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 Vice President, Production Engineering Toyota Motor Engineering & Manufacturing North America, Inc.
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
Toyota’s Global Operations Region Mfg. Companies 65 manufacturing companies North America 11 Latin America 5 27 countries and regions Europe 8 Africa 2 299,394 Toyota employees worldwide Asia (including Japan) 37 Oceania 1 Middle East 1
North American Manufactured Vehicles Venza RAV 4 Highlander Prius 2008 2008 2009 2010 12 NA Manufactured models in 2008; 14 by 2010
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
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
Suppliers in North America Annual Buy - $30B Direct Parts & Materials Marketing Construction, Machinery & Equipment Advertising Logistics Facilities Maintenance R&D Other
Suppliers in North America • More than 500 suppliers in NA • 700 locations • $30+ billion in annual purchases 9
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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