Presentation for the logistics class. Szkola Glowna Handlowa w Warszawie.

1. TOYOTA MOTOR
CORPORATION
International Logistics
Szkoła Główna Handlowa 2012

2.  Introduction
 Business Model
 Key Technologies
 Logistics
 Supply Chain
 Summary

3.  First car Toyota AA was created in 1936
 Founded by Kiichiro Toyoda in 1937
 Toyota Motor Sales Co., Ltd. is established in 1950
 Toyota Motor Manufacturing, USA, Inc. begins
production in 1988
 Includes Toyota , Lexus, Daihatsu and Hino Motors

4. Quick facts
• In 2010 Toyota employed over 300,000
people worldwide
• The largest automotive manufacturer
• 11th largest company by revenue
• 200 million vehicles manufactured
• Toyota spends 1$ million every hour for
R&D
• Toyota does business in more than 170
countries globally
• Toyota Motor Corporation ranked 3
on Forbes magazine’s Global 2000

5. Business
model
The “Toyota Way” incorporates the Toyota Production System (TPS).
The main objectives of the TPS are to design out overburden (muri) and
inconsistency (mura), and to eliminate waste (muda). The basic principles are:
-Just In Time (JIT)
The phrase originated at Toyota and originally described how material should be
processed and moved in order to arrive "Just In Time" for the next operation.
Objectivel: produce whatever necessary, whenever necessary, the necessary
quantity
-Lean manufacturing (Lean)
The concept of preserving value with less work. This production practice
considers the expenditure of resources for any goal other than the creation of
value for the end customer to be wasteful, and thus a target for elimination.

6. The Toyota
Production System
7 kinds of Muda (waste) Respect - understand each other and build
 over production (largest waste) mutual trust.
 time on hand (waiting)
 transportation Teamwork - stimulate personal growth and
 processing itself improve team performance.
 stock at hand
 movement
 making defective products Poka yoke - processes designed to prevent
human errors, baka yoke or "idiot-proofing"
Principles of continuous improvement
Kaizen - we improve our business operations continuously, always driving for
innovation and evolution.
Genchi Genbutsu - go to the source to find the facts to make correct decisions,
"go and see"

7. “4P” model
of the Toyota Way
•Continual organizational Learning through Kaizen
• Go see for yourself to thoroughly Understand the Situation
Problem
(Genchi Genbutsu )
Solving • Make decisions slowly by Consensus, thoroughly considering all options;
(Continuous Implement Rapidly
Improvement & Learning)
• Grow Leaders who live the Philosophy
People & Partners • Respect, develop, and challenge your People and Teams
(Respect, Challenge • Respect, challenge and help your Suppliers
& Grow Them)
•Create process “flow” to surface problems
• Use pull systems to avoid over production
• Level out the workload (Heijunka)
Process • Stop when there is a quality problem (Jidoka)
(Eliminate Waste) • Standardize tasks for continuous improvement
• Use Visual Control so no problems are hidden
• Use only reliable, thoroughly tested technology.
•Base management decisions on a Long-term
Philosophy philosophy, even at the expense of short-term
(Long-Term Thinking) financial goals

8. Inbound
Logistics
Toyota establishes a partnership with a limited number of 3PLs
Toyota’s inbound logistics operation is described as a logistics network.
Entities: Suppliers – Cross-docks – Toyota’s plants
Milk routes
 The route plan it is done once a month.
 It is necessary to know the location of the entities and the number of
packages/containers.
 Road routes and distances between all potential destinations are
considered.

9. Outbound
Logistics
Also known as product distribution, because the function of outbound
logistics is to distribute the finished products from the OEM plants to the
retailers
Transport to
Vehicles at Final quality dealers by
marshaling yard assurance railroads and
trucks
Accessories Transport to
installation dealers directly
by trucks

10. Kanban
Kanban is a scheduling system for lean and JIT production. It is not an
inventory control system; it is a scheduling system that helps determine
what to produce, when to produce it, and how much to produce.
Kanban rules
1.Do not send defective products to the subsequent process
2.The subsequent process comes to withdraw only what is needed
3.Produce only the exact quantity withdrawn by the subsequent process
4.Level the production
5.Kanban is a means to fine tuning
6.Stabilize and rationalize the process.

11. Production
facilities

12. Production and
sales
Region Production Sales
(x 1000) (x 1000)
North America 1206,1 1806,9
Latin America 195,1 333,5
Europe 450,3 801,9
Africa 150,8 211,9
Asia 2062,8 1998,2
Oceania 93,7 215,9
Middle East / 527,5
Overseas total 4168,8 5895,9
Japan 2760 1201
Worldwide total 6928,8 7096,9
Source : http://www.toyota-global.com/company/profile/figures/vehicle_production_sales_and_exports_by_region.html

13. Supply system
OEM Tier one  Tier two Tier three supplier
Tier one suppliers incorporated into the production development program
Sole-Sourcing
„Lean” Production
Source: http://searchmanufacturingerp.
techtarget.com/definition/lean-production
http://www.economist.com/node/15576506

14. SCM pros
and cons
Pros:
 Long-term and benefitial relationship between suppliers and
Toyota
 Flexibility
 “Just in time” approach
 Adjustment to customers’ tastes and changing demand
Cons:
 Weak parts of the supply chain under great strain
 Dependency on suppliers outside Japan

15. Recalls
Recalls of approximately 5.2 million vehicles for the pedal entrapment/floor mat
problem, and an additional 2.3 million vehicles for the accelerator pedal
problem.
The vehicles affected in Europe are:
 Toyota Aygo (automatic models only)
 Toyota iQ
 Toyota Yaris
 Toyota Auris
 Toyota Corolla
 Toyota Verso
 Toyota Avensis
 Toyota RAV4

16. Production system
summary