Growing ….The Toyota Way

Jim Bolte

Vice President Toyota Motor Manufacturing AlabamaVice President Information Systems Toyota Motor

Manufacturing North America

2

Agenda

• Growing in North America

• TPS and Information Technology

• Manufacturing Improvements

22

3

4

TABC

CAPTIN

NUMMI

Toyota Motor Manufacturing, Kentucky

Toyota Motor Manufacturing Canada

Bodine Aluminum Toyota Motor Manufacturing, Indiana

Toyota Motor Manufacturing North America

Toyota Motor Manufacturing, West Virginia

Toyota Motor Manufacturing, Alabama

Toyota Motor Manufacturing de Baja California

Toyota Motor Manufacturing, Texas

44

5

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

NA Manufactured

Import

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

NA Manufactured

Import

North American Growth: Sales

63%

2.29 M

55

6

North American Production

0

200

400

600

800

1000

1200

1400

1600

1800

1990 1994 1998 2001 2003 2005 2006

Texas

Mexico

Canada

Indiana

NUMMI

Kentucky

EfficiencyImprovements

(000)

66

1.66 M

7

North American Employment

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1991 1993 1995 1997 1999 2001 2003 2005

77

37,351

8

Toyota IS Strategies

Common Information Systems

Common Business Processes

Standard, Networked Computing

Infrastructure

• Make Common and Simple

• Connect and Integrate

88

9

• Business drives technology, technology does not drive the business

• Technology must add value

Business Drives Technology

99

10

IT Investment

• Maintain appropriate level of IT investment

• IT spending is less than 1% of total manufacturing revenue

• Toyota invests less in IT but continues to build high quality vehicles

1010

11

Toyota Production System (TPS)

• Utilize TPS while taking advantage of technology• Visual Control

1111

12

Toyota Production System (TPS)

• Utilize TPS while taking advantage of technology

• Visual Control• RCA (Root Cause Analysis)

1212

13

Toyota Production System (TPS)

• Utilize TPS while taking advantage of technology

• Visual Control• RCA • Go & See

“Genchi Genbutsu”

1313

14

Toyota Production System (TPS)

• Utilize TPS while taking advantage of technology

• Visual Control• RCA • Go & See • Motivation

1414

15

Key Points

• Focus on Business Process Improvements FIRST

• Apply technology improvements to “efficient processes”

• Don’t automate inefficient processes

• Use technology appropriately – Don’t be “used” by technology!

1515

16

   

Phase I 

 

Phase II 

Phase III 

Total 

ProductV8for

Tundra 

V6 for Tacoma/Tundra

V8 for Tundra/Sequoia

 

 

 

Invest. 

 

$220 M 

$20 M 

$250 M 

$490 M

 

Annual Capacity 

  

120,000

  

130,000

  

150,000

  

400,000

 

TMs 

350 

150 

300 

800 

Toyota Alabama

1616

17

Team Member Training

18

Team Member Training

• Nine weeks of new hire training

• Classroom, work conditioning and skill development1818

19

20

Allows TMs to select other views for the current process or other processes.

2020

21

SKPI Report

Weighted Score: 3

2121

22

Standardized Escalation Procedure

NA PRESPUR VP DIR

PRES PRESNAMC

GENERAL PLANTMANAGER MANAGERNAMC

MANAGER MANAGERNAMC

PROBLEM

SUPPLIERTOYOTA

2222

23

NED System MapOrder

CreationDaily

ChangeDeliveryNotice

ProductionPlan/Scheduling

ProductionSequence

Parts Ordering(e-Kanban)

Parts Logistics

NED System Map

2323

24

Lead Time Reduction

Enhanced Reporting

Order Adjustment / Optimization

Priority Build Windows

Improved Usability

Increases order / mix quality

Balances Pipeline

Increases capability and efficiency

Increases order / mix quality

Balances Pipeline

Increases capability and efficiency

NED Achievements

2424

25

NED Deployment

Unit Plants

Suppliers

Vehicle Plants

2525

26

Conclusion

• Growth will continue based on TPS

• Business drives technology, not the other way around

• Customer focus will continue to increase

• Our goal for the next few years is managing growth while improving operating efficiency

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