Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock

 
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Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
Strengthening Stamping Capability for
Competitiveness in a Global Marketplace

Brian Krinock
Vice President, Production Engineering
Toyota Motor Engineering & Manufacturing North America, Inc.
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
Presentation Agenda
I.    Toyota Global Operations
II. Toyota North American Operations
III. Stamping Supply Base for Toyota in NA
IV. Competitiveness of Global Stamping
      Operations
V. Expectations of a Supplier
VI. Internal Methods for Competitiveness
VII. Example of Supply Base Improvement
VIII. Q&A
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
Toyota’s Global Operations

                                       Region                     Mfg. Companies

ƒ 65 manufacturing companies           ƒ North America                      11
                                       ƒ Latin America                       5

ƒ 27 countries and regions             ƒ Europe                              8
                                       ƒ Africa                              2

ƒ 299,394 Toyota employees worldwide   ƒ Asia (including Japan)             37
                                       ƒ Oceania                             1
                                       ƒ Middle East                         1
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
North American Manufactured Vehicles

    Venza          RAV 4         Highlander        Prius
    2008           2008             2009           2010

   12 NA Manufactured models in 2008; 14 by 2010
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
15 North American Manufacturing plants
 5 Design / Research & Development locations
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
North American Operations
Direct Employment: 43,858

Direct, Supplier and Indirect Employment: 386,300*

Direct Investment: $21.8 billion

Toyota, Lexus & Scion Dealers: 1,745

2007 Vehicle Production: 1,671,009

2007 Vehicle Sales: 2,922,821

                                       * 2005 CAR Study
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
1980-1989               1990-1999       2000-2007
State of Toyota                                                                            2,922,821 Vehicles Sold
                                                                                           2.9% increase from 2006

As our Sales continue                                                                      2 million

  to grow in North                                                                         1 million

      America…
                                                                                     14    $21.8 billion Invested
                                                                                13
                                                                           12
                                                                      11
                             No. of Plants                   9
                                                                 10
                                                                                          $ 15 b          In 2010,
                                                         8
 …our Investment                                                                                         Toyota will
                                                                                                         open its 15th
                                                                                                         NA plant in
   increases…                                    7
                                                                                          $ 10 b
                                                                                                        Blue Springs,
                                             5                                                           Mississippi
                                 3   4                                                    $5b
                         1   2

                                                                                          43,858 Team Members

   …our Jobs are                                                                          30,000

    increasing…                                                                           20,000

                                                                                          5,000

 …and our Production
 continues to grow…                                                                       1,671,009 NA Produced

                                                                                          2.2 million (2010 capacity)

                                                                                          1.5 million
                                                                                                         Projected
                                                                                          1 million
  …Suppliers are our
                                                                                                         Capacity
                                                                                                         in 2010
                                                                                          500,000
   biggest contributor
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
Suppliers in North America
Annual Buy - $30B
„   Direct Parts & Materials              „   Marketing

„   Construction, Machinery & Equipment   „   Advertising

„   Logistics                             „   Facilities Maintenance

„   R&D                                   „   Other
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
Suppliers in North America

• More than 500 suppliers
   in NA
• 700 locations
• $30+ billion in
   annual purchases
                             9
Strengthening Stamping Capability for Competitiveness in a Global Marketplace - Brian Krinock
Toyota Purchasing Principles

  „   Open Door Policy/Fair Competition

  „   Mutual Trust/Benefit &
       Long Term Relationships

  „   Contribution to Local Economy
Toyota’s Expectations of Suppliers
 1. Safety
 2. Quality
 3. Delivery & Production
 4. Cost
 5. Technical Capability
 6. Be Competitive

           Prevent “The Seven Mudas”
1. Safety
               Philosophy:
               Safety First

                                         “Safety is the starting point
                                               for everything”

                           Akio Toyoda
                                                      Sustainable
                                                 Cost   Growth

                                     Volume
                           Quality
                  Safety

 Eiji Toyoda
2. Quality
                                  Philosophy:
                         Build Quality into Process

       Sakichi Toyoda

        The loom stops
 if a broken thread is detected

                                    Toyoda G-type automatic loom

  Jidoka
3. Delivery & Production
                                  Philosophy:
                          Toyota Production System (TPS)

   Taiichi Ohno
    "what is needed,
 when it is needed, and
in the amount needed."

  Just in Time
4. Cost
                     Philosophy:
          Highest Customer Value at Lowest Cost

                                      Function
                             Value
                                        Cost
5. Technical Capability
                         Philosophy:
               Innovative, Competitive, Technology

                                       Tundra

 Prius                                 - Tailgate Lift Assist

 - Hybrid Technology
6. Be Competitive:
    Prevent “The Seven Mudas”
A.   Overproduction
B.   Excess Inventory
C.   Unnecessary Conveyance
D.   Overprocessing
E.   Waiting
F.   Unnecessary Movement
G.   Defects
A. Overproduction
B. Excess Inventory
C. Unnecessary Conveyance
T H E   S E V E N   M U D A S

D. Overprocessing
E. Waiting
F. Unnecessary Movement
G. Defects
Result = Reward
Positioning Ourselves to be Competitive

„   TPS focuses on high quality at low cost
„   Removes Muda from the system
„   Muda = non-value added activity
Toyota Stamping Supplier
 Supply Base Overview
Toyota Global Stamping Supply Base

 EUROPE

                                              N .A M ERICA
                            JA PA N

                    A SIA

                                                             S.A M ERICA

                                A USTRA LIA

          A FRICA

                                                                             : Toyota Plant
                                                                           ● : Toyota Affiliate
                                                                                Supplier(s)
                                                                           ■ : Non- Affiliate
                                                                                Supplier(s)
Toyota Stamping Supply Base Map
                                                      TMMC-1&2

                                                                                                                                                                    TMMC-1&2

                                               TMMK

NUMMI

                                                                                                                                                             TMMK

                                                                         NUMMI
                                                                                                                                                      TMMI

        TABC

                                                                                 TA BC

               TMMTX

                                                                                                                                            TMMTX

                                       NA 1990
                                                                                                                                                    NA 2000

                                                                                                                                 TMMC-1&2

                                                                                                        SIA

                                                                                                                             TMMWV

                                                                                                                      TMMK

                       NUMMI
                                                                                                 TMMI

                               TA BC

                                                                                                              TMMAL

                                                                                         TMMMS

                                       TMMBC

                                                                 TMMTX

                                                                                 NA Today
How to be a Competitive Stamping Supplier

Material:
      Usage / Blank Layout
Productivity
      SPM, Die Change Time, Downtime
Direct & Indirect Labor
      Usage & Rate
Tooling Cost
      Minimize Processes/Stations, Specification
Logistics Cost
      Distance, Packaging
Global Competitive Analysis: GSPH
              GSPH Performance by Region (Estimate)

                                  5-10% Gap
   GSPH

          JPN Best      EU Best       NA Best     CHN Best

  Labor, technology and Process are contributing factors
NA Competitive Analysis: SPM
         SPM Global v Local Suppliers: North American Production

                                       ~30% Gap
   SPM

          Global Affiliate Supplier           NA Local Supplier
                                                   (Avg)
NA Competitive Analysis: Die Change

       Die Change Time (Transfer Die in Minutes)

                              ~ 4x longer

      NA Local Supplier          Global Affiliate Supplier
            (Avg)
How does Toyota
Remain Competitive?
Toyota’s Industry Postion: Harbour data

History of Stamping Hours Per Unit (HPU)

                                              6.3

                                                     Average Die Changeover Time (Minutes)

   3.71
                                                       51.5
   3.57
                                              3.29
   2.95                                       2.98
   2.61                                       2.46
   2.40                                       2.35

                                              1.64                                              37.9

      2003     2004       2005      2006   2007

                                                       24.9                                     25.6
                                                       22.9

                                                                                                19.6

                                                       13.2
                                                                                                12.7

                                                       8.6                                      8.4
                                                                                                7.8

                                                          2003   2004     2005     2006      2007
Toyota’s Industry Postion: Harbour data
Operating Hours Per Die Change (Die Change Frequency)

   10.7

   7.5
   7.3                                       7.3
                                                        Parts Per Hour
                                             5.7
                                             5.6
                                                                                                 828

                                             2.2
   2.1                                       2.0
   1.9
                                             1.7
                                                           750
         2003   2004    2005     2006     2007             736

                                                                                                 695
                                                                                                 694

                                                           668                                   671
                                                           664
                                                                                                 659
                                                           646
                                                                                                 636

                                                             2003        2004   2005   2006   2007
Toyota Worldwide Press Operations

                                  Europe
      North America

                                                  Toyota Motor
                                                   Corporation
                                                     (TMC)
                                           Asia

                  South America

    In the
  Beginning,
  Operations
   Led from
Japan by TMC
Toyota In-House NA Press Expansion
      1980’s                       1990’s                          2000’s

        TABC                         TABC                            TABC

       NUMMI                     NUMMI + Exp.                     NUMMI + Exp.

        TMMK                      TMMK + Exp.                     TMMK + Exp.

        TMMC                      TMMC + Exp.                     TMMC + Exp.

                                     TMMI                         TMMI + Exp.

                                                                    TMMTX
                    Grow
                           th &
                                Capa                                  SIA
                                    bility
                                             Incre
                                                   a   sing         TMMC #2

                                                                 TMMMS (Future)

                                                               Connected & Aligned
                                                              Strong Communication
                                                               Friendly Competition
                          Individual Plants
Individual Plants      Limited Benchmarking
                                                                 Share Resources
                                                                  & Best Practices
Toyota Internal Competition                                                        Never Give Up

                    1988                    aising             2008
                                 Bar keeps r - - - - - - -                Gap is Smaller
                                     --- ---
                        ---------                       -------
   Productivity

                                        - - - - - - - -
                                    ---
                              - - - Gap
                            -Large

                                                                                            IMPROVEMENT
                                                                                            CONTINUOUS
                  TMC   NAMC                                 TMC   NAMC

                  Start-Up           Key Activities          Capability           Future
                                                             inreasing

                                              Bench Marking *

                                              Best Practice Application   *            Continue to
                                                                                       Strengthen
  Always find ways                            Jishuken / Yoketen   *                   Toyota Way
  to “re-think” and                           Training / Skill Improvement             Thinking
     “re-invent”
                                              Technology Advancements         *
                                              Innovative Thinking
                                              Standardization
Toyota Internal Benchmarking
 & Best Practice = Safety
                                           Example
 1. As a group (All NAM) we compare each
    NAMC to each other as well as TMC       • Safety Concern at NAMC triggered
                                            activity to bench mark each NAMC to
                                            find best practice
                                            • Each plant investigated their own
                                            current activity
 2. Identify Leader
                                            • At the all NAM meeting each
                                            NAMC presented their activity

                                            • Best Practices from each NAMC
 3. Investigate the lead plant activity     were combined to make a North
    and roll out as Best Practice to all    American wide standard that would
    other NAMC                              be used at all NAMC’s

                                                     New Standard

             Utilize each                                            New
           NAMC resources /                                          Standard
              skill for the                                          with all
             benefit of all                                          NAMC
                                                                     buy-in!
Jishuken Activity / Yokoten
1. Each NAMC sends                   2. Team focus on         3. Team uses Toyota problem solving                                   4. Roll out
member(s) to participate             issue at the NAMC        methods (TBP) develop countermeasure or                               to all NAMC
in the Jishuken Activity             as a Group               suggestions to NAMC. NAMC implements                                  (Yokoten)
at alternating NAMC’s                                         changes and documents results
            TMMC
                     TMMI
                                                               Report

                                                                                                                                    Introduce to all
TEMA

                                                                                                                                      other NAMC
                                                                                                                                       (Yokoten)
         NUMMI
                                        Alternating

  TABC                                     NAMC

                                          Common
                                         Problem or
TMMK                                       Theme
           SIA                                                 Results
                                                                                               10%
                                                                                                             Yokoten
                                               Safety                                           Up
                                                                Productivity (GSPH)
                    TMMTX                                                                                    to Other
                                                                                                              NAMC
           TMMMS                                                                                                            P
                                               Quality
                                                                                                                                     D
                                                                                                                                P
                                                                                                                                P               P
                                                                                                                                                            D
                                                                                                                            A
                       TMMC #2
                                                                                                                                    C
                                                                                                                                    C
                                                                                                                                                A
                                                                                                                                                        D
                                               Productivity                                                                                             C
                                                                                                                              Pre-
                                                                                                                        P
                                               Etc….
                                                                                                                            A Prod.
                                                                                                                                D
                                                                                                                                            P

Come together as a TEAM                                                                                                 A                           D
                                                                                                                                C
                                                                                                                                           A
                                                                                                                                                C
                                                                                      Before         After
to Solve Common Problem
                                                                                                                                                    C

           -T/M Development
       - Solving Critical Problems
Future Technology & Trends
 Die Related                                            Equipment Related
 Multiple Part Production (1 Stroke)                    Increased Focus on Machine Accuracy (key point
        •       Double Dies                                     of Die Repeatability)
        •       Baby Part
                                                        Adopt Servo Press technologies with High Speed
 Die Design Standards: Interchangeability from                  Automation for increased productivity
         Line to Line / Plant to Plant
                                                        Increase common equipment and part usage for
 Process Reductions (4 Dies to 3 Dies to 2 Dies)                 spare parts reduction and sharing
                                                                 amongst NAMC
 Increased focus on Die Repeatability                   Reduction in plant size with streamlined layout
                                                                and less inventory
 Increased use of digital development tools (FEA,
         FEM) and measurement for more                  Increased focus on reducing Die Change Time
         accurate initial die build (less                       and methods to aid as a method to
         modifications after first hit)                         achieve reduced lot sizes
 Material Changes
       •       Coatings
       •       High Strength Materials

 Balance Technology & Investment
                                           Take advantage of
                                           New Technology to
                                          improve productivity,
                                            reduce lead times
                                                 & cost
Supplier Competition

   How can you increase your abilities
        and, at the same time,
    share your capability with others
         in the same industry?

Example: Toyota Based Stamping Forum
Supplier Forum: “Co-opetition”
                        Cooperation          Co-opetition
   Competitors
                 +   (Technical Forum)   =
                                             Competition to
                                             strengthen
                                             each other...

                                             But not to
     Toyota                                  reveal trade
                                             or product
                                             secrets
Supplier Forum Example: GSPH/SPM
      What Does Competition Do?                        Changes your
                                                         Environment & Challenges
       Ex: 600 Ton Press Line
                                  Co-opetition

                                                 SPM
                                   ?
SPM

                                                                        Share

              A         B         C                          A         B         C       D

                                                        Through Competition
       Internal Benchmark Know How
                                                        -   - See Others
       -   - Why is there a Gap in SPM?
                                                        -   - Change Ceiling
       -   - What are others doing?
                                                        -   - All Benefit
       -   - What are your limitations?
                                                        -   - Keep for Knowledge, but set more
Supplier Forum Example: Die Change Time

          1200 Ton Transfer Line
                                                   Supplier A,B,C,D
                   Supplier A, B                   New Targets
                   Great Reduction
           17
                             Break Through
Minutes

                  12         By Co-opetition

                                               7
                                                           4

           A       B          Suppliers        C           D
Supplier Example:
Metalsa: Fagor Improvement Activity

                           Rear Side Rail
     Full Frame
Metalsa: Initial Condition
                Fagor 3600 GSPM

                           Struggle to Meet Targets

                Fagor 3600 Changeover
Metalsa: Kaizen Events

                 20%
 Minutes

           10%
Metalsa: Quick Fix (Small Kaizens)

  6 C/O
                                     24 C/O
 p/Week
                                     p/Week
Metalsa: Improvements on Lot Size
Metalsa: KPIs
Summary
 9 Crisis is good, Don´t create comfort zone.

 9 Kaizen without human factor, is not success.

 9 Seeing is believing.

 Crisis (Pressure)   Human Factor              Ownership

    * Create          * Team consistent         * Different KPI´s
    * It Happens      * TM involvement on       * Clarify Group leader
                        improvements              roles
                      * Friendly competition
                        between shifts
Future Challenges:
  Raw Material Increases
           Steel Spot Market- ($/Metric Ton)                                                                                                                                                                                                                                                                                         Crude Oil - ($/Barrel)
        $1,500                                                                                                                                                                                                                                                                                                             $160
        $1,300                                                                                                                                                                                                                                                                                                             $140

        $1,100                                                                                                                                                                                                                                                                                                             $120
                                                                                                                                                                                                                                                                                                                           $100
         $900
$/M T

                                                                                                                                                                                                                                                                                                                           $80
         $700
                                                                                                                                                                                                                                                                                                                           $60
         $500
                                                                                                                                                                                                                                                                                         HR                                $40
                                                                                                                                                                                                                                                                                         CR
         $300                                                                                                                                                                                                                                                                            GA                                $20
         $100                                                                                                                                                                                                                                                                                                               $0
                 Ja n -06   Feb-   M a r-06

                                      2006
                                              A p r-06   M a y-06   Ju n -06   uJ -l06   Aug-   Se p -   O c t-06   No v -   De c -   Ja n 0- 7   Feb-

                                                                                                                                                  2007
                                                                                                                                                         M a r-07   A p r-07   M a y-07   Ju n -07   Ju -l07   Au g -   Sep-   O c t-07   No v -   De c -

                                                                                                                                                                                                                                                   2008
                                                                                                                                                                                                                                                            Ja n -08   Feb-   M a r-08   A p r-08   M a y-08   uJ n 0- 8

                                                                                                                                                                                                                                                                                                                                  2006         2007           2008

                                                                                             Challenge for all stamping suppliers:
                                                                                         Make every effort to offset cost of raw materials
                                                                                           Many small items add up to large change

                 Challenge: Find your own unique ways to remain competitive
Thank You
 ICOSPA !
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