A case on Just-in-time and
Total Quality Management utdallas.edu/~metin
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Then (1992)
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To Cincinnati
Toyota
Georgetown
Plant utdallas.edu/~metin
To Dallas
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www.toyotageorgetown.com
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– 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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 ???? manufacturing, ????
 ????, used for panels, bumpers, connections, protections
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????, 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, ???? utdallas.edu/~metin
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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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 ????
 ????
 ????
 ????
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 Andon
 Ikko-nagashi
 Heijunka
 Jidoka
 Kaizen
 Kanban
 Muda
 Poka-yoke
 Takotei-mochi
 Tsukurikomi
What is violated at TMM?
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 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 utdallas.edu/~metin
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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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 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 utdallas.edu/~metin
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 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?
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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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 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 utdallas.edu/~metin
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 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? utdallas.edu/~metin
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 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 utdallas.edu/~metin
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 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 utdallas.edu/~metin
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 See Exhibit 6 for the layout
 ???? comes from main line
 ???? comes from a feeder line
 Both ???? and ???? are RFID tagged
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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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“… 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. utdallas.edu/~metin
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To Fremont utdallas.edu/~metin To San Jose
Railway Tracks
To Oakland Harbor
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
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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 utdallas.edu/~metin
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
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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 utdallas.edu/~metin
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 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 utdallas.edu/~metin
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
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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
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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 utdallas.edu/~metin
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Kaizen: continuous improvement
Kanban: replenishment every 1-2 hours
Jidoka: Assure 100% quality. Otherwise pull the Andon chord
– 1000 times per shift
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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 utdallas.edu/~metin
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 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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I-35 & I-410 Intersection
Southwest of San Antonio
To San Antonio by I-35
I-410 Loop
Home of Tundra in San Antonio utdallas.edu/~metin
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??????
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Nummi: Toyota-GM. Freemont.
Corolla, Tacoma, Pontiac Vibe
Toyota. Long Beach
Hino
Toyota. Tijuana, Mexico
Tacoma
Toyota. Cambridge
Corolla, Matrix, Lexus, Rav4
Toyota-Subaru. LaFayette
Camry
Toyota. Princeton
Tundra, Suquoia, Sienna
Toyota. Georgetown
Avalon, Camry, Solara
Toyota. Blue Springs
Highlander
Toyota. San Antonio
Tundra utdallas.edu/~metin
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Honda. Alliston, Ca.
Civic, Acura, Odyssey,
Pilot, Ridgeline
Honda. Decatur
TBO in 2008
Honda. Marysville
Accord, Acura
Honda. Lincoln
Odyssey, Pilot utdallas.edu/~metin
Honda. El Salto, Me
Accord
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Nissan. Smyrna
Frontier, Xterra, Altima,
Maxima, Pathfinder
Nissan. Canton
Quest, Armada,
Titan, Infiniti, Altima utdallas.edu/~metin
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Kia. LaGrange
TBO in 2009
Hyundai. Montgomery
Sonata, Santa Fe
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Mercedes. Tuscaloosa
M, R classes
BMW. Spartanburg
Z4, X5, X6
M roadster, coupes
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Ford. Chicago
Taurus, Mercury Sable
Ford. Dearborn
F-150, Lincoln Mark LT
Ford. Oakville, Ca.
Edge, Lincoln MKX
Ford. Saint Thomas, Ca.
Crown Victoria, Grand Marquis Ford. Flat Rock
Mustang, Mazda 6
Ford. Wayne
Focus, Expedition, Lincoln Navigator
Ford. Avon Lake
Ford E Series
Ford. Saint Paul
Ranger, Mazda B series
Ford. Kansas City
Escape, Escape Hybrid,
Mazda Tribute,
Mercury Mariner, F-150
Ford. Louisville
F-250, F-550, Explorer,
Mercury Mountaineer
Ford. Hermosillo, Mex.
Ford Fusion, Lincoln
MKZ, Mercury Milan
Ontario, Michigan, Illinois,
Indiana, Ohio in Focus utdallas.edu/~metin
Ford. Cuatitlan, Mex.
F-150, 250, 350, 450, 550,Ikon
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Chrysler. Sterling Heights
Dodge Avenger, Chrysler Sebring
Chrysler. Warren
Dodge Ram, Dakota, Mitsubishi Raider
Chrysler. Brampton, Ca
Chrysler 300,
Dodge Challenger,
Dodge Charger
Chrysler. Detroit-Jefferson North
Jeep Grand Cherokee and Commander
Chrysler. Detroit-Conner Ave.
Dodge Viper, SRT 10 Roadster
Chrysler. Windsor, Ca
Dodge Grand Caravan, Chrysler Town
Chrysler. Newark
Dodge Durango, Chrysler Aspen
Will close in 2009
Chrysler. Toledo
Jeep Liberty, Dodge Nitro
Chrysler. Belvidere
Dodge Caliber, Jeep
Compass, Jeep Patriot
Chrysler. Fenton-North
Dodge Ram
Chrysler. Fenton-South
Grand Voyager, Grand
Caravan, Cargo Van
Ontario, Michigan, Illinois,
Indiana, Ohio in Focus utdallas.edu/~metin
Chrysler. Saltillo, Mex.
Dodge Ram
Chrysler. Toluca, Mex.
Chrysler PT Cruise, Dodge Journey
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GM. Lansing-Grand River
Cadillac E-SRX
GM. Lansing-Delta Township
Buick Enclave, Saturn
Outlook, GMC Acadia
GM. Orion
Pontiac G6,
Chevrolet Malibu
GM. Flint
GMC Sierra, Chevy Silverado,
Chevy - GMC medium trucks.
GM. Oshawa, Ca
Chevy Impala, Buick Allure,
Chevy Silverado, GMC Sierra.
Trucks will stop in 2009.
GM. Pontiac
Chevy Silverado, GMC Sierra
GM. Detroit
Buick Lucerne,
Cadillac DTS
GM. Janisville
Chevy Tahoe,
Suburban, GMC Yukon
Will stop in 2010
GM. Fort Wayne
Chevy Silverado,
GMC Sierra
GM. Moraine
Chevy Trailblazer, GMC
Envoy, Oldsmobile Bravada,
Isuzu Ascender, Saab 9-7X
Will stop in 2010
GM. Lordstown
Chevy Cobalt, Pontiac
Pursuit, G4, G5
Ontario, Michigan, Illinois,
Indiana, Ohio in Focus
GM. Fairfax
Chevy Malibu,
Malibu Maxx,
Saturn Aura
GM. Wentzville
Chevy Express,
GMC Savana
GM. Bowling Green
Cadillac XLR,
Chevy Corvette
GM. Spring Hill
Saturn Ion and Vue
Currently down
GM. Doraville
Chevy Uplander,
Pontiac Montana
GM. Arlington
Chevy Tahoe,
Suburban,
GMC Yukon,
Cadillac Escalade
GM. Shreveport
Chevy Colorado,
GMC Canyon,
Isuzu brands,
Hummer H3
GM. Wilmington
Saturn L series,
Pontiac Solstice utdallas.edu/~metin
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.
Chevrolet Kodiak Truck
Stopping in 2008
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