Toyota logistics

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Presentation for the logistics class. Szkola Glowna Handlowa w Warszawie.

Presentation for the logistics class. Szkola Glowna Handlowa w Warszawie.

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  • 1. TOYOTA MOTORCORPORATION International LogisticsSzkoła Główna Handlowa 2012
  • 2.  Introduction Business Model Key Technologies Logistics Supply Chain Summary
  • 3.  First car Toyota AA was created in 1936 Founded by Kiichiro Toyoda in 1937 Toyota Motor Sales Co., Ltd. is established in 1950 Toyota Motor Manufacturing, USA, Inc. begins production in 1988 Includes Toyota , Lexus, Daihatsu and Hino Motors
  • 4. Quick facts• In 2010 Toyota employed over 300,000 people worldwide• The largest automotive manufacturer• 11th largest company by revenue• 200 million vehicles manufactured• Toyota spends 1$ million every hour for R&D• Toyota does business in more than 170 countries globally• Toyota Motor Corporation ranked 3 on Forbes magazine’s Global 2000
  • 5. BusinessmodelThe “Toyota Way” incorporates the Toyota Production System (TPS).The main objectives of the TPS are to design out overburden (muri) andinconsistency (mura), and to eliminate waste (muda). The basic principles are:-Just In Time (JIT)The phrase originated at Toyota and originally described how material should beprocessed and moved in order to arrive "Just In Time" for the next operation.Objectivel: produce whatever necessary, whenever necessary, the necessaryquantity-Lean manufacturing (Lean)The concept of preserving value with less work. This production practiceconsiders the expenditure of resources for any goal other than the creation ofvalue for the end customer to be wasteful, and thus a target for elimination.
  • 6. The ToyotaProduction System 7 kinds of Muda (waste) Respect - understand each other and build  over production (largest waste) mutual trust.  time on hand (waiting)  transportation Teamwork - stimulate personal growth and  processing itself improve team performance.  stock at hand  movement  making defective products Poka yoke - processes designed to prevent human errors, baka yoke or "idiot-proofing" Principles of continuous improvement Kaizen - we improve our business operations continuously, always driving for innovation and evolution. Genchi Genbutsu - go to the source to find the facts to make correct decisions, "go and see"
  • 7. “4P” modelof the Toyota Way •Continual organizational Learning through Kaizen • Go see for yourself to thoroughly Understand the Situation Problem (Genchi Genbutsu ) Solving • Make decisions slowly by Consensus, thoroughly considering all options; (Continuous Implement Rapidly Improvement & Learning) • Grow Leaders who live the Philosophy People & Partners • Respect, develop, and challenge your People and Teams (Respect, Challenge • Respect, challenge and help your Suppliers & Grow Them) •Create process “flow” to surface problems • Use pull systems to avoid over production • Level out the workload (Heijunka) Process • Stop when there is a quality problem (Jidoka) (Eliminate Waste) • Standardize tasks for continuous improvement • Use Visual Control so no problems are hidden • Use only reliable, thoroughly tested technology. •Base management decisions on a Long-term Philosophy philosophy, even at the expense of short-term (Long-Term Thinking) financial goals
  • 8. InboundLogistics Toyota establishes a partnership with a limited number of 3PLs Toyota’s inbound logistics operation is described as a logistics network. Entities: Suppliers – Cross-docks – Toyota’s plants Milk routes  The route plan it is done once a month.  It is necessary to know the location of the entities and the number of packages/containers.  Road routes and distances between all potential destinations are considered.
  • 9. OutboundLogistics Also known as product distribution, because the function of outbound logistics is to distribute the finished products from the OEM plants to the retailers Transport to Vehicles at Final quality dealers by marshaling yard assurance railroads and trucks Accessories Transport to installation dealers directly by trucks
  • 10. KanbanKanban is a scheduling system for lean and JIT production. It is not aninventory control system; it is a scheduling system that helps determinewhat to produce, when to produce it, and how much to produce. Kanban rules1.Do not send defective products to the subsequent process2.The subsequent process comes to withdraw only what is needed3.Produce only the exact quantity withdrawn by the subsequent process4.Level the production5.Kanban is a means to fine tuning6.Stabilize and rationalize the process.
  • 11. Productionfacilities
  • 12. Production and sales Region Production Sales (x 1000) (x 1000) North America 1206,1 1806,9 Latin America 195,1 333,5 Europe 450,3 801,9 Africa 150,8 211,9 Asia 2062,8 1998,2 Oceania 93,7 215,9 Middle East / 527,5 Overseas total 4168,8 5895,9 Japan 2760 1201 Worldwide total 6928,8 7096,9 Source : http://www.toyota-global.com/company/profile/figures/vehicle_production_sales_and_exports_by_region.html
  • 13. Supply system OEM Tier one  Tier two Tier three supplier Tier one suppliers incorporated into the production development program Sole-Sourcing „Lean” Production Source: http://searchmanufacturingerp. techtarget.com/definition/lean-production http://www.economist.com/node/15576506
  • 14. SCM prosand cons Pros:  Long-term and benefitial relationship between suppliers and Toyota  Flexibility  “Just in time” approach  Adjustment to customers’ tastes and changing demand Cons:  Weak parts of the supply chain under great strain  Dependency on suppliers outside Japan
  • 15. RecallsRecalls of approximately 5.2 million vehicles for the pedal entrapment/floor mat problem, and an additional 2.3 million vehicles for the accelerator pedal problem.The vehicles affected in Europe are: Toyota Aygo (automatic models only) Toyota iQ Toyota Yaris Toyota Auris Toyota Corolla Toyota Verso Toyota Avensis Toyota RAV4
  • 16. Production system summary