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Toyota Production System

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TOYOTA KIRLOSKAR MOTOR PRIVATE


LIMITED
CONTENTS:
1 Introduction to Toyota
2 Profile of Toyota Kirloskar motor.

3 Toyota Production System practices in TKM.

4 Overview of TKM Logistics.


• Just In Time
• Kaizen- (Continuous Improvement in logistics)

5 Future “Supply Chain” Direction.


TOYOTA MOTOR CORPORATION

• Established in 1937 in Japan


• 160 Countries - 5400 Dealers.
• 26 Countries - 46 Plants
• Sales of 15.1 trillion Yen in March 2002
• 247,000 employees worldwide.
• Manufacture of all types of Vehicles
including Luxury & Small Cars.
Automakers ranking worldwide based on
vehicle sales
9000
2003 First quarter
8000 Result Toyota – No. 2
No. of Units Sold (1=1000 Units)

7000
6000
5000
4000
3000
2000
1000
0
GM Ford Toyota VW Daimler PSA Honda Nissan Renault Fiat
Chrysler

Company

Toyota is 3rd Largest Auto Maker in the World


TKM is the 14th & almost the last automobile manufacturer
to enter in Indian automobile industry
TOYOTA KIRLOSKAR MOTOR
PRIVATE LTD
Establishment : 6th October 1997
Location : Bidadi near Bangalore
in Karnataka State
Start of Production : Dec 1999
Production Model : Multi Purpose Vehicle
Passenger car
Production Capacity : 50,000 Units/year
Investment : US$ 170 Million
(Phase I)
No. of Employees : 2300
PRODUCTION / SALES Crossed
1Lakh cars
in Sept 03

50000

40000

30000
Volume

20000

10000

0
2000 2001 2002 2003

Corolla 1383 9000

Qualis 21086 28509 28989 34000


COMPLETE VIEW OF TKM PLANT
In-house facilities at TKM
Press Shop Weld Shop Paint Shop

Assembly Shop Inspection Area


ISO 14001 WITHIN THE FIRST YEAR
TPS AT TOYOTA
KIRLOSKAR MOTORS
IMPLEMENTATION OF TPS IN TKM
TAKT UP
TAKT UP (7.5’ - 7’) &
U
3500
n START OF TAKT (9.25’ - 8’) TAKT DOWN VEHICLE QUALITY TREND
UP (10’ TAKT
- 8’)UP TAKT (7’UP - 8’)
i TAKT UP(8’ - 7.5’)
3000 (12’ - 9.25’)
t START OF SECOND (9.25’ - 8’) TAKT DOWN
s SHIFT TAKT DOWN
2500 (8’ - 10’)
/ (8’ - 9.25)
M TAKT
TAKT DOWN DOWN
(9.25’(8’
- -
12’) 9.25’)
2000
o
n
PRODUCTION
t
1500
START OF VOLUME
h
1000
500

0
Dec- Jan- Feb- Mar- A p r - May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- A p r - May- Jun- Jul- Aug- Sep- Oct- Nov- Dec-

99 00 00 00 00 00 00 00 00 00 00 00 00 01 01 01 01 01 01 01 01 01 01 01 01

Just In Time Heijunka Visual Control Board Built in Quality


GLOBAL YIELD RATIO COMPARISON
This is the average
yield ratio of all the
suppliers I.e. STTI,

This data excludes 15.474 kg/veh of


70.00%
material saved by sending offals to
supplierpartslikeNTTF,STANZEN&

68.00%

QUALIS BASIC YEILD RATIO


66.00%

64.00%

62.00%

60.00%
TPS
58.00%
133W133W 140N 797T 209T 430T 351T 143N 40T 350T 231T 076W 325N 316T 040W 390T 415T404T 395T 065W 210T 186N 465N 450T 153T 391T 970T 081N 652T 651T 630T 702T 525T 828T 191N095N 133W971T 609T 108T 051N 701T 541T 860T 540T 250T 085N 908T 890T 477T 870T 185T 780T 277N 781T
60.0% 3.42%05.6% 00.0% 00.0% 05.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 20.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 1.26%00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 08.5% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 00.0% 1.48% 00.0% 00.0% 00.0% 00.0%
M
I PROVEMENTN
IYEL
IDASONAUG0-1
641.0% 641.0%692.0% 697.0% 689.0% 684.0%688.0% 684.0% 682.0%681.0% 68.00%679.9%679.0% 676.5% 672.7% 672.0% 648.0%665.0% 665.0%662.7% 661.0%66.00%658.0% 655.0%654.0% 653.0% 637.0%649.0% 648.0% 648.0% 648.0%647.0% 646.0% 642.0% 642.0%641.6% 641.0% 641.0% 637.0%635.9% 625.0% 631.0%63.00%628.0% 628.0%626.0% 626.0% 625.7% 625.0%625.0% 60.70%62.00%615.0%60.86%597.0%
DATACOLLECTEDDURNIGLN
IEO
-FFOFQUALS
I

MODELS

Standardized Work Challenge Team Work

GLOBAL TOYOTA LEVEL

REFORM
LEVEL

IMPROVEMENT

MAINTENANCE
AS ON DATE

TKM

0 TIME

M-I-R Genchi Genbutsu Jidoka Kaizen


OVERVIEW OF
LOGISTIC OPERATIONS
TKM’S Logistics concept

• Just - in - time supply

• Small lot - high frequency delivery

• Palletised cargo

• Standardized packaging
TKM SUPPLY CHAIN
CBU LOGISTIC

Steel Steel
Maker Center

CUSTOMER
Material Parts W A
Material Parts
Supplier Supplier DEALER
Information Information P T Insp.
Order Order
Information
Parts Feed Back

P Press shop
Information W Weld shop
TMC &
T Paint shop
Overseas
A Assembly shop
Plants -
Insp Inspection
CKD Parts
TKM LOGISTICS OVERVIEW

Delhi Transit Dock (2600 Kms)


North Area - 19 Suppliers
TMC
JAPAN

STM
THAILAND

Pune Transit Dock (900KMS) KUOZUI


West Area - 13 suppliers TAIWAN

SINGAPORE
TKM (TRANSHIPMENT) TAP
PHILIPPINES
Bangalore Plant
South Area - 28 Suppliers
Chennai Transit Dock (370 KMS)
18 Suppliers

INDONESIA

TAM
LOCAL SUPPLIERS DISTRIBUTION

Delhi Cross Dock


North Area - 19 Suppliers

Pune Cross Dock


Kanban suppliers- 40
West Area - 13 Suppliers
(74% parts)

Bangalore Plant Chennai Cross Dock


South Area - 28 Suppliers 18 Suppliers
JUST- IN-TIME
JUST IN TIME

MAKING MATERIAL AVAILABLE


TO NEXT PROCESS

• WHAT IS NEEDED The right part


• WHEN IT IS NEEDED At the right time
• IN JUST THE AMOUNT NEEDED.
JUST IN TIME Supported by
Procurement Methods for local parts
• Scheduled ordering for far of suppliers with cross
dock.
• Kanban based ordering for nearby suppliers without
cross dock
• Jumbiki ordering

In-house Logistics systems

• Welding (Chorukyu system)

• Assembly (Sequential supply system)


Logistic System - Milk run system
Conventional System TKM System

SUPPLIER-A

SUPPLIER-A

SUPPLIER-B TKM
SUPPLIER-B TKM

SUPPLIER-C SUPPLIER-C

LOW FREQUENCY HIGH FREQUENCY


BIG LOT TPS SMALL LOT
HIGH INVENTORY LOW INVENTORY
Cross dock operation for Milk run system

S1 S1
Sub Route 3
Sub Route 1
1 Cross 3 S2
S2
Dock

S3 S3
S4

S1 2 S4

Sub Route 2
S2
S3
Cross dock operation for Milk run system

Delhi Cross Dock

Main Route

Pune Cross Dock

Main Route Main Route

TKM

Chennai Cross Dock


Optimum Route Planning

122
day trip truck spec cmt
route area supplier Cyc
cmt kg route cmt kg type cmt kg %
CS011 CHEN W 15.744 5535 1-2 CS01 37 8976 HCV 32 9000 115%
CS012 CHEN B 0.131 45
JG CHEN B(JG) 1.500 1770
CS013 CHEN I 19.500 1627
CS021 CHEN BT 9.608 516 1-1 CS02 17.688 1768 LCV 24 4000 74%
CS022 CHEN R 8.079 1251
CC011 CHEN A 52.722 6571 1-1 CS03 52.722 6571 LDV 55 6800 96%
RM CHEN H 0.800 200 - - 0.800 200.0 - - - -
RM CHEN A 0.100 20 - - 0.100 20.0 - - - -
RM CHEN N 0.100 20 - - 0.100 20.0 - - - -
Standardized Truck Timetable
Logistics on fixed time / variable qty basis
ROUTE NO. CS01
TRUCK TYPE HCV

Place Dist Time T/T 4 5 6 7 8 9 10 11 12 13 14 15

29.Apr 7:30
Cross Dock 9:00
29.Apr
6km 0.15hrs
Sup-A 29.Apr 9:15
29.Apr 10:15 1.00hrs
1km 0.10hrs
Sup-B 29.Apr 10:25
29.Apr 10:55 0.30hrs
28km 0.40hrs
Sup-C 29.Apr 11:35
29.Apr 12:35 1.00hrs

35km 1.30hrs
High Frequency Delivery
F Delhi & West : 1 times a day
F Chennai, South India : 4 times a day
F Bangalore : 4 - 16 times a day

TKM

Supplier A Supplier D

Supplier B Supplier C
LOGISTIC CONTROL IMAGE TRANSYSTEM
Joint venture between
TKM LOGISTIC
TKM PROVIDER Mitsui corp. (Japan)
Volume Calculation &
Receiving Plan
TCI (India)

Central Operation Control

Long-Route
Cross-Dock TKM
Suppliers

Short-Route
Suppliers TKM
Truck Status Control

Detect En-route Problems = Never stop the line

F Procedure
Long-Route : Driving-Members call from predefined points
Local-Route : Controlled by Radio-Receiver up to 60km

F Visual Control (Status-Board)


Special Design Fleet

Side Loading Method


F Wing type truck
F Sliding door type

F Swing door type

Long Deck Sliding Door : 16 (50cmt)


HCV Sliding Door : 10 (32cmt)
LCV Sliding Door : 4 (24cmt)
HCV Gull-Wing : 5 (32cmt)
LCV Gull-Wing : 3 (24cmt)
TKM - Inventory Status
9

8 -Supplier Delivery &


Quality
improvement
7

5
Stock in Days

-Milkrun pick up of parts.


- Transhipment of parts
4 to Main truck
- Truck status control.
- Daily arrival of parts
3 - Frequency increase through
Mix Logistics with TKM
Suppliers.
2 - Lot Size reduction
- Double cross docking (Delhi
Daily arrival 1 Day Suppliers)
(16 hrs)
1
Safety Stock 1 Daily arrival 4
Day (16 Hrs ) Hrs (0.25 days)
0 Safety Stock 6
Hrs (0.3 days)
Conventional SVP TKM Current TMC TKM Future
System
( Dec ‘ 99 ) ( Y 2003 ) ( Max 2 Hrs ) (Y 2004 –Oct )

Inventory of far off supplier with Cross dock operations – Delhi & Pune
JUST IN TIME

KANBAN SYSTEM
KANBAN OPERATION OVERVIEW
TKML SUPPLIER

11

12

CHECK
SHEET
APL 1-2-2
KBN NO. QTY GRN IN PUR
KBN 111 2
222 222
333
1
4 SYS A/C
XXX Y

KBN PAYABLE
222
1 1

1 1

SUPPLIER LINE SIDE


1 1

10
10
LINESIDE CHECK
SHEET

1
APL 1-2-2
KBN NO.

2
QTY
111 2
KBN
KBN 222 1
333 4
222
222 XXX Y

KANBAN
KBN POST
111

9 KBN
222

KANBAN SORTING ROOM

9
8
APL STTI TGK DNKI NTTF
INCOMING KANBAN
3
TIME LOC1LOC2LOC3LOC4
TRUCK1
TRUCK2
TRUCK3

4
CHEC
K
SHEE
T
7
APL
1-2-2
K

EMPTY BOX

5 6
LOCAL PARTS KANBAN SAMPLE

SUPPLIER
INFORMATION :
TG KIRLOSKAR
TKM
KEY CODE :1234567890 PART DETAILS :
T004-A GLOVE COMPARTMENT

PROCESS CODE : LOCATION CODE :


ASSEMBLY T2R-2

QTY/BOX
55581- 0B010- 00
10

PACKING CODE :
PB10123
516 SEQ NO
1
DOCK
01
PARTS READY FOR DESPATCH AT SUPPLIER SIDE
(BANGALORE SUPPLIER CASE OPERATING WITHOUT CROSS DOCK)
LOADING / UNLOADING USING FORK LIFT

LABELS FACING OUTSIDE


PARTS PALLETISED
Parts stacking at PC Zone ready for in-house logistics:
•Parts are stored at PC Zone at predefined locations Line wise or
process wise.
TKM - Inventory Status
9

6
Stock in Days

4
Kanban System
3 -1~ 16 delivery / day
- Truck status control
2 by wireless – Time - Frequency increase
control with Mix logistics of
TKM Suppliers
1 Safety Stock Avg
6 Hrs (0.3 days)

0 Safety Stock Avg Avg 2 Hrs


4 Hrs (0.25 days )
Conventional System TKM Current TMC
( Y 2003 )

Inventory of Bangalore supplier ( No Cross dock operations)


JUST IN TIME

JUMBIKI SYSTEM

( Sequential Procurement )
JUST IN TIME
Jumbiki System

• System for total elimination of Inventory.

• System to supply Parts directly from


supplier to Assembly line according to
sequence of production.

• Suitable for bulky Parts with more variants


& supplied by nearby supplier
e.g- Seats, Door Trims, Carpets (Araco)
CENTRAL CONTROL ROOM (CCR)
JUMBIKI SYSTEM

Line In - Based on Production Leveling Assembly

ASSEMBLY LINE

Information to CCR

Receiving and
Fax to Supplier
Supply to Line

Preparation at Supplier &


Transport to TKM

Pre defined Time Scale based on tact time


JUMBIKI SYSTEM
CONVENTIONAL SYSTEM JUMBIKI

Model A Model B Model C Model A Model B Model C


Assembly
Assembly Line
Line

For Model A For Model B For Model C

A1 A1 A1 B1 B1 B1 C1 C1 C1 A1 B1

A2 A2 A2 B2 B2 B2 C2 C2 C2
TPS A2 B2

A3 B3
A3 A3 A3 B3 B3 B3 C3 C3 C3

Seats received from supplier


Stock of each set in sequence of Production Plan
JUMBIKI PARTS RECEIVED
JUMBIKI SEAT AT LINE SIDE
JUST IN TIME

IN-HOUSE
LOGISTICS
JUST IN TIME
INHOUSE LOGISTICS (Chorukyu System)
WELDING SHOP
CONVENTION SYSTEM TKM SYSTEM

Manufacturing
Manufacturing

TPS
A1 A2 A3 A4
A5 A6 A7 A8

A1 A2 A3 A4

A5 A6 A7 A8
INHOUSE LOGISTICS (SMALL LOT SUPPLY)
INHOUSE LOGISTICS – ASSEMBLY SHOP
SEQUENTIAL SUPPLY SYSTEM
INHOUSE LOGISTICS – ASSEMBLY SHOP
SEQUENTIAL SUPPLY SYSTEM
SUPER FLEXIBLE ASSEMBLY LINE

TKM IS CHALLENGING NEW CONCEPT OF SUPER FLEXIBLE LINE

THAT IS MIXED PRODUCTION OF MPV (frame model) AND


PASSENGER CAR (monocock model) ON SINGLE PRODUCTION LINE,

BY QUICK LAUNCHING OF NEXT MODEL ON THE EXISTING


PRODUCTION LINE.
KAIZEN
(CONTINUOUS IMPROVEMENT)
Kaizen based on practice of manufacturing
Shooter system to maintain perfect FIFO

Before After

•FIFO not followed •FIFO achieved


•Mikara not established •Mikara established
•Unsafe movement of F/L • F/L movement standardized
Kaizen based on practice of manufacturing
Pallet, Dolly, Flow rack to reduce handling
Before After

•Double handling of Parts •Direct supply of parts


•Generates waiting time •zero waiting time
•Fatigue while parts picking •Workability improved
•Space reduced (210 Sq.mt)
Kaizen based on practice of manufacturing
Combined Logistics
Kaizen based on practice of manufacturing
Collapsible - Returnable packing

The space saved by this kind of packing is


used to transport service parts to dealers
on the return journey
Kaizen based on practice of manufacturing
Kaizen in packing areas
1
Plastic Caps of hose
flexible eliminated

2
Achieved 99%
returnable packaging
FUTURE DIRECTION
E - Kanban Supplier
operations

SUPPLIER

S1 S2 S3 S4 S5
SERVICE
SERVICE
PROVIDE
PROVIDE S8 S9 S1 S1 S1
R 0 1 2
R CROSS
CROSS
DOCK
DOCK
Download
Kanban
data

TKM in-house
operations
Cross Dock
operations
TKM e Kanban
information to
Suppliers/
P In-house Bar Cross Dock CROSS DOCK
Coded

W
PC
Kanban
Kanban S1 S2 S
3
S4 S5

Z
S S S S S
Room 1 2 3 4 5
S8 S9 S S1 S1
S S S S S 10 1 2

O
8 9 1 1 1
Store Cards 0 1 2
T
Download
N Insert
cards
Kanban data
A
E Store
Parts
Receive Material
1st Step Mixed Logistics

Increase frequency Mixed Logistics


Concept
Reduce lot size

Purpose:
1) Share logistics between TKM & Supplier.
2) Reduce lot, increase delivery frequency and finally
reduce inventory.
3) Reduce transportation cost.
4) Mutual development and benefit between TKM &
supplier.
Example Mixed Logistics Image

TKM - TKAP Mixed Logistics


Closing word

We live in an age of constant change

‘Today's perfection is tomorrows


mediocrity’

We need to realise & improve


THANK YOU FOR YOUR ATTENTION