In all automotive industry, suppliers are classified into three tiers with the first tier supplying to the assembler, the second tier supplies to the first, and so on. The Toyota Cluster aims to expand the supplier value chain by strengthening its suppliers down to the lowest level through improvements in their productivity, quality, productivity, efficiency, cost competitiveness, and waste reduction and elimination.
The program focuses on the 5S and productivity improvement concepts and takes between 6 to 8 months to be completed. After selection and business diagnosis of the participants recommended by first tier big enterprises, orientation and training follow. Plan implementation comes next, then monitoring and evaluation, after which project turnover is carried out. Through the Program, benchmarking and knowledge sharing activities are also carried out. Prior to plan implementation, the participants visit other companies for benchmarking and knowledge sharing purposes.
Starting in 2005, Toyota Motor Philippines joined the EBESE with 5 other big enterprises belonging to the first tier and 13 small and medium enterprises (SMEs) belonging to the second tier. In 2006, Toyota added two more big enterprises and 19 SMEs. In 2007, 1 more big enterprise was added along with 19 SMEs.
The following are the first tier big enterprises that are participating in the program: AICHI FORGING (Metal Casting/Forging), FUJITSU TEN(Audio/Electronics), PHILIPPINE AUTO COMPONENTS (Electrical/Meters), TECHNOL EIGHT (Metal Parts), TOKAI RICA PHILIPPINES (Electrical/Mechanical), TOYOTA AUTOPARTS PHILIPPINES ( Transmission), TOYOTA BOSHOKU PHILIPPINES (Interiors / Seat Assembly), and TOYOTA MOTOR PHILPPINES (Auto Assembly).
So far, the Program has been successful in attaining its objectives. As of July 2011, the EBESE-Toyota Automotive Cluster has benefited 80 suppliers and has even reached out to third-tier suppliers. In 2006, one SME (MMET) was able to graduate as a big enterprise. During the same year, one SME (Malugo Philippines), was able to move up and enter the third tier level.
K&K Molding Inc. is a manufacturer and assembler of plastic components for printer and automotive industries. Through the Program, the firm carried out some changes such as re-layout and product chute installation for its Bracket Turn finishing process. With these improvements, travel time is down from 24 sec/case to 4 sec/case: an 86 percent improvement. Output per man hour is up from 138pcs to 166pcs/man hour: 19percent improvement. From 276 parts leftover per shift down to zero. In the Case Turn finishing process, the same improvements were achieved. Travel time is down from 26 sec/case to 5 sec/case: an 83percent improvement. Output per man hour is up from 109pcs to 126pcs/manhour: a 16 percent improvement. From 218 parts leftover per shift down to zero.
Another SME, VJF Precision Tooling Corporation specializes in tool & die, carbide parts, jigs & fixtures and other precision machining. Through the Program, it was able to improve its lead time by adopting 5S in its stockroom area and providing demarcation lines in the production area to enclose exclusive areas for machines, walkways, and location of safety devices. Audits are conducted every month and further expansion of 5S into other areas. All these resulted in a significant reduction in cycle time and faster turnover which enabled the company to accept more orders for toolsets. With the reduction in manpower overhead cost per toolset due to the faster time to manufacture it, the company was able to increase its efficiency, reduce wastage, returns and rejects, which created a large impact on their revenues.
The program focuses on the 5S and productivity improvement concepts and takes between 6 to 8 months to be completed. After selection and business diagnosis of the participants recommended by first tier big enterprises, orientation and training follow. Plan implementation comes next, then monitoring and evaluation, after which project turnover is carried out. Through the Program, benchmarking and knowledge sharing activities are also carried out. Prior to plan implementation, the participants visit other companies for benchmarking and knowledge sharing purposes.
Starting in 2005, Toyota Motor Philippines joined the EBESE with 5 other big enterprises belonging to the first tier and 13 small and medium enterprises (SMEs) belonging to the second tier. In 2006, Toyota added two more big enterprises and 19 SMEs. In 2007, 1 more big enterprise was added along with 19 SMEs.
The following are the first tier big enterprises that are participating in the program: AICHI FORGING (Metal Casting/Forging), FUJITSU TEN(Audio/Electronics), PHILIPPINE AUTO COMPONENTS (Electrical/Meters), TECHNOL EIGHT (Metal Parts), TOKAI RICA PHILIPPINES (Electrical/Mechanical), TOYOTA AUTOPARTS PHILIPPINES ( Transmission), TOYOTA BOSHOKU PHILIPPINES (Interiors / Seat Assembly), and TOYOTA MOTOR PHILPPINES (Auto Assembly).
So far, the Program has been successful in attaining its objectives. As of July 2011, the EBESE-Toyota Automotive Cluster has benefited 80 suppliers and has even reached out to third-tier suppliers. In 2006, one SME (MMET) was able to graduate as a big enterprise. During the same year, one SME (Malugo Philippines), was able to move up and enter the third tier level.
K&K Molding Inc. is a manufacturer and assembler of plastic components for printer and automotive industries. Through the Program, the firm carried out some changes such as re-layout and product chute installation for its Bracket Turn finishing process. With these improvements, travel time is down from 24 sec/case to 4 sec/case: an 86 percent improvement. Output per man hour is up from 138pcs to 166pcs/man hour: 19percent improvement. From 276 parts leftover per shift down to zero. In the Case Turn finishing process, the same improvements were achieved. Travel time is down from 26 sec/case to 5 sec/case: an 83percent improvement. Output per man hour is up from 109pcs to 126pcs/manhour: a 16 percent improvement. From 218 parts leftover per shift down to zero.
Another SME, VJF Precision Tooling Corporation specializes in tool & die, carbide parts, jigs & fixtures and other precision machining. Through the Program, it was able to improve its lead time by adopting 5S in its stockroom area and providing demarcation lines in the production area to enclose exclusive areas for machines, walkways, and location of safety devices. Audits are conducted every month and further expansion of 5S into other areas. All these resulted in a significant reduction in cycle time and faster turnover which enabled the company to accept more orders for toolsets. With the reduction in manpower overhead cost per toolset due to the faster time to manufacture it, the company was able to increase its efficiency, reduce wastage, returns and rejects, which created a large impact on their revenues.
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