Integrated M. S. Project - Grzesik, Stawowczyk

Integrated management systems Project Toyota Motor Manufacturing Poland (TMMP)

Lecturer: Joanna Helman, M. Sc.

Authors: Krzysztof Grzesik, 224433 Jakub Stawowczyk, 177653 Wrocław 2016

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Table of contents 1.

Company description ............................................................................................................................................. 3 1.1

Characteristic of an organization .................................................................................................................. 3

a)

Name of the organization ............................................................................................................................. 3

b)

Trade and region of activity .......................................................................................................................... 4

c)

History of the company ..................................................................................................................................... 4 d)

Organizational structure of the company and description of departments ................................................. 5

e)

Mission, aims and objectives of the company .............................................................................................. 5

f)

Restrictions ................................................................................................................................................... 7

g)

Critical success factors .................................................................................................................................. 7

1.2

Description of how enterprise operates ....................................................................................................... 8

1.3

Characteristics of suppliers and customers .................................................................................................. 9

1.4

The system boundaries ................................................................................................................................. 9

2.

Identifying Business Functions ............................................................................................................................. 10

3.

Business plan – Business Model Canvas .............................................................................................................. 11

4.

Constructing a Function Hierarchy ...................................................................................................................... 13

5.

Function Dependency + Detailed Function Dependency Diagram ...................................................................... 14

6.

Entity–relationship model .................................................................................................................................... 15

7.

Competence matrix .............................................................................................................................................. 16

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1. Company description

1.1 Characteristic of an organization a) Name of the organization Toyota Motor Manufacturing Poland (TMMP) This company consists of factory located in Poland. Precise location is Walbrzych, Dolnoslaskie Voivodeship, south – west of Poland. Small distance to Western Europe and relatively low working cost makes this region popular among foreign and polish investors. Factory in Walbrzych has share capital approximately 1 billion polish zloty. Chairman of Toyota Motor Poland is Carl Klemm. Surface of factory terrain is 500 000 m2, plant surface is 100 000 m2. In Walbrzych Toyota is able to produce parts for other Toyota assembly hall in a few European countries and in South Africa. Production capability is above 700 thousand of gearboxes and almost 400 thousands engines per year. Employment – 1600 people. Toyota Motor Manufacturing Poland came into being in 1999, an production started in 2002.

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b) Trade and region of activity

Region of activity – factories where Toyota Walbrzych sells products:        

Toyota Motor Maufacturing France / Toyota Yaris Toyota Motor United Kingdom / Toyota Aygo, Toyota Avensis Toyota Motor Manufacturing Poland / gearboxes and 1,0 litre engines Toyota Motor Industries Poland / Diesel engines Toyota Motor Maufacturing Russia / Toyota Camry Toyota Motor Maufacturing Turkey / Toyota Auris, Toyota Verso Toyota Peugeot Citroen Automobile Czech / Toyota Aygo, Citroen C1, Peugeot 107 Toyota Caetano Portugal / Toyota Dyna, Toyota Hiace

Trade:  



1,0 litre engine produced for Toyota Aygo, Peugeot 108, Citroen C1 assembled in TPSA in Czech Republic and Toyota Yaris assembled in TMMF in France Manual gearbox to engines 1,0-1,8 litre produced for: Toyota Auris assembled in TMUK in United Kingdom; Toyota Corolla assembled is TSAM in South Africa; Toyota Corolla and Toyota Verso assembled in TMMT in Turkey; Toyota Avensis assembled in TMUK in United Kingdom; Toyota Yaris for TMMF in France; Toyota Aygo, Peugeot 107 and Citroen C1 assembled in TPSA in Czech Republic Half-manual gearbox M-MT, produced for: Toyota Aygo, Peugeot 108 and Citroen C1 assembled in TPSA in Czech Republic

c)

History of the company



In November 1999 emerged common decision of polish Prime Minister Jerzy Buzek and chairman of Toyota Motor Company Fuijo Cho. They both officially announced the beginning of construction of plant which could produce gearboxes for European assembly hall of Toyota. Chairman of factory in Walbrzych became Toshitaka Kogeyama.

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      

In September 2001 in Walbrzych’s factory was produced first piece of gearbox. Till the production moment for the needs of European assembly plants gearboxes had been undergone number of tests. In march 2002 Toyota announced plans of increasing investments of the concern of the factory in Walbrzych. June 2002 – celebration of opening the factory October 2003 – implementation of Environmental Management System January 2005 – start of production engines and half-automatic gearboxes August 2006 – announcement of decision of building new hall for assembly of gearboxes September 2008 – start of production 6 speed transmission

d) Organizational structure of the company and description of departments Main departments of Toyota Motor Manufacturing Poland.

e) Mission, aims and objectives of the company Mission: 

Celebrating the language and spirit of the law of each country and take an open and fair corporate activities so that the company has become a good citizen of the world.

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  

Respect the culture and customs of each country and the participation and contribution to its economic and social development through our business for the benefit of local communities. Creating a corporate culture that encourages individual creativity and promotes the value of teamwork, while creating mutual trust and respect between employees and management. Aiming to develop in harmony with the global community through innovative management methods.

Aims:       

Production and delivery of safety product. Constantly taking action to ensure clean and safe products and improve the quality of life through all of our activities. Create and develop advanced technologies and providing products and services of the highest quality which meet the needs of customers around the world. Co-operation with business partners in research and creation to achieve stable, long-term development and achieve mutual benefits, while opening up to new partnerships. Safe and stable workplace. Personal development of workers. Efficient order process.

Objectives: Toyota Production System (TPS) – manufacturing products of the highest quality at the lowest possible cost to the minimization of unnecessary processes related to the storage of parts and products (Muda) and in a timely manner, that is, when a product is needed. (Just-In-Time). Fundaments of TPS: Standard work - organizes and determines the worker's activities so as to produce the highest quality products in an efficient and secure (through the sequence of steps). Kaizen - involvement of employees in the process of continuous improvement of the production process is the second standardized work alongside the foundation of TPS. Such an organization work is the basis for the two pillars of this philosophy of production management - systems Just-in-time and Jidoka.

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Definitions: Muda - lived waste that all aspects of the production process, whether it is a specific object or effect of which do not add value to the finished product, and only increase their own costs. Just-In-Time – constant flow of material, ‘pulled’ by another processes for manufacturing of the product in the shortest possible time (Lead Time) in that way to meet customer requirements. Processes must add value to manufacturing of the product. Just-In-Time is a system of work where goods are produced and transported only when it is needed and only in required quantity. Jidoka - device and / or person automatically stopping the production process in the event of any irregularities.

f)

Restrictions

a) b) c) d) e) f) g)

Foreign language barriers (Polish - Japanese - English) Needs of relocation of workers Provincial location of the factory Fierce competition on the European automotive market Difficulties in keeping good workers in Toyota company Huge competition in acquiring well qualified workers High prices of Toyota products in comparison to another brands

g) Critical success factors 

Cooperation with Japanese factories of Toyota in exchanging people and technical knowledge. It could be conducted by engineers exchange programs, while engineers and people in charge had chance to visit 7





Japanese plants, learn and practice. It could be chance to enhance possibility and technical knowledge in TMMP Expansion of TMMP products to other brands of cars on Europe and world. Currently Toyota in Walbrzych provide its products solely to other Toyota factories. It would be possible while Toyota in Walbrzych made its production more flexible and changed appearance which suits to customers. Keeping high quality of products should be maintained. Focusing on Toyota Production System and making it more efficient and conducted. Crucial thing for Toyota is to lower prices of products while keeping high quality. Lowering production costs and not changing prices of products could enable to spend more money for investment. Additional money could be used for Research & Development. Another option is building bigger factory – there is enough space in Toyota terrain in Walbrzych.

1.2 Description of how enterprise operates Every product is assigned to specified customer which we mentioned in point 1.2. (product – customer) Quantity of series is assumed for specific period of time for each customer. Usually it is in half year.

Order (product and quantity)

TMMP answer to them and specify period of production

Production

Packing and sending

Final complaint

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1.3 Characteristics of suppliers and customers

We have signed long – term contract with suppliers. Our suppliers are local production plants of mechanical parts and chemical stuff. Our contracts are signed with only the leader surrounding companies. They provide us these elements on their own (they have signed contracts with transport providers). We strive for negotiation prices before signature a new contract. We sign contracts approximately every 2 years. After ending a contract we make review on the local market. In case of turning on new producer of raw material we try to negotiate contract with them and compare it with present provider. Before ending of contract we take a overlook in current producers of raw material with we haven’t signed contract yet.

1.4 The system boundaries 1) Technologies  

Waste management Energy

Energy saving today becomes the basis for environmentally friendly approach not only to households but above all, even the largest manufacturing plants. Placed before TMMP targets, trigger many activities, whose common denominator becomes the reduction of energy consumption. Toyota Plant in Walbrzych also in this area is trying to compete with the best. 



Air protection Air protection is very important element largely due to the effort s of the whole region on the way to improving the quality of the atmosphere, which for many years was subject to intense industry influence. Water and sewage Toyota factory in Walbrzych consumes more than 75 000 m3 of water per year, drawing it from the municipal water main. Because the minimization of water consumption is one of the objectives of our environmental policy is extremely important to your business becomes eco-friendly water management. In pursuing her TMMP implements and constantly looking for solutions for more efficient use of water and its recovery from other sources, eg. Liquid waste.

2) Local actions   

Safe driver Green Walbrzych Full Winter

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2. Identifying Business Functions Code of ethics According to the indications ‘Fundamental Principles of Toyota’ and ‘Contribution to Sustainable development’ , all employees of Toyota obliged to observe the letter and spirit of the laws and regulations of regional, national and international, to proceed in accordance with the principles of modesty, honesty and ethics. These grounds were used Toyota to create a Code of Ethics. Safe and stable workplace Ensuring safe working conditions and guarantee stable employment is a priority of our company. We all feel responsible for the safety in the workplace, which is why we pay special attention to the identification of hazards and preventive measures. Confirmation of this is determined by our goal - "Zero accidents in all production departments TMMP". We make sure that each employee was provided with adequate protective clothing and the necessary personal protective equipment in an amount that will provide comfort. All labour standards in our production facilities comply with safety regulations.

Development of workers We offer our employees the opportunity for professional and personal compliance with the adopted Toyota values such as respect for colleagues, continuous improvement and teamwork. Workshops and career development. Quality meeting and KAIZEN Rotational work system Culture Health and physical activity

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3. Business plan – Business Model Canvas 1) Key Partners a)

Key partners  Toyota Motor Europe  Toyota Motor Industries Poland b) Key Suppliers  Mainly Local Suppliers 2) Key activities  Relations with our customers are correct. We provide our products to Toyota factories in Europe and South Africa. Our aim is to start long-term cooperation with our business partners, providers and suppliers. TMMP tries to cooperate with business partners in the best way, that means with lowest price, fastest time of delivery of products.  If it is possible TMMP has signed contracts with local suppliers.  Production  Quality Assessment  Market Research 3) Key resources  Blue – collar workers  White – collar workers  Machinery  Time  Budget  Production area  Components  Patents

4) Value prepositions  In line with our philosophy of "Customer First" we are committed to providing safe, high-quality gearboxes, motors and other products and services. To meet expectations of customers we guarantee stability and timeliness of our deliveries.  Our cooperation with business partners is based on a long-term relationship in which mutual trust is built conditions to ensure the development of both parties to cooperate. While searching for new partners, we are always open to offers of all suppliers ensuring fair evaluation of bids and the free competition of candidates.  We meet customers need. We provide high quality products in low prices. TMMP enables customers to build whole functional Toyota Car.  Engines  Half-automatic gearbox 11



Manual gearbox

5) Customer relationship 

TMMP keeps good and continuous relationship with customers. Our customers are stable. Customers has big influence on our Business Model – they decide which products we manufacture and sell.

6) Channels   

Signing contract Preliminary call center Face – to – face conversations

7) Customer segments 

Automotive Industry

8) Cost structure     

Manufacturing Raw material Energy Human Resources Marketing

9) Revenue stream 

Selling of the manufactured elements

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4. Constructing a Function Hierarchy

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5. Function Dependency + Detailed Function Dependency Diagram

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6. Entity–relationship model (Model done in Microsoft Visio 2013 Professional– UML Class – aggregation function)

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7. Competence matrix

Boss F1.1

Man. of

Dev.

Gear.

Eng.

Qual.

Sales

Dept

Dept

Dept

Dept

Dept

Cen.

E

E

E

E

A

F1.1.1

A

F1.1.1.1 F1.1.1.2

E

F1.1.1.3 F1.1.2.1

A

F1.1.2.1.1

J

F1.1.2.1.2

E

F.1.2

A

F.1.2.1

A

F1.2.1.1

T

T

F1.2.1.2

J

J

F1.2.1.3

E

E

F1.3

A

F1.3.1

A

F1.3.1.1

J

F1.3.1.2

I

F.1.3.1.3

E

F1.3

A

F1.3.1

A

F1.3.1.1

I

I

F1.3.1.2

I

I

F1.3.1.3

E

E

F1.3.2

A

F1.3.2.1 F1.3.2.2 F1.4 F1.4.1 F1.4.1.1

HR Office

I

T

T

T

E

E

T

A A I 16

Boss

Man. of

Dev.

Gear.

Eng.

Qual.

Sales

Dept

Dept

Dept

Dept

Dept

Cen.

F1.4.1.2 F1.4.2

HR Office T

A

F1.4.2.1

I

F1.4.2.2

T

Man. Of Dept – Manager of Department Dev. Dept – Development Department Gear. Dept – Gearbox Department Eng. Dept – Engineering Department Qual. Dept – Quality Department Sales Cen. – Sales Center

Activities: A – approval of activity E – execution of activity I – ideas and improvement of activity J – control and judgement of activity T – conducting of testing W – assurance of proper things related to work

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