Growing ….
The Toyota Way
Jim Bolte
Vice President Toyota Motor Manufacturing Alabama
Vice President Information Systems Toyota Motor
Manufacturing North America
Agenda
• Growing in North America
• TPS and Information Technology
• Manufacturing Improvements
22
3
CAPTIN
Toyota Motor Manufacturing Canada
NUMMI
TABC
Toyota Motor Manufacturing
North America
Toyota Motor Manufacturing,
West Virginia
Toyota Motor Manufacturing,
Kentucky
Toyota Motor Manufacturing
de Baja California
Bodine Aluminum Toyota Motor Manufacturing,
Indiana
Toyota Motor Manufacturing,
Toyota Motor Manufacturing,
Alabama
Texas
4
4
North American Growth: Sales
2, 500, 000
2.29 M
2, 000, 000
NA Manufactured
63%
Import
1, 500, 000
1, 000, 000
500, 000
20
04
20
02
20
00
19
98
19
96
19
94
19
92
19
90
19
88
19
86
19
84
0
5
5
North American Production
(000)
1800
1.66 M
1600
Texas
Mexico
1400
Canada
1200
1000
Indiana
800
600
NUMMI
400
Kentucky
200
0
1990 1994 1998 2001 2003 2005 2006
Efficiency
Improvements
6
6
North American Employment
40,000
37,351
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1991
1993
1995
1997
1999
2001
2003
2005
7
7
Toyota IS Strategies
• Make Common and Simple
• Connect and Integrate
Common Information Systems
Common
Business
Processes
Standard, Networked
Computing
Infrastructure
8
8
Business Drives Technology
• Business drives technology, technology
does not drive the business
• Technology must add value
9
9
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
10
10
Toyota Production System (TPS)
• Utilize TPS while taking advantage of
technology
• Visual Control
11
11
Toyota Production System (TPS)
• Utilize TPS while taking advantage of
technology
•
•
Visual Control
RCA (Root Cause Analysis)
1212
Toyota Production System (TPS)
• Utilize TPS while taking advantage of
technology
•
•
•
Visual Control
RCA
Go & See
“Genchi Genbutsu”
13
13
Toyota Production System (TPS)
• Utilize TPS while taking advantage of
technology
•
•
•
•
Visual Control
RCA
Go & See
Motivation
14
14
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
Toyota Alabama
Phase I
Phase II
Phase III
Total
V8
for
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
350
150
300
800
Product
TMs
16
16
Team Member Training
17
Team Member Training
• Nine weeks of new hire training
• Classroom, work conditioning and skill development
18
18
19
Allows TMs to select other views for the current
process or other processes.
20
20
SKPI Report
Weighted Score: 3
21
21
Standardized Escalation Procedure
NA PRES
PUR VP
DIR
PRES
NAMC
PRES
GENERAL
MANAGER
NAMC
TOYOTA
PLANT
MANAGER
MANAGER
NAMC
MANAGER
SUPPLIER
PROBLEM
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22
NED System Map
NED System Map
Order
Creation
Daily
Change
Production
Plan/Scheduling
Parts Ordering
(e-Kanban)
Delivery
Notice
Production
Sequence
Parts
Logistics
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23
NED Achievements
Lead Time Reduction
Order Adjustment / Optimization
Priority Build Windows
Enhanced Reporting
Improved Usability
 Increases order / mix quality
 Balances Pipeline
 Increases capability and efficiency
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24
NED Deployment
Suppliers
Unit Plants
Vehicle
Plants
25
25
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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