Automotive Heroes find Toyota opportunities

When Toyota decided to open a new production plant in San Antonio, Texas, for its popular Tundra pick up trucks, the dynamic automaker made clear its intentions to follow a model it knew would yield success. The firm made a commitment to form strategic relationships with an array of suppliers willing to establish on-site operations.The Hero companies - Hero Assemblers and Hero Logistics, were among the firms selected. Formed soon after Toyota announced its intentions in 2004, the two companies are owned by business partners Ray Romero and Frank Herrera. With a few decades of management experience, Romero handles the day- today operations for both businesses in his role as president of Hero Assemblers and vice president of Hero Logistics. Herrera, a practicing attorney, serves as an executive voice on the board of directors but is not actively involved in the day-to-day operations.

Understanding operations

By design, the companies founded by Romero and Herrera have differing yet complementary roles. Hero Assemblers is the wheel and tire assembly contractor within the Toyota plant. Essentially, this means that Hero purchases Toyota- specified wheel and tire components based on projected Tundra production requirements. Hero then completes the entire subassembly using its own equipment, which includes mounting the wheels and tires, as well as installing all of the tire-pressure monitoring valves and units.

Once the wheel and tire assemblies reach completion and pass inspection, Hero Logistics enters the picture. According to Romero, the logistics side is instrumental in easing the transactions between Toyota and all of the on-site suppliers, who each have a responsibility to produce or support the Tundra production components.

Each of the on-site suppliers including Hero Assemblers needs to be able to integrate its products into the Toyota assembly line with a high level of consistency. As a result, we handle all the logistics involved in this transaction, Romero said. Rather than Toyota having 20 different companies operating with their own delivery processes, they have one firm bringing all the products into the mix. In addition, we are responsible for the material transfers whenever an outside firm delivers a product to the Toyota campus. Once the trailer is at the dock, the subsequent movement is handled by our drivers.

Mapping the way

Romero is proud of the fact that Hero has gone through the first full year of production without any serious issues. We continue to operate relatively clean and take pride in our dependable and reliable results, he said.

One key aspect to Hero’s efficiency has been its dedication to building and maintaining a solid core of team members who ultimately possess the skills for success. For us and in our business model, attracting good people really means finding and embracing team members with a willingness to learn and adapt, Romero said.

This doesn’t mean that workers necessarily need to have an industry-specific skill set. Having worked primarily in the international communications sector, Romero came into the automotive industry with a clean slate rather than bringing with him the knowledge of any legacy system from one of the various domestic manufacturers. Fortunately, this model has paid off for us, even though the challenge of understanding expectations was very real, especially since [Toyota Production System] is a continuously evolving process, Romero said. It is not something you just learn, it is a journey that changes day to day. I deeply immersed myself within this industry and quickly learned the terms and requirements, including understanding efficiencies and what can positively impact production. The results have been very surprising and rewarding.

Road ahead

While Hero’s operations are designed to adequately meet a set number of Tundra trucks per year, the long-term future for Hero heavily depends on Tundra sales numbers. Romero told Minority Business News that when working within the automotive sector, diverse firms need to recognize that certification is a must. We have embraced the model of diversity and certification that initially gave us an opportunity to excel in the first place, he said. Obviously, we too recognize the value of certification and have put forth a plan to work with as many certified firms as possible.