The Toyota Way in the Era of Indutry 4.0. Stefano Cortiglioni. Toyota Academy Business Development Director TPS Senior Specialist South Europe

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1 The Toyota Way in the Era of Indutry 4.0 Stefano Cortiglioni Toyota Academy Business Development Director TPS Senior Specialist South Europe

2 Who we are Toyota Industries Corporation Total turnover 18.7 Billion Total employees 52,600 4 business sectors Automotive 50% Materials Handling 45% Textiles 3% Other 2% * Figures for FY2017 and 1 Eur = 119JPY

3 Who we are Europe at a glance Factory Headquarters 102,000 units sold in FY17 330,000 trucks on service agreement 3.5 million service assignments per year 2.2 billion total net sales in FY17 10,300 employees across Europe 4,900 trained service technicians Active in over 30 countries in Europe

4 TMHE Supply SIMAI Mjölby, (TMHM Sweden) Ancenis, (TMHM France) 4 Factories ~3500 employees 2 Main R&D Centre ~300 Design Engineers Bologna, (TMHM Italy) Ferrara, Italy (LTE)

5 Toyota Material Handling Training & Consulting Toyota Lean Academy Training & Consulting Division Toyota Material Handling has established a new division dedicated to Training & Consulting. TPS Senior Expertise, with over 10 years of managerial experience on Toyota plants, are members of the new team European Customer Centers are located close to the TMHE factories Ancenis Bologna Mjölby Hannover European Customer Centers & Regional Hubs

6 What is our journey: How we made it there Toyota history In the beginning First Toyota car produced The Toyota Production System (TPS) is born

7 4S+1 Standardization Visual Management Quality Management System Lean Logistic Product Development TPM Supply Chain Management Toyota Pillars Vision Customer Satisfaction ZERO defects 100% value added One piece flow, on demand Tools Foundation People Engagement Hoshin Kanri Values Challenge Teamwork Kaizen Respect Genchi Genbutsu

8 Toyota Production System The TPS is not only a method of production but it is cultural mindset that involve all company employees and departments. It is also called: Thinking People System. Two Japanese words represent this meaning: Monozukuri: Capability to make good things Hitozukuri: Capability to produce good things through people 物 Mono (Things) 者 Mono (People) 造り Zukuri (Production) 人 Hito (People)

9 Toyota Logistic 4.0 video

10 Impact of the New Technology Customers 2020 Shorter Lead Time Wider product offers Customizations Companies 2020 Lean Flexible (Supply chain included) Close to the market Logistic 2020 Flexible Fragmented (Pallet Vs Single Component) Efficient

11 Toyota Production System TMHMI Experience Production in batches Just in Time From push to Pull The wide range of products, unstable market and the number of different configurations requested by customers make difficult to predict models and volume (Forecast accuracy) Move from Make to stock to Make to order was the way to reduce Finished Good Inventory and unsold trucks Mixed Production, pulled by customer orders High flexible production lines has been arranged to produce all the product range in one piece flow

12 Toyota Production System TMHMI Experience Just in Time The most famous pillar of TPS which the payoff is: «What you need, When you need, Where you need The just in time approach is driven by logistic transformation following the 4 key rules: Accuracy: Provide only the components related to single order. Punctuality: Delivery when we need Location: Provide closer the workstation Tack Time: Delivery according to the Takt Time

13 Toyota Production System TMHMI Experience Starting point (2005) Components stock close to the line 1 Step (2009) KIT & Supermarket 2 Step (2012) Box & Shutter Busy space 1 45 sq m 2 3 Busy space PM Busy space 45 sq m PM 1 45 sq m 2 3 PM PM PM Busy space PM 1 45 sq m 2 3 PM Busy space 45 sq m PM

14 Toyota Production System TMHMI Experience Visual kanban Board and pacemaker Kaizen Example Kanban assigned by colours Visual Pacemaker to assign the cycle time

15 Toyota Production System TMHMI Experience Frames stock layout Junjo (Sequence) The production sequence is submitted to the supply chain covering 7 days rolling Supplier produce the components related to sequence and deliver, on daily base, to TMHMI the daily quantities Picking Incoming

16 Toyota Production System TMHMI Experience Material and information flow for Toyota Plant - Line 1 FAX MRP 1/week Monday 8:00 SHEETS IN ORDER "JUNJO" LINE ON INFORMATION Forecast SYSTEM TIEE MRP 1/week Parts Small Parts Receving Area Super Market A B C D A B C D Ware house ting Prcess IN KITTING LIST PRODUCTION PLANING DEPARTMENT production plan AGV ORDER HANDLING DEPARTMENT 2/Day Daily OTHER DISTRIBUTERS Order-P every Parts Wednesday Direct Line side from Supplier Frame 1 2 Supplyer 1/day CW 1/week 23 Supplyer 24 Out Side "PAINT LINE" OHG Sub Line "ASSEMBLY LINE" Big Parts Receving Area Painting L/O #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 #15 #16 #17 #18 #19 #20 #21 #22 #23 #24 #25 #26 OHG 1/day 1 Supplyer 2 turn Fr Rr cable c/v tilt ohg oil mast c/w seat sas b/t ckpi 3 table 4 5 Fork 1/week Supplyer Battery 1/week Supplyer Mast 1/day Supplyer In Tent #27 #28 #29 #30 #31 #32 #33 Maha Fork& SAS Driving Mast Final SHIPPING Backrest input Test Test inspection

17 Toyota Production System TMHMI Experience Units Delivered N Inventory Turnover FY2014 FY2015 FY2016 FY2017 E Quality

18 Lean as a Foundation for the digitalization Mass Production Lean Production Digitalization Standard product Push (Produced by forecast) Lot production Low people engagement No Target Sharing Top Down organization Process Knowhow ManPower One Piece Flow (Pull on Demand) Customized Product People Engagement Waste Reduction Kaizen Culture Visualization PDCA TPM Process KnowHow MindPower Digitalization For: Lean Process Consolidate for awareness KPI s and analyses Safety improvement Visualization Optimization Process KnowHow?

19 Thank You Having no problem is the biggest problem of all. - Taiichi Ohno