Toyota Motor Manufacturing (TMM)

Toyota Motor Manufacturing (TMM)

Presented byGroup No # 06

Bhushan Borgaonkar (111109)Kapil Mandloi (111125)

Lekha Shah (111126)Ppriyanka Gupta (111139) 1

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History:

• Toyota Motor Corporation planned to open an $800m plant in Kentucky, North America in 1985• As a result, Toyota Motor Manufacturing (TMM), USA began to operate in Georgetown, in 1988• Annual capacity of plant – 200,000 Toyota Camry Sedans• Camry – midsize family sedans market – constituted one- third of total American car market.

Toyota Camry 1992 and 2007

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Toyota Production System:

•Toyota’ s objective : Better car for more people• Post World War 2, people could not afford cars and low productivity of labor in Japan• So need to cut cost dramatically, still satisfy customers• TPS came into picture, aimed at elimination of WASTE

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Guiding Principles to facilitate TPS:

1) JIT Production: Produce only what was needed, only how much

was needed and only when it was needed. Deviation from true production needs was

considered as waste.

2) Jidoka: Making production problems self evident and

instantly stop the production as soon as the problem is detected.

Deviation from value addition was considered as waste.

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Prerequisites for TPS:

1) For JIT : Creating a FLOWING PRODUCTION PROCESS

2) For Jidoka : Standardizing the process and documenting the standard

3) Depends on human infrastructure

4) Kaizen : Continuous improvement in the standard way of doing a job

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The Georgetown Ramp Up

• In 1992, the plant employed 4000 people • Assistance from the skilled people coming from already operating plant in Japan.• Hiring and training program• Trainers and coach from Japan to Georgetown plant• One to one coaching, emphasis on TPS basics• Trainers/Coordinators remain in Kentucky for a few years• Aim at “Isolate problems from people, thereby enabling people to focus on solving problems”

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To Cincinnati

To Dallas

ToyotaGeorgetown Plant

Georgetown Plant

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Operations

Assembly

• Conveyor line comprised of 353 stations.

• Line cycle time of 57 seconds.

• Standardized work chart on each station.

• Colored tape marked out area.

• Concept of green, yellow and green lines.

• Andon pulls.

Production control

• Involved coordination with sales company, TMC and

local suppliers.

• Production planning order.

• Conducive to just in time concept.

• Planning process practiced were

1.Heijunka: balancing order in daily production

2.Kanban cards:

Quality control

• Tough quality control guidelines.

• 20 petrol inspectors on every shift.

• Provides instant feedback to direct operations.

• Shutting down the assembly line under Code

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• Being proactive: preempting the problem.

Purchasing

• Low cost suppliers.

• Improving the quality of the supplies.

• Cost data sharing.

• Providing the help to suppliers from kaizen

experts.

ProblemsProduct ProliferationOld Model 3 Style, 4 ColorsNew Model 5 Styles, 3 ColorsToo Many Variations at TMM for SeatsA run ratio of 85%: Number assembled actually / Number could be AssembledShortfall of 45 Cars per shiftLine is stopped due to defectives by pulling an andon cord

Too often or too rare?Defective car-seat combinations sent downstream

Continue to violate Jidoka?

• Costs of line stoppage• Stopping for 1 cycle of 57 seconds• Loss of revenue by one car• Loss of profit • Overtime results in higher cost and

comparatively less production• Ikko-nagashi couples work centers: Stopping

one is stopping all.

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Issues with

• Crowing in Clinic Area & Overflow Parking Area

• Assembly Area• Supplier• Problem with Front Seats: Cross Threading• Problem with Rear Seats

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Solutions

Thank You

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Questions???