SUSTAINABILITY REPORT 2011 About the Report This report elaborates Toyota have opened our doors to an all- The target audiences for this report Kirloskar Motor [TKM] Pvt. Ltd. round perspective of our efforts are our internal and external India's, sustainability initiatives from towards sustainability using the G3.1 stakeholders comprising our April 2010 to March 2011. TKM's guidelines as a foundation to the employees, suppliers, dealers, manufacturing facility is located at reporting approach. Since our last customers, government, educational Bidadi, Karnataka. The content of Sustainability Report in 2010, we institutions, the media, local this report is drawn primarily from have established exhaustive community, Toyota Motor instances and processes applicable organization to consolidate data Corporation and other organizations to the fiscal year 2010-2011, and from all stakeholders. that are deemed to influence wherever necessary dates back to sustainability initiatives. the financial year 2008-09. Toyota We understand that stakeholders Kirloskar Motor published its first play a crucial role in the success of We welcome your feedback on this annual report in 2003 dedicated to our business. We have processes in report. Please email us at: environment initiatives and has been place to obtain frequent feedback [email protected] publishing sustainability reports from stakeholders about satisfaction since 2010. and expectation levels. This forms An online copy is available at: the key criteria in determining http://toyotabharat.com/inen/ Transparency and accountability are process improvements and work life environment/index.asp among top priorities of Toyota enhancement. Kirloskar Motor. With this edition, we
Cover design: The tree on the cover represents the Toyota Global Vision. The tree metaphor is employed to show the kind of company Toyota wants to be; the roots (Toyota values) enable Toyota to generate the fruits (always better cars, enriching lives of communities), and the trunk (stable base of business) is reinforced. 02 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT2011 TOYOTA KIRLOSKAR MOTOR Table of Contents cnmcPromne 80 10 Economic Performance 36 04 02 Lighting aBillionLives: SocialPerformance 22 Treading aGreener Path: Environment Performance 06 Company Profile Toyota Corporate Sustainability Philosophy Message from theMD About theReport uiesPrnr 66 21 17 Business Partners Community 61 Employees 52 Customers 38 Stakeholder Engagement Corporate Governance 03 SUSTAINABILITY REPORT 2011
Message from the Managing Director Challenge the Aftermath of Japan Crisis..."Q" (Quantity) and "Q" (Quality) I take this opportunity to express my hearty thanks Site Supplier's] Park to enhance operational to our stakeholders, for the continuous support. efficiency, to eliminate logistics CO2 emissions and Also, on behalf of Team Toyota India, I would like to packing material. express our sympathies to all who have suffered through the great tragedy of tsunami in Japan. I am We have been promoting eco-friendly technologies touched by the support offered by our team beyond our premises to our stakeholders also. The members, customers and business partners as we implementation of water borne painting at the body dealt with the crisis. I offer my sincerest gratitude and paint [B&P] workshops at Toyota dealerships to all. stands out as a good example of our commitment to sustainable growth. With the launch of Etios and Etios Liva, 2011 has been a year of jump-up for Toyota India operations. Continuing our mission to disseminate technical TKM saw a sharp rise in the complete operation skills among local community, the successful cycle, in terms of plant capacity, workforce, graduation of the second batch of students from production units, suppliers and dealers. The our in-house CSR initiative, Toyota Technical support of our employees and business partners Training Institute is yet another highlight in TKM's are the primary reasons for this achievement. I take CSR journey. this opportunity to welcome all our new customers, suppliers and dealer partners into the Toyota In the third year, the Greenathon III (Lighting a family. I am sure our customers are delighted with Billion Lives) was an even bigger success lighting the Toyota Q-Class experience. up more than 1.4 lakh lives in rural India. This initiative has produced a large wave of energy Our current annual policy of "Q (Quantity) and Q across India. (Quality)" also enunciates our constant drive and commitment towards sustainability in spite of The need for sustainability has reminded us that we adversities. can sustain environment, social and economic performance in more ways than we could imagine. With the growing business, we are aware of our We strive for constant enhancement of the lives of increased responsibility towards environment our business partners and the community at large. protection. We intend to mitigate our environmental We will continue with innovating ways to tread a impact and establish cleaner and greener greener path for our future generations. manufacturing operations. We have planted more than 125,000 saplings in our journey towards I thank my colleagues, the suppliers, dealers and creating a company that operates in harmony with all our stakeholders for their continuous efforts in nature. Our journey continues and we would like to meeting every challenge with speed, flexibility and expand our afforestation activity across our cooperation in our journey towards sustainability. suppliers, dealers and to the local community also. I am pleased to present the 7th edition of the We have brought in 7 suppliers into our OSS [On- Sustainability Report for 2011 and welcome your feedback.
Let's grow together
Managing Director
04 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Key highlights
Environmental performance
8 % reduction in manufacturing power consumption
12 % reduction in manufacturing water consumption
84 % coverage of dealerships compliant with ISO14001
78 % coverage of suppliers (core) compliant with ISO14001
Social performance 2009 2010 2011 Number of employees 3,511 5,637 7,735 Turnover rate for employees 3.7% 2.8% 2.5%
Economic performance 2009 2010 2011
Units Manufactured 46,251 63,269 75,099 Units Imported as CBU 492 504 689
Net Profit after Tax [Rs. in Mil] 1,226 3,093 2,216
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SUSTAINABILITY REPORT 2011
Toyota Global Vision
The "Toyota Global Vision" announced in March 2011, is an Rewarded with a smile articulation of what kind of company by exceeding your expectations we want to be - what kind of company we ought to be. It clarifies "Toyota will lead the way to the future of mobility, enriching lives our value, "we want Toyota to be a around the world with the safest and most responsible ways of company that customers choose moving people. and brings a smile to every customer who chooses it." The Through our commitment to quality, constant innovation and 'Toyota Global Vision' is a distillation respect for the planet, we aim to exceed expectations and be of our resolve at Toyota forward the rewarded with a smile. future. We will meet challenging goals by engaging the talent and passion of people, who believe there is always a better way."
Toyota Visionary Management The roots of the tree are the shared customers is creating "always customers, is stable base of values that have steered Toyota better cars" and enriching lives of business. Toyota's business from the beginning and underlain communities. Though the efforts, activities are based on the concept, our monozukuri. They are values we aim to become an admired and ensure sustainable growth by expressed in the Toyota precepts, in trusted company in the various fostering the virtuous circle. Always the Toyota Guiding principles and in regions where we conduct business. better cars Enriching lives of the Toyota Way, which are the basis communities Stable base of of our business. The trunk of the tree, underlying business. support for Toyota's creating 'Fruit' that Toyota provides for products that earn smiles from our
Always better cars Fruit Develop vehicles which Fruit Enriching lives of exceed customer communities expectations Contribute to communities Contribute to the future of mobility
Sustainable growth Constantly drive "always better cars" and "enriching lives of communities" by ensuring sustainable profitability under long-range perspective
Trunk | Stable base of business
Roots Toyota values The Toyota Precepts Guiding Principles at Toyota The Toyota Way 07 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
The Toyota Earth Charter
The Toyota Earth Charter (formulated in 1992, revised in 2000) is based on the Guiding Principles at Toyota formulated in 1992 (revised in 1997), and embodies Global Toyota's comprehensive approach to environmental issues. The Toyota Earth Charter has been adopted by about 530 affiliates worldwide to date. The Toyota Earth Charter
BASIC POLICY • Develop and provide products with top-level environmental performance • Contribution toward a prosperous 21st century society: • Pursue production activities that do not Contribute towards a prosperous 21st century society. generate waste Aim for growth that is in harmony with the environment, • Implement through preventive measures and set as a challenge the achievement of zero • Promote businesses that contribute toward emissions throughout all areas of business activities. environmental improvement • Pursuit of environmental technologies: Pursue all • Business partners are partners in creating a better possible environmental technologies, developing and environment establishing new technologies to enable the environment Cooperate with associated companies & economy to coexist harmoniously. • As a member of society • Voluntary actions: Develop a voluntary improvement Actively participate in social activities plan, based on thorough preventive measures and • Participate in the creation of a recycling-based compliance with laws, that addresses environmental society issues on the global, national and regional scales, and • Support government environmental policies promotes continuous implementation. • Contribute also to non-profit activities • Working in Cooperation with Society: Build close and • Towards better understanding cooperative relationships with a wide spectrum of individuals and organizations involved in environmental Actively disclose information and promote preservation including governments, local municipalities, environmental awareness. related companies and industries. ORGANIZATION IN CHARGE ACTION GUIDELINES • Promotion by the Toyota Environment Committee which • Always be concerned about the environment: Take on consists of top management (chaired by the president) the challenge of achieving zero emissions at all stages, i.e., production, utilization, and disposal.
Toyota Guiding Principles
Toyota's guiding principles, which were adopted in 1992, define the mission of Toyota and the value the company delivers to stakeholders.
Honor the language Respect the culture Dedicate ourselves Create and develop 1 and spirit of the law 2 and customs of 3 to providing clean 4 advanced of every nation and every nation and and safe products technologies and undertake open and contribute to and to enhancing provide outstanding fair corporate economic and social the quality of life products and activities to be a development everywhere through services that fulfill good citizen of the through corporate all our activities. the needs of world. activities in the customers community. worldwide.
Foster a corporate Pursue growth in Work with business 5 culture that 6 harmony with the 7 partners in research enhances individual global community and creation to creativity and through innovative achieve stable, long- teamwork, while management. term growth and honouring mutual mutual benefits while trust and respect keeping ourselves between labour and open to new management. partnerships. 08 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Toyota Way
The "Toyota Way", which embodies values, beliefs, principles and business methods at Toyota, is supported by two pillars: respect for people and continuous improvement. Together, they define how the people of Toyota treat others and perform their duties in order to deliver the company's values to customers, shareholders, associates, business partners and the global community.
We form a long-term vision, meeting challenges with Challenge courage and creativity to realize our dreams.
We respect others, We improve our business make every effort to Continuous Kaizen operations continuously, Respect understand each other, always driving for take responsibility and innovation and evolution. do our best to build Improvement mutual trust. Respect for
People We practice genchi genbutsu-go to the source to find facts We stimulate personal Genchi to make correct and professional decisions, build growth, share the Genbutsu consensus and Team opportunities of achieve goals at Work development and our best speed. maximize individual and team performance.
Toyota Environmental Action Plan
In accordance with the Toyota Earth Charter, Toyota Motor Corporation (TMC) has formulated the Fourth Toyota Environmental Action Plan, a five-year plan with medium-term goals covering the period from 2006 to 2010 to facilitate the promotion of environmental initiatives by each company.
Toyota Environmental Action Plan System
Guiding Principles at Toyota Universal Formulated in 1992, revised in 1997 guiding principles and policies Toyota Earth Charter (Environmental basic policies) Toyota Global Vision Formulated in 1992, revised in 2000
Mid/long- term Various environmental movement and direction measures and guidelines
Toyota Environmental Action Plan (Five-year plan) Daily operation 2006-2010 Fourth Plan Environment committees (products, 2011-2015 Fifth Plan production, resource recycling)
Annual policies, plans
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Company Profile
Toyota Kirloskar Motor Private Limited (TKM) is a joint venture between Toyota Motor Corporation and the Kirloskar Group, set up for the manufacture and sales of passenger cars and auto parts across India. Toyota Motor Corporation, Japan, holds eighty nine percent of the equity while Kirloskar Systems Ltd, India, holds eleven percent.
Toyota Kirloskar Motor's Corolla Altis, Fortuner and Etios network in India. manufacturing plant is in Bidadi, on model vehicles. The Fortuner has the outskirts of Bangalore City. It is been the best selling model in the Toyota's most anticipated new spread across 432 acres and has an SUV segment in India in 2010-2011. small car, the Etios was first output capacity of over 1,84,000 Also the Innova has been the best launched in December 2010. The vehicles per annum. Commercially, selling model in the MPV segment Etios has been very well received Toyota Kirloskar Motor has more for the past six years in succession. and is expected to form a than 150 independently owned We also import and sell the Camry, substantial part of the product dealerships spread across 96 cities. Land Cruiser, Prado and Prius market share for TKM. models as CBUs [Completely Built TKM manufactures the Innova, Units] throughout our dealer
During the reporting period, TKM has commissioned the second plant at the Bidadi location. Plant II began manufacturing of the small and mid size range passenger cars from December 2010 onwards. During the reporting period, the new plant started the production of Etios model passenger cars [both hatchback and sedan].
A notable feature of the newly commissioned plant is that it has been built based on the "Eco-factory" concept in keeping with the global drive to minimizing the environmental impact from the manufacturing operations.
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Product Line-up
ETIOS L QClass HATCH: LIVE TOMORROW TODAY.
ETIOS QClass: World First, India First ...My first
Corolla Altis Genius Inside - Gorgeous Outside
Fortuner Presenting: The Art of Power Innova Drive to precious times
Prius Leading the Hybrid revolution: Camry shaping the future of cars Luxury beyond Excellence
Land Cruiser The Pride of the World
Prado All-terrain Luxury
1. Corolla Altis ,Innova, Fortuner, Etios & Etios Liva model automobiles (manufactured in India) 2. Camry, Prado, Land Cruiser 200 and Prius (imported into India as Completely Built Units) 3. Manufacturing / Trading of service parts for the above models 12 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Key Milestones of Toyota in India:
Initiated as a successful joint decade has diversified into the mid- manufacture of Toyota's small car in venture between the Japanese range luxury and SUV segments. As India. Toyota Motor Corporation and the a first of its kind venture by Toyota, Indian Kirloskar group, TKM has TKM has started the emerged as a key player in the automobile industry over the past decade.
Toyota Kirloskar Motor took off in India with humble beginnings in the MPV segment and within a
2010 December 2010 December
2009 August
Etios launch 2009 June Prius launch in India
Fortuner Launch 2008 July 2001 April 2003 Afforestation Day – January 21st June
2005 Plant 2 foundation February laying
IS0 14001 Certification Corolla Production Started 2007 August 1999 December
Innova Production Started
1997 TTTI Inauguration
Qualis Production Started 1997 August
Construction of TKM START Establishment of TKM 13 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
A bird's eye view of the Toyota Kirloskar Motor, Bidadi manufacturing facility TKM is situated in the Bidadi Industrial Area, which has been earmarked by the Government as an industrial area development project. No natural biodiversity habitats are affected by the location of the manufacturing facility.
1
2
4 3
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Legend: 4, Afforestation Zone 1, Toyota Technical Training Institute [TTTI] 5, Plant 1
2, National Parts Centre [NPC] 6, Plant 2
3, Test Track 7, On-Site Supplier's Park [OSS]
7
6
5
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Awards and Accolades
TKM was awarded the BEST EXPORTER AWARD for 2010-11 by the Federation of Karnataka Chambers of Commerce and Industry.
The award was received by Mr. Shekar Viswanathan Deputy Managing Director, TKM from Mr. Anup K Pujari, IAS, Director General of Foreign Trade.
TKM won the Golden Peacock Environment Management Award 2010 in the Automobile Sector category in recognition of its significant achievements in Environment Management System. Mr. Mahesh N Salkar, Vice President, TKM received the award from Mr. Ola Ullsten, Former PM, Sweden and Chairman, World Council For Corporate Governance, and Dr. Madhav Mehra, President, WCFCG [left]
TKM won the CII-ITC SUSTAINABILITY AWARD 2010 for the second consecutive year in the Large Business Organizations category in recognition of significant achievement in Environment, Social and Economic dimensions.
Mr. Parameswaran Balakrishnan, General Manager (HRD) TKM received the award from Mr. Pawan Kumar Bansal, Honorable Union Minister for Water Resources and Parliamentary Affairs, Government of India.
TKM was awarded the Best Safe Industry [Large Scale Industries Category] by Department of Factories and Boilers, Government of Karnataka.
The award was received by Mr. Raju B Ketkale, General Manager, TKM from the Honorable Minister of State for Labour Mr. BN Bache Gowda.
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Corporate Governance TKM recognizes that good transactions and in compliance with corporate culture that values governance is a sine qua non for all laws and regulations. The innovative ideas, continuous sustainability. The value statement, company has established internal improvements and nurtures a code of ethics and internal control control mechanisms to ensure the commitment to the environment and mechanisms define our value observance of the norms of corporate to also build long standing system and reflects our culture and governance and believes in a system relationships with the stakeholders commitment to the values of driven performance with the highest to remain a trusted corporate corporate governance. priority given to these systems. citizen, TKM faithfully abides by the following Vision and Mission Toyota Kirloskar Motor promotes a statements. culture of high ethical standards, TKM Vision & Mission integrity, transparency and To enhance the quality of daily accountability in all our business operations, inculcate a unique
Vision Mission
Delight our customers through Practice ethics and transparency in all our business innovative products, by utilizing operations advanced technologies and services Touch the hearts of our customers by providing Ensure growth to become a major products and services of superior quality at a player in the Indian auto industry competitive price and contribute to the Indian Cultivate a lean and flexible business model throughout economy by involving all the value chain by continuous improvement stakeholders Lead Toyota's global operations in the emerging mass Become the most admired and market respected company in India by following the Toyota way Create a challenging workplace that promotes a sense of pride, ownership, mutual trust and teamwork Be a core company in global Toyota operations Create an eco-friendly company in harmony with nature and society Through these activities establish a superior brand image in India. 17 TOYOTA KIRLOSKAR MOTOR Toyota Kirloskar Motor Private Limited Policy for 2011-12 "Q (Quantity) & Q (Quality)"
To maximize customer happiness through To optimize & secure all stakeholders capability quality products & service. through collaborative projects based on the Toyota Way. To achieve sustainable profit through conscious effort of all stakeholders and strategic product To develop agile & flexible workforce through development. systematic human development.
To establish robust corporate governance & To Enhance Toyota image in the society through promote the awareness. Eco products & CSR activities.
Challenge the aftermath of Japan crisis……
Corporate Governance Environment Corporate Governance TKM has initiated bold steps to enhance the corporate governance environment. During 2010 a high level task force was formed to assess the governance status and Governance Governance Governance recommend a revamp of the system. The committee Culture Structure Process submitted its report in December 2010. Based on the report, a Corporate Governance [CG] Division was formed. > Value Statement > Corporate > Enterprise Risk Governance Divn Management (ERM) The task of the CG division is to establish good governance in the company and educate all stakeholders. In this > Vision and Mission > Audit Committee > Internal Audit context many initiatives are being taken. The CG > Code of Ethics > Whistle Blower > SOX Controls environment in TKM is depicted in the schematic at right. Committee
Value Statement TKM has released the value - superiors, subordinates, statement for the company after suppliers, dealers, local HONESTY due deliberations and with the community, public and I will be honest to understanding of all stakeholders. government. The broad areas of my profession in spirit, word and action. These are the core values that are coverage are legal compliance, to be cherished and imbibed by its conflict of interests, mutual trust members at all times in their and team work. HUMILITY personal and professional life. The I am proud about myself value statement was released by Internal Control and I will treat everyone the senior management involving with same respect that I expect. all functional heads. An oath is Mechanism taken by all team members to inculcate these values. TKM practices a risk-based, HARMONY focused, internal audit system. I will work with team TKM uses the services of an spirit and will not live at Code of Ethics the cost of others. external audit firm so that the independence of the auditor is Toyota Kirloskar Motor has a maintained. Critical issues of comprehensive Code of Ethics COURAGE audits are reported to the Audit based on the guiding principles of Committee on a half yearly basis, I will work for continuous Toyota. The values along with improvement to lead enabling the management to take Code of Ethics go a long way in from the front amidst all corrective actions. TKM also adversities. establishing the company as a conducts SOX audit as a part of good corporate citizen. The code Toyota Motor Corporation's global clearly charts out the manner in ACCOUNTABILITY audit requirement. which the employees of the I will take ownership for all my actions. company should interact with internal and external environment 18 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Whistle Blower Policy: Effective implementation of Whistle Blowing System
As a company which encourages and respects Who can report? professionalism, honesty, integrity and ethical behaviour, a "Whistle Blowing System" is in place at Toyota Kirloskar Motor to give an opportunity to all stakeholders to fearlessly report any unethical behavior noticed by them. The scope of coverage is vast, channels provided for reporting are many and an ombudsman has been appointed to receive and Employee Dealer Vendor investigate the issues with the advice of a Whistle Blowing Committee consisting of the senior How to report? management. Channels for Reporting
Whistle Blower System Whistle Blower Placed at different TKM Drop Boxes locations What can be reported? Toyota Kirloskar Motor Financial Non - Financial Others Dedicated post (Ombudsman) Related Related box PO Box No. -19 Ramanagara - 562 159
Fraud Sexual Harassment •To promote and Bribery Misuse of Power improve WBP Bias/Discrimination based Toll free 1800 3000 00 19 •To bring on:
Board of Directors
The Board of Directors at Toyota practices, corporate social important committees at the Board Kirloskar Motor forms the highest responsibility, environmental and level to review significant policies governing body, which is sustainability initiatives. Further, and activities and make responsible for corporate the Board plays a vital role in recommendations in their governance and represents the overseeing the compliance of legal respective areas. interests of our stakeholders. The and operational requirements. Board provides strategic guidance and frequently reviews corporate TKM has established three policies, regulatory Audit compliance, significant Committee management decisions and overall performance 7 Executive of the organization. Directors The Board comprises of BOARD OF Board Level Remuneration seven executive directors DIRECTORS Committees Committee and five non-executive 5 Non- directors who meet at executive least once in every three Directors Share months. The Board of Transfer Directors provide direction to the Committee management on labour 19 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
TKM's Hierarchy:
Toyota Kirloskar Motor has a strong promotes them effectively. The Marketing and Production. The organization that takes up organization is mainly divided under details have been mentioned in the sustainability initiatives and three heads, namely Commercial, chart below.
Managing Director
Deputy Managing Deputy Managing Deputy Managing Director Director Director (Commercial) (Production) (Marketing)
Corporate Governance External Affairs and CSR Product Design and Marketing Development Business Planning Legal & Secretarial Business development Quality control Quality Assurance Information System Production control & Conversion and Accessories Customer relations logistics Administration Plant Administration Sales Human Resource Mgmt Imports & Exports Dealer Development TTTI Production Engineering Customer Service Accounting and Services
Plant Engineering Cost & Profit Management
Production Plant 1 & 2 Purchase
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Stakeholder Engagement
Any individual or organization affected by Toyota Kirloskar Motor's operations, or whose activities affect our sustainability trends is perceived as a key stakeholder of the organization. Following is a schematic representation of the perceived Stakeholders of TKM.
Customer: Toyota Kirloskar Motor desires to be a company that is chosen by customers. Our key philosophy is "Customer First". Every Team Member (employee) of the organization is trained on practices to ensure that the "Customer First" approach is inculcated.
Employee: Employees are the most significant stakeholders of the organization. We regularly organize events to engage employees in communication, involvement and participation in addition to rewards and recognition to ensure that we keep our personnel motivated and happy.
Business-Partners: We engage with our business partners i.e., suppliers and dealers towards achieving sustainability and E DER NGA promoting mutual growth. Periodic meetings OL G and conferences help us understand each H E E M other and gain feedback to ensure customer K E N satisfaction. A T T
S Community: Two key factors influence our contribution to the community. First, that manufacturing vehicles meet the needs of society and enrich people's lives. Second, we are rooted in the communities we serve by creating employment, developing skills and infrastructure and thereby contributing to society.
Regulatory Authorities: At TKM we try to meet the intent of the regulatory requirements and not just compliance. TKM has established and maintained good compliance conditions to regulatory authorities that affect business operations. The support of such authorities is critical to successful operations and business continuity.
Toyota Motor Corporation: The Toyota Motor Corporation [TMC] plays an integral role in supporting Toyota Kirloskar Motor [TKM] with product design and business process improvement. TKM has imbibed working principles from TMC to build quality products with a streamlined approach.
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Environment Performance: Treading a Greener Path Toyota Kirloskar Motor has focused on achieving The core idea is to promote environment friendly harmony between its manufacturing activities and the operations among all our stakeholders. In a significant environment, based on the concept of 'A plant that achievement, TKM has been successful in promoting ISO optimally utilizes natural resources while operating in 14001 to 78 percent of its suppliers and more than 84 harmony with the natural environment.' percent of its dealers in 2009-2010.
In concurrence with Toyota's Environment Action The external auditing agency has awarded TKM with zero guidelines, TKM has come up with its own set of non-compliance for five successive years for the highest initiatives towards promoting sustainability at the degree of abidance to EMS (ISO 14001:2004). manufacturing site in India. This section elucidates the activities taken up at the manufacturing site at Bidadi, Bangalore in detail. Toyota EMS Concept:
The Toyota EMS (Environment Management System) holds the key to environment management efforts across Toyota affiliates and at TKM alike.
Toyota EMS concept is applied to drive a continuous performance improvement cycle in line with corporate policies and strategies and site specific objectives. The key elements of the EMS system are 'compliance/no complaints' and 'environment risk mitigation'.
The Environment Management System (EMS) has been used effectively in order to achieve the objectives of environment policy. EMS forms the backbone of our commitment towards reducing our carbon footprint and we have been re-certified for ISO 14001:2004.
In a pioneering effort, TKM has been strongly promoting ISO 14001 certification among its suppliers and dealers.
TKM Environment Policy
As a good corporate citizen, we are Establish and review this philosophy and it is our hope committed towards the protection environmental objectives and that, you, our Team Members, of the environment by minimizing targets annually to ensure suppliers, customers, dealers and impact on environment through better environmental neighborhood share our pollution prevention, conservation performance through commitment in preserving a very of natural resources and continual proactive continual valuable resource - OUR improvement. improvement activities. ENVIRONMENT.
To support this commitment, our Establish programs and policy is to: conserve energy, natural resources, flora, fauna and Proactively promote build a green environment, environmental awareness within and surroundings as a and knowledge among Team part of our policy. Members through continual education and job specific We recognize the importance of training. continual improvement in environment performance while Ensure compliance with legal creating economic growth and as well as other requirements maintaining competitive to which our company advantage. We are committed to subscribes.
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TKM Environment Committee
A strong set of basic principles and TKM's Environment Committee is representatives from all functions values guided by the Toyota Earth headed by the Managing Director, across the organization. A team of Charter leads TKM in its continuous and constantly guided by the Deputy environment engineers centrally efforts to operate in harmony with Managing Director, division heads co-ordinates the progress of nature. TKM's environment initiatives and incorporated by individual environment related activities of the are constantly furthered by the top department heads and department plant along with the environment management, which have made TKM representatives. The Environment sub-committees. the frontrunner in the region. Committee comprises
Company-wide Leader Managing Director
Company-wide Promoters Deputy Managing Director Top Management
Co-ordination by Safety and Environment Department
Organizational Structure:
Sub- Manufacturing Purchase Logistics Customer Communication Committee Sub - Sub - Sub - Service Sub - committee committee committee Sub - committee committee
Ensuring Zero Supplier ISO Scope CO2 Emission DERAP Promotion Promote TKM Non - 14001 of Work Reduction ISO 14001 Envt. and CSR Conformance Certification. (WWTP, Air, Packing Material Certification Commitment Green Purchasing Soil) Efficiency Guidelines
TKM Environment Organizational Structure: Designed to cater support to entire community in terms of Environment protection
Environment Performance Management
With the aim of operating in pollution and reduce energy at summarized in the following harmony with nature, TKM aims to every possible opportunity. We sections. utilize resources wisely and reduce continuously strive to minimize our waste from its operations. We have carbon footprint and improve our Note: The key performance been reporting our resource environment. indicators are quantified by units utilization and waste generation which are usually based on the per data from our site in our annual Our periodic internal audits and unit measurement over the entire sustainability publications. external audits have strengthened year. our environment management To guide our actions in this system. Our environmental direction, the TKM Environment performance under various key Policy commits us to control indicators in the last three years is
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TKM Five Year Environment Action Plan
TKM's Environment Committee, in inception. These five year gives details of the various action the course of planning and environment action plans are items and goals, and the managing the organization's intended to serve as the guidelines performance data for the reporting environment performance, has been for all activities from an period. implementing five-year-plans since environment perspective. The table
Action Item Specific action items & Goals 5yr action plan status - FY2010
Target Actual Production:
Energy Reduction 4% Redn. 4% Redn.
Reduction in electricity consumption. Reduce CO2 512 kwh/veh 493 kwh/veh emissions in (Purchased+generated) (kwh/veh) 20% production and based on Current year status logistics activities of Reduction in LPG consumption. (kg/veh) 27.84 kg/veh 25.91 kg/veh each country and 20% based on Current year status region. Reduction in energy. (Total of Electricity + 3.22 GJ/veh 3.1 GJ/veh LPG in GJ/veh) 20% based on Current year status. Logistics :
Reduction in emission of CO2 /unit 15% 0.55 ton/veh 0.54 ton/veh reduction based on 2006 values
Production: Increase Yield ratio 69% 71.8%
Haz Waste reduction 4% 4%
Reduction in generation of Hazardous Promote the waste (kg/veh). 20% based on Current year effective use of 7.6 kgs/veh 7.03 kgs/veh status Chemical sludge+Phosphate resources to further sludge+Paint sludge) contribute to the realization of a Non-Hazardous Waste Reduction 2% 2% recycling based society Reduction in generation of Non Hazardous 14.41 kgs/veh 25.51 kgs/veh waste (Miscellaneous solid waste) by 20% based on Current year status
Logistics :
Reduction of packaging and wrapping 100% returnable packaging for all materials local parts
Initiatives to promote Reduction of water consumption by 10% 2% 2% water conservation based on current year status (m3 /veh) 4.46 m3 /veh 3.9 m3/veh
Initiative to reduce VOC reduction 48.5 gm/m2 41.6 gm/m2 VOC emissions
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Production Trends and Environment
The market condition for Toyota parameters as they are related to During the reporting period, the vehicles in the Indian automobile fixed manufacturing demands. production trends saw a marginal sector was favorable in 2009-10 and During the reporting period, the increase due to the addition of the has been positive in 2010-11 also, production volumes showed an new small car, Etios in the newly consistent with the global and local upward trend representing an commissioned plant. TKM intends automobile markets. increase in resource consumption to ramp up the production volumes in terms of increased energy and while minimizing environmental This has a direct influence on resource use and an increase in impact. environment performance waste generation.
Production Trend (Overall) 70000- 75099 63269
60000-
50000- 46251
40000-
30000- Production (veh/year) Production 20000-
10000-
0- 2008-09 2009-10 2010-11 Resource Consumption Efficiency
Energy and resource conservation Electricity energy required to produce a form the basic responsibility of any vehicle decreased by 8.3 percent to corporate aspiring to be TKM's electricity consumption in 493 kWh per vehicle. In 2010-11, sustainable. Balancing the ever the production area has decreased TKM focused on energy saving increasing consumption of as compared to last year. By the activities along with optimum plant resources and the consequent CO2 end of 2010, the average amount of capacity utilization. emissions with economic development is a major hurdle towards achieving environmental 800- sustainability. TKM promotes Electricity Usage Trends 701 energy conservation activities at the 700- manufacturing plant by embracing the five year action plan which sets 600- the annual reduction targets for all 538 environment parameters. 493 500- Managing these factors and 400- studying their effects on the environment to stay eco-friendly is a vital part of our Environment 300- Management System. We carefully [kWhr/veh] Electricity track trends and usage statistics in 200- concurrence to the saying 'what gets monitored, gets managed'. We 100- also make every effort to reduce resource and energy consumption 0- and limit waste generation. 2008-09 2009-10 2010-11 26 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Some of the key kaizens [minor but and optimization diesel generators, resulting in a continuous improvement initiatives] decrease in on-site CO emissions. 3) Separation of high and low 2 during the reporting period were: This is after the onset of the pressure compressed air lines dedicated 220kV power supply 1) Variable frequency drive (VFD) in the plant provision from the Karnataka Power installation for varying load Transmission Company Limited requirements During the reporting period, TKM has cut down on its inhouse [KPTCL] grid. 2) Illumination standardization electricity generation, in this case
Water During the reporting period, the implementation of best process membrane bio-reactor [MBR] and a specific water consumption for technology such as membrane bio- reverse osmosis unit. production decreased by 12 percent reactor (MBR) and reverse osmosis as compared to the previous year, to (RO) treatments that allow the In a unique effort at the new plant, reach a minimum of 2.9 m3 per recycling of wastewater. emphasis is made on segregating vehicle. Water usage levels, like the waste streams from the source those for energy, were affected by Water Conservation based on strength of the waste the increase in production volume. water and to treat them accordingly. This has ensured that there are no Considerable efforts were made The process of treated waste water fluctuations during treatment and towards monitoring and recycling for production processes treated waters are well compliant to standardizing variable and fixed load has been in place at Toyota disposal requirements. We also consumption. Kirloskar Motor's Plant I and will be ensure that water use for operations continued in Plant II as well. The TKM continued to target the does not affect water sources second plant will have a water elimination of unnecessary water adversely. recycling rate of up to 40 percent. usage through kaizen and by the The recycling process employs a
Water Consumption Wastewater Treatment Plant
4.5- 4.03 4.0-
3.5- 3.3
3.0- 2.9
2.5-
2.0- Water (m3/veh] 1.5-
1.0-
0.5-
0- 2008-09 2009-10 2010-11 Steel Steel, historically has been the true particularly with respect to resource constitutes up to 23 percent of the driver for industrialization across the consumption and global warming. weight of the final finished product. globe. It forms the major raw The use of steel at TKM begins with material used in the automobile Steel Yield Improvement de-coiling and cutting processes, industry. A car's body has to be the both of which are carried out by an epitome of safety, stability, durability Steel has been a very substantial on-site supplier. and consistency. Steel usage also raw material for the passenger car has an environment impact, automobile industry where it 27 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
TKM's objective in reducing Steel yield refers grossly to the ratio of manufacturers. The changes wastage is to reduce the carbon steel that goes into the making of implemented in these kaizens have footprint from steel manufacturing. the automobile to the total steel led to the reuse of approximately As a result of an inhouse study on procured. The team devised a 180 tonnes of steel and a significant existing utilization patterns and three-tier solution that consists of reduction of CO2 emissions every brainstorming sessions with team kaizen or continuous improvement year. We manage material usage by members, suppliers and the steel at various levels, namely the TKM's maximizing utilization efficiency manufacturers came up with ideas press shop, the steel supplier and and not through the use of recycled to increase steel yield ratio. Steel non-auto parts suppliers and materials in products.
Steel YYieldield Ratio
75- 71.83 70.17 70- 69.53
65-
60- Steel Yield Ratio [%]
55-
50- Press Shop 2008-09 2009-10 2010-11
Liquefied Petroleum Gas (LPG)
Liquefied Petroleum Gas (LPG) compared to the last financial year. period. Though we do not employ serves as the prominent primary any renewable sources of energy, energy source for heating in ovens Optimization of oven start-up and we have processes and work and boilers at TKM. We have been shut down has been one of the cultures in place to ensure able to sustain a decreasing per path-breaking improvements that maximum possible reduction of unit consumption trend as were taken up during the reporting energy use.
LPG Consumption LPG Yard
31- 29.8 30-
29- 28.97
28-
27- LPG (kg/veh ) LPG (kg/veh 26- 25.94
25-
24- 2008-09 2009-10 2010-11
28 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Minimizing Effluents, Emissions and Waste Emission Reduction: Volatile Organic Compounds:
While there is no mandatory painting process. With this end in oxidizers (RTO) ensures destruction legislation for mitigation of VOC view, we have introduced water- of VOCs emitted from painting emissions, it has been a part of borne paint technology at the new operations. Toyota's global environment policy production facility, Plant II. Further, to reduce VOC emission from the the use of regenerative thermal
Regenerative Thermal VOC emission Oxidizer [RTO]
55-
50- 45.1 45- ) 43.2 2 41 40-
VOC (gm/m VOC 35-
30-
25-
20- 2008-09 2009-10 2010-11
Waste Minimization hazardous waste. However, we wastes. TKM also has no history of would like to draw the reader's accidental spills or has had any TKM has resolved not to add to the attention to the fact that the waste action taken against it for non- growing global quantities of waste under this category is subjected to compliance with environmental through reduction and recycling of complete material recovery and/or laws and regulations. waste material. We aim to achieve recycling. zero hazardous waste to landfill We strictly comply with the legal consistent with the Toyota earth requirements restricting trans- charter. boundary movement of hazardous We have been sending hazardous wastes to co-process at the cement plant to realize the philosophy of Waste Generation Trend "zero hazardous waste to landfill". Hazardous Waste Other initiatives towards hazardous Non Hazardous Waste waste reduction include the 30- establishment of a solar drying 7.2 facility to reduce excess moisture 25- 5.9 content in hazardous wastes. 20- 8.0 There has been an increase in the 15- non-hazardous waste quantity 10- resulting from the introduction of a (kg/veh) Waste 14.5 16.7 25.2 new production facility and a new 05- model. With the introduction of the Etios, the packing material waste 0- contributed to the increase in non- 2008-09 2009-10 2010-11 29 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Success Stories: Environment Conservation initiatives TKM has been promoting energy key kaizen [continuous high value adding kaizens by the conservation initiatives to improvement activities], most of grassroot level work groups continuously improve the which have been initiated by the indicate the high degree of human environment performance. This working group members development among the workforce. section shall elucidate some of the themselves. Generation of such
Energy Saving in MBR operation through reduction of blower running pressure
The waste water treatment step which is conventionally fulfilled by Owing to the variable requirements involving advanced but energy Pressure relief valves [PRV], by of the wastewater flow and oxygen consuming Membrane Bio reactor maintaining the supply pressure. requirements, the implementation [MBR] involves air blowers running of Variable frequency drives has 24x7. VFD is installed to supply air at yielded excellent results in power required pressure. This is achieved saving and process control alike. There are continuous variations in by setting the frequency of motor MBR air pressure requirements using VFD.
BEFORE KAIZEN AFTER KAIZEN Train 1 Train 1 FREQUENCY FREQUENCY FREQUENCY FREQUENCY 50 HZ 50 HZ 40 HZ 50~25 HZ BLOWER-A BLOWER-A STAR STAR Train 2 VFD VFD Train 2 DELTA DELTA BLOWER-B PANEL-A PANEL-B BLOWER-B PANEL-A PANEL-A
- Blower for the Aeration is running at 50Hz frequency. - VFD installed & Blower frequency set to 40 Hz. - Pressure reduced using PRV & supplied. - PRV operation eliminated - Daily power consumption, 528 kwh/day - Daily power consumption, 288 kwh/day
Water Conservation initiative
Toyota Kirloskar Motor, has been BEFORE Wastewater treatment system continuously promoting water 100% conservation efforts in all Tap water processes. Towards this end, many kaizens have been implemented to TKM ensure that TKM adheres to its Flush toilet system “Zero Discharge” policy. In order to utilize the treated water effectively, Gardening and measures like re-use in toilet Afforestation 100% utilization of flushing, irrigating the mass treated waste water afforestation project and gardening.
As major sustainable plant AFTER initiative, we have implemented the 40% Water reused for production MBR [Membrane Bio Reactor] and RO [Reverse Osmosis] in our existing and new plants. Wastewater treatment system Since the RO treated wastewater 100% meets the quality requirements as Tap water that of freshwater, it is being Flush toilet system currently being re-used back into TKM the production process. Recycle ratios up to 40% are being taken up, Gardening and Afforestation 60% utilization of thus reducing the wastewater treated waste water 30 output to 60% of the original. TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Waste reduction by Reducing the Ply of Packaging material
Used packing materials form a strength constant. This kaizen This change in packing material major portion of waste in parts involves reduction of excess layers of specification yielded significant logistics activities. Kraft paper from 5 ply to 3 ply, while reduction in waste generation being consistent with strength quantities with virtually zero In this kaizen thickness of carton box requirement of the packing material. investments. was reduced while keeping the
Before : 5 Ply After : 3 Ply
1st layer – Paper Sheet 1st layer – Paper Sheet 2nd layer - Flute 2nd layer - Flute 3rd layer – Paper Sheet 3rd layer – Paper Sheet 4th layer - Flute 5th layer – Paper Sheet
Establishment of Solar Sludge Drying Facility
• Toyota promotes the policy of higher Haz. Waste volumes and reduce excess moisture by up to “Zero Hazardous wastes to cost of disposal. 40%. Landfills”. Towards reducing this excess Solar Sludge Drying Facility Towards this initiative, TKM has residual moisture content, TKM been disposing its hazardous has implemented both source wastes through an innovative moisture reduction kaizens and process of “co-processing” at ACC establishment of Solar Sludge Cement kiln at Wadi, Gulbarga. Drying Facility, which works on the principle of Greenhouse Effect. • Unwanted excess moisture content in the hazardous waste This is a zero energy consuming sludges pose load in terms of process which is estimated to
One of the several in house recreational gardens created by employees
31 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Environment Legal Compliance
While carbon emissions form the We strictly comply with the legal accidental spills or has had any largest part of emissions from requirements restricting trans- action taken against it for non- manufacturing, oxides of nitrogen boundary movement of Hazardous compliance with environmental and sulphur and particulate matter wastes. TKM also has no history of laws and regulations. are also considered relevant to environmental performance. The following graph gives data Ambient air monitoring data regarding these emissions along Monitoring station 1: with permissible limits. 400- 360 Diesel power house 350- The TKM plant at Bidadi has been a Monitoring station 2: zero discharge facility. All the 300- 288 Material gate pollution levels are well within the 250- limits set by Consent for Operation 3 Legal standard (CFO) document provided by the 200- 169 regulatory authority [Karnataka 164 Internal standard State Pollution Control Board]. The 150-
CFO covers all aspects of the m micrograms/ allowable discharge of effluents 100- 80 80 under the Water (Prevention and 64 Control of Pollution) Act of 1974 and 50- 64 20 20 emissions under the Air (Prevention 12 and Control of Pollution) Act of 1981. 0- SPM SO2 Nox
Environment Day Celebration
r display Environment conservation awareness promotion through banne
Environment conservation awareness promotion through placard display
Environment Day commitment to all members by Top Management Environment Quiz for Team Members 32 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Workplace environment kaizen competition and audit by Management Emission check campaign
Plant visit by neighboring community school Rainwater harvesting awareness seminar Environment awareness street-play to children involving neighboring industries students of neighboring community
Exhibition to create awareness in organic farming, indoor gardening and herbal medicine
No-Paper Day Celebration
A day every month is dedicated towards promoting awareness and minimizing the paper consumption at TKM during the reporting period. This activity has been initiated by the General Administration group which has yielded good results.
Monthly awareness promotion by General Administration group Commitment campaign
33 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011 TKM Afforestation
Afforestation activity at Toyota facing today and promote a the concept of “Potential Natural Kirloskar Motor initiated as part of sustainable society through Vegetation”. which helps in creating Sustainable Plant initiatives. In the Afforestation efforts. the “perfect forest” by planting with year 2009 TKM initiated the activity native species so as to create with the objective to spark the Eco- Our Message: Treat Our Existing biodiversity and aid food chain and Mind concept among team Ecosystem Sacredly. ecology. members and all the stakeholders. The entire initiative is based on the Our aim is to address the ‘Dr. Miyawaki Method’ to restore challenge, that our forests are and reconstruct forests based on 6. Maintenance (For first 3 yrs)
5. Plantation Thinking –way Maintenance Free 4. Prepare soil and mound To restore and reconstruct forests 3. Prepare seedlings of native species based on the concept of Potential Natural 2. Select native species Vegetation Native Rapid Species Growth 1. Survey Soil condition and native species
Team members involved in the Afforestation Event at TKM
34 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
TKM and KSPCB officials at the Afforestation Event at TKM School children involved in the Afforestation Event at TKM
Top Management at the Afforestation Event at RPMEC School children involved in the Afforestation Event at (Regional Parts and Manpower Excellence Center), Pune RPMEC, Pune
Afforestation at TKM - Bidadi Plantation status
21st June 2009
Saplings Planted – 1,20,900 nos 21st June 2011
35 TOYOTA KIRLOSKAR MOTOR
SUSTAINABILITY REPORT 2011
Social Performance: Customers Customer Service Policy TKM has clear vision to become We at Toyota Kirloskar Motor, our Q Service, keeping human most “customer heart touching practice TMC Customer Service touch as one of the prime factor in company in India”. Policy: Accuracy + Caring = Trust. India. We have taken it forward through
Caring
Customer Incorporated service Accuracy Customer into Q Service personnel Trust
Q Service brand image and reinforce quality processes which Toyota is known Toyota Kirloskar Motor has for. designed Q Service, a service philosophy which is established as Why "Q Service"? a part of our approach to delivering • Promote 'Toyota Quality quality products and service. Q Service' in line with 'Quality Service revolves around three main Revolution' Image pillars – “Quick”, “Qualified” and • Appeal 'Toyota Uniqueness' “Quality”. These primary attributes which only Toyota can provide are inculcated to create service differentiation, enhance corporate under 'Q-Class
Customer Survey
Toyota Service Uniqueness
Quick Service Qualified Staff Quality In-built
Creation of New Image of Toyota Service - Reiterate Commitment
Significance & Key Deliverables
Quick Qualified Quality Responsiveness towards Ensuring only the best Hands Quality In-Built for Affordable every Customer need work on Customer's Vehicle Ownership Experience
38 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
SERVICE Quick | Qualified | Quality uick Response Service (Express Resolution Dealer Network (DIVA (e-CRB) Maintenance) (ECDR) & Growing Network)
Road Side Assistance:
TKM designed the concept to provide assistance to the distressed customers who are immobilized due to certain problems in the vehicle like functionality problem, accident etc., by providing immediate repair or towing the vehicle to the nearest dealership or providing support to the customer due to the immobility of the vehicle. Express Maintenance - 60 min service:
Express Maintenancencee wwawas derived form the concept of TPTPS (Toyota Production System),), Too redrreduce the serviceervicee leada timetimme to thethe [to[ deliver theh servicedsse vi d vehiclevehivehicleicle to customerstomerr by 600 minmimminutes]nnuttes]s] customer and toto establisishisshh theth lean system in dealersdealerd rss whwhichh h wwillwi increase thehe productivitypproductivrod c vity anda d profitability.y.
This featureatureure adoptedadop at dealer locationss aaims to deliver a vehicle broughthtt in for service to the customerm within one hour and to reducec vehicle unusable time for customerst due to periodic service.
evolutionary - Customer Relationship Building [e-CRB]:
e-CRB was introduced to provide "One Class Above" experience to our esteemed Customers and retain them for Life. e-CRB provides unique Sales and Service experience to enhance customer delight, resulting in a higher customer satisfaction index. All our dealer service facilities are equipped with e-CRB tools such as Sales Process Management [SPM], Service Management Board and Customer Service Satisfaction Board [CSB]. With the unique features of e-CRB, TKM
39 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011 SERVICE Quick | Qualified | Quality ualified Gain (T-TEP & Train (MDPP & Retain (Skill Contest & Promote (Star award & Job Portal) Ladder Prg.) Emp. Satisfaction survey) Team Performance Award)
Service Team Support Reduction in customer response lead time Toyota has introduced concept of dealers in ensuring quality service to Service Team support to customers our customers. Also, RNTL support 60- in a Quick, Quality and Qualified helps for product development and 48 manner. new product innovation based on customer requirement into the 40- This Team is deployed across India market. Finally, RNTL Team plays as Residential National Technical vital role to increases brand image 20- 8 Leader (RNTL) to support Toyota in the eyes of the customers.
Response time (Hrs) 0- 1. Presently, RNTL are deployed in 8 location across India. Before After RNTL RNTL North South West East Before Condition: 1. Ludhiana 1.Bangalore 1.Mumbai 1.Kolkata > Before RNTL deployment, to grab the customer voice and requirement 2. Delhi 2.Hyderabad leadtime taken was 48 hours 3. Lucknow 3.Chennai After Condition: 2. Each RNTL takes 8 Toyota dealers and quick grasping of customer > After introduction of RNTL leadtime queries. Later, reports to head office with less time. reduced to 8 hours and increased customer satisfaction.
Residential National RNTL listening and RNTL supporting Delivery of vehicle Technical Leader RNTL carrying the understanding the dealers and guiding after "Quality Check" (RNTL) attending work on the vehicle. Customer at Customer Voice the technician about to Customer dealership diagnosis activity
SERVICE Quick | Qualified | Quality uality Cost of Ownership Dealer Facility Staff Courtesy Fix It Right No to Counterfeit
Counterfeit parts in the Indian market have become a cause for major concern. A recent study conducted by the Indian Market Research Bureau (IMRB) endorsed by the Society of Indian Automobile Manufacturers (SIAM) suggests that India has become a global hub for counterfeit parts. Today, the estimated size of the counterfeit market in India is said to account for between 32% and 47% of the parts industry. This has motivated Toyota Kirloskar Motor Private Limited to start an anti- counterfeit campaign. Illegal sales of non-genuine parts such as oil filters, fuel filters, air filters, engine oil, and coolant were decreasing Toyota Kirloskar Motor market share despite an increase in part sales. To counter this trend, TKM chose to focus on promoting awareness by educating their customers so they could enjoy a safe driving experience. 40 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
CSI Improvement Service Index (CSI). Toyota CSI score for 2010 is 777, an increase in 23 JD Power Survey on Customer points over previous year. JD Power CSI Score Satisfaction Index ( CSI ): e Various initiatives were taken 800- eas Incr Toyota operations and standards are towards improving Customer ints 777 3 Po designed in line with our concept of Satisfaction under the program 2 'Customer First'. We have tied up Sarvottam 850+ (Best Customer 754 with JD Power Asia Pacific to Service in Town), most of them conduct internal customer already covered under Q-Service. satisfaction surveys. The survey results are shared with all 700- concerned stakeholders and actions are taken to improve customer satisfaction.
JD Power surveys customers of all automobile manufacturers for their satisfaction towards vehicle service 600- experience. They bring about the survey result in form of Customer 2009 2010
Initiatives to enhance customer satisfaction
Customer First Exhibition Explanation to key stakeholders
The ‘Customer First’ exhibition is 3rd annual event held at TKM to enhance in-house, suppliers design and manufacturing quality. The content focused on Toyota's Customer First activities, and quality improvement best practices. Also available to participants were video tapes presenting opinions "straight from the customer" and on Toyota's approach to quality entitled Everyone Has Their Part to Play in Guaranteeing Quality. The comments and opinions straight from customer had a tremendous impact or that they intended to take on board the best practices in their own workplace, showed a high level of interest towards quality improvement.
Endurance Trial: Customer usage and adaptability to Indian road conditions
Endurance Trial is a program conducted during the initial stages of a product launch. Conditions specific to Indian roads are taken into consideration and products are tested in these conditions to identify concerns due to the road conditions and attributes unique to India. Early feedback is provided to the design process for necessary early corrective action measures.
Endurance trials extend to the extreme terrains of India 41 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Recognitions for Toyota Q-Class
Innova Ranked No.1 in MUV/MPV segment in initial quality Fortuner Ranked No. 1 in SUV segment. by JD Power Asia Pacific for sixth consecutive year.
Towards cleaner and safer mobility
As stated in the Environment Policy, we understand the need for Clean and green Toyota products and services minimizing the impact of vehicles on Elimination of Substances of Concern (SOC) the environment and its influence on the climate change and biodiversity. Chemical substances of concern like lead, mercury, cadmium, and hexavalent chromium have a serious impact on the environment and We practice concepts of reducing, human health. eliminating, improving and Toyota initiated the elimination of SOC elements and switching to innovating to sustain and improve substances with less environmental impact. the environment in all aspects of the All Toyota products in India (parts and vehicles) are SOC free product's life cycle.
Customer safety - Toyota top priority
Toyota vehicles and components have been designed with high priority for customer safety.
Proper instructions through labelling on various components inside the vehicle, ensure proper and safe use by its customer.
Guidelines for safe product disposal can also be found on various components.
Toyota vehicles in India, abide and follow Indian regulatory norms regarding product and service information voluntarily as a part of Toyota's corporate social responsibility as well as those which are mandatory by the Indian Government.
42 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Toyota's Vision of Sustainable Mobility
" Without focusing on Environmental, Energy and Safety Measures there can be No Future for Motor Vehicles." - Katsuaki Watanabe, Vice-Chairman, Ex-President, Toyota Motor Corporation
Zone Images of Next Generation Mobility
Speed HV and PHV Zone FCHV Zone
Hybrid Vehicle Full-size truck TOYOTA EV Zone FCHV-adv FCHV-BUS
Shuttle bus
Passenger Car Home delivery truck Motorcycle FT-EV
Short-distance commuter Home Delivery and shuttle vehicles Travel Distance Fuel Electric power Gasoline, Diesel, Bio, CNG, GTL and CTL, Hydrogen
Each zone's ideal image of mobility helps drive developments
Innovation...the key to protecting the planet's natural working on the development of sustainable resources and create a greener alternative energy sources, to assist environment for our future in reducing CO2 emissions which development generations. cause global warming and improve air quality. Toyota believes that Sustainable "TODAY for mobility creates a society that Toyota envisions to create "Eco cars" harmonizes mobility, people and the TOMORROW" by developing environment friendly planet. technologies and the Toyota hybrid With the rapid industrial growth and technology, which is the core of eco Toyota business practices have advances in technology and also car development. always been promoting development population growth have led to growth of society with focus on environment, in automobile ownership, there has Toyota is enhancing the adoption of energy and safety while been a rapid increase in the 'hybrid technology' across its product manufacturing automobiles. consumption of fossil fuels. range and also in various countries across the globe. Toyota positions Toyota has always been on the In the continuous endeavour to hybrid system as the 21st Century's forefront and industry leader to reduce the consumption of fossil core environmental technology for develop environment friendly fuels and protect the environment by Sustainable mobility. vehicles, which go a long way in making greener vehicles, Toyota is
43 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Toyota Hybrid Synergy Drive
Toyota's goal of hybrid synergy drive development Fuel efficiency Low emissions
TOYOTA's HYBRID TECHNOLOGY
Driving Quietness Performance
Toyota's hybrid synergy drive is a excellent fuel efficiency, exceptional One of the main characteristics of series parallel hybrid system and quiteness, low emissions meeting the THS-II is that it can also be adopts the best of series hybrid and world's most stringent regulations operated as an electric vehicle. parallel hybrid system. without compromising on performance and driveability. Another characteristic of THSII is Hybrid synergy drive is a that it employs a regenerative brake combination of electric motor and a The Toyota Hybrid System II (THS-II) system that converts the kinetic gasoline engine and selectively uses uses the motor to start up the energy generated during the same to take advantage of their vehicle and operate it at low speeds, deceleration into electricity when the key attributes. and then switching seamlessly to brakes are applied and recovers and the engine when a certain speed has stores that energy for reuse as a Hybrid synergy drive delivers been reached. source of drive power.
Toyota Prius: Advancing the Green Revolution
With a Gasoline-Electric Hybrid Drive, which is a 'Series-Parallel' combination delivering a continuously variable ratio of engine/motor power to wheels.
Toyota Prius Milestones
1995 Prius Ist Generation Prius Concept (1997 - 2003)
3rd Generation Prius (2010 - Present )
2nd Generation Prius (2004 - 2009) 44 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Key Milestones of Toyota Prius
1996 Prius Hybrid Concept displayed in Tokyo 2006 Cumulative Prius sales top 500,000 vehicles Motor Show 2007 Plug in Hybrid using a modified NiMH 1996 Ist Generation Prius launched in Japan battery pack testing commences
1998 Prius wins Car of the Year Award Japan 2008 Prius cumulative sales Reach 1 million vehicles 2000 Prius sales begin in Europe 2009 3rd Generation Prius debuts in 2009 North 2000 Cumulative Prius sales top 50,000 vehicles American International Auto Show
2001 Prius launched in United States & Australia 2009 Toyota Prius launched in Malaysia, Philippines & Latin America, Costa Rica 2002 Prius sales top 100,000 vehicles worldwide 2009 Prius wins Car of the Year Award Japan 2004 2nd Generation Prius launched 2009 Prius Plug-In Concept shown at various auto shows 2004 Prius wins North American Car of the Year Award & International Engine of the Year Award 2009 600 Plug-in hybrid vehicles made available for leasing in Japan, U.S. & Europe 2005 Production of the Prius for the Chinese market begins 2009 Prius cumulative sales reach 2 million units
2005 2005 European Car of the Year 2010 Toyota launches 3rd Generation Prius in India
Facts about Prius :
• The name ' Prius' is the Latin • In United States, it is classified as word for 'prior' or 'before' a SULEV (Super Ultra Low It has been 12 years since Emissions Vehicle) and is Prius, the world’s first • The world's first mass-produced certified by California Air mass-produced hybrid car, gasoline-electric hybrid car Resources Board as an was launched. "Advanced Technology Partial • Prius is sold in more than 50 Zero Emission Vehicle" (AT-PZEV) Toyota now offers 12 hybrid countries and regions, with its passenger vehicles, largest markets being those of • U.S. produces more than half the including Prius ( As of April Japan , United States and Europe Prius sold worldwide 2010) • For Second Generation Prius, • 3rd Generation Prius uses a new As of April' 2010, over 2.5 Toyota filed 530 patents range of plant-derived ecological bioplastics made from the million Toyota hybrids have • The Prius is the most fuel cellulose in wood or grass sold in Japanese and efficient gasoline car currently instead of petroleum. international markets. sold in the U.S. according to the United States Environmental • 3rd Generation Prius is designed Toyota has contributed to Protection Agency with an aerodynamic body design reductions of CO2 emissions with the coefficient of drag of by an approximate 14 • United States EPA and California 0.25 Cd. million tonnes to date. Air Resources Board (CARB) also rate the Prius as among the • For 3rd Generation Prius, Toyota cleanest vehicles sold in the filed over one thousand patents United States based on smog during the development forming and toxic emissions 45 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Moving Forward towards Greener Tomorrow - Toyota Prius for India
Toyota is committed towards bringing the latest technologies in India and help in reducing the carbon footprint.
In addition to fuel efficient and less emission emitting gasoline and diesel engines, Toyota has introduced the globally renowned Hybrid technology in India.
Toyota introduced the 3rd generation Prius in India at the Auto Expo in December 2010 and has been on sales since then.
Toyota Prius has a class leading fuel efficiency of 23.91 km /lit (as tested by Indian Test Agency)
46 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Toyota Etios "World First, India First, My First" Toyota's 'Monozukuri' Philosophy to Contribute to Society
Monozukuri: Application to Toyota has always pursued a future of motorization and to make production of automobiles sustainable method of making cars - cars that would contribute and more safe, more reliable, change society, not only in developed Toyota's Guiding Principle: environment friendly and countries but also emerging Contributing to society through comfortable. countries like India, where due to making products that are useful to tremendous growth in economy has society. The challenging task is to grasp the lead to increasing use of cars.
Etios - Toyota's Sustainable Car for Emerging India Amongst the emerging countries, competition in India is very intense and there was a need to provide high quality, safe & affordable cars, meeting the local needs.
India Customer Voice Etios Development Concept
"Economical to drive..." Best-in-class mileage
Best-in-class spacious cabin and Toyota's "Safe and comfortable for my family..." strict global safety standards
"Affordable to purchase and has Toyota Q.D.R. low maintenance cost..." - High quality, optimal cost
" Want a sporty, stylish car to show Stylish design, with admired presence and my new status..." modern interiors 47 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Best mileage Most spacious Safety on par with the best
Smartly designed ergonomic interior with flat rear floor Energy absorbing body
Newly Developed 1.5 L, 16 valve DOHC engine with a mileage of 17.6 Km / Lit (As per test agency under Rule 115 of CMVR, 1989) Toyota QDR Unbeatable boot capacity (595 L)
Driver and passenger airbags
Anti-corrosion steel
Reduced wind and engine noise
ABS with EBD
Powerful AC with clean air filter Modern, stylish design
True sedan - spacious and compact
Instrument panel designed like an aircraft cockpit
48 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Etios: Car For India, By India, From India
The Etios or EFC (Emerging Frontier Concept) as the project was internally called, is a first country project for India. The Etios has been designed exclusively for India and is manufactured completely in India. In addition, to meeting all set India development requirements, Etios was designed to meet Bharat Stage - IV emission norms and also other regulatory Indian norms.
For India: Toyota understood localization of maximum low cost. the needs and aspirations of the components and also local A new green manufacturing facility customers by asking their production know-how was utilized in was set up for Etios production which requirements and expectations by engineering the vehicle. employed nearly 2000 people along directly visiting their homes, Involvement of TKM and TMC with plans to localize engine and understanding their life styles and (Toyota Motor Corporation) transmission in future with its also through Focused Group engineers along with India suppliers affiliates and further create new Interviews (FGI). through close communication, co- employment. Indian Road Surface Conditions, ordination, Genchi confirmation Etios has been designed and Traffic & Parking Conditions, from the start of the project and developed with excellent engineering Passenger Loading Conditions & through-out every phase of the and performance that is simple in India Unique Environmental project led to timely feedback from construction, keeping the vehicle Conditions were thoroughly Studied design to development - By India. light in weight, hence offering best in India, Jointly alongwith TKM & From India: For Etios to meet fuel efficiency and yet being very TMC Designers to Make a Vehicle - the set conditions in terms of spacious, safe and adhering to For India. production, sales and service, the Toyota's strict quality parameters. To make the Etios existing Toyota supplier database, By India: Etios is a product which is a perfect affordable and within the reach of sales and service distribution balance of performance, cost and the mass Indian customer, despite network was enhanced. Supplier quality, which was first made in retaining Toyota Quality, Durability operations development in the India, will be produced in other and Reliability (Q.D.R.), and also vicinity of TKM, in the new supplier countries and will also be exported meeting customer expectations - park was set-up to immediately cater - From India. maximum emphasis was laid to to TKM needs at the right time and at Etios has lead to growth for TKM, its suppliers, dealers, service partners leading to job creation, human resource development and enhancement of industrial growth leading to economic development.
This is in fulfillment of Toyota's Customer Focused Group Interview Monozukuri guiding principle of (FGI) Customer home visit contribution to society.
Traffic conditions Road surface conditions Parking conditions
Passenger loading conditions India has unique environmental conditions (extreme cold to extreme hot) 49 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011 Recognition to TKM's Quality Customer Service Customer Service Excellence Special Award by TMC Award - 2010 (Silver Category)
TKM receiving Customer Service Excellence Award Special Award shared in presence of Kidokoro san, from Mr.K. Masumoto, Managing Officer, TMC Sandeep Singh san and CSG Management
Appreciation for Record Parts Sales by TMAP-MS
Mr Suwito Kua [Deputy General Manager-ASMDTMAP] presenting special award to CSG-Top Management on 24th March'11
Centralized Toyota Dealership Management System (CTDMS)
TKM was using the Toyota dealership management was personal touch was easier - Dealership Management System centralized to allow TKM complete people could be sent for training, (TDMS) in dealerships. This was a data access. It allowed all dealers to continuously check on Sales standalone system, limited to across India to be connected to and Marketing, to verify whether individual dealers. The magnitude TKM so that updates could be issues were present, and so on. of dealer expansion necessitated a obtained in real time. Similarly, Enquiry management and more sophisticated system, which dealers with multiple outlets could conversion to sales was also ultimately resulted in the CTDMS. also view the status of each of much easier with fewer dealers. their outlets, or all outlets Similarly, ensuring a uniform The Centralized Toyota Dealership collectively. customer experience across every Management System (CTDMS), as dealership was a less complex the name states, ensured that With limited dealerships, a task.
50 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
ETIOS Launch in India
Year 2011 witnessed a major milestone of Toyota in India: the launch of Etios. The unique feature about the Etios was that, it was launched first in India. With this launch, the Indian automobile sector had a new player in the mid size B segment passenger market with the launch of Etios. The launch was taken up in two stages. First, at the manufacturing plant, where the first vehicle was symbolically handed over from Manufacturing Deputy Managing Director; Mr. S Tomonaga to Marketing Deputy Managing Director; Mr. Sandeep Singh.
In the second stage Etios was launched to the market at Palace Grounds, Bangalore in presence of Mr. Akio Toyoda, President of ETIOS launch at the Manufacturing Plant at Bidadi, Bangalore Toyota Motor Corporation.
ETIOS launch at Palace Grounds, Bangalore
51 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Social Performance: Employees
Human Rights rights is as follows: Employees We abide by all the laws of the We "Work with business partners in land - Union and State We "Foster a corporate culture that research and manufacture to Governments. enhances both individual creativity achieve stable, long-term growth Our businesses are vertically and the value of teamwork, while and mutual benefits, while keeping integrated across several honoring mutual trust and respect ourselves open to new Divisions that follow Toyota between labor and management". partnerships." Kirloskar Motor policies and standards. -Toyota Guiding Principles - Toyota Guiding Principles We position our senior officers Human resources are considered to ensure adherence to fair Toyota Kirloskar Motor considers the most important asset of the labor practices. human rights to be of utmost organization. We trust our team importance in every activity, process Government appointed officials members, provide opportunities for and associations. During 2010-11, routinely inspect our units to personal growth, foster the TKM expanded its capacity by ensure relevant labor and realization of their abilities, and establishing one more plant. All factory acts, which, inter alia, compensate all individual machinery and technology that is provide for the necessary SHE contributions fairly. Team members procured by TKM is sourced from (Safety, Health and exercise their abilities and take reputed global suppliers/vendors Environment) and labor responsibility for improving the who follow internationally accepted practice standards. Company and contributing to its norms and standards on Human Execution of Toyota Kirloskar growth. Rights. Motor's human rights policies is obligatory for all service We believe in bringing on board All contracts for the construction providers /suppliers /vendors team members who have the and setting up of units include operating within our competency to be a part of the safety, health, and environment establishments team and contribute towards related human rights clauses. Our organizational vision and most management ensure proper During the period 2010-11, 5011 importantly self development. implementation of Human Rights construction workmen reporting to Opportunity is open to both men compliance. Systems are 45 contractors were involved in the and women with respect to the established to ensure compliance establishment of the second plant. local laws and necessary of our Policies and Standards, Every such member was covered qualifications. TKM works with through rigorous and periodic under applicable clauses of human diverse communities, which is in a audits by Safety, Health, rights, safety, health and way the representation of the Environment, Human Resources environment. Our commitment variety and diversity in India. Our and Legal teams. towards these clauses ensured employees hail from different total compliance of the applicable geographical regions and vary in Our approach to managing human policies and procedures. age.
52 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
With Toyota Motor Corporation playing a big role in product Types of Employees development and our business Sl. No. Particulars Number practices, the Japanese expatriates join hands with their Indian 1 Permanent employees 5053 counterparts at TKM 2 Temporary employees 2682 The following tables indicate the Total 7735 types and diversity of employees at TKM. Our hiring policies are non- discriminatory in nature. As of 5053 March 31st 2011, the organization Temporary employees 35% had a total of 88 female employees 2682 and 4965 male employees, i.e. a Permanent employees 65% total of 5053 permanent employees.
TKM's Compensation policy is structured based on factors like organizational position, Unionized and Non-Unionized Employees performance, market rates etc., Sl. No. Particulars Number Compensation structure is the same for men and women across 1 Unionized employees 3157 the same pay bands as "equal pay for equal work" is practiced in TKM. 2 Non-unionized employees 1896 Total Permanent employees 5053 About 62% of the employees are covered by collective bargaining agreements. A Memorandum of 3157 Settlement is entered into between Non-unionized employees 37% 1896 Union and Management every year. Unionized employees 63% A minimum notice period of 14 days, as per law is followed in case there are any significant operational changes. Details of recruitment during the 2010-2011 financial year
Code of Conduct Female Male New Total as New We carry out periodic Total as 2010 TMs in on 31st 2010 TMs in reviews/assessments to ensure that Location on 31st 2011 March 2011 all employees at the factory follow March Sl.No. 2011 the laid down policies and 2011 procedures. All contractors and 1 Bidadi 43 11 54 3728 893 4621 regional offices are reviewed twice a year. Efficient impartment of 2 Other 34 1 34 304 47 344 training and accepting employees Locations into the organization has ensured Total 77 12 88 4032 940 4965 that during the period 2010-2011 there has been no incident of Other Locations refers to: UB city office, IS, Kolkata, Mumbai, Pune, Delhi, discrimination on grounds of race, Manesar, Ludhiana, Lucknow, Chennai and Hyderabad. color, sex, religion, political opinion, national extraction, or social origin Employee Turnover as defined by the ILO, or other relevant forms of discrimination involving internal and/or external Sl. No. Employee Turnover 2010-11 (%) stakeholders across operations. 1 Grade-8 (Unionized Category) 0.7% Further, during the reporting period there were no reported incidents of 2 Grade-7 and above (Non-Unionized Category) 5.3% violation of the Code of Conduct. This includes violation of human Overall company 2.46% rights, incidents of child labour or violation of indigenous rights. 53 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Freedom of Association and Collective Bargaining Team Members have freedom to must put in continuous efforts with a We will work towards making a form association. As part of the vision of making a global car. For this company environment, which collective bargaining process, Union to happen, the two entities have will foster Team Spirit and and Management enter into a made a joint declaration: provide an opportunity for all Memorandum of Settlement once a members to realize their fullest year. Issues related to human rights We will take leadership and potential and welfare of the employees are responsibility, in contributing to discussed and decided. the development of the We will strive to bring about Automobile Industry and thereby prosperity to the enterprise and Management and Union are like two the Indian Economy thereby achieve long term stable wheels of a car. Both must cooperate employment and consistent with each other and move towards We will strive to build strong improvement in the quality of an agreed goal. Towards realizing relationship between Labor and life of our employees this dream, every team member Management, based on "Mutual trust and respect" Grievance Redressal Mechanism Toyota Kirloskar Motor has a may exist. Our mechanism is a pertaining to violation of Human defined grievance redressal multi dimensional approach where Rights were filed during the period mechanism in place. Every responsible departments / 2010-11. supervisor interacts with his team individuals convene at pre-defined members on a regular basis to intervals to analyze and address The following table lists the various understand any grievances that reported issues. No cases grievance redressal mechanisms that TKM has in place:
SN. Channel Attendees Formal or Informal Frequency
1 Morning Meeting HOD+Team mates Formal 1 / Day
2 Workplace Committee Meeting Shop Mgr+Shift DM+ECMs+ERO Formal 1 / Month
3 One-to-One Supervisor+TM Formal Need-based
4 Employee Relations Officers (ERO) ERO+TM Formal Need-based
5 ECM+Plant+HR HR+ECMs+Plant Mgt Formal 1 / Month
6 Union Weekly HR+Prod.HOD+Union Formal 1 / Week
Toyota Kirloskar Motor is committed to maintaining the laid down redressal system and the designated attendees are required to be present at their respective modes of engagement.
Joint declaration anniversary celebration 54 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Training and Education
Training Policy complement his/her position with Corporation the organization vision. All • At every level, training need is Human Development in Toyota employees undergo formal training assessed and training is imparted Kirloskar Motor is directly associated as part of induction about the to the employees with the growth of the organization. organization's policies and • Training on safety and All human development programs procedures on human rights issues environment is imparted to all aim at ensuring lifelong learning of and their applicability to the contractors the employees. On an average, every employees' work. employee is trained 3 man-days per • TKM has a defined Training Work • Safety Dojo (Simulated training) is year. Life Plan to meet the career imparted in technical areas where needs for each employee its deemed to improve learning Training is followed by a performance quality and safe working appraisal in our performance • Training is imparted to every conditions. management system. The system employee based on the Work Life grasps the abilities and Plan Learning and Development characteristics of each employee • Standard training programmes Objective: "To develop competency of accurately and objectively, to develop containing Global Contents are all Toyota members, step by step and maximize the utilization of imparted to the employees as from mid to long term perspective" personnel through performance prescribed by Toyota Motor appraisals. TKM maintains and raises employee morale by implementation of a robust performance- based reward system.
TKM has a regimented philosophy towards learning and development of its personnel. It is through this philosophy that facets other than job related competencies are unified. Induction training lays importance on the "Toyota Way" which is the threshold for a new employee to blend into the organization and understand our practices that will help improving productivity and 55 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Types of Training in TKM
Corporate Training Functional Training
Global Contents
On the Job Development Regional Contents
Local Contents
Off the Job Development
Managed by HR Managed by Function • Applied to all TMs by cascading-top down approach Applied to all members in the function based on specific job competencies actions in that • Role/level based training at appropriate time of work life function
TKM Corporate Training Content - Image
Advanced Grade 7 6 5 4 3 2 VP
G
G G
F F F
E E E E
D D D D D
C C C C C C
B B B B B B B
A A A A A A A Basic
• Training is based on TKM competency model
• Training is based on grade
• Training is delivered in Specific Order (from basic to advanced. For e.g. A->B->C)
• Training is connected to HR Systems (Future Direction)
• Training content development will be based on needs identified in Competency appraisal
56 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Work life plan 200 security personnel man the • QCC helps to generate ideas factory premises, all of whom are and implement The training path of team members trained in policies and human rights recommendations made by (TMs) is planned through Work Life issues. circle members. In the process, Plan (WLP) it helps to improve their Creative Suggestion capabilities and facilitates good The objective of WLP is to: communication at the Scheme workplace. • Provide overall image to TMs Creative Suggestion Scheme is a about developmental concrete example of the effort Quality control circles opportunities available at Toyota Kirloskar Motor makes to different point of the career utilize the ideas of each employee to 387 402 203 330 • Develop competencies of all build the finest automobiles possible. Through this system, team TMs in 3 steps - Learn, Grow 2008 2009 2010 2011 and Lead. members take it upon themselves to resolve the questions and problems It is based on the TM's role that occur at work - to do Kaizen. competency/skill requirement We strive to receive ideas for: specific to one's grade. There are • Making a better product separate WLPs for - • Enhancing product safety • TMs working in production area (Plant Side WLP) • Increasing efficiency
• TMs working in non production • Optimizing costs area (Office side WLP). "Good Thinking Good Products" - There are two types of program these words of Sakichi Toyoda are the baseline for team members to 1. Mandatory - Culture building provide ideas. We believe in programs for all members combining the creative ability of our (including lateral hires - like Toyota Team Members to make products Way. Toyota Business Practices etc.) which improve customer satisfaction. 2. Role specific programs that are specific to role only. Quality Control Circle As an important rule all security personnel who are posted at TKM's • Quality Control Circle (QCC) is business units, receive formal an activity of a group of people training on the organization's in the same workspace. The policies, human rights issues and circle members come together their application to security. to solve problems according to Currently, five security personnel basic QC principles, QC steps are employed directly. More than and QC tools.
180000- 167128 Highlights of Creative Suggestion 160000- Scheme 140000- Since inception, 6,59,991 120000- 106722 100000- suggestions implemented 86417 80000- Average 54,999 suggestions per year 60000- About 1,67,128 suggestions No of suggestion / year No of suggestion 40000- 20000- implemented in 2010 0- 2008-09 2009-10 2010-11 57 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Ekiden 2010: Run Maadi…Run! Kalothsava at TKM: As a part of employee's health promotion activities, the The annual Talent Hunt event is focused on fostering marathon event in line with Toyota Motor Corporation's ethnic and cultural activities for the employees and their Ekiden was organized at TKM. Running and relay families. Eminent musicians and artists are involved competitions for employees are organised during this during this event. event
Women's day celebration at TKM: Women's day was celebrated at TKM with the intention of appreciation and motivation of working women at TKM.
58 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Occupational Health and Safety "Safe work, reliable work, skilled Behavioral based safety plan for safety culture promotion work - Safe work is the door to all work, lets pass through this door" - Behavioral Eiji Toyoda. based safety Safety Policy Strong • Be the best company Mgmt drive of safety and health Cultural changes
• Safety first, and make the Supervision work place free from accident Member self driven • Make work place free from health hazards Safety Commitment Reactive Independent Interdependent Ensure Zero accident at Toyota or in 98' onwards 2011 onwards 2012-13 onwards its group companies and stakeholders. Safety sense is the KY (Kiken Yochi: check during crossing, no mobile Since accidents are due to unsafe danger prediction) ability or the usage while walking, no hands in act and unsafe condition, we capability of risk identification. pocket while walking, holding strongly believe the following are Members' KY ability are handrails at stairs etc. the 3 pillars of safety: Machine strengthened through members' safety, Human safety and Safety involvement in safety suggestion Achieving safety culture from management. schemes like Hiyari hatto (safety independent to inter-dependent is suggestion scheme). challenging phase which our ZERO focuses are into. ACCIDENT Safety culture, the base for an organization and indeed practicing All Team Members are educated of safety culture makes oneself safe related to seasonal and serious anywhere and anytime. diseases such as dengue, H1N1, malaria and common fevers. In It is basically the fundamentals of addition, Toyota Kirloskar Motor attitude which one can practice and conducts extensive anti-smoking HUMAN SAFETY SAFETY
SAFETY preach. campaigns and provides counseling MACHINE and annual medical check ups.
MANAGEMENT MANAGEMENT Elements such as 3 point finger Level up TM awareness for Safety Safety house concept Human Safety
Human safety is the state of mind towards knowledge, mind and sense. Therefore, safety knowledge is inculcated through DOJO training (simulation based training). This is for the member to feel the real impact of risk in the work area.
Our unique small group activity promotes member's safety sense and team work through group identification and brainstorming for countermeasure implementation Safety promotion for member's safety mind level-up and sustenance. 59 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Machine Safety
Our machine safety not only determines the presence of safety items, it also covers the functionality of the inbuilt safety. This is confirmed in periodical basis by our expert team and also cross confirmed by the expert group from TMC, Japan.
The entire process and result are managed through KPIs, consolidated as Plant Management Safety training for all levels of workforce is ensured Requirement (PMR) for Safety and monitored by management in periodical basis for level up and Safety Committee family welfare programmes. sustenance. In the interests of having a healthy, Workers undergo periodic medical Being a leader in safety we also efficient, work force, TKM has a examinations. Management of body preach what we practice to all our safety committee in place. As mass index (BMI), hygiene and stakeholders. Our stakeholders mentioned earlier, the safety behavior and regular, job specific including group companies, committee adopts a top down exercise routines are part of TKM's Supplier chain, dealer network and approach, which means that the programme to ensure healthy Contractor Organization are also management is fully involved in living. We also have "quit smoking" party for our performance curves in safety activities. The committee and "quit drinking" drives for those safety. Therefore our experience in reviews the key performance employees that use these safety is transformed to our indicators (KPI) and awards are substances. stakeholders for a better safety given to team members in management at their side also. recognition of adherence to the Very often certain jobs involved in existing safety policies. It also processes within the organization The year 2010 was a challenging conducts workplace safety serve to cause physical stress to year since amidst the Production, observation activities and supplier the human body. TKM attempts to project activities was also in peak company safety audits. quantify these with a numerical for the small car plant. value and ensure that all process remain below a certain threshold In spite of the Projects challenges Health Promotion value. Importance is given to such as dynamic work environment, Activities ergonomics management in all high attrition rate of Contractor processes, particularly for the lower members and high risk activities an We at TKM believe that healthy back and upper limb area that are achievement of 15 million safe environments, healthy processes most likely to be affected in the man-hours without any fatal/ and healthy people are imperative course of work. Work environment serious accident. in the running of an efficient is constantly monitored to organization. The sanitation and effectively manage illumination, To conclude, safety is never ending hygiene conditions undergo regular noise, dust and gas, temperature mission, the more you dig, the reviews as do food and water and vibration. more you get. quality. In addition, TKM promotes health programmes in the local committee and is also involved in
Management involvement in workplace safety confirmation 60 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Social Performance: Community
Toyota Kirloskar Motor assesses social contribution through regular interaction with local government bodies and the peoples' representatives. We also conducted a survey in the year 2005-06 to understand its impacts on the local community. Stakeholders, i.e., local community, local government and government departments are involved in planning and implementing social development programmes such as the distribution of education materials to local community. This programme is conducted in TSEP activity as covered more than 4,50,000 students till date collaboration with the government education department and the local killed and over 4.5 lakh people get Basis TSEP launched in panchayats, who help in identifying injured every year in road accidents. Bangalore, covering 20,000 school the prospective recipients of these As motorization increases, road children. benefits. Involvement in such safety has become a prime concern programmes is not limited to in Indian Cities, underlining the • Phase II: 2008-2009: TSEP stakeholders and team members. urgency of road safety measures. launched on a nationwide in 5 Top management also gets involved cities - Delhi, Mumbai, Kolkata, in social activities organized by Concern of the vulnerable group Chennai and Bangalore covering TKM. should be addressed by priority. 100,000 school children. Transportation studies have Road Safety revealed that the vulnerable group • Phase III: 2009-2010: TSEP constitutes pedestrians, school introduced sustainability module India has road network 42.36 lakh children, aged people, public in all 5 cities to sustain this Kms of road ways making 2nd transportation and bicyclists. In activity, under this teachers are largest road network in the world. In most cases, accidents occur either trained on specially designed spite of focus on road infrastructure due to carelessness or due to lack manual to impart education to by state and central govt, of road safety awareness. Road school children, covering 100,000 development of road is not in pace safety education is still in its school children. with increased vehicle population. nascent stage in India and through TSEP, TKM aims to sensitise • Phase IV: 2010-11: TSEP tied up India today has over 102 million children from a young age. with Traffic Warden Organization, registered vehicle on road with two a Volunteer wing of Bangalore wheel segment accounting for 76% Toyota Safety Education Programme Traffic Police to cover additional and passenger vehicle for 14%. (TSEP an interactive learning 150,000 children. India's vehicle population programme on Road safety specially TSEP to sustain further underwent the second largest grow designed for the children in the age introduced the Road Safety Club th rate up to 8.9%. group of 10-15 years. activity on a pilot basis in Bangalore, covering 5 schools In India, about 90,000 people are • Phase 1: 2007-2008: On a Pilot and 2000 school children.
61 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
• Phase V: 2011-2012: TSEP is around Bidadi plant, constructing tanks with a total capacity of 1.5 extended its reach to one new 310 individual households' toilets. million liters. city - Hyderabad covering 20,000 school children.
With these, till date we have touched to more than 4,50,000 school children through road safety education. Added to this, we also conduct Road Safety Week in the month of January in collaboration with the Police dept in all locations. Civic and Community
Sanitation Program: Health and hygiene plays a very important role in one's individual and social lives. Sanitation is one of the basic determinants of quality of life and human development index. Good Help during Natural calamities: sanitary practices prevent Toyota Kirloskar Motor treats contamination of water and soil and helping victims of natural thereby prevent diseases. calamities as a responsibility. Team Water Tank Construction: With the members have played an integral TKM joined hands with aim of overcoming the acute water part in assisting those affected by Manchanayakanhalli Gram shortage faced by the residents of these disasters. Panchayat in achieving total Ramanagara town, Toyota Kirloskar sanitation of 6 villages in and Motor has constructed two water Education and skill development
Education is the process of gaining Heggade, Dharmadhikari, Sri class technicians in auto information about the surrounding Kshetra Dharmasthala. He toured manufacturing and plant world. It gives us the knowledge the facilities at the institute and administration thereby increasing and develops in us a perspective of also spent time interacting with the their employment prospects. looking at life. TKM promotes students. This programmes trains education and skill development to the students to be skilled world make people more employable. Toyota Technical Training Institute (TTTI):
Toyota Technical Training Institute (TTTI), a center of design excellence, inspiration, ambition, creativity and automotive passion, held its 2nd Convocation on July 30, 2011. The institute presented academic degree to the students - second batch - on the successful completion of its 3 year training course (2008-11). A total of 62 students graduated from TTTI and 55 percent of the students received fellowships for academic excellence. The convocation was Convocation graced by Dr. D Veerendra Heggade of Sri Kshetra graced by Dr. D. Veerendra Dharmasthala 62 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
In addition to making quality automobiles, TKM believes in proactively contributing to society by consolidating the knowledge and know how within the organization to develop capable human resources and thus contribute to the development of a prosperous society. TTTI is one of the brightest outcomes of this aspect of the company. The institute was built with a vision to support intelligent students from economically poor backgrounds, coming from various parts of Karnataka and make them employable. The institute is a fully residential school concentrating on Visit to the Training Centre theoretical, practical and physical training as part of the students graduates of TTTI to join the applying the world renowned Toyota including Fellowships which are company as team members. The Production System to the various provided to deserving students to courses involve training at TKM manufacturing processes. All the promote excellence. Furthermore, plant where students are exposed to first batch students got selected in TKM encourages potential the practical experience of the TKM itself.
Convocation ceremony Felicitation of Dr. D Veerendra Best in its class training facilities Heggade by Mr. Nakagawa, MD prepare industry-ready technicians Books and Bags Distribution:
Every year Toyota Kirloskar Motor 2010-11, this programme benefited continuous activity, covering 10 distributes books and bags to local more than 7000 local school additional schools every year. government school children. As of children from 102 schools. This is a
Books and Bags Distribution ceremony 63 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Toyota Technical Education Programme (TTEP):
TTEP is aimed at imparting advanced skill training on automobile technology to the T-TEP (Body and Paint) coverage students of Industrial Training Institutes. Under this programme, 19 ITI's (Industrial Training Institutes) in General category and 5 ITI's in the Body and Paint category across India are being supported by TKM. For the first time in India, a course on body and painting has been introduced by us in these institutes. Nearly 2000 students from these institutes have benefited from this programme. More than 650 students undergo training on the latest automotive technology and service techniques every year. These trained students are also given a job opportunity in Toyota dealerships.
TKM GOVT
ITI Painter Trade ITI Sheet ITI Metal Welder 1 Trade Trade Automotive Body Repair 1 course (ABR) 2 2 Automotive Paint Repair Industry specific course [APR] Industry specific content content
2 new trades ABR and APR have been added to the State Govt. Syllabus in order to supplement the Body and Paint (BP) T-TEP program
World Class Training to create Skilled Industry- ready Inauguration of the TTEP institute in 2010-11 technicians 64 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Health and Human Services:
Toyota Kirloskar Motor supported checkups for school children, public, 150 government school two health camps in Byramangala & general public's. Toyota Kirloskar children were also benefited by this Shyanmangala. Around 1000 people Motor supported the camp by programme. benefited from this camp. The focus providing spectacles and dark was on eye & general health goggles to patients. Apart from the
Health check campaign reaching more than 1000 beneficiaries Art and culture:
Toyota Classics: Toyota Classics is a live musical concert performed by an international orchestra. The objective of the concert is to contribute to the local culture by bringing the world's leading classical ensembles and orchestras to the people of Asia. TKM hosted Toyota classics in 2008 for first time in India held at NCPA, Mumbai, where the Vienna Operetta Orchestra played live in concert and featured special guest Dr. L Subramaniam - The Paganini of Indian classical music. The Performance by Padmashree Dr. Kadri Gopalnath proceeds of the concert was donated to, 'Save the Children' For the second time Toyota Classics The proceeds of the concert were India, an organization working organized in 2010, held at NCPA in donated to Child Rights and You - towards the empowerment of the Mumbai and, The Orchestra Citta Di CRY and Mehli Mehta Music disadvantaged children and women Firenze from ITALY and the Indian Foundation. and Mehli Mehta Foundation. artist Padmashree Dr. Kadri Gopalnath performed at the concert.
Citta Di Firenze Orchestra performance Mrs. Geetanjali Kirloskar presenting the cheque 65 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Social Performance: Business Partners Business Partners Suppliers This is necessary for ensuring the high quality standards maintained in We at Toyota Kirloskar Motor In our drive to build the perfect Toyota vehicles. To build a reliable perceive our suppliers and dealers automobile, selecting the vehicle, the parts that go into as equal stakeholders in our drive components that go into it becomes making it have to be reliable and it is towards sustainability. For TKM, a key criterion for success. At TKM with this understanding that we suppliers are the hands that we believe that an innovative, deeply involve ourselves with the sustain our business continuity capable, and cost competitive supplier's production process. where as dealers are the face of supplier base is critical to the TKM. In this section we shall brief viability of the Indian automotive We promote sustainable production you upon the sustainability industry. practices among our suppliers by initiatives taken up along with our providing technical know-how to business partners during the Suppliers form a preliminary part of enhance productivity, and support in reporting period. our product building process. We areas where suppliers can inculcate work towards mutual growth and best and sustainable practices. success with our supplier partners.
66 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
TKM Purchasing Policy
Toyota Kirloskar Motor's fundamental approach to building business relationships has not changed since the foundation of the Toyota Motor Corporation (TMC) 70 years ago. The company's approach is articulated in the Purchasing Mission. A supply based company that gains the respect and trust of society while remaining competitive and long-term provides a stable procurement of the best products at the best prices and in the best time possible.
1. Fair competition based on an open-door partners and result in an even stronger interdependent policy relationship based on openness and honesty.
Fair competition based on an open door policy 3. Contributing to the local economic vitality supporting TKM's aim of continuously improving the and being a good corporate citizen. supplier base and preparing a solid foundation for the future. Toyota aspires to be a good corporate citizen by contributing to local economies and societies thus 2. Mutual benefit based on mutual trust. contributing to the company's vision even in these challenging times. Mutual benefit based on mutual trust ensuring that the purchasing activities are managed by equal business
Environment Initiatives
Green Purchase traditional expectations of quality, Chromium, Cadmium, Lead and service and price we give preference Mercury have been eliminated from Guidelines to suppliers and products with almost all parts of the Innova, better social and environmental Corolla and Fortuner at TKM. Comprehensive environmental credentials. management means looking beyond Although, there is no requirement or the boundaries of our own Reduction in the use of law regarding the end of a vehicle's operations to the wider supply life in India, we at TKM have chain. TKM has adopted the 'Green Substances of proactively taken up in early Purchasing Guidelines' policy which Environmental elimination. This aims at creating a includes the environmental criteria Concern better and safe environment for the in every purchasing decision we future generations to come as the make and encourages our suppliers Toyota's global standard promotes SOCs can be very toxic even in small to improve their environmental the elimination of substances of concentrations. performance. In addition to meeting environment concern. Hexavalent
Green Purchase Guidelines
ISO 14001 Elimination of Legal Compliance CO2 emission Waste Action Certification SOC Evaluation Control Management Area
Ensuring 100% Elimination of Ensuring 100% Logistics Promote 3R and certification by TMC banned Compliance to Optimization reduce Action 2011 Chemicals at Applicable Legal packaging Plan all Suppliers Requirements waste
67 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Acquisition of ISO environmental preservation regulations activities and constantly improve • Enhancement of 14001 Certification: them. To do this suppliers are environmental performance requested to acquire the ISO 14001 certification. ISO Certification Status of Reduction of CO2 Suppliers Environmental emissions and the use 78% Certified initiatives related to of packing and suppliers business wrapping materials in activities: logistics: In addition to the initiatives taken The transportation of goods results by Toyota Motor Corporation in the consumption of energy and (TMC), Toyota Kirloskar Motor reducing this consumption of (TKM) has set ambitious targets energy becomes a major issue. to work on various environmental Thus, TKM undertakes active Certified 83 improvement activities. Suppliers measures to reduce CO2 emissions Under Progress 24 delivering parts, raw materials (energy consumption) in logistics. and supplementary materials TKM is also working to reduce the use of packaging and wrapping Toyota Kirloskar Motor undertakes should also take an active materials. The suppliers involved the systematic management of approach to environmental are also requested to implement environmental preservation initiatives as a part of their environmental measures in their activities and works to business activities. continuously improve them. TKM logistic activities. requests that all suppliers create • Compliance with the systems necessary to carry out environmental laws and Supplier Development programs: Towards Sustainable Supplier Base Toyota basic approach Partnership to the supplier, through implementation is not constrained which we can work along with to Toyota’s Business , but we to supplier: supplier partners . promote to implement the same to SUPPLIER PARTNER entire scope of supplier operation We at TKM, work jointly with irrespective of customer. Supplier development programs are Supplier to implement Toyota designed to give a sense of Production System. The scope of With this, Toyota’s Stable and sustainable supplier base can contribute to the growing Auto Industry. Toyota Production System [TPS] promotion initiative
TPS is the key to the success of Toyota operations worldwide. Toyota is promoting TPS implementation at suppliers to enhance their productivity and achieve mutual growth. TKM, through its Supplier's Association is jointly working to expand and enhance TPS culture among all Toyota suppliers. SUSTAINABILITY REPORT 2011
Quality Circle Competition: To bring out the best in the suppliers
Quality Circle Concept: The supplier team solves the identified problem in their respective companies.
Gemba QCC: Judges will visit participating companies to understand their implementations and also guide the QCC team for further improvement.
Regional QCC: All companies assemble to present their presentations. Regional winners are decided and awarded.
Final QCC: Regional winners will compete in the finals. The winners will then be decided and awarded. Supplier QCC activity reviewed by TKM top management
Kaizen Festival
Kaizen festival is an exhibition where the suppliers display their best kaizen [process improvements] under one roof. Three of the best kaizens will be awarded during Annual Supplier Meet.
The Supplier Kaizen Festival is organized every year to create a platform to showcase the best practices or innovations that have been carried out by the suppliers. TKM also takes the opportunity to appreciate supplier activities at this event.
Supplier Kaizen Festival activity reviewed by TKM top management
Safety promotion stakeholders. TKM’s top Current activities include basic management, suppliers, dealer safety management in terms of among supplier partners and contractors attended model plant establishment, human companies: it. Later during the reporting period, development of key persons and we held the first Company-wide basic activities for suppliers and TKM has been promoting mutually Safety Committee Meeting (CSCM) dealers. beneficial safe working practices involving all suppliers and dealers. among its supplier groups as a part of the CSR activities. The basic approach is to promote awareness and inculcate safe working conditions among the members to avoid accidents.
Integrated Safety Committee meeting involving Supplier Partners
In March of 2010, Toyota Kirloskar Motor held a kick off meeting to expand its Safety Culture among all Integrated Safety Committee Meeting involving Supplier Partners 69 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Special Story: On-Site Suppliers Park Towards improving the quality and amenities were provided by TKM, department - to establish the efficiency of sourcing parts, On-site including land, power, and water. required work culture. Suppliers (OSS) Concept was The last key consideration was that introduced to establish suppliers in these suppliers should be on-site Some of the activities conducted by close proximity to the suppliers and not on-site stock the TPS department to ensure manufacturing unit. This has been a suppliers. smooth establishment of OSS were: breakthrough process in eliminating a range of superfluous • Understanding the suppliers’ Initiating OSS setup resource use and improving Implementation efficiency. The focus and ambition • Preparation of a road map to for OSS is to have more than 80% of Setting up OSS in TKM required align supplier working methods the purchasing to take place in and intensive activities. Merely inviting with the Toyota Production around Toyota Kirloskar Motor. suppliers to set up workspaces in System TKM was not enough. OSS working Primarily suppliers of large, bulky • Training suppliers in the Toyota methods had to be in line with parts as well as suppliers who offer Way multiple variants of parts are TKM’s production method as a chosen for this undertaking. An whole, in keeping with the Toyota • Implementation of the Toyota added advantage to OSS is that Way. To do so, this task was Production System at assistance with infrastructure and entrusted to the Plant Supplier’s facility Administration Division - the TPS
Glimpses of OSS Steering committee meeting and visit to the Supplier facility
Training Suppliers in will need to receive equal This intensive training was importance from suppliers to conducted over a period of one the Toyota Way facilitate smooth transition to OSS. year, to help suppliers understand TPS and work on establishing the It was important for TKM to help To achieve this transition, the practices in their on-site facilities. potential OSS understand the thinking way for OSS was Training Toyota Way and the Toyota the Supplier Project Expert (SPE). The Thinking Way for OSS was that Production System (TPS). One of the suppliers were no longer six the key aspects of the Toyota SPE development was an important separate entities, but part of the Production System was to aspect of establishing OSS, a TKM family following their eliminate waste (muda) of representative from each supplier integration into the OSS park. • Over-production was identified for training at TKM. • Operator and machine motion • Operator and machine waiting (down time) • Conveyance • Processing • Inventory (raw material) • Correction (rework and scrap)
Eliminating waste is a discernible aspect of Toyota Production System. Similarly, these concepts 70 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Establishing TKM methods to suppliers allowed them sustaining TPS in the OSS park. practices in existing to understand the benefits of working with TPS. It also helped to EFC - Supplier meet supplier premises smoothen the transition from being an off-site to on-site suppliers. Toyota Kirloskar Motor conducts As a first step, establishing TKM EFC–Supplier meet to create practices in OSS was a challenge, so Thus, the Supplier Project Expert common awareness among EFC TPS activities were conducted at the (SPE) development platform was suppliers for service parts operation existing supplier plant to ensure established to deliver this essential and to establish efficient service that there would be acceptance of knowledge to suppliers. These parts operation flow for EFC. changes in the working methods. SPEs, in turn, would be required to Showcasing new, efficient working train their team members among the suppliers, thus driving and
Representatives from Suppliers SOBO Concept explanation through Suppliers Feedback Logistics Game [Kojima San from TOKARIKA]
Regional Parts and Manpower Excellence Centre (RPMEC) Establishment at Pune
RPMEC, Pune was established with the Key Parameters Before Scenario Current Scenario aim of customer satisfaction improvement through: Average L/T for supply 3 ~ 6 Days 1 ~ 3 Days • To establish strong supply chain Despatch Frequency (Dealers) foundation to enhance customer satisfaction and logistics efficiency Daily Twice 0 09 Daily 34 25 • To support suppliability to west zone dealers by reducing lead time Supply Lead Time (Hrs) • To reduce dealer parts stock and < 24 Hrs 0 21 ( 62%) support for future volume growth < 24 ~ > 48 Hrs 16 (47%) 09 ( 26%) • Reduction in lead time from 4 to 2 > 48 Hrs 18 (53%) 04 ( 18%) days Total 34 34 • Reduction in stock amount at dealer: 33%
Inauguration of RPMEC Pune 71 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Social Performance: Business Partners
Dealership Toyota automobile dealers are the sustainable work processes are customer satisfaction by initiating primary point of contact for the adopted by dealers to reflect the and conducting three-sixty-degree company's customers. Toyota values and beliefs of the company. communication and suggestion Kirloskar Motor ensures that The company works constantly with programs. rigorous quality standards and dealers to ensure maximum
Service Network Expansion
To enhance the capacity and provide convenience for customers, thus achieving the highest levels of operational efficiency
3S 2S 1S
Leh 1
Jammu 1
Amritsar 1 1 Hoshiarpur Jalandhar 2 1 Solan 2 Chandigarh Ludhiana 2 1 Bathinda 1 Patiala 1 Dehradun 1 Ambala Karnal 1 Faridabad 1 1 Meerut 1 Hissar 2 2 Ghaziabad Delhi 5 1 Barielly Gurgaon 2 1 Agra Gangtok Dibrugarh Jodhpur 1 Jaipur 2 2 Lucknow 1 1 1 1 1 Gorakhpur 1 Kanpur Siliguri 1 Bhilwara 1 Guhawati 1 1 Allahabad 1 Gwalior 1 Udaipur 1 Kota Patna 1 Varanasi Himatnagar 1 1 Gandhidham 2 Ahmedabad 1 Bhopal 1 Rajkot 1 1 Ranchi 1 Indore 1 Jabalpur 1 Durgapur 2 Vadodara 1 Jamshedpur 1 Bilaspur 2 Kolkata 1 Surat 1 Rourkela 1 Raipur 1 Jalgaon 1 1 1 1 Akola Nagpur Bhubhaneshwar Nasik 1 1 Thane 2 Aurangabad 1 Mu m b ai 7 1 Ahmednagar 1 Pune 3 Hyderabad Satara 1 1 Vishakapatnam 1 Gulbarga 3 Vijayawada Kolhapur 1 1 1 1 Rajahmundry Hubli 1 Guntur Belgaum 1 1 1 Kurnool 2 Hospet Goa 1 Nellore Dealer Network Expansion trend
Tirupati 160 150 Mangalore 1 6 Bangalore 1 1 140 4 Chennai Myso re 1 1 120 Kannur Vellore 97 100 1 82 1 77 Calicut 80 67 Mallapuram 1 1 Coimbatore 60 1 1 Trichy Thrissur Outlets of No Cochin 2 40 1 Kottyam 1 Madurai 20 1 Tirunelveli 0 Thiruvananthapuram 1 2007 2008 2009 2010 2011
72 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Dealer Environmental Risk Audit Programme (DERAP) This is a program designed by the • Proper treatment of drainage Toyota Motor Corporation to ensure water DERAP Status [2010~11] efficient environment risk management for dealer workshops. • Proper recovery of AC gas. 100- 89% It has five important aspects of 82 This program is an indication of environment management i.e. 80- 73 TKM's perseverance towards • Presence of environment influencing stakeholders in making 60- promotion staff. informed sustainable decisions and building policies in alignment with 40- • Declaration of abidance to law our sustainable goals. We are dedicated towards ensuring 100 • Proper storage and treatment of 20- percent dealer compliance with this hazardous waste policy. 0- Eligible Dealers DERAP Compliant
ISO 14001 Certification at Dealerships: ISO 14001 Certification [2010~11]
As a first step, establishing TKM standard operating procedure is 100- 90% encourages its dealers to established at dealerships to 82 implement Environment visualize ISO certification status, 80- Management System (EMS) at surveillance audit and certification 74
dealerships. One of the tools used expiry date. 60- for this is ISO: 14001 certification. Eligible dealers refer to the Toyota Kirloskar Motor strongly 40- recommends that its dealers go for dealerships which are sufficiently old enough and stabilised over a the certification, as it ensures 20- awareness among all members at period of time.
all levels at the dealerships. A 0- Eligible Dealers ISO 14001 Compliant
Training Camp for Polytechnic students at Toyota Dealerships
Introduction and presentation about Sharing Information to Students we Awareness promotion on salient the company Profile. care for environment features of Toyota Dealerships
To motivate Technicians at Dealerships, regular training programmes are conducted and followed by setting test. Encouraging Technicians by rewarding with prizes for qualifying in each test.
Refresher training programs to dealership technicians on concurrent new technologies
73 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Health camps organized by Dealerships for employees and their families, particularly for workshop members, Housekeeping and Pantry workers.
Zonal Star Service Advisor: Selection will be done based on the performance analysis.
Motivation Activity for Employees at Toyota Dealerships
Provide cycles to washing staff Employees towards health and social well being
Annual get together party for employees and their families
74 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Water Borne Paints
After the successful minimizes the effects of VOC's to the use of water borne paints in all implementation of WBP at the new the environment. The use of water Toyota dealerships by the end of the Etios Plant, TKM has implemented borne paints in Toyota Dealerships FY 2012. the similar painting process at few will be introduced in multiple of its dealer locations. This practice phases. Our target is to implement
Dealership coverage
75 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Environmentally responsible operations at Toyota Dealerships A Toyota Kirloskar Motor dealership dealership, as the disposed water metal waste. These wastes are is set up using a responsible may contain mud and detergents . collected separately, by category, in framework as the foundation Effluent treatment plants and specified containers for recycling or towards building a sustainable sewage treatment plants are also appropriate disposal. facility. The key practices followed being established in many to ensure efficient waste dealerships to reuse the water for - In the paint preparation stalls of management and hazard reduction gardening, sanitation and other the body and paint workshop, a are as follows: activities that can utilize recycled dust collection system is being water. implemented to make the - We activate a dealership facility workshop free of paint particles and with minimum availability of a 3- - The waste generated at dealer thus ensure a cleaner working stage separator to treat the water locations are categorized into non environment used for washing vehicles in the bio-degradable, bio-degradable and
Wastewater treatment facilities at Waste segregation and safe State-of-the-art body and paint dealerships disposal facilities at dealerships
Go green Movement: developing and incorporating new • Use of recycled and technologies to operate businesses environmental friendly building The Movements seeks to give a and meet growing needs. These materials technologies, more often than not, human face to environmental • Quality indoor air quality for run off some form of energy which issues; empower people to become human safety and comfort active agents of sustainable and adversely affects the environment. equitable development; promote an TKM has adopted the Green • Efficient use of water understanding that communities Building concept at the new • Use of renewable energy are pivotal to changing attitudes dealership at Sahibabad and towards environmental issues; and upcoming dealership at Noida to • Effective controls and building advocate partnership, which will reduce these impacts. management ensure that all nations and people • Effective use of existing enjoy a safer and more prosperous The green buildings incorporate landscape future. the following green features: • Use of energy efficient and eco- Office spaces are constantly friendly equipment
Distribution of a sapling along with the newly purchased Environment commitment display at Toyota dealerships 76 vehicle at Toyota dealerships TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Under Deck Insulation for Energy Efficiency Solar Geyser for Energy Efficiency
Environment Month The Movements seeks to give a enjoy a safer and more prosperous human face to environmental future. activities: issues; empower people to become active agents of sustainable and June 5th of every year is World equitable development; promote an Environment Day. TKM makes it a understanding that communities point to observe this and take the are pivotal to changing attitudes opportunity to raise awareness towards environmental issues; and throughout the organization about advocate partnership, which will environmental issues. ensure that all nations and people
Celebration of Environmental Day on Celebration of Forest Day 5th Jun 2011 with Customer Safety Campaign at Dealership:
Workplace Safety and housekeeping First time of its kind an Safety 120- campaign exclusive for Body and Vehicle aisle Paint shop was organised at Toyota Trolley not at designated place Dealership with following objectives 100- to bring about a cultural mindset Waste material change in Body and Paint shop 80- Bay cleanliness towards ensuring 5S at work-place, Tools lying on floor Motivate Body and Paint members 60- to work in a team towards Parts on floor maintaining 5S at workshop and 40- finally involving dealer top management in sensitizing Body 20- and Paint members on 5S and Safety. 0- 2008-09 2009-10 2010-11
77 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Save India’s Coast India’s coastal area stretches conservation and restoration approximately 6000km wide, of efforts. NDTV -TOYOTA “Coastal which just half remains Express” yacht travelled along undestroyed. This is being India’s coastline to report on considered as one of the facts and impacts on the biggest disasters beaches. The Yacht facing India’s travelled on a 45 day environment. campaign and Toyota Kirloskar covered 8-10 major Motor has coastal areas and partnered with helped transform NDTV for the several beach “Save India’s stretches. The Coastline” initiative aims to initiative, a set petition the of activities that government to take are undertaken to action to save India’s address various beaches. Greenathon - III
The NDTV-Toyota Greenathon is an interviews, green activities across It received an overwhelming event conceptualized by NDTV and India, reports on environment, green response and garnered support TKM to raise money to support pledges by celebrities, politicians from different parts of the world, TERI’s initiative – Lighting a Billion and the common man. including the country’s leading Lives which aims at providing solar corporates, celebrities, musicians, power to villages without electricity. In Year 1, we raised funds to light up environmentalists, NGOs and Over 1.6 billion people in the world 56 villages and in Greenathon 2, the educational institutions. lack access to electricity of which event resulted in 115 villages being Total no. of villages adopted: 580 around 25 per cent are in India provided with solar power. The alone. For these people, life comes latest edition was implemented Total Donations in Rupees : 11.6 to a standstill after dusk. The with a high benchmark and with Crore Greenathon is a 24-hour live increased efforts and planning it telethon played across the NDTV turned out to be bigger and greener Total no. of lives lit : 1.43 Lakh network, combining elements of than the previous editions as it celebrity performances and expanded its reach internationally.
Toyota Green award A first-of-its-kind award in India, Green Awards aim to recognize excellence in all sections of the society - Rural, Urban, Corporate, Domestic, Educational Institutions and Resident Welfare Associations. New Delhi, After the huge success of Greenathon I and II, Toyota in partnership with NDTV announced the Green Awards to encourage, acknowledge and award the Champions of the Earth for environmental leadership (globally) contributing most towards protecting our environment. 78 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Toyota Q-world Locations
Toyota ‘Q’ World – an exclusive auto show:
Customers across India got an opportunity to see the Toyota Etios concept and an exciting array of Toyota vehicles that where showcased, exhibiting Toyota quality and technology.
Customers got the touch and feel of Toyota range of cars with advanced and environment friendly technology
Toyota Q-world glimses
79 TOYOTA KIRLOSKAR MOTOR
SUSTAINABILITY REPORT 2011
Economic Performance
Our commitment to product the global economic crisis resulted growth numbers during the excellence has once again shown in in a heightened drop in automobile reporting period. Increase in sales the form of our financial turnover. sales in India, TKM utilized the units along with continuous process The reporting period saw a rise in economic reforms during the improvements were the key turnover by over 35%. The fiscal subsequent years to ramp up sales. highlights for optimizing financial year 2010-2011 was a great year for results during the year. Toyota Kirloskar Motor as the TKM built an additional plant to healthy growth of economy showed increase output capacity. The Etios, on our financials. The downturn produced at the new plant, during the year 2008-2009 due to contributed significantly to the
Key Financial Data
Particulars 2010-2011 2009-2010
Total Revenue Rs. Mil 78,378 57,901
Profit before Tax Rs. Mil 3,523 4,752
Profit after Tax Rs. Mil 2,216 3,093
Total Assets Rs. Mil 36,365 1 5,768
Shareholder's Equity Rs. Mil 7,000 7,000
Basic/ Diluted Earnings Per Share Rs. 3.17 4.42
Toyota Kirloskar Market Share Production / Product / [in respective segments] (%) Outputs* Motor manufactures Services Innova, Corolla
08-09 09-10 10-11 08-09 09-10 10-11 Fortuner and Etios brand models on-site, 1. INNOVA 34 32 31 and imports and 2. COROLLA 27 23 28 46,251 63,269 75,099 markets Prius, Land 3. FORTUNER - 54 71 Cruiser, Prado, Camry 4. ETIOS - - 2 models in India. The 5. CAMRY 9 6 5 production data for all 6. PRADO 4 25 7.4 492 504 689 these vehicles is 7. LAND CRUISER - 2 1.5 presented in this 8. PRIUS - - 2 section
81 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
GRI Sustainability Reporting Guidelines G3.1 This report is developed with the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting Guidelines as a framework to report sustainability data. To locate the fundamentals and information contained within the guidelines, use the index below. For a detailed explanation of the indicators, visit the GRI website.
Indicator Description Page /Remarks Indicator Description Page /Remarks Strategy and Analysis Commitments to External Initiative
1.1 Statement from the MD 04 4.11 The precautionary approach or principle NA 1.2 Description of key impacts, 04 4.12 Externally developed charters, 07,08,09 risks and opportunities principles, or other initiatives Organizational Profile Stakeholder Engagement
2.1 Name of the organization 11 4.14 List of stakeholder groups 21 engaged by the organization. 2.2 Primary brands, products, and/or services 12 4.15 Basis for identification and 21 2.3 Operational structure of the organization 11 selection of stakeholders 2.4 Location of organization's headquarters 11 4.16 Approaches to stakeholder 21,39,41,54, 62-64 engagement 68,70,71,74,77 2.5 Number of countries where 11 the organization operates 4.17 Topics and concerns that have been raised 21,54, 40,41 through stakeholder engagement 2.6 Nature of ownership and legal form 11 Materials 2.7 Markets served 11 EN1 Materials used by weight or volume 26,27,28 2.8 Scale of the reporting organization 11,53,81 EN2 Percentage of materials used 27 2.9 Significant changes during 04,16,51,78 that are recycled input materials. the reporting period Energy 2.10 Awards received in the reporting period 16 EN3 Direct energy consumption by primary 26,28 Report Parameters energy source. 3.1 Reporting period for information provided 02 EN5 Energy saved due to conservation 30 3.2 Date of most recent 02 and efficiency improvements 3.3 Reporting cycle 02 Water 3.4 Contact point for questions regarding the 02 EN8 Total water withdrawal by source 27 report or its contents EN9 Water sources significantly affected 27 Report Scope and Boundary by withdrawal of water
3.5 Process for defining report content 02 EN10 Percentage and total volume 30 of water recycled and reused 3.6 Boundary of the report 02 Biodiversity 3.7 State any specific limitations on the scope 02 or boundary of the report EN11 Land with activities in areas of 14 high biodiversity value 3.8 Basis for reporting on joint ventures, subsidiaries, NA leased, facilities, outsourced operations, and EN12 Significant impacts on biodiversity 34,35 other entities that can significantly affect in protected areas comparability from period to period and/or EN13 Habitats protected or restored. 34 between organizations EN14 Strategies for managing impacts on biodiversity 34 3.10 Re-statements of information NA provided in earlier reports EN15 IUCN Red List species in None areas affected by operations 3.11 Significant changes from 02 previous reporting periods Emissions, Effluents, and Waste
GRI Content Index EN17 Other relevant indirect green 32 house gas emissions by weight 3.12 Standard Disclosures table 82 EN18 Initiatives to reduce greenhouse 29 Governance, Commitments, and Engagement gas emissions and reductionsachieved Governance EN20 NO, SO, and other significant 32 4.1 Governance structure of the organization 19,20 air emissions by type and weight 4.2 Chair of the highest governance body 19,20 EN21 Total water discharge by quality and destination 32 4.3 Members of the highest governance body 20 EN22 Total weight of waste by type and disposal method 29 4.8 Internally developed statements 17,18 EN23 Total number and volume of significant spills. 29 4.9 Identification and management, of economic, 18,19 EN24 Weight of waste deemed hazardous and percentage 29 environmental, and social performance of transported waste shipped internationally EN25 Water bodies and related habitats significantly 27 affected by discharges of water and runoff 82 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2011
Indicator Description Page /Remarks Indicator Description Page /Remarks Products and Services Equal Renumeration for Women and Men EN26 Initiatives to mitigate environmental 68,67,73 LA14 Ratio of basic salary and remuneration 53 impacts of products and services 75,76 of women to men Compliance Local Community EN28 Noncompliance with environmental 29 SO1 Operations with implemented local 78 laws and regulations. community engagement, impact assessments, and development programs Investment and Procurement Practices SO9 Operations with negative impacts on NA HR1 Contracts that include clauses incorporating 52 local communities human rights concerns SO10 Prevention and mitigation measures with NA HR2 Suppliers, contractors and other business partners 52 negative impacts on local communities that have undergone human rights screening Corruption HR3 Training on policies and procedures concerning 55 aspects of human rights SO3 Training in organization's anti-corruption 19 policies and procedures Non - Discrimination SO4 Actions taken in response to incidents of corruption NA HR4 Total number of incidents of discrimination and corrective actions taken Public Policy Freedom of Association and Collective Bargaining SO5 Public policy positions and participation in NA public policy development and lobbying HR5 Actions taken to support the right to exercise 54 freedom of association and collective bargaining SO6 Financial and in-kind contributions to political NA parties, politicians, and related institutions Child Labor Compliance HR6 Incidents of child labor, and measures taken to contribute to the effective abolition of child labor SO8 Significant fines and number of non-monetary NA sanctions for noncompliance Forced and Compulsory Labor Customer Health and Safety HR7 Incidents of forced or compulsory labor, and measures to contribute to the elimination of all PR1 Health and safety impacts of 38,39,41 forms of forced or compulsory labor products and services Security Practice PR2 Incidents of non-compliance concerning NA health and safety impacts of HR8 Percentage of security personnel trained in 57 products and services the organization's policies or procedures concerning aspects of human rights that are Product and Service Labeling relevant to operations. PR3 Type of product and service information required 41 Indigenous Rights PR4 Incidents of non-compliance concerning NA HR9 Total number of incidents of violations involving products and service information rights of indigenous people and actions taken. PR5 Practices related to customer satisfaction, 39 Assessment including results of surveys measuring customer satisfaction HR10 Percentage and total number of operations that have been subject to human rights reviews Marketing Communications and/or impact assessments. PR7 Incidents of non-compliance concerning NA Remediation marketing communications HR11 Number of grievances related to human None Customer Privacy rights filed, addressed and resolved through formal grievance mechanisms. PR8 Complaints regarding breaches of customer NA privacy and losses of customer data Employment Compliance LA1 Total workforce 53 PR9 Noncompliance with laws and regulations NA LA2 Total number and rate of new employee hires 54 concerning the provision and use of and employee turnover products and services Labor/Management Relations Economic Performance LA4 Percentage of employees covered by collective 54 EC1 Direct economic value generated and distributed 81 bargaining agreements EC4 Significant financial assistance NA LA5 Minimum notice period(s) regarding 54 received from government operational changes Market Presence Occupational Health and Safety EC6 Policy, practices, and proportion of spending 70 LA6 Total workforce represented in formal joint 60 on locally-based suppliers management-worker health and safety committees Legend NA - Not Applicable LA8 Education, training, counseling, prevention, 59 and risk-control programs regarding serious diseases Training and Education LA10 Average hours of training per year 55 LA11 Programs for skills management and 55 lifelong learning LA12 Regular performance and career 55 development reviews 83 TOYOTA KIRLOSKAR MOTOR A New Chapter in Toyota History A proud tradition of creating products that earn smiles from customers around the globe Earning smiles from new generations of customers as a company worthy of sustainable growth For further information and feedback on this Report please contact:
Safety & Environment Dept., Plant Administration Division, TOYOTA KIRLOSKAR MOTOR PVT. LTD Plot No.1, Bidadi Industrial Area, Bidadi, Ramanagar Dist. Pin: 562 109. Karnataka, IndiaTel: +91-80-66292098 / 66292382 Fax : +91-80-27287076 / 77 Email: [email protected] www.toyotabharat.com
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