2019: Tighter emissions regulations led to collaboration

This project began when the opinion arose within Toyota that a competitive vehicle powered by Brazilian-made NR engines should be considered as an option in response to stricter emissions regulations in Brazil. Daihatsu also believed it could contribute to the project’s competitiveness and decided to join. First, teams from R&D, purchasing, and production engineering visited local suppliers and TDB’s plants to conduct market research and explore the potential for local procurement.

2020: Working out specifications and pricing remotely amid the COVID-19 pandemic

The COVID-19 pandemic forced us to conduct all communications with the local team remotely. We shared drawings with suppliers to request quotes and shared videos of Daihatsu’s plants with TDB to help them better understand Daihatsu’s approach. We also repeatedly explained budget considerations and Daihatsu’s unique Simple, Slim and Compact (SSC) (to be mentioned later ) concept to Inoue-san, Chief Executive Officer of Toyota's Latin America & Caribbean Region at the time (now President of Daihatsu).

2021: Securing cost reductions through local business trips

With travel severely restricted worldwide, there were limits to what could be achieved remotely. Therefore, with special permission from Toyota, we traveled to the site to verify the details of the quotes. Once there, we visited plants and suppliers, and then verified the details at the hotel while calculating the costs. When we determined that design changes to parts or structures were necessary, we proceeded flexibly while obtaining approval from top management.

Overcoming a challenging environment with partners

With restaurants closed, we relied on Uber Eats for meals every day. On days off, we took walks through sugarcane fields to deepen our understanding of ethanol, a biofuel unique to Brazil. The environment was challenging, but we overcame it with the support of our partners from both Daihatsu and Toyota. It was one of the most enjoyable jobs of my life. Having demonstrated profitability through a six-month FS and presented our proposal together with Inoue-san, we secured approval for a local collaboration.

On-site verification and trust were the keys to success

What I learned through this project is that even in difficult circumstances, success is possible through diligent on-site verification and the support of trusted partners. I am proud that we were able to overcome obstacles one step at a time as a team and make this collaboration a reality.

Daihatsu-style MONODUKURI

I’ve had a long-standing relationship with TDB and have been involved in this project alongside Kotani-san since the FS in 2019. In 2019, we formulated hypotheses and developed the plan on-site. In 2021, professionals from various fields worked with suppliers and TDB to refine the proposal through repeated demonstrations. Then, in 2022, Daihatsu expatriates put it into action. This entire process, from planning to validation and execution, is what I believe to be Daihatsu’s true strength. When I was sent to TDB, I received a mission from TDB’s top management, led by Inoue-san, to combine the best aspects of Toyota and Daihatsu. I began working with Yoshimura-san from TDB, who was in charge of the plant.

Conveying the essence of SSC

Daihatsu’s “Simple, Slim, Compact (SSC)” concept tends to be understood only at the surface level on site, with comments like “the jigs have gotten smaller” or “the layout has become more compact.” However, SSC is not merely a method for downsizing equipment. It is a concept that is based on the thorough implementation of the 4S 5 Sets approach, which forms the foundation of Toyota’s philosophy. The key lies in the underlying spirit of taking on challenges and the autonomy of work sites. Through repeated dialogue with TDB and by explaining in detail that Daihatsu’s approach does not contradict Toyota’s culture but that their essence is the same, we have gradually helped them understand the advantages of Daihatsu’s approach, which ultimately led to this collaboration.

The unsung heroes! Support from team members at the Indaiatuba Plant team

The Indaiatuba Plant of TDB also played an essential role in this project at the Sorocaba Plant. They took the lead in adopting SSC and, through repeated demonstrations, shared their expertise with the Sorocaba Plant. It is thanks to these behind-the-scenes efforts that our current production system is in place. I would like to emphasize that this collaboration was made possible only through the Indaiatuba Plant’s proactive and steady efforts.

Cost improvement and infrastructure development for suppliers

For the Yaris Cross project, we launched Trinity activities aimed at enhancing our suppliers’ competitiveness. I served as the leader of the production engineering team for those activities. Later on, I also took on the role of development project leader. Working alongside the TDB team to refine the Yaris Cross into a competitive vehicle gave me a great sense of accomplishment.

Embedding the SSC concept on-site

Another achievement was extending Daihatsu’s SSC concept to suppliers, which laid the foundation for continuous improvement. SSC is a zero-based methodology, so gaining understanding regarding the parts-based approach and budgetary considerations was not easy, and we ran into obstacles many times. Nevertheless, through repeated dialogue, suppliers ultimately came to accept the SSC concept, and we were able to establish a framework for continuous improvement.

Sharing and solving issues through a genchi genbutsu approach

When assessing the quality status of our suppliers or the validity of their quotes, we didn’t just review the information at our desks. We always made a point of visiting the sites in person to verify the actual conditions of the production processes and equipment together. We immersed ourselves deeply in our suppliers’ operations alongside the TDB team, identifying issues and solving them together. I believe it is this cumulative effort that led to the results we achieved.

Towards continuous improvement that strengthens people

We have consistently made proposals not on a per-project basis, but from the perspective of making work easier for employees and empowering them, as well as strengthening and bringing happiness to our suppliers themselves. As a result, a culture of voluntarily continuing these activities has taken root among our suppliers, and we have been able to establish them as Trinity activities tailored to the local context.