Toyota Motor

Manufacturing
U.S.A Inc.
GROUP 10

Kritika Ghatia (PGP/23/333)

Pranav Gupta (PGP/23/347)
Suman Mishra (PGP/23/363)
Shishir Singh (PGP/23/358)
Rakesh Yadav (PGP/23/352)
Establishing TPS in US setting
Vision: “Better cars for more people”
Scenario Then:
• Second World War in Japan-> people could not afford car
even at cost
• Japan’s labor productivity was one-eight of USA
• Toyota had to cut cost and provide flawless quality hence
new source of economies

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Cost Reduction Human Infrastructure
1. Eliminate waste 1. Slogan: “Good Thinking, Good Products”
2. Two principles: 2. Senior management coaching and training
1. Just In Time: Produce only how much programs for employees
was needed and when needed 1. Stick to facts
2. Jidoka: Make production issues instantly 2. Root Cause Analysis using 5 Why’s
evident and stop production

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 Timeline of TPS
1985 1986 1987 41988

Announcement of $800 Construction starts & KFS Pilot production at assembly

million Kentucky Plant supplier of seats
Japan trip for group and team 1989
Japan trip of managers leaders
Announcement of $300 Volume Production
• Initiated hiring and training
program(100’s of people)
million power train plant at assembly
Axle production start

1992 1991 1990

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Announcement of $90 million 1992 Camry introduction 2nd shift start at assembly Japan trip for 2nd shift group and
power plant expansion team leaders
Ramp up of Camry wagons 1992 Camry volume Japan trip to preview 1992 4-cylinder engine production start
production Camry

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 Operations (TPS)
ASSEMBLY
• Production Line
• Tools: Jidoka, Kaizen and
Andon
PRODUCTION CONTROL
• To feed necessary parts
into operations
• Coordinate with TMC,
local suppliers and sales
people
• Tools: Heijunka and
Kanban
QUALITY CONTROL
• Provide instant feedback
to direct operations
• Prevent problems in 1st
place
• Tools : Jidoka and Andon
PURCHASE
• Manage cost over long
haul
• Estimation of cost based
on data from suppliers
• Tools : Kaizen
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Q2. What is the impact of Jidoka on the overall production of TMM?  Is it economical?
Introduction: Jidoka is one of the two guiding concepts adopted by the Toyota Production System (TPS) to minimize
costs by reducing waste. Jidoka's goal is to make any manufacturing issue automatically self-evident and immediately
stop production to avoid defects to move to next assembly line. It aims to increase efficiency in the manufacturing sector
and opposes any diversion from adding value as a waste.
Impact: Jidoka aimed to aid immediate problem detection and facilitate visual control which eliminate waste of
overproduction and helps in keeping the inventory in control, reducing handling cost, system tracking cost and rework
cost.
At initiation itself the Jidoka system allowed TMM line staff to recognize the issues like seat and flag the cars for quality
control repairs accordingly which helped team leaders to raised the issues regarding seat to at the management level.
Is it economical?
If Jidoka is applied properly, it allows the company to recognize the issue early, avoiding defects from passing. There are
fewer defects in this quality management and therapeutic environments to contend with. Thus if correctly applied, the
Jidoka method tends to guarantee the operating economy.
But the seat issues of TMM was exception and it was not economical to put Jidoka concept there even issues were found
at fitting station itself but they still keep the line running because of following reasons:
1. The final assembly people already knew about the problem,
2. It was possible to building the car with seat assemblies,
3. Stopping the line was too expensive as this whole line contains 769 team members and one fourth team leaders and
hindering their work was waste of time and money.
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Q2. What is the Real Problem Here?

Supplier Side: The real issue is the incoordination between the seat supplier and the TMM plant and also the quality
issues which are arising in the rear seat installation
Deviation from the TPS philosophy: The TMC plant has deviated from the TPS philosophy of identifying and
correcting the issue at the source and to not allow it to reach the final FG, but under the current setting they are
prioritizing production and line functioning over the jidoka and andon principles
New Products: Close to 36 seat variations had been added after the new models were launched which was a huge
increase over exiting 3 styles and 4 variations

Analysis of the issue

Data Points:
 Exhibit 10 shows a disproportionate number of andon pulls for the rear seat installation stations, signalling some issue
with either the installation of the seat or the manufacturing
 Exhibit 8 shows majority of the issues being attributed to KFS with total defects per day touching 20
 There is mismatch in the andon pulls at the rear seat installation stations and the number of defects recorded per day
 Exhibit 7 shows that the major defects were involving missing parts and wrinkling defects

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Plan of Action
Understanding and Identifying the Problem:
 As Doug Friesen my first plan of action would be to identify the root of the issue first at my own line i.e the TMM line, spend
time at the rear seat installation stations and then go back to the unloading point of the seats to identify any issues with the
TMM factory
 Then after identifying any issues with the current process, and correcting it, I would move to the KFS plant to look at how they
are coping with the increased variations in the seats and what are the issues that they are facing with the manufacturing process
 Connect them with the seat suppliers in Japan on how they managed to cope up with the variation of the rear seat design
 Understand why they are not able to deliver even after they are communicated the requirements:
 Issues with the information delivery (Illegible cards)
 Overloaded manufacturing line
 Use 5 WHYs approach

Solution Approach:
 Mapping the current value stream including the seat manufacturers value stream and how the information flows in the entire
value chain
 Look at possible inclusion of supermarket to accommodate for the increased production variation of the seats if the changeover
for KFS is becoming an issue because of the Heijunka practice followed at TMM plant
 Contact the team in Japan and discuss with them if they faced any similar issues in the beginning, if yes how did they resolve it
 Flow of goods and information needs to be studied in the TMM and TPS to get a comparative view of what’s going wrong
 An additional QC system needs to be introduced, when units from suppliers are received so as to reduce material defects
abnormalities
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THANK
YOU