Toyota Motor Manufacturing U.S.A. Inc.

Group 8 Anurag Bajpai PGP/15/268 Sujit Kumar Mandi PGP/15/322 PGP/15/284 subtitleSri Harsha style Sakthi PGP/15/315 Pragnanand Mishra PGP/15/301 Dhivahar PGP/15/273 Hariprasad PGP/15/314

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Background
Toyota - Japanese automobile company In 1985 TMC (Toyota Manufacturing Corporation) unveiled its plan to open $800 million greenfield plant in Kentucky First Japanese car manufacturer in USA Production began in July 1988 in Georgetown Annual capacity: 200,000 Camry sedans Model change and new models by 1992 Midsize family sedan market constitutes one-third of American car market Camry sales increased 20% to 240000 after 3/10/12 model change in 1991

Toyota Production System

Follows

the Toyota Production System (TPS) to meet diverse customer preferences with flawless quality, at an affordable price and with perfect timing.
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Toyota Production System (Contd.)

Human

Infrastructure:

Good Thinking, Good Products: Coaching by senior management and internal training Five Why Approach: Get to the root of the problem Kaizen: Change for the better

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Assembly
Assembly

performed along 353 stations on a conveyor line Assembly was over 5 miles in length Connected Trim lines, Chassis lines and final assembly lines Line cycle time: 57 seconds 769 team members paid an average of $17 an hour plus 50% for overtime

Team size of 5: 1- team leader, 4 team members

team member and one team lead per team Regular shift duration: 525 minutes
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Assembly (Contd.)
Standardized

work chart adjacent to each work station showing cycle time and work tasks Colored tape to mark out area of the floor to specify where everything in sight belonged 4S: Sift, Sort, Sweep, Spic-and-Span Hence, any deviations stood out Green line and red line to mark beginning and end of each station. Yellow line indicates 70% completion Behind schedule while behind yellow line or any issues, andon chord pulled.
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Production Control
To

feed necessary parts into TMM operations so that right cars are delivered to sales company Variations in models: 11 exterior colors, 29 interior variations, 30 other options. Sedan and wagon models Forecast received from TMC JIT was reflected in two ways:

Heijunka : Balancing the total order

Relieves suppliers of surges in demand Help prevent bottlenecks and inventories

Kanban cards: Smooth information flow

A signboard used for each part which included 3/10/12

Quality Control

Sets tough quality standards and inspecting every vehicle against those. Follows through with customers experience Instant feedback to direct operations Check assembly quality before cars went off for shipping and returned problematic cars to the assembly group Clinic area used to repair such problematic cars Max of only 8 cars possible at any given time in clinic area Assembly line shutdown under Code 1 if 8 cars present in the clinic area Proactive approach preventing problems from occurring in the first place Solve assembly quality problems and work out part quality with suppliers
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Purchasing
Focused

haul Deal with only low cost suppliers Needed cost estimation for the suppliers Improve suppliers with the help of kaizen experts

on managing costs over the long

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Seat Installation
Procured seat assemblies from only one vendor, Kentucky Framed Seat (KFS) Requirements for each model were sent using a transmitter on the cars emerging from the paint line which sent information to printers at TMM and KFS. This enabled seats to arrive in the right sequence All pieces at end of KFS lines strapped together, 100% inspected and loaded into trailer in same order Most expensive of all purchased parts - $740 Every 57 Sec - Seat set exactly matching its 3/10/12

Seat Installation Contd

Seats

put onto the overhead conveyor synchronized with the assembly line After 250 mts, seats reached rear seat loading workstation on the final assembly line segment called Final 1 Here a rear seat was lowered down every 57 seconds which exactly matched the Car and model type Meanwhile, the front seats automatically shifted aside to make room for the next rear seat Front seats then continued on the conveyor 3/10/12 line and were installed at a workstation

Problems faced by TMM

Problems

with seats

Unavailability of seats or wrong seat assemblies delivered due to which several unfinished cars dating back by 4 days still in Overflow parking lot High occurrence of material flaws Breakage of hook during rear side bolster installation Increase in the number of andon pulls especially in rear seat assembly Run ratio reduced from 95% to 85% in less than a month shortfall of 45 cars per shift to be made up by overtime
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ANALYSIS
From

Exhibit 8 For defects : Toyota was responsible for Seat Bolster defect While KFS for remaining defects.

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Analysis
From

Exhibit 7 Major cause of Seat Quality defect varies each month A new defect Missing bolster suddenly emerged as no 1 problem from Apr92 (Camry Wagon Introduction)

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ANALYSIS
From

Exhibit 10 No. of Andon pulls increases in 2nd Shift as the month passes

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Recommendation
Analyze

hook problem Better synchronization with KFS Need to Work with KFS to reduce seat defects. KFS may be having problem in his unit ,related to capacity or quality control which need to rectified Else look for better supplier or Go for inspection of seat before arrival. (against JIT) .
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Thank You

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