growing …. the toyota way jim bolte vice president toyota motor manufacturing alabama vice...
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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
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Toyota Production System (TPS)
• Utilize TPS while taking advantage of technology
• Visual Control• RCA (Root Cause Analysis)
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Toyota Production System (TPS)
• Utilize TPS while taking advantage of technology
• Visual Control• RCA • Go & See
“Genchi Genbutsu”
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Toyota Production System (TPS)
• Utilize TPS while taking advantage of technology
• Visual Control• RCA • Go & See • Motivation
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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!
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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
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Team Member Training
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Team Member Training
• Nine weeks of new hire training
• Classroom, work conditioning and skill development1818
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Allows TMs to select other views for the current process or other processes.
2020
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SKPI Report
Weighted Score: 3
2121
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Standardized Escalation Procedure
NA PRESPUR VP DIR
PRES PRESNAMC
GENERAL PLANTMANAGER MANAGERNAMC
MANAGER MANAGERNAMC
PROBLEM
SUPPLIERTOYOTA
2222
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NED System MapOrder
CreationDaily
ChangeDeliveryNotice
ProductionPlan/Scheduling
ProductionSequence
Parts Ordering(e-Kanban)
Parts Logistics
NED System Map
2323
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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
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NED Deployment
Unit Plants
Suppliers
Vehicle Plants
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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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