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

manufaktur

dealer

customer

1. Local parts

Local Parts

Receiving PC store
Dock

2. Import parts

Local Parts

Production

(3)Receiving dock pc
storeproduction

Dealer
(4)dealer

(5)custom
er

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

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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.
9.
10.
11.
12.
13.

The last award for excellence

in getting Toyota product

Long term philosphy

1. Best
Right process, right results
2. Best
Use pull sytem to avoid over production
3. Best
level out the work load
Build a culture of stopping to fix
4. Best
problems, to get quality right the first
5. Best
time
6. Best
Standardise task are the fondations for
continuous improvement and employees
7. Best
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,
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implement decision rapidly

Sedan (Toyota Camry)

Mid Sedan (Toyota Altis),
Mini Sedan (Toyota Ethios ),
Low SUV (Toyota Fortuner ) ,
MPV Diesel (Toyota Innova)
PR Team
Website

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

1.

WHERE SHOULD THE PLANT BE LOCATED AND

WHAT DEGREE OF FLEXIBILITIES SHOULD BE BUILD
EACH
?
WHAT CAPACITY SHOULD EACH PLANT HAVE ?

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

market?
contingency
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
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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
system?

into

the

distribution

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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