Toyota project
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Toyota project Document Transcript

  • 1. Introduction Toyota is one of the worlds largest automobile manufacturers, selling over 9 million models in 2006¹ on all fivecontinents. A Top 10 Fortune Global 500² enterprise, Toyota ranks among the worlds leading global corporations and isproud to be the most admired automaker³, an achievement the company believes stems from its dedication to customersatisfaction.Toyota has been shaped by a set of values and principles that have their roots in the companys formativeyears in Japan.The Toyota story begins in the late 19th century, when Sakichi Toyoda invented Japan’s first power loom, which was to revolutionize the country’s textileindustry. In January 1918, Sakichi founded the Toyoda Spinning & Weaving Company, and with the help of his son, Kiichiro Toyoda, he fulfilled his lifelongdream of building an automatic loom in 1924. Two years later, he established Toyoda Automatic Loom Works.Like his father, Kiichiro was an innovator, and during his visits to Europe and the U.S. in the 1920s, he became deeply interested in the nascentautomotive industry. Making the most of the £100,000 that Sakichi Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid thefoundations of Toyota Motor Corporation (TMC), which was established in 1937. From looms to cars, the Toyota experience has been shaped by extendingthe boundaries of manufacturing.¹ Including Hino and Daihatsu² As published in the 2006 edition of Fortune magazine³ As published in the 2006 edition of Fortune magazineThe Toyota Production SystemToyota’s approach to automobile production, with its inherent quality controls, revolutionized the industry. Its “just-in-time” supply-chain concept has become a model for manufacturers around the world, and not just for automakers.The Toyota Production System (TPS) calls for the end product to be “pulled” through the system. This means the rightparts reach the assembly line at the right place, just as they are needed, and with no excess.This approach represented a radical departure from conventional manufacturing systems, which require large inventoriesin order to “push” as much product as possible through production lines, regardlessof actual demand. The idea of TPS, the contrary, is to produce only the products required in the precise quantities desiredat a given point in timeFocus on flexibilityBy basing production on demand rather than simply on capacity, Toyota manages to keep inventories, both of parts and of finished goods, to a strictminimum. But this is only one of the more obvious advantages of Toyota’s unconventional approach. By focusing on smaller production lots and producingonly what customers require when they require it, Toyota has developed a flexibility and responsiveness that continues to set the
  • 2. standard for the industry. With its Attention to continuous improvement (Kaizen), Toyota has attained die-changeover and machine-set times that are afraction of its competitors.Thus its capacity for reacting quickly to new market trends makes TPS an ideal system in today’s rapidly changing globalbusiness environment.Just as important is ensuring quality control, and the delivery of reliable and dependable products to customers. If a problem arises at any stage ofproduction, Toyota’s automatic error detection system, called “Jidoka”, flags the defect and enables line employees to take the necessary steps to resolveit on the spot – even if that means bringing production to a halt. By calling attention to the equipment when an error first occurs, the Toyota systemmakes it easier to identify the source of the problem and prevents defects from progressing to subsequent stages of production. Only a system as agileand quality-oriented as TPS could make such measures economically possible.This approach not only helps eliminate waste, which makes TPS more respectful of the environment, it also means that customers can rest assured thatToyota products will conform to the highest standards of quality, reliability and durability.Future VisionToyota and other manufacturers have an unprecedented opportunity to shape the future direction of motor sport in a newera of social awareness. Improving motor sport’s environmental image is top of the agenda. As an example, the 2009 FIAtechnical regulations should include means to promote fuel efficiency, including waste energy recovery and re-use.Another important area is safety, a key project in Toyota research and development centre programmes. While much hasbeen done in the past decade to improve driver security, more can be accomplished for a greener motor sport.Greening motor sportsLonger term could see completely new engines for motor sport competition, possibly featuring turbocharged designs. Biofuel could also be a future option.And as the leader in Hybrid Synergy Drive®, Toyota is excited by the possibility of applying them to motor sport.Some purists argue that the new direction is not what motor sport is about. But automotive technology has always advanced. A car in a showroom todayhas equal or better performance than a car of five years ago, but uses only 60% of the fuel.Driver safetyFormula 1 has already demonstrated the great advances that can be made with safety. At the start of 2007, Tsutomu Tomita, former chairman and teamprincipal of Panasonic Toyota Racing, presented a Toyota TF105 to the FIA Institute at the inaugural FIA Institute Safety Summit. The car will be used as atraining tool for medical and safety officials to improve the techniques of driver extrication following accidents in single-seater racing.Recently, Toyota has developed a computer simulation which recreates high-speed accidents and their effects on the human body. Using the new system,called Total Human model Safety (THUMS), the FIA Institute and Toyota have been able to study the kind of serious injuries that are difficult to measurewith conventional crash-test dummies. The technology will notably help study high-speed rear impact crashes in the FIA Formula 1.
  • 3. Toyota Mission Statement "To sustain profitable growth by providing the best customer experience and dealer supportToyota Kirloskar Motor Pvt. LTDDate Of Establishment October 6, 1997Chairman Mr. Mitsuhiro SonodaVice Chairman Mr. Vikram S KirloskarManaging Director Mr. H. NakagawaDeputy MDs Mr. Sandeep Singh Mr. S. TomonagaDMD, Commercial Mr. Shekar ViswanathanPaid-In Capital Rs. 7 billionShareholders Toyota Motor Corporation (89% equity) Kirloskar Group (11% equity)Empowering employees.... to achieve perfectionTKM firmly believes that employees are the main source of strength for the organisation. The human resources management in Toyota seeks to create acorporate culture where values such as "Continuous Improvement" and "Respect for People" are fully reflected in all actual corporate and individualactivities. The company takes maximum care to ensure stability of employment and strives to improve working conditions.
  • 4. To develop human resources and improve the technical skills of its employees, TKMs young team members are regularly sent to Japan, Indonesia andTaiwan for training programs. More than 425 team members have benefited from such programs at various Toyota plants worldwide. TKM also believes incontinuously improving its products and practices. Every team member is encouraged to give suggestions to improve the product, efficiency of processessor working conditions. They are also appropriately rewarded for the same. Thus TKM seeks to progess by empowering its employees.Pursuing the greater goodTechnologyToyota is a world leader in the research and development of advanced automobile technology. Creating intelligent solutions for todays mobility challengesand taking responsibility for future generations. Thats the mission that motivates Toyota.InnovationThe quest for innovation is the foundation for Toyotas new technology concepts. Unconventional ideas need room for creativity and the technologies of thefuture need testing in real-life conditions. This is why Toyota develops concept cars such as p.o.d or FXS. Take a look at Toyotas most recent concept carsand get a first glimpse of the vehicles which may, one day, satisfy the needs of tomorrows drivers.EnginesEngine technology is one of Toyotas greatest assets. Toyotas award-winning engine range reflects the high design and quality standardsset by its engineers. Toyota engines are developed for performance and responsiveness with a big focus on reducing emissions and savingfuel. Today Toyota brings these benefits to customers with advanced variable valve technology (VVT-i) petrol engines, common-rail turbodiesels (D-4D), and with the unique Toyota Hybrid System (THS).SafetySafety is a top priority for Toyota: Advanced steering, braking and traction control technologies help keep your Toyota on the road and outof trouble. In addition, every new Toyota model is carefully designed to maximise safety, using computer simulationsand real-life crash tests. The body and chassis are built to absorb impact and provide maximum occupant protection, whilst SRS airbags in place in case ofa collision. Hopefully youll never see our safety features in action, but you’ll feel the confidence every time you sit behind the wheel.SWOT Analysis Toyota
  • 5. Strengths. • New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of very focused segmentation, targeting and positioning in a number of countries. • In 2003 Toyota knocked its rivals Ford into third spot, to become the Worlds second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).Weaknesses • Being big has its own problems. The World market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating economic and political conditions those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced. • The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labourSo if the car market experiences a down turn, the company could see over capapacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing. •Opportunities. • Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyotas interest and investment in hybrid R&D.
  • 6. • Toyota is to target the urban youth market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding.Threats. • Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems. Toyota did not g ive details of how much the recall would cost. The majority of affected vehicles were sold in the US, while the rest were sold in Japan, Europe and Australia. • As with any car manufacturer, Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. The key economies in the Pacific, the US and Europe also experience slow downs. These economic factors are potential threats for Toyota.
  • 7. Toyota facToyota faces fierce competition from all angles, and is facing a very toughmarket from other Japanese, American, South Korean and German auto manufacturers.Toyota is working hard to set itself apart from the competition in more than one way,however. Since Toyota products have a reputation for reliability, the resale value of theirvehicles tends to be much higher than many other producers. The most serious threat toToyota is widely considered to be Honda Motor company. However, Toyota has donesome substantial work on their products and price points to stay competitive againstHonda. Below are some comparisons between Honda and Toyota products, and the pricepoints for a base product, and fully loaded.an more than one way, however. Since Toyotaproducts have a reputation for reliability, the resale value of their vehicles tends to betConsistently, Honda seems to match Toyota on the lower levels ofprice, but on higher priced an equipped models, the prices on Hondavehicles seem to be substantially higher than on comparable Toyotaproducts. This would seem to favor Toyota, giving them a better imageof Value and a better price on the same top quality merchandisea iswidely considered to be Honda Motor company. However, Toyota hasdone some substantial work on their products and price points to staycompetiti Toyota Conclusion Toyota is making a product that is both good for the society/environment andpractical at the same time. It is practical in that there is a demand for it and that Toyotapresumably is making money or will make money on the product. Toyota is also lookingtowards further development of the engine, possibly combining an alternate fuel source
  • 8. other that gasoline with the electric component. I believe that Toyota is acting as a socialentrepreneur with these lines of cars. They are providing a service to humanity and theenvironment while also presumably sustaining a business. According to James Brook ofthe New York Times, Toyota has claimed that it reached the break-even point for itsprofitability on its hybrid models, but industry experts in Tokyo find it impossible toknow exactly how profitable these cars I believe that Toyota is acting as a socialentrepreneur with these lines of cars. They are providing a service to humanity and theenvironment while also presumably sustaining a business. According to James Brook ofthe New York Times, Toyota has claimed that it reached the break-even point for itsprofitability on its hybrid models, but industry experts in Tokyo find it impossible toknow exactly how profitable these carsve against Honda. Below are some comparisons between Honda andToyota products, and the price points for a base product, and fully loaded.