Abstract. This study aims to evaluate the deviation between planned Cost of Goods
Manufacturing with actual Cost of Goods Manufacturing (COGM) in PT. TMMIN that
exceeding 10%. The obtained priority issues is the procurement of Spring Guide Set DBAGS-D

component. A localization activity is designed against Spring Guide Set
component procurement through several local suppliers, namely PT. HMI, PT. IT, and
PT. JAPM. The analysis includes three aspects: cost, delivery time, and quality. Toyota
Business Practice (TBP) is applied in this study. Toyota Business Practice is a problem
solving method that consists of eight steps ranging from problem identification,
determination of the root of the problem to the standardization activities. In the TBP,
some calculations costs through cost estimation analysis approach and calculation of
depreciation using the Sum of the Year Digits is taken into account. Through
localization activity, it is expected the import costs in the procurement of components
can be reduced, in line with expected delivery and quality aspects. The results show the
recommendations of selected supplier are PT. IT for then negotiated the cost reduction
and PT. JAPM for quality improvement of the products offered.