Toyota Production System (Bussiness Case Studies & Plan)

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Toyota Production System (Bussiness Case Studies & Plan) for a research subject in Supply Chain Management.

Text of Toyota Production System (Bussiness Case Studies & Plan)

  • Topic Outline
    • Introducing Toyota Australia
    • &
    • Her Supply Chain Management
    • By Cong Xue
  • History of Toyota Australia
    • Toyota Motor Corporation Australia (TMCA) is a subsidiary of Toyota Motor Corporation (TMC).
    • Toyota Australias origins go back to 1958.
    • The commercial vehicle business became Thesis Toyota in 1971
    • In 1988, Toyotas local operations were unified to form Toyota Motor Corporation Australia
    • Toyota Australia currently build two modelsthe Camry and Avalon series.
  • Toyota Australia Current Business
    • Toyota Australia is the second largest vehicle manufacturer in Australia.
    • Toyota Australia has exported over 60,000 cars to over 20 different commercial locations worldwide in 2003.
    • Toyota is a people oriented organization that sees the development of its staff as a foundation stone for future business prosperity.
    • Toyota has long been recognized as one of the most efficient manufacturers in the world
  • Business Context
    • The business context of Toyota Australia is actually link to
    • the operating environment that consists of a number of
    • factors.
      • The global industry operating environment;
      • Automotive investment trends;
      • Policy environment;
      • International market access;
      • Australian industry operating environment; and
      • Government policy environment.
  • Toyota Australias supply network
    • The basic of Toyota Australias supply network:
      • Supplier Association
      • Effect of knowledge sharing network on supply chain coordination
      • Upstream and downstream entities
  • Suppliers Association
    • The key to Toyotas success would appear to be their highly effective supplier integration process that over the past 50 years has enabled the excellence of their internal hoshin kanri strategic management, cross functional process based management and Toyota Production System to be shared directly with their direct suppliers.
  • Effect of knowledge sharing network
    • The effects of knowledge sharing network on the coordination of supply chain and product customization forms the basis of Toyota Production System (TPS).
    • The aim is to have members identify themselves as part of an interdependent economic network.
  • The Upstream problems
    • After a series of research, few critical factors were identified:
      • Bundled outsourcing
      • Logistic challenge
      • Import of vehicle components
  • Bundled Outsourcing
    • One of the important characteristics of Toyota Japan suppliers system in terms of the inter-firm tasking portioning is that the outsourcing ratio is high not only in manufacturing but also in product development.
    • There is a difference in terms assembly process and the level of hierarchy in supplier.
    • Without bundled Outsourcing, it has first changed the internal process of the supply chain and most importantly, the number of first tier suppliers decreases and many of the suppliers ascended to the higher tiers and the hierarchy of the parts markers.
  • Logistic Challenge
    • One advantage of localization is closer relationships facilitate collaborative problem solving.
    • Longer supply lines required faster order processing, and this was done electronically.
    • Essentially, electronic kanban cards were identical in function to the physical kanban cards used by Toyota in Japan.
  • Import of Vehicle Components
    • In the case of Toyota Australia, only 79 per cent of components are local content, with the balance relying on imports.
    • This has been highlighted as one of the critical factors in terms of supply chain due to the fact the it affects the supply chain coordination as well as the upstream entities.
  • Upstream Entities
    • At current, Toyota Australia has an extensive local supplier base from its 98 component suppliers and 300 general suppliers.
    • In general, suppliers may be broadly classified into three categories:
      • Parts suppliers (Key component/ low assets specificity component)
      • Raw materials suppliers
      • Suppliers of equipment and tools
  • Downstream Entities
    • In general, Toyota Australia has the following downstream entities:
      • Warehouse facilities in all major states
      • Distributors in all major states
      • Dealer network of over 285 outlets across Australia
  • Internal entities
    • To build a car, the internal entities of the supply chain which includes all of the in-house processes used in transforming the inputs from the suppliers are as follows:
      • Production of Engines
      • (Once completed, the engines head straight for the final assembly)
      • Pressing of steel panels and parts
      • Welding of car shells
      • Painting of car shells
      • Final Assembly
  • Topic Outline
    • Toyotas Australia
    • &
    • Her Current IT Setup
    • By Simon Chew
  • Topic Outline
    • IT Solution for
    • Toyota Motor Corporation
    • (TMC)
  • IT Solution for TMC
    • Enterprise Resource Planning System (ERP)
    • E-Marketplace
    • TradeMatrix system
  • IT Solution for TMC
    • Enterprise Resource Planning System (ERP)
  • Enterprise Resource Planning System Why ERP?
  • Enterprise Resource Planning System
    • One of the largest automotive companies in the world
    • Total of 51 overseas manufacturing companies in 26 countries / locations
    • Overseas network consisting of more than 160 importers / distributors and numerous dealers.
  • Enterprise Resource Planning System
    • SAP Automotive ERP Suit
    • Main means of information flow between Toyota and its counterparts worldwide.
    • Tighter collaboration links
    • With SAP, gain:
      • Outstanding strategic,
      • Operational,
      • Financial,
      • Marketing positions
  • IT Solution for TMC
    • E-Marketplace
  • TMC E-Marketplace
    • iStarXchange
    • Initiative with i2 Technologies Inc.
    • Allow subscripted members able to view a single catalogue to:
      • view information on parts
      • checking the prices and availability
      • conduct transaction online
      • forecasting supply and demand
      • delivery cycle
    • Improved forecasting
    • Enhancing the planning
    • Enhance deployment and replenishment of the inventory
  • IT Solution for TMC
    • TradeMatrix system
  • TradeMatrix system
    • Initiative with i2 Technologies Inc
    • Automates with equipment manufacturer and suppliers in terms of :
      • sites inventory management
      • warehousing
      • Logistic and shipping
  • Topic Outline
    • IT Solution for
    • Toyota Motor Corporation Australia
    • (TMCA)
  • IT Solution for TMCA
    • Main SAP Automotive suit ERP system
    • BEA Web-logic Integration 8.1 (Integrated within the SAP automotive suit)
    • Electronic Kanban-Card System