Toyota Motor Manufacturing Canada

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Toyota Motor Manufacturing Canada

• Toyotas Expectations of a Supplier
• Dave Nicolle
• Assistant General Manager
• TMMC Purchasing
• Supplier Preparation Development
• May 2009

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• North American
• Supplier Base Performance

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PPM Status
50 Reduction Achievement
43 Already Achieving lt 15PPM
50 Reduction Achievement
50 Reduction Target
On-going Target
lt
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QPR Status
40 Improvement
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KPM Status
40 Improvement
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• New Model Supplier Preparation Development

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- Suppliers make up 70 of Toyotas vehicle
content.- Direct correlation between strong
preproduction activity improved mass production
result.
Importance of Supplier Pre-Production Activity
Project Management
Risk Reduction
Customer Satisfaction
Capability Improvement
Strategic Loop
ID Parts Risk
Operation Improvement
Reflection
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TMMC Supplier Preparation Development (SPD)
Overview

• Organization
• Section of Purchasing Department with 12 Team
  Members.
• Goal / Mission
• Manage all TMMCs new (major / minor) model
  Supplier Preparation Development activity, to
  ensure their sustainable achievement of our
  quality delivery expectations.
• Provide TPS support to select Focus Suppliers
  that are currently struggling to achieve our
  expectations.
• Scope
• Approximately 250 Suppliers and 3300 part
  numbers.

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Supplier Parts Tracking Team Organization (SPTT)
TEMA Purchasing Program Management
Part / Process Information ISS SPMP PCR
Pulse
TMMC SPTT
(Support) TEMA PCE/SCE/QD
SPD Model Lead
QC
PC
SPD
NPD
SUPPLIERS
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Supplier Enhancement Program Management (SEPM)
Gated Process

• Goal
• Early Process Product risk identification
  resolution through mitigation strategy
  development and regular problem follow-up.
• Process
• Standardized activity with clear targets
  milestones, that are supported by Toyota Sr.
  Management, through regular Progress Meetings to
  ensure correct focus / support is provided to
  achieve targeted result before proceeding to the
  next Gate.

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SEPM Gated Mgmt -Process Overview
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Product Design SE Example
DIR Accepted
Concerns Identified
150L SE Example Product Design Risk
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• Drawing change- Control dimension- SPMP, MQC,
  QCMS, etc.

Plan Developed
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Sunshade Effort
Analysis C/M Proposal
Proposal DIR
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Change Point Management Risk Identification
S/A Rank Parts List S
A B C
By QC
By SPD
High
Process Risk -New Supplier
-New Plant -High PPM -Unstable Org.
-Past PM concerns
Design Risk Based on DRBFM -New
Technology -Safety Critical -New
Material
S/A special part activity required


Risk
S/A/B/C Standard part activity required
Reference Toyotasupplier.com
Emphasis on Change-Points
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SA Rank Part Strategy Development
- S A Rank Part Specific Plan outlines key
product / process change points. - Jointly
developed with Supplier to mitigate risk.
? Key milestones identified in order to develop
timelines
II
I
? Explanation of expectation to team
? Initial Identification of key Toyota
supplier teams required to meet strategies
objectives including technical experts Design,
PE, etc.
III
? Basic product and process key risk Items
identified
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Process Example
? Process concerns can exist at many levels 1.
Production cell 2. Level-up to benchmark
process 3. Logistics transportation 4.
Overall project management
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Toyota Parts Master Schedule (TPMS)

• Outlines Project KPIs for Process and Quality
• Issued by Toyota for all Ranks of Parts
• Available on toyotasupplier.com

• Master Schedule

• Process Readiness Elements
• Tooling Preparation
• Hiring / Training
• Sub-Supplier Management
• Production Readiness Checksheet

• General Range

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Supplier Parts Master Plan (SPMP)
Suppliers Project Management tool to plan and
communicate overall production preparation
schedule (plan) and progression (actual).
Freedom to use internal format (Must reference
TPMS Item s)
( contain all elements of the SPMP template)
How to Achieve Project KPIs Outlined in TPMS
SUPPLIER DETAIL
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Supplier Preparation Management (SPM) Manual

• iv) Supplier Responsibility
• Supplier should confirm parts produced for 1A
  trial and all future trials meet the following
  criteria to be considered off-process.
• Tooling Completed to latest ECI level and be in
  mass production location
• Equipment Completed and in mass production
  location
• Material Meets all drawing requirements.
  Produced on same process as what is to be used in
  mass production at material supplier
• Hiring Same operators as will be used in mass
  production. (Some negotiation of this target
  with Toyota PCE/SPD and NAMC/QCE before 1A trial
  part production may be acceptable)
• Training Operators must be fully trained on
  process and quality requirements
• Part Conveyance Same method as will be used in
  mass production. Includes between processes and
  to/from production line
• Line side Stores Same location and containers as
  will be used in mass production
• Inspection Fixtures Approved and same as will be
  used in mass production
• Inspection Frequency Matches MQC and same as
  will be performed in mass production. (Some
  negotiation of this target with Toyota PCE/SPD
  and NAMC/QCE before 1A trial part production may
  be acceptable)
• Packaging Returnable or expendable which will be
  used in mass production. (Some negotiation of
  this target with Toyota PCE/SPD and NAMC/QCE
  before 1A trial part production may be
  acceptable)
• Supplied Parts Meet all of above requirements in
  the process of the sub-supplier

Revision 5
TOYOTA MOTOR ENGINEERING
Page 24
January 2008
MANUFACTURING NORTH AMERICA

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Self Assessment Readiness Check Sheet PRC,
QRC, ORC

• Early identification of Expectations
• Linked to TPMS

Stepped Progression of Expectations

• Tooling/Process
• Off Tool C/F, CV
• Off Process 1A (in mass production location)

Process

• Training
• Mgmt, T/Ls CV
• Prod T/Ms 1A
• Prod T/Ms all shifts - SQCS

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Self Assessment Readiness Check Sheet PRC,
QRC, ORC

• Early identification of Expectations
• Linked to TPMS

Stepped Progression of Expectations
Operations

• Tooling/Process
• Off Tool C/F, CV
• Off Process 1A (in mass production location)

• Packaging
• Design Complete 1A
• Trial in Mass Production Pack 2A
• Mass Production Received - HVPT

Quality

• Training
• Mgmt, T/Ls CV
• Prod T/Ms 1A
• Prod T/Ms all shifts - SQCS

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P.A. / HVPT / SQCS Strategy
2A Parts Build Target for Suppliers to be SQCS
Achieved.
1A
2A
QCS/SOP
PA
SQCS
(Part Approval)
Saleable Parts
Deadline for all Suppliers to be SQCS achieved.
HVPT Period
LVPT Period
100 of Hourly Volume Requirement
85 of Hourly Volume Requirement
65 of Hourly Volume Requirement
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Early Preparation vs PPM at Launch
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• Supplier Expectations

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Safety is the Toyota Way
Safety is 1 Priority

• Safe work is the door to all work. Let us always
  pass through this door first.
• Eiji Toyoda

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Any company not willing to take the risk of
re-inventing itself is doomed
Fujio Cho VICE PRESIDENT TMC
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(No Transcript)
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Toyota Expectation
Target Zero Impact to Toyota during SOP
through model life.

• How
• Good Preparation of New Tooling Process
• Good Sustainable Condition of Current Process

• SEPM Gated Mgmt System
• S ABC Ranking Risk Assessment
• TPMS SPMP Plan
• PRC/QRC/ORC measure (o,?,x)
• Current Process Self Assessment
• Pulse Tool Assessment
• measure (0-5)
• SKPI understanding measure (ppm, QPM, KPM)

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Pulse Assessment Tool
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Toyota Feedback (SKPI)Supplier Key Performance
Indicators
Daily Feedback from Toyota for each NAMC 1.
Quality PPM All quality issues QPM Severity
of defect 2. Delivery KPM Delivery
discrepancies
Top 5 Among all NA Suppliers
Break Up Year over Year Year to Date By NAMC

• Target
• PPM 15 Functional / 50 Appearance
• QPM 50
• KPM 0

Actual Data
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Putting good tooling into a poor process will not
give good initial and/or sustainable results.
New Model vs. Current Production
Target Zero Impact to Toyota during SOP
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Toyota/Supplier Expectation Gap

How to Overcome -Cross Functional
Teams -Systematic Approach Gated Mgmt
System -Change Point Mgmt Risk ID Mitigation
Strategy -Quick Recovery Countermeasure Cycle
Toyota Expectation - Drawing Requirement -
SQAM - Inspection Standard -
Safety -Circle-L, Q Delta-C - SPM Manual -
TPMS - PC Requirement -Parts
Dimensional Accuracy
Gap - Quality - Capacity -
Training - Equipment - Safety

• Supplier Capability
• - Self Assessment
• - SKPI Reports / Results
• - Pulse Rate Tool
• - Prod Readiness Check Sheet
• -Bench Mark Best process

Result Zero Impact to Toyota during SOP
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Quality Key Points
Fully Understand Product SE Stage
Involvement Drawing Requirements Benchmark
Internal / External Inspection Std Made by
Supplier Parts Requirement on Vehicle Datum,
Critical fit, Function
Establish Process Based on All
Requirements Check Fixture Development Build
Control Points into M.Q.C. Mfg Quality Chart
Measure Results Submit using S.D.S.
Sample Data Sheet For the 4 Key Areas 1-
Dimensional, 2- Performance 3- Durability,
4-Appearance
Verification of Readiness Quality Confirmation
using Q.R.C. Quality Readiness Check Sheet Are
the Systems in Place to Assure Initial Sustain
Long Term Quality?
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Quick Action
Quick Response,Containment Countermeasure
NAMC

• Supplier Action at NAMC
• Go See Problem
• Pull Sort Back to Supplier Plant
  (if required)

• Supplier Internal Action
• Investigate Internally
• Countermeasure for No Repeat Issues

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Focus on In-process Defects

• Identify Key Processes to Ensure Quality
• Use to Problem Solve
• Implement Long-term C/M and Avoid Repeat Issues

Shift to Proactive
Supplier
Stop Defect
Process C
Process B
Process A
NAMC
Self Quality Check
Self Quality Check
Self Quality Check
Receiving Inspection
In-Process Defects
In-process Quality Sustained Quality
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Strengthen Standardized Work
Standardized work is more critical now than ever,
due to business conditions and work force changes
Management Role
Team Member Role

• Follow the Standard
• Feedback Problems

• Develop Standardized Work (Simple Clear
  with Team Member Involvement)
• Train TMs
• Audit results

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Visual Management
What is it?
Visual management is the practice of making all
standards, targets and actual conditions highly
visible in the workplace, so that everyone can
see and understand the actual conditions vs.
requirements.
Why do it?
The purpose of visual management is to assist ALL
TEAM MEMBERS in the management / ownership of
their processes. Visual management lets TMs
understand the current condition and be aware of
trends. With this understanding, opportunities
for improvement become apparent.
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Visual Management and Communication
Cost
Training
Safety
Quality
Production
G/L P3 Control Board
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Supplied Parts Cost Reduction
What is VI, VE, VA?
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The Seven Types of Muda-Waste
MudaThat which adds no value but raises the
cost of the product
Muda of Waiting Muda of Conveyance Muda of
Over-Processing Muda of Inventory Muda of
Motion Muda of Correction Muda of Over-Production
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Summary and Requests

• Fully Understand Expectations
• Follow Development Milestones
• Honest Self Assessment
• Develop Quality System to assure no Flow Out
• Understand Manage Change Points
• Visualize Understand Escalation Process
• Continual cost reduction elimination of Muda
• Develop Relationships for Mutual Success

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toyotasupplier .coms Supplier Guide
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• Questions?