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Toyota Environmental Sustainablity Report

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Tailored quality improvement for sustainable growth<br />

From supplier selection until the end of the production line, we have intensifi ed the work we do with our suppliers and<br />

developed a cross-divisional team to continuously improve our products.<br />

1<br />

2<br />

1<br />

31<br />

2<br />

2<br />

3<br />

Intensive SE<br />

SE<br />

Sourcing Tool launch<br />

The quality process starts at the design phase before any<br />

parts have been produced. During the sourcing stage,<br />

<strong>Toyota</strong> R&D work in partnership with the suppliers’ R&D<br />

to ensure built-in quality happens at the earliest stage of<br />

the design process. This is referred to as simultaneous<br />

engineering (SE).<br />

<strong>Toyota</strong> makes a risk assessment against design and<br />

process factors. The aim is to focus our engineering<br />

resources where the quality benefi t is greatest through<br />

suppliers parts tracking teams (SPTT).<br />

3 <strong>Toyota</strong> shares best practice with its’ suppliers through the<br />

TEAM supplier association, which has expanded to 70<br />

suppliers across our European supply base with a shared<br />

goal of achieving world class quality.<br />

As a European OEM, we continue to invest in people and<br />

processes across Europe to combine <strong>Toyota</strong>’s production<br />

process experience with European automotive innovation<br />

and knowledge.<br />

Working Together with Suppliers on Risk Management<br />

The experiences of the global fi nancial crisis taught us lessons<br />

that have enabled <strong>Toyota</strong> and our suppliers to work together<br />

in a mutually supportive manner.<br />

On March 18 th 2011, the Annual Business Meeting (ABM) hosted<br />

some 350 suppliers at our Zaventem (Brussels, Belgium) R&D site.<br />

Following the events of March 11th, the fi nal preparations of this<br />

meeting were greatly challenged requiring crucial revisions. The scale<br />

of the severe parts supply disruptions was carefully considered.<br />

Risk Management Model<br />

Problem solving profile<br />

Predict<br />

Intensive SPTT<br />

Data gathering through multi-stakeholder<br />

network<br />

Risk assessment<br />

1<br />

Normal SPTT<br />

Light SPTT<br />

SOP<br />

SOP-Start of Production<br />

2<br />

3<br />

Time<br />

During the ABM, key business targets and achievements were<br />

exchanged, complemented with messages of deepest sympathy<br />

to the Japanese people. We all committed to working<br />

together, with the greatest respect and honesty, to ensure<br />

recovery in the best conditions. The purchasing group participated<br />

in a cross-company taskforce to support the established<br />

process of predicting, monitoring and managing risk.<br />

The strong partnership with our European suppliers enabled a<br />

detailed mapping of our supply chain and allowed us to accurately<br />

predict possible parts production problems for our European<br />

manufacturing sites. We communicated regularly with our key<br />

stakeholders, and provided new information and updates to the<br />

EMCs, <strong>Toyota</strong>’s senior management and other stakeholders<br />

three times a day. Many countermeasures were implemented to<br />

overcome the impact of the natural disaster, all aimed at returning<br />

to normal production as soon as possible to satisfy our customers’<br />

demands for <strong>Toyota</strong> cars. It has been an extremely intensive task,<br />

which could not have been completed without the full support of<br />

our business partners. We wish to thank our business partners<br />

for their hard work and collaborative efforts.<br />

Monitor Cure (if risk occurs)<br />

Risk monitoring (tracking)<br />

Develop contingency plan<br />

PROACTIVE PLANNING<br />

Purchasing Task Force (L-R) : Tan Tasezer, Guillaume<br />

Jacques, Laurent Eugene, Oscar Sanchez-Lopez<br />

Deploy contingency plan<br />

Solve the problem<br />

Manage back to normal<br />

<strong>Toyota</strong> European Sustainability <strong>Report</strong> 2011 I Social Performance<br />

55

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