Special Feature

2Development and Production Efforts to Generate Greater
Cross-Business Synergies

Leveraging Strengths in Engaging in Diverse
Businesses to Raise the Competitiveness of Products
Capturing a World-Leading Market Share*
Toyota Industries engages in a diverse range of businesses, including car air-conditioning compressors, vehicles, engines,electronics, materials handling equipment and textile machinery. While striving to develop and produce highly competitive
products in each business, we generate new added value and synergies through collaboration across business domains.
Such cross-business efforts have enabled us to garner the world’s No. 1 share for car air-conditioning compressors, lift trucks
and air-jet looms. We meet customers’ expectations with our diverse businesses and technologies.

Our Strengths in the Compressor Businessn Global Automobile Market Forecast (Based on Production)
Gasoline vehicles/diesel vehicles(Thousand units)

HVs/EVs/FCVs

120,000

Toyota Industries’ car air-conditioning compressors have earned ahigh level of trust from our customers, namely the world’s leading
automakers, for their superior fuel efficiency and stable quality, andhave captured the No. 1 share in global unit sales. In addition to car
air-conditioning compressors for conventional vehicles, needs forelectric compressors for hybrid vehicles (HVs), plug-in hybridvehicles (PHVs), electric vehicles (EVs) and fuel cell vehicles (FCVs)
have recently been growing in step with advances in theelectrification of vehicles.

100,000
80,00060,00040,00020,0000(Year) 10

1112

13

14

15

16

17

18

1920

21

2223

Source: February 2016 data, IHS database* Survey by Toyota Industries Corporation

Overwhelming Competitiveness of Electric Car Air-Conditioning Compressor Created through Cross-Business Synergies
Since we developed the world’s firstmass-produced electric car airconditioning compressor (electricMaterials Handling
Equipment

Textile Machinery
Electronicscompressor) in 2003, we have always
remained at the forefront of the global
electric compressor industry. In themeantime, we have developed more
efficient, quieter and more compact
compressors and greatly contributed tothe improvement of automobiles’ fuelefficiency and interior comfort. The
Compressor Division and Electronics
Division collaborated early on from theinitial development stage in thedevelopment of a new electriccompressor, as it needed an inverterthat performs drive control of its internalmotor.
The resulting compressor, the ESB20
mounted in the new Prius released byToyota Motor Corporation (TMC) inDecember 2015, is a culmination of ourcollaborative efforts across businessdomains, and its performance and quality
are already receiving high acclaim.

ESB20 electric compressor mounted in the new Prius

VehicleCar Air-ConditioningCompressor

EngineInverter, a Key Component to Control an Electric Compressor

Automobile

Compressors for conventional vehicles use power fed from the vehicle’s engine to run the airconditioner. In HVs and other similar vehicles, these compressors cannot operate the air conditioner
when the vehicle uses eco-friendly features that stop the engine, such as an idling stop system andelectric drive mode. Electric compressors, on the other hand, are driven by a motor that uses powerfrom the vehicle’s main battery and can run the air conditioner even when the engine is not operating.
An inverter is a key component that performs drive control of this motor. It enables the operation of
the air conditioner during an idling stop in traffic congestion or when the vehicle runs in electric drivemode, helping to ensure a more comfortable vehicle interior and better fuel economy at the same time.

The World’s No. 1 Share Products
Car Air-Conditioning Compressors

Lift Trucks

Air-Jet Looms

Toyota Industries’ car air-conditioning compressors
are highly acclaimed in terms of their reliability athigh operating speeds and quiet operation in addition
to such excellent environmental performance features
as compactness, lighter weight and fuel efficiency,
and have been adopted by the world’s leading
automakers.

Toyota Industries contributes to the optimization ofcustomers’ logistics operations mainly by providing abroad lineup of high-quality lift trucks and throughvarious logistics solutions.

Backed by fully integrated operations fromdevelopment and production to sales and after-sales
services, Toyota Industries’ air-jet looms have won
extensive acclaim from customers around the globe
thanks to superb reliability and high productivity.

n Honing Technological Capability by Developing
Products for TMC, External Sales and In-House Use
External sales

For in-houseuse

Inverters for electriccompressors
Toyota Industries Report 2016

Electricity(DC)Electricity(AC)

MotorCompressor(to compress refrigerant)

Generates
magnetic energyDrives
thecompressor

Electronics Business Supporting Our Global Top-Share Products

Charging stands
for PHVs and EVs

ElectronicsBusiness26Inverter(DC to AC)

For TMC

Toyota Industries’ Electronics Businessprovides DC-DC converters, AC
inverters, rear inverters for four-wheel
drive (4WD), cooling devices, on-board
chargers, charging stands and other car
electronics products to TMC. Based on
the experience we have gained in
responding to TMC’s stringent demandfor higher quality and selling products to
many automakers in addition to TMC,

we utilize accumulated technologies andexpertise in our products developed
in-house, including electric compressors.
We aim to enhance our total
strengths and the competitiveness ofour products that capture the world’sNo. 1 share in their respective markets
by refining our proprietary technologicalcapability and leveraging synergies
across business domains.

DC-DC converters

27

Discussion

Special Feature

Project Members Talk about theOutcome of Collaboration between
the Compressor Business andElectronics Business

Product planning
Conventional
systemInverter

Existing model

ESB20

n Cooling Capacity

n Compressor Noisen Power Consumptionn Inverter’s Volume(%)
150(%)
150(%)
150(%)
150

100100New Development and Production System Adding
Greater Value to the Collaboration Outcome

8%30%

reductionhigherGood50028

Existing model

Toyota Industries Report 2016

ESB20

performance. Electronic circuits
and components of an inverter
generate heat when electricity
flows through them. Reducing
the size of an inverter makes it
difficult to secure enough surface
area needed to release that heat.
The new cooling structure that
Takeshi Harasawa
Assistant General Manager,
has been developed is the result
Engineering Dept.
of true synergy between the two
Electronics Div.
divisions.” Koide adds: “Thealuminum die-cast base of the inverter was designed by theCompressor Division. Because its thickness and shapedetermine the cooling performance of the compressor, theElectronics Division utilized its thermal simulation technology toidentify the optimum shape under various design restrictions
and succeeded in securing the required cooling performance.”
As a compressor is mounted near the engine, an inverter
integrated into the compressor is required to be heat- andvibration-resistant. Electronic components, in general, are rarely
used in such harsh conditions, but the close collaboration of
the two divisions made successful development of such an
inverter possible.
The resulting ESB20 achieves a 30% higher cooling
capacity, 30% reduction in compressor noise, and throughimproved efficiency, 8%*2 less power consumption. A 30%
reduction in the inverter’s volume also allows easier vehicle
mounting. The ESB20 has been mounted in the new Prius asan electric compressor boasting the world’s leading
performance.
*1: A system to aid in product development using computers in the areas of design andnumerical analyses*2: Results of measurements under year-round use conditions

30%500reduction

100GoodExisting model

ESB2030%

100reduction

Good50050

Existing model

ESB20

Process design

Production

Production
preparation

Production

Process design

Production

Production preparation

Tatsuya Koide
ESB20 electric compressor

ProductplanningCompressor
Div.

InverterGroup manager, Engineering Dept.
Compressor Div.

Product design

Production
preparation

Product design
Newsystem

In order to both improve performance and make components
more compact, efforts had to be made in various aspects. One
is finding the best structure-performance balance in a scroll,which compresses refrigerant, and such key components as aninverter, which controls the motor that rotates the scroll, as wellas in the shape of the compressor itself. Another is seeking
total optimization in the resulting electric compressor.
Koide explains: “To make the compressor fit more easily inthe narrow engine room, we first moved the inverter, which waspreviously positioned on top of the compressor, to the rear endof the compressor. We also made the shape of the compressor
cylindrical by eliminating surface irregularities as much aspossible. We selected a thin cylindrical shape for the inverter so
as not to add much to the compressor’s total length andneeded to integrate all its functions into this small space. The
compressor team and the inverter team worked together andfound the optimum solution by utilizing computer aidedengineering (CAE) analysis*1 on the structural design and thecooling performance design.”
Takeshi Harasawa of the Electronics Division observes: “Forthis inverter, we needed to reduce its size and house everything
in the cylinder while at the same time ensuring the ease ofproduction. So, we totally revamped the size and layout of thecomponents. One of the most significant results of ourcollaboration was a method to ensure solid cooling

Inverter for electriccompressors

Productplanning

DesignSimultaneous planning of design
and production through thecollaboration of the two divisions

Positive Outcome Derived from Collaboration bySurmounting Development Challenges

In developing the ESB20, one of the tasks assigned to theproject team was to contribute to achieving the world’s highestlevel fuel economy and interior comfort in the new Prius.
Higher performance was thus required in every aspect of thecompressor, such as raising the air-conditioning function
without increasing its volume, making it quieter, improving its
vibration resistance and reducing power consumption. “At thesame time, we had to think about future models to be derived
from the ESB20 and ensure their easier development andproduction through the use of a common structure andproduction method,” notes Tatsuya Koide of the CompressorDivision.
To achieve these goals, a higher level of collaboration andgreater synergies were called for
between the Compressor Divisionand the Electronics Division, whichis in charge of development andproduction of inverters, duringconcept formulation in the initialdevelopment stage.

Leveraging Strengths in Engaging in Diverse Businesses to Raise theCompetitiveness of Products Capturing a World-Leading Market Sharen New Development and Production System for Generating Synergies

The ESB20 electric compressor, which is mounted in the new Prius to contribute tohigher environmental performance and vehicle comfort, integrates synergies
between the Compressor Division and Electronics Division from productdevelopment to production and quality assurance. In this section, project members
from these two divisions talk about the outcome of their collaboration.

Challenges Faced with the Development of theESB20 Electric Compressor

20

Existing model

Good

Upon the development and production of the ESB20, we
exercised our ingenuity in each stage from design to production
preparation. Conventionally, we begin with product planningand then proceed to product design, process design and finallyto production preparation. This time, we conducted productdesign, process design and production preparation

Electronics
Div.

concurrently, sharing thesimultaneous engineering
approach between the twodivisions to pursue higher quality,
lower costs and ease of
production for the product. The
two divisions were mutuallyinspired by sharing knowledge
Inverter production line
and ideas with each other while
promoting the project. “Continuously stable production of aquality product is difficult to manage and maintain. With thedesign team, we shared information from the product design
stage on hundreds of issues that could occur in the mass
production stage. Based on theinformation, the design teamworked to modularize*3
components and simplify theirstructures,” explains Daisuke
Katayama of the Electronics
Division, who is well-versed incompressors and was in charge
Daisuke Katayamaof production engineering of theAssistant manager,Production Engineering Dept.
inverter. Energetic discussions
Electronics Div.
among project members led tothe completion of a new, simple,compact and highly efficient production line. The new line will
make adding variations to the ESB20 easy and allow mixed
production of these models at a consistently high quality level.
*3: A group of functionally associated components forming one larger functional component

Continued Cross-Business Collaboration to Enhance
Synergistic Effects and Increase Product Appeal
At Toyota Industries, personal exchanges across different
business domains have always been active, and our strengths
stem from a corporate culture that proactively encourages
cross-business collaboration. This time, the Compressor andElectronics divisions started working together from the concept
development stage of the ESB20, which enabled the manufacture of a product that meets ambitious goals. We will continue
to leverage the synergies from cross-business collaboration
with a view to further increasing our competitive edge anddelivering products needed by customers around the world.

ESB20

29