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Toyota Production System

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TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED

TOYOTA PRODUCTION SYSTEM

TOYOTA KIRLOSKAR MOTOR PRIVATE LTDAT

CONTENTS:

1 Introduction to Toyota

2 Profile of Toyota Kirloskar motor.

3 Overview of TKM Logistics.

4 Toyota production system practices in TKM.Just In Time. Kaizen- (Continuous Improvement in logistics)

5 Future Plans.

TOYOTA MOTOR CORPORATION

• Established in 1937 in Japan

• 160 Countries - 5400 Dealers.

• 26 Countries - 46 Plants

• Sales of 15.1 trillion Yen in March 2002

• 247,000 employees worldwide.

• Manufacture of all types of Vehicles including Luxury Car & Small Car.

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C h rysle r

P S A H o n d a N issa n R e n a u lt F ia t

C om pany

No. of Units Sold (1=

1000

Units)

Automakers ranking worldwide based on vehicle sales

Toyota is 3rd Largest Auto Maker in the World

2003 First quarter Result Toyota – No. 2

TKM is the 14TKM is the 14thth & almost the last automobile manufacturer & almost the last automobile manufacturer entered in Indian automobile industryentered in Indian automobile industry

TOYOTA KIRLOSKAR MOTOR PRIVATE LTD

Establishment : 6th October 1997

Location : Bidadi near Bangalore in Karnataka State

Start of Production : Dec 1999

Production Model : Multi Purpose Vehicle Passenger car

Production Capacity : 50,000 Units/year

Investment : US$ 170 Million (Phase I)

No. of Employees : 2300

PRODUCTION / SALES Crossed1Lakh cars in Sept 03

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C o ro lla 13 8 3 9 0 0 0

Q u a lis 2 10 8 6 2 8 5 0 9 2 8 9 8 9 3 4 0 0 0

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COMPLETE VIEW OF TKM PLANT

In-house facilities at TKMPress Shop Weld Shop Paint Shop

Assembly Shop Inspection Area

ISO 14001 WITHIN THE FIRST YEAR

OVERVIEW OF LOGISTIC OPERATIONS

TKM’S Logistics concept

• Just in time supply

• Small lot - high frequency delivery

• Palletised cargo

• Standardized packaging

TKM LOGISTICS OVERVIEW

Delhi Transit Dock (2600 Kms)North Area - 19 Suppliers

Pune Transit Dock (900KMS)West Area - 13 suppliers

Chennai Transit Dock (370 KMS)18 Suppliers

Bangalore PlantSouth Area - 28 Suppliers

SINGAPORE(TRANSHIPMENT)

THAILAND

INDONESIA

TAIWAN

STM

TKM

KUOZUI

TMCJAPAN

TAPPHILIPPINES

TAM

LOCAL SUPPLIERS DISTRIBUTION

Delhi Cross DockNorth Area - 19 Suppliers

Pune Cross DockWest Area - 13 Suppliers

Chennai Cross Dock18 Suppliers

Bangalore PlantSouth Area - 28 Suppliers

Kanban suppliers- 40

(74% parts)

Logistic System - Milk run system

Conventional System TKM System

TKMSUPPLIER-B

SUPPLIER-A

SUPPLIER-C

SUPPLIER-A

SUPPLIER-B

SUPPLIER-C

TKM

LOW FREQUENCY

BIG LOT

HIGH INVENTORY

HIGH FREQUENCY

SMALL LOT

LOW INVENTORYT P S

JUST IN TIME

JUST IN TIME Concept

MAKING MATERIAL AVAILABLE TO NEXT PROCESS

• The right part

• At the right time

• In just the right amount required.

Supported byJUST IN TIMEProcurement Methods for local parts• Scheduled ordering for far of suppliers with cross

dock.• Kanban based ordering for nearby suppliers without

cross dock• Jumbiki ordering

In-house Logistics systems

• Welding (Chorukyu system)

• Assembly (Sequential supply system)

Cross dock operation for Milk run system

3 S2

S3

1

Sub Route 1S1

S2

S1

Cross Dock

Sub Route 3

S4

2S1

S2S3

S3

S4

Sub Route 2

Cross dock operation for Milk run system

Main Route

Main Route

TKM

Delhi Cross Dock

Pune Cross Dock

Main Route

Chennai Cross Dock

Optimum Route Planning

122cm t

cm t kg route cm t kg type cm t kg %C S 011 C H E N W 15.744 5535 1-2 C S 01 37 8976 H C V 32 9000 115%C S 012 C H E N B 0.131 45JG C H E N B (JG ) 1.500 1770C S 013 C H E N I 19.500 1627C S 021 C H E N B T 9.608 516 1-1 C S 02 17.688 1768 LC V 24 4000 74%C S 022 C H E N R 8.079 1251C C 011 C H E N A 52.722 6571 1-1 C S 03 52.722 6571 LD V 55 6800 96%R M C H E N H 0.800 200 - - 0.800 200.0 - - - -R M C H E N A 0.100 20 - - 0.100 20.0 - - - -R M C H E N N 0.100 20 - - 0.100 20.0 - - - -

truck specdayC ycroute area supplier

trip

Standardized Truck Timetable

R O U T E N O .

T R U C K T Y P E

P lace D ist Tim e T/T

29.A pr 7:3029.A pr 9:00

6km 0.15hrs29.A pr 9:1529.A pr 10:15

1km 0.10hrs29.A pr 10:2529.A pr 10:55

28km 0.40hrs29.A pr 11:3529.A pr 12:35

35km 1.30hrs

H C V

C S 01

C ro ss D ock

4 5 6 7 8

S u p -A 1.00hrs

S up -B 0.30hrs

S up -C 1.00hrs

12 13 14 19 10 11

Logistics on fixed time / variable qty basis

High Frequency Delivery✦ Delhi & West : 1 times a day✦ Chennai, South India : 4 times a day✦ Bangalore : 4 - 16 times a day

Supplier A

Supplier B Supplier C

Supplier D

TKM

LOGISTIC CONTROL IMAGE TRANSYSTEM

Joint venture between

Mitsui corp. (Japan) &

TCI (India)

TKM LOGISTICPROVIDER

Volume CalculationReceiving Plan

TKM

Central Operation Control

Suppliers

Cross-Dock TKMLong-Route

Short-RouteTKMSuppliers

Truck Status Control

Detect En-route Problems = Never stop the line

✦ ProcedureLong-Route : Driving-Members call from predefined pointsLocal-Route : Controlled by Radio-Receiver up to 60km

✦ Visual Control (Status-Board)

Special Design Fleet

Side Loading Method✦ Wing type truck

✦ Sliding door type

✦ Swing door type

Long Deck Sliding Door : 16 (50cmt) HCV Sliding Door : 10 (32cmt) LCV Sliding Door : 4 (24cmt) HCV Gull-Wing : 5 (32cmt) LCV Gull-Wing : 3 (24cmt)

T K M - In ven to ry S tatu s

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1

2

3

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C onventional

S ystem

S V P T K M C urrent T M C T K M F uture

Stoc

k in D

ays

-Milkrun pick up of parts.- Transhipment of parts

to Main truck- Truck status control.- Daily arrival of parts

- Frequency increase through Mix Logistics with TKM

Suppliers.- Lot Size reduction

- Double cross docking (Delhi Suppliers)Daily arrival 1 Day

(16 hrs)

Daily arrival 4 Hrs (0.25 days)

Safety Stock 1 Day (16 Hrs )

Safety Stock 6 Hrs (0.3 days)

-Supplier Delivery & Quality

improvement

( Y 2003 ) ( Max 2 Hrs ) (Y 2004 –Oct )( Dec ‘ 99 )

Inventory of far off supplier with Cross dock operations – Delhi & Pune

JUST IN TIME

KANBAN SYSTEM

KANBAN OPERATION OVERVIEW

APL STTI TGK DNKI NTTF

KANBAN SORTING ROOM

1

KANBANPOST

3TIME LOC1LOC2LOC3LOC4

TRUCK1TRUCK2TRUCK3

INCOMING KANBAN

CHECK SHEETAPL 1-2-2KBN NO. QTY111 2222 1333 4XXX Y

KBN 222

KBN 222

2

4 7

KBN 222

KBN 222

12

10

11

1 1

11

11

KBN 111

CHECK SHEETAPL 1-2-2K

KBN 222

9

TKML SUPPLIER

CHECK SHEETAPL 1-2-2KBN NO. QTY111 2222 1333 4XXX Y

PURA/C

PAYABLE

GRN IN SYS

SUPPLIER LINE SIDE

10

LINESIDE

9

8

EMPTY BOX

5 6

LOCAL PARTS KANBAN SAMPLE

TKMPART DETAILS :

GLOVE COMPARTMENT

SUPPLIER INFORMATION :TG KIRLOSKAR

T004-A

PROCESS CODE : ASSEMBLY

55581- 0B010- 00QTY/BOX

10

PACKING CODE : PB10123

DOCK 01

LOCATION CODE :T2R-2

516 SEQ NO1

KEY CODE :1234567890

PARTS READY FOR DESPATCH AT SUPPLIER SIDE(BANGALORE SUPPLIER CASE OPERATING WITHOUT CROSS DOCK)

LOADING / UNLOADING USING FORK LIFT

LABELS FACING OUTSIDEPARTS PALLETISED

Parts stacking at PC Zone ready for in-house logistics:

•Parts are stored at PC Zone at predefined locations Line wise orprocess wise.

T K M - In ven to ry S tatu s

0

1

2

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C onventional S ystem T K M C urrent T M C

Stoc

k in D

ays

Kanban System-1~ 16 delivery / day

- Truck status control by wireless – Time

control- Frequency increase with Mix logistics of

TKM SuppliersSafety Stock Avg 6 Hrs (0.3 days)

Safety Stock Avg4 Hrs (0.25 days )

( Y 2003 )

Avg 2 Hrs

Inventory of Bangalore supplier ( No Cross dock operations)

JUST IN TIME

JUMBIKI SYSTEM

( Sequential Procurement )

JUST IN TIMEJumbiki System

• System for total elimination of Inventory.

• System to supply Parts directly from supplier to Assembly line according to sequence of production.

• Suitable for bulky Parts with more variants & supplied by nearby supplier

e.g- Seats, Door Trims, Carpets (Araco)

CENTRAL CONTROL ROOM (CCR)

JUMBIKI SYSTEM

AssemblyLine In - Based on Production Leveling

ASSEMBLY LINE

Information to CCR

Fax to Supplier

Preparation at Supplier & Transport to TKM

Receiving andSupply to Line

Pre defined Time Scale based on tact time

JUMBIKI SYSTEM

CONVENTIONAL SYSTEM JUMBIKI

A1

A2

A3 A3

A2 A2

A3

A1 A1 B1

B2

B3 B3

B2 B2

B3

B1 B1 C1

C2

C3 C3

C2 C2

C3

C1 C1

Stock of each set

For Model A

AssemblyLine

For Model B For Model C

Model A Model CModel BAssemblyLine

Seats received from supplier in sequence of Production Plan

TPS

Model A Model CModel B

B3

B2

B1

A2

A3

A1

JUMBIKI PARTS RECEIVED

JUMBIKI SEAT AT LINE SIDE

JUST IN TIME

IN-HOUSE

LOGISTICS

JUST IN TIMEINHOUSE LOGISTICS (Chorukyu System)

WELDING SHOPTKM SYSTEMCONVENTION SYSTEM

Manufacturing

A5A1 A2 A3 A4

A6 A7 A8

A1

Manufacturing

A2 A3 A4

A5 A6 A7

TPS

A8

INHOUSE LOGISTICS (SMALL LOT SUPPLY)

SEQUENTIAL SUPPLY SYSTEMINHOUSE LOGISTICS – ASSEMBLY SHOP

INHOUSE LOGISTICS – ASSEMBLY SHOPSEQUENTIAL SUPPLY SYSTEM

SUPER FLEXIBLE ASSEMBLY LINE SUPER FLEXIBLE ASSEMBLY LINE

TKM IS CHALLENGING NEW CONCEPT OF SUPER FLEXIBLE LINE TKM IS CHALLENGING NEW CONCEPT OF SUPER FLEXIBLE LINE

THAT IS MIXED PRODUCTION OF MPV (frame model) AND THAT IS MIXED PRODUCTION OF MPV (frame model) AND PASSENGER CAR (monocock model) ON SINGLE PRODUCTION LINE, PASSENGER CAR (monocock model) ON SINGLE PRODUCTION LINE,

BY QUICK LAUNCHING OF NEXT MODEL ON THE EXISTING BY QUICK LAUNCHING OF NEXT MODEL ON THE EXISTING PRODUCTION LINE. PRODUCTION LINE.

KAIZEN(CONTINUOUS IMPROVEMENT)

Kaizen based on practice of manufacturingKaizen based on practice of manufacturingShooter system to maintain FIFOShooter system to maintain FIFO

Before After

•FIFO not followed•Mikara not established•Unsafe movement of F/L

•FIFO achieved •Mikara established• F/L movement standardized

Kaizen based on practice of manufacturingKaizen based on practice of manufacturingPallet, Dolly, Flow rack to reduce handlingPallet, Dolly, Flow rack to reduce handling

•Double handling of Parts•Generates waiting time•Fatigue while parts picking

•Direct supply of parts•zero waiting time•Workability improved•Space reduced (210 Sq.mt)

Before After

Combined LogisticsCombined LogisticsKaizen by Suggestion from Team membersKaizen by Suggestion from Team members

Collapsible packing concept

The space saved by this kind of packing is used to transport service parts and CBU

KAIZEN IN PACKING AREAS

1 Plastic Caps of hoseflexible eliminated

2Achieved 99%

returnable packaging

FUTURE PLANS

TKM in-house operations

PC ZONE

W

P

T

A

Kanban Room

S8

S9

S10

S11

S12

S1

S2

S3

S4

S5

Inhouse Bar Coded

Kanban

Store Cards

Receive Material

Insert cards

Store Parts

TKM e Kanban information to

Suppliers/ Cross Dock

S8 S9 S10

S11

S12

S1 S2 S3

S4 S5

CROSS DOCK

Download Kanban data

Cross Dock operations

S8 S9 S10

S11

S12

S1 S2 S3 S4 S5

SUPPLIER

Download Kanban

data

Supplier operations

SERVICE PROVIDE

R

SERVICE PROVIDE

R CROSS DOCKCROSS

DOCK

E E -- Kanban Kanban

Mixed Logistics1st Step

Increase frequency

Reduce lot sizeMixed Logistics

Concept

Purpose:

1) Share logistics between TKM & Supplier.

2) Reduce lot, increase delivery frequency and finally reduce inventory.

3) Reduce transportation cost.

4) Mutual development and benefit between TKM & supplier.

Mixed Logistics Image Example

TKM - TKAP Mixed Logistics

Closing wordClosing word

We live in an age of constant change

‘Today's perfection is tomorrows ‘Today's perfection is tomorrows mediocritymediocrity’’

We need to realise & improve

THANK YOU

FOR YOUR ATTENTION

TOYOTA KIRLOSKAR MOTORTOYOTA KIRLOSKAR MOTORTOYOTA KIRLOSKAR MOTOR