Toyota Business Practices
Sustainability drivers for investment
and activity
Andreas Kammel
Environment Policy Manager – Toyota Australia
© 2015 Toyota Motor Corporation Australia Limited
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Toyota Australia Overview
REGIONAL OFFICES =
•Townsville
•Brisbane
MELBOURNE
•Sydney
•Melbourne
Port Melbourne
• Corporate Head Quarters
(CHQ)
•Adelaide
•Darwin
WA Distributor
Altona Manufacturing Plant
• Engine, Foundry, Press, Paint and Assembly
LOCAL SUPPLIERS
 Approx: 1,700
 Purchase value: A$1.65 b
SYDNEY
• Sales & Marketing
TMCA EMPLOYEES
DEALERS
• Total: approx. 4,000
 Toyota: 210, Lexus: 19
 Employees: approx. 12,000 • Nationalities: 60+
© 2015 Toyota Motor Corporation Australia Limited
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Toyota is Australia’s biggest manufacturer of cars
© 2015 Toyota Motor Corporation Australia Limited
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In 2014 nearly 100,000 Camry, Camry Hybrid and
Aurion left our Altona factory.
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The Toyota Way
The Toyota Way is the foundation of how
Toyota does business
It focuses on:
•Respect
•Teamwork
•Challenge
•Kaizen
•Genchi Genbutsu
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The Toyota Way is in all parts of our operation
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Respect – Grow our people
Sustainability requires
engaged employees.
We address this through:
• Empowering employees in
the workplace (Suggestion
Scheme, Andon)
• Quality/environment awards
• Forming and recognising
Environment Teams in key
areas of the business
• Developing employees
(Upskilling, ICT)
© 2015 Toyota Motor Corporation Australia Limited
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Case Study
Activity:
TMCA recently undertook an ‘Energy
Treasure Hunt’
This project involved:
• Promotion through internal
Newsletter
• Forming project teams in each shop
• Providing training and a base
‘checklist’ of potential activities
• Checking non-production, start-up
and normal operations for ideas
Outcome:
• The Treasure hunt identified 332
Kaizen ideas with a saving potential
of 958 MWhr/yr
© 2015 Toyota Motor Corporation Australia Limited
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Teamwork – Collaborate across boundaries
Sustainability requires
partnerships.
TMCA looks to:
• National and International
developments and responses
(TMC)
• Involvement with partners
– Suppliers (local/global)
– Dealers
– Affiliates/Competitors
– Government
© 2015 Toyota Motor Corporation Australia Limited
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Teamwork – Case Study
TMCA is currently commissioning
a new biological waste treatment
process.
• Reduces prescribed waste by
60%
• TMCA partnered with supplier
and EPA
• Overseas affiliates are now
sending several engineers on
study visits (2-3 months)
• Local staff got involved
through ‘naming contest’ – for
“Chester the Digester”
• Now trialling new waste
streams
© 2015 Toyota Motor Corporation Australia Limited
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Challenge - Hoshin (Breakthrough thinking)
Sustainability requires new ideas
• Hoshin is the philosophy of
challenging the existing Status
quo (i.e. Prius Hybrid)
• Question when someone says
“Its always been done this way”
• Ask ‘Why?” at least 5 times
• Set ambitious targets (50% not
5%)
• Concepts can often be trialled at
a small scale first.
© 2015 Toyota Motor Corporation Australia Limited
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Hoshin – Case Study
TMCA has recently
commissioned its “Solar Roof
PV project”
This project involves 0.5MW PV
installation
• $2 million investment (50%
co funding)
• 5 Year payback
• 2% Reduction in CO2
emissions
• 600,000 tons of CO2 abated
over 20 years
• $200,000 cost reduction per
annum
• Online in April 2014
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Kaizen (Continuous improvement) – Be innovative
Sustainability happens
everyday and everywhere
• Get the best out of
mandatory programs
(EREP, etc.)
• Focus on monitoring and
measurement
• Visualisation helps to
maintain performance
• Appropriate responsibilities
and escalation
• Daily/Weekly/Monthly
Management
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Kaizen - Case Study
Activity – Install Variable Speed Drives:
• Detailed analysis of current power
consumption
• Install Inverter to control speed of Fans
• Consult with all stakeholders
Outcome:
• Power savings: $23,294
• Gas savings: $28,071 (reduced air flow)
• Maintenance: $2,128 (no need to repair
belts & pulleys on a regular basis)
• Equipment parts cost savings: $3,950
(motors ramped up slowly = less stress)
• Total savings: $57,443 per year
• Implementation cost: $34,700
• Pay back 7 Months
© 2015 Toyota Motor Corporation Australia Limited
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Genchi Genbutsu (Go to the workplace)
Sustainability requires common
understanding
• Familiarise yourself with your
operations (and operators) at the
Genba
• Problems become easily visible
• One visit can save a thousand
words
• Our senior management visits the
shop floor monthly to review
environmental performance
• Visits include a ‘Kaizen’
presentation of an improvement
idea
• Builds good relationships between
staff and management
© 2015 Toyota Motor Corporation Australia Limited
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Genchi Genbutsu – Case Study
Monthly Environment PMRs
review
• 30 minute monthly meeting in
the workplace
• Deviation to targets identified
through visualisation
• Countermeasures developed
and signed off in presence of
management
• Issues readily identified by visit
to actual location
• Representation from other
departments
• Instils a sense of care and
responsibility
© 2015 Toyota Motor Corporation Australia Limited
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Nemawashi (Building consensus)
Sustainability needs consensus
We want to be part of the businesses
which set future directions within
government and industry by:
• Being a part of government and
business roundtables
• Participating in trials and training
• Helping to develop new Standards
(tailpipe emissions etc)
• Open discussion and analysis of
sustainability issues (i.e. ELV’s)
• Developing future roadmaps for
new products (PHEV, FCV etc)
© 2015 Toyota Motor Corporation Australia Limited
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Waku – Doki (A fluttering heart)
Sustainability can be exciting
It is important to have a sense of
‘excitement’ in business.
• We want to instil in our
employees and customers a
sense of adventure and fun
• Involvement in driver training
• Sponsoring sports and motor
sports
• Encouraging participation in
CSR activities by employees
(National Tree Day)
© 2015 Toyota Motor Corporation Australia Limited
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Toyota – Always better cars
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