Toyota Development System for TOYOTA KIRLOSKAR MOTOR EXCLUSIVE LIMITED CONTENTS: 1 two 3 Introduction to Toyota Profile of Toyota Kirloskar electric motor. Toyota Production System practices in TKM. 4 Introduction to TKM Strategies. • • Just On time Kaizen- (Continuous Improvement in logistics) your five Future “Supply Chain” Course. TOYOTA MOTOR UNIT CORPORATION • Established in 1937 in Japan • 160 Countries 5400 Dealers. • dua puluh enam Countries 46 Plants • Sales of 15. you trillion Yen in Drive 2002 • 247, 1000 employees worldwide. • Make of all types of Vehicles including Luxurious Small Cars. Automakers position worldwide depending on vehicle sales 9000 eight thousand

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No . of Units Sold (1=1000 Units) 2003 First quarter Consequence Toyota – No . 2 7000 6000 5000 4,000 3000 2000 1000 zero GM Kia Toyota VW Daimler Chrysler PSA Honda Nissan Renault Fiat Business Toyota is definitely 3rd Largest Auto Developer in the World TKM is the fourteenth almost the final automobile maker to enter in Indian vehicle industry TOYOTA KIRLOSKAR ELECTRIC MOTOR PRIVATE LIMITED Establishment Area Start of Production Production Model Development Capacity Expense No . of Employees:::: sixth October 97 Bidadi close to Bangalore in Karnataka Condition Dec 1999 Multi Purpose Vehicle Traveler car 60, 000 Units/year US$ 168 Million (Phase I) 2300

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PRODUCTION / SALES 50000 40000 Quantity 30000 20000 10000 0 Corolla Qualis 21086 28509 2000 2001 2002 1383 28989 Entered 1Lakh cars in September 03 the year 2003 9000 34000 COMPLETE VIEW OF TKM PLANT Under one building facilities by TKM Press Shop Weld Shop Color Shop Set up Shop Inspection Area ISO 14001 INSIDE THE FIRST YEAR TPS IN TOYOTA KIRLOSKAR MOTORS SETUP OF TPS IN TKM TAKT UP (7. 5′ 7′) FEINGEF�HL UP (9. 25′ SENSIBILIT�T DOWN COMMENCE OF SENSIBILIT�T 8′) (7′ TAKT UP 8′) UP (10′ TAKT UP 8′) i SENSIBILIT�T UP six. 5′) (12′ 9. 25′) (8′ 3000START OF SECOND t (9. 25′ 8′) TAKT DOWN s CHANGE TAKT STRAIGHT DOWN (8′ 10′) 2500 / (8′ being unfaithful. 5) FEINGEF�HL DOWN FEINGEF�HL DOWN Meters (9. 25′(8′ 12′) being unfaithful. 25′) o 3500 n U AUTOMOBILE QUALITY CRAZE 2000 n t truck h Merely In Time 75. 00% 68. 00% Standardised Work GLOBAL TOYOTA LEVEL REFORM LEVEL IMPROVEMENT TKM 0 AS ON PARTICULAR DATE MAINTENANCE TIME M-I-R COMMENCE OF AMOUNT PRODUCTION a thousand 500 0 Dec- Jan99 00 Feb00 Mar- A p 3rd there�s r May- Jun00 00 00 00 Jul- Aug- Sep00 00 00 Oct- Nov- Dec- Jan00 00 00 01 Feb01 Mar- A p l May- Jun01 01 01 01 Jul- Aug- Sep01 01 01 Oct- Nov- Dec01 01 01 Heijunka This is the normal yield rate of all the suppliers I. elizabeth. STTI, Aesthetic Control Board Built in Top quality GLOBAL PRODUCE RATIO COMPARABILITY

This data excludes 15. 474 kg/veh of material preserved by sending offals to supplierpartslikeNTTF, STANZEN QUALIS SIMPLE YEILD RATE 66. 00% 64. 00% 62. 00% TPS 133W133W 797T 2 1 some 0 N 0 4 351T 143N 4 several 9 a few T 0 T 0 5 231T 0W 325N 316T 0W 3 Capital t 0 To 7 6 4 being unfaithful 415T4 0 0 T 0 395T 0W two 186N 465N 4 153T 391T being unfaithful 0 four T 6 1 a few 0 Big t 5 0 T six 8 652T 651T 6th 7 0 1 Big t N 3 0 525T 828T 191N0 0 a couple of T T 9 133W971T 6 you 5 N 0 zero 0 9 8 5 7 541T 8 To T 1 0 D 1 To 6 your five 2 0 4 your five 0 To 0 zero 8 being unfaithful T Capital t 5 0 8 477T 8 D 8 being unfaithful T zero T several 185T six 277N 781T 0 Big t 8 0 T 70 3. 42%06 00 00 00 00 00 00 00 00 00 00 00 00 00 20 00 00 00 00 00 00 00 00 00 1 . 6%00 00 00 00 00 00 00 00 00 00 00 00 00 05 00 00 00 00 00 00 00 00 00 1 ) 48% 00 00 00 00 0%. 5% 0% 0% 5% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%…………………… 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 8% 0% 0% 0% 0% 0% 0% 0% 0% 0%………………….. 0% 0% 0% 0%…. 61% 61%90 67% 69% 64%80 64% 62%80 68. 00%69%70 66% 62% 62% 68%60 65%67 61% 00%68% 65%50 63% 67%40 68% 68% 68%40 66% 62% 62%46 61% 61% 67%39 65% 61% 00%68% 68%20 66% 65% 65%20 60. 70%62. 00%65% 86%57% 40 forty 62% 80 80 80 68% 85 80 61%……… 79 69% 75 77 70 forty five 65% 62 62% sixty 66. 40 50 64% 50 31 69% forty 40 forty 67% 40 40 45 61% forty five 40 35 65% twenty 30 63. 20 twenty 66% 20 27 20 65%………………………………. 10 60. 80.. MODELS 60. 00% 58. 00% M OE ETYIDSNU0 I P VMNI E A AG 3rd there�s r NL O 1 DTCLETDUNLEF FUL AAOLCEDRGI OO AJE I N- F Queen S Obstacle Team Function Genchi Genbutsu Jidoka Kaizen OVERVIEW OF LOGISTIC OPERATIONS TKM’S Logistics strategy • Just in time source • Small lot high frequency delivery • Palletised cargo • Standardised packaging TKM SUPPLY CHAIN CBU LOGISTIC

Steel Maker Steel Centre CUSTOMER Materials Parts W A SELLER Material Supplier Parts Dealer Information Parts Information L T Insp. Order Information Order Nourish Back TMC Overseas Plants CKD Parts Information L W Big t A Insp Press shop Weld shop Paint store Assembly store Inspection TKM LOGISTICS REVIEW Delhi Transit Dock (2600 Kms) North Area nineteen Suppliers TMC JAPAN STM THAILAND Pune Transit Ipod dock (900KMS) KUOZUI TAIWAN Western world Area 13 suppliers SINGAPORE TKM Bangalore Plant Southern Area 28 Suppliers Chennai Transit Boat dock (370 KMS) 18 Suppliers INDONESIA (TRANSHIPMENT) TAP ISRAEL TAM

LOCAL SUPPLIERS CIRCULATION Delhi Get across Dock North Area nineteen Suppliers Pune Cross Pier West Region 13 Suppliers Kanban suppliers- 40 (74% parts) Bangalore Plant To the south Area twenty-eight Suppliers Chennai Cross Boat dock 18 Suppliers JUST- IN-TIME JUST IN TIME MAKING MATERIAL AVAILABLE TO SUBSEQUENT PROCESS • WHAT IS REQUIRED • IN THE NEXT NEEDED The proper part At the right time • IN JUST THE AMOUNT NEEDED. ONLY IN TIME Maintained Procurement Methods for local parts • Slated ordering for far of suppliers with mix dock. • Kanban based ordering to get nearby suppliers without cross dock • Jumbiki placing your order

In-house Strategies systems • Welding • Assembly (Chorukyu system) (Sequential supply system) Logistic Program Milk work system Regular System TKM System SUPPLIER-A SUPPLIER-A SUPPLIER-B TKM SUPPLIER-B TKM SUPPLIER-C SUPPLIER-C LOW FREQUENCY BIG LOT HIGH INVENTORY HIGHER FREQUENCY TPS TINY LOT LOW INVENTORY Get across dock procedure for Milk run system S1 S1 Sub Way 1 one particular S2 Subwoofer Route three or more Cross Ipod dock 3 S2 S3 S4 S3 S1 2 S4 S2 S3 Sub Way 2 Mix dock operation for Milk run program Delhi Get across Dock Key Route Pune Cross Pier Main Way Main Way TKM Chennai Cross Dock Optimum Course Planning 122 oute CS011 CS012 JG CS013 CS021 CS022 CC011 RM RM RM region CHEN CHEN CHEN CHEN CHEN CHEN CHEN CHEN CHEN CHEN W W B(JG) I actually BT 3rd there�s r A They would A And supplier day trip Cyc cmt kg way cmt 12-15. 744 0. 131 1 . 500 19. 500 9. 608 almost 8. 079 52. 722 zero. 800 zero. 100 0. 100 truck spec cmt kg type cmt kilogram % 5535 1-2 CS01 37 8976 HCV 32 9000 115% 45 1770 1627 516 1-1 CS02 17. 688 1768 LCV 24 4000 74% 1251 6571 1-1 CS03 52. 722 6571 LDV fifty five 6800 96% 200 0. 800 2 hundred. 0 20 0. 95 20. zero 20 zero. 100 20. 0 Standard Truck Timetable Logistics on fixed period / varying qty basis ROUTE NUMBER TRUCK TYPE Place Dist 29. April 29.

Apr 6km Sup-A 1km Sup-B 28km Sup-C 35km Period 7: 40 9: 00 0. 15hrs 29. Apr 9: 12-15 29. Interest 10: 15 1 . 00hrs 0. 10hrs 29. Monthly interest 10: twenty-five 29. April 10: 55 0. 30hrs 0. 40hrs 29. Apr 11: thirty five 29. Interest 12: 35 1 . 00hrs 1 . 30hrs T/T CS01 HCV some 5 six 7 eight 9 10 11 doze 13 14 15 Mix Dock Higher frequency Delivery N Delhi Western: 1 times a day Farrenheit Chennai, South India: 4x a day F Bangalore: some 16 occasions a day TKM Supplier A Supplier G Supplier B Supplier C LOGISTIC CONTROL IMAGE TKM Volume Calculations Receiving Prepare TRANSYSTEM Partnership between Mitsui corp. (Japan) TKM LOGISTIC PROVIDER TCI (India) Central Operation Control

Long-Route Suppliers Cross-Dock TKM Short-Route Suppliers TKM Truck Status Control Detect En-route Problems = Never prevent the line Farrenheit Procedure Long-Route: Driving-Members phone from predefined points Local-Route: Controlled simply by Radio-Receiver about 60km F Visual Control (Status-Board) Exceptional Design Fleet Side Reloading Method Farrenheit Wing type truck N Sliding door type Farreneheit Swing door type Very long Deck Slipping Door HCV Sliding Door LCV Moving Door HCV Gull-Wing LCV Gull-Wing: 18 (50cmt): 15 (32cmt): 5 (24cmt): your five (32cmt): 3 (24cmt) TKM Inventory Status 9 8 7 six -Supplier Delivery Quality improvement Stock in Days 5 3 a couple of 1 0 Conventional Program SVP ( Dec ‘ 99 ) Daily introduction 1 Day (16 hrs) Safety Stock one day (16 Hours ) -Milkrun pick up of parts. Transhipment of parts to Primary truck Pick up truck status control. Daily arrival of parts Frequency enhance through Blend Logistics with TKM Suppliers. Lot Size reduction Trick docking (Delhi Suppliers) Daily arrival 4 Hrs (0. 25 days) TKM Current ( Y 2003 ) TMC TKM Future Safety Stock 6 Hrs (0. 3 days) ( Max 2 Hours ) (Y 2004 –Oct ) Inventory of far off supplier with Cross dock operations – Delhi Pune JUST ON TIME KANBAN PROGRAM KANBAN PROCEDURE OVERVIEW

TKML 11 doze SUPPLIER KBN 222 EXAMINE SHEET APL 1-2-2 KBN NO . QTY 111 2 222 1 333 some XXX Sumado a GRN IN SYS KBN 222 PUR A/C PAYABLE 1 1 1 one particular 1 SUPPLIER LINE ASPECT 10 LINESIDE 1 10 1 KBN 111 two KBN KBN 222 222 KANBAN POST CHECK SHEET APL 1-2-2 KBN NUMBER QTY 111 2 222 1 333 4 XXX Y on the lookout for KBN 222 KANBAN SORTING ROOM APL STTI TGK DNKI NTTF 8 several TRUCK1 TRUCK2 TRUCK3 NEWLY ARRIVING KANBAN TIME LOC1LOC2LOC3LOC4 5 EMPTY PACKAGE 5 CHEC K SHEE T APL 1-2-2 K 7 six 9 COMMUNITY PARTS KANBAN SAMPLE DISTRIBUTOR INFORMATION: TG KIRLOSKAR TKM KEY CODE: 1234567890 T004-A PROCESS CODE: ASSEMBLY PART DETAILS: BASEBALL GLOVE COMPARTMENT AREA CODE: T2R-2

QTY/BOX 10 PACKING CODE: 55581- 0B010- 00 PB10123 516 SEQ NO 1 DOCK 01 PARTS READY FOR DESPATCH AT SUPPLIER SIDE (BANGALORE PROVIDER CASE WORKING WITHOUT CROSS DOCK) RELOADING / UNLOADING USING SHELL LIFT PRODUCT LABELS FACING EXTERIOR PARTS PALLETISED Parts stacking at LAPTOP OR COMPUTER Zone looking forward to in-house strategies: •Parts happen to be stored by PC Area at predefined locations Collection wise or perhaps process sensible. TKM Inventory Status on the lookout for 8 six 6 Stock in Days and nights 5 four 3 a couple of 1 0 Conventional System Kanban Program -1~ sixteen delivery / day Pick up truck status control by wi-fi – Time control Security Stock Avg 6 Hours (0. several days) Protection Stock Avg 4 Hours periods (0. 5 days ) Frequency boost with Mix logistics of TKM Suppliers Avg two Hrs TKM Current ( Y 2003 ) TMC Inventory of Bangalore dealer ( Simply no Cross dock operations) SIMPLY IN TIME JUMBIKI SYSTEM ( Sequential Procurement ) JUST IN TIME Jumbiki System • System for total removal of Inventory. • Program to supply Parts directly from supplier to Manufacturing plant according to sequence of production. • Suitable for bulky Parts with an increase of variants given by nearby distributor e. g- Seats, Door Trims, Carpets and rugs (Araco) CENTRAL CONTROL AREA (CCR) JUMBIKI SYSTEM Collection In Depending on Production Progressing Assembly

MANUFACTURING PLANT Information to CCR Fax to Provider Receiving and Supply to Series Preparation for Supplier Transportation to TKM Pre defined Time Range based on tact time JUMBIKI SYSTEM REGULAR SYSTEM Unit A Model M Model C Assembly Line JUMBIKI Model A Model B Version C Manufacturing plant For Version A Pertaining to Model M For Unit 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 A3 A3 B3 B3 B3 C3 C3 C3 A3 B3 Stock of each established Seats received from distributor in sequence of Production Program JUMBIKI PARTS RECEIVED JUMBIKI SEAT AT LINE ASPECT JUST WITH TIME IN-HOUSE LOGISTICS JUST WITH TIME

INHOUSE STRATEGIES (Chorukyu System) WELDING STORE CONVENTION PROGRAM TKM PROGRAM Manufacturing Manufacturing TPS A1 A5 A2 A6 A3 A7 A4 A8 A1 A5 A2 A6 A3 A7 A4 A8 INHOUSE LOGISTICS (SMALL LOT SUPPLY) INHOUSE LOGISTICS – ASSEMBLAGE SHOP SEQUENTIAL SUPPLY PROGRAM INHOUSE STRATEGIES – ASSEMBLAGE SHOP CONTINUOUS SUPPLY SYSTEM SUPER VERSATILE ASSEMBLY LINE TKM IS DIFFICULT NEW IDEA OF SUPER ADAPTABLE LINE THAT IS CERTAINLY MIXED CREATION OF MPV (frame model) AND TRAVELER CAR (monocock model) ABOUT SINGLE PRODUCTION LINE, BY QUICK LAUNCHING OF SUBSEQUENT MODEL FOR THE EXISTING PRODUCTION LINE. KAIZEN (CONTINUOUS IMPROVEMENT)

Kaizen based upon practice of producing Shooter system to maintain perfect FIFO Just before After •FIFO not followed •Mikara certainly not established •Unsafe movement of F/L •FIFO achieved •Mikara established • F/L movement standardized Kaizen based on practice of manufacturing Pallet, Dolly, Stream rack to lower handling Just before After •Double handling of Parts •Generates waiting time •Fatigue while parts picking •Direct flow of parts •zero waiting time •Workability superior •Space lowered (210 Sq . mt) Kaizen based on practice of manufacturing Put together Logistics Kaizen based on practice of manufacturing Collapsible Returnable packing

The space saved by this sort of packing is utilized to transport assistance parts to dealers on the return journey Kaizen depending on practice of producing Kaizen in packing areas 1 Plastic-type material Caps of hose versatile eliminated a couple of Achieved 00% returnable the labels FUTURE DIRECTION E Kanban SERVICE ASSISTANCE PROVIDE PRESENT R Ur Supplier procedures SUPPLIER S1 S2 S3 S4 S5 S8 S9 CROSS MIX DOCK PIER S1 0 S1 you S1 2 Download Kanban data TKM in-house operations TKM P In-house Bar Coded Kanban e Kanban information to Suppliers/ Combination Dock Kanban Room Store Cards Put cards Shop Parts Get across Dock operations CROSS BOAT DOCK S1 S2 S 3 S twelve S4 S5

W T A COMPUTER Z To N Electronic S one particular S eight S a couple of S being unfaithful S three or more S 1 0 S 4 S you 1 S i9000 5 S i9000 1 2 S8 S9 S1 one particular S1 two Download Kanban data Acquire Material 1st Step Merged Logistics Combined Logistics Idea Increase rate of recurrence Reduce lot size Purpose: 1) Talk about logistics between TKM Provider. 2) Lessen lot, maximize delivery regularity and finally decrease inventory. 3) Reduce vehicles cost. 4) Mutual creation and benefit between TKM supplier. Case in point Mixed Logistics Image TKM TKAP Mixed Logistics Final word We all live in an age of constant change ‘Todays perfection is tomorrows mediocrity’ We need to realise improve THANK YOU FOR YOUR ATTENTION

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