August 17, 2012 Energy Huntsville Forum 1 Toyota Manufacturing in North America CAPTIN 1985 Vehicle Plants - 7 TMMC 2 2008 Unit Plants - 5 TMMC 1988 Engine Plants - 2 Regional HQ TABC 1971 BODINE 1990 SIA 2007 TMMI 1999 BODINE 2005 TMMBC 2004 TMMMS 2011 TMMTX 2006 TEMA 1996 TMMWV 1998 TMMK 1988 TMMAL 2003 $21+ Billion Invested 40,000 Direct Employees 2 TMMAL Overview – Company Profile Foundation: June 1, 2001 Investment: $700 million (by Spring 2014) Location: Huntsville, AL Toyota Property Line NEW 3.5L V-6 Plant Size: Land 200 acres Building 1.08 million sq ft Employees: 1,150 (by Spring 2014) 4-Cyl 4.0L V-6 5.7L & 4.6L V-8 1GR E/G (V6 4.0L) 3UR E/G (V8 5.7L)& 1UR E/G (V8 4.6L) 1AR FE(2.7L)& 2AR FE (2.5L) 146,000/yr 144,000/yr 216,000/yr SOP Aug. '05 Dec. '06 (3UR), March '09 (1UR) Sept. '11 Stats 24 valve 245 HP 32 valve 381 HP / 32 valve 310 HP 16 valve 182 HP / 16 valve 178 HP Customers TMMBC, TMMTX TMMI, TMMTX TMMK, TMMC, TMMI, SIA Engines Capacity 3 What Makes Toyota Different? • Empower Team Members • What Gets Measured Gets Done • Never Stop Improving 4 TMMAL Environmental Team What is the Environmental Team? • • • Provides support, guidance and standardization Team Member-driven Environmental system/program Follows annual calendar for activities, training and audits Who is on the Environmental Team? • • • Voluntary position 2 per Group House – 1 per shift Serve at least one year, many serve longer if trained as Internal Environmental Auditor 5 Regular Environmental Activities Process Checks DAILY Kamishibai Checks WEEKLY Team, Management Meetings MONTHLY Audits SEMIANNUAL Kaizen Blitz SEMIANNUAL 6 Daily Process Checks • • • Production Team Members check their process daily at start and end of shift Report any issues or concerns for compliance or risk Enables management, Environmental Team Members to quickly address issues and implement countermeasures Right: Mist Collector Machining Process Below: Daily Checksheet 7 Kamishibai Checks 紙芝居 = “paper drama” •Form of Japanese storytelling •Often shared with elementary-age children • Use card system and board for audit tracking Environmental Team completes weekly audit on all items in daily checks • – – – • Managing your process Compliance and risk Knowledge retention Ensures production Team Members are completing daily checks accurately 8 Team & Management Meetings • Monthly Team meeting to: – – – • Share targets and results Communicate new requirements Highlight special events Provide monthly status update to upper management, address any specific issues raised in Monthly Team Meeting 9 Semiannual Environmental Audits • Specially-trained group of auditors within Environmental Team • Conduct semiannual audits to confirm system health. Look for: – – Compliance and risk management Training records and document control • Face-to-face interviews with randomly selected team members on environmental awareness topics • Auditors responsible for multiple areas in plant, but can’t audit own area 10 Semiannual Kaizen Blitz KAIZEN – Continuous Small Improvement BLITZ – Hitting it from all directions in a concentrated effort! Cross functional team focuses on improvements in specific environmental impact areas: – Energy – Water – Waste – Special Projects 11 Semiannual Kaizen Blitz • Corporate offices provide target reduction percentage, TMMAL calculates identified savings for next year • Potential kaizens placed on following FY’s Environmental Management Plan – TMMAL currently working on items identified in FY12 12 Semiannual Kaizen Blitz FY12 Energy Reduction 1,400,000 Kilowatt Hours 1,200,000 1,175,400 283,500 kwh, $19,845 annual savings using compressed air actuators in production areas 1,000,000 800,000 600,000 400,000 200,000 1,069,532 123,662 kwh, $8,656 annual savings by replacing outside lighting 0 Target Actual 13 Semiannual Kaizen Blitz Compressed Air Actuators 13 valves not being used in production areas • 63 hours/week • Estimated Annual Savings: – 283,500 kwh/year – $19,845 / year 14 Semiannual Kaizen Blitz Old Outdoor Lighting • Switch outside HPS lighting to UCD Lighting • Reduces energy usage by 70% • Total of 100 pole lights Cost = $23,993 Savings = $8,656 / yr New Payback = 2.75 yrs Energy Reduction = 123,662 kwh/yr 15 Semiannual Kaizen Blitz FY12 Water Reduction 800000 Gallons 600000 400000 630,000 gallons saved using Nano Filtration system to recover 70% of lost water 655,000 411,000 200000 0 Target Actual 16 Semiannual Kaizen Blitz 6/7 cycles History • Average Summer monthly usage = 1,000,000 gallons • Average waste = 150,000 gallons Projected • 70% of lost water will be saved with filter • 105,000 gallons will be put back in system 1/7 cycles Nano Filter 17 Semiannual Kaizen Blitz FY12 Waste Reduction 70000 Kilograms 60000 50000 More than $70,000 savings identified through improved waste recycling opportunities 62,000 40000 30000 27,000 20000 10000 0 Target Actual 18 Semiannual Kaizen Blitz Covanta Go-and-See • Environmental Team Members visited Covanta site • Potential Items to be recycled: – Cardboard – Plastic – Paper – Parts – Dunnage • Target 50% of load diverted to recycle stream Driver left debris when leaving compactor 19 Summary • Empower Your Team Members • What Gets Measured Gets Done • Never Stop Improving 20 Any questions? 21