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
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Toyota Motor Corporation founded in
1937
Manufacturing plants in 25 countries
Present in 160 countries
The Toyota group
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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
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Setting up in France in 1997
Toyota’s objectives: Become a
WORLDWIDE leader
Production of Yaris (180 000 vehicles/year)
Two independent structures:
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Toyota France: distribution branch
Toyota Motor Manufacturing France
(Valenciennes): production branch
Why France?
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Need to enter the EURO Zone
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to avoid currency exchange rate fluctuations
3 possibilities
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Germany
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Spain
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Largest European market
Production costs too high
geographically too distant from its market and from the HQ
France
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Second European market
competition between 3 regions, notably Alsace, Lorraine and
Valenciennes
Why Valenciennes?
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Within a radius of 150km
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Population: 250 M
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Paris, Cologne, Brussels (Toyota Europe HQ)
1/3 of European GDP
Presence of OEMs and car
manufacturers
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SAE Detroit, Française de Mécanique
PSA-Fiat, Renault, VW, Ford
Why Valenciennes?
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Assets
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Flat industrial land available (0% slope)
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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)
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PSA territory (25% of the local employment)
French support to Toyota
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Recruitment process: helpful
collaboration of ANPE
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screening of 50 000 possible employees
Tax exemptions (local and workforce)
Government incentives: < 1 % of the
total investment (4 bn FF)
Some handicaps
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Language barrier
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Difference in culture
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use of interpreters
orders in English
rigour
details
TV and entertainment
Long French procedures
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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:
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mainly assembling
few internal production
Adaptation of the supply chain logistics :
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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:
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2 seven-hour production phases a day
flexible timetables
use of Toyota’s standard productivity indicators
Adaptation of the assembly line to markets
trends :
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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
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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…
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Just-in-time management:
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Minimum stocks
Daily catch up of production
« Jidoka »:
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Humanize automatization
Encourage initiative
Use of « andon»
…and adaptation to the local
context
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Corporate culture adaptation: 3 new
pillars
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2.
3.
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Diversity
Developmentability
Loyalty
Toyota’s experience of foreign
countries: a deep organization.
A performing human resource
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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
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Aptitude tests
Capacity to follow guidelines and instructions
A mutual learning
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All the key functions are coupled with a
Japanese counterpart
27 permanent Japanese expatriates
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Number twice inferior as usual
3-year rotation
In charge of varied functions
Reduced hierarchical organisation
An increasing loyalty to Toyota
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At the beginning, strong turnover
Loyalty’s instruments that proved to be successful:
 Package:
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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:
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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
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Adoption of the 35-hour work week during the
settlement negotiations
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Toyota’s willingness to obey the new law
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Overtime needed when production volume of the
day not met => resentment of some employees
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Misunderstanding of the law among the youngest
employees: 35 hours of presence vs effective work.
Sources
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Interviews
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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
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«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