Mar 28 2015
Toyota Unveils Revamped Manufacturing Process | Yoko Kubota | Wall Street Journal
“Toyota broke a two-year silence on a revamped manufacturing process—built on sharing components among vehicles—that it says will produce half its vehicles by 2020 and slash costs. But its unveiling follows a path blazed in recent years by German rival Volkswagen AG—a reversal for the Japanese pioneer, whose production system was for decades seen as the gold standard, giving the world such manufacturing concepts as ‘just-in-time inventory’ and ‘continuous improvement.'”
Source: www.wsj.com
Other than that Toyota has a plan, the article does not directly reveal specifics. As several readers pointed out in their comments, sharing components across models is not a new idea and is not risk-free, even if executed perfectly, as it reduces the differences between your standard and luxury models in ways that customers may notice.
The most revealing parts of the article, to me, are (1) the reference to VW, and (2) the keyword “modular assembly.” I don’t believe that Toyota has borrowed much from VW since the look of the 1947 Toyota SA, a dead-ringer for the already dated but yet to be successful beetle.
Modular assembly sounds self-explanatory but it isn’t. It is a specific approach to assembling cars brought to VW by former GM purchasing executive Jose Ignacio Lopez in the 1990s, in which up to 90% of the work traditionally done in a car assembly plant is done by suppliers and all that remains is the final assembly of large subsystems.
The Porsche plant in Leipzig, for example, does not stamp, weld, or paint car bodies. It receives them ready to assemble, in a spotlessly clean facility that customers are encouraged to visit.

The whole site is in fact dominated by its visitor center, complete with a fine-dining restaurant overlooking the plant and where new buyers can receive an hour’s worth of training on their new cars on the test track. In the same spirit, VW has set up an assembly plant in downtown Dresden, with glass walls to enable passers by to watch cars being assembled.
Modular assembly was used by GM in Lordstown, OH, in 1999, and then by VW in Spain, and by DaimlerBenz for the Smart in Hambach, France . At the time, Toyota evaluated the concept and passed on it. Apparently, Toyota’s production leaders changed their minds.
See on Scoop.it – lean manufacturing
Mar 30 2015
Toyota’s Shared-Parts Strategy | IndustryWeek
Source: www.industryweek.com
Specifics are trickling out about Toyota’s plans. It seems that they want to make more different products from fewer components and have plants that are competitive even at low volume.
Readers’ comments on the idea of having fewer platforms and more common parts are focused on the risk of extensive recalls, and the way such recalls can wipe out any savings achieved by the strategy.
It really is a matter of degree and of execution. Having fewer dashboard options might reduce the attractiveness of your products, but using fewer types of proportioning valves will not. Also, it is easier to ensure not only availability but quality as well for fewer components, making recalls less likely.
With regards to volume in a given plant, Toyota’s strategy seems a continuation of their work on the Global Body Line, in which the same infrastructure and fixtures could be used for robotic welding at high volume and manual welding at low volume.
See on Scoop.it – lean manufacturing
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By Michel Baudin • Press clippings • 1 • Tags: Toyota, Toyota Production System