Growing …. The Toyota Way Jim Bolte Vice President Toyota Motor Manufacturing Alabama Vice President Information Systems Toyota Motor Manufacturing North America

Agenda Growing in North America TPS and Information Technology Manufacturing Improvements 2

4 CAPTIN Toyota Motor Manufacturing Canada Toyota Motor Manufacturing North America NUMMI Toyota Motor Manufacturing, West Virginia TABC Toyota Motor Manufacturing, Kentucky Toyota Motor Manufacturing de Baja California Bodine Aluminum Toyota Motor Manufacturing, Indiana Toyota Motor Manufacturing, Alabama Toyota Motor Manufacturing, Texas 4

North American Growth: Sales 63% 5

North American Production (000) 1.66 M 6

North American Employment 37,351 7

Common Information Systems Toyota IS Strategies Make Common and Simple Connect and Integrate Common Information Systems Common Business Processes Standard, Networked Computing Infrastructure 8

Business Drives Technology Business drives technology, technology does not drive the business Technology must add value 9

IT Investment Maintain appropriate level of IT investment IT spending is less than 1% of total manufacturing revenue Toyota invests less in IT but continues to build high quality vehicles 10

Toyota Production System (TPS) Utilize TPS while taking advantage of technology Visual Control 11

Toyota Production System (TPS) Utilize TPS while taking advantage of technology Visual Control RCA (Root Cause Analysis) 12

Toyota Production System (TPS) Utilize TPS while taking advantage of technology Visual Control RCA Go & See “Genchi Genbutsu” 13

Toyota Production System (TPS) Utilize TPS while taking advantage of technology Visual Control RCA Go & See Motivation 14

Key Points Focus on Business Process Improvements FIRST Apply technology improvements to “efficient processes” Don’t automate inefficient processes Use technology appropriately – Don’t be “used” by technology! 15

Toyota Alabama $490 M 800 Phase I Phase II Phase III Total Product   Phase I Phase II Phase III Total Product V8 for Tundra V6 for Tacoma/ V8 for Tundra/ Sequoia Invest. $220 M $20 M $250 M $490 M Annual Capacity 120,000 130,000 150,000 400,000 TMs 350 150 300 800 16

Team Member Training

Team Member Training Nine weeks of new hire training Classroom, work conditioning and skill development 18

Allows TMs to select other views for the current process or other processes. 20

SKPI Report Weighted Score: 3 21

Standardized Escalation Procedure TOYOTA SUPPLIER 22

NED System Map NED System Map Order Daily Delivery Creation Change Notice Production Plan/Scheduling Production Sequence Parts Ordering (e-Kanban) Parts Logistics 23

Order Adjustment / Optimization Priority Build Windows NED Achievements Lead Time Reduction Order Adjustment / Optimization Priority Build Windows Enhanced Reporting Improved Usability Increases order / mix quality Balances Pipeline Increases capability and efficiency 24

NED Deployment Suppliers Unit Plants Vehicle Plants 25

Conclusion Growth will continue based on TPS Business drives technology, not the other way around Customer focus will continue to increase Our goal for the next few years is managing growth while improving operating efficiency 26