Best Practices of Lean Enterprise

Transcription

1 Best Practices of Lean Enterprise LEAN ENTERPRISE : A KEY STRATEGY TO BUSINESS AND INDUSTRY COMPETITIVENESS MADE DANA TANGKAS Director TOYOTA MOTOR MANUFACTURING INDONESIA Chairman of Indonesia Industrial Engineering Association IECOM 2014 Bali, 8 th January 2014 Page 1

2 OVERVIEW 1. WORLD CLASS INDUSTRY AND BUSINESS CHALLENGES 2. LEAN ENTERPRISE : - VALUE, SYSTEM & LEADERSHIP (TOYOTA WAY, TPS, LEADERS) 3. IMPLEMENTATION AND BEST PRACTICES OF LEAN ENTERPRISE IN TOYOTA COMPANY Page 2

3 1. WORLD CLASS INDUSTRY & BUSINESS CHALLENGES EEC North America Asia NAFTA APEC Europe GCC APEC AFTA+3 Africa South America COMESA AFTA Indonesia INDONESIA MERCUSOR Australia From Indonesia for Global Market Page 3

4 Current Situation of Global Toyota < World Class Enterprise : No. of Manufacturing companies & Distributors > North America 11 Europe 6 China 13 Middle East 5 Central & South America 4 Asia 9 Africa 2 Oceania 1 51 manufacturing companies in 26 countries 170 importers / distributors in 140 countries Page 4

5 Current Situation of Global Toyota. Multi Polarization of Multi Sourcing Companies Complexity of Supply Route. Portland Bristol Long Beach Jacksonville Long Beach Jeddah Kuwait Hongkong Singaore Melbourne Expansion of Logistics, Enterprise, Industry and Business Transaction Page 5

6 3S factors : THE CHANGE IN THE BUSINESS PERFORMANCE ENVIRONMENT SCALE : From national to global The forces of democracy, trade deregulation or free trade area, and technology changed - Increased competition SPEED : From steady to fast and flexibility Responsiveness and agility - Reduced timeline for all activities STANDARD : From local to world class standard Measurement is by globally and be world s best - Everyone must have a world class value - preposition Page 6

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8 World Economic Power will change in 2030 Optimism that the world economic power will shift from West to East increasingly widespread Triggers: large increase of markets in developing countries, rapid industrialization, the supply of cheap labor, urbanization and rising middle-class society, as well as high economic growth Forecast 1. United States 1. China 2. China 2. United States 3. Japan 3. India 4. Germany 4. Brazil 5. France 5. Indonesia Estimated by Standard Chartered, 2010 Page 8

9 COMPETITION ASPETCS COMPETITIVE ADVANTAGE = Value Cost (v) (c) v - Product quality meet with Customer Requirement (need & wants) - Competitive price/cost - On Time Delivery -After Sales Service, -Safety,Prod y,env, HR, etc. c - Cost Reduction - Cost Saving - Tight Budget - VA/VE, etc Page 9

10 The World Competitiveness Report : COMPETITIVE COMPETITIVE WORLD ASSETS/Resources X PROCESSES = COMPETITIVENESS - Infrastructure - Quality - Market share - Finance - Speed - Profit - Technology - Customization - Growth - People - Service - Duration Reference of key drivers competitiveness in some of ASEAN countries : -Thai : Kitchen of the world, tourism, trade & automotive center. -Singapore : Services industry & trade, tourism. -Malaysia : Agricultural, automotive, services & trade, tourism. Page 10

11 2. LEAN ENTERPRISE : VALUE, SYSTEM & LEADERSHIP (TOYOTA WAY, TPS, LEADERS) The Toyota Way 2001 and Toyota Institute. I urge every Toyota Team Member all over the world to take Professional and personal responsibility for Advancing the understanding and Acceptance of the Toyota Way. Fujio Cho, Former President, 2001 Common Managerial Values and Business Methods Page 11

12 The 4P Model of Toyota Way Toyota s Term PROBLEM SOLVING (Continuous Improvement & Learning) PEOPLE & PARTNERS (Respect, challenge and grow them) PROCESS (Eliminate waste) The Toyota Way Respect for People - Respect - Team Work Continuous Improvement - Challenge - Kaizen - Genchi Genbutsu PHILOSOPHY (Long-Term Thinking) Page 12

13 TPS : LEAN MANUFACTURING (= Lean OPERATIONS) Management CONCEPT & Views Supporting TPS Corporate Objectives Develop business while keeping harmony with the international communities (through supply of automobiles in the case of TOYOTA) To Fulfill the social mission Offer people more civilized and affluent life Activate communities through corporate activities Promise employees stable basis for life To this end, it is essential for the company to survive by securing profits Page 13

14 Cost Reduction is Absolute Requirement for Increased Profit )1( Selling price = Cost + Profit (2) Profit = Selling Price - Costs Cost Reduction )1 (Cost + Profit )2 (Cost Reduction Profit Selling Price Profit Selling Price Cost Cost Methods for increasing profit Raise the selling price Demand > Supply Reduce the costs Demand < Supply Customers determine the selling price Page 14

15 Cost Dependent on Production Method Component of COST Cost change depending on the production flow/method, even with the same design, same equipment, and the same material Energy Other Raw material purchase Labor Expense Part purchase Process Flow Cost in Common between companies Cost caused by difference in production method Process Flow Page 15

16 Summary of TOYOTA Production System Realization embodying Customer First discipline Timely J.I.T Providing customers with well made products at reasonable price in a timely manner Elimination of waste Muda (Non-value Added ) Mura (Uneverness) Muri (Overburden) Taking back the investigation promptly in the limited capital resource Well-made product at reasonable cost Jidoka Page 16

17 3. IMPLEMENTATION OF LEAN ENTERPRISE IN TOYOTA-INDONESIA Manufacturing Base & Domestic Market Indonesia Population = Million Jakarta Population = + 13 Million TMMIN - Employees = 5400 person 5 Main Dealers A-2000 ( 80 % ) NRM ( 6,5 % ) HK(5%) AAM ( 3 % ) H A ( 3,5 % ) Component Supplier = 69 suppliers TERITORY OF TOYOTA DEALER (under TAM as Distributor) : PHILIPINE Aceh MALAYSIA 1. A NEW RATNA MOTOR 3. HADJI KALLA 4. AGUNG AUTOMALL 5. HASRAT ABADI BRUNEI MALAYSIA SINGAPORE SUMATRA KALIMANTAN PAPUA SULAWESI MALUKU JAWA Manufacturing Base In Jakarta & Karawang BALI NUSA TENGGARA AUSTRALIA Page 17

18 (CBU, Engine, CKD, Component, Dies, Jig) Venezuela GCC Pakistan India Japan Taiwan Thailand Vietnam Philippines Malaysia Brunei SPI Brazil PNG East Timor Argentina South Africa Australia CKD ( ) Malaysia, Philippine, Vietnam, Taiwan, South Africa, ( Argentina ) CBU ( ) Thailand, East Timor, PNG, Brunei, SPI, ( GCC ) Engine Malaysia, Philippine, Vietnam, Taiwan, Japan Component S. Africa, India, Pakistan, Malaysia, Thailand, Vietnam, Taiwan, Philippine, Venezuela, Brazil, Australia Dies India, Pakistan, Taiwan Jig India, Pakistan, Malaysia, Vietnam, Philippine, Taiwan, Japan, Venezuela, Brazil, Australia Page 18

19 (JABOTABEK REGION) 12 Suppliers m3/day 5 45 Km to Sunter Km to Karawang 5 Suppliers m3/day Km to Sunter Km to Karawang 14 Suppliers 207 m3/day Km to Sunter Km to Karawang 9 Suppliers 70 m3/day Km to Sunter 4 22 Km to Karawang 13 Suppliers m3/day Km to Sunter Km to Karawang 5 Suppliers 38.1 m3/day Km to Sunter Km to Karawang Page 19

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21 Business Activity : Lead Lime for a Company Business/ Product Plan Design Simultaneous Engineering Investment Procure equipment & Tools Production Plan Production Distribution Collect money Toyota Production System Sales The key in our business is how to collect money quickly, to increase cash flow for the company. Page 21

22 Flow Parts Flow Production Information kanban Flow signal kanban Flow part withdrawal kanban Production Planning Yearly Production Planning Monthly Production Planning Daily Production Planning Sequential Planning Heijunka Information Daily Order System Daily Order System No 3 No2 No1 Press Parts a b Body Body Prod. Start Starting work Production Sequential table Body Prod. Finish Painting Painting Finish Final Assembly Line Off Domestic Overseas Dealers Welding Forging Machine Process assembly Casting Part Maker Page 22

23 LOGISTIC OPTIMATION Short L/T High Freq. Delivery Cost increase... How goes together?? Direct delivery Milk run 1 Milk run 2 With keeping cost Sup Sup Sup 1 del/day ( 1.0 day ) 1 del/day Plant 2 del/day ( 1.5 day ) Plant Sup Sup 4 del/day ( 3.0 day ) Plant ( 1.0 day ) Sup Sup Sup TOTAL L/T = 3.0 day TOTAL L/T = 2.5 day (O) TOTAL L/T = 3.5 day (X) Page 23

24 PART ORDER, PRODUCTION AND LOGISTIC SYSTEM Parts procurement L/T (Timeline) [Flow image] (2)Order receiving Supplier (1)Order Assembler (3)Preparation & Supply (4)Transportation (5)Yard arrival (6)Unload/ Rec. area (7)Line side (Parts Usage) [Timeline image] Order Order receive Supplier L/T Shipping Yard arrival External logistics L/T Unload Line side Internal logistics L/T L/T of External Log. Page 24

25 supplementary Sample e-kanban Document in TMMIN Page 25

26 e-kanban Image VLT Release <D - 4> Next Order SCRAP Reflection ORDER Veh. Flow = Parts Flow Weld Paint Monitor Scrap For adjustment order Supplier Assembly X D <Del Time> Physical usage Page 26

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