Transcript Toyota 2003
Best in France project
Toyota Motor Manufacturing France Case study
Julien DALCORSO
Aude DEBARD
Jean-Christophe LEMOINE
Radim SEVCIK
Content
1.
The Toyota group
2.
Why France? Why Valenciennes?
3.
The industrial process
4.
Human Resources Management
The Toyota group
Toyota Motor Corporation founded in
1937
Manufacturing plants in 25 countries
Present in 160 countries
The Toyota group
Employees: 264,000 people worldwide
Net revenues (2002): $107.4 billion
(+9%)
Net profit (2002): $4.2 billion (-15.7%)
3rd largest car manufacturer in the
world (5.54 million vehicles in 2002)
Toyota France
Setting up in France in 1997
Toyota’s objectives: Become a
WORLDWIDE leader
Production of Yaris (180 000 vehicles/year)
Two independent structures:
Toyota France: distribution branch
Toyota Motor Manufacturing France
(Valenciennes): production branch
Why France?
Need to enter the EURO Zone
to avoid currency exchange rate fluctuations
3 possibilities
Germany
Spain
Largest European market
Production costs too high
geographically too distant from its market and from the HQ
France
Second European market
competition between 3 regions, notably Alsace, Lorraine and
Valenciennes
Why Valenciennes?
Within a radius of 150km
Population: 250 M
Paris, Cologne, Brussels (Toyota Europe HQ)
1/3 of European GDP
Presence of OEMs and car
manufacturers
SAE Detroit, Française de Mécanique
PSA-Fiat, Renault, VW, Ford
Why Valenciennes?
Assets
Flat industrial land available (0% slope)
Never been used before for industries
Well served by public transport
Very low price of land
Proximity to Rotterdam harbour
Available workforce (20% unemployment
in 1996)
PSA territory (25% of the local employment)
French support to Toyota
Recruitment process: helpful
collaboration of ANPE
screening of 50 000 possible employees
Tax exemptions (local and workforce)
Government incentives: < 1 % of the
total investment (4 bn FF)
Some handicaps
Language barrier
Difference in culture
use of interpreters
orders in English
rigour
details
TV and entertainment
Long French procedures
problems dealing with the French “Administration”
14 months for delivery of construction permit
The industrial process
A.
The supply chain
Toyota’s activity in Valenciennes:
mainly assembling
few internal production
Adaptation of the supply chain logistics :
from Rotterdam (by barge and trucks)
from local suppliers (Valenciennes : an automotive cluster)
from Japanese suppliers settled in Valenciennes
A good mix of local and international suppliers
The industrial process
B.
The assembly line
Process in line with Toyota’s global procedures:
2 seven-hour production phases a day
flexible timetables
use of Toyota’s standard productivity indicators
Adaptation of the assembly line to markets
trends :
possible doubling of output (300 000 vehicles a year)
…through extension of the present assembly line
The result
The world’s most advanced Toyota plant
Quickest production takeoff ever seen
A model in terms of technology and production
timing
Productivity superior to Toyota’s UK plant
Integration of group’s capitalized experience
A successful mix of imported
methods…
Just-in-time management:
Minimum stocks
Daily catch up of production
« Jidoka »:
Humanize automatization
Encourage initiative
Use of « andon»
…and adaptation to the local
context
Corporate culture adaptation: 3 new
pillars
1.
2.
3.
Diversity
Developmentability
Loyalty
Toyota’s experience of foreign
countries: a deep organization.
A performing human resource
2 600 employees (Toyota = 3rd employer in
the region)
- average age : 28
- 2 200 CDI
- many temporary employees recruited (until
600)
The match of Toyota’s need and the French
labour market: looking for potentials
Aptitude tests
Capacity to follow guidelines and instructions
A mutual learning
All the key functions are coupled with a
Japanese counterpart
27 permanent Japanese expatriates
Number twice inferior as usual
3-year rotation
In charge of varied functions
Reduced hierarchical organisation
An increasing loyalty to Toyota
At the beginning, strong turnover
Loyalty’s instruments that proved to be successful:
Package:
salary above the average ( net salary : 945 euros vs 918 euros)
incentives: 157 euros/month
saving plan (PEE)
perks (housing grants, cheap social insurance)
Training:
1.48 million euros in 2002 = 5 to 7 % of the workforce
investment shared both by the employees and the employer
support of a medical team in to order to help the employees find the
best gestures
The 35-hour work week
Adoption of the 35-hour work week during the
settlement negotiations
Toyota’s willingness to obey the new law
Overtime needed when production volume of the
day not met => resentment of some employees
Misunderstanding of the law among the youngest
employees: 35 hours of presence vs effective work.
Sources
Interviews
M. Jean-Louis Roy, CCI Valenciennes
M. Nicolas Fayol, Responsable de la Communication de
Toyota Motor Manufacturing France
M. Hironaka Chiba, Executive Coordinator de Toyota
France
Press articles
«Toyota chouchoute ses jeunes salariés» in Entreprises &
Carrières, n° 668/669, 6-19 mai 2003, p. 20-22
« Toyota cherche à exporter son modèle » in Les Echos,
22 avril 2003, p. 37