The largest vehicle assembly facility in Toyota’s extensive global production network is the Toyota factory in Georgetown, Kentucky, which I had the chance to tour last month. Since my last trip to Georgetown 15 years prior, the city had expanded significantly. It is the largest automobile assembly plant in Toyota’s global production network, at 8.1 million square feet. In addition to producing 550,000 automobiles annually, it can also generate more than 600,000 engines. In the visitor lobby is the very first Camry manufactured in 1988; nearly 11 million automobiles, including Camrys, Camry Hybrids, Avalons, Avalon Hybrids, and Lexus ES350s, have been made since that time. In addition to building engines and assembling automobiles, the more than 8,000 workers there also manufacture numerous suspension and engine parts. With more than 100 suppliers in the state of Kentucky alone, Toyota purchases parts from more than 350 different locations across the country.
The Toyota Production System, developed by Toyota, is credited with popularizing the concept of lean manufacturing.
It is helpful to look at some history to get some context for the importance of this system.
The last significant trade conflict the United States experienced started with Japan in the 1960s.
The nation was accused by American automakers of having protectionist trade practices, including high tariffs on imports from outside and domestic taxes that were biased against big cars like those produced in the country.
There was a lot of hostility, with Americans accusing one another of unfair trade tactics. Eventually, the Japanese Ministry of Trade and Industry implemented export restrictions on automobiles, trucks, and motorbikes, which temporarily appeased the United States. But the widespread perception that the Japanese were generally not subsidizing exports with a devalued currency “Many Americans gained a false sense of security about their own manufacturing processes and scale advantages as a result of playing fairly. This was particularly true for the production of compact automobiles, a challenge Detroit faced in the 1970s and 1980s. People had no idea that companies like Toyota would genuinely have a cheaper, more effective production technique.
The idea that manufacturers like Toyota may have genuinely created a superior production system was initially made popular by MIT’s International Automobile Program.
The Machine That Changed The World, a book that came out of the initiative, explained the lean production method of manufacturing, which is focused on streamlining production processes and getting rid of waste.
However, it took another ten years for the West to fully comprehend its ramifications.
After World War II, the Japanese auto market was small, and a wide range of automobiles were in demand, as the book describes.
Japanese producers were unable to compete on the same level as their counterparts in America or Europe due to a lack of capital in the economy.
Taiichi Ono, Toyota’s top production engineer, concluded that adapting Detroit’s manufacturing techniques would not work for them at all, so he began a more than ten-year experiment with alternative working methods.
Giving teams ownership over assembly procedures and even setting out time for the team to discuss methods to enhance the processes jointly and regularly were the first steps in this process.
He also notably understood that it was much preferable for workers to quickly halt the line if there was a problem rather than continuing the usual mass-production technique, which causes errors to accumulate.
He put in place an inspired by the San Francisco cable cars “Workers had a andon cord they could pull to stop the line.
A new method of grouping suppliers into functional tiers and straightforward methods of coordinating the flow of parts feeding the assembly activities so that they arrive just in time were eventually incorporated into the system.
The system developed to be particularly well-suited to addressing the shifting needs of consumers for dependable and high-quality products.
By the early 1960s, Toyota had largely figured out lean production and its production system, and the majority of its Japanese rivals had also embraced it.
Although Japanese manufacturers’ strategies varied somewhat, the MIT experiment found that, on average, these just-in-time methods required significantly less labor hours from employees, designers, technicians, and managers at all levels of the production chain to build a car of any given type.
The highest degree of quality, the lowest levels of work-in-process inventories, and the most flexibility to adapt to shifting market demands were all used in their accomplishments.
Simply put, they had a superior system.
When I visited Nagoya, Japan, a number of years ago, I had the chance to speak with Ryuki Araki, the former executive vice president of Toyota who had recently retired. Araki was one of the representatives dispatched by Toyota to Georgetown and served on the board of New United Motors Manufacturing, Inc. (NUMMI), a joint venture between General Motors and Toyota that produced Toyota Corollas and Chevrolet Novas (as its CFO). He told me how Toyota created a philosophy they called competition and partnership during the Japanese-American trade conflict. Even though GM was a rival, they believed that building a facility in the United States required building cooperative connections. Toyota provided their production system and the management team, and GM provided a closed facility in Fremont, California, along with its staff (who had been laid off). That operation was a resounding success.
There was intense pressure to enhance U.S. content so that Georgetown was not only a foreign-owned company when Araki relocated to Kentucky as the CFO of Toyota Motor Manufacturing (TMM, now TMMK) “screwdriver factory that put together components made in Japan.
According to him, numerous suppliers assist the auto industry, so building strong ties with them was crucial.
Toyota offered a lot of support to its suppliers if they wanted to expand, such as enhancing their production processes and imparting continuous process improvement and lean manufacturing techniques.
In Japan, they operated in that manner, therefore “That practice was brought to Kentucky.
Melissa George, a Toyota employee, is seen working on the assembly line on Thursday, February 18, 2010, at Toyota Motor Manufacturing, Kentucky, in Georgetown, Kentucky. Toyota said on Monday, April 10, 2017, that it will spend $1.3 billion to upgrade its expansive Georgetown factory, which produces the brand’s premium Camry sedans. While no additional factory jobs are being created, Toyota claims that the modifications represent the largest single investment the company has ever made at one of its current operations in the United States. (Ed Reinke, File AP Photo)
At Georgetown, the Toyota Production System is prominently displayed, and a tour of the enormous factory will astound you with its level of organization.
There isn’t much stuff lying around waiting to be used.
Parts and components are provided precisely when they are required.
Automated guided vehicles transport completed instrument panels to the main assembly line, engines leave the assembly area in perfect time, and the many elements needed to customize each vehicle are preassembled into kits and delivered at the precise moment they are required.
Coils of American-made steel are supplied to a startlingly small staging area every 25 minutes. Even raw materials are provided in small batches on a regular basis.
Since Henry Ford invented the moving assembly line and mass manufacturing, lean production has been the most significant advance in manufacturing systems.
It has been nearly universally adopted by manufacturers worldwide, and this is Toyota’s gift to the world.
This is the reason the Harvard Business School teaches about it.
Take a tour of this unique American factory if you’re anywhere around Georgetown, Kentucky.
In This Article...
Toyota’s size in Georgetown, Kentucky.
This expanding neighborhood in Kentucky’s Bluegrass Region is home to Toyota’s largest automotive manufacturing facility outside of Japan. The floor area of Toyota Motor Manufacturing, Kentucky (TMMK) is 7.5 million square feet, or 156 football fields. On the plant tour, though, you won’t have to worry about your legs growing tired because you’ll be travelling comfortably in one of their trams.
TMMK has a staff of roughly 7,000 workers that produce close to 2,000 high-quality vehicles daily. In Georgetown, two brand-new Toyota vehicles are created every 55 seconds thanks to the “takt time” on both of the vehicle assembly lines.
The well-known Toyota Camry automobile served as the basis for TMMK’s first vehicle. The Sienna minivan was built from 1997 to 2002, and the Avalon sedan was added in 1994. The Camry Solara coupe started going into production in 2003.
Stamping is where Toyota automobiles are first formed from enormous coils of cold-rolled steel. The sheet metal components that make up the car bodies are made from the cleaned, straightened, and stamped steel. The mechanical presses use hundreds of tons of force to mold the steel into a variety of pieces, including doors, hoods, and roofs.
The sheet metal parts are then transported to Body Solder, where workers and computer-controlled robots weld the metal together to create a finished body shell. The new car bodies then move on to the Trim, Chassis, and Final lines in Assembly via overhead conveyors after passing Paint.
Your tour guide highlights the cornerstones of the famed Toyota Production System as you move through TMMK. Examples of this will include kaizen, or continuous improvement, just-in-time parts supply, and the andon system, where team members can halt the production line at any time to resolve any issues or concerns with quality.
Current versions of the vehicles and engines made at Georgetown as well as the very first Camry made by team members in May 1988 are displayed in the TMMK Visitor Center. Additional interactive video exhibits and exhibits on quality, teamwork, the Toyota Production System, and hybrid technology are available in the visitor center.
Freebies include a refrigerator magnet featuring a Toyota car. 10-minute plant overview film that includes areas that aren’t covered by the tour is shown. Reserving Is Required: Yes, but only to the extent that there is room. Hours and Days: MonFri 10:00 am, 12:00 pm, and 2:00 pm; Thurs additionally 6:00 pm. Plant tour. Open on holidays. Mon-Fri 9:00 am-4:00 pm; Thurs until 7:00 pm; Visitor Center. Tours may be postponed or cancelled at any moment by Toyota. Spend 1.5 to 2 hours total for the plant tour, movie, and exhibitions. a minimum of First grade for general tours of the plant; fourth grade for school tours. no age restriction at the visitor center. Disabled Entry: Yes Group Maximum group size is 64 adults. Requirements Large gatherings must make reservations well in advance. Special Information: While the plant tour is taking place, photography, videography, and mechanical recording are not permitted. Gift shop: Offers branded golf shirts, tees, caps, and other apparel. similar hours to those of the visitor center. Take I-75 North to Exit 126 (Georgetown/Cynthiana) from Lexington. Right turn onto U.S. 62 (Cherry Blossom Way). At the Visitor Entrance sign, travel exactly 2.5 kilometers before turning left. Georgetown College, Kentucky Horse Park, Keeneland Racecourse, Calumet horse farm, and tours of Rebecca-Ruth Candies, Buffalo Trace Distillery, and Old Kentucky Candies are a few of the nearby attractions.
At TMMK, each vehicle produced undergoes more than 4,400 welds, of which 97 percent are carried out by robots.
The Toyota-Kentucky plant has a large number of staff workers who use specialized robotic arms to enter inside and up close to the automobiles to put parts in them.
A new Avalon receives the white-glove treatment from TMMK’s inspection team.
At its manufacturing location in Kentucky, TMMK also produces V-6 and 4-cylinder engines.
Toyota’s Georgetown, Kentucky plant makes Solaras, Camrys, and Avalons. Each year, TMMK produces roughly 500,000 automobiles.
At Toyota in Georgetown, Kentucky, how many people work there?
The largest automobile manufacturing facility in the world for Toyota, Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) is able to produce 550,000 vehicles and more than 600,000 engines per year. Two years after breaking ground in Georgetown, Kentucky, Toyota produced its first Camry in May 1988. Since then, Toyota’s assembly lines in Kentucky, where more than 9,000 people work full-time, have produced more than 12 million automobiles. In addition to the Camry, the most popular car in America, TMMK also produces four-cylinder and V-6 engines, the Avalon, Avalon Hybrid, RAV4 Hybrid, Lexus ES 300h, and Lexus ES 350. Since 1988, Toyota has contributed more than $150 million to a range of charitable and educational projects.
What does Toyota in Georgetown, Kentucky, get paid?
Georgetown has an average Toyota Team Member salary of $51,920 per year, which is 59 percent more than the national average.
11 data points, including direct employee feedback, user feedback, and historical and present Indeed job postings over the previous 36 months, were used to calculate salaries.
Please be aware that all pay ranges are estimates based on Indeed submissions from third parties. Users of Indeed are merely provided with these numbers for general comparison purposes. For an accurate compensation estimate, you should speak with the company as minimum wages may vary by jurisdiction.
What makes of automobiles are produced in Georgetown, Kentucky?
At the Georgetown factory, Toyota presently produces the Camry, Avalon, Lexus ES 350, Camry hybrid, and Avalon hybrid. At the facility, four-cylinder and V-6 engines are also produced.
Is Toyota a desirable employer?
Toyota employees on CareerBliss rate their employer 3.9 out of 5.0, which is the same as the overall average for all organizations. Finance managers, who received an average score of 4.8, and quality control inspectors, who received a score of 4.3, were rated as the happiest Toyota employees.
Is there a union at Toyota Kentucky?
The United Auto Workers (UAW) camp has been spreading rumors that workers at Toyota’s Georgetown, Kentucky, factory have “increased activities.” According to rumors, the workers at the aforementioned plant are uniting to join a union.
Toyota refuted the reports recently, stating that there are no indications that its Georgetown employees’ efforts to organize have risen. This declaration was issued in response to a rumor that Toyota planned to reduce wages at the mentioned plant.
The largest union in North America and the booming automaker don’t appear to be on the same page. However, Toyota also stated that they have no plans to lower the wages of the workers at the facility. This development comes after the UAW suffered a serious setback with the Big Three’s announcement that they would be reducing their workforces at General Motors, Ford, and Chrysler.
These three domestic automakers have already started to reduce their workforce. It should be recalled that the Big Three’s market share in the United States decreased as Asian brands led by Toyota gained traction.
The Big Three have chosen to reduce production in order to reduce the number of employees they have due to challenges they are experiencing. The UAW has vehemently opposed this move, arguing that these businesses cannot become profitable by eliminating workers. In addition to the Big Three, it appears that the union is now focusing on Toyota, which is quickly becoming the largest automaker in the world.
Toyota has been very successful in the American market, often setting sales records. Toyota will surpass General Motors before the year is out if the current pattern holds.
While the Big Three are beset by issues, Toyota is prospering and continues to create jobs in its U.S.-based factories. Indeed, the U.S. auto sector is supported by Toyota’s financial success.
While it is yet unclear whether Toyota employees are going to organize a union, several circumstances indicate that they are in excellent hands and might not be considering such a move. The biggest Japanese automaker gave its Georgetown employees bonuses worth up to $8,000 last year. The average pay rose to $30 per hour as a result. This is a big increase over the $27 per hour that the Big Three pledged to their respective proportion of UAW employees.