Productivity and Quality Improvement in Toyota Assignment

Productivity and Quality Improvement of Port Installed Options Center in
Toyota
KAHDBM-F192F-013 R.K.A.D.D.E. Kodithuwakkuarachchi
KAHDBM-F192F-014 M.J. Jayananda
KAHDBM-F192F-015 S.M.G.I. Sooriyabandara
KAHDBM-F192F-016 R.S.M.D.U. Hithgoda
KAHDBM-F192F-017 A.H. Mubashshara
KAHDBM-F192F-018 D.H. Gunasekara
Productivity and Quality Management
Higher Diploma in Business Management 19.2
National Institute of Business Management
5th June 2020

Productivity & Quality Improvement of Port Installed Options Center in TOYOTA | 2
Acknowledgement
We would like to express our special thanks of gratitude to our lecturer of the module quality and productivity
Management, Miss.Sayuri wijekoon for her guidance and support in completing our report. We pay our deep
sense of gratitude for her for the kind supervision given to us throughout the course which shaped the present
work as it shows.
We would also like to extend our gratitude to The National Institute of Business Management, for providing us
with all the facility that was required.
Also, we thank all of our group members who contributed to complete this report and to our parents for lending
us a hand and everyone else who helped us to complete this assignment and to make this a success.
THANK YOU VERY MUCH!

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Executive summary
The report mainly focuses on how quality concepts has been applied at the port installed options center (PIOC)
in Toyota motor corporation (TMC) Saudi Arabia which is an official dealership of TMC in the Kingdom of
Saudi Arabia, they function as a subsidiary dealer of TOYOTA MOTOR CORPORATION (TMC), the
company not only sells the TMC products but also acts as a center for installing gadgets and accessories to the
vehicles. The company has been planning to implement quality concepts for their operations, The TOYOTA
MOTOR CORPORATION’s quality or kaizen department has provided the company with necessary theoretical
knowledge and training and aid in implementing the quality concepts successfully.
PIOC has implemented the TOYOTA production system under which the concepts such as just in time, jidoka
were implemented. The company also successfully implemented kaizen, the seven MUDA and 5S system and
the KANBAN system. All these kaizen tools helped in understanding the system and the problems that are
prevailing within the system. This helped in identifying the gap between existing system and the TOYOTA
production system. After the gap is found a kaizen target was set by the company.
The target was to reduce the manpower needed and the extra facilities needed when the output increases due to
the increased market demand. The implementation of the above mentioned kaizen tools were supposed to
increase the efficiency and productivity of the installers (manpower) and operations department and machineries
at PIOC, in addition to this the quality measures were supposed to save millions of dollars for the company
which was being wasted due to inefficient and improper operations at PIOC. The kaizen implementation began
with the target of not having to invest in new facilities when the demand rises (13% increase in annual output)
and meanwhile reducing the manpower needed by 27%, the results of the kaizen implementation was as
follows: an improvement in the Associates Engagement Index , a potential inventory reduction due to the use
of Kanban system with just in time, a reduction in the number of vehicles damaged due to layout control and
savings of about US$ 3.33 million by not investing in new facilities or increasing in manpower when output
increased. All these improvements to the production line was appreciated and acknowledged by Toyota Motor
Corporation (TMC)

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Contents
Acknowledgement ..............................................................................................................................................2
Executive summary ............................................................................................................................................3
Company background .........................................................................................................................................5
01. Kaizen and its important principles ..........................................................................................................6
02. Toyota production system (TPS) and its principles ...................................................................................6
03. The quality/productivity concepts used by PICO ......................................................................................7
04. Improving quality and productivity at PICO .............................................................................................8
04. I. The Toyota production system (TPS) .....................................................................................................8
04. II. Muda system.........................................................................................................................................8
04. III. Just in time ..........................................................................................................................................9
04. IV. The 5 s system .....................................................................................................................................9
04. V. Jidoka ...................................................................................................................................................9
05. Problem description .................................................................................................................................9
06. Gap analysis........................................................................................................................................... 11
07. Kaizen target .......................................................................................................................................... 11
08. Kaizen implementation .......................................................................................................................... 11
09. Results of implementing the kaizen principles ........................................................................................ 12
10. Financial impact of implementing the kaizen principles ......................................................................... 13
Conclusion ....................................................................................................................................................... 14
Appendices ....................................................................................................................................................... 15
References ........................................................................................................................................................ 17