Toyota Way

1. What makes Toyota a
successful company?
By Team 1(Nuts and Bolts)

2. 1
Team 1 (Nuts and Bolts)
Ahmad Fatayer
Deepti Aleti
Leela Krishna Manush Balusa
Diego Asbun
Emilio Sanchez
Savannah DiMuro
Mayank Arora

3. 2
Contents
Introduction:......................................................................................................................................3
1. Toyota Management History:..........................................................................................................4
2. Toyota Kanban System:...................................................................................................................6
Functions of Kanban:.......................................................................................................................7
Rules for Using Kanban:...................................................................................................................7
3. Toyota “4P” Model and its fourteen principles:.................................................................................8
Philosophy (Long-Term Thinking).....................................................................................................8
Process (Eliminate Waste)...............................................................................................................8
People and Partners(Respect, Challenge, and Grow Them)...............................................................9
Problem Solving (Continuous Improvement and Learning) ..............................................................10
4. Toyota Lean Six Sigma and the Toyota Production System (TPS): .....................................................10
Six Sigma......................................................................................................................................11
Lean manufacturing......................................................................................................................11
The original seven defects (wastes/muda) are:...............................................................................12
5. Toyota Strategy to Grow in Operations:..........................................................................................13
6. Toyota Sales, Marketing and Advertising:.......................................................................................16
Contribution of Sales to the Success of Toyota:...............................................................................16
Marketing and Advertising: ...........................................................................................................17
7. Toyota Environment Impact:.........................................................................................................18
Conclusion:......................................................................................................................................20
References:......................................................................................................................................22

4. 3
WHAT MAKES TOYOTA A SUCCESSFUL COMPANY?
Introduction:
Toyota Motor Corporation is a Japan-based auto-maker company. Toyota was invented in August
of 1973 by Kiichiro Toyoda. Toyota is the seventh largest company in the world and the second
largest supplier of cars, with production facilities in 28 countries around the world (Toyota, 2010).
Toyota has become the best and most reliable car manufacturing company in the world. The
reason is, it managed to keep its way and strategies through the years to improve car quality with
lowest price possible. Toyota not only survived after post war Japan in 1945, but by 1957 had
started selling its cars in the US market. Toyota went through setback in 2010 due to cars recalls
and its reputation was damaged to the point that its leaders had to testify in the US congress
about car recalls that caused people lives. But again Toyota does not know failure and was
committed to bring changes to improve its image again and indeed it was successful. So why
Toyota is so successful?Anyone affiliated with Toyota will tell you simplethree-word: “The Toyota
Way”. The Toyota Way is a combination of quality manufacturing genius combined with great
management philosophy. It also utilized its Toyota Production System (TPS)methodology to bring
in continuous quality improvement and empower employee’s relationships. The Toyota way is
simply explained by former Toyota president Cho as “Toyota contributes to society through the
manufacturing of high-quality products and services. Our practices based on this core principle
have become a source of competitive advantage. These managerial values and methods are the
Toyota Way [1].”
This paper will discuss seven components that made Toyota a successful company. They are as
follows:

5. 4
1. Toyota Management History
2. Toyota Kanban System
3. Toyota “4P” Model and its fourteen principles
4. Toyota Lean Six Sigma and the Toyota Production System (TPS)
5. Toyota Strategy to Grow in Operations
6. Toyota Sales, Marketing and Advertising
7. Toyota Environment Impact
1. Toyota Management History:
In 1937, Toyota Motor Co., Ltd. was established and up until the late 1980s, their organizational
structure was very pyramidal including various divisions, sections, and sub-sections. During the
late 80s they encountered some typical problems found in large businesses, excessive
organization and a lack of flexibility. In August of 1989, sub-sections were removed and the
existing sections were made more general, which created a simple, two-level organization.
Through this, the section level was able to decrease the number of organizations from 758 to
633 and the number of manager positions decreased from 1,800 to 900. “In conjunction with
these changes, the ‘San Tsuke Campaign’ and the ‘Hanko Mitsu Campaign’ were conducted,
resulting in a more open organization, fast decision-making, and the delegation of authority”
(Toyota-Global).
In the late 80s to early 90s there was a swift increase in vehicle series, about 10 model
redesigns per year. Efficiency of product development and development time became an issue
for Toyota so in September 1992, organizational reforms were implemented by transitioning to a
product-centered development system. By 1997 it was decided that major organizational reforms

6. 5
needed to be made in the Domestic Sales Operations Group. “A shift was made from sales
activities that focus on new cars to a comprehensive sales style with new cars, used cars, and
service at the core and also including installment sales, insurance, and telecommunications”
(Toyota-Global).
In January 1998, the Environmental Affairs Division was created and placed under the
direct authority of the presidency. It was created with the purpose to oversee environmental
issues companywide. Soon after, in January 2000, the BR Global Strategic IT Department was
established in the IT and Telecom Business Division in order for TMC to be able to keep up with
the rapidly expanding Internet and other multimedia networks.
In order to flatten organizations, clarify roles, and increase speed, organizational changes
were brought to the group level in July 2003. “The number of directors was reduced by appointing
only those at the senior managing officer level and higher, and the position of a managing officer
responsible for operations of each division was created” (Toyota-Global). For decision-making,
division operations were decided at the senior managing officer level or lower. Senior managing
officers were now responsible for making decisions involving operations closely related to the
work site while being the chief executive officers of their divisions. This increased the speed of
decision-making.
In April 2011, Toyota made changes to the management system as well as to their
directors, and had organizational reforms that are still in place today. Their aim was to “1) convey
customer opinions and on-site information to management in a timely manner, 2) make prompt
management decisions based on on-site information and 3) make constant checks as to whether
management decisions are acceptable to society” (Toyota-Global). Various things were
implemented such as a) flattening the board of directors, b) downsizing the executive decision-
making system, c) structure modifications to recognize local decision making by overseas

7. 6
affiliates, d) structure changes to make sure outside opinions are heard and reflected in
management practices.
2. Toyota Kanban System:
Toyota has achieved global recognition in industrial engineering through the Toyota
Production System and its supplementary tools. The origins of TPS date back to the late 19th
century when Kiichiro Toyoda sought more efficient production methods, specifically by
eliminating waste. His belief was, "the ideal conditions for making things are created when
machines, facilities, and people work together to add value without generating any waste." (Just-
in-Time, Toyota). Following in his philosophy, Taiichi Ohno an industrial engineer for Toyota
developed the ground work for what would become the Just-In-Time method. As Ohno worked
toward developing tools in support of JIT he discovered that supermarkets using a system of only
refilling items on shelves as they were taken by a customer eliminated the waste of excess
inventory. His discovery led to the development of the “Kanban System” a new process standard
that came to be the foundation for Toyota’s success.
Kanban translates to signboard. The first version of this concept used a visual based system
consisting of a large sign board and task specific story cards. This technique allowed for a rapid
look at the progression of every component that added value to a process. The process is broken
down into separate components that are divided into columns and then subdivided into tasks. In
Kanban’s simplest form, as the workflow progresses, so does its story card through the different
work stations with either a complete or incomplete. At present Toyota employs two kinds of
specific Kanban, product instruction and parts retrieval. In product instruction, a Kanban is
removed when a work station uses parts. Then only those parts that have been taken are
produced. The Kanban is then placed on the part for the parts retrieval component. Here, the
Kanban is taken when the part is used. Not only must requests be made with a Kanban, but it is

8. 7
imperative they are filled out in detail with amount, destination, time, and the location part was
pulled from. With more complex processes, the detail of the Kanban can also be fitted for the
process. The goal of Kanban is to limit work in progress and accomplish more by undertaking
less.
Limiting excess production is the objective of Kanban. By working backwards, it ensures that
only what is needed is made, and only the parts required, are pulled. For Toyota’s system to
achieve success, it must adhere to its six guidelines to accomplish its six principal functions.
Functions of Kanban:
1. Provides pick-up or transport information.
2. Provides production information.
3. Prevents overproduction and excessive transport.
4. Serves as a work order attached to goods.
5. Prevents defective products by identifying the process making the defectives.
6. Reveals existing problems and maintains inventory control (Tovota Production System, 1978).
Rules for Using Kanban:
1. Later process picks up the number of items indicated by the Kanban at the earlier process.
2. Earlier process produces items in the quantity and sequence indicated by the Kanban.
3. No items are made or transported without a Kanban.
4. Always attach a Kanban to the goods.
5. Defective products are not sent on to the subsequent process. The result is 100% defect-free
goods.

9. 8
6. Reducing the number of Kanban increases the sensitivity (Taiichi Ohno, 1978).
Over the years, the Kanban method has evolved to incorporate technological advances.
e-Kanban, in contrast to customary Kanban, tracks all schedules of the Kanban cards which are
documented by barcode readers. This evolved system now provides all information in real time;
Kanban signals are sent automatically and the Kanban system can be improved constantly. With
continual advances, Kanban can strive to stick to their six principal functions and maintain their
goal of limiting additional production.
3. Toyota “4P” Model and its fourteen principles:
The Toyota “4Ps” model is: Philosophy (long-Term Thinking), Process (Eliminate Waste), People
& Partners (Respect,Challenge, and Grow them), and Problem Solving (Continuous improvement
and learning). The 4Ps model consists of fourteen principles maintaining strict compliance with
the company as one of the world’s leading companies (Liker, 2007):
Philosophy (Long-Term Thinking)
 Principal 1: Make management decisions, taking into account the long term, even if it is
detrimental to short-term financial goals. Meaning it is important to set goals using
strategic and systematic approaches. The main task is to create value not only for the
single consumer,but also for the society and the economy as a whole. It can be done only
if the person is responsible.
Process (Eliminate Waste)
 Principal 2: Create continues process flow to identify problems. This flow should become
a part of corporate culture, a key to constant improvement of the employees.

10. 9
 Principal 3: Use the “pull” scheme to avoid overproduction. Organization of production
requires that the customers get what he/she needs, at the right time and in the right
quantity. There should be minimum stocks.
 Principal 4: Level out the workload. In order to create the right lean manufacturing and
achieve better quality of service, it is necessary to align the production schedule, not
always strictly following the order of receipt of orders.
 Principal 5: Build a culture to stop fixing problems to get quality right the first time. In order
to ensure the customer, the high quality products, it is necessary to apply all possible
methods. There should be special support system and equipment, which is able to identify
problems.
 Principal 6: Create standards for common tasks. This is the foundation of continuous
improvement and employee’s success and advancement.
 Principal 7: Use visual control so that no problem goes unnoticed. However, visual aids
should not distract the attention and should be simple.
 Principal 8: Use only reliable, proven technology. It is shown that technology
complements, but does not replace, human skills. New technologies need time for their
standardization. In case technologies are tested, they can be promptly introduced to
perfect the flow.
People and Partners (Respect, Challenge, and Grow Them)
 Principal 9: Grow leaders, who thoroughly know their work, live the philosophy, and teach
it to others. Having found an effective way of educating managers, the company will
provide itself with talented leaders and reduce the time and resources spent on attracting
professionals from outside. In addition, the company will be able to productively retain
their most highly qualified, intelligent and enterprising employees.

11. 10
 Principal 10: Develop exceptional people and teams, who practice the corporate
philosophy. It is necessary to create a strong, stable production culture with a long-lasting
value orientations and beliefs that are shared and accepted by all. Everyone should
understand the work in the company.
 Principal 11: Respect your partners and suppliers. Challenge them and help them
improve.
Problem Solving (Continuous Improvement and Learning)
 Principal 12: Go and see for yourself. In order to understand the situation, make sure to
look at everything through a first person point of view. The meaning of this principle is that
decisions should be based on knowledge derived from first-hand experience.
 Principal 13: Make decisions slowly and thoroughly, considering all options, implement
decisions quickly.
 Principal 14: Make your company a learning organization due to relentless analysis and
continuous improvement. Continuous improvement process is not only the study of new
methods and tools, but also some form of cooperation with more self-organization on the
ground with the help of capable employees, morepersonal responsibility of all participants
and more development of innovative potential of the company.
Toyota principles model plays an important role in the Toyota success storyand what made it one
of the best car maker in the world. Due to this success withthe 4P model, any company can utilize
the model to improve its employees, products, and achieve success
4. Toyota Lean Six Sigma and the Toyota Production System
(TPS):
Toyota Motor Corporation; The Company that changed the world?

12. 11
Toyota Motor Corporation, commonly referred to as Toyota, is a major Japanese automotive
Manufacturer company headquartered in Toyota, Aichi, Japan. Toyota is the world's first
automobile manufacturer company to produce more than 10 million vehicles per year (in 2012
and in 2013 as per company’s data). As of Feb, 2016 it is the 13th-largest company in the world
by revenue.
So, how does Toyota achieve this? One of the driving forces is Lean Six Sigma and its
implementation in Toyota’s Production System. This section will explain Lean Manufacturing, Six
Sigma tools and how Toyota uses them in the TPS.
Six Sigma can be defined as “a set of techniques and tools for process improvement.” It was
introduced by Bill Smith, while working at Motorola in 1986. Jack Welch made it central to his
business strategy in GE in 1995. Today, it is used in many industrial sectors.
Six sigma, now, is widely implemented in many companies. Besides Toyota, IBM is one of the
major companies which implements Six Sigma.
Lean manufacturing or lean production, often simply "lean",” is a systematic method for the
elimination of waste or defects within a manufacturing system”. Mainly, lean is focused on
“making obvious what adds value by reducing everything else”. Lean manufacturing is a
management philosophy derived mostly from the Toyota Production System (TPS) (hence the
term Toyotism).
Taiichi Ohno and Eiji Toyoda developed TPS between 1948 and 1975.
Taiichi Ohno (1912-1990) was a Japanese industrial engineer and a business man. He is
considered to be the father of TPS. He devised the seven wastes which became the Lean
Manufacturing in the US.

13. 12
Eiji Toyoda (1913-2013) was also a Japanese Industrialist who was largely responsible for
bringing TMC to profitability and worldwide prominence during his tenure.
TPS is known for its focus on reduction of the original Toyota seven wastes to improve overall
customer value, but there are varying perspectives on how this is achieved.
The steady growth of Toyota, from a small company to the world's largest automobile
manufacturing company, has focused attention on how it has achieved this success.
The original seven defects (wastes/muda) are:
1) Transport (moving products that are not required to perform the processing)
2) Inventory (all components, work in process, and finished products not being processed)
3) Motion (people or equipment walking or moving more than is required to perform the
processing)
4) Waiting (waiting for the next production step)
5) Over-production (producing more than required)
6) Over-Processing (processing more than is required, resulting from poor product design)
7) Defects (the effort involved in inspecting for and fixing defects)
Taking the first letter of each waste, the acronym "TIMWOOD" is formed. This is a common way
to remember the 7 wastes.
Later, an eighth waste was defined by Womack and Jones (2003); which was described as
manufacturing goods or services that do not meet customer demands or specifications. Many
others have added the "waste of unused talent" to the original seven wastes. For example, six
sigma includes the waste of Skills, referred to as "under-utilizing capabilities and delegating tasks
with inadequate training".
Other additional wastes added were, for example, "space". These wastes were not originally a
part of the seven wastes defined by Taiichi Ohno in TPS, but were found to be useful.

14. 13
Lean is about more than just cutting costs in the factory. One crucial insight is that most costs are
assigned when the product is designed.
An example program of Lean Implementation:
With a flow based approach (as used in the TPS with suppliers).
 Sort out as many of the visible quality problems as you can, and get the internal
scrap acknowledged and its management started.
 Make the flow of parts through the system or process as continuous as possible.
 Introduce standard work and stabilize the work place through the system.
 Start pulling work through the system, look at the production scheduling and move
towards daily orders.
 Even out the production flow by reducing batch size.
 Improve exposed quality issues using the tools.
 Remove some people (or increase quotas) and go through this work again.
All the above seem idealistic; but, this is what drove the success of Toyota. And, I hope it
continues to do so in the coming years. It can be considered as a role model in the automobile
industry which is known for its quality, cost efficiency and reliability.
5. Toyota Strategy to Grow in Operations:
How does Toyota treat their customers and what special treatment do they provide?
Toyota recently is one of the biggest companies that has a big amount of negative feedback in
different website from unsatisfied customers. Buthow does Toyota treat their customers and what
special treatment do they provide? From my personal experience a company should prioritize any
topic related to customers because they are your main source of income. That being said, I was
curious on how Toyota deals and treats with customers. Every day you hear people talking and

15. 14
criticizing companies with either good or bad feedback. Its either yesterday Samsung was
horrible, or today apple can’t compete with android. Apple for example has a lot of “apple
customers” people who would purchase apple products blindly without looking at other products
that are probably similar and cheaper in the market. So how do they have such a faithful group of
customers? The answer is simple, the way they provide service and reach out to their customers
is fantastic. They change your product for a new one if necessary rather than repair it and they
help you with any installation for free.
Currently my father works in a car dealer of Toyota in Pittsburgh Pennsylvania. I spent
the whole summer with him and often visited him at work. From my experience what I saw was a
respect towards customers,but with a bit of “trying to take advantage”. Here are how mostToyota
dealers work; first the employees are forced to work in a very competitive environment. This said,
payment is based on commission, the more you sell the more money you make. This generate a
competitive environment leading to almost no friendships or creates small teams that supports
each other and margins others. Also everything is based on how much you sell the car for at the
price at which you sell it. For example, if a client walks in with an internet price then you only make
100$ out of the sale, but if you over sell it by at least 2000$ from original price, then you can make
500$. I mention this because I saw many customers complain that they felt they were being
treated as idiots, with lame offers or with high prices. Also most of the time the customers come
in with a maximum prize they are willing to pay monthly, and even though the employee knows
that, they still address the customer with offers beyond what he expects.
If you look up, the slogan of Toyota is with the concept ‘respect for the customer’ as
reported by Jim Womack in an online review he did for Toyota1
. He mentions that Toyota uses
this slogan as one of the main pillars of their daily work, but I would strongly disagree with this
1 http://www.reliableplant.com/Read/9818/toyota Jim Womack is the publisher of this small articlereviewing
the treatment of Toyota to their customers.

16. 15
and would suggest anyone to visit a Toyota car dealer and see how a client is treated. Of course
I do not blame the employees, they are just trying to make the most profit possible for their own
benefit, but this system not only is exhaustingly competitive for the employee, it also generates
unsatisfied customers,that eventually will switchbrand. Not to mention that in the future this could
have a huge impact on Toyota and their income.
Now, up until now we mentioned what Toyota’s point of view is with customer service
and my personal experience, but what are the comments that we see from customers in the
internet? The most recent comment I found in customerservicescoreboard.com (webpage where
people can freely share their experience with the company) a recent post from Leebo, a person
who purchased a 2016 Tacoma in the past two months. In his comment he explains his how he
purchased extended service for the Tacoma but then decided to return it. When he first called for
the return they said they were going to process it but later never answered his calls or emails
back, and is still waiting on $4000 to be given back to his account2
.
As mentioned previously, most of the times it seems Toyota treats their customers as
pawns and play with them. The only goal seems to be to make the most profit out of the customer
ignoring completely his needs and his economic background. In the same webpage provided,
scoreboard, Toyota has 45/722 positive comments, which is a 6.23% positive. For such a
company that is way too low. Of course, it is almost impossible to make everyone happy, but this
is not an excuse for such a score.
As a suggestion to Toyota, I would highly recommend reviewing their TQM (total quality
management, process used to view overall objectives and quality, regarding to customers3
) and
2 http://www.customerservicescoreboard.com/Toyota
3 TQM term used with the definition from the book, Management, 11e, Schermerhorn

17. 16
look for continuous improvement. A slogan should not be left just a slogan, but an actual rule to
follow for everyone involved with the company.
6. Toyota Sales, Marketing and Advertising:
Toyota is one of the most valued companies in the world. According to Forbes, Toyota stands 8th
in the World’s Most Valuable Brands and ranked 11th
in Global 2000. While Toyota stands 8th
in
sales with $252.19 billion, 15th
in profits with $19.2 billion, 16th
in market value with $239 Billion
and 77th
in Assets with $389.7 Billion. (All the data above mentioned is reflected to the year 2015).
Toyota was the largest manufacturer of automobiles in 2012 (in terms of production). Toyota is
78 years old and is established all over the world with 344,109 employees in 2015. These
numbers are more than enough to illustrate how humongous and successful Toyota is. But how
Toyota did become this huge and successful. Sales and marketing techniques are key factors of
the success of Toyota. Most of the further data onto sales, marketing, and advertising are limited
to the United States of America in recent years.
Contribution of Sales to the Success of Toyota:
Under the direction of the founder’s son, Kiichiro Toyoda, Toyota was started as a division of
Toyoda Automatic loom works in 1933 which was devoted to the automobile production. The A1
passenger and the G1 were the first vehicles of Toyota that came out in 1935. Then, with the
success of the two vehicles Toyota motor co. was established as an independent company in
1937. From September 1947, Toyota started selling the small sized vehicles and became hugely
successful. After that Kiichiro Toyoda visited America and was astonished, seeing the demand
for vehicles and how advanced they are which let him start thinking about introducing the Toyota
vehicles for the American market. In 1957, they introduced the Crown into the American market.
Unfortunately, it was an enormous failure for the company. The vehicle had certain defects like
low mileage and speed compared to the other manufacturers’ vehicles. People came to a

18. 17
conclusion that the Crown was not suitable for the American roads and it was only for Japan
roads. After that, Toyota started making the vehicles that best suited to American roads which
attracted many buyers in this region too. From that instance, Toyota learned to make the vehicles
according to the region and started producing the vehicles according to the region’s needs which
made Toyota very successful all over the world. Likewise, the Toyota’s hybrid vehicle ‘PRIUS’
which was introduced in 1997 ruled the automotive industry which stood top in sales and customer
friendly. Later on, the design of Prius had aged and a refresh was not due for another two years.
So, the company was charged with developing a new strategy to maintain strong market share.
They started advertising Prius in a way which looks very pleasing to the customers. After that,
Toyota gained their entire share value in just six months, largely due to Prius sales.
Marketing and Advertising:
Irrespective of how big a company is, it cannot acquire the profits and reputation without marketing
and advertising about the company and the model they need to introduce onto the market. A logo
and a slogan give the company recognition and value. Toyota selected a logo from 27000 public
entries in 1936 and changed its name to Toyota from Toyoda. The company felt Toyota meaning
wealth and good fortune in the Japanese language sounds better and has an apt meaning to
describe the company, Toyota introduced a worldwide logo in October 1989 which has 3 ovals
joined to form the letter “T” which stands for Toyota. Toyota has different slogans in different
regions through different years. The present slogan in the USA is “Let’s Go Places” (2012-
present). Toyota published the mission statement on its official site in 2007 as “To sustain
sustainable growth by providing the best customer experience and dealer support” which states
clearly that its focus is “Customer Satisfaction”. Toyota believes in a philosophy, “Right car in the
Right Place and for Right person”, which makes Toyota to manufacture their products depending
on the region and imaginations of people. They developed various types of vehicles depending
on the people’s class and needs. For example, people that love luxury cars would go for Lexus.

19. 18
Toyota changes its marketing strategies time to time not only to increase their future business but
also to give more flexibility to the employees.
Advertising is the most effective way to convince people of how the company is the best to satisfy
their needs. It also plays a vital role in company’s values. An advertisement for the company and
a vehicle attracts people by letting them know about the vehicle. Advertising is done through
different sources like Mobile billiards, Television Commercials,Media etc., Toyota follows different
types of marketing and advertising managements to target different people and different sectors
like Media relationship management, CustomerOriented Promotions, Effective Advertising Media
etc., to increase the efficiency.
7. Toyota Environment Impact:
Toyota Motors Corporation is the leading Japanese automobile manufacturing company selling
more than 8.5 million models annually on all five different continents. The company vision is “to
achieve long term, stable growth in harmony with the environment, the global economy, the local
communities it serves and its shareholders.”
My father has a manufacturing business in India and we’re an OEM for Toyota, there was a
particular component that required plating, Toyota insisted on trivalent plating as hexavalent
plating is bad for the environment. From my personal experience with working with my dad, I
believe, they always stressed environmental issues while getting any component manufactured
by our company. And regularly held training seminars to educate their suppliers on using the best
practices on environmental evaluations, I believe training also forms an important component of
the overall environment strategy and management. One of the aspects of Toyota efforts that
have been assessed in a positive light is the fact that the company has a comprehensive
environment management system. The company has developed an environmental committee
chaired by the president of the company that oversees environmental issues.

20. 19
Toyota has also made advances in terms of promoting the cause of environmental friendliness.
They initiated a new eco label in the UK. This move is intended to grade cars on their fuel
efficiency and is aimed at guiding customers in their purchases. The scheme is a result of a
partnership with other organizations, including academia, governments, NGOs. The general aim
is to create positive changes in carbon emissions and increase the public awareness of the
problems of pollution and the way it adversely affects the environment.
Global warming being a big challenge lead Toyota to develop new environmental technology and
vehicles and due to this, they were the first motor company to introduce a hybrid car. They are
also credited for the innovation of Toyota D-CAT concept which reduces the diesel emissions. To
go beyond zero environmental impact and achieve a net positive impact Toyota has set itself six
challenges:
1) New vehicle with zero co2 emission challenge.
a) Development new technologies to achieve the best fuel efficiency performance and as of
2020, their aim is to reduce the average CO2 emission from vehicles globally by over 22%
b) Promotetechnology development for short distance purpose in combination with low carbon
traffic systems
c) Promote artificial photosynthesis technology using energy from co2, water and solar power
2) Life cycle zero co2 emissions challenge
a) Promote co2 reduction activities by further improving transport efficiency
b) Promote eco driving on a global scale

21. 20
3) Plant zero co2 emissions challenge
a) Promote activities to reduce co2 emission through development and introduction of low co2
production technologies and daily Kaizen activities.
b) Utilize clean energy adapted to the particular conditions of each country and region
4) Challenge to minimizing and optimizing water usage
a) Promote reuse of rare resources and use of recycled materials
b) Develop ecological plastic technology to meet quality and performance requirement
5) Challenge of recycling
a) Reduce the volume of materials discarded by taking action at source such as
improving yields and promoting effective use of resources
b) Promote reduction of scrap metal volume and effective use at all Toyota group companies
6) Challenge of establishing a future society in harmony with nature
a) Expand educational activities for local residents and schoolchildren by planting tress etc.
b) Promote wide ranging environmental initiatives through partnerships including resource
recycling, CO2 emission etc.,
Conclusion:
Toyota has shown solid commitment to changes to keep its company successful and compete
with other cars manufacturing companies. The management structure changes throughout the

22. 21
years helped them bringing closer to customers and build new quality cars. The Toyota engineer
whose discovery led to the development of the “Kanban System” a new process standard that
came to be the foundation for Toyota’s success to be more efficient with on time production.
Throughout the use of their classical “4Ps” model and Toyota Production System to make sure
continuous improvement with employees and car making decisions stands out not only in the car
industry but other can deploy such systems to make their companies a successful one like the
Toyota’s. Toyota has continued to improve customer relationships to get better with their
operational units. Their slogan “respect for the customer” is clearly a positive one to gain the trust
and respect from the customer themselves. Due to this quality cars and new model designs,
Toyota has kept strong position in industry and a lot of competition, they have deployed multiple
marketing and advertising companies to increase its sales force and it continues to do so. Toyota
is well known for being obsessed with waste and now they are taking a lead stand to improve
their cars to be less harmful to the environment. Thus, Toyota was the first car company to create
the hybrid car.
While Ford and Chevrolet dominated the market, Toyota has opened its American car dealership
in California in 1957. More than 50 years later, Toyota now is the world’s biggest car-maker and
well known for its quality and innovation. Whatmade Toyota a successfulcompanyand #1? There
are many reasons for that. But to mention a few, long-term planning, open mind to change,
obsession with waste, and humility.

23. 22
References:
1-http://www.leadingedgegroup.com/assets/uploads/The-Toyota-Way-by-John-Shook.pdf
2-http://www.sellingpower.com/content/article/?a=6119/the-toyota-success-formula
3.http://www.toyotaglobal.com/company/history_of_toyota/75years/data/company_information/managem e
nt_and_finances/management/organizational/index.html
4- El-Kadri, Nour. Kanban & Kaizen: Analysis of Manufacturing Operations. PPT.
5-"Hash Management Services LLP." Hash Management Services LLP. Web. 21 Feb. 2016.
6-Ohno, Taiichi. "Tovota Production System: Beyond Large-Scale Production." Tovota Production System:
Beyond Large-Scale Production. University of California Berkeley. Web. 21 Feb. 2016.
7-"Just-in-Time - Philosophy of Complete Elimination of Waste." Toyota Global Site. Web. 21 Feb. 2016.
8-Liker, J. (2007). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer
(35-41). New York: McGraw-Hill Education.
9-Nkomo, Th. (2014). Analysis of Toyota Motor Corporation. Retrieved from
http://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf [Accessed: 20 February 2016]
10-http://www.ukessays.com/essays/marketing/strategy-of-toyota-motor-corporation-marketing essay.php
11.http://www.toyotaglobal.com/company/history_of_toyota/75years/data/automotive_business/sales/acti
vity/north_america/index.html
12-https://en.wikipedia.org/wiki/Toyota
13.https://www.academia.edu/12300670/Promotional_and_Advertising_Strategies_Toyota_Motors_and_
General_Motors
14- http://www.handlpartners.com/assets/casestudies/pdfs/GET_HAPPY_case_study.pdf
15- http://www.toyota.com/usa/environment/vehicles
16- https://en.wikipedia.org/wiki/Toyota
17- https://en.wikipedia.org/wiki/Toyota
18- https://en.wikipedia.org/wik/toyotaproductionsystem