1. Growing …. The Toyota Way
Jim Bolte
Vice President Toyota Motor Manufacturing Alabama
Vice President Information Systems Toyota Motor Manufacturing North America

2. Agenda Growing in North America TPS and Information Technology
Manufacturing Improvements 2

4. 4 CAPTIN Toyota Motor Manufacturing Canada
Toyota Motor Manufacturing North America
NUMMI
Toyota Motor Manufacturing, West Virginia
TABC
Toyota Motor Manufacturing, Kentucky
Toyota Motor Manufacturing de Baja California
Bodine Aluminum
Toyota Motor Manufacturing, Indiana
Toyota Motor Manufacturing, Alabama
Toyota Motor Manufacturing, Texas 4

5. North American Growth: Sales
63% 5

6. North American Production
(000)
1.66 M 6

7. North American Employment
37,351 7

8. Common Information Systems
Toyota IS Strategies
Make Common and Simple
Connect and Integrate
Common Information Systems
Common
Business
Processes
Standard, Networked
Computing
Infrastructure 8

9. Business Drives Technology
Business drives technology, technology does not drive the business
Technology must add value 9

10. IT Investment Maintain appropriate level of IT investment
IT spending is less than 1% of total manufacturing revenue
Toyota invests less in IT but continues to build high quality vehicles 10

11. Toyota Production System (TPS)
Utilize TPS while taking advantage of technology
Visual Control 11

12. Toyota Production System (TPS)
Utilize TPS while taking advantage of technology
Visual Control
RCA (Root Cause Analysis) 12

13. Toyota Production System (TPS)
Utilize TPS while taking advantage of technology
Visual Control
RCA
Go & See
“Genchi Genbutsu” 13

14. Toyota Production System (TPS)
Utilize TPS while taking advantage of technology
Visual Control
RCA
Go & See
Motivation 14

15. Key Points Focus on Business Process Improvements FIRST
Apply technology improvements to “efficient processes”
Don’t automate inefficient processes
Use technology appropriately – Don’t be “used” by technology! 15

16. Toyota Alabama $490 M 800 Phase I Phase II Phase III Total Product
Phase I
Phase II
Phase III
Total
Product V8
for
Tundra
V6 for Tacoma/
V8 for Tundra/
Sequoia
Invest.
$220 M
$20 M
$250 M
$490 M
Annual Capacity
120,000
130,000
150,000
400,000
TMs
350
150
300
800 16

17. Team Member Training

18. Team Member Training Nine weeks of new hire training
Classroom, work conditioning and skill development 18

20. Allows TMs to select other views for the current process or other processes.20

21. SKPI Report
Weighted Score: 3 21

22. Standardized Escalation Procedure
TOYOTA
SUPPLIER 22

23. NED System Map NED System Map Order Daily Delivery Creation Change
Notice
Production
Plan/Scheduling
Production
Sequence
Parts Ordering
(e-Kanban)
Parts
Logistics 23

24. Order Adjustment / Optimization Priority Build Windows
NED Achievements
Lead Time Reduction
Order Adjustment / Optimization
Priority Build Windows
Enhanced Reporting
Improved Usability
Increases order / mix quality
Balances Pipeline
Increases capability and efficiency 24

25. NED Deployment
Suppliers
Unit Plants
Vehicle Plants 25

26. Conclusion Growth will continue based on TPS
Business drives technology, not the other way around
Customer focus will continue to increase
Our goal for the next few years is managing growth while improving operating efficiency 26