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Wally PalenAssistant General Manager

Toyota Motor Manufacturing Kentucky

Body Operations

Stamping SSR Leader

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1300+ ACRES

total

8.1 MILLIONsquare feet under roof

$7 BILLIONKY investment

as of CY2016

Toyota Motor Manufacturing Kentucky (TMMK)

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550,000VEHICLE

CAPACITY

600,000+ENGINESPER YEAR

TOYOTA’S

LARGESTPLANT

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CAMRY+ HYBRID

America’s Best-Selling Car for 15 years in a row

AVALON

+ HYBRIDToyota’s Flagship Sedan

VENZA**Built out 2016

2nd Largest Stamping Operation in Toyota Globally

80% Self Supply to Body Shop

Parts Supply (Toyota + Suppliers)

30,000,000 Parts

2nd Largest Die Manufacturing Plant

Body Shell (Aluminum)

On-Site Die Engineering

Trial Parts @ TMMK Mfg Line

What we manufacture in Kentucky

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1st North America Lexus ES350

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Toyota Kentucky Brings Home Platinum Plant

Quality Award in J.D. Power Initial Quality Study

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Die

Face

Die

Design

Casting

Machining

AssemblyTryout

Measuring

Production

Trial

Modifications

From part design to

production

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Prototype tooling

• Shorten die build leadtime

• Improve first panel quality

Cost Reduction

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• Quickest succession of new models in history of Toyota North America• Highest workload in 25 years for Die Manufacturing

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Actual Production

Planned Production

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SKILLED TEAM MEMBER DEVELOPMENT SYSTEM

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10%

90%

44%56%

Retiree Eligible

Not Eligible

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21%

25%

29% 29%32%

36%

41% 42% 42% 43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2017 2018 2019 2020 2021

5 Year Retirement Eligibility (Tool & Die) TL Eligibility

TM Eligibility

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393

63

0

50

100

150

200

250

300

350

400

450

Applicants New Hires

GAP ANALYSIS

Did not show up for hands-on assessment

Failed electrical component of the skilled assessment

Failed the Select Assessment for Manufacturing (SAM)

Not having enough die experience (only machining skills)

Week # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Candidate Search

Resume Review

Computer Assessment

Hands On Assessment

Department Interview

Background Check

Medical Review

Formal Offer

Start Date

17 Week Hiring Process

84%

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1) Modify assessment criteria to meet current market condition

2) Advance In-House Training Systems

3) Develop Tool & Die Apprentice Program with Kentucky Trade School

4) Develop a Pipeline of Students for the Tool & Die Apprentice Program

5) Reintroduce the Skilled Team Member Development System (1991)

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Modify Assessment Criteria

to meet current market condition

Eliminated the electrical requirement for Tool & Die

Recalibrated the Select Assessment for Manufacturing (SAM)

Testing criteria does not match today’s “talent skillset”

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Advance In-House Training Systems Created a dedicated

Tool & Die Training Center

Hire team members with

strong aptitude and train

welding / hand skills for

Tool & Die

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Punch Hole Finishing Test Test Block – Hand Finish w/Stick

Friday’s Activity

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Develop Tool & Die Apprentice Program Partnered with Bluegrass Community and Technical College

Assisted with securing funding for a new campus

Assisted with procuring equipment for the Tool & Die Program

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18 months: 2 days / week of classroom training (BCTC)

3 days / week working in Toyota tool & die shop

+12 months: Continued development in Toyota tool & die shop

1800 hours of work experience after 30 months

30 months

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Cost:

$11,147 - $157 per credit hour (71 hours)

Kentucky Educational Endowment Credits (KEE’s) / FAFSA

Compensation:

$40,000 for first 18 months ($15 to $19 per hour)

$40,000 for 12 months ($19 to $22 per hour)

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Grow the program with a full time skilled team member through:

- Educational sessions at local high schools (1000 students)

- Educate students on tool & die skilled trades

- Educate students on minimum requirements

- ACT Scores (Math 19, English 18, and Reading 20)

- KEE’s (Kentucky Educational Endowment) funding

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- Educate counselors on tool & die skilled trades

- 60 mile radius, hosted counselors with luncheon and plant tour

- Partnered with retired school Superintendents for diversity mentoring

- Weekly mentoring with former Superintendents

- Monthly mentoring with Toyota AMT Coordinator

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AMT Maintenance Pipeline Results (Example)Advanced Maintenance Trainee

Reached out to 1000 students

11% applied (111)

65% met requirements (72)

Students interviewed by company sponsors

Toyota hired 100% of students that completed the program

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Reintroduce Skilled Team Member Development System

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52

5

32

15

0

10

20

30

40

50

60

GAP thru 2021 Step 1 & 2 Step 3 & 4 Step 5

94 Applicants Required

Traditional HR Apprentice / High School

Prod TM-> Skilled TM

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