AJAY PRASAD J.

(067) BHUSHAN NADONI (078) DWIP SENGUPTA (086) JAYANTH SUBRAMANIAN (089) PAVAN ABHISHEK (101) RAHUL RAMESH (105) SHILADITYA SENGUPTA (114) SHUSHANTA GUHA (117)

$800 mn greenfield plan of Toyota Motor Company opened in Kentucky in 1985 Production began in July 1988 in Geirorgetown Annual capacity: 200,000 Camry sedans In 1992, expected production to increase to 240,000 Midsize family sedan market constitutes one-third of American car market Camry returns 17% pre-tax profit on sticker price averaging $18,500

Aim: Better cars for more people Cost reduction by eliminating waste Two guiding principles:

JIT: Produce only what was needed, Only how much was needed and only when it was needed Jidoka: Make any production problems self-evident and stop producing whenever problems were detected

Human Infrastructure:
Good Thinking, Good Products: Coaching by senior management and internal training Five Why Approach: Get to the root of the problem Kaizen: Change for the better

5 mile long conveyor line 353 stations Line cycle time: 57 seconds 769 team members paid an average of $17 an hour plus 50% for overtime 4 team member and one team lead per team Regular shift duration: 525 minutes

Standardized work chart adjacent to each work station showing cycle time and work tasks Colored tape to mark out area of the floor to specify where everything in sight belonged 4S: Sift, Sort, Sweep, Spic-and-Span Hence, any deviations stood out Green line and red line to mark beginning and end of each station. Yellow line indicates 70% completion Behind schedule while behind yellow line or any issues, andon chord pulled. If Team lead corrects problem immediately, chord pulled again, else line segment stops at red line Pulling of chord: 12 times a shift. Production stops: Once a shift

To feed necessary parts into TMM operations so that right cars are delivered to sales company Variations in models: 11 exterior colors, 29 interior variations, 30 other options. Sedan and wagon models Forecast received from TMC Heijunka: Distribute volumes and specifications evenly over a span of production Kanban: A signboard used for each part which included the part code number, batch size, delivery address and other information

Instant feedback to direct operations during assembly

Limited clinic space for defected cars. If 8 cars in clinic area, assembly line shut down

Preventing problems from occuring Purchasing: Emphasis on Low cost of suppliers rather than low price offered by them

Soft part prone to damage Safety item, had to meet rigorous standards Most expensive of all purchased parts $740, fabric accounting for half the cost Sole supplier: Kentucky Framed Seat (KFS) Requirements for each model were sent using a transmitter on the cars emerging from the paint line which sent information to printers at TMM and KFS. This enabled seats to arrive in the right sequence (sequential pull system) KFS located close to TMM TMC kaizen experts helped KFS install visual controls, limit work-in-process inventory and master quick changeovers

Mismatch or defect of seat discovered when seat is to be assembled For defective seats
normal assembling is followed after reporting the defect From assembly, the car goes to the Clinic If replacement seats are needed, car moved to overflow parking and replacement order given to KFS Car waits for KFS special delivery

Product variations increasing tremendously. Run ratio down from 95% to 85% .

Shortfall of 45 cars per shift. Overtime Could be fixed online by team leaders in 30 seconds (retapping) Seat defects are common on the shop floor and the workers are used to them.

Cross-threading

Hook
Sometimes broke off Modifying the hook would cause KFS $50000

Exceptions made to the TPS