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Toyota Business Practices

Sustainability drivers for investment


and activity
Andreas Kammel
Environment Policy Manager Toyota Australia

2015 Toyota Motor Corporation Australia Limited

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

Toyota is Australias biggest manufacturer of cars

2015 Toyota Motor Corporation Australia Limited

In 2014 nearly 100,000 Camry, Camry Hybrid and


Aurion left our Altona factory.

2015 Toyota Motor Corporation Australia Limited

The Toyota Way


The Toyota Way is the foundation of how
Toyota does business
It focuses on:
Respect
Teamwork
Challenge
Kaizen
Genchi Genbutsu

2015 Toyota Motor Corporation Australia Limited

The Toyota Way is in all parts of our operation

2015 Toyota Motor Corporation Australia Limited

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

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

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

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

2015 Toyota Motor Corporation Australia Limited

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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

2015 Toyota Motor Corporation Australia Limited

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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. ELVs)
Developing future roadmaps for
new products (PHEV, FCV etc)

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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

2015 Toyota Motor Corporation Australia Limited

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