Spirit Magazine
June - August 2005
 
     
  Grand Opening of Borneo Motors Central Parts Depot
 
     
     
 

Tuesday 26th April 2005 marked the Grand Opening of the new Borneo Motors Central Parts Depot (CPD) at 21 Pandan Avenue, by distinguished Guest-of-Honour Mr. Khaw Boon Wan, Minister For Health.

Part of Borneo Motors' $6 million Aftersales Expansion plan, this new $2.2 million facility has a storage area of 7,222 m2, which is twice the size of the previous parts warehouse, as well as 10 container loading bays. In fact, the new CPD is more than just a parts depot. It is a modernized logistics hub that represents a whole new advancement of Borneo Motors’ strive for Customer Excellence, maintaining a constant availability and ready supply of parts and accessories for our customers.

This enhanced warehousing facility and Aftersales distribution nucleus that boasts of one of the largest distribution networks in Singapore’s automotive industry, embraces the principles of the Toyota Production System (TPS) and Kaizen, to ensure that it is the new cutting edge distribution hub to support the entire Borneo Motors Singapore Aftersales network.

 
TPS is a customer-focused system. The foundation of TPS is Heijunka - the principle of the “Sell-One-Buy-One” concept where supply is triggered by customers’ demand, and parts are immediately replenished upon a sale. TPS is supported by 2 pillars – Jidoka and Just-In- Time. The former refers to the coordinated effort of production and operation functions to respond most efficiently to customers’ needs, whilst the latter is a concept of producing items needed by the next process when they are required and in the optimum quantity. Thus, in Borneo Motors, 4 delivery trips are made to 11 different locations daily, hence allowing us to achieve a Service Rate of 97%. In other words, out of 100 cars, parts for 97 cars will be supplied immediately. This result is one of the highest in the industry and ranks remarkably high according to the Toyota Standards.

Lion dance welcoming guests at the Central Parts Depot Grand Opening.


Arrival of Guest-of-Honour, Minister for Health, Mr. Khaw Boon Wan, together with Mr. William Tsui (far left) and Mr. Mark Choong (2nd from left).
 
TPS eliminates waste and idle time, and optimizes resource utilization and reduces unnecessary costs. This allows the CPD to maximize productivity and minimize logistics costs to serve our customers faster and better. With TPS concepts in mind, the CPD can plan and time delivery routes to ensure that all our Service Centres obtain parts needed Just-In-Time, in the Right Quantity, Right Place and Right Time.

TPS is globally recognized as one of the best practices in systems and operations planning and is adopted by corporations worldwide and across industries. In fact, in 2004, Alexandra Hospital approached Borneo Motors Singapore (BMS) to learn the mechanics of TPS, and this collaboration has reaped significant benefits for both parties. This is just one of the many ways in which Borneo Motors works hand-in-hand with the public sector to contribute to the Singapore society.

 

Plaque Unveiling Ceremony by Minister Khaw. From left: Minister Khaw, Mr. K. Kuroda (Group Manager, Toyota Motor Corporation) and Mr. William Tsui.
 

Kaizen is, briefly, the concept of continuous improvement. Both TPS and Kaizen are adopted in the design and operation of the CPD to streamline logistics operation and optimize efficiency for maximum customer satisfaction. The layout of the new CPD showcases a new storage system that adopts Toyota’s “Five S” principles – Seiri (removal of unnecessary items from the workplace), Seiton (proper organization), Seiso (cleanliness at the workplace), Seiketsu (standardization of procedures) and Shitsuke (self-discipline) – or in simple English; Sort, Straighten, Shine, Standardise and Sustain, to create a workplace suited for visual control and lean production. We have also incorporated Toyota’s “Seven Storage Techniques”, where similar parts are grouped together and sorted in a way that is easy for the workers to spot and retrieve. Thus, fast moving items are placed near the aisles to improve picking and binning operations, eliminating unnecessary waste of time. The end result is efficient delivery of the required parts to our Service Centres and ultimately to you, our loyal Toyota customer.

In addition, BMS has made huge investments in technology for the new CPD – with partial funding from and collaboration with the Infocomm Development Authority (IDA), another public agency, BMS has established a new software system - the Electronic Quotation System (EQS) software – the first web-based system used in the automotive industry. EQS allows customers to obtain online, the price of car parts, by simply logging in with a password and keying in the part serial numbers. Soon, we will take it another step ahead, by implementing a Bar-Coding system to enhance our CPD’s distribution system.

 

Mr William Tsui, CEO of Borneo Motors (S) Pte Ltd said, “The changes we have made in our operations and system are in line with Borneo Motors’ philosophy of ‘Customer First’, to provide Toyota drivers in Singapore with better prices and quality service at all times.”

And this “Customer First” philosophy is the guiding principle in the way our new CPD is designed, organized and built. At Borneo Motors, not only will you be assured that only Toyota Genuine Parts will be used, the economic benefits reaped by embracing technology and sophisticated logistics systems will ensure that valued Toyota customers will enjoy optimal service and competitive prices always.


Lion dance welcoming guests at the Central Parts Depot Grand Opening.