MIX PLANNING

VARIETY : As per Region, representing the popular mix

demanded.

VELOCITY : Maintained by limiting variety following 80-20 rule.

Faster response to customer with decreased rate of inventory at dealers.

VARIABILITY : reduced by synchronizing sales and

operations planning to focus on few variants(~20%) by region

VISIBILITY : accurate demand forecasting,limiting the

impact of low volume variants,thus stabilising the operations and supply chain

SALES AND OPERATIONS PLANNING

VARIETY : managed by keeping national aggregate mix( packages
and colours) stable over time

VELOCITY : adjusted to match feasible production rates(TACT) at

plants

VARIABILITY : managed by adjusting sales incentive to

deliver planned sales

VISIBILITY : ensured by tight linkage of sales and operations

plans .developing them in collaboration and deploying them across the system

PRODUCTION SCHEDULING
VARIETY : is planned and distributed across periods (using heijunka) to
balance tasks.

VELOCITY : is maintained using a rate-based planning of flows balanced

across the supply chain. By eliminating bottlenecks, the velocity is maximized.

VARIABILITY : is curtailed with heijunka to smooth out workload and

loadings. That variability reduction enables suppliers to plan their capacity reliably and thus lower costs

VISIBILITY : is ensured by eliminating inventories, simplifying planning,

ensuring buy-in, and so on.

PARTS ORDERING
VARIETY : of parts is managed by linking parts delivery to production
sequence, particularly for sequence suppliers. Mix planning ensures that the aggregate mix across options is stable.

VELOCITY :

of parts flow is directly linked to production sequence and

takt time; thus, supplier velocity is tied to production velocity.

VARIABILITY : of orders is controlled by heijunka at the plant,

which prevents large order fluctuations of the supplier orders. VISIBILITY : is maintained by tightly linking deliveries and lots to productionsequence, which permits dealer order changes to be accommodated by direct adjustments to part orders.

MANAGING SUPPLIERS

Less no. of suppliers Long term relationships

MANAGING SUPPLIERS
VARIETY : of components produced by suppliers is consistent with their flexibility.
Because designs of components allow efficient manufacturability by suppliers, suppliers can reliably commit to capacity. Sequence suppliers receive orders in the precise sequence of assembly. Other suppliers have orders picked up during delivery milk runs to Toyota. In short, the supplier velocity is matched to the assembly plant production rate. volumes in advance, through JIT pickups and by limiting the amount of day-to-day fluctuation in orders.

VELOCITY : of the parts flow is matched between the assembly line and suppliers.

VARIABILITY : of orders to suppliers is stabilized through communication of planned VISIBILITY : of supplier operations and of Toyota plants is encouraged bythe approach
at Toyota to discuss problems first. The attitude that it is better to inform Toyota of problems early so as to enable efficient solutions with the companys assistance encourages increased visibility. In addition, frequent deliveries from suppliers ensure that Toyota is constantly informed about those suppliers performance .

LOGISTICS
VARIETY : Parts inflow, production rate at the assembly plant, and rail
departures are synchronized to ensure heijunka across the supply chain. This process enables a steady velocity to be maintained.
efficiency in the railcar (bi-level or tri-level) and thus affects associated costs. Destination of delivery affects vehicle options and flow time and is in turn linked to parts inflow and finished goods outflow. Dealers have some limited flexibility to swap vehicle orders with other dealers orders in the pipeline. routes and the use of cross-docks. Tapping parts compensates for variability by using pipeline inventory.

VELOCITY : across vehicles affects vehicle height, which in turn affects loading

VARIABILITY : is managed by combining pickups across suppliers to create milk

VISIBILITY : is managed by combining pickups across suppliers to create

milk routes and the use of cross-docks. Tapping parts compensates for variability by using pipeline inventory.

PARTS ORDERING

PARTS ORDERING

PARTS ORDERING

PARTS ORDERING