Agenda

Introduction
Vision
History
Key people
Product line
Key concept of production system
Leadership

Global Vision of Toyota

Toyota will lead the way to the future of mobility, enriching

lives around the world with the safest and most responsible
ways of moving people.

Through our commitment to quality, constant innovation and

respect for the planet, we aim to exceed expectations and be
rewarded with a smile.

We will meet our challenging goals by engaging the talent

and passion of people who believe there is a always a better
way.

Introduction On
Toyota Motors

Toyota is the largest automotive manufacturer (production)

Toyota Motor Corporation is headquartered in Toyota City, Aichi
Toyota has annual sales of 397.05 billion yen
Produces ~9.5 million vehicles per year
From 56 manufacturing plants across
6 continents
Employs 338,875 people
Toyota has become the largest vehicle manufacturer in Japan with
over 40% market share

History of
Toyota auto Industry

Established in 1937 out of Sakichi Toyotas weaving machine

company
Launched first car (SA Model) in 1947
The sales price was 3,350 yen, 400 yen cheaper than Ford or GM
cars
Toyota Production System formed in 1950 based on just in time
principal
First global expansion in 1959 at Brazil
In 1972, cumulative production >10M units
In 2002, Toyota managed to enter a Formula one

Organizational structure &

Key People
Chairman and Representative Director
Fujio Cho
President and Representative Director
Akio Toyoda
Executive Vice President and Representative Director
Takeshi Uchiyamada,Yukitoshi Funo
Directors
Nobuyori Kodaira, Mamoru Furuhashi

Toyota Total Sales By Region

Product Line

The Toyota Production System

Revolutionized manufacturing industry

At its core is lean a relentless drive to improve efficiency and
eliminate waste
Beginnings of TPS were born out of necessity due to lack of
resources in post-war Japan
Toyota has achieved the ISO 14001 certification in its very first
year of operations in India

GOAL of TPS

The main objectives of the Toyota Production System are to design

out overburden and inconsistency , and to eliminate waste..

Toyota Production System

Key Main Concepts
SMED

Single Minute Exchange of Dies

Promoted flexibility of production runs

JIT

Just In Time manufacturing

Small batches which reduced inventory costs, tightened
relationship with suppliers and improved quality control

JIT

Integrate quality into all

processes
Focus on continuous
improvement - Kaizen
Quality at the source - sequential
inspection
Jidoka - authority to stop line
Poka-yoke - fail-safe all
processes
Preventive maintenance scheduled
Work environment - everything
in its place, a place for
everything

Company strategy & Principles

In April 2001 the Toyota Motor Corporation adopted the "Toyota

Way 2001 an expression of values and conduct guidelines that all
Toyota employees should embrace
Under the two headings of Respect for People and Continuous
Improvement, Toyota summarizes its values and conduct guidelines
The five principles of Toyota are
Challenge
Kaizen (improvement)
Genchi Genbutsu (go and see)
Respect
Teamwork

Best Quality - Lowest Cost - Shortest Lead Time

Best Safety - Highest Morale

Continuous
Improvement

Respect
for
People

PDCA Learning Cycles

Leadership

Lead the organization as if you have no power.

Kan Higashi

Never tell anyone exactly what to doYou remove the

responsibility for the outcome.
Mr Ushikawa

Lead by being a consensus-builder

on problems, root causes, strategies, countermeasures, plans

Leadership at Toyota
Responsibility =Authority (Wrong)

a dynamic system in which processes were usually well-defined and

individual responsibility was almost always clear
Prototypical case of responsibility without formal authority: the
Toyota Chief Engineer.

The Chief Engineer says: I have no authority.

Everyone else says: The Chief Engineer is the most powerful

person in the company.

Leadership at Toyota
The Why? Technique

At Toyota, the burden of proof is clearly on the

subordinate to justify why a proposed action is
necessary.

Managers in Toyota rarely say Yes easily

they usually simply ask Why?

1. Why did things go wrong; what is the root

cause?
2. Why do you propose that?

A huge difference in determining organizational

focus.

Each justification is rooted in actual practice, in

the results of actual activities.

Strength

Global organization with strong international position

Growth opportunities in developing markets

Strong brand image based on quality, environmental

friendly (green)

Management & Kaizen Culture

Continuous Improvement

Strong employment relationship.

Weakness

Limited Research and Development done as compare to

competitors

Lack of flexibility in the company

Some criticism has been made due to large-scale re-call

made in 2005, quality issues.

Few layers in Organizational hierarchy, resulting in less

opportunity for promotions.

Lack of a proper sales force

Toyotas Future Strategy

Increase competitive strength through advanced

technology
Environmental technology
Fuel consumption, emission, recoverability
Hybrid vehicles and next generation fuel cells
Cost-reduction efforts
Discontinuation, integration of older models
Increased emphasis on financial services and information
communication system

THANK YOU