Breakout Session # Gene Tabor, General Manager, Purchasing Toyota Motor Engineering & Manufacturing North America Da

2. Achieving High Performance in the World of Outsourcing – Supplier Relationships… “The Toyota Way” Breakout Session # Gene Tabor, General Manager, PurchasingToyota Motor Engineering & Manufacturing North America Date Tuesday, April 11, 2006 Time: 9:00 a.m. – 10:00 a.m. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

3. Toyota’s North American Operations • Investment of over $16.8 billion • Employment of over 38,000 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

4. Toyota’s North American Manufacturing Operations CAPTIN TMMC TMMWV SIA NUMMI 8 Assembly Plants TMMI TMMK BODINE TABC 7 Unit Plants TMMBC TMMAL TMMTX NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

5. Supplier Content: 70% We are as strong as the weakest link in our value chain. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

6. The Toyota Way The Toyota Way Respect for People Continuous Improvement Genchi Genbutsu Teamwork Respect Challenge Kaizen NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

7. What is Toyota Doing? Relationship with SuppliersHelp Suppliers Become Stronger • Focus on Collaboration • Work with Suppliers to increase Capability and Competitiveness NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

8. Helping Suppliers Become Stronger Areas Requiring Support • Improving Fundamentals • Quality • Productivity • Project Management • Meeting Challenges • New Plant / Process • New Design / Technology NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

9. Purchasing’s Role (within Toyota) • Involve Experts to Help Suppliers • Improve Communication • Ensure suppliers understand expectations • Ensure that Toyota Listens to Suppliers NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

10. Helping Suppliers Become StrongerSupport Organization Purchasing Engineers TSSC Toyota Production System SE, Project Management Plant QC/Mfg. BT-SQ Plant Operation, Prod. Preparation Quality Management NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

11. Helping Suppliers Become Stronger“Supplier Enhancement” Activity • 4 key cross-functional activities • Operation Improvement • Project Management • Assessment • Human Resource Development • To achieve • Production Stability • Smooth Introduction of New Models NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

12. Helping Suppliers Become StrongerSupplier Association Activity • BAMA (Bluegrass Automotive Manufacturers Association) • GAMA (Golden State Automotive Manufacturers Association) • Dispatch Experts to Support Supplier Activity • Share Best Practices • Learning Conference NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

13. Supplier Carpet FacilityTPS Implementation / BAMA Activity • Multiple Workshops Facilitated Through Supplier Association BAMA • Highlight Shop Floor Improvements through Implementation of TPS Fundamentals NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

14. Communication • Effective Communication of Ideas and Expectations • Increase Information Flow • Increase Electronic Communication NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

15. Listening to Suppliers • Understand Our Impact on Suppliers • Reduce/eliminate unnecessary burden • Address and Implement Improvements • Opportunity for Toyota to improve • Become Better Business Partners NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

16. Listening to Suppliers • “Supplier Relations” Department • Supplier Representative Committee • Quality (ex: Receiving Inspection) • Logistics (ex: Returnable Rack) • “Voice Of Supplier” Committee by BAMA NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

17. “Supplier Relations” at Toyota Partner Suppliers Toyota NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management