Introduction- LeanThe purpose of lean is to remove all forms of waste from the value stream. Waste includes cycle time, labor, materials, and energy.The chief obstacle is the fact that waste often hides in plain sight, or is built into activities.
Benefits Lean manufacturing delivers an insurmountable competitive advantage over competitors who dont use it effectively.
Benefits(1) Lower production cost higher profits and wages Cost avoidance flows directly to the bottom line.(2) Supports ISO 14001 and "green" manufacturing Reduction of material waste and associated disposal costs higher profits(3) Shorter cycle times: make-to-order vs. make- to-stock
Bottom Line and the Language of Money The first comprehensive implementation of lean manufacturing yielded: Stock appreciation of 63 percent per year, for 16 years (not counting dividends) 7.2 percent annual wage growth
Implementation of fundamental leanprinciples at Automobile Industry
Lean Implementation atToyotas Existing Supply Chain and CustomerResponsiveness Initiatives
Enterprise ResourcePlanning System (ERP)
Enterprise Resource Planning System (ERP) SAP Automotive ERP Suit Main means of information flow between Toyota and its counterparts worldwide. Tighter collaboration links With SAP, gain: Outstanding strategic, Operational, Financial, Marketing positions
E-Marketplace iStarXchange Initiative with i2 Technologies Inc. Allow subscripted members able to view a single catalogue to: view information on parts checking the prices and availability conduct transaction online forecasting supply and demand delivery cycle Improved forecasting Enhancing the planning Enhance deployment and replenishment of the inventory
Trade Matrix system Initiative with i2 Technologies Inc Automates with equipment manufacturer and suppliers in terms of : sites inventory management warehousing Logistic and shipping
Main SAP Automotive Suit ERP System Main means of information flow between Toyota Australia and its counterparts worldwide. Tighter collaboration links between TMCA and TMC Logistic and shipping Overall Value Chain
BEA Web-logic Integration 8.1 Integrated within the SAP automotive suit Main IT Backbone of TMCA Based on Open Standard Allow connection to their numerous partners in the value chain via an assortment of systems in Australia Integrate the systems and processes that connects Toyota Australia and its trading partners
BEA Web-logic Integration 8.1 Functions: Electronic proof of delivery Online accounts payable status for suppliers Fleet management integration The Toyota Vehicle Order Processing System (TVOPS) Advance Shipping Notice for vehicle deliveries Vehicles inventory synchronization
SAP International collaboration Raw Material Suppliers End Customer SAP/BEA Dealers1st Tier/ 2nd TierSuppliers Manufacturing Warehouse/ Plants Parts Centers
Electronic Kanban-Card System Identical in function to the physical kanban cards used by Toyota in Japan 4 main purpose: Sole means of requesting new parts Send for every order shipment Send to a specific supplier plant Establishing the mix and volume criteria for assessing if an order was correct
Electronic Kanban-Card SystemPARTS TOYOTAS UPPLIER (TMCA) Ma te ri a l Re qu i re m e n ts Fo rca s t O rde rs Pl a n n i n g ANS I X1 2 8 3 0 Pl a n n i n g Fo re ca s ts Ka n ba n s De l i ve ry Do ck e t Ka n ba n S o rti n g Pro du cti o n Li n eDe s pa tch i n g G o o ds Ka n ba n s De l i ve ry Do ck e t Re ce i vi n g Acco u n ts Re m i tta n ce Advi ce Acco u n ts Re ce i va bl e EDIFAC T REMADV Pa y a bl e EFT EFT BANKING S YS TEM
Australian Automotive Network eXchange (AANX) Four major car manufacturers in Australia are involved Numerous service providers and non-key suppliers Provides IP based Extranets for the automotive industry in Australia Operates as a virtual point network (VPN) Allows users to send date to each other in a reliable and secure manner
Australian Automotive Network eXchange (AANX) Main components: A network that is based on available Internet technology Operated by agreed and standardized service levels. Demonstrating proactive management of trading partner connections Practice the best standard of security and privacy for transactions and interoperability between service providers
Supplier Website Toyota Supplier.com www.toyotasupplier.com TMCA focused on core competencies in high-end design engineering and system integration Toyota Australia needs highly focused core competency oriented suppliers.
Supplier Website Small and diverse companies though have the ability to display such potential to add Innovation Flexibility and Strength to TMCAs supply base. Supplier-centric web site Provide opportunities to expand TMCA supplier network.
Supplier Website Access Flow From Toyota Australia Suppliers web site
Agent Oriented Domestic Marketplace Will be able to support a broader base of services given further growth in e-Market infrastructure Baseline interaction and directory services Specialty market services, such as: Dynamic trading; Cooperative supply chain integration and management Enables and facilitates the relationship between business participants Suppliers and service providers; and Supporting systems
Agent Oriented Domestic Marketplace Many-to-many relationships supported between TMCA and these business partners. Enables both TMCA and suppliers to leverage economies of scale in their trading relationships Allows access to a more liquid marketplace Further allows the use of dynamic pricing models e.g. Auctions (one of the services provided in the proposed e-marketplace) Improve the economic efficiency of the market where uncertainty about prices and demands are common.
Agent Oriented Domestic Marketplace Many-to-many relationships supported between TMCA and these business partners. Enables both TMCA and supplier