Mr. Vudhigorn Suriyachantananont

Senior Vice President

Toyota Motor Thailand

17 September 2015

12:30 – 13:30

TOYOTA - Social Innovation

Luncheon Talk:

Today’s Agenda

1. TOYOTA Business overview

2. TOYOTA -Social Innovation

3. Q & A

Banpho Plant

Establish: 2007 Production Capacity 220,000 units/year Model: Hilux Revo, Fortuner

Gateway Plant

Establish: 1996 Production Capacity 300,000 units/year Model: Camry, Camry Hybrid

Altis, Vios, Yaris

• Establish : 5 October 1962

• Capital fund: 7,520 million baht

• Production capacity : 750,000 units/year

• Employees : 18,400 people

Samrong Plant

Establish: 1964 Production Capacity 230,000 units/year Model: Hilux Revo

TOYOTA Business Introduction

IS

RX270

IS F Sport

ES

RX350

GS F Sport

GS

RX HYBRID

LS F Sport

LS

NX HYBRID

CT F Sport

Sedan

SUV

Sport

• Production Model

TOYOTA Business Introduction

REVO Standard

ALPHARD

FORTUNER

VIOS

YARIS ALTIS

AVANZA INNOVA

CAMRY

REVO Smart cab

REVO Double cab

86 GT

Passenger car

Commercial car

Van

HIACE

Import Model

HIACE Commuter

PRIUS C

TOYOTA LEXUS

• Awards

JD Power SSI No.1 3 years consecutively

(2012 - 2014)

JD Power CSI No.1 7 times in 11 years

TAQA Award 11 awards (2014)

JD Power IQS 3 awards (2014)

Single cab

Smart cab

Double cab

The Most Powerful Brands 2 years consecutively

(2013 - 2014)

Prime Minister Road Safety Award 3 years consecutively (2009 – 2013)

Product & Service

Brand Society

Innovative Brand

*ทีม่า Boston Consulting Group USA, 2014

TOYOTA Business Introduction

• TOYOTA Philosophy

Be contributive to the development and wealth of the country

by working together, regardless of position,

in faithfully fulfilling your duties -- Sakichi Toyoda, Founder --

Source: Kiichiro Toyoda, 30 October 1935

TOYOTA Business Introduction

• TOYOTA Social Activity in 50 years

1962 1972 2012 2015 1992 2002

Edu

cati

on

CSR

Qu

alit

y o

f lif

e

Co-funding of Automotive Engineering Department, Chulalongkorn University (1990)

Scholarship to Chulalongkorn and Thammasart University (1973)

Establishment of TOYOTA Automotive Technology School (1998)

TOYOTA Technical Education Program(1990)

Strengthen Labor skill Development program (2009)

Samrong Plant ISO 14001 (1998) All 3 Plant (2008)

TOYOA Green Town (2014)

Mangrove Reforestation Project (2004), Eco Forest Project(2008)

Opening Prius to Thailand (2011)

Stop Global Warming Project (2005)

White Road Campaign(1988)

White Road Theme Park (2004)

Smiling Road (2012)

Safe Drive Education (2013)

Establish TOYOTA Thailand Foundation(1992)

Develop Thailand Education

Develop Environment sustainability

Ensure Safety on the Road

Ensure & Develop Quality of Life for Thai People

Support Thailand Education , I Love Green Vegetables Project (1995)

Envi

ron

me

nt

Ro

ad S

afet

y

All Showroom get ISO 14001

TOYOTA One day Parent (1975)

reduced CO2 23,000 ton/yr

reduced CO2 12,600 ton/yr

reduced CO2 32,300 ton/yr

Co-operate with Thai Red Cross for support children with cleft lips and palates (2002)

Initiate 2007

Time for Action

TOYOTA Business Introduction P

hila

nth

rop

y

Edu

cati

on

Q

ual

ity

of

Life

En

viro

nm

ent

Ro

ad S

afet

y

2012

What is next step

Beyond CSR

1962

CSR Philanthropy

1992

• TOYOTA Social Activity in 50 years

TOYOTA Business Introduction So

cial

Act

ivit

y

Next Decade

Sustainable Development

TOYOTA Business Introduction

Social Business

25% of Thailand GDP

95% cannot survive

Society Environment

Economic

• White road • 4R-4I • Quality of life • Education

• Eco forest • Eco showroom • Stop global warming • Green town

• Sustainable Development

Social Innovation • Develop social business • Enhance Thai people capability

• Implant TOYOTA know-how TPS &

create Kaizen spirit

Concept of Toyota Production System (TPS)

• What is needed

• The Amount needed

• When it is needed

Just in time

• Built in quality 100%

• Safety

Jidoka

We transfer TPS Know-how to Business partner through 50 years

• Can do & Sustainability

• Kaizen Dealers Suppliers

TOYOTA Business Introduction

Rachamongkol rice mill (RRC) Following his majesty the king’s initiatives in 1999

Rice mill management Help Local Farmer

Apply TPS

• Stock management

• Built in quality

• Sales - Stock - production Visualization Stock month 1 0.1month

Yield 36% > 41% > 45%

49%*

Sale under market price

Smart Farmer Project (Kaizen)

• Planning

• Soil quality & customize fertilizer

• Farming account

Concrete ground Pond Granary

Purchase paddy higher from market price Donate production facility

RRC

Role model of Social Innovation project by transfer TPS & Kaizen

+12%

Productivity/rai

+21%

Customize fetilizer

Stock control plan

From 1 mth (200 tons)

To 0.1 mth (20 tons)

Increase Yield

1st : 36% to 41% 2nd : 41% to 45%

3rd : 45% to 49% Ref : Local Mill at 35%

TOYOTA Business Introduction

TOYOTA Innovation

TOYOTA Capability

• TPS

• Kaizen

• Customer First

TOYOTA Social Innovation project

Transfer

To Thai

People

• Experience to Society

TOYOTA Business Introduction

TOYOTA - Social Innovation

• Target group: Social Business, OTOP

• Principle: 1. Transfer TOYOTA innovation to social business, OTOP

2. Practice by TPS experience person until can do by themselve

3. Health check to keep sustainability

Understandใจ

ใส่ใจ

ถูกใจ

• Method:

Summary SI Project

Know

Know problem In every process Under TPS concept

See problem and countermeasure

Can do by themself

See Can do Heart Understand Concentration Customer First

Pre-Kaizen 3 month Kaizen 6-12 month Sustainability 3 month

• Evaluation KPI Benefit

1. Productivity Gain revenue

2. Quality control Reduce cost

3. Delay on delivery Be Professional

4. Stock management Gain profit

5. Work in process Gain profit

Project Expansion

TOYOTA - Social Innovation

2

5 10

20

40

77

Pilot site Nationwide

14 15 16 17 18 19 yr

SI Site

1. Develop 5 SI sites to be learning center cover all regions

2. Expand Si site to all province in 2019

1. Hart OTOP Polo shirt (Kanchanaburi)

3. Cotton bag SK group (Chiangmai)

4. Rice cracker (Khonkaen)

5. Coconut shell charcoal (Prachuab)

2. Toey Panun handicraft (Krabi)

TOYOTA - Social Innovation

Social impact

Economic People capability

Social business Quality of life

• Strengthen country economic from grassroots

• Reduced economic inequality

• Social Business survive

• Distribute income to local people

• Time with family

• Income and Job security

• Young gen. do not leave their hometown

• Create Kaizen mindset Team working

• Opportunity to learn from professional

Kaizen Spirit

Co

mm

un

ity

Co

un

try

THANK YOU

TOYOTA - Social Innovation Project Sustainable Development Department

Tel: 02-386-1000

Q & A