1. Energy Huntsville Forum
August 17, 2012
Good morning everyone and thank you for allowing us to share with you.
Energy Huntsville Forum 1

2. Toyota Manufacturing in North America
TABC 1971
CAPTIN 1985
TMMK
1988
TMMC 1988
BODINE
1990
TEMA
1996
TMMWV
1998
TMMI
1999
TMMAL
2003
TMMBC 2004
TMMTX 2006
SIA 2007
TMMC
2005
$21+ Billion Invested
40,000 Direct Employees
TMMMS
2011
Vehicle Plants - 7
Unit Plants - 5
Engine Plants - 2
Regional HQ 2

3. TMMAL Overview – Company Profile
Foundation: June 1, 2001
Investment: $700 million (by Spring 2014)
Location: Huntsville, AL
Toyota Property Line
NEW 3.5L V-6
Plant Size: Land 200 acres
Building 1.08 million sq ft
5.7L & 4.6L V-8
Employees: 1,150 (by Spring 2014)
4-Cyl
4.0L V-6
Engines
1GR E/G （V6 4.0L）
3UR E/G （V8 5.7L）& 1UR E/G (V8 4.6L)
1AR FE（2.7L）& 2AR FE (2.5L)
Capacity
146,000/yr
144,000/yr
216,000/yr
SOP
Aug. '05
Dec. '06 (3UR), March '09 (1UR)
Sept. '11
Stats
24 valve 245 HP
32 valve 381 HP / 32 valve 310 HP
16 valve 182 HP / 16 valve 178 HP
Customers
TMMBC, TMMTX
TMMI, TMMTX
TMMK, TMMC, TMMI, SIA
Toyota began here in Hunstville back in June of We are currently in the beginning stages of our 4th expansion project and once this is complete we will have 4 different engines all under one roof. With over one million square feet of production area and over $700 million dollars invested. 3

4. What Makes Toyota Different?
Empower Team Members
What Gets Measured Gets Done
Never Stop Improving
So let’s see what we feel makes us different.
Without our team members we could not achieve all that we have in the past 10 years.
Setting challenging and realistic targets motivates us all.
Never being satisfied with the status quo – therefore we continue to improve processes. 4

5. TMMAL Environmental Team
What is the Environmental Team?
Provides support, guidance and standardization
Team Member-driven Environmental system/program
Follows annual calendar for activities, training and audits
Who is on the Environmental Team?
In order for us to get ISO certified we had to involve our team members. We did that by creating Environmental Teams.
Voluntary position
2 per Group House – 1 per shift
Serve at least one year, many serve longer if trained as Internal Environmental Auditor 5

6. Regular Environmental Activities
This slide shows some of the Activities that are performed by our TM’s to ensure that we stay in compliance and are meeting our targets. 6

7. Report any issues or concerns for compliance or risk
Daily Process Checks
Production Team Members check their process daily at start and end of shift
Report any issues or concerns for compliance or risk
Enables management, Environmental Team Members to quickly address issues and implement countermeasures
Right: Mist Collector Machining Process
Below: Daily Checksheet
Production TM’s check their own process
Report any abnormalities
This allows management and Env TM’s to quickly address issues and implement CM’s 7

8. Use card system and board for audit tracking
Kamishibai Checks
Use card system and board for audit tracking
Environmental Team completes weekly audit on all items in daily checks
Managing your process
Compliance and risk
Knowledge retention
Ensures production Team Members are completing daily checks accurately
Another tool that we utilize is called a Kamishibai check.
Basically this is a card system that shows the TM what to check, how to check and creates a record of the actual conditions. 8

9. Team & Management Meetings
Monthly Team meeting to:
Share targets and results
Communicate new requirements
Highlight special events
Provide monthly status update to upper management, address any specific issues raised in Monthly Team Meeting
We use Team meetings to share targets and results
Communicate new requirements and highlight special activities
Information is also shared with upper management on a monthly basis all the way up to our President. 9

10. Semiannual Environmental Audits
Specially-trained group of auditors within Environmental Team
Conduct semiannual audits to confirm system health. Look for:
Compliance and risk management
Training records and document control
Face-to-face interviews with randomly selected team members on environmental awareness topics
Auditors responsible for multiple areas in plant, but can’t audit own area
We now have six TM’s that were chosen to become Enhanced Environmental lead auditors
We do conduct semi-annual audits to confirm the health of our system – looking for compliance and high risk items, training records and document control
Our auditors will conduct peer audits on the shop floor to ensure that our team members stay on the top of their game.
The auditors are responsible for multiple areas, with the exception that we do not allow them to audit their own areas. This creates a friendly tension among our departments. 10

11. KAIZEN – Continuous Small Improvement
Semiannual Kaizen Blitz
KAIZEN – Continuous Small Improvement
BLITZ – Hitting it from all directions in a concentrated effort!
Cross functional team focuses on improvements in specific environmental impact areas:
Energy
Water
Waste
Special Projects
One of our key activities was created by our own Assistant Manager of Environmental and this we call the Kaizen Blitz….. See cross functional ………. 11

12. Semiannual Kaizen Blitz
Corporate offices provide target reduction percentage, TMMAL calculates identified savings for next year
Potential kaizens placed on following FY’s Environmental Management Plan
TMMAL currently working on items identified in FY12 12

13. Semiannual Kaizen Blitz13

14. Semiannual Kaizen Blitz
Compressed Air Actuators 13 valves not being
used in production areas
63 hours/week
Estimated Annual Savings:
283,500 kwh/year
$19,845 / year
Compressed Air Actuators isolate the areas in need of compressed air. When the area was not running, the valves could be shut off and the demand for compressed air reduced.
Calculations showed that 63 hours/week – compressors could be throttled back for annual kwh savings.
Remember next slide is just photo of AR Line-Off
Talking about jobs and hiring will lead into slides about types of jobs at TMMAL 14

15. Semiannual Kaizen Blitz
Outdoor Lighting
Switch outside HPS lighting to UCD Lighting
Reduces energy usage by 70%
Total of 100 pole lights
Old
Cost = $23,993
Savings = $8,656 / yr
Payback = 2.75 yrs
Energy Reduction = 123,662 kwh/yr
High Pressure Sodium lighting in parking lots changed out with Ultra Constant Discharge lighting that reduces energy usage by 70% for an annual savings of over $8k.
New 15

16. Semiannual Kaizen Blitz
The team also looked at Water Reduction projects. This graph shows a Nano Filtration system project that could be used to recover 70% of our water in our chiller system for the plant. 16

17. Semiannual Kaizen Blitz
History
Average Summer monthly usage = 1,000,000 gallons
Average waste = 150,000 gallons
6/7 cycles
Projected
70% of lost water will be saved with filter
105,000 gallons will be put back in system
1/7 cycles
Nano Filter 17

18. Semiannual Kaizen Blitz
Our team members were very interested in the waste recycling of our plant. They actually found over $70k in savings through improved waste recycling opportunities. 18

19. Driver left debris when leaving compactor
Semiannual Kaizen Blitz
Covanta Go-and-See
Environmental Team Members visited Covanta site
Potential Items to be recycled:
Cardboard
Plastic
Paper
Parts
Dunnage
Target 50% of load diverted to recycle stream
Driver left debris when leaving compactor
The team headed out to Covanta for a Go-and See. They witnessed and toured the plant and came back with a better understanding of where our waste goes. By diverting some of our products to the recycle stream we could recoup approximately $3,200. Kaizen opportunity for us is to improve our waste segregation even further. 19

20. Summary Empower Your Team Members What Gets Measured Gets Done
Never Stop Improving
Empower Your Team Members 20

21. Any questions?
Notes 21