TOYOTA MOTORS PRESENTED TO:

Dr.V.K Gupta

MANUFACTURING PRESENTED BY:

CORPORATION Sanjay Mandal (BM-018282)

Sanyam Goel (BM-018283)
Satyam Singh (BM-018284)
Saurabh Chaudhary (BM-018285)
Saurabh Tripathi (BM-018286)
 INTRODUCTION
 Toyota Motor Manufacturing Kentucky, Inc. (TMMK) is an automobile manufacturing
factory in Georgetown Kentucky, USA.

 It is part of Toyota Motor Engineering & Manufacturing North America (TEMA), owned
by Toyota Motor Corporation of Japan.

 Originally known as Toyota Motor Manufacturing USA, TMMK was established in 1986.

 Issue settled in 1985 when Toyota motor corporation (TMC) unveiled its plan to open
an $800 million green-field plant in Kentucky.
 In July 1988, Toyota Motor Manufacturing USA (TMM) began volume production
on a 1300 acre site in Georgetown near Lexington.

 Plant had an annual capacity of 2,00,000 Toyota Camry Sedans, which would
replace the bulk of Japanese imports of the same model.

 The new Camry joined the ranks of midsize family sedans, which constituted one-
third of the total American car market and returned an average 17% pretax profit
margin1 on a sticker price averaging $18,500.

 In March 1992, TMM started producing wagon versions of the new Camry
exclusively within Toyota’s worldwide plant network.
 STRATEGIES ADOPTED FOR TMMC
PLANT CAPACITY EXPANSION
Capacity expansion strategy can be used as a pre emptive strategy to lock up a major share
of the market and to discourage competitors from expanding and potential rivals from
entering the industry.
It tends to succeed only under the following conditions:
 The expansion of capacity is large relative to market size.
 There are substantial economies of scale and learning curve advantages.
 The firm’s strategy looks credible in terms of availability of resources, technological
capabilities, past track record, etc.
 The firm announces its plans before competitors develop even a reasonable degree of
commitment to the process.
 While construction was underway at Georgetown in early 1986, TMM initiated a
hiring and training program.

 Their first encounter with TPS occurred during a month-long trip to Tsutsumi.

 Every TMM manager was also paired with a coordinator from TMC, who remained
in Kentucky for a few years.

 In early 1992, Georgetown’s huge complex employed over 4,000 people,

representing $150 million in annual payroll. In the plant’s backyard, construction
was underway to double TMM’s capacity.
PLANT LAYOUT AT TMMC
 The ideas about factory work that the Toyota Motor Corporation was promoting
around horse country here at first seemed too simple to be significant, the
formulations of people who had only just noticed that thoroughbreds thrive on
bluegrass.

 Toyota is a company that is constantly evolving, aiming to reduce waste. Over the
last few years, did many changes to the Toyota assembly lines to improve efficiency.

 Below is the current (2014) layout of the Motomachi plant. Compared to the
previous layout from 1994, this one contains many more individual segments divided
by small buffer stocks (green boxes).
 ASSEMBLY LINE
 Assembly operations were performed along 353stationsonaconveyorline, over five
miles in length and consisting of several connected line segments
 Every station on the assembly line embodied jidoka and kaizen tools.
 A standardized work chart was posted adjacent to each workstation on the line,
showing the cycle time of that station, the sequence of work tasks, and the timing to
perform them within one cycle.
 Assembly and part handling required 769 team members, who were paid an average
of $17 an hour (not including benefits), plus 50% premium for overtime. A team
usually had four members and one team leader, who received a premium of 5% to
8%.
HOW DOES TMMC HELP IN INCREASING DEMAND
FOR IT’S PRODUCT ?
 TOYOTA PRODUCTION SYSTEM (TPS)
 The TPS is a framework for conserving resources by eliminating waste

TPS is grounded on two main conceptual pillars:

1. Just-in-time – Making only what is needed, only when it is needed, and

only in the amount that is needed

2. Jidoka – (Autonomation) Automation with a human touch

 The main objectives of the TPS

Out overburden (muri)

Inconsistency (mura)

Eliminate waste (muda)

 THERE ARE EIGHT KINDS OF MUDA THAT ARE
ADDRESSED IN THE TPS
 Waste of overproduction (largest waste)

 Waste of time on hand (waiting)

 Waste of transportation

 Waste of processing itself

 Waste of stock at hand

 Waste of movement

 Waste of making defective products

 Waste of underutilized workers

THANK YOU