Toyota Motr Manufacture

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Toyota Motor Manufacturing, USA, Inc.

Problem Definition: Deficiency in matching with the Seat Variations requirements

Possible Causes:

There were 23 Sedan & Wagon Models, 11 exterior colors, 29 interior variations & 30 other options like a moonroof. Thus number of possible combination reached several thousands.

The challenge for the seat supplier-KFS was to match the seat with the above thousands of combinations.

There were around 5 pieces of the same seat and the challenge lied in its installation.

The Total Vehicle Order for the month was shared with the supplier – KFS just one week before the Production Schedule.

The supplier-KFS also depended on the information coming through Kanban card which triggered part production.

KFS was unable to show 100% efficiency in terms of mapping the right kind of part with the right design.

Recommendations:

Training KFS team on Kaizen concept which would help them to eliminate waste and changing something for the better. This would also help them to document and standardize the process so that ideas for improvement can be evaluated objectively.

Implementing Hybrid Manufacturing System i.e. Flow Manufacturing which is MRP/JIT combination.

Thus it would help in controlling and monitoring the scheduling of inventory of seats.

We can implement the lot sizing technique – Lot-for-Lot [L4L]:

a. Sets planned orders to exactly match the net requirements. b. Produce exactly what is needed each week with none carried over into future periods. c. Minimize carrying/holding costs.
d. L4L causes high set up costs because there is a variety of items which are worked on each week.
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