Close Toyota partnership develops North Jutlandic subcontractor
“The Hjallerup company has increased the amount of items delivered to the big customer. Today, Toyota has a significant role in the development of the North Jutland subcontractor. The pre-history is that the truck manufacturer experienced difficulties in obtaining the same quality from its subcontractors when producing new product lines. “
This is written in Jern og metalindustri’ newsletter written by Dan S. Frandsen, June 29, 2018. Read the newsletter below:
Hosta Industries has delivered to the Japanese group for the past 20 years
A traditional supplier/customer relationship has developed significantly in recent years. Since 1998, Hosta Industries has supplied a large number of components to Toyota Material Handling, which is the Japanese giant’s forklift truck and powered stackers division.
The Hjallerup-based company has slowly increased the number of items delivered to the major customer. Today, Toyota has a significant role in the development of the North Jutlandic subcontractor. The background is that the truck manufacturer found that it was difficult to get a uniform quality from its suppliers when new product ranges were to be produced.
Therefore, Toyota launched a range that suppliers were offered with the aim that the range should bring suppliers up to Toyota’s standard. Two years ago, Hosta accepted the offer.
“It is a 10-stage rocket in which one goes through the processes from data collection, lean, quality, standardisation and improvements. Toyota contributes as a consultant”, says Christian Mosevang, CEO of Hosta Industries.
Hosta has over 1000 different items that they supply to the Japanese group. Some items are produced in large quantities, while others are single items.
It was not without careful consideration that Hosta went into partnership with Toyota. Toyota comes with input that takes its starting point in their day-to-day business, and therefore Hosta also needs to tailor initiatives to their day-to-day business to suit all customers.
“When the offer came, it required some careful consideration to say yes. For one thing, the whole mindset about how to act on a day-to-day basis. We should act as such to all of our customers and not just Toyota, because we take all customers through the same process”, says Christian Mosevang.
Provides eye-opening experiences
After about two years, the subcontractor has reached phase 6. Here it is about standardisation and preventive maintenance of machinery and equipment. The CEO says that there is also a reward in the end.
The partnership agreement also means that the more you progress in a series of steps, the more tasks you have the opportunity to bid for. The components are becoming more and more critical.
“You get some eye-opening experiences. Why have you not thought of that? It is wonderful to work with them as it is not because they say that what they do is right. They also take the input that we have in their organisation.
Toyota makes its services available free of charge. However, Hosta must be committed and provide the people who are needed. So development requires internal resources to adapt templates and standards.
“They look at our factory with different eyes, and they press where we know it is likely to hurt. We try to bring the errors to light. You will not be beheaded if you make a mistake. You must acknowledge the error. It provides an open dialogue and dynamics. We do not only focus on errors”, says the CEO.
Christian Mosevang also points out that because Hosta has grown in terms of employee numbers, it is a strength to have standards. “This is where you need to check, and it is this that is important. It will be described and documented – preferably with photos. It gives time to breathe.