Sakichi toyoda, the founder of the toyota
group of companies, started toyota as a
textile machine company.
Launched first car in 1947
Toyota production system formed in 1950
based on just-in-time principle
Overseas production starts in 1959
Ranked 6th in fortune global 500 list
Public company traded on the NYSE and the
ADR exchange in Tokyo
Employed 400000 people in 2012
Revenue of $272,749 Million in 2012
end of March
Toyota seeks to create a more
prosperous society through automotive
manufacturing and to sustain profitable
growth by providing the best customer
experience and dealer support
Produce reliable vehicles &
sustainable development of society
by employing innovation & high
quality of product & services.
Waste of over production
Waste of time on in hand
Waste of transportation
Waste of stock in hand
Waste of movement
Waste of making defective product
WHERE THEY ARE TODAY
Second Largest automaker, but most profitable
51 manufacturing companies in 26 countries
- Produce a vehicle every 6 seconds
Brands: Toyota, Lexus, Scion
Business partners with Daihatsu and Hino
automotive business accounted for 90% of revenues
Other 10%: housing, marine, GAZOO,
telecommunications, ITS, Biotechnology and
Success attributed to Toyota Production System
Toyota started their hybrid technology in Japan
After the high success in Japan, Toyota moved their Prius to the
US market where it has been very successful.
The first introduction of the Prius was in 2002 and since then
Toyota has come out with the Highlander and Lexus RX 400H and
next year they will release the Camry.
Most Toyota hybrid vehicles are available for purchase nationwide
Toyota Prius is offered nationwide but there are waiting lists for
Lexus first hybrid RX400H is available for purchase nationwide
Toyota Highlander has limited availability as of right now,
consumers can order the vehicle but they are not available on sales
Toyota Overall Promotion
The main promotion for Toyota hybrids is the tax deduction given to
consumers who purchase hybrid vehicles
with in the Prius that if the consumer has a
Bluetooth mobile phone, that allows customers with
onboard navigation system and hands free phone
capabilities with the vehicle
for the younger market by having a race car that
reached the speed of 130.794 mph
The Toyota Prius and Highlander are both in transition from
the introduction stage to the growth stage of the product life
Limited number of products are available through few
Other competitors are becoming attracted to the market and
will have similar offerings soon
They are focused on building brand and customer loyalty.
The Toyota Sienna and Camry are still in development but
will be ready for the introduction stage soon
They are focused on promoting these products to create
Toyota is offering high quality at a relatively low price in
order to penetrate the market
The Prius is priced the same as other five seater hybrids in
its class but gets much better gas mileage
Same price as the Honda Insight but holds three more
A hybrid Highlander SUV costs $5,000 more than the
It delivers more horsepower than the conventional
Highlander (30 horsepower)
It gets 10 more miles to the gallon
It greatly reduces the tail pipe emissions
Dedication to R&D
High market share
Easy availability of spare parts
High good will
Good resale value
Low fuel consumption
Over dependency on Japan & U.S. Market..
Risk that R&D outlays will not generate new
Poor organisational structure
The cars steering is a bit light and driver can
not feel the road
The body of the car is too heavy.
The rims and tyres of the car are not
Expanding HEV line in U.S. – gain more
Demand growth in China and India
Modifying designs that are proven for other
Consolidation through acquisition –
Develop new variety and style
Supply chain costs tied to oil (materials,
production and shipping)
Foreign exchange fluctuations
Growth of competitor.
Primary activities logistics toyota in
They do not process their own, or create
your on, they use a third party.
LIKE- leather seats, stearing, wheel, tyre to
TOYOTA PRODUCTION SYSTEM(TPS)
The production system developed by toyota motor
corporation to provide best quality, lowest cost, and
shortest lead time through the eliminating of waste.
The toyota production system was established on two
JIDOKA: Automation with a human touch, means
that when the problem occurs, the equipment stops
immediately, preventing defective product from being
JUST-IN-TIME: In which each process produces only
what is needed by the next process in a continuous
Outbound logistics means Collecting, storing
& distribution the product to buyers.
Toyota cars directly sent to toyota dealer, its
If sending more distance or export its
delivery using container.
MARKETING & SALES
Its provide means & incentives which allow buyers to
purchase the product.
Corporate Environmental Awareness: In 2003, Toyota
embarked on its first pan-European corporate advertising
campaign conducted by its Corporate Affairs department.
In order to better communicate its environmental
principals and activities – and support the "Aim: Zero
Emissions" message – Toyota created an Environmental
Brochure in early 2004. The Environmental Brochure was
designed and published to target the general public,
presenting Toyota’s basic environmental messages with a
clear focus on the environmental technologies that are
beneficial to consumers.
a) Toyota vehicles stand at the
Brussels International Airport.
b) Toyota vehicles advertisement on
the front of Toyota Motor Europe’s
head office in Brussels, Belgium.
Greening the Supply Chain: Toyota
therefore enlists the participation of those
suppliers in the effort to provide
environmentally friendly parts and materials
to its customers. To do this, Toyota
developed a set of Environmental
Purchasing Guidelines, which the company
encourages suppliers to follow.
Chemicals & Oils.
Service means it enhance or maintain the
value of the product.
PARAMETERS- Quality of service, type of
problem, service user friendly, service
advisor, service delivery.
Customer decide the selling price
Profit is what remains after subtracting the cost
The main way to increase profit is to reduce
Modern and sophisticated
Robotic system used with human as the
HUMAN RESOURCE MANAGEMENT
Toyota has approximately 400000 employees
In placement of an employee, the co. hold
the test continued with the training according
to its disciplines and expertise
4 major technology used by Toyota is
concerned with safety of its costumers....
Pre-crash safety with collision-avoidence
Adaptive driving beam
Pop up bonnet
Emergency response technology.
Acquire our supplier to provide quality item
at low price and in timely manner.
We co-operate with them to promote
environmental preservation and meet the
other demand of our society.
Long term view toward our relationship with
supplier based on fair business practices..
Revenue - $172,749 million
Gross Profit - $43,517 million
Operating Income - $15,571 million
Total Net Income - $10,907 million
- $171,652 million
General Motors - $193,517
Honda - $80,705
1-year sales growth: 5.6%
1-year net income growth: 0.8%
1-year employee growth: 0.1%
millions of Japanese Yens'
17,724,729.0 17,820,520.0 17,511,916.0 20,914,150.0
18,950,973.0 18,993,688.0 18,583,653.0 22,064,192.0
Cost of Goods Sold
15,971,496.0 15,985,783.0 15,795,918.0 18,010,569.0
Selling General & Admin
Interest and Investment Income
Other Non-Operating Expenses,
Other Non-Operating Income
EBT, INCLUDING UNUSUAL ITEMS 336,876.0
Income Tax Expense
Minority Interest in Earnings
Earnings from Continuing Operations 244,212.0
NET INCOME TO COMMON
INCLUDING EXTRA ITEMS
NET INCOME TO COMMON
EXCLUDING EXTRA ITEMS
Cash and Equivalents
Trading Asset Securities
TOTAL CASH AND
Finance Division Loans
and Leases, Current
LIABILITIES & EQUITY
Short-Term Borrowings 160,735.0
Current Portion of LongTerm Debt/Capital
Finance Division Debt,
Finance Division Other
Other Current Liabilities 1,342,395.0
Finance Division Debt,
Finance Division Other
In Millions of JPY (except for 12 months ending 2013-03per share items)
12 months ending 2012-0331
12 months ending 2011-03-31
12 months ending 2010-0331
Net Income/Starting Line
Changes in Working Capital
Cash from Operating
Other Investing Cash Flow
Cash from Investing Activities -3,027,312.00
Financing Cash Flow Items
Total Cash Dividends Paid
Issuance (Retirement) of
Issuance (Retirement) of
Cash from Financing
Foreign Exchange Effects
Net Change in Cash
Cost leadership scm in Toyota vendor
manufacture dealer customer
Local part receiving pc(panama city) store
production dock dealer.
Internal and vendor local part stock reduction
using kanban cycle
Use “pull” system to avoid over production
Best mini MPV (toya avanza)
Developed and produced multi product line
for different income class.
Design less fuel consuming engines.
Developing new brands with unique features.
Invest in other product line
Make more hybrid car.
QUESTIONS FOR AUDIENCE
Q1-When Toyota motors
launched his first car?