Leadership in TOYOTA Way. Masahiro Nonami PT. TOYOTA Motor Manufacturing Indonesia (TMMIN) April 28, 2017

Transcription

1 Leadership in TOYOTA Way Masahiro Nonami PT. TOYOTA Motor Manufacturing Indonesia (TMMIN) April 28,

2 Speaker Introduction I joined TOYOTA Motor Corporation in 1977, have worked across the organizations including Japan, Thailand, and Indonesia. Introduction of the Speaker Year Career Journey 1977 Production Control 1980 Purchasing 1987 Human Development 1992 Human Resources 1997 Labor Relations 2003 Shimoyama Plant Masahiro Nonami Corporate Executive Advisory Director of PT. TOYOTA Motor Manufacturing Indonesia (TMMIN) 2006 TMT, TMAP-EM 2010 TMMIN President Director (PD) 2017/4~ TMMIN Corporate Executive Advisory Director (CEAD) 1

3 2 TOYOTA s Business in Indonesia

4 Business History of TOYOTA Indonesia TOYOTA Indonesia was established in 1970 and celebrated its 45-year anniversary in Major Milestones of TOYOTA Indonesia 1970s 1980s 1990s 2000 ~ Overall 71 TAM Establishment 03 TMMIN Established Year Anniv. (Separation of Production & Sales) Year Anniv. Sales 71 Sales Start 05 Fortuner Launch 16 Sienta CALYA Launch 07 Lexus Launch 04 Avanza Innova Launch Produc tion 73 Vehicle Production Starts 73 Sunter 1 st Plant Established 82 Engine Production Starts 87 CBU Exports Starts 82 Sunter 2 nd Plant 98 Karawang 1 st Plant Established Established 13 Etios Valco Launch 14 Yaris Launch 13 Karawang 2 nd Plant Established 16 Karawang 3 rd Plant Established Major Produc tion Model 1st KIJANG 3rd KIJANG 6 th KIJANG (INNOVA) FORTUNER SIENTA ETIOS VALCO VIOS YARIS 3

5 Developing Cars Suited to Indonesian Needs TOYOTA has worked closely with the people, business partners, and government in Indonesia to develop cars suited to the needs of the country. The Kijang Project Car Unique to Indonesia Introduced in 1977 Price: 1/3 of Corolla Plastic/canvas windows Boxy body outline Developed at the request of the Minister of Industry 4

6 Overview of TOYOTA Indonesia TOYOTA has two local companies in Indonesia, which are TMMIN for vehicle manufacturing and TAM for distribution, and in TMMIN, we proactively promote Indonesian Director. TOYOTA Motor Manufacturing Indonesia (TMMIN) Vehicle/ Parts Production and Export 95% 5% 9,300 (As of Dec 2016) 218,229 Business Area Investment Ratio # of Employee Production / Sales Volume(2016) TOYOTA-Astra Motor (TAM) Vehicle/Parts Distribution 50% 50% 1,600 (As of Dec 2016) 389,241 (Share No. 1: 36%) TMMIN BOD Members TAM BOD Members PD VPD Director Director VPD PD CEAD Dir : Made Dana Dir : Darmawan z T. Henry Y. Nakata Indonesian Dir : Nandy Dir : K. Inada 5

7 TOYOTA GROUP in Indonesia TOYOTA contributes to the development of the automotive industry in Indonesia by cooperating with assembly makers and suppliers of the TOYOTA GROUP. Composition of the TOYOTA GROUP in Indonesia Brand Sales Vehicle Production Component Sales & Production TOYOTA ASTRA MOTOR (TAM) TOYOTA MOTOR MANUFACTURING INDONESIA (TMMIN) ADM* HMMI* Sugity* DENSO TOYOTA INDUSTRIES AISIN SEIKI TOYOTA BOSHOKU ASTRA DAIHATSU MOTOR (ADM) AICHI STEEL JTEKT TOYODA GOSEI TOYOTA AUTO BODY HINO MOTORS SALES INDONESIA (HMMS) HINO MOTORS MANUFACTURNG INDONESIA (HMMI) TOYOTA TSUSHO TOYOTA BIO TOYOTA HOUSING AUTOMOTIVE COMPRESSOR 6 (Note) (*)Produces vehicle for TOYOTA brand, - (**)SUGITY CREATIVES is a subsidiary of TOYOTA AUTO BODY

8 TOYOTA Market Share in Indonesia TOYOTA GROUP accounts for more than 56% of the market share as of (1,000 Units) ,5% ,4% ,2% Indonesia Market Size and Market Share of TOYOTA GROUP 38,8% ,0% ,1% 6,1% 9,4% 9,1% 10,4% 12,2% 13,0% ,0% ,7% 35,4% 36,4% 35,7% 32,5% 31,6% Total 56.2% 36,3% 15,4% 15,5% 15,4% 14,8% 14,9% 15,4% 16,1% 17,9% 1,2% 1,3% 1,2% 1,3% 1,9% 2,3% 2,4% 2,8% 2,9% 3,1% 2,8% 2,5% 2,1% 2,0% Source:GAIKINDO, Internal Information. *: Hino data is up to November for 2016 TOYOTA 100% 90% 80% 70% 60% 50% 40% 30% 20% DAIHATSU HINO* 10% 0%

9 Importance of Indonesia for TOYOTA Indonesia is the 4 th largest market in the world for TOYOTA vehicles. (1,000 Units) Rankings of TOYOTA Worldwide Sales (2016) U.S.A Japan China Indonesia Thailand Saudi Arabia Australia Canada Brazil Phillipine Source:Internal Information

10 TOYOTA GROUP: Vehicle Production TMMIN s vehicle production in 2016 is around 210 K units. Including ADM, HMMI, and SUGITY, the TOYOTA GROUP production volume reached around 750 K units. (1,000 Units) TOYOTA GROUP Vehicle Production Trend( ) TOYOTA DAIHATSU HINO/Sugity Source: Internal Information

11 Export Volume Trend The TOYOTA GROUP occupies around 90% (170K Unit) of the total vehicle export volume from Indonesia. The amount has decreased due to major model changes. (1,000 Units) TOYOTA GROUP Export Volume Share ( ) 350 TOYOTA Brand DAIHATSU Brand Export Market Share (TOYOTA + DAIHATSU) 78% 80% 77% 84% 84% 87% Source:GAIKINDO, Internal Information Note: Export Market Share is up to Nov. 2016

12 Engine Production Volume Engine production reached to 230 K units in 2016 after TOYOTA s new engine plant opening. (1,000 Units) TMMIN Engine Production Volume ( ) Domestic Export New Karawang Producing Engine Engine Plant Open* (Produce R-NR Engine) 328 TR Engine (1TR=2L, 2TR=2.7L) Source: Internal Information *Opened in Mar Export Export Domestic R-NR Engine (NR=1.5L) New

13 Destination for Export (Vehicle & Component) TOYOTA assures high quality not only in Indonesia, but also in global level. The global management principle known as TOYOTA Way is sustaining the quality. Destination Countries for Vehicles Destination Countries Middle East Saudi Arabia UAE Egypt Other 8 countries Africa South Africa Nigeria Ghana Other 10 countries South Asia Pakistan India Kazakhstan Other 3 countries INNOVA Southeast Asia Philippines Malaysia Thailand Other 2 countries TOYOTA FORTUNER East Asia Japan Taiwan China Oceania Australia Tahiti Fiji 70 Countries Latin America Mexico Venezuela Other 26 countries VIOS AVANZA ENGINE DIES 12

14 13 TOYOTA Way

15 TOYOTA Global Vision TOYOTA aims to realize Better Vehicle and Better City, Better Society based on TOYOTA Philosophy and TOYOTA Way as foundation for realizing Customer Smile. Image of TOYOTA Global Vision Customer Smile Vision, Goal Better Vehicle Better City, Better Society Basic Principle TOYOTA Way TOYOTA Philosophy 14

16 Introduction of TOYOTA Way Continuous Improvement and Respect for People are common values and methods shared among all TOYOTA people in the world. Today s focus point is Respect for People. Continuous Improvement Today s Focus Point Respect for People Challenge TOYOTA Way Kaizen(Continuous Improvement) Genchi Genbutsu(Solving Problems at the Source) Respect A We respect others, make every effort to understand each other, take responsibility, and do our best to build mutual trust Respect for stakeholders Mutual trust and mutual responsibility Sincere communication Teamwork B We stimulate personal and professional growth, share the opportunities of development and maximize individual and team performance. 1 Commitment to education and development Respect for the individual ; realizing consolidated power as a team 2 15

17 TOYOTA Way: Respect for People A Respect 16

18 A 1 Supply Chain of Automotive Industry Build win-win relationship and prosper together with suppliers who supply 20,000 to 30,000 parts per vehicle. Image of Supply Chain of Automotive Industry Approx. 400 companies Approx. 200 companies Tier 2/Tier 3 Supplier Tier 1 Supplier Assembler Domestic Sales Supply Chain Raw Material Manufacturers Tier 2/Tier 3 Supplier Tier 1 Supplier Tier 2/Tier 3 Supplier Export Raw Material Smaller Parts Units Vehicle Business Areas Steel Motor Blower with Fan Servo Sub Assy Damper Air Conditioner (HVAC) Vehicle Sales & After Service 17 Resin Total 20,000~30,000 parts

19 A 1 T2/T3 Supplier Development To further strengthen the industry in Indonesia, TOYOTA is committed to work together with T1 suppliers to help T2/T3 suppliers implement the TOYOTA Production System. Support of TOYOTA with T1 Suppliers Actual Improvement Case TOYOTA work w/ T1 supplier to develop the Monozukuri skill and mind of T2 suppliers Improve Inventory Management Issues of T2/T3 Suppliers to be Solved 1 Working Condition Safety 2 Standardized Work 3 First In First Out Operation 4 Inventory Level 18

20 Aluminum Synthetic Rubber Resin Steel A 1 Material and Parts Localization TOYOTA is conducting material localization for competitiveness enhancement and contributing to upstream industry in Indonesia. Material Localization Progress Localization Ratio True Localization Ratio Localized by Krakatau Steel Local Production (JFE, Nippon Steel, start localization gradually) Localized by Chandra Asri(CAP) & Hexa Local Production Resin Localization(9 Feb 17) 100% 80% 60% Localization Ratio 80% 85% 85% 85% 85% 90% 95% 60% Localized by CAP & Michelin Local Production Localized by Inalum Local Production Main Activity The inauguration of resin material for TOYOTA vehicle in cooperation with Chandra Asri Petrochemical (CAP). 40% 20% 0% 38% 45% 2004 (SOP) 60% 60% 61% 65% 75% 80%

21 A 1 SME Development: Supporting Casting Company in Central Java TOYOTA is supporting MoI and IOI for local casting companies improvement in Central Java to improve their safety and production performance from July TOYOTA's Support Activities for Local Casting Companies Plant Arrangement Activities (5S) Safety Production Activities Before Support After Support TOYOTA Indonesia supports safety improvement and efficient production operations for three SME. (Main supporting contents: 5S Education, Safety Education, Efficient Production Process, Quality Improvement etc.) 20

22 A 2 3 TOYOTA GROUP Employment TOYOTA GROUP is working to nurture the automobile industry and peripheral industries in Indonesia and contributes to securing employment of about 300,000 people. Automotive Related Industry Number of Related Companies and Employees Assembly make Final product Vehicle Number of Companies 1 (TMMIN) Number of Employees 9,300 Automotive Assembly Industry Tier 1 supplier Unit (Engine, Transmission etc.) About 200 About 110,000 Tier 2/3 supplier Component About 400 About 130,000 Sales Forwarding Industry Sales Dealer Forwarding Others 1 (TAM) 1,600 About 700 About 40,000 Total Over 1,200 Over 300,000 21

23 A 2 3 Company-Labor Communication Same as global TOYOTA, TOYOTA Indonesia communicates its operational status to employees in detail, which will be a base for in-depth negotiations about salary and bonus. Negotiation Scheme Support Managers Union Members Wage Negotiation Scheme Rule Decide based on certification Decided based on discussion between company and union Productivity Index Used for Negotiation Hour rate Time per unit Labor cost per unit Sales to labor cost ratio Labor cost per person Sales per person Variable Bonus Bonus Negotiation Scheme Fixed Bonus Negotiable Not Negotiable Multi-Communication Scheme Index PA Discretion Effort Profit Base (Max 2 months) 4months Salary Multi-time Communication Between Company & Union as Foundation Company Labor Union Business Communication (Company Level) 2 time / year Forum Executive (Director Level) 4 time / year Forum Location (Manager) 6 times / year Forum Minor (Dep Manager Level) Every Month Involving management to staff level, TOYOTA communicates its financial/operational situation to employees several times a year. In addition, KPIs and problems/concerns in workplaces are shared monthly. 22

24 A 2 3 Productivity Committee TOYOTA Indonesia established Productivity Committee in order to improve company competitiveness together with labor union. Productivity Committee Scheme Cooperation Forum Management Communicate Union Activities o Launch supplement material for bipartite forum Develop regular message from management on bipartite forum, includes convey message to all members through shop-steward Productivity discussion; Workplace genba o Promote genba management on ergonomic issue, new comer issue E.g. Ergonomic issue (Yarinikui), New comer issue Member Voice Joint Genba Involvement of respective DH and DpH in each shop Shop-steward coordinator 23

25 TOYOTA Way: Respect for People B Teamwork 24

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27 B 1 Organization Structure TMMIN is applying nearly same management structure as global TOYOTA. (# of people) <Management range> <4 GLs> Group Leader(GL) <3 TLs> Team Leader(TL) <8 TMs> Team Member(TM) Department Head (DpH) Section Head (SH) (158) (991) Role by Position (474) (6,273) Section Head (SH) Group Leader(GL) Team Leader(TL) Team Member(TM) Role Head of the site Manage human resources and expenses among groups Make sure every line is operating in safe and appropriate manner Supervisor of a group Drive group management based on thorough standardization, improvement of processes and human resource development through detailed direction Responsible person for stable daily production activity Lead TM regarding standard operation observance. Perform standard process if needed. Executer of standard operation Follow standard procedure and perform stable operation 26

28 B 1 Employee Training Structure TMMIN is applying nearly same training structure as global TOYOTA. Training by Rank: Engineer Workplace Management TCS Communication Skill TBP Problem Solving TBP for Manager Problem Solving Observe the Standard Operation TJI How to Teach Job TPS Standard Operation and Kaizen Perform the Standard Operation Basic Skill Understand the Role QC Circle Education Safety Company Regulation, TOYOTA Way QC Circle Leader Education TL Role Education QC Circle FACILITATOR Education GL Role Education QC Circle Advisor Education CL Role Education TM TL GL SH 27

29 B 1 Teacher/Trainer Teacher from University or Polytechnic TMMIN Trainer Education Program for Core Human Resource Development Venue TOYOTA provides own education program to develop core human resource for Indonesia automotive industry. TIA TOYOTA Learning Center TOYOTA Indonesia Academy ICT Program Learning center provides comprehensive practical training and promotes skills and knowledge transfer amongst employees. Information TMMIN Trainer TMMIN Leader Area: 3,700 m2 Number of shops: 11 Capacity of trainers: 5,300/year (Local high school students ) Operation start: May, 2012 TOYOTA opened TIA in 2015 which provides education program for the engineering. Information TIA TLC & Plant Goal: develop the core human resource to support automotive industry development Target: SMK students TOYOTA is proactively promote oversea training to Japan to study advanced engineering skills. Information Around 70% of engineers at TOYOTA Indonesia have been trained overseas. 28

30 B 2 CBC Activities TOYOTA conducts CBC (Clean, Bright, Comfort) activities as a team for continuous improvement in plants. Clean Activity Bright Activity Comfort Activity Working on no stains in human, machine and wall under the belief that a change in mindset will change the method, which leads to continuous level up Installed dust collector to prevent smoke in casting plant for better working environment (bright environment) Building comfortable working environment like installing tools/machines to improve the efficiency, setting green garden inside a plant to have enjoyable fresh feeling at worksite. 29

31 B 2 Member s Voice Activity In the Member s Voice Activity, the genba team members voluntarily propose kaizen idea to the department head, which improves motivation, task ownership, and team work. Overview of Member s Voice Activity Improvement Example If a problem is found (quality, safety, productivity, operation cost, etc.) Usual Kaizen Activity Member s Voice Activity Department Head (DPH) Department Head (DPH) Flow of Improvement Activities Instruct from DPH to Genba Genba proposes to DPH Pulling out heavy items by hand Genba Team Member Genba Team Member Capability Improvement of team member Role recognition of supervisor as the problem solver Motivation improvement of team member (ownership improvement) Developed a pulling-out device (by members) 30

32 TOYOTA Philosophy TOYOTA upholds a philosophy of working together with local citizens and contributing to economic and social development in all of the countries in which we operate. TOYOTA s Basic Principle Contribute to the Development and Welfare of the Country If you are not sure what to do, do what s good for the local community. - Masayuki Kato, former president of TOYOTA Motor Sales Co., Ltd. 31

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