PROJECT ON

“FOUR WHEELER MANUFACTURING COMPANY”

 SUBMITTED TO: PROF. RAJEEV RANJAN

SUBMITTED BY: ABHISHEK PATHAK

ERP: 0181PGM123

TOYOTA
INTRODUCTION
1. Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered
in Toyota City, Aichi, Japan. In 2017, Toyota's corporate structure consisted of 364,445 employees
worldwide and, as of September 2018, was the sixth-largest company in the world by revenue. As of
2017, Toyota is the world's second-largest automotive manufacturer. Toyota was the world's first
automobile manufacturer to produce more than 10 million vehicles per year which it has done since
2012, when it also reported the production of its 200-millionth vehicle. As of July 2014, Toyota was
the largest listed company in Japan by market capitalization (worth more than twice as much as #2-
ranked Soft Bank) and by revenue.
2. Toyota is the world's market leader in sales of hybrid electric vehicles, and one of the largest
companies to encourage the mass-market adoption of hybrid vehicles across the globe. Toyota is also
a market leader in hydrogen fuel-cell vehicles. Cumulative global sales of Toyota and Lexus hybrid
passenger car models achieved the 10 million milestone in January 2017. Its Prius family is the
world's top selling hybrid nameplate with over 6 million units sold worldwide as of January 2017.
3. Number of products

 Toyota Etios Liva

 Toyota Fortuner.
 Toyota Innova Crysta
 Toyota Platinum Etios.
 Toyota Yaris.
 Toyota Corolla Altis.
 Toyota Camry 2019.
 Toyota Etios Liva.
 Toyota Land Cruiser.
 4. What are the quality tools that particular company are practices?

5S is one of Toyota Production System’s (TPS) many renowned philosophies, which aims to keep things
in order, make problems more visible and in turn, quicker to solve. Ultimately, the 5S system should be
integrated into the company by way of making it a natural habit in the work culture.
5S consists of 5 steps:
1. Seiri, pronounced “Say-Ree”, means “sort”. Sort through all items at a workstation and separate what is
needed on a daily basis from what is not. Items that are unnecessary are removed.
2. Seiton, pronounced “Say-Ton”, means “straighten” or “set in order”. This step involves painting marks
around each tool or piece of equipment. That way, every time a tool is taken from its place, it is indicated
that it is missing. At the end of the day, workers know which tools need to be put back. This simple step
can lead to great time-saving in the long run.
3. Seiso, pronounced “Say-So”, means “shine”. Once everything has been “set in order”, workers take on
a thorough cleaning process which they will practice daily. Keeping all work areas clean leads to faster
problem-spotting, such as leaking, and even safer working conditions, such as preventing tripping.
4. Seiketsu, pronounced “Say-Ket-Soo”, means “standardize.” After setting things in order and cleaning,
it’s time to reflect on the three previous steps and now implement them effectively. To do so, establish rules
and standards to ensure these steps are achieved regularly. Written instructions, visual aids and other
methods make it useful and easy for employees to follow.
5. Shitsuke, pronounced “Shi-Tsu-Kay”, means “sustain”. The aim is to turn each of the four previous steps
into a habit. Employees start seeking misplaced items instinctively, spotting excess or unnecessary items
in their work place and clean up anything they see, the moment they see it. Achieved is a continuous effort
among all employees to recognize waste and take action across all workstations accordingly.

5. How the kaizen and Poka - Yoke concept help the company to control the quality?

Kaizen comes from two Japanese words: Kai (improvement) and Zen (good). It’s a little lost in translation,
but over time Kaizen has become widely known as “continuous improvement.”

Today, Kaizen’s applications vary wildly. You’ll find practitioners everywhere from sales offices to study
halls.

How does Kaizen work?

Unlike Pomodoro or bullet journalling, Kaizen is more philosophy than lifehack. There are dozens of books
and thousands of consultants who might teach Kaizen slightly differently. But at its core, it’s got a few key
components:

Improve the process. Rather than focusing on the end goal, people should put their energy into figuring out
the best way to get them there.

Lead with evidence. An open-minded and experimental mindset is a great thing to have, but all Kaizen
changes must be driven by data.

Anyone can spur innovation. From the CEO to the day labourer, every member of team should have input
on how to make things better.

There’s always a better way. A Kaizen project is never truly finished. Keep looking for ways to improve!

Kaizen practitioners are committed to staying aware of their surroundings, and feel empowered to step up
and test data-driven alterations — even if doing so disrupts the status quo.

How is it used at Toyota?

For many people, Kaizen and Toyota are synonymous. Kaizen has long been one of its core principles, and
it’s one of the 12 pillars of the company’s famous Toyota Production System.

Kaizen is a smart business philosophy, especially for companies that value innovation like Toyota. The idea
of constantly seeking improvement might sound exhausting, but managers and employees that adopt the
Kaizen approach tend to create incredibly calm work environments. After all, with Kaizen the goal isn’t
more work, it’s better work.

It’s also a vital tool for morale. Kaizen humanizes the workplace, and creates an environment where
everyone can contribute, at any time. Instead of punishing employees for identifying setbacks, Toyota
managers actually rewards them.

The Production System is focused completely around maximum efficiency and fault-free
processes. That’s the idea behind Poka -Yoke Toyota

Poka-Yoke (English: mistake-proofing): Fail safe devices in the production process that automatically stop
the line in case of an error.

A Poka-Yoke is any part of a manufacturing process that helps a Toyota member avoid (yokeru) mistakes
(poka).

Its purpose is to eliminate defects by preventing, correcting, or highlighting errors as they occur – for
example, a jig that holds parts for processing might be modified to only allow them to be held in the correct
arrangement. In a wider sense, the term can refer to any behaviour-shaping constraint designed into a
process to prevent incorrect operation by the user.

6. What are the quality control parameters are in the company?

1.1 – Check, please!

At this point, each vehicle is almost at the end of its production journey. In a few hours it has been
transformed from a sheet of bare metal to a high-quality car worthy of a five-year warranty. But there is
still plenty of work to be done. Our completed car now faces its sternest test as it heads through the Quality
Assurance department, where a team of skilled workers will put the car under the microscope one final
time.

1.2 – Hands-on job

Cars arrive from the Assembly Shop on an overhead gantry. Their first stop in Quality Assurance is the
interior check team, where it takes 15 minutes to examine every part of the interior.

Next to be inspected for quality of fit and finish is the bodywork and exterior trim. This is where the most
sensitive tools in the factory are used for the first time – members’ hands. They’re trained to feel along the
body panels and panel gaps to check for imperfections or inconsistencies. However, finding any faults
would be a surprise. Each car has passed numerous inspections already, and built-in quality processes mean
that faults are spotted and fixed long before the car reaches this point.

Quality Assurance members carry out over 2,000 checks on every car before it leaves the factory. It’s all
part of Poka-Yoke – one of the values of the Toyota Production System that translates as ‘mistake-
proofing’.

1.3 – Function follows form

Once the interior and exterior checks are complete, the engine is started. In fact, as a car makes its way
through Quality Assurance the engine will be started and stopped six times.
In the function line, the underbody is checked and the fit and finish of the exhaust and floor pan is
scrutinised. Then while the steering alignment is fine-tuned, bolts and fixings are double-checked for
security. The headlamp height, angle, beam and brightness are examined to ensure brightness and reach,
and there are eight different types of brake light to check – each designed to comply with different legal
requirements in the 56 countries to which the cars are shipped.
1.4 – Water torture
Everything now aligned, each car heads to a rolling road for a series of running and brake tests. Here it is
accelerated to speeds of up to 70mph and the functioning of the anti-lock braking system is checked.
External systems like windscreen wipers are also put under the spotlight.
Soon afterwards, the car is subjected to a special leak test that drenches it with more than 900 litres of water
in a specially adapted shower room. It’s the equivalent of driving through water pressure that exceeds the
heaviest recorded monsoon. Naturally, all the water is recycled back into the system and reused.

1.5 – Power is nothing without control

A properly functioning electronic control unit, or ECU, ensures each car runs properly. The ECU check
may take just seconds but the programme tests every function the car will need to use in its lifetime.
Surprisingly, there remains one important part that still needs to be fitted – the airbag in the steering wheel.
It is left to the end of the production process for safety reasons and because the steering column needs to
be accessible.
Engine and chassis quality confirmation ensures there are no leaks. The confirmation process here involves
using video probes to get a close-up view of brake union joints and other tricky-to-see areas.

1.6 – Put under the spotlight

It’s the last stop. But to make sure each Toyota is looking its best, it’s time to hit the light tunnel. This last
inspection confirms once again that the paintwork is up to standard and that there are no scratches or dents.
The car is now ready to leave the production line at Burnaston. A total of 825 processes have turned sheet
steel and parts into a fully functioning, road-legal car in a little more than 12 hours.

7. How SPC is significance for that company?

SPC Software Benefits

Statistical process control (SPC) is commonly used in manufacturing or production process to measure how
consistently a product performs according to its design specifications. By achieving consistent quality and
performance, some of the benefits manufacturers can realize are:
Reduced scrap, rework, and warranty claims

 Maximized productivity

 Improved resource utilization

  Increased operational efficiency

 Decreased manual inspections

 Improved client satisfaction

 Reduced Costs

 Extensive Analytics and Reporting

1. discuss some of the significant / key benefits of SPC Software

2. Reduced Scrap, Rework and Warranty Claims

3. Maximized Productivity

4. Increased Operational Efficiency

5. Decreased Manual Inspections

6. Customer Satisfaction

7. Cost Reduction / Control

8. Extensive Analytics and Reporting

8. What are the quality instruments used by that company for controlling the quality?

Six Sigma
CIMA Official Terminology describes Six Sigma as a methodology based on TQM to
achieve very low defect rates. The ‘sigma’ refers to the Greek letter used to denote
standard deviation, so ‘six sigma’ means that the error rate lies beyond six standard
deviations from the mean. To achieve six sigma, an organisation must therefore produce
not more than 3.4 defects per million products.
In practice, businesses use techniques such as statistical process control to monitor and
chart processes, identifying exceptions to the upper and lower limits and aiming to reduce
the number of faults.

9. Method study, time study, TPM, Measurement Study, work study

Method study enables the industrial engineer to subject each operation to systematic analysis. The main
purpose of method study is to eliminate the unnecessary operations and to achieve the best method of
performing the operation. Method study is also called methods engineering or work design.
Fundamentally method study involves the breakdown of an operation or procedure into its component
elements and their systematic analysis. In carrying out the method study, the right attitude of mind is
important. The method study man should have:
The desire and determination to produce results.
Ability to achieve results.
An understanding of the human factors involved.
Method study scope lies in improving work methods through process and operation analysis, such as:
a. Manufacturing operations and their sequence.
b. Workmen.
c. Materials, tools and gauges.
d. Layout of physical facilities and work station design.
e. Movement of men and material handling.
f. Work environment.
Objectives of Method Study
Method study is essentially concerned with finding better ways of doing things. It adds value and
increases the efficiency by eliminating unnecessary operations, avoidable delays and other forms of
waste. The improvement in efficiency is achieved through:
a. Improved layout and design of workplace.
b. Improved and efficient work procedures.
c. Effective utilization of men, machines and materials.
d. Improved design or specification of the final product.
The objectives of method study techniques are:
Present and analyze true facts concerning the situation.
To examine those facts critically.
To develop the best answer possible under given circumstances based on critical examination of facts.
Work study in Production and Operation Management
“Work study is a generic term for those techniques, method study and work measurement which are used
in the examination of human work in all its contexts. And which lead systematically to the investigation of
all the factors which affect the efficiency and economy of the situation being reviewed, in order to effect
improvement.”
Framework of work study
Work Study in Management Science
Work study is a means of enhancing the production efficiency (productivity) of the firm by elimination of
waste and unnecessary operations. It is a technique to identify non-value adding operations by investigation
of all the factors affecting the job. It is the only accurate and systematic procedure oriented technique to
establish time standards. It is going to contribute to the profit as the savings will start immediately and
continue throughout the life of the product. Method study and work measurement is part of work study.
Part of method study is motion study, work measurement is also called by the name ‘Time study’.
Advantages of Work Study
Following are the advantages of work study:
It helps to achieve the smooth production flow with minimum interruptions.
It helps to reduce the cost of the product by eliminating waste and unnecessary operations.
Better worker-management relations.
Meets the delivery commitment.
Reduction in rejections and scrap and higher utilization of resources of the organization.
Helps to achieve better working conditions.
Better workplace layout.
Improves upon the existing process or methods and helps in standardization and simplification.
Helps to establish the standard time for an operation or job which has got application in manpower planning,
production planning.
10. Discuss other points as well which we have discussed in the class.

Product Life Cycle: Toyota Motors

.Introduction
During its whole life, each product passes through certain distinct stages; this is called the product life.
The utility of the PLC concept lies in the fact that each stage in the product life cycle is characterized by a
typical market behavior and each stage lends itself to the application of certain specific marketing
strategy. The four stages of the product life cycle are market pioneering stage, market growth stage,
market maturity stag, and market decline stage (Hill O'Sullivan & Hill, 2003). There are several non
North American Companies whose products have reached to the maturity stage of the product life cycle.
Toyota Motors is also a famous company which has several products in the maturity stage.
Company Overview
Toyota Motors is a Japan based company which is one of the world's largest automaker companies. The
company mainly manufactures automobiles. The products of the company are popular all over the world.
The company continuously launches innovative products for its customers. The product list of the
company includes cars, trucks, vans and other hybrid products. The company has various popular
products which have reached to the maturity stage.
Product at Maturity Stage
Among all the world class automobile products of Toyota Motors, one of the most popular products
which have risen to the product maturity stage is its car named Toyota Qualis. Toyota Qualis is an eight to
ten seater car. The engine of Toyota Qualis is very high powered with 2.4 liter diesel engine capacity. The
engine of the car has a very smooth start and it also has very powerful acceleration. The maximum speed
of the car is 130 kilometer per hour. The capacity of the fuel tank of Toyota Qualis is 53 liters. The car
also has very low fuel consumption. The body of the car is very protective and safe for the passengers
(Toyota Motors, 2009). The car has power steering, central locking, fabric seats, power windows and
locks, etc. Thus, the Qualis is a very popular car of Toyota Motors which has reached to its maturity
stage.
Public and Private Financial Sources
For the selected product the company will have several public and private financial sources in the home
country for the global investment. The public and private financial resources for Toyota in Japan are as
follow: long term

11. Inventory control

Just-in-Time
"Just-in-Time" means making "only what is needed, when it is needed, and in the amount needed."
For example, to efficiently produce a large number of automobiles, which can consist of around
30,000 parts, it is necessary to create a detailed production plan that includes parts procurement.
Supplying "what is needed, when it is needed, and in the amount needed" according to this
production plan can eliminate waste, inconsistencies, and unreasonable requirements, resulting in
improved productivity.

Kanban System
In the TPS (Toyota Production System), a unique production control method called the "kanban
system" plays an integral role. The kanban system has also been called the "Supermarket method"
because the idea behind it was borrowed from supermarkets. Such mass merchandizing stores use
product control cards upon which product-related information, such as a product's name, code and
storage location, are entered. Because Toyota employed kanban signs for use in their production
processes, the method came to be called the "kanban system." At Toyota, when a process refers to
a preceding process to retrieve parts, it uses a kanban to communicate which parts have been used.

Through continuous technological improvements, the kanban system has evolved into the "e-
kanban," which is managed using IT methodologies and has increased productivity even further.
- Why use a supermarket concept?
A supermarket stocks the items needed by its customers when they are needed in the quantity
needed, and has all of these items available for sale at any given time.
Taiichi Ohno (a former Toyota vice president), who promoted the idea of Just-in-Time, applied this
concept, equating the supermarket and the customer with the preceding process and the next
process, respectively. By having the next process (the customer) go to the preceding process (the
supermarket) to retrieve the necessary parts when they are needed and in the amount needed, it was
 possible to improve upon the existing inefficient production system. No longer were the preceding
processes making excess parts and delivering them to the next process.

12. What is the production capacity, manpower capacity and inventory capacity?

With the current annual capacity of 100,000 vehicles at its Turkish Adapazari plant (TMMT) and
the planned capacity increase at TMMF and TMUK, Toyota will have a total production capacity
of about 610,000 vehicles per year.

Manpower capacity: 396124

13. Select 8 types of defects in plant and the frequency of them, make a Pareto chart of
the defects.

Chart Title
70

60

50

40

30

20

10

0
Poor design wrong Defective Machine Operational Defective Surface
dimensions parts Calibration error materials abraisons

frequency

FISHBONE DIAGRAM