Contents
Introduction of Toyota motors
History of Toyota auto industry
Founder & CEO
Toyota business segment
Toyota total sales by region
Toyota Production System
-Goals, Principles
Toyota’s strategy
Non-automotive activities
Worldwide Presence and Ranking
Results
Introduction On Toyota Motors
Toyota is 3rd largest automotive manufacturer
Toyota Motor Corporation is headquartered in Toyota City,
Aichi
Toyota has annual sales of $120 Billion
Produces ~5.5 million vehicles per year
From 56 manufacturing plants across
6 continents
Employs ~200,000 people
Headquarter of Toyota City, Aichi-
Japan
History of Toyota auto
Industry
Established in 1937 out of Sakichi Toyota’s weaving
machine company
Launched first car (SA Model) in 1947
“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
Founder & CEO
Founder: kiichiro toyoda
CEO : Akio toyoda
MD: Hiroshi nakagawa
Production History
Domestic Production Total
UNIT Production
S
(thousands
)
6000
5000
4000
3000
2000
1000
1935 1936 1937 1940 1957 1960 1972 1980 1982 1988 1996 1999
Business segments
Automotive
Design, manufacture and sales of passenger cars,
recreational vehicles, SUVs and related parts
Financial services
Provisions of loans to car buyers and car deales
Others
Industrial vehicles (forklifts, etc.)
Toyota Total Sales By Region
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 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
GOALS
The main objectives of the TPS are to
design out overburden and
inconsistency , and to eliminate waste.
Seven kinds of
mudas(wastage)
over-production
motion (of operator or machine)
waiting (of operator or machine)
conveyance
processing itself
inventory (raw material)
correction (rework and scrap)
Toyota’s 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
Worldwide Presence
Geographic region Total sales
Japan 8,152,884
North America 8,771,495
Europe 3,346,013
Asia 1,969,957
Others 1,707,742
Ranking
Group Unit %share
T
Toyota 8,557,351 11.0
op 3 Automakers Global,
OICA, 2010
Gm 8,476,192 10.9
Volkswagen 7,341,065 9.4
Principles
[Link] Improvement
Challenge (long-term vision, meeting challenges with
courage & creativity)
Kaizen (continuous improvement)
Genchi Genbutsu (Go to the source to find the facts
to make correct decisions.)
[Link] for People
Respect
Teamwork
[Link]-term philosophy
Base your management decisions on a long-term
philosophy, even at the expense of short-term
financial goals.
[Link] right process will produce the right
results
Create continuous process flow to bring problems
to the surface.
Use the "pull" system to avoid overproduction.
Level out the workload
(Work like the tortoise, not the hare.)
Build a culture of stopping to fix problems,
to get quality right from the first.
Standardized tasks are the foundation for
continuous improvement and employee
empowerment.
Use visual control so no problems are hidden.
Use only reliable, thoroughly tested technology
that serves your people and processes.
[Link] value to the organization by developing
your people and partners
Grow leaders
Develop exceptional people and teams
Respect your extended network of partners and
suppliers by challenging them and helping them.
[Link] solving root problems
drives organizational learning
Used to thoroughly understand the situation
Make decisions slowly by consensus, thoroughly
considering all options
Become a learning organization through relentless
reflection and continuous improvement
Product line
•Electric technology- Toyota pirus, Auris,
Highlander and Camry
• Plug- in hybrids
• all electric vehicles- RAV4
• Cars- 70 different models
• SUV’S
• Luxury type vehicle
Non- Automotive Activities
AEROSPACE-
Toyota is a minority shareholder in Mitsubishi
Aircraft Corporation
invested US$67.2 million
will produce the Mitsubishi Regional jet.
It has also produced aircraft TAA-1 in 2002
Philanthropy
Toyota Municipal Museum of Art in Aichi helping
low-income community members for education
United Negro College Fund (40 annual
scholarships)
National Underground Railroad Freedom Centre
(US$1 million)
Higher education
Toyota established the Toyota Technological Institute in
1981, as Sakichi Toyoda
It founded the Toyota Technological Institute at Chicago in
2003
Supporter of-
- Toyota Youth for Understanding Summer Exchange
Scholarship Program
-Toyota Community Scholars
-contributed to a number of local education
Robotics
In 2004, Toyota showcased its
trumpet-playing robot.
developing multitask robots
destined for elderly care,
manufacturing, and
entertainment.
Example of Toyota's involvement
in robotics for the elderly is the
Brain Machine interface
Finance
Toyota Financial Services Corporation provides
financing to Toyota customers.
Agricultural biotechnology
P.T. Toyota Bio Indonesia in Lampung, Indonesia
Australian Afforestation Pty. Ltd. in Western
Australia and Southern Australia
Toyota Roof Garden Corporation in Miyoshi-Cho
Result
Reduction in leadtime and cost using
the TPS
This enabled it to become one of the
largest companies in the world.
THANK YOU …