17 th December, 2011

Shekar ViswanathanDeputy Managing Director

TOYOTA KIRLOSKAR PVT. LTD.

Sustainable Operations

Management

- An Overview

1

Visionary Management

1. Toyota Global Vision

REWARDED WITH A SMILE by exceeding your expectations

2

3

Toyota in India:Toyota Kirloskar

Motor[TKM]

4

1. Incorporation : October 19972. Location : Bidadi - Bangalore 3. Employees : 6,200 4. Capacity : 210,000 Units/Year5. No of Dealers : 162 (As on Aug 2011)

6. Models : Innova ,Corolla , Fortuner &Etios (Camry ,Prado , LC 200 & Prius as CBU）

Mr. Nakagawa MD Mr. V.Kirloskar VC

Toyota Kirloskar Motor (TKM) Outline 2. Toyota Kirloskar Motor:  Background 

5

Plant Facility :Press Shop Weld Shop Paint Shop

Quality InspectionAssembly Shop PES

2. Toyota Kirloskar Motor:  Background 

6

TKM Manufactured Vehicles

CBU Vehicles

QUALIS[till 2006]

COROLLA INNOVA FORTUNER ETIOS LIVA

CAMRY PRADO LAND CRUISER PRIUS

Toyota Kirloskar Motor : Product profile

Product manufactured

Product Imported & Marketed

2. Toyota Kirloskar Motor:  Background 

7

Increased number of multinationals entering India.

Multi Location , Multi Products, Customer and sourcing bases spread across globe

Dynamic Market with Global brands & cheaper imports give Indian Consumer multiple

choices

Continuously changing customer expectations

Need for shorter Product Development Cycle, Cost Competitiveness

Real Time Production Progress Tracking to Enhance Inventory Management

Efficiency

3. Business Challenges ‐Sustainability

Ever increasing environmental issues like

Environment legislations

Social challenges

Global warming,

Resource depletion etc..

8

Toyota GlobalInitiatives towards

Sustainability

9

4. Toyota's Vision of Sustainable Mobility" Without focusing on environmental, energy and safety measures there can be no future for motor vehicles.“‐Katsuaki Watanabe,Vice‐Chairman, Ex‐President,Toyota Motor Corporation

" Without focusing on environmental, energy and safety measures there can be no future for motor vehicles.“‐Katsuaki Watanabe,Vice‐Chairman, Ex‐President,Toyota Motor Corporation

Moving towards greener tomorrow ‐ Toyota Prius in India

Third Generation Prius launched in India in Dec 2010

With over 2.5 Million units sold Globally,Prius is the World’s Largest Selling Hybrid

vehicle

With over 2.5 Million units sold Globally,Prius is the World’s Largest Selling Hybrid

vehicle

5. Sustainability Philosophy5. Sustainability Philosophy

6. Relations with Customers6. Relations with Customers

7. Product Technologies7. Product Technologies

7. Product Technologies7. Product Technologies

7. Product Technologies7. Product Technologies

15

8. Recycling8. Recycling

9. ECO Driving9. ECO Driving

An eAn e--learning program explains the key throttle control learning program explains the key throttle control technique on starting and things to keep in mind while technique on starting and things to keep in mind while driving.driving.

11. Sustainable Manufacturing

Five Year Environment Action Plan

Low carbon society

Recycle based society

EliminateSOC

Societyin 

harmony ‐nature

12. Toyota12. Toyota’’s Afforestation Activitys Afforestation Activityfor a Sustainable Societyfor a Sustainable Society

13. Sustainable Manufacturing at TKM

20

Safety Audit to confirm  equipment& process Safety measures

21

Safety is management itself  (Top down approach)Safety is management itself  (Top down approach)

Level up TM awareness for Safety

MACHINE SAFETY

HUMAN SAFETY

ZERO ACCIDENT

MANAGEMENT

14a. Manufacturing Excellence ‐ SAFETY

TMS training for safety management Safety culture campaign  companywide (Stop, Look & Go)

Safety gate  at all shop floor entry points

Market Quality

14b. Manufacturing Excellence - Quality : It should satisfy both intended & un-intended expectations of customer

Service QualityProduct Quality

Manufacturing QualityDesign Quality

Design qualityProducts are designed to

function and perform as per the customer needs.

Manufacturing qualityTo manufacture products

consistently in accordance to the design quality.

JIDOKA

Daily efficiency management

Vehicle Delivery lead time control

Optimum Resource Utilization by  Heijunka (Production Leveling)

CCR: Central Control Room for Production Control

14 c. Manufacturing Excellence ‐‐ PRODUCTIVITYCe

ntral Con

trol 

(Office)

Shop

 Con

trol 

Production Status Display at CCRWork‐in‐process Display at CCR

Process  control  [Andon] Display at shop  TL/GL/MGR Daily Mgmt. board

Cost reduction thinking way : Major activities :1. Daily data grasping & comparing against std.

2. Gap analysis & wastage reduction thru’ kaizens.

3. Set new standards thru’ following TPS tools.

14 d. Manufacturing Excellence ‐‐ COST

a. Paint wastage reduction

b. Steel yield ratio Improvement

Wastage reduction Kaizens : Ex.

PDCA through review :

Plant cost meeting

Periodic cost training

Fortnightly review of cost with 

TLs, GLs & Mgr.

‐ Abnormality  & support discussion

Monthly review with management 

‐ Cost status/abnormality  updates

‐ Receive directions

Periodic cost training to TM for cost 

awareness building

1

2 3

Shop cost meeting

25

Develop Toyota Develop Toyota Person Person 

Achieve Perfection

14 e. Manufacturing Excellence :Human Development

““MonozukuriMonozukuri”” isis

““Hitozukuri (HR Development)Hitozukuri (HR Development)””

「People make our automobile, nothing get started until we train and educate our people 」 Eiji Toyoda

Basic Skill Training

26

14 e. Manufacturing Excellence :Human Development

Live together in harmony with nature 

forever

Cycle of Cycle of NatureNature

Monozukuri 

in harmony with 

Environment

Cycle of Cycle of IndustryIndustry

Service of social 

development

Sustainability PolicySustainability Policy TKM Vision & MissionTKM Vision & Mission

BECOME THE MOST ADMIRED AND RESPECTED 

COMPANY IN INDIA BY FOLLOWING THE TOYOTA 

WAY

CREATE AN ECO‐FRIENDLY COMPANY IN HARMONY WITH NATURE AND SOCIETY

VISIONVISION

15. Environment Management

27ECO‐MIND

ECOECO‐‐KAIZENKAIZEN ECOECO‐‐SHOWCASESHOWCASE

MissionMission

ApproachApproach

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1. T

MA

P EM

–FI

VE Y

EAR

GU

IDEL

INE

FY 2009 – FY 2013

TKM Five Year Action Plan

TMAP Guidelines for Five yr Action

Plan

Yearly Environment Action Plan

Environment Management

ProgramSteps

Management review

(Quarterly)

15. TKM – Environment Management System

2.

TK

M –

FIV

E Y

EA

R A

CTIO

N P

LA

N

2. T

KM

–YE

AR

LY A

CTI

ON

PLA

N

3. D

EPA

RTM

ENT

–YE

AR

LY A

CTI

ON

PLA

N4

. E

NV

IRO

NM

EN

T M

AN

AG

EM

EN

T P

RO

GR

AM

Electricity Consumption- Production

472 464439443

468 457

464

452463

462

0.050.0

100.0150.0200.0250.0300.0350.0400.0450.0500.0550.0

Apr08 May08 Jun08 Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09K

wh/

Veh

Elec-P Tar Elec-P Act Cum Target Cum Act

ELECTRICITY Water Consumption - FY 2008

5.11

4.32 4.30 4.26 4.24 4.36

5.02 5.14 5.30

4.55 4.49 4.33

1.00

2.00

3.00

4.00

5.00

6.00

FY 07 Apr08 May08 Jun08 Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09

m3 /v

eh

WATER

LPG Consumption - FY 2007

26.7926.77 26.77 26.84 26.23 26.39

27.12 27.45 27.16 27.15

10

12

14

16

18

20

22

24

26

28

30

Apr08 May08 Jun08 Jul08 Aug08 Sep08 Oct08 Nov08 Dec08 Jan09 Feb09 Mar09

Kgs/

Veh

LPG VOC Emission - FY 2007

49.8345 45

44.81 44.1946.7 45.21 44.96 44.72

10

20

30

40

50

60

FY 06 April May June July Aug Sep Oct Nov Dec Jan Feb Mar

VOC

Haz waste Generation - FY 2008

9.10 8.30 8.30 8.30 8.30 8.309.16

6.20

9.64 9.37 9.59

7.33

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

FY 06 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Month Tar Month Act Cum Tar Cum Act

HAZARDOUS WASTENon-Hazardous waste Generation - FY 2007

18.74

14.83 14.8315.4

13.46 13.86 13.7012.85 12.11

4.00

8.00

12.00

16.00

20.00

FY 06 ap

ril

may june

july

augu

stse

ptembe

r

octob

erno

vembe

rde

cembe

r

janua

ry

febru

ary

march

Kgs

/Veh

NON HAZ WASTE

TOP Management on Genchi to Observe Kaizens

Review of Environment Activities by Management

5.

29

Objective:Objective:To Contribute towards Sustainable Society through building ECO-CONCIOUS MIND

among TOYOTA MEMBERS

DriveDrive

PerformPerform

Contribution to Contribution to Company & SocietyCompany & Society

ECO CITIZENSECO CITIZENS

KaizenKaizen

AwarenessAwareness

Concept

LearnLearn

16. Eco‐Mind Activities

1. TRAINING OF TEAM MEMBERS

Training to Team Members

Self Reliance

Role Change

OJT at Workplace

New TM

Jiritsuka Level

Post Promotion Training

Job Specific Training

Induction Training

1b. Training Plan1

2

3

1c. Trg Method

1.Trg at Class2.Trg at Shop3.Trg using DOJO

Activities Taken Up

International Env. commemorative Days

Purpose: Creation of Eco Citizens by development. of Eco Mind among TM’s & Family

Method: Adopting One Special Theme each year on Key Env. issues

Environment Month Celebration

M Competitions to build awareness

amily Member Involvement through various competition

chool Children & community awareness program.

CO CSR - Clean & Green Village Campaign

M Competitions to build awarenessM Competitions to build awareness

amily Member Involvement through various competitionamily Member Involvement through various competition

chool Children & community awareness program.chool Children & community awareness program.

CO CSR CO CSR -- Clean & Green Village Campaign Clean & Green Village Campaign

Appreciation to TM’s Family Members Paintings by TM’s Children

World Environment Day:World Environment Day: 55thth JuneJune

Ozone Layer Protection Day:Ozone Layer Protection Day: 1616thth SeptSept

Climate Action Day:Climate Action Day:2323rdrd OctOct

World Water Day:World Water Day:2222ndnd MarchMarchAwareness promotion

Exhibition of Eco-friendly Tech.

Competition for TM’s

16. Eco‐Mind Activities

ECO KAIZEN ACTIVITIESECO KAIZEN ACTIVITIES

17. Sustainable Manufacturing

31

32

VOC ManagementEnergy ManagementEnergy Management

600

593

701

601

508

0

100

200

300

400

500

600

700

800

FY 06 FY 07 FY 08 FY 09 FY 10

KW

H/V

EH

a. Electricity Consumptiona. Electricity Consumption b. LPG Consumptionb. LPG Consumption

32

30

36

29

22

0

5

10

15

20

25

30

35

40

FY 06 FY 07 FY 08 FY 09 FY 10

Kg/

VEH

Major Initiatives TakenMajor Initiatives Taken ResultsResults

1. VFD Installation at Significant areas 1. VFD Installation at Significant areas Paint shopPaint shop

23% Redn23% Redn

2. Standard Switch ON/OFF of 2. Standard Switch ON/OFF of compressor & lightscompressor & lights

12% Redn12% Redn

3. Oven run time optimization3. Oven run time optimization 10% Redn10% Redn

4. Continuous Training to TM4. Continuous Training to TM NANA

c. Water Consumptionc. Water Consumption

4.5 5.

0 5.5

4.9

3.9

0

1

2

3

4

5

6

FY 06 FY 07 FY 08 FY 09 FY 10

M3/

VEH

17 a. Sustainable Manufacturing

VOC Reduction VOC Reduction –– Toyota AffiliatesToyota Affiliates

VOC Emission ReductionVOC Emission Reduction

83 75 72 70 67 62 60 55 5341

0

20

40

60

80

100

TMP

ASSB

TSAM

TMMIN

TASA KZ

TMT(G

)

TDB

TMT(S

)

TKM

gm\m

2

No. 1 among No. 1 among Toyota AffiliatesToyota Affiliates

Approach Approach –– ““ONE DROP SAVINGONE DROP SAVING””

VOC in supportive activitiesVOC in supportive activities(washing / flushing) (washing / flushing) 

VOC in oversprayVOC in overspray

VOC sprayed VOC sprayed on the bodyon the body

VOC Reduction VOC Reduction –– KaizensKaizensSpray &Spray & Overspray KaizensOverspray Kaizens Washing & Flushing KaizensWashing & Flushing Kaizens

Multifeed Bell & Distance Redn KaizenMultifeed Bell & Distance Redn Kaizen Reduction of Thinner Reduction of Thinner ‐‐ Washing & FlushingWashing & Flushing

17 a. Sustainable Manufacturing

54.82

59.6262.11

66.00

71.00

50.0

53.0

56.0

59.0

62.0

65.0

68.0

71.0

74.0

TASA TSAM TMMIN TMT TKM

Steel Yield Improvement ActivitySteel Yield Improvement ActivityYield Ratio (%) Yield Ratio (%) –– Toyota AffiliatesToyota Affiliates

Non Auto Parts Supplier

Steel Supplier

TKM In‐house

Global Leader in Yield Ratio

A Three Tier ActivityA Three Tier ActivityNo. 1

Inhouse Reduce & ReuseInhouse Reduce & Reuse Outhouse Reduce, Reuse, RecycleOuthouse Reduce, Reuse, Recycle

Electrical Components

No. 1 among No. 1 among Toyota AffiliatesToyota Affiliates

17 b. Sustainable Manufacturing

Reduce Reuse Reduce Reuse Recycle

PART

S &

CO

MPO

NE

Ener

gy f

rom

Uti

litie

s

LOW INPUT

Highly OptimisedMANUFACTURING PROCESS

MaximumOUTPUT

Welding Shop Paint Shop Assembly ShopPress Shop

Air Pollution - CO2, SOX, NOX

Noise Pollution

Odour

Water PollutionSoil/Land Pollution

WWTP

PRO

DU

CTS

BY P

ROD

UCT

S

Reduce

Impact to Create

ECO FACTORY

1. Air & Odour Emissions

2. Wastewater3. Solid & Hazardous Waste

4. Noise Pollution

18. The Eco Factory Concept

3535

Eco‐Factory

Sustainable Plant Activities

Innovative Technologies

Press Shop: Energy

efficient SERVO PRESS

Advanced technology for

higher energy savings

Weld Shop: Energy Efficient Global Body LineFlexibility without additional equipment or energy requirements

Paint Shop: Water based

paint-Zero solvent usage

Lesser Solvent means

Lesser VOC Emissions

Paint Shop: Zero VOC Emission

Regenerative Thermal Oxidizers

[RTO] eliminate all VOCs in

Exhausts

Utilities: Treated Water Recycling TechnologyWe Recycle upto 40% of water

Greenery Development: Afforestation ActivityOur Aim: 5 lakh trees in 5 years

Clean Energy: Wind millsHarnessing Clean energy –Reducing our CO2 footprint

Eco-mind promotion: Renewable Energy Theme parkShowcasing best energy practices

Eco-mind promotion: Eco zoneShowcasing best environment sustainability practices

Eco-mind promotion: Eco Training centerBest environment practices education centre

36

DealerCustomer

Sales Info

ManufacturingSupplier

Parts Supply Info

1Manufacturing Excellence (Flexibility)

2Safety & Environment

(For Better Future)Develop Partners

(Improve Supply Chain)

3

Information Technology(Reduce Info Lead Time)4

> Built in flexibility> Information lead time reduction> Suppliers as partners> Safety & environment focus

19. Supply Chain outline

Development strategy

PracticeKaizen

DriveDevelop own co.& other suppliers

Learn

- Regular Training on TPS Basics, S/W Training , PIF PAB, Kanban, etc,…... - Class Room Training on Safety, Quality, Productivity & Cost

-I/H Genchi activity - Jishuken participation

- Home company & Regional supplier Development

One year training to Supplier members @ TKM to spread Toyota culture.

Suppliers as partners

Develop suppliers to implement Toyota production system at their facilities.

19a. Vendor Development

19a. Sustainable Logistics

38

39

Use of Battery Operated Forklift Use of Battery Operated Forklift –– Zero COZero CO22

COCO22 Reduction KaizensReduction Kaizens

Use of Battery Operated Tow MotorUse of Battery Operated Tow Motor

100% Returnable packing Material100% Returnable packing Material

Use of Returnable PackingUse of Disposable PackingBEFORE KAIZEN AFTER KAIZEN

Increase in the Cycle Time by 12Increase in the Cycle Time by 12

INHOUSE LOGISTICS IMPROVEMENTS

19a. Sustainable Logistics

ECO SHOWCASE ACTIVITIESECO SHOWCASE ACTIVITIES

40

19a. Sustainable Supplier

41

On‐site Supplier ParkPurpose:1. Improve the quality and efficiency of part sourcing. 2. Bring suppliers close to TKM, thus reducing logistics costs3.  Reduce Packing materials & Logistics CO2 emission

Oyaku dolly for Just In Time supply of parts

19a. Sustainable Business

Onsite suppliers within TKM premises

ECO SHOWCASE ACTIVITIESECO SHOWCASE ACTIVITIES

42

19b. Sustainable Dealer

43

Plantation DriveAwareness Drive Clean‐up Drive Say NO to Plastics Campaign

Eco-CSR Theme: Clean & Green Villages (CSR)

20. Eco Showcase

Background: To effectively utilize TKM’s non-production days Purpose: Spread TKM’s ECO SPIRIT among Local Community

Participants : 1400 membersParticipants : 1400 membersPurpose: Spread TKM’s ECO SPIRIT among Local Community

Waste Mgmt. Awareness driveEnv. Awareness Campaign

Eco-CSR Theme: Voluntary Eco-CSR Activities by Team Members

Dustbin installation Clean‐up drive

Participants : 1850 membersPlaces : 8 villages around TKMParticipants : 1850 membersPlaces : 8 villages around TKM

44

Activity: A 24 hour Live environment awareness campaign

Greenathon Light a billion lives program

Clean the Yamuna drive

2009 : Over Rs. 24 Mil. raised And 67 villages (4,000 households) lit up.

2010 : Over Rs. 39 Mil raised and 156 villages(10,000 households) lit up.

Other Events :

Eco-Marathon 24 hour marathon Telecast for Eco promotion :

Further Details on : Website – www.green.ndtv.com

Aim : To promote Environment awareness & to light billion lives

2011 : Over Rs. 145 Mil raised and 580 villages (40,000 households) lit up…

2011 : Over Rs. 145 Mil raised and 580 villages (40,000 households) lit up…

20. Eco Showcase

45

Factory which,

‐ Can operate without causing load on nature,

‐ Sparks the ECO‐MIND among TM's & Family, 

‐ Can be admired by local community

Afforestation ObjectiveAfforestation Objective

TKM AfforestationTKM Afforestation

46

47

Thinking –way

To restore & reconstruct forests 

based on the concept of

“Potential Natural Vegetation”Implemented in more than 1,500 sites

Emeritus Professor, Yokohama National University

Director, Japanese Center for International Studies in Ecology

AwardsAwards

2006 Blue Planet Prize

Dr. Akira Miyawaki

Miyawaki Method

Prof. Dr.Akira MiyawakiProf. Dr.Akira Miyawaki

Approach & Implementation of Afforestation at TKM

48

Please watch the movie.

Afforestation Afforestation -- Growth RateGrowth Rate COCO22 BenefitBenefit

Afforestation Afforestation –– Status & Future ActionStatus & Future Action

0

100

600

900

2009 2010 2011 2012 2013 2014

Ton CO2 absorbed/ 125,650 Trees

100

200

300

400

500

700

800

284

384

1000

686

887

987

21st June 20092121stst June 2009June 2009 21st Nov 20112121stst Nov 2011Nov 2011

Afforestation StatusAfforestation Status

Afforestation Afforestation –– StatusStatus

21st June 20092121stst June 2009June 2009 21st Nov 20112121stst Nov 2011Nov 2011

Thank You

We do not inherit the earth from our ancestors, we borrow it from our children…

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