Toyota

Contents

1. Executive summary p 3 - 4

2. Toyota Production System p 5 - 11

3. Sales and Marketing p 12 -13

4. CC21 p 14

5. 2010 Global Vision p 15 -16

6. The Toyota Way p 17 - 20

7. Conclusion p 21 - 22

8. Bibliography p 23

Executive Summary

Toyota has evolved into the world’s most sophisticated modern corporation вЂ" one whose example has challenged modern days manufacturing and management involvement вЂ" happens to be a common topic of conversation among business analysts these days. And yet deconstructing Toyota means breaking down a corporation that uses all its resources, and more than 295,000 employees worldwide, to construct things that are not meant to come apart.

The above statement clearly indicates that Toyota is a company that are totally committed towards being the market leader in aspect of manufacturing, sales and quality. The article provided for this case study, emphasis the growth and maturity of the Toyota Corporation during a period of Ð'± 60 years вЂ" 1950 to present day. It highlights aspects of Toyota Production System (TPS), sales & marketing, Construction of Cost Competitiveness for the 21st Century (CCC21 for short) and 2010 Global Vision commitments that were the success factors that made Toyota to be a market leader.

By decoding Toyota I will discuss the following issues:

 Toyota Production System:

 Was the derivation and implementation of TPS done correctly?

 How effective is TPS?

 What beneficial aspects does it have for modern-day manufacturing companies, including Toyota?

 Sales and marketing:

 Was the way Toyota went about its marketing strategy correct at the time, and how effective was it?

 What benefits does this have for Toyota and other companies?

 CCC21:

 How effective was TPS for Toyota if they were still able to make additional savings with the implementation of CCC21.

 2010 Global Vision:

 Given the 2010 Global Vision, which was released in 2002, how effective, was Toyota in achieving the goals that were set?

The Toyota Way is based on the Guiding Principles. Its five core values express the beliefs and values shared by the Toyota Group. All Toyota team members, at every level, are expected to use these values in their daily work and relations with others.

• Challenge

• Kaizen

• Genchi Genbutsu, involves “going to the source to find the facts to make correct decisions, build consensus and achieve goals.”

• Respect

• Teamwork

As far as Toyota culture goes; they regard themselves as Japanese, but more important than the Japanese nature of our company is the "Toyota Way," which is embodied in their concepts and systems.

With the Toyota Way…one of the key elements is kaizen: continuous improvement. There's no end to it. It's a never-ending journey. Respect for people is another important element. Employees. Customers. Suppliers. When it comes to consumers, they demand changes from time to time. Toyota has to always keep watching what the consumer wants. If they base their business on what the customer wants, there's no end to the improvement they can achieve.

There are 14 principles that constitute the Toyota Way. The principles are organized in four broad categories: 1) Long-Term Philosophy, 2) The Right Process Will Produce the Right Results (this utilizes many of the TPS tools), 3) Add Value to the Organization by Developing Your People, and 4) Continuously Solving Root Problems Drives Organizational Learning.

This is what Toyota is all about, the reason why they are so successful and ultimately why they became the No. 1 auto maker in the world.

Toyota Production System

The production system developed by Toyota Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste. TPS is comprised of two pillars, Just-in-Time and jidoka, and is often illustrated with the "house" shown below. TPS is maintained and improved through iterations of standardized work and kaizen, following PDCA, or the scientific method.

Toyota Production System “House”

Development of TPS is credited to Taiichi Ohno, Toyota's chief of production in post-WWII period. Beginning in machining operation and spreading from there, Ohno led the development of TPS at Toyota throughout the 1950's and 1960's and the dissemination to the supply base through the 1960's and 1970's. Outside Japan, dissemination began in ernest with the creation of the Toyota-General Motors joint venture - NUMMI - in California in 1984.

The concepts of Just-in-Time (JIT) and jidoka both have their roots in the pre-war period. Sakichi Toyoda, founder of the Toyota group of companies, invented the concept of Jidoka in the early 20th Century by incorporating a device on his automatic looms that would stop the loom from operation whenever a thread broke. This enabled great improvements in quality and freed people up to do more value creating work than simply monitoring machines for quality. Eventually, this simple concept found its way into every machine, every production line, and every Toyota operation.

Kiichiro