS Concepts

2. JUST IN TIME: Complete elimination of waste

When a order is received, production instruction must be issued to the beginning of the production line as soon as possible

The assembly line must be stocked with small numbers of all types of parts so that any kind of vehicle ordered can be assembled

The assembly line must replace the parts used by retrieving same number of parts from the parts-producing process

The preceding process must be stocked with small no. of all types of parts and produce only the no. of parts required in next process

TPS ConceptsKanban systemUnique production control method

Idea borrowed from super markets so called super market method

When a process goes to the preceding process to retrieve parts, it uses Kanban signs to communicate what parts have been used

Reduces excess production

Sabio bernard

OUTCOME OF TPSReduction of lead time to a great extent

Improvement of quality

One of ten largest companies in the world

Largest car manufacturer

Low cost

Fast response

Toyota Supply ChainSuppliersParts Assembly plantInbound logisticsInspectionDealersOutbound logisticsProductionCustomers

11Suppliers provide thousands of parts and components that go into the vehicle.Parts and components are received from Tier 1 suppliers through inbound logistics.Supplier chain contains several levels tier 1,tier 2 and so on.Since Toyota relies on JIT it has fewer but reliable tier 1 suppliers. Eg : Denso, Bridgestone etc

Suppliers

Inbound LogisticsCompany establish partnership with third party logistic providersCompany organizes many of its suppliers into clusters based on geographic location.Parts are picked up from those suppliers by trucks on a milk route and delivered to regional cross dock.

At cross dock, parts are unloaded and staged for each assembly plant and then loaded to trucks which take parts directly to each plant.After the parts are unloaded, the truck is reloaded with the corresponding empty returnable containers.Returnable containers flow in reverse route

Network design-to analyse locations of suppliersDetermine which cross dock is located nearest to suppliers Transport to plants and containers travel in reverse routeTransport parts to cross docks and stage them for each assembly

Production

Vehicles are produced at the final assembly plant from the parts provided by hundreds of suppliers.

The plant is subdivided into shops. The vehicle is born in the body shop where the frame and body are formed.

The body parts are stamped in the stamping shop by presses.

The body shop is where numerous robots are used to weld the body parts together.

After body being assembled, it moves to paint shop

After painting ,it moves to final line where supplier parts are installed to make finished vehicle.

Final Inspection is done and moved to yard.

Dealers :Responsible for selling the vehicles produced by the manufacturer to the retail customers.Toyotas sales model is designed so that a high percentage of vehicles is sold from a relatively low level of dealer stock

Vehicles at marshaling yard Accessories installationFinal quality assuranceTransport to dealersOutbound logistics Effect of supply chain on the companyConsidering suppliers and dealers as partners, sharing profits with them, has helped to manage supply chain efficiently.

By leveling out production and synchronizing with demand and supply has helped to maintain stability in supply chain.

By effective demand forecasting , production and supply chain activities are managed effectively .

Suppliers are categorized as clusters based on geographic location and single truck picks up part from the cluster increasing the efficiency of supply chain..

Toyota takes responsibility for procuring parts from supplier which increases reliability on inbound logistics.

ConcernsToyota took its single source strategy to risky extremes without proper risk management oversight, need closer observation on tier-2 and tier-3 suppliers.

Bigger expansion means working with unfamiliar suppliers who may not have proper understanding of Toyota culture.

Toyotas spirit of making things is being spread through out the world asThe Toyota way18