Toyota - Supply Chain Management (Operation Research)

LOGO A

Presentation

on TOYOTA: Service Chain

Management

Company Overview

Incorporated in 1937 by Kiichiro Toyoda.

Earlier they used automatic loom, after 1937

Toyoda used chain conveyor into Assembly Line.

By 2004, it was the world’s second largest

manufacturer of automobiles.

With a combined sales of 6.78 million units in

the 2003 calendar year.

Produces a full range of models – from Mini-

Vehicles to Large Trucks.

What It Says

“We are never satisfied with where we are and always improve our business by putting fourth our best idea and efforts.”

- Toyota

Toyota’s Way Lean Manufacturing Process : is a manufacturing

philosophy which shortens the time between the customer order and the product build / shipment by eliminating sources of waste.

Supply Chain Management : defined as the way materials flow through different organizations from the raw material supplier to the finished goods consumer.

Demand Chain Management : defined as the coordination of information, material and financial flows in distribution of vehicles through the distribution channel, is also a powerful asset of the company.

Lean Manufacturing Concepts

Kaizen (“Continuous Improvement”)

Kanban

Just-In-Time

KAIZEN -> A system of continuous improvement in

which instances of waste are eliminated one-by-one

at minimal cost. This is performed by all employees

rather than by specialists.

KANBAN -> A small time that is the key control for JIT production.

JUST IN TIME -> It refers to the manufacturing and conveyance

of only ” what is needed, when is needed, and in the amount needed in the system”.

The Pull System

Continuous Flow Processing

Take Time

Take time

The

pull system

Continuous low

Respect for people Respect

• Respect for stakeholders

• Mutual trust and mutual responsibility

• Sincere communication

Teamwork

• Commitment to education and Development

• Respect for individuals : Realizing consolidated power

as a team

Winning with dealer

• Independence of dealer as a outside investor

• Winning jointly

• Encourage competition among the channel

Performance evaluation

• Sale of new and used car

• Sale from after sale service

• Customer satisfaction

• Number of showroom ,service shop and staff

• Profitability

TMC

(Japan)

* Sales and Marketing

* Vehicle Delivery

* Service Parts

* Production Control

* Logistics

* Purchasing

* Production Engineering

* Information Systems

* General Affairs

* Quality

* TSSC

* Production

* Quality

* Parts Ordering

* Logistics Operations

20,000 employees 6100 employees

Toyota Motor Sales

( US and Canada)

Toyota Motor Mfg.

North America

720 employees

North American

Mfg. Companies

TOYOTA MOTOR COMPANY

700 Overseas Supplier

308 Dealers

5 Part

centers

6500 Repair shop

400 jobber

11 Toyota Plants

34 Kyohans

134 Distributer

310 Domestic supplier

CUSTOMER

Service Part Distribution

E – Toyota Way

E-Business

• Gazoo.com

• Toyota’s Official Website

• G-Book.com

Telemetics

• 24-hours Road Assistance Services

• Car Search

• Remote Maintenance system

• Live Navigation Service

• Information Service

• Entertainment

• Communication Services

• E – Commerce Service

• Operator Support Service

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