0

Indonesia Automotive

Industries' Situation

and Challenges

Toward IR 4.0

1

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2017

Contribution from Automotive Industry

Manufacturing is one of the key industries to support Indonesia economy growth, and

inside manufacturing industry, automotive related industry contribute ≈ 6% of total GDP.

GDP by Industry (2017 Q3) Breakdown GDP of Manufacturing (2017 Q3)

(Trillion IDR)

22.05%

Agriculture, Livestock,

Forestry and Fishery

Mining and Quarrying

Manufacturing Industry

Electricity, Gas & Water Supply

Construction

Trade, Hotel &

Restaurants

Transport and

Communication

Finance, Real Estate,

Business Services

Services

13.81%

8.21%

1.14%

10.17%

16.86%

9.45%

9.03%

5.98%

Manufacturing

Industry GDP

(2017 Q3)

Food &

Beverage

30%

*Metal Goods

Industry

10%

Others

Manufacturing

Industry Including

Oil and Gas

42%

*Chemical

Industry

9%

* Some of the chemical and metal goods are related with Auto IndustrySource: BPS

Related Automotive Industry

and Supply Chain ( ≈ 28%)

Equal to 6% of Total GDP

Transport &

Equipment

9%

Others 3.31%

2

Phillipines

France

UK

Italy

Germany

Indonesia

Japan

Brazil

Argentina

MexicoVietnam

Korea

Canada

USA

RussiaTurkey

Sweden

Belgium

AustriaNetherlands

Thailand

Poland

Spain

Malaysia

India

China

Potential of Indonesia Automotive Industry

Consider from the car ownership number per 1000 person, Indonesia automotive market

still has the huge potential to develop in future.

GDP per Capita x Car Ownership Ratio of Each Country (2016)

Car Ownership per 1000 person

Developed

Countries

Developing

Countries

Source: Marklines, JAMA, EIU

90 223

594

0

10,000

20,000

30,000

40,000

50,000

60,000

0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850

GD

P p

er

Capita (

US

D)

3

FTA・EPA Condition Surrounding Indonesia

Expansion of globalization trend provides opportunity for other countries to increase their

export product to Indonesia, Indonesia is facing the challenge of competition.

Source: JETRO, FOURIN, ASEAN

FTA condition around Indonesia

Indonesia

Singapore

VietnamMalaysia

Thailand

China

India

KoreaEU

ASEAN0%*

(2010)

20% ⇒ 5%

(2017)

Japan5%

(2016)25%

(2018)

5%

(2017)

TBA

(2018)

How Indonesia to survive

the global competition

Challenge In front of

Indonesia

4

Challenges Toward IR 4.0

(Example for using IR 4.0 technology

into operation)

5

Our Challenges for Shifting to IR 4.0

Toward IR 4.0 to improve “Productivity”, “Supply Chain Productivity” and “Trace Ability” to

win the competition both domestic and export

Concept of IR 4.0

Improve the productivity by

reducing “down time” with

adding the sensor to the

machine

Realize efficient Supply

chain with the One End to

end integrated system from

customer to supplier

Productivity

Improvement

Supply Chain

Network

Improvement

A

B

Trace Ability

Improvement

C

Initiative for Applying IR 4.0

Trace the history of

defective parts quickly and

make necessary corrective

action and share

experience

6

Line Down Time

Productivity ImprovementA

IR 4.0 can help manufacture to change from “Preventive to Predictive Maintance” to achieve

“Zero Down Time” with adding the sensor and machine learning.

Before After

Assembly Staff(Fix the machine after the machine broken)

Sensor

Current Operation Concept

Production Line

(inside the production plant)W

T A

Machine

Broken

Machine

Fixed

Production Line

(inside the production plant)W

T A

Data

Tell the machine

condition before

broken

Maintain the machinery before broken

to avoid the Line down

7

Productivity ImprovementA

Toyota Indonesia already start the initiative for “Zero Breakdown by IoT application and

targeting to realize it in 2020.

PLANT #3 ENGINE PROD. DIVISION

TOYOTA MOTOR MANUFACTURING INDONESIA

ZERO BREAKDOWN by IoT APPLICATION

2017 2018

Deterioration Machine check, grasping initial data, creating data base for analysis : • Insulation Motor

Resistance• CNC battery • Motor servo temperature• Motor load • Using cloud camera for

inspection

Quality gate automation, grasping initial data, creating database for

analysis :

• Frequency Analysis

• Process Capability Index Cpk

• Trace ability with Edge Computing

Interfacing machine

and Internet

prototype

2016 2019 onward

2020

Zero

Breakdown

Starting IoT for

Quality Gate

Enhance IoT for

Deterioration

monitoring

Smart Breakdown

prediction system using

IoT

Concept, interfacing method and prototype making for :

1. Production Machine with Internet2. Quality check equipment with internet

Smart PredictiveSystem• Smart prediction

analysis from

mechanical & electrical sensor

• Root cause finding self • Auto scheduling for

maintenance / countermeasure

• Proactivie alert for countemeasure progress

8

ZERO BREAKDOWN ACTIVITY UTILIZE IoT

9

TOYOTA Group Sales Number

TOYOTA Group has more than 50% of market share and exports accounts for almost 90% of

all vehicle exports from Indonesia which currently facing tough competition.

69 116

117 160

175 169 200

14

17 19

13 6 1 1

201

84

133 136 174 183 170

78% 77% 80% 84% 87% 87% 87%

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016 2017

(x1,000 Vehicles)

TOYOTA Brand DAIHATSU & HINO Brand

Indonesia Export Market Share (TOYOTA Group)

Source: GAIKINDO

Supply Chain Production Improvement: Background

Export Number and Destination

(K units)

314 400 435

388326

389 371

137

163 182

184

167

19218525

32

34

30

22

1030

477

595

651602

515

604 586

0

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015 2016 2017

TOYOTA

DAIHATSU

HINO

出所: GAIKINDO, Internal information

B

More than

50% M/S

10

Supply Chain Production Improvement B

Huge number of sales and export over 80 countries is supported by our complicated

domestic and international supply chain.

11

W T A

Supplier-A

ManufacturerDistributor & Dealer

CustomerBefore After

Production Sales

Supplier-B

Supplier-C

Delivery

W T A

Supplier-A

Manufacturer Distributor & Dealer

Customer

Supplier-B

Supplier-C

Best order

allocation

Managed by different system

(system is not linking)

Current Operation

Monitor

Concept

With IR 4.0, manufacturing company can monitor the total sales- production process from

customer to supplier with “Real Time End to End Sysytem” to realize optimum operation.

Supply Chain Production Improvement B

OrderOrderOrder

Order

Logistic

Monitor

By GPS

RealtimeProgressChecked

Production Sales

Shorter

Lead-time

Current E-Kanban

Digitalize Order System (3.0)

CustomerDemand Supply

ProductionLogistics

System-ASystem-BSystem-C

Managed by One “End to End System”

Integrated System

Due to the Complexity of Supply Chain, it is very cruisial to have good ability for traceability

Local

Suppliers

Jabodetabek Area

130 Suppliers

>10.000 items

Component and

Material Imports

7 Countries

>2300 items

TOYOTAINDONESIA

2nd Tiers

+700

Materials

Exporters

Suppliers

FORTUNER

233 TYPE

INNOVA

127 TYPE

VIOS

102 TYPE

YARIS

8 TYPE

SIENTA

21 TYPE

DOMESTIC

317 DEALER

EXPORT

60 COUNTRY

Trace Ability Improvement C

IR 4.0 help us to trace detail production information from defective parts, like which

supplier, time, operator and production lot to support speedy corrective action.

W T A

Supplier Manufacturer Market problem (@ Customer)

Need the lead time to identify

the parts, supplier and Issue

Improve point in production process

W T ASupplier

Market problem (@ Customer)

Before

Quick Action to trace back Defective parts

history

- Which supplier

- Which time and operator

- Which production lot

And make corrective action and “Reflexion”

After

Manufacturer

Production Sales

Current Operation Concept

Production Sales

Distributor & Dealer

Distributor & Dealer

ReportReportReport

Report

Check

Report

Identify

OtherSupplier

Reflexion

Data Base Recording

for trace ability (3.0)

Human resource is the most important asset for Industry, human resource need to catch up

the new skill of IR 4.0 in addition with the mastering existing skill.

Necessary Skill for Human Resource by each Step

Industry 2.0 Industry 3.0 IR 4.0

Basic Skill

Data Analysis

Human Resources Development Toward 4.0 IR

• Communication

• Teamwork

• Discipline Compliance

• Task understanding

• Effective way for

implementing task

• Basic tool skill

• Operation Review Ability

• Machinery Engineering

• Skill of machine using,

maintenance

• Basic knowledge of

internet, technology

• Software using skill

• Data reading skill

• Data analyzing skill

Productivity

Current

Existing Skill New Skill

Task Efficiency

15

Human Resources Development Activities

We conduct HR development activities in TOYOTA Indonesia Academy not only for its own

company but also for local students for long-term development of auto industry.

TOYOTA Indonesia Academy

Item Program Teacher/Trainer Venue

Knowledge (10%)

a. Toyota Way

b. 5R

c. Safety Awareness

d. Fundamental Skill

e. Element Work

f. Basic TPS

g. Basic TJI

h. QCC

i. Suggestion System

j. Industrial Relation

● Teacher from University or

Polytechnic

● TMMIN Trainer

TIA

Skill (60%)

Experiencing 6 job in line (Level 3)

in 1 year

a. Die Making

b. Maintenance

c. Painting

d. Welding

● TMMIN Trainer

● TMMIN Leader

● TIA

● TLC & Plant

Body-Mindset (30%)

a. Initiative

b. Discipline

c. Endurance

d. Teamwork

e. Motivation

f. Sense of Unity

g. Sense of Belonging

h. Loyalty

● TMMIN Pension Leader

● TMMIN Trainer

● TIA

● Dormitory

● Plant

Develop HR skill to prepare future technology &

production process

【Main initiatives】Lecture (TOYOTA way, etc)

OJT in plant

Free tuition + allowance + accommodation

Total Recruitment : 64 Students

Graduation : 32 Graduate

Subject:

−Maintenance : 1 year (2015)

−Production & Logistic : 2 year (2017)

−Next to support the readiness of Human Resources

for Industry Revolution 4.0, we need to develop

competency related Data analysis skill

D

TIA Overview

Thank you !!!!!!!!