Toyota Motors Resource Integration Techniques

Resource Integration Technique Used: Sequence technique

Table of Contents

Problem Description and Research Question

Executive Summary

Introduction

Application of Resource Integration Technique

Analysis of Results, Limitations and Recommendations

Conclusion

References

Problem Description and Research Question

 “How can Toyota reduce its idle time of resources in their Prius Hybrid models” ?

Toyota is known as the pioneer in Japanese automobile production and development. Toyota motor ranks as the second largest company and automobile manufacturers in the world as of 2018. https://brandirectory.com/rankings/automobiles-100-2018. This motor company is the leader of sales in electric and hybrid automobiles. Toyota produces brands and parts of its automobiles under the name Toyota.

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A Hybrid car uses more than one means of propulsion , which means it combines diesel and petrol engine with an electric motor. In the 21^st century, the demand for hybrid cars are increasing and it is wise to consider hybrid vehicles because it consume less fuel or in the other way rising petrol cost and emits less carbon dioxide when compared to petrol and diesel-engine vehicles (“Toyota Europe,” 2017). Toyota pursued the Hybrid technology due to it provide increased fuel economy, cleaner emissions, reduced fuel consumption, and improved performance in vehicle without any changes in the infrastructure. Toyota has many benefits for hybrid vehicles among that is the batteries never need to be plugged in , they are self-charging hybrids. The hybrid technology was introduced to the world in 1997, with pioneering Prius The hybrid cars make the lifestyle efficient , responsive and stylish (“Toyota Europe,” 2017).According to Automobile Association of America, around 30 million Americans preferred buying electric hybrid cars as their upcoming vehicle. The main reason behind the preference towards hybrid cars is that cost concerned and environment concerned (Ferris, 2017, p. 1).               

When Hybrid cars was introduced in United states in the year 2000,Toyota increased its revenue and sales. Prius was the top selling hybrid cars in United states. On June 2007, Toyota Motor Corporation announced that 1,047,000 units were sold worldwide. The success was such that they had customers waiting for hybrid cars to be produced. Since the demand in hybrid cars has increased, Toyota has doubled their production in United States. There are many other hybrid cars available , among that Toyota Prius stands out from all other hybrids and benefits from the first mover advantage.

https://books.google.co.nz/books?id=iT1ejcnxNhEC&pg=PA162&dq=toyota+hybrid+cars&hl=en&sa=X&ved=0ahUKEwiPjIKo0IXiAhXTF3IKHZU4CuQQ6AEIKDAA#v=onepage&q=toyota%20hybrid%20cars&f=false

Toyota aims to achieve 50% hybrid sales in Europe by 2020 (“Toyota Europe,” 2017).

Executive Summary

Toyota is the second largest automobile manufacturers in the world and this company is the leader of sales in hybrid and electric vehicles. The main purpose of this report is to find how Toyota can meet the increase in demand for the hybrid model without comprising the quality. Toyota implies changes of strategy in the hybrid market. Toyota introduced strong innovations in the car engine technology. With this radical innovations the company can focus on the large-scale market and meet the increasing concerns about the global warming and limited energy resources(1).The business strategy of customer relation management is to build the concept of being customer centric. The main goal of Customer relation management is to optimize the revenue, quality, reduce the dependence on fossil fuels, decrease the carbon imprint on the environment results in customer satisfaction. The companies car plantation is linked to its sales offices, so that it react according to the real time to changes in demand(2).The purpose of this case study was to apply the techniques of resource integration to improve the utility of time during the vehicle production. The main aim is to increase the in demand of hybrid vehicles which can lead to more makespan time during production(“Toyota Europe,” 2017).This can be achieved by applying the sequencing technique of resource integration. By using the sequencing method we can reduce the makespan of the hybrid vehicles by using the resources appropriately especially machines at production. As being a vehicle for moderate class family, Toyota Prius has to meet its demand for 2019 and increase the rate of production (“Toyota Europe,” 2017).

The goal of sequencing technique is to find out an optimum sequence of task in order to optimise the output of cost and time involved in the process. Time is perishable resource for hybrid vehicles, but has priority on cost and time. The jobs are processed through limited numbers of machines or operations. The sequencing technique helps to reduce the total time spent between the start of the job in the first machine and finish the last task on the last machine. The sequencing method helps to determine how Toyota can meet the customer demand for Prius Hybrid vehicles by identifying the optimum production job sequence.

1.2.https://books.google.co.nz/books?id=iT1ejcnxNhEC&pg=PA162&dq=toyota+hybrid+cars&hl=en&sa=X&ved=0ahUKEwiPjIKo0IXiAhXTF3IKHZU4CuQQ6AEIKDAA#v=onepage&q=toyota%20hybrid%20cars&f=false

Introduction

Industry Background

A manufacturer is a company that uses raw materials and employee the labour hours to create finished goods. Manufacturers mainly focus on creating products and finishes goods. They commonly make goods on a large scale,using raw materials and collected and finally distributed to private customers or retailers. The success of an automobile industry depends on meeting the demand of consumers and market, covering the cost and making profit, creating a product that is actually interested in purchasing. Toyota Motor Corporation was the largest automobile manufacturers for the first time in 2008 in the world. This industry has become the largest purchaser of many products, such as steel. In 21^st century, Toyota company experienced a significant growth, with many innovations. The first mass produced powered vehicle was Prius hybrid. The way of making vehicle is defined by Toyota Production system. The manufacturing philosophy of Toyota is to aim in eliminating waste and receive the better possible efficiency, which is also known as “just in time” or “lean manufacturing system” (“Toyota Production,” n.d.).Toyota Production system can quickly provide vehicles of sound quality and efficiently , at a time that’s completely satisfies customer’s needs without any delay.

Organisational Background

On 27^th August 1937, the organisation “Toyota “was incorporated and conducts business in the automotive industry (1). The company sells its vehicle around 190 countries and regions. The automobile markets of Toyota are Japan, North America, Europe and Asia. The organisations automotive segment includes manufacture, assembly design, sale of passenger vehicle, commercial vehicle and minivans. The company manufacturers automobile parts, accessories and components for sale and own use. Toyota production system was established based on many years of continuous improvements, with the objective of fast and efficient way giving service to the customers based on the vehicle orders (“Toyota Production,” n.d.).

The issues faced by the automotive world at the time anchored the efforts on two main keys:

• Environmental preservation and
• Natural resource conservation

Considering these two facts, Toyota launched many hybrid vehicles. Prius was the first hybrid car and was known as the hybrid leader. Hybrid cars are consumer oriented, since it is a solution to increasing air pollution by decreasing the amount of carbon-rich fuel that is consumed in each individual vehicles (3). Toyota stated hybrid cars as “Easy on your wallet and the environment”. Toyota has to think about increasing the production capacity of the different resources to satisfy the customers demand (“Benefits of Driving,” n.d.).               

As a part of fulfilling customers orders quickly, within the short period of time adhering to the following:

• In order to increase the profit, reduce manufacturing cost.
• Each individual steps  in manufacturing system should be optimized
• Meet customer demanded product and without defect.
• Have a reliable and strong relationship with suppliers (Lean Manufacturing, 2007)

Application of Resource Integration Technique

In this case study, the resource integration technique used is sequencing method. To achieve these objectives we use sequencing technique to improve the complete productivity of Toyota.

Sequencing method is an selection of an appropriate orders in which the total number of jobs are assigned to a finite number of service facilities, in order to optimise the outputs in terms of cost , profit and time.Sequencing technique is used in Toyota hybrid vehicles, is to provide vehicles to the customers at the earliest when they order for it.This technique deals with ordering or sequencing of jobs waiting to be processed at workcenter (Kolli. S 2000). Common sequencing rules to be followed for the overall productivity of Toyota are as below:

• FCFS – First come First served: Jobs are processed according to the orders of new vehicles.
• SPT – Shortest Processing Time: Jobs with the shortest processing time is scheduled first.
• EDD – Earliest Due date: According to the due date jobs are sequenced.
• CR – Critical Ratio: Until the due date, ratio of processing time of the job and remaining time is computed.

In order to progress and complete the project work, activities from different work packages will need to be sequenced.Thus creates a logical relationship between the activities known as network logic and consists of 4 types.

• Finish to start, Finish to Finish, Start to Start, Start to Finish

For a specific group of jobs many schedules are feasible in manufacturing process. The most important sequence schedule Toyota consider is keeping a constant speed in consuming each part(1). To understand the sequencing method, it is important to define several notations and values.

• Number of machines: Number of facilities tha a job must pass through before it is finished.
• Processing time (t_ij): Time required for a job on each machine
• Processing order; Order in which machine required to complete the job
• Idle time (I_ij): Time for which machine does not have a job to process
• Total Elapsed Time (T): Time interval between starting first job and finishing the last job
• No Passing Rule:Maintaining the order in which jobs are to be processed  on given machines.

The manufacturing process of Toyota Hybris Prius consists of three machine -M1,M2,M3 and five major task to complete the manufacturing process.

Five task are: Engine Plant , Press shop, Body shell ready for paint, Assembly and Quality Assurance.

Thr processing time of each job is assumed in hours.

In order to identify and optimum solution, we must satisfy both the below conditions :

Condition 1:Idle time on machine M1 as the maximum processing time on machine M2.

i.e min t_1j ≥ max t_2j  j = 1, 2,….,n

Condition 2 : Idle time on machine M3 as the maximum processing time on machine M2.

i.e min t_3j ≥ max t_2j j = 1, 2,….,n

The minimum time on M1(8 hrs) ≥ maximum time on M2 (12 hrs) [satisfied]

The minimum time on M3 (5 hrs) ≤ maximum time on M2 (12 hrs) [not satisfied]

As per the sequencing technique the first condition is satisfied to find out the optimum solution.

Inorder to solve this solution we have to generate 2 fictitious machine M4 & M5 with the following processing time.

Processing time on M4 = M1 + M2

Processing time on M5 = M2 + M3

Processing times for new machines are:

The optimal sequence obtained for M4 & M5 fictitious machines:

The total minimum elapsed time for M1,M2 & M3 is given below:

The total minimum elapsed time for the three machines is 82 hrs

Idle time for Machine 1 = (71-65) + (80-71) =18 hrs

Idle time for Machine 2 = 15 + (28-24) + (42-38) + (53-50) + (65-60) = 31 hrs

Idle time for Machine 3= 24 + (38-36) + (50-46) + (71-68) = 33 hrs

1.https://books.google.co.nz/books?id=7WfSBwAAQBAJ&pg=PA254&dq=toyota+sequence+problem&hl=en&sa=X&ved=0ahUKEwidlY_xrofiAhUDfisKHbcKAhMQ6AEIKDAA#v=onepage&q=toyota%20sequence%20problem&f=false

Analysis of Results, Limitations and Recommendations

Sequencing Technique is one of the best method used in resource integration management to determine more optimum sequence of jobs at their production with minimising the idle time .

By using some assumed data it is proved in this case study that , Toyota could determine the optimum sequence of jobs at their production. During the production process, machines are scheduled accordingly for a particular group of jobs. Toyota can utilize this technique in their manufacturing line to minimise the overall elapsed time and reduce their idle time of each machines. Thus results that efficiency can be increased utilizing this technique and time in the manufacturing line can be minimised.

It is found from the calculations that , idle time were reduced for each machine and the minimum time elapsed for the three machines was 82 hours, if Toyota uses optimum sequence tasks. This technique is used to arrange variety machines or process for a particular group of job to finish the procedures within the provided time.

Original sequence time elapsed

Table

The total minimum elapsed time for the 3 machines = 81 hrs

Idle time for machine 1 = (66-57) + (81-66) = 9+15 = 24 hrs

Idle time for machine 2 = 7+ (21-11) + (36-26) + (44-41) + (57-50) + (81-66) = 52 hrs

Idle time for machine 3 = 11 + (26-20) + (41-39) + (50-55) + (66-61) = 19hrs

Table

Idle times for each machines

Table

The idle time of resources at production is the main problem which is facing by the organisation Toyota and thus the makespan of Prius Hybris is getting more delayed. With the reduction of less elapsed time to 82 hours, and the less idle time of machine at Toyota production can save the makespan time for the production of Hybrid Prius.

By comparing above solutions it can be concluded that total elapsed time and idle time of machines of optimal job sequence is lower than original sequence.

Limitations

The limitations of the sequence technique is that the value the sequence approaches number of items processed through a finite number of machines. The scope behind taking this technique is considering breakdown of machine, utilisations of time by labours for operating the same process are not considered. Lack of necessary spare parts, power failures, machine which perform individually, delay in providing vehicle order details, , time usage in manufacturing, are main factors which cause change in calculating the time and also these are considered during the calculation of sequence method.

Recommendations

From the above results , it is better that if Toyota Hybrid apply scheduling the sequence technique in their manufacturing line ,so that they can reduce the complete elapsed time and idle time for each machines under optimum sequence than the original sequence. Moreover the data used are fictitious , still if Toyota uses actual data for finding the solution this method would be the best resource integration technique. With this technique Toyota can meet the demand targeted at the right time by delivering the Toyota vehicles at the correct time to the customers. And thus company can increase their productivity and reduce their idle time and improve their efficiency. Thus would create satisfaction to the customers and have a good bonding with the Toyota customers.

Conclusion

Toyota holds the second largest automobile manufacturers in the world. Toyota is the leader of sales in hybrid and electric vehicles. The purpose of this report is to find a remedy for reducing the idle time of machineries at Prius Hybrid production. Once we find the solution Toyota can meet the increase in demand for the hybrid model without comprising on the quality. It is important to consider hybrid cars because hybrid vehicles consume less fuel and emits less carbon dioxide when compared to petrol and diesel-engine vehicles ( “Toyota Europe,” 2017)

In this case sequencing technique is the right resource integration technique to determine an optimum sequence of task to optimise the output in terms of time .Scheduling method helps for achieving the best result. When applying the optimal sequence of task at production, the minimum elapsed time will be reduced for the three machines M1, M2, M3 and thus can be brought down to 83 hours and also idle time of each machines are identified.

Toyota’s expected target is 50% for Hybrid sales in Europe by 2020.When sequencing technique is applied , the idle time of each machines are reduced and thus it will increase the rate of production and also reduction in make span of vehicles.

It is suggested that the sequence of tasks or job at their production can be changed with their machines to achieve a better result in terms of reduced make span, reduced idle time, increased productivity and meting the customer satisfaction by serving eco-friendly Hybrid cars.

References

• Toyota Europe newsroom. (2017, January 6). Retrieved September 12, 2017, from http://newsroom.toyota.eu/ toyota-motor-europe-tme-sold-928500-vehicles-in-2016-with- best-ever-sales-for-hybrids-and-lexus/
• Toyota Production System. (n.d.). Retrieved September 12, 2017, from Toyota website: http://www.toyota-global.com/company/vision philosophy/toyota production system/
• Benefits of driving a Hybrid Toyota Hybrid. (n.d.). Retrieved September 12, 2017, from Toyota website: https://www.toyota-europe.com/hybrid-innovation/benefits-of-hybrid
• Ferris, R.(2017, April 18). Demand for electric vehicles bucks low gas prices, says AAA. CNBC

1. https://www.reuters.com/finance/stocks/company-profile/TM
2. https://global.toyota/en/company/vision-and-philosophy/production-system/
3. https://sites.psu.edu/kimcivicissues/2017/03/14/hybrid-cars/
4. 1.https://books.google.co.nz/books?id=7WfSBwAAQBAJ&pg=PA254&dq=toyota+sequence+problem&hl=en&sa=X&ved=0ahUKEwidlY_xrofiAhUDfisKHbcKAhMQ6AEIKDAA#v=onepage&q=toyota%20sequence%20problem&f=false
5. 1.https://books.google.co.nz/books?id=7WfSBwAAQBAJ&pg=PA254&dq=toyota+sequence+problem&hl=en&sa=X&ved=0ahUKEwidlY_xrofiAhUDfisKHbcKAhMQ6AEIKDAA#v=onepage&q=toyota%20sequence%20problem&f=false
6. https://books.google.co.nz/books?id=iT1ejcnxNhEC&pg=PA162&dq=toyota+hybrid+cars&hl=en&sa=X&ved=0ahUKEwiPjIKo0IXiAhXTF3IKHZU4CuQQ6AEIKDAA#v=onepage&q=toyota%20hybrid%20cars&f=false