perodua part 1

Master In Engineering Management EM774 Fakulti Kejuruteraan Mekanikal Universiti Teknologi Mara

MEM 775 MANAGING THE VALUE CHAIN OPERATIONSupply Chain Management Perodua Manufacturing Sdn. Bhd. Towards Toyota Production Systems and Globalization Challenges. Date: 6 May 2012Lecturer Name : Prof. Dr . Ramzi ChikStudent Name : Mohd Anuar Ahmad 2011636338

1. Company Profile (Product & business strategy ,TIV, market shares, production forecast) ~ Introduction. 2. Perodua sales, order flow and plant layout ~ Business model. 3. Implementation of TPS (Toyota Production System) in Perodua ~ Kanban, Standardize Work, 5S, Kaizen. 4. Perodua assembly line (Line A1 & Line A2). 5. Globalization challenge and future trends. 6. Recommendation. 7. Conclusion.

Table Of Content

1.0 Introduction

1.0 Company Profile.Company Name: Perusahaan Otomobil Kedua Date of establishment : 1993 Company status : Joint venture company with Japanese partners. Shareholder: UMW Toyota 38%, MBM resources: 20%, Daihatsu Motor Japan 20%, PNB 10% and others. Factory area: 64,000 square meters Facilities : Press shop, casting, machining, engine assembly, R&D, assembly shop, etc. Workforce : As of June 2009 about 10,000 staff Production capacity : 250,000 units per annum on 2 shift cycle Corporate mission : Professionalism in all our operation, Optimizing benefits to customers and

1.1Product & Business Strategy.Viva

Introductio n

Alza Myvi

oduct, variant and price.

iva : 660cc-1.0cc : 13 variant : 6 color : Price RM27k RM43k Myvi : 1.3cc-1.5cc : 14 variant : 7 color : Price RM52k-RM63k lza : 1.5cc : 6 variant : 6 color : Price RM56k-RM70k summary 3 model 33 variant, 7 color and price from RM27k-RM70k

usiness strategy.

ocus : Cost leadership, people car, compact car, small car arget customer : For 2nd car, student, fresh graduate, small family. elling point : Fuel efficiency, acceptable quality, low maintenance cost, y to handling.

1.2 Product life cycle and type Introductio n of new product development.Sale Maturity of product

Type of new product development at Perodua : Modification and Addition (not new concept). Based on platform develop by Daihatsu Motor Japa

0

1 Facelift no1

2

3 Facelift no2

4

5

6

Year

Full model change

1.3 Total Vehicle Market In Malaysia As Of Nov 2011 (551,018 unit) Overview Introduction 2011 sales of vehicles.

Market Leader

1.4 Percentage Market Share Of Introduction Automotive Industries In Malaysia As Of Nov 2011.

1.5 Market units comparison as of Introduction Mar 2012. Total Industries Vehicle (TIV) Actual TIV TIV Mar'12 : 53.6K Units (x 1,000) 70.0

~ Vs Feb12 +9.6k (+15%) ~ Vs YTD Mar11 -19.9k (-13%)Year 2012 (Est. TIV 615k)MAA Report

60.0

50.0

40.0 New Lending Guideline from BNM 30.0 Impact Thai Flood

Year 2011 (TIV 600k)

Year 2011Cumm.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TIV 54.8 40.4 63.3 50.9 46.0 41.8 50.3 58.4 44.4 53.6 48.3 48.0 600.154.8 95.2 158.4 209.4 255.4 297.2 347.5 405.8 450.2 503.9 552.2 600.1

2012Cumm.

40.9 44.0 53.640.9 85.0 138.5

138.5

1.6 Market units comparison as Mar Introduction 2012. Market Share Movement Actual

P2 Market ShareMar 30% YTD Mar 32%35%

50%

40%

Perodua 33% 34% 30%

30%

29% 24%

31%

20%

10%

YTD Mar'12 Perodua 4 k 5 Proton 3 k 5 Toyota 2 k 3 Nissan 8k Honda 2k1st Qtr 2011 2nd Qtr 2011

32.3%25.3% 16.3% 5.8% 1.5%

VS 2011 -2.0% -21.8% + 6.6% -15.1% -82.0%4th Qtr 2011 Jan'12 Feb

Proton

24% 19%

Toyota Nissan Honda6% 2% Mar

0% 3rd Qtr 2011

1.7Market units comparison as of Introduction Mar 2012. Passenger Car ActualUnits (x1,000) 10.0k

Mar'12

YTD Mar'12M arket M o d e l V o lu m e V s 2011 Sh a r e M yvi 22.2k 2 4% +4% Sa ga 1 7 .2 k 1 8 % -1 6 % V iva 12.8k 1 4% -19% P e r so n a 9 .6 k 1 0 % -2 2 % V io s 7 .9 k 8 % +8 % O th e r s 2 3 .7 k 2 5 % -3 4 % T o ta l 93.4k 100% -18%

8.0k

7.7k

6.5k

6.0k

4.8k3.5k 3.0k

4.0k

2.0k

0.0k Myvi Saga Viva Persona Vios

1.8 Market units comparison as of Introduction Mar 2012. Multi Purpose Vehicle (MPV) ActualUnits (x1,000) 5.0k

Mar'12

YTD Mar'12M arke t M o d e l V o lu m e V s 2011 Sh a re A lza 9.7k 40% +15% E xo ra 6 .5 k 2 7 % +1 8 % G r a n d Liv in a k 1 2 % -1 2 % 3 .0 A v a n za 2 .0 k 8 % +1 0 % In n o v a 1 .4 k 6 % -1 2 % O th e r s 1 .9 k 8 % -2 4 % To tal 24.4k 100% +7%

4.0k

3.5k

2.4k 1.3k 1.0k 0.5k

3.0k

2.0k

1.0k

0.0k Alza Exora Avanza Grand Livina Innova

Introduction 1.9 Perodua production tact time. Plant Operation

M ay'12 ~ N o OT P lan ~ Daily OT reserve 4.0H/ day for recoveryMonth Apr'12 Tact Time A1 Line 2.1' A2 Line 2.0' Daily OT (Hour) A1 Line 1.0 A2 Line 1.0 Sat OT (Days) Reserved Sat OT 2 May 2.1' 2.0' 3 Jun 2.1' 2.0' 3 Jul 2.1' 2.0' 3 Aug 2.1' 2.0' 0.5 0.5 2 Sep 2.1' 2.0' 0.5 0.5 2 Oct 2.1' 2.0' 0.5 0.5 3

2.0 Perodua production six month Introduction rolling forecast. Production Summary Total P rodn ASSY Line On = 13,500 unitsM ay12 DO / EXP DI = 13,500 unitsOct 17 4,950 7,930 3,000 15,880 Est. M odel Apr'12 M ay Jun W orking Days 19.5 19 21 Viva 5,034 4,600 5,110 M yvi 7,333 7,400 8,800 A lza 3,700 1,500 3,100 Total 16,067 13,500 17,010 P ro ductio n DO P lan Jul Aug Sep 22 16 20 5,540 4,690 5,550 9,890 7,310 8,990 3,800 2,700 3,450 19,230 14,700 17,990

Average prodn 18.0k per month, 900u per day. Note: Production DO plan is included recovery or advance production.

* Hig W h orkingDay (Volum 880u/day) e

Ordering 2.1 Perodua sales and order flow flow.

otes: Each variant of model have specific part number for it component. (Example umper Myvi Std variant color black/white : XXXXX-XXXXX-AB/C) Booking from customer will be stored in the system and production will start produce the car based on the order. Ordering of part to all supplier will be generate in the system and the sequence ll be follow accordingly. The standard and normal lead time from ordering to deliver the car to customer i bout 5 days.

2.2 Perodua plant layout and flow.1 OMI (vendor sub assy tire) 1 CKD Warehouse Bumper Paint 2 Shop 1 Casting,Machining, Engine Assembly (CMK)

Plant layout & flow

1 TLS (Total Logistic Services)

2 Body Shop

3

Paint Shop

4

Assembly Shop 1 1 Logistic

5

1

KLB (Konsorti um Logistic berhad)

Press Shop

Pre Delivery Inspection

6 RND Finish Good Stock Yard

Corporate Building

1. 2. 3. 4. 5.

2.0 TPS Implementation

2.3 TPS Implementation.

TPS and TPM implementation

es: erodua start to implement some of the basic concept of TPS from year 2002. t the same time Perodua also implement TPM.

2.4Profit vsObjective. of increase profit TPS Loss Graph (Ideathrough wastage/non value added activity reduction)


PROFIT = SALE PRICE - COST PRICECompany X Toyota Cost

Cost

Selling price increase Profit Selling Cost price price up 1 2

Reduction of cost through TPS

Profit

Selling Cost price price reduce

1

2

2.5 TPS Basic Tools Perodua implement.2 Big base of TPS toolsJUST IN TIME


Basic Principle

Tool / Method for realizationProduct : Synchronism. Man : Multi-skill worker. Equipment : Layout of process sequence Shorten die change time and make smaller lot

Heijunka as precondition: 1. Make process as flow 2. Decide tact by necessary volume. 3. Pull out from next process.

Standardized work Kanban JIDOKA1. Quality should be made in each process. 2. Reduce man power. 1. Stop by abnormal 2. Understand abnormal 3. Separate the work for man and work for machine.

2.6 TPS Focus on 7 type of wastage.of over production 1. Waste2. 3. 4. 5. 6. 7. Waste Waste Waste Waste Waste Waste


of waiting time/idling of conveyance/transportation during processing of inventory/Stock of motion of correction/rework

2.7 TPM Definition


Machine maintenance system consist of the entire life of equipment in every division Participation from all working level i.e. from top to bottom Implementation through autonomous small group activities

2.9 TPS Practice (in Perodua)1 . L o t s iz e is s m a ll. 2 . S to ra g e s p a c e is le s s1.. In te rn a l K a n b a n 3 . K a n b a n im p le m e n te d p ro d uc e s o nly re q uire d P re s s . 4 . H a nd ling o f p a rts in & o p a rts to b o d y. ut 2 . D ie c ha ng e tim e is is re d uc e d . 5 . C o ns um p tio n o f tra ns p ore d uc e d . rt 3 . L o t s p a c e is re d uc e d . is le s s . B ody 6 . B uffe r s to c k is le s s .


1 . U s in g P u ll s y s te m . 1 . R u n n in g c a rs is re d u c e d . 2 . L o t s ize is s m a ll. 2 . A c c id e nt c a n b e re d uc e d . 3 . Im p le m e nt K a nb a n a nd . M is s ing p a rts c a n b e le s s . 3 J und a te s ys te m to s a ve 4 . L e a d tim e to P D I is le s s . s p a c e a t line . 5 . M is s ins p e c t c a r c a n b e e lim ina te d d ue to le s s c a r.

QA S u p p lie r P e ro d u a L g P a in t 1 . H e iju n k a p a tte rn is fo llo w . 2 . N o P B S lo s s to A s s y. 3 . Q ua lity is d e te c t in line .

P DI

1 . F u ll K a n b a n im p le m e n ta tio n . 2 . C o n tin u o u s K aa c e n ity. iz tiv 3 . M a c h in e tro u b le c a n b e e a s ily vis u a liz e . 4 . R e je c t m a te ria l is re d u c e d .

Assy Cm k

1 . E ffic ie n c y o f S td W o rk e lim in a te 3 m u d a . 2 . F u ll a n b a n K im p le m e nta tio n. 3 . M in o m i s u pa t ly s id e . p line 4 . H e iju n k a d uc tio n line . p ro 5 . J id o ksays te m to a vo id d e fe c tive ve hic le s .

1 to. L e s s ve hic le s a t d is trib utio n ya rd 2 . L e s s re w o rk tim e to b e d o ne . 3 . F a s te r d e live ry to c us to m e r d ue to no ho ld ing c a rs .

2.9 TPS Practice (in Perodua)ORDERING AND RECEIVINGDI as reference


Perodua Ordering and Receiving System For Local BASIS PART BY PART Part (Year 2004)Vendor s

PPC Dept.DI as reference

Vendor s

Third Party Logistic s

E-Sims

PART BY PART BASIS Pull System

Vendor s

PDIO Part manifest List (PML)

Vendor s

Logistics Dept.

Hikitori Kanban

Production Line

Vendor s

MILK RUN

Vendor s

Perodua Delivery Instructio n Order (PDIO)

Vendor

2.9 TPS Practice (in Perodua)


Year 1994 ~2004: Holding stock at PERODUA (Logistic)Year 1994 2001 2002 2004 System Lot Basis Direct Vendor Lot Basis - TPL Internal Kanban (Hikitori) Milk Run Holding Stock (Perodua) 3~5 1~2 days days

0.5 ~ 1 days 0.25 ~ 0.5 days

2.9 TPS Practice (in Perodua)


Before & After Kanban Implementation at Perodua Logistic (2004)

BEFORE

AFTER

2.9 TPS Practice (in Perodua)TPS and TPM implementation

Before (2004) Carton Box

After (2004) TP Polybox

rovement items : hange from carton box to TP (Toyota Polybox). rdering based on customer ordering (pull system). o need to open and dispose of carton box. P polybox is returnable. art easy to see and differentiate. fo system had been implemented. aximum and minimum quantity of part is based on level and quantity at storage a ual control.

efits. ave cost in terms of packaging (recycle and reuse of polybox) ~ Previously carton ave operator time to open, count and check part inside the carton box. etter visual control. educe cost due to secondary defects such as old stock, wrong part and part missin

2.9 TPS Practice (in Perodua)TPS and TPM implementationPerodua Logistic Part storage (2012).

In Out Specific parking area accordingly with number of car

Gravity roller type

Fifo control

Specific parking for buggy car 5S

te : Each part have the specific area based on the area that need to supply at the oduction line. Fifo system implemented using gravity roller stacking part storage from behind ke out from front. Specific parking for buggy car, the parking area specifically tally with e quantity of buggy car. Visual control on buggy car missing or breakdown.

Assembly Overview Year 2012


Perodua Assembly Line Layout :- A1 and A2 (2012)BIG PART AREA JUNDATEZ ONE AS

Start Line A1 Trim 199 100 101 102 103 104

501

502

503

504

505

506

A1 LineS105 106 107 108 109 110 111 112 113

S/A ENGINEA1 R E P A I R B A Y

S/A CTR A1

JUNDATE A1

HEAVY REPAIR

M

M

3 R T C A / S

508

Engine& Drive train

Trim 2146 145 144 141 140 139 138 137 136 135 134 133 132 131 130 129 128

JUNDATEZ ONE B154 153 152 151 150 149 18 147

509

IP LINE A1510

End Chassis 1160 161 162 163 164 165 166 167 168 169 170 174 175 176 177 178

511

Final179 180 181 182 183 185 186 187 188 189 190 191 192 193

S

REPAIR BAY A1

512

JUNDATEZ ONE C JUNDATEZ ONE E JUNDATEZ ONE DChassis 1330 331 331 333 333 334 335 336 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353

513

3 L A N I F P S514

S/A CTR A2

SPS FINAL

SPS DOORA1

SPS DOORA2290 M

REPAIR BAY A2

515

516

Final354 355 356 357 358 359

End

517

518 360 519

520

REPAIR BAY326 325 324 323 316 316 316 316 318 317 316 315 314 313 312 311 310 309 308 307 306 305 304 303 302 301 300 299 298 297 296

Engine& Drive train

S

Start Line A2

521

REPAIR BAY

S/AENGINE A2

S/A ENGINE A2

A2 LineSPS TRIM S/A GLASS S/A PEDAL IP LINE A2

Trim 1

522

523M

SPS TRIM

2.9 TPS Practice (in Perodua) (Example) Before & After Kaizen Implementation atPerodua Assembly Line (2002)Location: AT1-9 Process Name: S/A VentilatorIdentified muda: - Process flow crossing (9 to 10) Position No. & Surrounding

BEFORE

6

4

9

2 1

5

3

Objective : 1. Reduce walking and pick-up time 2. Reduce manpower 3. Improve process arrangement 4. Reduce space

2.9 TPS Practice (in Perodua) (Example)

IMPROVEMENT

Racking Kaizen no. 1 Fuel Pipe Kancil M/T & A/T

PIC 1

PIC 2

Before1. 2. 3. Racking Size = 2400 mm No FIFO system 2 units required each for Kancil M/T and A/T

After1. 2. 3. Racking Size = 800 mm With FIFO system 1 unit required each for Kancil M/T and A/T

2.9 TPS Practice (in Perodua) (Example)Racking Kaizen no. 2 Wire Roof Kelisa

IMPROVEMENT

PIC 1

PIC 2

Before1. 2. 3. Wire stacked up No FIFO system Double location Supply (LG) & Assy pick-up

After1. 2. 3. 4. MINOMI style FIFO 5S improvement No more double location

2.9 TPS Practice (in Perodua) (Example)Racking Kaizen no. 3 Ventilator KANCIL

IMPROVEMENT

KELISAPIC 1 RR View PIC 2 FR View

Before1. 2. 3. Big space requirement 2300mm Operator need to dispose empty boxes Operator need to open carton boxes

After1. 2. 3. Smaller space requirement 1 rack for both Kancil & Kelisa - 1000mm No empty boxes Reduction in process time through opening & disposing

2.9 TPS Practice (in Perodua) (Example)

IMPROVEMENT

Racking Kaizen no. 4 Courtesy Switch & S/A Fuel Pipe Parts

Before1. 2. 3. MUDA on walking available 5 seconds No FIFO system Separate racking from main part

After1. 2. 3. No more walking MUDA on S/Assy rack S/A parts on the same rack as Fuel Pipe With FIFO on parts delivery

perodua part 1

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