Supply Chain Management Of Toyota

Presented By
Sneha.LS Soujanya.N

Toyota Motor Corporation
Founded Founder Headquarters 1937 Kiichiro Toyoda Toyota City, Japan

Industry Products
Revenue Employees

Automotive, Robotics, Financial Services and Biotechnology Economy/mainstream/luxury vehicles
18.583 trillion (2012) 300747 (2012)

cumulative production >10M units .History of Toyota Auto Industry  Established in 1937 out of Sakichi Toyota’s weaving machine company  Launched first car (SA Model) in 1947  “Toyota Production System” formed in 1950 based on just in time principal  First global expansion in 1959 at Brazil  In 1972.

Founder & CEO  Founder: Kiichiro toyoda  CEO : Akio toyoda  MD: Hiroshi nakagawa  Present CEO : Fujio Cho .

recreational vehicles.  Others • Industrial vehicles (forklifts.Business segments  Automotive • Design. SUVs and related parts  Financial services • Provisions of loans to car buyers and car deals. manufacture and sales of passenger cars. etc.) .

RAV4  Cars.  Highlander and Camry  Plug. Auris.Product line  Electric technology.Toyota hybrids  All electric vehicles.70 different models  SUV’S  Luxury type vehicle .

2 million   will produce the Mitsubishi Regional jet.Non. It has also produced aircraft TAA-1 in 2002 .Automotive Activities AEROSPACE  Toyota is a minority shareholder in Mitsubishi Aircraft Corporation  invested US$67.

Philanthropy • Toyota Municipal Museum of Art in Aichi helping low-income community members for education • United Negro College Fund (40 annual scholarships) • National Underground Railroad Freedom Centre (US$1 million) .

manufacturing.  Developing multi task robots destined for elderly care. • Toyota Community Scholars. • contributed to a number of local education.Higher education  Toyota established the Toyota Technological Institute in 1981. Toyota showcased its trumpet-playing robot. as Sakichi Toyoda Robotics  In 2004.  Example of Toyota's involvement in robotics for the elderly is the Brain Machine interface .  It founded the Toyota Technological Institute at Chicago in 2003  Supporter of• Toyota Youth for Understanding Summer Exchange Scholarship Program. and entertainment.

SCM Minimizing supply chain costs while keeping  a reasonable service level  customer satisfaction  quality  on time delivery. etc. OBJECTIVE Right product Right price Right store Right quantity Right customer Right time .

Supply chain overview Suppliers Parts Inbound logistics Assembly plant Production Inspection Outbound logistics Dealers Customers .

•Since Toyota relies on JIT it had parts provided by hundreds of suppliers. It moves to final line where supplier parts are installed to make finished vehicle. It moves to paint shop. •The plant is sub divided in to shops. tier 2 …. Ex: Denso. Suppliers •Suppliers provide thousands of Production • Vehicles are produced at the final assembly plant from the parts and components that go into he vehicle. •After body being assembled. •Parts and components are received from tier 1 suppliers through inbound logistics.Supply chain Contd…. •Supplier chain contains several levels : tier 1. •The body shop is where numerous robots are used to weld the body parts together. •The body parts are stamped in the stamping shop by presses. Bridgestone etc . •After painting. The vehicle is born in the body shop where the frame and body are formed. And so on.. •Final Inspection is done and moved to yard fewer but reliable tier 1 suppliers.

. parts are unloaded and staged for each assembly plant and then loaded to trucks which take parts directly to each plant. • Parts are picked up from those suppliers by trucks on a milk route and delivered to regional cross dock. • Returnable containers flow in reverse route. Inbound Logistics: • Company establish partnership with third party logistic providers • Company organizes many of its suppliers into clusters based on geographic location. the truck is reloaded with the corresponding empty returnable containers. • At cross dock.Network design to analyse locations of suppliers Determine which cross dock is located nearest to suppliers Transport parts to cross docs and stage them for each assembly Transport to plants and containers travel in reverse route. • After the parts are unloaded.

• Fair Competition Based on an Open Door Policy • Amicable Relationship of Mutual Benefit Based on Mutual Trust • Environmentally-Friendly Products Based on ”Green Procurement” • Localization of Business Based on Good Corporate Citizenship • Obeying the Law . and equipment for these many different business fields from suppliers all over the world. materials.Procurement Policy  Toyota procures the necessary parts.  They take a long term view toward our relationships with suppliers with an aim to realize an amicable relationship of mutual prosperity based on fair business practices.  Toyota also cooperates with their Suppliers to promote environmental preservation and meet the other demands of society.

Local Distribution Model Toyota Distribution model: Distribution Model Over seas Distribution Model European Distribution Model . •Toyotas sales model is designed so that a high percent age of vehicles is sold from a relatively low level of dealer stock.Outbound Logistics Vehicles at marshalling yard Accessories installation Final quality assurance Transport to dealers Dealers: •Responsible For selling the vehicles produced by the manufacturer to there tail customers.

TOYOTA SUPPLY CHAIN Parts/ Service Centers Dealer Customer Distributor Overseas Network Warehouse Assembly Plant Components Supplier Group Raw Material Suppliers .

.FEATURES OF TPS JIT Technical Related Kanban TPS Workers People Related  Revolutionized manufacturing industry  At its core is “lean”  a relentless drive to improve efficiency and eliminate waste Suppliers  Beginnings of TPS were born out of necessity due to lack of resources in post-war Japan.

 JIDOKA • One of the two main pillars of TPS. Without this.  Heijunka • Where ever possible evenly distributed workload  JIT • Just In Time manufacturing • Small batches which reduced inventory costs. . tightened relationship with suppliers and improved quality control made at any time. just in time cannot be applied. because it will happen stacking and queuing at peak level.(equip malfunction). by man or machine.  Total Productive Maintenance • A comprehensive equipment maintenance process so that the tools are always in good condition to wear to work.Key Main Concepts Of TPS  SMED • Single Minute Exchange of Dies • Promoted flexibility of production runs • It refers to the ability to stop production.

integration of older models . recoverability  Increased emphasis on financial services and information communication system  Hybrid vehicles and next generation fuel cells  Cost-reduction efforts  discontinuation. emission.Toyota’s Strategy  Increase competitive strength through advanced technology  Environmental technology  fuel consumption.

Financial Planning Process Establish Goals and Objectives Review your goals and current situation Develop a Strategy to meet your needs Implement Recommendation Make Recommendation .

•Fitting accessories. transport within the country and ships for export. price tag and final quality assurance takes place here. supplier. •Road transport is provided by third party logistic providers. •Finished products transported through truck or rail for Sourcing •Majority of transport of raw material through truck . •13 week forecasting is given to suppliers to provide them with guidance. Information: •Parts and master database is maintained for part name. Inventory: •Just-in – time based inventory method.Drivers of Supply chain Facility: •Vehicles coming out of assembly line are moved into warehouse called “Marshaling yard” . lot size information. since Pricing . Transport: suppliers stay close to plant. • Pull based system and kanban methods are followed.

namely TPS (Toyota Production System).Conclusions •Toyota is a great company with an integrated supply chain management as well. •Toyota has an integrated system in its production. . it is evidenced by the wide range of awards •Toyota have 14 principles which refers to the quality of service. •Toyota has a wide range of advantages ranging from human resources to its products. •Toyota lead because his concept of lean management. product quality and efficiency •Toyota including Indonesia's largest company automotive in the world.

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