TOYOTA INTRODUCTION VALUE CHAIN COMPETITIVE ADVANTAGE CONGCLUTION
INTRODUCTION Toyota motor corporation’s vehicle production system is a way of “making things” that is referred to as “lean manufacturing system”. The TPS was developed to improve Quality and Productivity. Objective: “making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible”.
INTRODUCTION Origin of Toyota Production System Sakichi Toyoda(1867-1930 ) Automatic loom Kiichiro Toyoda(1894-1952) Used chain conveyor into the Assembly line. Eiji Toyoda(1913) Implementation of Jidoka and JIT. Book : The toyota way by jefrey k lingker
In indonesia PT Toyota Astra Motor inaugurated on April 12, 1971. The role of TAM was originally only as an importer of Toyota vehicles, but a year later was working as a distributor. On December 31, 1989, TAM merged with three companies, among others: PT Multi Astra (assembly plant, founded in 1973) PT Toyota Mobilindo (body parts factory, founded in 1976) PT Toyota Engine Indonesia (engine factory, founded in 1982) PT Toyota Astra Motor. Since the date of July 15, 2003, TAM restructured into two companies, namely: PT. Toyota Motor Manufacturing Indonesia which is the abbreviated TMMIN assemblers of Toyota products and exporter of Toyota vehicles and spare parts. Shareholding in this company is Astra International and TMC 5% to 95% PT. Toyota Astra Motor as sales agent, importer and distributor of Toyota products in Indonesia. Shareholding in this company Astra International is 51% whereas 49% TMC http://www.toyota-global.com/company/profile/overview/
Value chain Based on the theory michael poter Based on the theory michael poter
Primary activities Inbound logistics toyota in obtaining raw materials, they do not process their own, or create your own, they use a third party, they handed the small parts, such as leather seats, steering wheel, tire, to local companies, but to the nature of strategic importance, like a machine, they import from Japan (center), its all to maintain the quality standard that was created toyota, Toyota put on the assembly system in the process, it has led to toyota raw material supply for its assembly,, need a place to store supplies, or warehouse, to avoid piling up too many assets, Toyota to forecast demand, Book : The toyota way by jefrey k lingker
Primary activities Operations Transforming inputs into the final product form, in assembly and manufacturing (its production) Toyoto use various systems to be efficient and effective, we could also call it, TPS is the Toyota Production System, the concept of the Toyota Production System can be described as a complete building which consists of various components are integrated. The building was also called a The House of Toyota.
Primary activities oprations JUST IN TIME : One of the two main pillars of TPS. It refers to the manufacturing and conveyance of only ” what is needed, when is needed, and in the amount needed in the system”. 1. The Pull System 2. Continuous Flow Processing 3. Take time JIDOKA : One of the two main pillars of TPS. It refers to the ability to stop production ,by man or machine.( equip malfunction)
Primary activities oprations Heijunka: smoothing. Meaning: wherever possible evenly distributed workload made at any time. Without this, Just in time can not be applied, because it will happen stacking and queuing at peak load. Standard work: At each stage of the work there is a clear indication of the order and how to do the job. Total Productive Maintenance (TPM): a comprehensive equipment maintenance process so that the tools are always in good condition to wear to work. Value Chain: It is a series of value-added processes. There are continuous efforts to reduce "non-value added waste" so that what remains is just something that has added value in the production process. Discussion of "non-value added waste" includes the activities of 5S Book : The toyota way by jefrey k lingker
PRIMARY ACTIVITIES OUTBOUND LOGISTIC Outbound Logistics Collecting, storing and distributing the product to buyers output of the production process at the plant, is the finished product,, a car, the car is directly sent to the toyota dealer,, its for local, or a region (not crossing the sea in distribusianya, if sending more distant or export,, its delivery using container. http://www.toyota-global.com
PRIMARY ACTIVITIES Marketing and Sales Marketing and Sales Providing a means and incentive which allow buyers to purchase the product Application of Indirect Channels Distrubusi TOYOTA CORPORATE ,Toyota Motor Company was founded in 1937 by the Toyoda family. In the application of the Toyota Company or its product distribution channels to use indirect distribution networks which use the Company Toyota dealer or distributor www.toyota.co.id/
PRIMARY ACTIVITIES Marketing and Sales BRANCH TOYOTA DEALER IN INDONESIA www.toyota.co.id/
PRIMARY ACTIVITIES SERVICE Service Providing service to enhance or maintain the value of the product The Best Total Ownership Experience is a principle that is always carried by Toyota at each line, starting from the central office to the Toyota dealership on every spread in Indonesia. Their concept is the customer number one, so that makes them always trying to meet customer needs and continuously improve services. parameters set 6 pieces, among others: the quality of service, type of problem, the service is user friendly, service advisor, service initiation, service delivery and in-service experience survey conducted by JD Power Asia Pacific to its customers in Indonesia
SUPPORT ACTIVITIES Firm infrastructure infrastructure owned by Toyota factory is very modern and sophisticated, is a robotic system with humans as the operator,, all the production support until the sale is available with either situation, the factory to the dealer,, http://www.toyota-global.com
SUPPORT ACTIVITIES HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT Toyota to this day has approximately 300,000 employees worldwide, and nearly a third are in Indonesia, in placement or acceptance of an employee, the company held a test salalu continued with the training, according to its disciplines and expertise, http://www.toyota-global.com
SUPPROT ACTIVITIES TECHNOLOGY DEVELOPMENT TECHNOLOGY DEVELOPMENT OF TOYOTA Torrance (DP) - As one of the worlds largest manufacturers, Toyota is very concerned with the safety of its customers. That is why Toyota did not stop doing research and development of safety technology. Here are four technology from Toyota: Pre-Crash Safety (PCS) with collision-avoidance assists Pop-up Bonnet Adaptive Driving Beam Emergency response technology
SUPPORT ACTIVITIES Procurement Procurement Policy Along with requiring our suppliers to provide quality items at a low price and in a timely manner, we cooperate with them to promote environmental preservation and meet the other demands of society. In addition we take a long term view toward our relationships with suppliers with an aim to realize an amicable relationship of mutual prosperity based on fair business practices. http://www.toyota-industries.com/corporateinfo/purchasing/policy/
Competitive adventageBased on the theory michael poter
Competitiv advantage cost leadership SIMPLE CONCEPT FROM TOYOTA (1) SHORTENING LEAD TIME Simplifying the Process Continuous Flow ( One Piece Flow Process ) (2) REDUCE INVENTORY LEVEL ___________I_______I__________I______I_____________I______I_________I______I__________ LD LD LD LD LD LD LD LD =============================TOTAL LEAD TIME================================== By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
Competitiv advantage cost leadershipSCM Supply chain management in toyota vendor manufaktur dealer customer 1. Local parts Local Parts Receiving PC store Production Dock Dealer (3)Receiving dock pc storeproduction (4)dealer (5)customer 2. Import parts • 1 and 2 Linked between internal and vendor Local Parts STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERY KANBAN:- A small time that is the key control for JIT production By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
Competitiv advantage cost leadershipSCMlogistic mangement Internal Logistics in toyota Simplify Process Re-arrangement of Process By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
Competitive advantage different strategyThe 14 Principles of the Toyota Way The last award for excellence in Book : The toyota way by jefrey k lingker getting toyota product1. Long term philosphy 1. Best Small Sedan (Toyota Vios),2. Right process, right results3. Use ‘pull’ sytem to avoid over production 2. Best Mid Sedan (Toyota Altis),4. level out the work load 3. Best Mini MPV (ToyotaAvanza),5. Build a culture of stopping to fix problems, to get quality 4. Best Low SUV (Toyota Rush) , right the first time6. Standardise task are the fondations for continuous 5. Best MPV Diesel (Toyota Kijang Innova) improvement and employees empowerment 6. Best PR Team7. Use visual control so no problems are hidden 7. Best Website8. Use only reliable thoroughly tested teghnology that serves your people and processes9. .grow leaders who thoroughly understand the work, live philoshpy and teach it to others10. Develop exeptional peopel and teams who follows yours companies philosphy11. Respect your extended network of patners and supplied by challenging them helping them to improve12. See for yourself to thoroughly understand the situation13. Make decision slowly by consensus thoroghly considering all options, implement decision rapidly14. Become learning organitation thorough relentless reflections and continous improvement http://otomotif.antaranews.com/news/1321435204/toyota-astra-motor-raih-7-autobild-award www.toyota.co.id
Support activities segmentation customer segmentation in toyota Demographic Segmentation 1. Gender: 2. Age 3. Price 4. Number of families Psychographic segmentation 1. Social class 2. Design 3. Type Segmentation Behavorial 1. Toyota Parts are easily available and cheap enough so the price is affordable 2. The legs of the car a more durable than competitors 3.Customer care 24 hours http://wilsonmarketing.blogspot.com/ book by philip kotler marketing management 1995
conclutions Toyota is a great company with an integrated supply chain management as well. Toyota has an integrated system in its production, namely TPS (Toyota Production System), Toyota has a wide range of advantages ranging from human resources to its products, it is evidenced by the wide range of awards, Toyota have 14 principles which refers to the quality of service, product quality and efficiency, toyota including Indonesias largest company automotive in the world,, Toyota lead because his concept of lean management
References The toyota way by jefrey k lingker Competitive advantage by michael poter Marketing management by philip kotler www.toyota.co.id/ http://www.toyota-global.com/company/profile/overview/ survey conducted by JD Power Asia Pacific to its customers in Indonesia http://www.toyota-industries.com/corporateinfo/purchasing/policy/ By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case] http://otomotif.antaranews.com/news/1321435204/toyota-astra-motor-raih-7- autobild-award http://wilsonmarketing.blogspot.com/
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