Embraer Retains Toyota for Production Expertise

 - July 1, 2022, 10:14 AM
Embraer CEO Francisco Gomes Neto and Rafael Chang, president of Toyota do Brasil, celebrate Embraer's move toward potentially incorporating operational principles from the auto manufacturer. (Photo: Embraer)

Embraer is working with Toyota do Brasil to maximize production efficiency. Announcing an agreement this morning, Embraer said it would "embrace" Toyota Product System (TPS) principles and concepts for its industrial operations as it seeks to eliminate waste, lower costs, and improve efficiency. The move comes a month after Embraer spinoff Eve said it has retained Porsche Consulting for recommendations on developing a supply chain for high-volume rates of production.

Initially, a Toyota TPS team will delve into Embraer’s operations to evaluate and recommend improvements for the Brazilian airframer’s main manufacturing plant at São José dos Campos. TPS methods can apply to different applications, explained Rafael Chang, president of Toyota do Brasil. One primary area Embraer expects to explore is the use of a just-in-time approach providing a continuous flow of manufacturing and use of parts, reducing excess inventories.

“More than efficiency and productivity, the TPS can provide solutions that allow industry and other sectors to continuously improve their processes, which is one of Toyota's pillars worldwide,” Chang said.

“Bringing Toyota to execute this work reinforces Embraer’s commitment to focus on business excellence and sustainable growth,” said Embraer CEO Francisco Gomes Neto. “It will be an excellent opportunity to exchange knowledge and accelerate the usage of the Lean philosophy in the production systems while strengthening practices already conducted by the Embraer Enterprise Excellence Program, the P3E.”

Embraer adopted the Lean approach in 2007 and credited its P3E program for transforming its operations and enabling the company to make “big steps” in improving processes.