Toyota Motor Manufacturing Om Group 8

Toyota Motor Manufacturing U.S.A. Inc.

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Group 8 Anurag Bajpai PGP/15/268 Sujit Kumar Mandi PGP/15/322 Harsha PGP/15/284 subtitleSri style Sakthi PGP/15/315 Pragnanand Mishra PGP/15/301 Dhivahar PGP/15/273 Hariprasad PGP/15/314

3/10/12

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Background Toyota - Japanese automobile company  In 1985 TMC (Toyota Manufacturing Corporation) unveiled its plan to open $800 million greenfield plant in Kentucky  First Japanese car manufacturer in USA  Production began in July 1988 in Georgetown  Annual capacity: 200,000 Camry sedans  Model change and new models by 1992  Midsize family sedan market constitutes one-third of American car market  Camry sales increased 20% to 240000 after 3/10/12 model change in 1991 

Toyota Production System  Follows

the Toyota Production System (TPS) to meet diverse customer preferences with flawless quality, at an affordable price and with perfect timing. 3/10/12

Toyota Production System (Contd.)  Human ◦

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Infrastructure:

Good Thinking, Good Products: Coaching by senior management and internal training Five Why Approach: Get to the root of the problem Kaizen: Change for the better

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Assembly  Assembly

performed along 353 stations on a conveyor line  Assembly was over 5 miles in length  Connected Trim lines, Chassis lines and final assembly lines  Line cycle time: 57 seconds  769 team members paid an average of $17 an hour plus 50% for overtime ◦

Team size of 5: 1- team leader, 4 – team members

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team member and one team lead per team  Regular shift duration: 525 minutes 3/10/12

Assembly (Contd.)  Standardized

work chart adjacent to each work station showing cycle time and work tasks  Colored tape to mark out area of the floor to specify where everything in sight belonged  4S: Sift, Sort, Sweep, Spic-and-Span  Hence, any deviations stood out  Green line and red line to mark beginning and end of each station. Yellow line indicates 70% completion  Behind schedule while behind yellow line or any issues, andon chord pulled. 3/10/12

Production Control  To

feed necessary parts into TMM operations so that right cars are delivered to sales company  Variations in models: 11 exterior colors, 29 interior variations, 30 other options. Sedan and wagon models  Forecast received from TMC  JIT was reflected in two ways: Heijunka : Balancing the total order

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 Relieves suppliers of surges in demand  Help prevent bottlenecks and inventories ◦

Kanban cards: Smooth information flow  A ‘signboard’ used for each part which3/10/12 included

Quality Control 

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Sets tough quality standards and inspecting every vehicle against those. Follows through with customers’ experience Instant feedback to direct operations ◦ Check assembly quality before cars went off for shipping and “returned” problematic cars to the assembly group ◦ “Clinic area” used to repair such problematic cars ◦ Max of only 8 cars possible at any given time in clinic area ◦ Assembly line shutdown under Code 1 if 8 cars present in the clinic area Proactive approach – preventing problems from occurring in the first place Solve assembly quality problems and work out part quality with suppliers 3/10/12

Purchasing  Focused

on managing costs over the long

haul  Deal with only “low cost” suppliers  Needed cost estimation for the suppliers  Improve suppliers with the help of kaizen experts

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Seat Installation Procured seat assemblies from only one vendor, Kentucky Framed Seat (KFS)  Requirements for each model were sent using a transmitter on the cars emerging from the paint line which sent information to printers at TMM and KFS. This enabled seats to arrive in the right sequence  All pieces at end of KFS lines – strapped together, 100% inspected and loaded into trailer in same order  Most expensive of all purchased parts - $740  Every 57 Sec - Seat set exactly matching its 3/10/12 

Seat Installation – Contd  Seats

put onto the overhead conveyor synchronized with the assembly line  After 250 mts, seats reached rear seat loading workstation on the final assembly line segment called Final 1  Here a rear seat was lowered down every 57 seconds which exactly matched the Car and model type  Meanwhile, the front seats automatically shifted aside to make room for the next rear seat  Front seats then continued on the conveyor 3/10/12 line and were installed at a workstation

Problems faced by TMM  Problems ◦

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with seats

Unavailability of seats or wrong seat assemblies delivered due to which several unfinished cars dating back by 4 days still in Overflow parking lot High occurrence of material flaws Breakage of hook during rear side bolster installation Increase in the number of andon pulls especially in rear seat assembly Run ratio reduced from 95% to 85% in less than a month – shortfall of 45 cars per shift to be made up by overtime 3/10/12

ANALYSIS  From

Exhibit 8 For defects :  Toyota was responsible for Seat Bolster defect  While KFS for remaining defects.

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Analysis  From

Exhibit 7  Major cause of Seat Quality defect varies each month  A new defect Missing bolster suddenly emerged as no 1 problem from Apr’92 (Camry Wagon Introduction)

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ANALYSIS  From

Exhibit 10  No. of Andon pulls increases in 2nd Shift as the month passes

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Recommendation  Analyze

hook problem  Better synchronization with KFS  Need to Work with KFS to reduce seat defects.  KFS may be having problem in his unit ,related to capacity or quality control which need to rectified  Else look for better supplier or  Go for inspection of seat before arrival. (against JIT) . 3/10/12

Thank You…

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