2. Port Installed Options Center (PIOC) ABDUL LATIF JAMEEL CO LTD

3. PIOC-Mission & Vision  Mission: To timely accessorize new vehicles with high quality and optimum cost, using Toyota Way in production.  Vision: To become a leading vehicle accessorization production line in the Toyota Network, using TPS and Toyota Way, to satisfy market needs.

4. PIOC- Plants Location Plant 2 JACS Warehouse Plant 1/3 Location: South Compound Location: National Distribution Centre (NDC) Location: COC City Main W/H area (m 2 ): 4,000 Sub W/H1 area (m 2 ): 4,000 Sub W/H2 area (m 2 ): 2,000 Total W/H area (m 2 ):10,000

5. PIOC-Plants Profile Plant 1 NDC Location 2208 m 2 Covered area 2001 Start Operation 89 No.of Productive 48No. of Support Staff 9000Average Production / M  Avalon, Aurion, Camry, Fortuner Innova,, Rav4, Hiace, Dyna, Coaster, Sequoia,  Terios, Sirion, Materia,  Lexus, Models Accessorized

6. The TOYOTA Way 2. Clarify the Problem 1. Initial Problem Perception T he Real Problem 3. Locate Area / Point of cause POC Direct Cause Cause Investigation Why Basic Cause and effective investigation 4. Why? Investigation of root cause ? Root Cause 5. Countermeasures 6. Evaluate 7. Standardize

7. Stall Type Plant 2 – Hilux Plant 1 - Camry Plant 3 – Land Cruiser Background 2008 TPS kaizen History

8. (PIOC) Accessorized Volume 201120102009200820072006200520042003 units 274000232,000203,650206,000163,308155,419129,73398,15683,603 Accessorized Vehicles 274000232,000212,332 188,000152,017128,171115,151106,020 Sales Volume Vehicle Year Background 2008 TPS kaizen History

9. Background The Disadvantages/Problems of Stall Type : 1)MUDA's causing time lost for installers :- arranging tools, vehicles and collection of parts from sub warehouse. 2)Difficult to control manpower movement. 3)Big variance in incentive for installers (SR 500 to 4000). 4)No planning. 5) Difficulties in quality control during the process. 6)Production based on individual motivation not team work (man of the month). Poor teamwork, communication & relationships. 7) High number of vehicles damages due to self driving, poor layout & flow. The Stall Type

10.  TMC Kaizen Div. agreed to support ALJ in implementing TPS  TMC Kaizen Team gave theoretical & On JOB Training to PIOC.  PIOC started TPS trial implementation in plant 2 ( HILUX ). The result was 25% improvement in productivity.  The success of TPS project in plant 2 encouraged PIOC to apply it in other plants.  TMC Kaizen team visited PIOC in early OCT. 08 and they appreciated the progress in TPS implementation. They gave recommendation in the areas of parts supply, 5S, Production Control Boards and safety. TPS Implementation Background

11. TPS philosophy Heijunka Averaged daily volume & mix Smooth production schedule Standard Work Kaizen Creative Idea Suggestion System 5S Visual Controls Kanban Just In Time Takt Time One-piece Flow Downstream Pull Jidoka Built-in quality Pokayoke 5 Why Harmony of man & machine Operational Excellence Best Cost, Quality, Delivery Empowered employees Customer focused culture TPS

12. 5 S Principles SORT Decide what is needed and what is not, and dispose of all items that are not necessary SET IN ORDER Provide orderly storage in the right place for all necessary items so that they can be easily found and used when needed SWEEP Maintain a clean worksite at all times in order to make work easier, safer, healthier and more satisfying STANDARDIZE Always keep work area orderly and clean SUSTAIN Continues Practice, Self respect, Initiative

13. Problem Description The increase in sales volume reflects directly to increase the production capacity/facilities and installers. 2008 TPS Kaizen History Background

14. Gap Analysis 201020092008200720062005 As per Stall Type 257,700233,500212,400188,000159,720129,000 Vehicle Sales 233000203,650207,085163,308155,419129,733 Actual acc. Volume 401375349311266226 Required Installers As per 2007 business plan SR 10,000,000 is budgeted to establish additional facility & recruit 38 installers to be able to match 212,400 sales in 2008 using stall type production. Background 2008 TPS kaizen History

15. The Main Disadvantages/Problems of Stall Type: 1) Low productivity (50 Veh./Month/Installer). 2)Poor space utilization (63 Veh/Stall/Month). 3)Low Q12 results (2.91 in 2007). Background

16. 2008 TPS Kaizen History Implementation of TPS to avoid building additional facility and recruiting more manpower: 1. Increase productivity by 25% (63 Veh./Month/Installer). 2. Enhance space utilization (71 Veh. /Stall/Month). 3. Improve Associates Engagement Index Q12 to be 3.11. 4.JIT parts Supply. Background

17. JIT Accessories installation (TPS) JIT Accessories installation (TPS) JIT Accessories installation (TPS) Final Inspection & Rope road test W/H Parts Confirmation TPS Implementation -Daily Planning N-2 N N-1 Invoiced & Selected Vehs. From VLD Invoiced & Selected Vehs. From VLD W/H Parts Confirmation W/H Parts Confirmation Pulling Vehs. From VLD to PIOC Pulling Vehs. From VLD to PIOC Parts Preparation Parts Preparation Trolleys Preparation Trolleys Preparation Puling Vehs to W/S Puling Vehs to W/S Dispatch to VLD Manpower & Skill Adequate Tools

18. Accessorized Area Pre Accessorized Area TPS Implementation

19. Trolley Design/Vehicle TPS Implementation Trolley/Kaizen Plant 3 Plant 2 Plant 1

20. JIT Parts Supply Trolley Buffer Area TPS Implementation JIT Parts Plant 1

21. TPS Implementation Parts Preparation Area Preparation area Plant 1

22. 2008 TPS Kaizen History Rope Test Area Plant 1

23. (TPS Gains in Productivity) GainFlat rate hrs for TPS Line Flat rate hrs for Stall Type SuffixModel 32%3.024.42GLX MRAurion 18%3.324.06GLX MRCamry 19%3.524.34ExecutiveCamry 9%1.922.11XLI 1.6Corolla 31%1.402.02FleetCorolla 30%1.402.00ExtremeYaris 35%1.002.22GLYaris 17%1.601.93GLHilux 29%3.605.04GLXHilux 4%7.507.84GXR3Land Cruiser 14%3.904.53VXR2Land Cruiser 44%3.035.39GX3Prado 52%3.036.29VX3Prado (25% Gains in Productivity) Results

24. The Quality Process

25. PIOC Department *VLD – Vehicle Logistic Department *JACS – Jameel Accessories Conversion Services *PD – Product Development *DACO – Domestic Automobile Conversion Operation *Marketing *ACCL

26. TMC Final Evaluation Visit to PIOC/ TPS Line Masumoto San visit

27. TMC Visit to PIOC/ TPS Line Furatani san mentioned that ALJ PIOC is Excellent in his visit last Nov-2009

28. 2011 Plan s Increase Production volume to meet ALJ sales requirements. s Automation Irregularity control system (Andon) system. s Install CCTV cameras to improve operational control. s Link the Visual Control Board with gate in/out data live input. s Improve vehicle flow and layout to reduce vehicles damage 10%. s TPS in PDI. s Improve staff engagement/Q-12 to (4.3) (2010 (4.1)) s Adopt environment standard & achieve ISO 14000 certification.

29. Thank You Thank You