Toyota Production System

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CURRENT GLOBAL TOYOTA WAY AND THE BUSINESS IN ASIA PACIFIC REGION

Page 1

North America

EEC
Asia
Europe

NAFTA

APEC AFTA+3 AFTA INDONESIA
Indonesia

APEC
South America

GCC
Africa

COMESA

MERCUSOR

Australia

From Indonesia for Global Market

Page 2

Current Situation of Global Toyota.
Multi – Polarization of Multi – Sourcing Companies Complexity of Supply Route.

Portland Bristol

Long Beach
Long Beach

Jacksonville
Hongkong Singaore

Jeddah

Kuwait

Melbourne

Expansion of Logistics

Page 3

THE CHANGE IN THE BUSINESS PERFORMANCE ENVIRONMENT
3S factors :  SCALE :
From national to global  The forces of democracy, trade deregulation or free trade area, and technology changed - Increased competition

 SPEED

: From steady to fast and flexibility
 Responsiveness and agility

- Reduced timeline for all activities

STANDARD : From local to world class standard
 Measurement is by globally and be world’s best

- Everyone must have a world class value - preposition

Page 4

THE TOYOTA WAY
The Toyota Way is the common managerial values and corporate culture that supported by two main pillars. They are “Continuous Improvement” and “Respect for People” We never satisfied with where we are and always improve our business by putting forth our best ideas and efforts.

We respect people, and believe the success of our business is created by individual efforts and good team work

Page 5

The “4P” Model of Toyota Way
PROBLEM SOLVING
(Continuous Improvement & Learning)

Toyota’s Term

The Toyota Way Respect for People

Respect - Team Work
-

PEOPLE & PARTNERS
(Respect, challenge and grow them)

Continuous Improvement

PROCESS
(Eliminate waste)

Challenge - Kaizen - Genchi Genbutsu
-

PHILOSOPHY
(Long-Term

Thinking)

Page 6

Toyota in Global
Global Automaker Mapping
MMC
Fiat GMDAT

Honda
Suzuki Jaguar Opel L.Rover SAAB

Mazda
Volvo

General Motor

Daihatsu Isuzu Hino

Ford
Roll Royce

Daimler (M-Benz)
Mitsubishi Chrysler Fuso

TOYOTA

Lexus

BMW
Mini

Renault
Nissan Diesel

Skoda Seat

Subaru

Hyundai KIA

Nissan

VW
Audi

Peugeot
Page 7

Toyota in ASEAN
New Vehicles Market
(thousands)

 

ASEAN countries population 2008 = 504 mio Automotive market = 2,112,368 units VIETNAM

597.4 1393.7
Population: 86.2 million GDP/capita: US$ 1,052

1
THAILAND
Population : 66.5 Million GDP/capita : US$ 4,116

74.1
1

33.4 121.8
1

54.4

PHILIPPINES
Population : 90.5 million GDP/capita : US$ 1,843

529.4 530.8
MALAYSIA
Population : 27.9 million GDP/capita : US$ 7,969

2
77.0
1

596.2

600.8

INDONESIA
Population : 228.5 million GDP/capita : US$ 2,236

1

SINGAPORE
Population : 4.8 million GDP/capita : US$ 38,046

Vehicle sales ( Source : Retail Sales 2008 data )
Data x 1,000 Production ( Source : OICA 2008 data )

Page 8

TPS : LEAN SUPPLY CHAIN (= Lean OPERATIONS)

TOYOTA Production System
Toyota’s Core Competence Managerial Philosophy Origin of Toyotaism Implemented not only at production sites but also in other sectors Permeation among all levels of employees in a way easy to understand  The Toyota Precepts  The Toyota Way : Established in 1935 : Established in 2001 Page 9

 Guiding Principles: Established in 1992

Cost Reduction is Absolute Requirement for Increased Profit (1) Selling price = Cost + Profit (2) Profit
(1) Cost + Profit

= Selling Price - Costs

Cost Reduction
(2) Cost Reduction
Profit

Profit

Selling Price

Selling Price

Cost

Cost

Methods for increasing profit

Raise the selling price Reduce the costs

Demand > Supply Demand < Supply

Customers determine the selling price
Page 10

Cost Reduction is Absolute Requirement for Increased Profit

Productivity is not just Labor productivity
(with smaller man power)

Labor Productivity
(with smaller equipment/machine...
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