Brian Krista Sembiring

Timotheus Bryan
Ardian Prananto
Amalia Rusadi
Background
• In 1985, Toyota Motor Corporation, $800 million
greenfield plant in Kentucky.
• In 1988, Toyota Motor Manufacturing (TMM), U.S.A,
began production on a 1,300 acre site in
Georgetown, near Lexington.
• A replacement of Japanese import model.
• Annual Capacity 200,000 Toyota Camry sedans.
• Sales up more than 20% since model change in
1991.
• In 1992, expected to supply 240,000 all-new Camry.
• In 1992, TMM started producing wagon version of
the new Camry on worldwide plant network.
Toyota Production System
• Focused producing cars with flawless quality.
• Delivering cars at an affordable price with perfect timing.
• Aimed at cost reduction by eliminating waste.
• Overproduction: inventory-warehouse storage space,
forklift trucks, material handlers, computers.

• Provided two guiding principles:

• Just-In-Time (JIT) production
• Jidoka

• Depending on human infrastructure “Good Thinking,

Good Products”.
• Kaizen: Change for the better.
The Georgetown Ramp Up
• Priority in transplanting TPS to Georgetown:
 TMC assigned TMM the 1987 Camry being mass-
produced in Tsutsumi plant in Japan.
 Replicate the Tsutsumi line at TMM.
 It set a deliberately slow ramp up schedule.
• TMC sent around 100 Tsutsumi people to
Georgetwon.
• Every TMM manager paired with a coordinator
from TMC.
• Each coordinator charged to develop their
counterparts only by persuasion.
• In 1992, Georgetown employed over 4,000 people,
representing $150 million in annual payroll.
 Georgetown Operations
Assembly:
• Performed along 353 stations on a conveyor
line
• Over 5 miles in length
• Consisted of several connected line segments:
 The trim lines, Chassis lines, Final assembly
lines.
• Assembly and part handling required 769 team
members.
 A team usually had 4 members and 1 team
leader.
 Georgetown Operations
Assembly:
• Doug Friesen worked with 10 assistants
managers and 46 group leader to supervised
team leader and team members in two shifts.
• A colored tape and promote ”4s” (sift, sort,
sweep, spic-and-span) to marked out areas
specify everything insight.
• A green line, a red line and yellow line marked
the beginning, the end of each work station
and a point by which 70% of the work had to
be completed.
Production Control
• Feed necessary parts into TMM
operations.
• Involve coordination with TMC, sales
company and local suppliers.
• PC relied on forecasting and planning
that TMC performed for worldwide
markets.
• A revised from Production Planning
Order (PPO) to Total Vehicle Order
(TVO).
Production Control
• The Planning process reflected JIT
principles in two ways:
 The practice of heijunka (leveling):
 Spreading out the demand for parts as evenly
as possible relieved suppliers of a surge of
workload.
 Facilitated their JIT production.
 Kanban cards (name plate):
 Only triggered part production.
 Included part code number, batch size, delivery
address.
Quality Control
• Setting quality standards
• Inspecting every vehicle
• Following through on customer’s
experience with shipped vehicles.
• Support Assembly group to solve
quality problems and work out
quality problem with suppliers.
• QC served two functions:
 Providing instant feedback to direct
operations including final assembly.
 Proactive: preventing problems from
occurring in the first place.
Purchasing
• Managing costs over the long
haul.
The Seat
• Manufacturing and Installation:
• Seat supplier was Kentucky
Framed Seat (KFS).
• Operated on a system of
sequential pull.
• Every 57 seconds, a seat set
exactly matching its model type
and interior color popped up by
the side of the line.
The Seat
The Supplier:
• In 1986, KFS had been a rare supplier
to Toyota’s multi-vendor policy.
• In 1987, KFC applied it-self to learning
as much as it could from TMC’s
Japanese seat suppliers.
• KFS got helped from TMC’s kaizen
expert:
 Install visual controls
 Slash work-in-process inventory
 Reduce assembly labor content
 Master quick changeovers
Signs of Problems
• The old model Camry seat had three styles and four
colors.
• The 1992 Camry offered only three seat colors and
had five styles.
• Problems intensified:
 TMM launched the Camry wagons and become the sole
source.
 The wagon models added eight seat variations for North
America.
 For Europe added another 10 variation.
 Another 18 seat variations added to export to Japan and
the Middle east.
 The run ratio was down to a meager 85% from 95%.
 A shortfall of 45 cars per shift.
May 1 1992
• QC meetings between TMM and
KFS
• The group found 18 vehicles with
various seat problems
 The only problem they could think of
was occasional incidents of cross-
threading, that is, when a team member
shot a bolt at an angle
 Rare incidents when someone would
accidentally damage the seat covering
with hand tools
Case Problem 1 : Ardian Prananto
Explain the Toyota Production System approach and integrative
thinking in determining the main problem for this case study.
Identify the main problems. Define the waste in Toyota’s lean
production. Give an example to support your answer. Do you
agree that the operation in Toyota Motor Manufacturing covers all
the lean supply chain activities? Explain your answer.
Toyota Production
• Melalui Toyota Production System,
perusahaan dapat menekan Cost dan
meningkatkan efisiensi pada Lini produksi
hingga distribusi.
• Memproduksi barang dengan Kualitas
tinggi namun Cost yang rendah.
• Cost reduction terutama dengan
menghilangkan Waste.
• 2 Pilar dalam Toyota Production System :
1. Just In Time
2. Jidoka
Just In Time
• JIT hanya memproduksi / Memesan komponen hanya pada
saat yang dibutuhkan.
• Ditujukan sehingga tidak menimbulkan cost tambahan untuk
merawat (Maintain) barang yang menumpuk di Warehouse,
seperti butuhnya Manpower yang banyak untuk mengatur
warehouse karena penumpukan barang yang hanya
menimbulkan Waste.
Jidoka
• Jidoka merupakan sebuah tool untuk membantu pendeteksian
masalah dan membantu kontrol secara visual dengan segera.
• Contoh aplikasi adalah dengan menggunakan sistem Andon
• Sistem Andon akan berbunyi apabila pihak bagian Assembly
Line menemukan sebuah kecacatan dalam produksi.
• Bunyi sistem Andon akan menarik perhatian Team Leader dan
managemen untuk menginspeksi kecacatan & masalah pada
produksi.
JIT & Jidoka
• Kedua Sistem JIT dan Jidoka sangat bergantung terhadap Infrastruktur pada Human
Resource.
• Berpegang teguh dengan Slogan “Good Thinking, Good Products”
• Sehingga Karyawan dapat berpikir dengan cepat untuk menyelesaikan masalah.
• Dalam kasus, Karyawan Plant Toyota di Amerika serikat diberi training untuk Toyota
Production System yang dilakukan oleh Karyawan dari Plant di Jepang.
Masalah pada Case
• Masalah pada Case adalah adanya kecacatan pada
komponen Kursi mobil Camry yang diadakan oleh
supplier (KFS)
• Kecacatan pada kualitas mengakibatkan
menumpuknya mobil setengah jadi yang menunggu
Kursi pengganti dari supplier.
• Meningkatnya Varietas pada Jenis kursi untuk tiap
market yang berbeda.
• Merupakan komponen yang termahal yang disupply
oleh supplier
• Mengakibatkan Delay pada pengiriman Mobil Camry
Waste dalam Toyota
• Waste dalam Toyota berupa Over
produksi komponen-komponen yang
mengakibatkan Biaya-biaya tambahan
dan kerugian atas keterlambatan
pengiriman.

• Dalam kasus contoh sebagai berikut :

- Mobil yang hanya setengah jadi karena
menunggu Komponen Kursi
- Production Line harus berhenti karena
adanya kecacatan komponen
Toyota Lean Manufacturing
• Toyota telah mengimplementasi Lean Manufacturing dengan
baik mulai dari sistem produksi perusahaan hingga dengan
Suppliernya.
• Implementasi melalui TPS dan Kolaborasi Kaizen untuk
Supplier
• Sehingga Supply chain atau rantai pasokan Toyota efisien.
Case Problem 2 : Brian Krista Sembiring
Analysis the lean-focused supply chain components for this case
study. Analysis the principles of lean supply chain design this
case study. Determine the key success factors and constrains in
implementing their lean supply chains. Design a model to support
your answer. Explain the model.
Kentucky Framed Seat
• KFS had been a rare exception to
Toyota’s multi-vendor policy ever
since TMC’s advance scout team
chose it as the seat supplier in 1986

• KFS responded with a special

delivery of replacements twice a day.

• KFS sometimes sent the wrong seat

assemblies ones that did not match
any of the cars waiting for rework
Solution
Warehouse

• To accommodate while the car is

being reworked
• Car Clinic to Small
Case Problem 3 : Amalia Rusadi
Analysis the impact of global and local market issues to lean
supply process for this case study. Design a model or figure to
support your answer in describing the relationship between
suppliers, company (Toyota Motor Manufacturing) and
customers. Explain and apply the techniques to improve
efficiency and effectiveness of lean supply chains to support
Toyota Motor Manufacturing’s performance.
Impact of Global / Local Issue Market
Issues

Delay in
Extra Cost Lost
Delivery Time

Tied up
Warehouse
working
storage space
capital
 Local Parts Receiving Delivery unit Receiving

Dealer

Customer
Supplier

Manufacture
Import Parts stock unit
Pc store
Production
Instalation
Delivery unit
Techniques to improve lean supply
chains
• Eliminate All Waste
• over production  tied up working capital
• Consider Advancements in Technology
• Toyota Production System :
• Just-in-time
• Jikoda  self evident, automate stop producing(building quality in
production process)
• Collaborate with Kaizen for supplier
Case Problem 4 : Timotheus Bryan
Analysis the Just-In-Time (JIT) production which is part of Toyota
Production System or Lean Manufacturing. Contrast Pull vs.
Push System. Is JIT a pull or push system? Explain your answer
by giving some pictures from Internet.
The Just-In-Time or JIT production is the first guiding principles to
facilitate a critical process to handle waste, it is produce only
what was needed, only how much was needed, and only when it
was needed and any deviation from true production needs was
condemned as waste.
From what we see from these
picture, it explain that JIT is actually
a Pull System, because it matches
on what Toyota Production System
JIT productions are. While Push
system produce as much as they
can make, Pull system is trying to
produce less inventory and therefore
it could reduce waste along the way.
Case Problem 5 : Team
Propose the action plan in Lean Supply for Toyota Motor
Manufacturing, USA, Inc. Design a systematic model to support
your answer. Analysis the role of information technology in
improving lean supply chain activities performance. Differentiate
the existing and the proposed.
Usulkan rencana aksi di Lean Supply untuk Toyota Motor Manufacturing,
USA, Inc. Rancang model sistematis untuk mendukung jawaban Anda.
Analisis peran teknologi informasi dalam meningkatkan kinerja kegiatan
rantai pasokan lean. Bedakan yang ada dan yang diusulkan.

Propose the action plan in Lean Supply for Toyota Motor Manufacturing,
USA, Inc. Design a systematic model to support your answer. Analysis the
role of information technology in improving lean supply chain activities
performance. Differentiate the existing and the proposed.
Lean Supply for Toyota Motor
Manufacturing
• Menerapkan Internet of Things (IoT) dalam lean manufacturing
Toyota.
• Untuk meningkatkan efisiensi, produktivitas dan kualitas sistem
produksi.
• Seperti artificial intelligence dan big data yang
dapat memungkinkan siklus PDCA (Plan-Do-Check-Act)
dipercepat.
Peran Teknologi Informasi dalam Supply
Chain
• Mengurangi resiko error dalam sistem produksi
• Mendukung manajemen persediaan yang lebih baik
• Meningkatkan dan melancarkan penyaluran informasi
• Mendukung sistem tracking dan delivery barang secara efektif