Toyota profile

1. Reduction of WIP inventory in Axle assembly line by using small lot high frequency supply chain
Department of Industrial Engineering & Management
COMPANY PROFILE
HISTORY OF TOYOTA
In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom. Toyota was
started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of
automobiles under the direction of the founder's son, Kiichiro Toyoda. Its first vehicles were
the A1 passenger car and the G1 in 1935. The Toyota Motor Co. was established as an
independent company in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the
world’s leading manufacturing of weaving machinery. The Toyoda Automatic Loom Works
was then headed by Japan’s “King of Investors” Sakichi Toyoda. The patent rights to one of
his machines had been sold to Platt Brothers (UK) and provided the seed-money for the
development test-building of Toyota’s first automobiles.
In the spring of 1950, a young Japanese engineer named Eiji Toyoda visited Ford’s
vast Rouge plant in Detroit. Both Japan and the Toyota Motor Company, which his family
had founded in 1937, were in crisis. After thirteen years of effort Toyota had been able to
produce 2,685 automobiles. Mass production of vehicles began on 3rd November, 1938 in
Koromo Plant. By the year 1957 Toyota had started exporting cars to the U.S.A. and in 1958
it set up its first overseas plant in Brazil.
In 1965 TMC received the Deming award for Excellent Quality Product. In 1966
Toyota launched the “Corolla”- the most successful car of Toyota.
August 1997 marked the 60th anniversary of TMC. The fledgling company founded
by Kikchiro Toyoda, Sakichi’s son, has since blossomed into the leader that it is today. In
1950 the company experienced its one and only strike. Labor and management emerged from
this stoppage firmly committed to the principles of mutual trust and dependence, and that
corporate philosophy still the growth today.
Production systems were improved in the late 1950’s, culminating in the
establishment of Toyota’s Production system. It became known as TPS in 1970 but was
established much earlier by Taiichi Ohno. Based on the principles of Jidokda, Just-In-Time
and Kaizen, the system is a major factor in the reduction of inventories and defects in plants
of Toyota and its suppliers, and it underpins all our operations across the world.

2. Reduction of WIP inventory in Axle assembly line by using small lot high frequency supply chain
Department of Industrial Engineering & Management
Toyota launched its first small car (SA model) in1947. Production of vehicles outside
Japan began in1959 at a small plant in Brazil, and continued with a growing network of
overseas plants. Toyota believes in localizing its operations to provide customers with the
products they need where they need them; this philosophy builds mutually beneficial long-
term relationships with local suppliers and helps the company fulfill its commitments to local
labor.
Over and above manufacturing, Toyota also has a global network of design and
‘Research and Development’ facilities, embracing the three major car markets of Japan,
North America and Europe.
In every community in which the company operates. Toyota strives to be a
responsible corporate citizen; close relationships with people and organizations in the local
community are essentials contributors to mutual prosperity. Across the world Toyota
participates enthusiastically in community activities ranging from the sponsorship of
educational and cultural programs to international exchange and research.
Toyota is currently the worlds 2nd biggest automobile company. It has 51 production
facilities in 26 countries across the world. The Global Toyota Sales for the year 2005 was
around 8.12 million units. Global Toyota target for the year 2008 is to produce 9 million units
and achieve 15% Market share by Year 2010.
Realizing the potential of the Indian market Toyota entered into a joint venture (JV)
with the Kirloskar Group, India resulting in the formation of Toyota Kirloskar Motor (TKM)
Pvt. Limited on 6th October 1997.
OVERVIEW
Toyota Motor Corporation is one of the world’s leading automakers, offering a full
range of models, from mini vehicles to large trucks. Global sales of its Toyota and Lexus
brands, combined with those of Daihatsu and Hino, totaled 8.42 million in CY 2011. Besides
its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota has 51
manufacturing companies in 26 countries/locations, which produce Lexus and Toyota brand
vehicles and companies as of march 2011. Toyota employs 317734 people worldwide (on a
consolidated basis), and markets vehicles in more than 140 countries. Automotive business,
including sales finance, accounts for more than 90% of the company’s total sales.

3. Reduction of WIP inventory in Axle assembly line by using small lot high frequency supply chain
Department of Industrial Engineering & Management
TOYOTA IN INDIA
TOYOTA KIRLOSKAR AUTO PARTS
More than a Century old, Kirloskar
Group is a household name in India. In the
pursuit of developing indigenous
technology and industry, the affiliation with
TMC to form TKM (Toyota Kirloskar
Motor) in 1997 marked a significant
beginning. Continuing the thrust to work
for the growth of Indian industry, the
establishment of TKAP in 2002 marked
another milestone in our history.
Toyota has a phenomenal technical
expertise in auto parts and TKAP today
demonstrates this global quality both in its
facilities and products.
TKAP, as an established manufacturer of transmission and engines, is now well set to
become one of India's leading auto component companies. Toyota Kirloskar one level up
Toyota’s call to put India on its Tier 1 map is more than just an act of faith. It could herald a
new era for Indian manufacturing. Rajeev Dubey Bidadi – 48km from Bangalore, just off
Mysore highway – has been known as the location of the “Quality factory” since Toyota
Kirloskar motors began manufacturing the sporty utility vehicle (SUV) in this barren land in
1999. Bidadi has little else like Toyota, Toyota’s supplier and supplier’s over 1100 acres of
rock and red soil.
On 3rd august, Toyota Kirloskar Auto Parts (TKAP), at 90:10 joint ventures between
Toyota and Kirloskar, rolled out R-150 type manual transmissions (gear boxes) from the
Bidadi plant. TKAP is exporting its entire production 1.68 lakh units to be installed in
Toyota’s Innovative multi utility vehicles (van, SUV’s and small and small trucks on a
common platform) begin produced in nine countries (including Thailand, Philippines, South
Africa and some Latin American countries).
TKAP project is the most significant Tier 1 project ever outsourced to India – although
companies like Hyundai and Maruthi are already exporting fully built cars from their Indian
plants.

4. Reduction of WIP inventory in Axle assembly line by using small lot high frequency supply chain
Department of Industrial Engineering & Management
Worldwide, auto component supplies have evolved into tier wise manufacturing
because of the need for super specialization in different areas of automobile manufacturing.
Of these, tier 1, the closest to the vehicle maker, has emerged as the most crucial link in the
supply chain because it is responsible for supplying the larger module like engine,
transmission, wheel assemblies, dashboard assemblies and steering systems directly to auto
companies. Importantly, the tier 1 supplier need to have the capability to design, develop and
manufacture the entire module on its own because automakers are beginning to evolve them
as early as the concept stage of vehicle department. Tier 2 manufacturers are those who
supply to tier 1 manufacturers and those on tier 3 supply to tier 2.
It’s important to note that Toyota Kirloskar auto parts are 90% owned by and will
supply to Toyota subsidiaries only. Also Toyota has developed the product to be made in
India. America and General Motors affiliate Delphi outsources components such as wiring
harnesses and forgings from India. But through Toyota Kirloskar auto parts, for the 1st time,
India will supply a tier 1 module in early life cycle of a vehicle. Given that a platform
typically has a lifecycle of 5-7 years, a model change near the end of it could extend the
component life cycle to much as 10-15 years. Thus component maker who gets involved in
the early lifecycle are able to extract get better results than those who starts in the late life
cycle. Falling margins on the late life cycle vehicles squeeze the margins of the component
makers too.
It is with this backdrop that the Toyota Kirloskar auto part has come. As the 1st
consignment is tested in Indonesia, TKAP vice chairman Vikram Kirloskar is keeping his
fingers crossed. He hopes his 7 years struggle to bring Toyota into India will put the country
firmly on Toyota’s global manufacturing map. TKAP is the auto parts hub of Toyota in India,
supporting vehicle plants in India and at Thailand, Argentina, Brazil & Indonesia. India as
one of the fast growing economies in Asia, offers a big potential, with its vast human talent
and established supply chain.
TKAP is committed to achieve global quality at competitive cost, utilizing the Indian
supply base optimally. With the expanding Indian Automobile market, TKAP is poised to
play a significant role as a key auto parts manufacturer.

5. Reduction of WIP inventory in Axle assembly line by using small lot high frequency supply chain
Department of Industrial Engineering & Management
What it means for Indian manufacturing?
TKAP is making the most critical tier 1 auto products ever outsourced for
manufacturing to India. It breaks the mould of Indian suppliers getting late life cycles
products, where the margins are lower
TKAP is sole supplier to Toyota for international pickup trucks and multi-purpose
vehicles to be produced in nine countries.
TKAP has got the R-150 manual transmission project at the concept stage of vehicle
development. That means it can ride the growth in volumes and earn higher returns.
In the 1st quarter of 2011, Toyota sold 6 .78 million vehicles worldwide. At this rate it
will end the year with a million vehicles more than the 12.5 million it sold last year- almost
equal to what India sells a year.
Toyota Kirloskar Auto Parts
Unit Product Volume Customer
3 unit
Propellar Shaft
Rear Axle 45000 sets/annum
Toyota Kirloskar
motor (TKM)
Transmission
(100% EOU)
Manual T/M R150
type
160000 units per
annum
Argentina,
Indonesia,
Malaysia,
South Africa,
Thailand,
Venzuela
E/G Ethios engine 108 K
Domestic
100%(TKM)

6. Reduction of WIP inventory in Axle assembly line by using small lot high frequency supply chain
Department of Industrial Engineering & Management
TOYOTA KIRLOSKAR AUTO PARTS MISSION:
“Enriching the life of all stake holders with safe and echo friendly products”
TOYOTA KIRLOSKAR AUTO PARTS VISION:
“Become no.1 unit manufacturer in Asia specific quality, cost and customer satisfaction”
AWARDS AND ACHIEVEMENTS:
 Quality Circle forum of India awarded CCQC 2012.
 Asia-Pacific production Quality Award 2013.
 TKAP Honored with Best Export Award 2013 - 14 for Ramanagara District, awarded
by Sri. Siddaramaiah, Honorable Chief Minister of Karnataka.
 Asia – Pacific No 1 for Environment in 2014.
 Team TKAP won “Gold Medal on National level QCC Competition organized by
“National Convention on Quality Concepts” at Pune on December 2014 and 2015
also.