Chris Nielsen Senior Vice President Toyota Motor Engineering & Mfg. North America, Inc. OESA Annual Outlook Conference Tuesday, November 11, 2014
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1 Chris Nielsen Senior Vice President Toyota Motor Engineering & Mfg. North America, Inc. OESA Annual Outlook Conference Tuesday, November 11, 2014
2
3 Presentation Overview: One Toyota Always better cars
4
5 Current Condition
6 Current Challenges: Separate nature of headquarters slows decision-making process and time to market Communication and collaboration are difficult and time consuming Too much time to make decisions and respond to issues Need to invest in engineering and design to strengthen business and drive growth
7 Becoming One Toyota New N.A. headquarters in Plano, TX Unifying 4 separate HQs into a single campus Direct Purchasing relocating to York Township, MI Production Engineering relocating to Georgetown, KY
8 Goals: One Toyota Respond to changes in the market faster and improve our competitive advantage Improve collaboration and break down silos between functions Improve opportunities to develop talent across the company More efficiently and effectively utilize resources Ultimately build better, safer vehicles for our customers
9 Where We re Going Common Culture Organizational Design Supplier Collaboration
10 Common Culture Structured process to achieve unified culture, based on our common foundation of The Toyota Way
11 Organizational Design Deliberative, systematic approach to designing new organization Leadership streamlining integrating & nonintegrated functions
12 Supplier Collaboration Location Optimization Stronger collaboration between: Design Direct Purchasing Suppliers
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14 ALWAYS BETTER CARS
15 Always Better Cars: Self-Reliant North American Chief Engineers
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17 Tundra Tiger Team
18 Always Better Cars: Voice of the Customer Repair cost of bumper is too high Bumper changed from 1 piece chrome steel, to 3 piece modular construction New modular bumpers improve grade strategy and reduce end user repair cost Rear end cap structure incorporates load bearing support, Blind Spot Monitor (BSM) and parking sensors
19 Always Better Cars: Voice of the Customer I cannot carry large items in the cabin Change to Tip-Up Rear Seat: Load floor height ~11 inches lower ~262 in 2 added storage 2013 TUNDRA 2014TUNDRA
20 2015 TOYOTA CAMRY
21 HOLDER SLIDE FOR CAMRY VIDEO ON-SITE A/V COMPANY HAS CONFIRMED IT S READY
22 2015 TOYOTA CAMRY
23 Toyota New Global Architecture TNGA = Structural reform at all stages of car development Always Better Cars The TNGA car we aim to build Safety/Peace of Mind Appealing Design Fun to Drive Basic Vehicle Performance/Personality Driving performance Fuel consumption, Safety Smart Design Total optimization, Series, Commonization, RR-CI
24 Regional optimization Commonization & Differentiation North America China Central/South America Europe Southeast Asia Japan Differentiate for customer tastes in each region Fundamentals Platform Unit Develop good products & Develop good commonize across regions products & commonize across regions Adopt standard materials and processes
25 RR-CI Based On TNGA Enhance RR-CI (commodity based initiative) based on TNGA Implement aggressive proposals towards smart design and develop part scenarios Key focus of proposals 1. Front-loading of activities Enough lead time for benchmarking and proposals 2. Total optimization Proposals including related & surrounding parts 3. Simple Flexible Proposals for design optimization & universal structures across models, regions and time frames RR-CI: Ryohin (Quality) Renka (Low Price) Cost Innovation
26 Always Better Cars: Monozukuri Optimize Entire Value Stream Expanding Collaborative Activities to Implement Monozukuri
27 Always Better Cars: Monozukuri Center Link Commodity and Vehicle Monozukuri to create new value
28
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