RFID Tracking Implementation for Supplier Chain Management at Toyota USA: Proposal of Development of Advanced TPS for Global Production Strategy

Abstract

In order to achieve simultaneous, worldwide high quality assurance and other global production developments, Advanced TPS was proposed as a global production technology and management model, especially designed to realize high productivity and cost performance in global production. On this model, the inventory management is the key method at any manufacturing facility operating with Just-in-Time (JIT). On the other hand, the current inventory systems at manufacturing facilities do not provide real inventory data. So out-of-stock conditions sometimes have caused major productivity losses by causing the production line to stop. Therefore, the authors have proposed to create component inventory tool, which RFID tag can be replaced onto the containers with the trial parts and thus both the supplier and main manufacturing facility. This tool could provide constant feedback to ordering, logistics, and assembly conveyance groups in order to maintain and improve current JIT system. Concretely, this can also provide current information on components being shipped by the supplier and list what items are available in the production area by part number and supplier. The effectiveness of this proposal has been verified into Toyota Motor Manufacturing, Texas (TMMTX), which is unique for onsite supplier locations. This has been proven that RFID can prove to be an efficient tool with which to track inventory and generate cost savings.