How Toyota Industries Business Practices (TIBP) are applied to the IS function of Toyota Material Handling Europe. Hakan Borglund, CIO of Toyota MHE shows how the Toyota values are applied in the IS operating model. Giving concrete example of how the Toyota I_Site software and blackbox solution were launched in the global market place using TIBP during the various phases of the development and deployment. Watch the video of his presentation here: http://www.youtube.com/watch?v=vxDrexafyKo&feature=share&list=UUS_BXp5Zg9td-ZfczI1BgZw&index=1 Check out www.lean-it-summit.com for more Lean IT videos and presentations.

1. Stronger together – IS delivering
value to the business
Håkan Borglund
CIO Toyota Material Handling Europe
TOYOTA MATERIAL HANDLING EUROPE

2. Agenda
Introduction
Toyota Way & TIBP
Operating Model IS
Toyota I_Site Case Study
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 2

3. Agenda
Introduction
Toyota Way & TIBP
Operating Model IS
Toyota I_Site Case Study
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 3

4. TOYOTA
GROUP
TICO
Toyota
Industries
Corporation
TMHG
Toyota
Material
Handling
Group
TMHE
Toyota
Material
Handling
Europe
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 4

5. TOYOTA MATERIAL
HANDLING GROUP
Toyota Material
Handling North
America
Toyota Material
Handling Europe
TMHG
MAIN
Toyota Material
Handling China
Toyota Material
Handling Japan
Toyota Material
Handling
International
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 5

6. TOYOTA MATERIAL
HANDLING GROUP
TMHG
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 6
TMHG
MAIN

7. TOYOTA MATERIAL
HANDLING EUROPE
TMHE
MAIN
Factories
Sweden
France
Italy
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 7

8. TOYOTA MATERIAL
HANDLING EUROPE
TMHE
MAIN
Products
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 8

9. Agenda
Introduction
Toyota Way & TIBP
Operating Model IS
Toyota I_Site Case Study
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 9

10. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
The five core values
The five core values of The Toyota Way are shared
and practiced by Toyota employees at every level in
their daily work and in relations with others. This is
how Toyota is able to deliver sustainable customer
satisfaction.
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 10

11. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
The five core values
Challenge – To maintain a long-term vision and meet
all challenges with the courage and creativity needed
to realize that vision.
Continuous
Improvement
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 11

12. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
The five core values
Kaizen – Continuous improvement. As no process can
ever be declared perfect, there is always room for
improvement.
Continuous
Improvement
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 12

13. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
The five core values
Genchi Genbutsu – Going to the source to find the
facts to make correct decisions, build consensus and
achieve goals.
Continuous
Improvement
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 13

14. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
The five core values
Respect – Toyota respects others, makes every effort
to understand others, accepts responsibility and does
it’s best to build mutual trust.
Respect for People
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 14

15. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
The five core values
Teamwork – Toyota stimulates personal and
professional growth, shares opportunities for
development and maximises individual and team
performance.
Respect for People
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 15

16. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
TMHE Training
 Mandatory for all employees in Toyota Material Handling Europe
 E-learning modules in Toyota Industries Business Practices
 Formal training in class room sessions
 Understand the PDCA cycle
 Problem Solving
 Drive & Dedication
 Complete an A3
 Project work & Learning seminars
 Hand in an assignment
 Follow-up on the job training
 KPIs & Reporting
 Daily work
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 16

17. THE TOYOTA WAY &
BUSINESS PRACTICES
TIBP
MAIN
TMHE Training
 TIBP training in Toyota Material Handling Europe
 Focus on problem solving and the PDCA cycle
 Language is English in the E-learning modules
 Class room training is done in English or in local language*
 TIBP training using simple and efficient tools & techniques
 1. Small teams
 2. Visualization (Mieruka)
 3. Specific, Measurable, Attainable, Relevant and Time-Bound (SMART)
*) Depending on the trainer and the nationalities
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 17

18. TIBP
MAIN
THE TOYOTA WAY &
BUSINESS PRACTICES
TMHE Training
 The TIBP is a common language for all employees in TMHE
 Benefits of implementing TIBP
 Clear communication
 Effective countermeasures
 Quick decision making
 Standardized work + Added value (Kaizen)
 Hoshin Kanri
 Drive & Dedication
 Genchi Genbutsu
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 18

19. Agenda
Introduction
Toyota Way & TIBP
Operating Model IS
Toyota I_Site Case Study
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 19

20. TOYOTA MATERIAL
HANDLING EUROPE
IS
MAIN
Information Systems
 Business Relationship Management






 Operations





Finance Systems
Business Solutions Systems
Service Market Systems
Parts Logistics Systems
Sales Systems
Online Systems
Applications Management
IT Infrastructure Services
Data Center Services
Shared Services
Local IT
 Modern IS organization based in Mjölby, Sweden and Prague, Czech Rep.
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 20

21. TOYOTA MATERIAL
HANDLING EUROPE
IS
MAIN
Information Systems
 Explanation of how IS organization is working with TIBP
 The Toyota Way – the corporate DNA that permeates and structures
the entire Toyota organization. This set of beliefs and core values
influence business practices and employees behavior within the
Toyota family every day
 Fundamental processes are built on standard frameworks
COBIT5
COBIT5
ITIL v.3
COBIT5
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 21

22. TOYOTA MATERIAL
HANDLING EUROPE
IS
MAIN
Information Systems
 The IS organization is using TIBP for problem solving






Clarify the problem
Break down the problem
Develop countermeasures
See countermeasures through
Evaluate both results and processes
Standardize successful processes
 Root cause analysis is a formal problem-solving process
 Increase availability & improve service levels
 Reduce costs and improve customer convenience
by reducing the number of operational problems
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 22
A
P
C
D

23. Agenda
Introduction
Toyota Way & TIBP
Operating Model IS
Toyota I_Site Case Study
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 23

24. TOYOTA MATERIAL
HANDLING EUROPE
I_Site
MAIN
Case Study
 The challenge for many material handling customers is to optimize their
truck fleets, improve the logistics processes and reduce the overall energy
consumption.
 Toyota I_Site collects data from the forklift truck, transmits the data to a
central database using wireless technology and the regular mobile
networks, without a need for installing software or hardware at customer
premises, then allowing this data to be analyzed by the customer over a
web interface.
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 24

25. TOYOTA MATERIAL
HANDLING EUROPE
I_Site
MAIN
Case Study
How it works
3G transmitter
on every truck
TMH servers provide
universal access
User access with high
security data protection
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 25
Ongoing advice
and support

26. TOYOTA MATERIAL
HANDLING EUROPE
I_Site
MAIN
Case Study
 Go To Market:
 First release
2008
Basic functions
 Second release
2010
Customer reports
 Third release
2013
Alerts and events
 The Toyota Way:
 Continuous Improvement
 Respect for People
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 26

27. TOYOTA MATERIAL
HANDLING EUROPE
I_Site
MAIN
Case Study
 Toyota I_Site is improving safety, reducing cost and increasing productivity
 The thinking behind Toyota I_Site is that of continuous improvement or Kaizen
 TMHE was awarded the 2013 European User Award in Enterprise Software
 TMHE is finalist in the 2013 UK IT Industry Awards for Project Excellence
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 27

28. Agenda
Introduction
Toyota Way & TIBP
Operating Model IS
Toyota I_Site Case Study
In Summary
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 28

29. TOYOTA MATERIAL
HANDLING EUROPE
Summary
 TMHE believe that the Toyota Way principles strengthen our work
and our organization
 Through a sincere implementation of Lean thinking the Enterprise
can move forward, with Kaizen and Innovation
 We will continue to become more competitive as we continue to
improve and optimize everything we do
 The Toyota Way provides us with requirements to set standards for
all staff to work towards
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 29

30. Thank you for attending
the presentation.
@HakanBorglund
Håkan Borglund
CIO Toyota Material Handling Europe
TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 30

31. TOYOTA MATERIAL HANDLING EUROPE
19/09/2013 - page 31