Toyota

1
Toyota

• Glen Halter
• Jesse Chando
• Matt Longo
• Tiffany Swoffard

2
ToyotaThe Birth of the Prius

• May 2, 2006

3
Toyota Overview

• History of the Toyota Production System
• Toyota methodology and business impacts
• What is a hybrid
• Prius, efficient energy impacts and implications
• Alternatives to hybrids
• Toyota hybrid competition

4
History of the Toyota Production System

• Principles born in America
• Henry Ford
• W. Edwards Deming
• Joseph Juran
• Birth of Toyota Automatic loom maker
• Cars in 30s
• World War II

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Heart of the Toyota Production System

• Relentless pursuit of eliminating waste (Muda)
  7 primary classifications
• Defects
• Overproduction
• Transportation
• Waiting
• Inventory
• Motion
• Processing itself

6
Value Stream Mapping One of the Tools

• Who is the customer?
• What is the current state? Go to the workplace
  (gemba) and see for yourself.
• What resources are being consumed in each step
  (space, movement, time, etc.).
• What steps are really value added? - Does the
  customer need these steps?
• Make the map and summarize the resources being
  used.
• Envision the future state.
• Examine alternatives a propose an action plan.
• Are you in alignment with the customer?

7
Toyota Business Impacts

• Internal to Toyota
• Continuous Improvement (kaizen)
• Innovation Social, environment, economy, RD
• Treatment of suppliers
• Management system copied by manufacturers and now
  service industry
• Kaizen consciousness must be on the mindset of
  all employees Nampachi Hayashi (Toyota)
• An improvement not perfectly done today is better
  than the perfect solution done late (ASQ)
• The biggest problem is thinking you are okay
  Susumu Uchikawa (Kanto)

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What is a hybrid?

• Gas Engine
• Electric motor
• Prius

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Impacts Implications

• Tax and other incentives
• Federal
• State
• Corporate
• Customer discounts and perks

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Impacts Implications contd

• Safety
• Voltage issues
• Aspects of Prius

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Impacts Implications contd

• Oil Dependency
• CAFÉ standards
• National Security

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Impacts Implications contd

• Business
• General Electric initiative
• Increase investment to 1.5 billion by 2010
• Johnson Controls
• Lithium ion battery
• Apollo Alliance
• 300 billion investment over 10 years
• 3 million new jobs

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Impacts Implications contd

• Equator Principles
• Semi-conductor industry
• Fairchild Semi-conductor International (FCS)
• Infineon Technologies (IFX)
• ON Semi-conductor Corp. (ONNN)
• IXYS (SYXI)

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Impacts Implications contd

• Environment -
• Global Warming
• Glacier melting
• Glacier National Park
• Greenland
• Hybrid battery a threat?

15
Impacts Implications contd
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Impacts Implications contd

• What if scenario - 1 year driving Prius vs. 25
  mpg conventional vehicle
• Assumptions/facts
• 12,000 miles driven in a year
• 3 per gallon of gasoline
• 40 gallons of oil per barrel
• 20 lbs. of CO2 emitted per gallon of gasoline
• 200 million cars on the road in the U.S.

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Impacts Implications contd

• Results of 1 Prius vs. 1 conventional car
• Upwards of 800 in fuel costs saved
• 261 gallons of fuel conserved
• What if 25 million (12.5) of those cars were
  hybrids
• 6.5 billion gallons of fuel conserved
• 19.6 billion in fuel costs saved
• 163 million barrels of oil conserved
• 65 million tons of CO2 not emitted

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Impacts Implications contd
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Alternative Fuel Vehicles

• Flex-Fuel
• Bi-Fuel
• Electric
• Fuel Cell
• Diesel

20
Competition

• Honda
• - Insight
• -Civic
• -Accord

21
Competition

• Hyundai
• Nissan
• - Conditional
• Zap

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Conclusion

• Second largest producer of automobiles in The
  United States
• Development of a business model envied by both
  manufacturers and service industries
• Fortune Magazine 9th most admired company in
  America (first non-US company to do so)