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Toyota Motor Manufacturing
(TMM)
A case on Just-in-time and
Total Quality Management
1
utdallas.edu/~metin
TOYOTA - the Largest Car Manufacturer
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Toyota Camry Then (1992) and Now (2007)
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To Cincinnati
Toyota
Georgetown
Plant
To Dallas
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Georgetown Plant
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Georgetown Plant www.toyotageorgetown.com
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History of the Plant
– Ground breaking, May 1986
– First Car, May 1988
– Fujio Cho named the second president, Dec 1988
– 1 millionth Camry, Oct 1993
– 2 millionth Camry, Apr 1997
– Camry #1 selling car in the US in 97, 98, 99, 00
– Gary Convis named fifth president, Apr 2001
– Camry #1 selling car in the US in 02, 03, 04, 05
– Sixth generation Camry starts, Feb 2006
utdallas.edu/~metin
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Overview of the Production Process
???? manufacturing, ????
????, used for panels, bumpers, connections, protections
????, shaping the steel coils into body parts
– Uses ???? dies (analogous to cookie cutters)
???? of the body
????
????
– Trim
» Heater, A/C, Wiring
» Bumpers, Headliners
– Chassis, underbody work, engine marriage
– Final line, air bags, instrument panels, seats
Final test, ????
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What is Doug Friesen’s problem?
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Doug Friesen’s problem
A ???? run ratio of ??%: Number assembled actually / Number could be assembled
Line is stopped due to defectives by pulling an andon cord
– Too often or too rare?
????, defective car-seat combinations sent downstream
Defectives are due to ???? rotation, product ????, ???? ????/????
design
A substantial number of cars off-line with ???? seats or ???? seats.
– Some cars wait ???? days for seats in the ???? area although ???? commits
to send seats in a single shift.
» Is the reordering of Ex.9 form readable?
» Cars served FIFO?
– What is the problem with the seats?
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What are the Seat Problems?
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Seat
Problems
????
????
????
????
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A Test of Japanese
Andon
Ikko-nagashi
Heijunka
Jidoka
Kaizen What is violated at TMM?
Kanban
Muda
Poka-yoke
Takotei-mochi
Tsukurikomi
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A Test of Japanese
Ikko-nagashi: Lot size of one
Heijunka: Production smoothing to end up with a level plan
Jidoka: Do not pass the defects to downstream
Takotei-mochi: Worker flexibility
Tsukurikomi: Built-in quality inspection
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1. Line Stoppage
Setting of the stage: A worker pulls the andon cord,
music starts, team leader comes.
TL: - What is the problem?
W: - ………….
TL: Decides how long the line should stop: 1 Cycle=??
seconds or more. If the problem is severe, TL calls
the group leader.
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Continue to violate Jidoka?
Costs of line stoppage
– Stopping for 1 cycle of 57 seconds
» Loss of revenue by one car
» Loss of profit
– Overtime can be used to recover
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Continue to violate Jidoka?
Costs of line
– Stopping for 1 cycle of ?? seconds
» Loss of revenue by one car, $??,???
» Deduct costs of ??%
» Loss of profit of $?,???
– Overtime can be used to recover
» Cost of ?? seconds of overtime ??*??*??/????=$?.???/worker
» How many workers stop and do overtime?
1 team, 1 group, assembly line, paint line, …, entire plant?
Depends on the ????? inventory between work centers and the length
of the stoppage.
– Ikko-nagashi couples work centers: Stopping one is stopping all.
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2. Crowding in the overflow area
Can you read the reorder form in Exhibit 9?
Computerize the information flow between TMM and ???? ?
What is the benefit of dedicating an ???? area specific to seat
problems?
Dealing with mistakes efficiently vs. Eliminating mistakes
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3. Assembly area
Job rotation, a problem source or a fix?
– Is Takotei-mochi possible without rotation?
Hook, now made of ???? as opposed to ????
– Personal experience: ???? interior front door handles in my 94 Corolla
– $50,000 to improve the hook design
Build a seat safety inventory to reduce mismatches?
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3. Assembly area
Job rotation, a problem source or a fix?
– Empowering the ????, ???? work force
– Boredom is a source of errors, Reasonable ???? improve productivity
Hook, now made of ???? as opposed to ????
– $50,000 to improve the hook design
» Distribute the cost to cars
» (1 broken hook per shift)*(2 shifts per day)*(1000 days for this Camry
generation)
» Cost per car is $??, reasonable?
» What if the hook problem continues after the redesign?
» Investigate/respond to hook design change
» Why does not Japanese plant experience the same problem?
Does TPS work better in Japan? Does TPS work only in Japanese culture?
Build a seat safety inventory to reduce mismatches
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4. Supplier
Seat quality coming down
– At least for the new models
– Addition of Camry Wagon and more types of seats
Who is responsible for the seat defects
» The supplier?
» The transporter?
» The TMM receiving?
– Sharing the responsibility to find the root cause of the seat defects
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5. Seat Mismatches: RFID as a potential fix
See Exhibit 6 for the layout
???? comes from main line
???? comes from a feeder line
Both ???? and ???? are RFID tagged
When the tags do not match, the workers are alerted
This eliminates “some” errors
Implemented in conjunction with a seat supplier according
to ChainLink Research (www.chainlinkresearch.com)
webinar on January 10, 2007.
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How much of TPS is culture?
How much of it is science?
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Toyota is worried of its culture being
diluted with fast overseas growth
“… the hardest thing for Toyota’s new
American employees to accept: those
colored bar [performance] charts against
a white bulletin board, in plain view for all
to see.”
Latondra Newton, Toyota Employee in Erlanger, KY
New York Times Business Feb 15, 2007.
Aspiring Toyota factory leaders attend
Toyota Technical Skills Academy (high
school) in Toyota City, Japan. They study
mechanical drawing/design .
A separate institution, Toyota Institute,
prepares executives for Toyota Way. The
institute sends off its executives to offices
around the world as missionaries.
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NUMMI
based on a trip on Nov 19, 2002
25
utdallas.edu/~metin
Railway Tracks
To Oakland Harbor
To Fremont
utdallas.edu/~metin To San Jose 26
History/Products
Late 70’s oil crisis
GM closes Fremont, CA plant firing 6000 in 1982
Toyota approaches GM to set up Toyota production system at a GM plant,
United Auto Workers accepts the deal
GM and Toyota put together $400M in 1984.
– GM is the landlord, it owns the infrastructure
– Toyota is the tenant
Nummi = New United Motor Manufacturing, Inc is born in 1984 as the
unique example of a Toyota – GM joint venture
Products: Toyota Corolla, Tacoma Trucks, Pontiac Vibe (Toyota bottom,
GM top) and Toyota Voltz (Toyota bottom, GM top, sold in Japan) , GM
Prism until 13/12/01
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Workers
Nummi has about 4500 unionized workers
Workers are under two types:
– Production, high school graduates
– Maintenance
Workers work in teams of 4-6
Workers in a team rotate the tasks every 1-3 hours
Team leader is responsible for the rotation.
Team leader withdraws parts from the inventory (every 1-2 hours) and
provides the tools as necessary
Workers make $17 per hour
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Capacity
Nummi has a cycle time of
– 60 seconds for Corolla, 1 body
– 82 seconds for Tacoma, 3 bodies
» only cabin is produced at Nummi, the
bottom and the back are bought from
suppliers
Nummi works in two shifts
– I: 6:00-14:30, II: 16:30-1:00
– Each shift has 1 hour lunch/dinner break
– Starting the first shift at 6:00 workers
avoid heavy morning traffic
– Two hours between shifts I and II is to
allow for overtime after the first shift when
necessary
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Work Flow
Stamping: Forming metal (side, back, front) panels with presses
Body & Weld: Putting panels together
Paint: Paint inspection is the current bottleneck
– Primer body paint applied by robots (chemically hazardous task)
– Door jambs painted manually
Plastics: Making bumpers, inside panels
Assembly: Putting in tires, engine, seats, bumpers, harnessing. Cars , trucks on
2 km , 0.8 km conveyors
Cars contain Building manifest = BOM = Ingredients list at every step of these
operations
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Just in time
Kaizen: continuous improvement
Kanban: replenishment every 1-2 hours
Jidoka: Assure 100% quality. Otherwise pull the Andon chord
– 1000 times per shift
– 9% of line stops are longer than 30 seconds
– Line stops longer than an hour once every month
Muda: Waste to be eliminated
Genchi Genbutsu: Go to the source to learn and to solve the problems
This Japanese terminology is all over the boards in the plant
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Creative Tool / Work Place Design
Die change at the stamping in 3 hours
Tilted storage bins for ease of access
Collapsing storage boxes when empty
– To reduce the empty box storage requirements in trucks returning
to suppliers, say in Indiana
– These boxes save about $10M annually
– The worker who suggested the boxes earned several thousand
points. 1 point = $1.
More info www.nummi.com
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To San Antonio by I-35
I-35 & I-410 Intersection I-410 Loop
Southwest of San Antonio
Home of Tundra in San Antonio
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Toyota Way of Finishing a Class: - ?????? !
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Appendix
Where is your favorite brand
manufactured?
35
utdallas.edu/~metin
All of Toyota Plants in the North America
Toyota. Cambridge
Corolla, Matrix, Lexus, Rav4
Toyota-Subaru. LaFayette
Camry
Nummi: Toyota-GM. Freemont.
Corolla, Tacoma, Pontiac Vibe
Toyota. Princeton
Tundra, Suquoia, Sienna
Toyota. Georgetow n
Avalon, Camry, Solara
Toyota. Long Beach
Hino Toyota. Blue Springs
Highlander
Toyota. Tijuana, Mexico
Tacoma
Toyota. San Antonio
Tundra
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All of Honda Plants in the North America
Honda. Alliston, Ca.
Civic, Acura, Odyssey,
Pilot, Ridgeline
Honda. Decatur
TBO in 2008
Honda. Marysville
Accord, Acura
Honda. Lincoln
Odyssey, Pilot
Honda. El Salto, Me
Accord
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All of Nissan Plants in the North America
Nissan. Smyrna
Frontier, Xterra, Altima,
Maxima, Pathfinder
Nissan. Canton
Quest, Armada,
Titan, Infiniti, Altima
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All of Hyundai-Kia Plants in the North America
Kia. LaGrange
TBO in 2009
Hyundai. Montgomery
Sonata, Santa Fe
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All of Mercedes and BMW Plants in the North America
BMW. Spartanburg
Z4, X5, X6
M roadster, coupes
Mercedes. Tuscaloosa
M, R classes
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All of Ford Plants in the North America
Ford. Dearborn Ford. Oakville, Ca.
F-150, Lincoln Mark LT Edge, Lincoln MKX
Ford. Saint Paul
Ranger, Mazda B series
Ford. Saint Thomas, Ca.
Ford. Flat Rock Crow n Victoria, Grand Marquis
Mustang, Mazda 6
Ford. Wayne
Focus, Expedition, Lincoln Navigator
Ford. Chicago
Taurus, Mercury Sable
Ford. Avon Lake
Ford E Series
Ford. Kansas City
Escape, Escape Hybrid,
Mazda Tribute, Ford. Louisville
Mercury Mariner, F-150 F-250, F-550, Explorer,
Mercury Mountaineer
Ontario, Michigan, Illinois,
Indiana, Ohio in Focus
Ford. Hermosillo, Mex.
Ford Fusion, Lincoln
MKZ, Mercury Milan
utdallas.edu/~metin Ford. Cuatitlan, Mex. 41
F-150, 250, 350, 450, 550,Ikon
All of Chrysler Plants in the North America
Chrysler. Sterling Heights
Dodge Avenger, Chrysler Sebring
Chrysler. Brampton, Ca
Chrysler. Warren Chrysler 300,
Dodge Ram, Dakota, Mitsubishi Raider Dodge Challenger,
Dodge Charger
Chrysler. Detroit-Jefferson North
Jeep Grand Cherokee and Commander
Chrysler. Detroit-Conner Ave. Chrysler. Windsor, Ca
Dodge Viper, SRT 10 Roadster Dodge Grand Caravan, Chrysler Tow n
Chrysler. New ark
Dodge Durango, Chrysler Aspen
Chrysler. Belvidere Will close in 2009
Chrysler. Toledo Dodge Caliber, Jeep
Jeep Liberty, Dodge Nitro Compass, Jeep Patriot
Chrysler. Fenton-North
Dodge Ram
Chrysler. Fenton-South
Grand Voyager, Grand
Caravan, Cargo Van
Ontario, Michigan, Illinois,
Indiana, Ohio in Focus
Chrysler. Saltillo, Mex.
Dodge Ram
utdallas.edu/~metin Chrysler. Toluca, Mex. 42
Chrysler PT Cruise, Dodge Journey
All of GM Plants in the North America
GM. Oshaw a, Ca
Chevy Impala, Buick Allure,
GM. Orion Chevy Silverado, GMC Sierra.
GM. Lansing-Grand River Pontiac G6, Trucks w ill stop in 2009.
Cadillac E-SRX Chevrolet Malibu
GM. Lansing-Delta Tow nship GM. Flint
Buick Enclave, Saturn GMC Sierra, Chevy Silverado,
Outlook, GMC Acadia Chevy - GMC medium trucks.
GM. Pontiac GM. Detroit GM. Janisville
Chevy Silverado, GMC Sierra Buick Lucerne, Chevy Tahoe,
Cadillac DTS Suburban, GMC Yukon
Will stop in 2010
GM. Wilmington
Saturn L series,
GM. Fort Wayne Pontiac Solstice
Chevy Silverado,
GMC Sierra
GM. Fairfax
Chevy Malibu,
Malibu Maxx, GM. Bow ling Green
GM. Moraine Cadillac XLR,
Chevy Trailblazer, GMC Saturn Aura Chevy Corvette
Envoy, Oldsmobile Bravada, GM. Wentzville
GM. Lordstow n Chevy Express,
Isuzu Ascender, Saab 9-7X Chevy Cobalt, Pontiac GMC Savana GM. Spring Hill
Will stop in 2010 Pursuit, G4, G5 Saturn Ion and Vue
Currently dow n
GM. Doraville
Chevy Uplander,
Pontiac Montana
GM. Arlington
Ontario, Michigan, Illinois, Chevy Tahoe, GM. Shreveport
Suburban, Chevy Colorado,
Indiana, Ohio in Focus GMC Yukon,
Cadillac Escalade
GMC Canyon,
Isuzu brands,
Hummer H3
GM. Ramos Arizpe, Mex.
Pontiac Aztek, Chevy Cavalier, Chevrolet
Checy, Pontiac Sunfire, Buick Rendezvous
GM. Silao, Mex.
Chevrolet Suburban, Chevrolet Avalanche,
GMC Yukon, Cadillac Escalade
GM. Toluca, Mex.
utdallas.edu/~metin Chevrolet Kodiak Truck 43
Stopping in 2008
