How is buying an Auris Car like buying Nike Trainers?

1. How is buying an Auris Car like buying Nike Trainers?

2. Lesson Objectives • Analyse Business Stock Control situations and identify key advantages and disadvantages of Just in Time (Lean Manufacturing) at Toyota (Grade C+/B) • Evaluate the advantages/disadvantages of stock control and highlight problems in the Supply Chain for global businesses. (Grade A/B)

3. Auris Toyota Car Production Burnaston, Derby • Press Shop • http://www.youtube.com/watch?v=hPlcs4o_ibA • Line • http://www.youtube.com/watch?v=zxCQzzDScHU

4. Toyota Factory at Burnaston, Derby on A38 and A50 Junction

5. Auris Built at Burnaston Derby

6. Headlights from Japan

7. Engines Built at Deeside, North Wales

8. Auris Seats – Johnson Controls in Burton on Trent

9. Michelin Tyres made at Dundee, UK

10. Steel Coil Warehouse in USA Burnaston uses 6.5 of these coils every day weighing 300 Tonnes of Steel.

11. Futaba Dove Valley Foston Derbyshire

12. Toyota Inchcape Car Showroom Derby

13. Fuel Tank Made in Japan

14. Steering Wheels from France

15. Radio and Air Conditioner Units made in Japan

17. Supply Chain from Raw Materials to Finished Car Lean Manufacturing using Just in Time JIT is where raw materials and components, parts etc arrive at the factory JIT for assembly usually within a 2 hour window of being needed on the assembly line. Toyota Factory at Burnaston, Derby on A38 and A50 Junction Two Models of Cars Avensis sold all over the world including Japan & Auris sold in Europe Each Car is Made for a Customer’s Order 750 Cars manufactured a day 1 car every 66 seconds 260 parts from UK & 500 European Suppliers

18. 15 mins In Groups • Look at the information and scenarios to determine the advantages and disadvantages of Just in Time Production on Toyota and the concept of holding Buffer Stocks in the Supply Chain. • For each Scenario make notes on the positives/negative impacts on Toyota

19. Positives + Minuses - & Interesting I • Everyone complete a PMI sheet on the • Positives (advantages) of using Just in Time, different scenarios etc for Toyota • Minuses (disadvantages) or concerns from external factors, or changes etc for Toyota • Interesting – “It depends” concepts from issues raised in your discussions, or any other information you think Toyota might need to made decisions on Stock Control.

20. Scenario 1 • Earthquake and Tsunami in Japan 2011 • Natural Disaster • Toyota Part Factory Destroyed • Effects on Orders, Profits, Sales, Employees ………..

21. Scenario 2 • ICELAND VOLCANO ASH CLOUD • DELAYS ALL FLIGHTS IN EUROPE

22. Scenario 3 • Economic Down turn continues throughout UK and Europe

23. Scenario 4 • CHINA FOOD SHORTAGES CAUSES FACTORY WORKERS TO RETURN TO AGRICULTURE

24. Scenario 5 • ICY WEATHER BRINGS UK TO A STANDSTILL

25. Scenario 6 • TOYOTA CONSIDER INVESTING IN A WAREHOUSE FOR BUFFER STOCKS • Costs, Employees, Benefits, What ifs?

26. Scenario 7 • TOYOTA RECALL 800,000 CARS WITH FAULTY AIRBAGS

27. Scenario 8 • MICHELIN TYRE MANUFACTURES DESIGN A NEW LOW EMMISSION TYRE FOR AURIS CARS • (Scientific Research)

28. Scenario 9 • Research & Development at Toyota introduce new colour ranges for Auris cars for paint, interiors and seats.