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Toyota Motor Manufacturing (TMM) A case on Just-in-time and Total Quality Management TOYOTA - the Largest Car Manufacturer Toyota Camry Then (1992) and Now (2007) To Cincinnati Toyota Georgetown Plant To Dallas Georgetown Plant Georgetown Plant www.toyotageorgetown.com

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Toyota motor manufacturing tmm l.jpg

Toyota Motor Manufacturing (TMM)

A case on Just-in-time and Total Quality Management


Toyota the largest car manufacturer l.jpg
TOYOTA - the Largest Car Manufacturer


Toyota camry then 1992 and now 2007 l.jpg
Toyota CamryThen (1992)and Now (2007)


Slide4 l.jpg

To Cincinnati

Toyota

Georgetown

Plant

To Dallas



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Georgetown Plant www.toyotageorgetown.com


History of the plant l.jpg
History of the Plant

  • Ground breaking, May 1986

  • First Car, May 1988

  • Fujio Cho named the second president, Dec 1988

  • 1 millionth Camry, Oct 1993

  • 2 millionth Camry, Apr 1997

  • Camry #1 selling car in the US in 97, 98, 99, 00

  • Gary Convis named fifth president, Apr 2001

  • Camry #1 selling car in the US in 02, 03, 04, 05

  • Sixth generation Camry starts, Feb 2006


Overview of the production process l.jpg
Overview of the Production Process

  • ???? manufacturing, ????

  • ????, used for panels, bumpers, connections, protections

  • ????, shaping the steel coils into body parts

    • Uses ???? dies (analogous to cookie cutters)

  • ???? of the body

  • ????

  • ????

    • Trim

      • Heater, A/C, Wiring

      • Bumpers, Headliners

    • Chassis, underbody work, engine marriage

    • Final line, air bags, instrument panels, seats

  • Final test, ????



Doug friesen s problem l.jpg
Doug Friesen’s problem

A ???? run ratio of ??%: Number assembled actually / Number could be assembled

  • Line is stopped due to defectives by pulling an andon cord

    • Too often or too rare?

  • ????, defective car-seat combinations sent downstream

  • Defectives are due to ???? rotation, product ????, ???? ????/???? design

  • A substantial number of cars off-line with ???? seats or ???? seats.

    • Some cars wait ???? days for seats in the ???? area although ???? commits to send seats in a single shift.

      • Is the reordering of Ex.9 form readable?

      • Cars served FIFO?

    • What is the problem with the seats?



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Seat Problems

  • ????

  • ????

  • ????

  • ????

More problems with the front or back seat?


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A Test of Japanese

  • Andon

  • Ikko-nagashi

  • Heijunka

  • Jidoka

  • Kaizen

  • Kanban

  • Muda

  • Poka-yoke

  • Takotei-mochi

  • Tsukurikomi

What is violated at TMM?


A test of japanese14 l.jpg
A Test of Japanese

  • Ikko-nagashi: Lot size of one

  • Heijunka: Production smoothing to end up with a level plan

  • Jidoka: Do not pass the defects to downstream

  • Takotei-mochi: Worker flexibility

  • Tsukurikomi: Built-in quality inspection


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1. Line Stoppage

Setting of the stage: A worker pulls the andon cord, music starts, team leader comes.

TL: - What is the problem?

W: - ………….

TL: Decides how long the line should stop: 1 Cycle=?? seconds or more. If the problem is severe, TL calls the group leader.


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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 can be used to recover


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Continue to violate Jidoka?

  • Costs of line

    • Stopping for 1 cycle of ?? seconds

      • Loss of revenue by one car, $??,???

      • Deduct costs of ??%

      • Loss of profit of $?,???

    • Overtime can be used to recover

      • Cost of ?? seconds of overtime ??*??*??/????=$?.???/worker

      • How many workers stop and do overtime?

        • 1 team, 1 group, assembly line, paint line, …, entire plant?

        • Depends on the ????? inventory between work centers and the length of the stoppage.

          • Ikko-nagashi couples work centers: Stopping one is stopping all.


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2. Crowding in the overflow area

  • Can you read the reorder form in Exhibit 9?

  • Computerize the information flow between TMM and ???? ?

  • What is the benefit of dedicating an ???? area specific to seat problems?

  • Dealing with mistakes efficiently vs. Eliminating mistakes


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3. Assembly area

  • Job rotation, a problem source or a fix?

    • Is Takotei-mochi possible without rotation?

  • Hook, now made of ???? as opposed to ????

    • Personal experience: ???? interior front door handles in my 94 Corolla

    • $50,000 to improve the hook design

  • Build a seat safety inventory to reduce mismatches?


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3. Assembly area

  • Job rotation, a problem source or a fix?

    • Empowering the ????, ???? work force

    • Boredom is a source of errors, Reasonable ???? improve productivity

  • Hook, now made of ???? as opposed to ????

    • $50,000 to improve the hook design

      • Distribute the cost to cars

      • (1 broken hook per shift)*(2 shifts per day)*(1000 days for this Camry generation)

      • Cost per car is $??, reasonable?

      • What if the hook problem continues after the redesign?

      • Investigate/respond to hook design change

      • Why does not Japanese plant experience the same problem?

        • Does TPS work better in Japan? Does TPS work only in Japanese culture?

  • Build a seat safety inventory to reduce mismatches


4 supplier l.jpg
4. Supplier

  • Seat quality coming down

    • At least for the new models

    • Addition of Camry Wagon and more types of seats

  • Who is responsible for the seat defects

    • The supplier?

    • The transporter?

    • The TMM receiving?

  • Sharing the responsibility to find the root cause of the seat defects


5 seat mismatches rfid as a potential fix l.jpg
5. Seat Mismatches: RFID as a potential fix

  • See Exhibit 6 for the layout

  • ???? comes from main line

  • ???? comes from a feeder line

  • Both ???? and ???? are RFID tagged

  • When the tags do not match, the workers are alerted

  • This eliminates “some” errors

  • Implemented in conjunction with a seat supplier according to ChainLink Research (www.chainlinkresearch.com) webinar on January 10, 2007.


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How much of TPS is culture?How much of it is science?


Toyota is worried of its culture being diluted with fast overseas growth l.jpg
Toyota is worried of its culture being diluted with fast overseas growth

“… the hardest thing for Toyota’s new American employees to accept: those colored bar [performance] charts against a white bulletin board, in plain view for allto see.”

Latondra Newton, Toyota Employee in Erlanger, KY

New York Times Business Feb 15, 2007.

Aspiring Toyota factory leaders attend Toyota Technical Skills Academy (high school) in Toyota City, Japan. They study mechanical drawing/design .

A separate institution, Toyota Institute, prepares executives for Toyota Way. The institute sends off its executives to offices around the world as missionaries.



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Railway Tracks

To Oakland Harbor

To Fremont

To San Jose


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History/Products

  • Late 70’s oil crisis

  • GM closes Fremont, CA plant firing 6000 in 1982

  • Toyota approaches GM to set up Toyota production system at a GM plant, United Auto Workers accepts the deal

  • GM and Toyota put together $400M in 1984.

    • GM is the landlord, it owns the infrastructure

    • Toyota is the tenant

  • Nummi = New United Motor Manufacturing, Inc is born in 1984 as the unique example of a Toyota – GM joint venture

  • Products: Toyota Corolla, Tacoma Trucks, Pontiac Vibe (Toyota bottom, GM top) and Toyota Voltz (Toyota bottom, GM top, sold in Japan) , GM Prism until 13/12/01


Workers l.jpg
Workers

  • Nummi has about 4500 unionized workers

  • Workers are under two types:

    • Production, high school graduates

    • Maintenance

  • Workers work in teams of 4-6

  • Workers in a team rotate the tasks every 1-3 hours

  • Team leader is responsible for the rotation.

  • Team leader withdraws parts from the inventory (every 1-2 hours) and provides the tools as necessary

  • Workers make $17 per hour


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Capacity

  • Nummi has a cycle time of

    • 60 seconds for Corolla, 1 body

    • 82 seconds for Tacoma, 3 bodies

      • only cabin is produced at Nummi, the bottom and the back are bought from suppliers

  • Nummi works in two shifts

    • I: 6:00-14:30, II: 16:30-1:00

    • Each shift has 1 hour lunch/dinner break

    • Starting the first shift at 6:00 workers avoid heavy morning traffic

    • Two hours between shifts I and II is to allow for overtime after the first shift when necessary


Work flow l.jpg
Work Flow

  • Stamping: Forming metal (side, back, front) panels with presses

  • Body & Weld: Putting panels together

  • Paint: Paint inspection is the current bottleneck

    • Primer body paint applied by robots (chemically hazardous task)

    • Door jambs painted manually

  • Plastics: Making bumpers, inside panels

  • Assembly: Putting in tires, engine, seats, bumpers, harnessing. Cars , trucks on 2 km , 0.8 km conveyors

  • Cars contain Building manifest = BOM = Ingredients list at every step of these operations


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Just in time

  • Kaizen: continuous improvement

  • Kanban: replenishment every 1-2 hours

  • Jidoka: Assure 100% quality. Otherwise pull the Andon chord

    • 1000 times per shift

    • 9% of line stops are longer than 30 seconds

    • Line stops longer than an hour once every month

  • Muda: Waste to be eliminated

  • Genchi Genbutsu: Go to the source to learn and to solve the problems

  • This Japanese terminology is all over the boards in the plant


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Creative Tool / Work Place Design

  • Die change at the stamping in 3 hours

  • Tilted storage bins for ease of access

  • Collapsing storage boxes when empty

    • To reduce the empty box storage requirements in trucks returning to suppliers, say in Indiana

    • These boxes save about $10M annually

    • The worker who suggested the boxes earned several thousand points. 1 point = $1.

  • More info www.nummi.com


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To San Antonio by I-35

I-35 & I-410 Intersection

Southwest of San Antonio

I-410 Loop

Home of Tundra in San Antonio



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Appendix

Where is your favorite brand manufactured?


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All of Toyota Plants in the North America

Toyota. Cambridge

Corolla, Matrix, Lexus, Rav4

Toyota-Subaru. LaFayette

Camry

Nummi: Toyota-GM. Freemont.

Corolla, Tacoma, Pontiac Vibe

Toyota. Princeton

Tundra, Suquoia, Sienna

Toyota. Georgetown

Avalon, Camry, Solara

Toyota. Long Beach

Hino

Toyota. Blue Springs

Highlander

Toyota. Tijuana, Mexico

Tacoma

Toyota. San Antonio

Tundra


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All of Honda Plants in the North America

Honda. Alliston, Ca.

Civic, Acura, Odyssey,

Pilot, Ridgeline

Honda. Decatur

TBO in 2008

Honda. Marysville

Accord, Acura

Honda. Lincoln

Odyssey, Pilot

Honda. El Salto, Me

Accord


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All of Nissan Plants in the North America

Nissan. Smyrna

Frontier, Xterra, Altima,

Maxima, Pathfinder

Nissan. Canton

Quest, Armada, Titan, Infiniti, Altima


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All of Hyundai-Kia Plants in the North America

Kia. LaGrange

TBO in 2009

Hyundai. Montgomery

Sonata, Santa Fe


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All of Mercedes and BMW Plants in the North America

BMW. Spartanburg

Z4, X5, X6

M roadster, coupes

Mercedes. Tuscaloosa

M, R classes


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All of Ford Plants in the North America

Ford. Oakville, Ca.

Edge, Lincoln MKX

Ford. Dearborn

F-150, Lincoln Mark LT

Ford. Saint Paul

Ranger, Mazda B series

Ford. Saint Thomas, Ca.

Crown Victoria, Grand Marquis

Ford. Flat Rock

Mustang, Mazda 6

Ford. Wayne

Focus, Expedition, Lincoln Navigator

Ford. Chicago

Taurus, Mercury Sable

Ford. Avon Lake

Ford E Series

Ford. Kansas City

Escape, Escape Hybrid,

Mazda Tribute,

Mercury Mariner, F-150

Ford. Louisville

F-250, F-550, Explorer,

Mercury Mountaineer

Ontario, Michigan, Illinois,

Indiana, Ohio in Focus

Ford. Hermosillo, Mex. Ford Fusion, Lincoln MKZ, Mercury Milan

Ford. Cuatitlan, Mex.

F-150, 250, 350, 450, 550,Ikon


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All of Chrysler Plants in the North America

Chrysler. Sterling Heights

Dodge Avenger, Chrysler Sebring

Chrysler. Brampton, Ca

Chrysler 300,

Dodge Challenger,

Dodge Charger

Chrysler. Warren

Dodge Ram, Dakota, Mitsubishi Raider

Chrysler. Detroit-Jefferson North

Jeep Grand Cherokee and Commander

Chrysler. Detroit-Conner Ave.

Dodge Viper, SRT 10 Roadster

Chrysler. Windsor, Ca

Dodge Grand Caravan, Chrysler Town

Chrysler. Newark

Dodge Durango, Chrysler Aspen

Will close in 2009

Chrysler. Belvidere

Dodge Caliber, Jeep Compass, Jeep Patriot

Chrysler. Toledo

Jeep Liberty, Dodge Nitro

Chrysler. Fenton-North

Dodge Ram

Chrysler. Fenton-South

Grand Voyager, Grand Caravan, Cargo Van

Ontario, Michigan, Illinois,

Indiana, Ohio in Focus

Chrysler. Saltillo, Mex.

Dodge Ram

Chrysler. Toluca, Mex.

Chrysler PT Cruise, Dodge Journey


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All of GM Plants in the North America

GM. Oshawa, Ca

Chevy Impala, Buick Allure, Chevy Silverado, GMC Sierra.

Trucks will stop in 2009.

GM. Orion

Pontiac G6,

Chevrolet Malibu

GM. Lansing-Grand River

Cadillac E-SRX

GM. Lansing-Delta Township

Buick Enclave, Saturn Outlook, GMC Acadia

GM. Flint

GMC Sierra, Chevy Silverado, Chevy - GMC medium trucks.

GM. Pontiac

Chevy Silverado, GMC Sierra

GM. Detroit

Buick Lucerne,

Cadillac DTS

GM. Janisville

Chevy Tahoe, Suburban, GMC Yukon

Will stop in 2010

GM. Wilmington

Saturn L series, Pontiac Solstice

GM. Fort Wayne

Chevy Silverado, GMC Sierra

GM. Fairfax

Chevy Malibu, Malibu Maxx, Saturn Aura

GM. Bowling Green

Cadillac XLR,

Chevy Corvette

GM. Moraine

Chevy Trailblazer, GMC Envoy, Oldsmobile Bravada, Isuzu Ascender, Saab 9-7X

Will stop in 2010

GM. Wentzville

Chevy Express, GMC Savana

GM. Lordstown

Chevy Cobalt, Pontiac Pursuit, G4, G5

GM. Spring Hill

Saturn Ion and Vue

Currently down

GM. Doraville

Chevy Uplander,

Pontiac Montana

GM. Arlington

Chevy Tahoe, Suburban,

GMC Yukon,

Cadillac Escalade

Ontario, Michigan, Illinois,

Indiana, Ohio in Focus

GM. Shreveport

Chevy Colorado, GMC Canyon, Isuzu brands, Hummer H3

GM. Ramos Arizpe, Mex.

Pontiac Aztek, Chevy Cavalier, Chevrolet Checy, Pontiac Sunfire, Buick Rendezvous

GM. Silao, Mex.

Chevrolet Suburban, Chevrolet Avalanche, GMC Yukon, Cadillac Escalade

GM. Toluca, Mex.

Chevrolet Kodiak Truck

Stopping in 2008


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