TOYOTA

History of Toyota

History of Toyota
Toyota Motor Corporation is a
Japanese multinational
automotive manufacturer
headquartered in Toyota City,
Aichi, Japan. The company was
founded by Kiichiro Toyoda in
1937, as a spin-off from his
father’s company Toyota
Industries to create automobiles.
Three years earlier, in 1934,
while still a department of Toyota
Industries, it created its first
product, the Type A engine, and
its first passenger car in 1936, the
Toyota AA.

History of Toyota
The vehicles were originally sold under
the Toyoda name, but the division soon
changed its name to “Toyota” because it
took eight brush strokes to write (a lucky
number in Japanese culture) and was
visually simpler. The new name was
trademarked in 1936.

History of Toyota
In the 1960s, Toyota took
advantage of a rapidly growing
Japanese economy to sell cars to
a growing middle class, leading
to the development of the Toyota
Corolla, which would go on to
become the world's all-time best-
selling automobile. Toyota Motor
Corporation produces vehicles
under five brands, including the
Toyota brand, Hino, Lexus, Ranz,
and Daihatsu.

History of Toyota
In 2017, Toyota's corporate
structure consisted of 364,445
employees worldwide and, as of
September 2018, was the sixth-
largest company in the world by
revenue. Toyota was the world's
first automobile manufacturer to
produce more than 10 million
vehicles per year which it has
done since 2012 when it also
reported the production of its 200
millionth vehicle.

History of Toyota
Toyota is also a market leader in
hydrogen fuel-cell vehicles.
Cumulative global sales of Toyota
and Lexus hybrid passenger car
models achieved the 10 million
milestones in January 2017. Its
Prius family is the world's top-
selling hybrid nameplate with
over 6 million units sold
worldwide as of January 2017.

Kiichiro Toyoda

Kiichiro Toyoda
Kiichiro Toyoda spearheaded the
creation of the first Toyota automobile
and the founding of Toyota Motor
Corporation in 1937. He was the son of
Sakichi Toyoda, a noted inventor and
founder of Toyoda Automatic Loom
Works in 1926. Kiichiro attended the
University of Tokyo, where he studied
engineering. After graduation, Kiichiro
began working in the family business
and later traveled to England and the
United States to further his education
in manufacturing.

Kiichiro Toyoda
After returning to Japan, Kiichiro made
improvements to many of the
company’s looms and implemented
techniques for eliminating waste in
manufacturing, creating what became
the Just-in-Time method. However,
after his first trip to the west in 1921,
Kiichiro had become increasingly
interested in automobiles. In 1933,
Kiichiro convinced Risaburo, his
brother-in-law and president of the
family company, to fund an automotive
development program and purchased a
new Chevrolet to use as a benchmark.
He then enlisted some of Japan’s best
engineers to disassemble and
reassemble the car to learn how the
modern manufacturers were building
their vehicles.

Kiichiro Toyoda
In 1934, Kiichiro and his team
unveiled an experimental gasoline
engine to Toyoda stockholders and
persuaded them to fund a separate
automotive division. The next year,
Kiichiro and his team produced a
prototype automobile called “Model
A1” passenger car. “Model A1”
borrowed numerous ideas from
established automakers; the engine was
based on a Chevrolet design, the
chassis was copied from Ford, and the
styling was derived from a Chrysler
Airflow.

Evolution of Toyota Cars

The Model AA Saloon
(1936)

Toyota Land Cruiser
(1955)

Toyota Corona
(1957)

Toyota Corolla
(1966)

Toyota Hilux
(1968)

Toyota Supra
(1978)

Toyota Rav4
(1994)

Toyota Prius
(1997)

Swot Analysis of Toyota

Swot Analysis of Toyota

4P’s of Toyota

Product Strategy
Toyota has a wide range of vehicles
designed to meet mass mobility needs.
Each product has its segment and its
specific group of customers. Following are
the product line of Toyota automobiles.
 Toyota automobiles (includes sedans,
Minivans, SUV, Commercial Vehicles,
Special-Product Vehicles, Evs)
 Lexus automobiles (Luxury segment of
cars and SUVs)
 Welcab series of automobiles (for
people with disabilities)
 Car Engines, spare parts, and
accessories

Place Strategy
Toyota’s best source for distributing its
products​ are dealerships, so it is vital to
determine the venues where consumers
can see the products. The strategy of
Toyota stands on easy to find venues and
good customer service.

Place Strategy
Toyota tries to find how its customers can
access automobiles through surveys and
market research. Once the customer
locates and reaches a Toyota dealership,
they nurture hospitality while attending to
their customers. They ensure that their
visitors leave with a good experience in
services provided by the staff.

Pricing Strategy
Toyota has an automobile to meet every
person’s needs. Toyota has a range of
automobiles starting from the lowest tier
daily commute cars to luxury cars. Its
pricing strategy has covered every price
bracket range so that their customer can
choose as per their needs and
requirements.

Promotional
Strategy
Toyota uses different mediums for its
promotional strategies to meet its sales
target volume. It advertises through radios,
billboards, television advertisements,
brand collaborations, product placements,
word of mouth, and recently it has had a
growing focus on digital marketing.
Toyota has its unique way to promote
itself:
 Toyota uses its dealership to personally
promote its brand to its potential
customers.
 Special offers and deals are often
launched on occasions of festivals and
grand sale days.
 Facilitates direct selling from
manufacturer to corporate clients.

Toyota Production
System

TPS - Andon
A visual and audible
communication system that notifies
everyone of abnormalities in a
process when support is needed.
This can be triggered automatically
or manually by a machine or
person.

TPS – Gemba
A popular approach in companies who
implement lean principles is called “Gemba
walks,” which denote the action of going to
see the actual process, understand the work,
ask questions, and learning from those who
do the work (showing respect to them).

TPS - Heijunka
Heijunka is a Lean method for
reducing the unevenness in a
production process and minimizing
the chance of overburden. The term
Heijunka comes from Japanese and
literally means leveling. It can help
you react to demand changes and
utilize your capacity in the best
possible way.
By implementing Heijunka, you can
stop producing work in batches and
start processing orders according to
customer demand. This will allow
you to reduce your inventory costs.

TPS - Jidoka
Jidoka provides machines and operators the
ability to detect when an abnormal condition
has occurred and immediately stop work.
This enables operations to build in quality at
each process by eliminating the root causes
of defects.

TPS - JIT
The just-in-time (JIT) inventory system
is a management strategy that aligns
raw-material orders from suppliers
directly with production schedules.
Companies employ this inventory
strategy to increase efficiency and
decrease waste by receiving goods only
as they need them for the production
process, which reduces inventory costs.
This method requires producers to
forecast demand accurately.

TPS - Kaizen
From the Japanese words “kai-” “change”
and “-zen” “good.” The popular meaning
from Toyota is “continuous improvement” of
all areas of a company, not just
manufacturing. Kaizen is arguing that you
can improve everything and every time.

TPS - Kanban
Kanban is a visual system used
to manage and keep track of
work as it moves through a
process. The word kanban is
Japanese and roughly translated
means “card you can see.”

TPS - Obeya
It is a room that is dedicated to a
large project or program to assist
in communications and improve
decision-making. Often called
an “Obeya Room” or “War
Room.”

TPS – Poka Yoke
Japanese word for mistake proofing or error
proofing, which translates to avoid (yokeru)
mistakes (poka).

TPS – 5S
5S represents Japanese words that describe
the steps of a workplace organization
process.
1. Seiri (Sort)
2. Seiton (Straighten, Set)
3. Seiso (Shine, Sweep)
4. Seiketsu (Standardize)
5. Shitsuke (Sustain)

TPS – Value-
Stream
Mapping

TPS - SMED

TPS – 5
Whys

Thank You For Listening
Prepared BY
Alper Palabiyik