Brief History of Toyota :
The official Toyota history is, like that of most
companies, fairly glossy and bare-bones. Sakichi Toyoda, a prolific inventor,
created the Toyoda Automatic Loom Company based on his groundbreaking designs,
one of which was licensed to a British concern for 1 million yen; this money
was used to help found Toyota Motor Company, which was supported by the
Japanese government partly because of the military applications. The Japanese
relied on foreign trucks in the war in Manchuria ,
but with the Depression, money was scarce. Domestic production would reduce
costs, provide jobs, and make the country more independent. By 1936, just after
the first successful Toyoda vehicles were produced, Japan
demanded that any automakers selling in the country needed to have a majority
of stockholders from Japan ,
along with all officers, and stopped nearly all imports.
Toyoda's car
operations were placed in the hands of Kiichiro Toyoda, Sakichi Toyoda’s son;
they started experimenting with two cylinder engines at first, but ended up
copying the Chevrolet 65-horsepower straight-six, using the same chassis and
gearbox with styling copied from the Chrysler Airflow. The first engine was
produced in 1934 (the Type A), the first car and truck in 1935 (the Model A1
and G1, respectively), and its second car design in 1936 (the model AA). In
1937, Toyota Motor Company was split off. From 1936 to 1943, only 1757 cars
were made – 1,404 sedans and 353 phaetons (model AB), but Toyoda found more
success building trucks and busses.
In 1959, the company opened its first plant
outside Japan - in Brazil . From
that point on, Toyota
maintained a philosophy of localizing both production and design of its
products (that is, adapting vehicles to the places they will be used, as well
as building them there). This builds long-term relationships with local
suppliers and local labor. Part of this also means that Toyota
does not merely build vehicles overseas, but also designs them there, with a
network of both design and R&D facilities in North America and Europe .
While
Toyota built
good near-luxury cars, sales of the Cressida and Crown were not especially
strong, especially given the brisk trade in Corollas and Camry’s.
Toyota first caught the world’s attention in
the 1980s, when it became clear there was something special about Japanese quality
and efficiency. Japanese cars were lasting longer than American cars and
required less repair. And by the 1990s it became apparent that there was
something even more special about Toyota
compared to other Automakers in Japan
(Womack, Jones and Roos, 1991).It was not eye-popping car design or performance
thought the ride was smooth and the designs often very refined. It was the way Toyota engineered and
manufactured the autos that led to unbelievable consistency in the process and
product. Toyota
designed autos faster, with more reliability, yet at a competitive cost, even
when paying the relatively high wages of Japanese workers. Equally impressive
was that every time Toyota showed an apparent
weakness and seemed vulnerable to the competition, Toyota miraculously fixed the problem and
came back even stronger. Today Toyota
is the third-largest auto manufacturer in the world, behind General Motors and
Ford, with global vehicles sales of over six millions per year in 170
countries. However, Toyota
is far more profitable than any other auto manufacturer. Auto industry analyst
estimate that Toyota
will pass Ford in global vehicles sold in 2005, and if current trends
continues, it will eventually pass GM to become the largest Automaker in the
world.
Profit
Margin and Market Share:
Every automotive industry
insider and many consumers are familiar with the Toyota ’s dramatic business success and world-
leading Quality:
§
Toyota’s
annual profits at the end of its fiscal year March 2003,was $8.13 billion
larger than the combined earning of GM, Chrysler, and Ford, and the biggest
annual profit for any auto maker in at least a decade. Its net profit margin is
8.3 times higher than the industry average.
§
While
stock prices of the Big 3 were falling in 2003, Toyota ’s shares had increased 24% over 2002. Toyota ’s market
capitalization (the total value of the company’s stock) was $ 105 billions as
of 2003-higher than the combined market capitalization of Ford, General Motors,
and Chrysler. This is an amazing statistic. Its returns on assets are 8 times
higher than the industry average. The company has made a profit every year over
the last 25 years and $20-$30 billions in its cash wars chest on a consistent
basis.
§
Toyota ’s
has for decades been the number one automaker in Japan
and a distant fourth behind the “Big 3” automakers in North
America . But in August of 2003,for the first time , Toyota sold
more vehicles in North America than one of the “Big 3” automakers(Chrysler).It
seems that Toyota could eventually become a permanent member of the “Big 3”
U.S. automaker.(Of 1.8 millions Toyota/Lexus vehicles sold in North America in
2002,1.2 million were made in North America. Toyota
is rapidly building new production capacity in the U.S.
at a time when U.S.
manufacturer are looking for opportunities to close plants, reduce capacity and
move production abroad.)
§
In
2003 the Toyota nameplate was on track to sell
more vehicles in the U.S.
than either the two brand names that have led U.S. sales for the past 100
years-Ford and Chevrolet. Camry was the top selling U.S. passenger car in 2003 and five
of the years prior. Corolla was the top selling small car in the world.
§
Toyota not long ago was known for making
small, basic transportation vehicles, yet in the ten years leaped out to become
the leader in luxury vehicles. Lexus was introduced in 1989 and in 2002 outsold
BMW, Cadillac, and Mercedes-Benz in the U.S. for the third year in a row.
§
Toyota
invented “lean production”(also known as “the Toyota production system” or
“TPS”),which has triggered a global transformation in virtually every
industry to Toyota’s manufacturing and
supply chain philosophy and methods over the last decades. The Toyota Production is the foundation of dozens
of books on “lean” including two best sellers: The Machine that changed the
World: The story of lean Production (Womack,Jones&Roos,1991)and Lean
thinking (Womack&Jones,1996). Toyota
employees are sought out by companies in almost every industry throughout the
world for their expertise.
§
Toyota has the fastest product development
process in the world. New cars and trucks take 12 months or less to design,
while competitors typically require two to three years.
§
Toyota is benchmarked as the best in class
by all of its peers and competitors throughout the world for high quality, high
productivity, manufacturing speed, and flexibility. Toyota automobiles have consistency been at
the top of quality ranking by J.D. powers and Associates, Consumers Reports,
and others for many years.
Successful
Products:
Much of the Toyota success comes from its astounding
quality reputation. Consumers know that they can count on their Toyota vehicle to work right the first time and keep on
working, while most U.S.
and European automotives companies produce vehicles that may work when new but
almost certainly will spend time in the shop in a year or so. In 2003 Toyota recalled 79 % fewer vehicles in the U.S.
than Ford and 92 % fewer than Chrysler. According to 2003 study in Consumer
Report, one of the most widely read magazines for auto-buying customers, 15 of
the top 38 most reliable from any manufacturer over the last seven years were
made by Toyota/Lexus. No other manufacturer comes close. GM, Mercedes, and BMW
have no cars on this list. Not a single Toyota
is on the dreaded “vehicles to avoid” while a handful of Fords, almost 50
percent of the GMs, and more than 50 percent of the Chryslers are to be
avoided, according to Consumer Reports.
Here are some other statistics from
Consumers reports’ 2003 annual auto issue:
§
In
the small Car Category (Toyota Corolla, Ford Focus/Escort, GM Cavalier, and Chrysler Neon), Toyota won
each of the last three years for overall reliability ,as well the prior three
years, and predicted reliability for the 2003 model year.
§
For
family sedans, the Toyota Camry beat out the Ford Taurus, the GM Malibu, and
Dodge Intrepid, winning in the last three years, the three prior years, and
predicted reliability for the 2003 model year.
§
More
than half of all Toyota
used cars are singled out as “recommended for purchased,” compared with less
than 10 percent of the Fords, 5 percent of the GMs, and none of the Chryslers.
§
Toyota/Lexus
has also dominated the J.D. Powers
“initial quality and long-term durability ranking for years. Toyota Lexus was
again the # 1 most reliable of Car, according to the J.D. Powers 2003 quality survey, followed by
Porsche, BMW, and Honda.
Toyota ’s
Global Vision and Mission :
Mission of Toyota is
to provide safe & sound journey. Toyota
is developing various new technologies from the perspective of energy saving
and diversifying energy sources. Environment has been first and most important
issue in priorities of Toyota
and working toward creating a prosperous society and clean world.
In 1995, when Okuda was executives vice
president of, he directed the management Planning department to create a vision
in order give concrete shape to what Toyota would like in ten years. Behind
this vision lay ambitious quantitative goal for such things as consolidated
sales growth, operating profits, and numbers of vehicles to sale to be achieved
by 2005, goals that kept sight of what was occurring at GM and Ford.” Some
people call becoming number one in the world ‘hegemony’”, said Okuda,”but the
chairman (then Shoichiro Toyoda) and I share an underlying commitment to that
goal.”
Toyota had already become
a giant corporation, one with a tremendous influence on society. A policy to
expand even further necessitated staying in the harmony with the society.”From
the 20th to the 21st centuries Okuda predicted,”the new
winds of world environmental issues, globalization, and the IT revolution have
swept across the automotive industry. Within five or ten years, there will be a
major paradigm shift that will redefine the car industry and even cars
themselves.
Toyota President Katsuaki
Watanabe, in his 2007 new year’s greeting, said that Toyota must implement thorough measures
concerning quality and reinforce the foundations of manufacturing by
implementing additional localization measures, including human resources
development from a global perspective and further support for local affiliates
to operate autonomously. Toyota intends to introduce
a flexible fuel vehicle (FFV) that can run on 100% bio-ethanol in Brazil . The
year 2007 will be the 70th anniversary of the establishment of Toyota Motor
Corporation. Toyota
recently put special Komatsu stamping equipment into its San Antonia plant; the
new presses use a third less energy than the prior stumpers, and are quiet
enough that employees no longer need sound protection gear. The stamps are
smaller as well, so the factory ceilings can be lowered, dramatically cutting
heating and cooling costs. The new stamps will be used in all Toyota ’s new North American plants, according
to Automotive News, and will be
retrofitted to older plants. The main difference is the technology, which uses
servo motors rather than hydraulics. Toyota
is the world’s first automaker to use the new technology.
Toyota ’s
Manufacturing Plants and Operational Countries:
Toyota
is the seventh largest company in the world and the second largest manufacturer
of automobiles, with production facilities in 28 nations around the world - and
the highest-production facility of any non-domestic automaker in the United States .
Generally, Japanese plants are flexible and produce multiple models, while
foreign (especially American) plants are devoted to a single model. In June
2006, Toyota had 52 overseas manufacturing
companies in 27 countries outside Japan ;
Toyota markets
vehicles in more than 170 countries / regions. The Toyota Motor Group sold
about 8.8 million Toyota/Lexus, Daihatsu and Hino vehicles worldwide in 2006,
marking a new record. In 2007, the Group is aiming for a 6 percent increase in
worldwide sales.
Now here is the detail of Toyota ’s plants all
around the world.
North America: United
States, Canada, Mexico:
Location
Start
Date
Models (2002)
Models (2003)
Models (2006)
Employees and Capacity (2003)
Notes
Fremont , California ,
US (NUMMI)
1984
Corolla - 157,561
Tacoma - 151,566
Voltz* - 8,108
Pontiac Vibe - 59,552
Total - 369,836
Corolla -
157,561
Tacoma - 161,566
Voltz* - 1,733
Pontiac Vibe - 74,223
Total - 395,083
Corolla
Vibe
Total: 428,633
5,600
people
370,000 vehicles
Former
poor-quality GM plant. UAW. Joint venture. Currently high quality. 5,400
employees in 2006. Japanese president. Free daily tours.
Huntsville , Alabama ,
US
2003
V6 and V8
engines for Tundra and Tacoma
52,318 V8s
350 people
(500 in 2005)
120,000 V8
130,000 V6
Tijuana , Mexico
2002
n/a
Tacoma
34,465
Tacomas
150 people
(700 in 2004)
30,000 trucks, 180,000 Tacoma
beds
Japanese
president; expanded in 2007 to capacity of 50,000. 760 employees in 2007.
Cambridge , Ontario ,
Canada
1987
95,030
Corollas
42,406 Solaras
80,582 Matrix
158,269 engines
135,428 Corollas
78,781 Matrix
13,334 RX330
200,317 I-4 engines
317,433
Corolla,
Matrix,
RX350
4,230
people
250,000 vehicles
150,000 engines
4,602
employees; North American president; Matrix to be replaced by Blade in 2008
Princeton , Indiana ,
US (TMMI)
1996
109,025
Tundra
77,561 Sequoias
105,663 Tundra
66,671 Sequoias
119,196 Siennas
324,190
Tundras,
Sequoias,
Siennas
4,700
people
500,000 vehicles
2006: 4,645
people; FX-SX starts Q1 2008
Princeton, Indiana (Toyota Motor Mfg)
1996
n/a
4-speed Camry automatics
5-speed Sienna, RX330 automatics
Corolla/Matrix/Vibe engines
360,000
transmissions
Georgetown , Kentucky (US)
1986
Avalon
Camry
Camry Solara
Avalon
Camry
Camry Solara
Sienna
Avalon
Camry
Solara
Camry Hybrid
6,900 employees
500,000 vehicles
500,000 engines
Toyota ’s largest facility outside of Japan ; highest production of any foreign plant
in the US .
Also builds four and six cylinder engines and powertrain parts. American
president. Builds Toyota ’s
first American-made hybrid.
Buffalo , West
Virginia
(US)
201,273
Fours
152,070 V6s
360,957 Trans
225,402 Fours
171,808 V6s
382,510 Trans
930 people
340,000 Fours
200,000 Sixes
360,000 Trans
Builds four
cylinder and V6 engines and automatic transmissions. Started making automatic
transmission gears in 2006.
Delta, B.C. (Canadian Autoparts Toyota)
1983
Wheels
Wheels
1.45
million wheels
Makes
aluminum alloy wheels for the North American and Japanese markets. “CAPTIN”
Long Beach , CA (TABC)
Parts (see
description)
Parts (see description)
Not listed
Toyota ’s first U.S. manufacturing plant;
produces sheet metal components, steering columns, catalytic converters, and
coated catalytic substrates for US and export. Assembles commercial trucks
for Hino Motors to be sold in North America
and beginning in 2005, will assemble 4-cylinder engines.
San Antonia , TX (TMMTX)
2006
None
One Tundra per minute starting in
2007
2,100
people in 2007
$1.3
billion plant, capacity 200,000/year, production started Nov 2006.
Blue Springs , Mississippi
2010?
None
150,000 Highlanders per year
starting in 2010
2,000
people in 2010
$1.3
billion plant started in 2007, near Tupelo
Cambridge , Ontario ,
Canada
1987
95,030
Corollas
42,406 Solaras
80,582 Matrix
158,269 engines
135,428 Corollas
78,781 Matrix
13,334 RX330
200,317 I-4 engines
4,230
people
250,000 vehicles
150,000 engines
Ontario , Canada
2009?
New plant
to build RAV4
Europe and Africa:
Toyota first entered the United Kingdom in 1992, and
currently employees nearly 3,000 people there. The Avensis and Corolla are made
at Burnaston (near Derby ), and engines are made
at Deeside, North Wales . The Bernaston plant, Toyota ’s first auto assembly plant in Europe ,
can make up to 220,000 cars per year.
Toyota seems satisfied with its British
factories, despite the strength of the pound against the euro. Toyota
argued that, while other companies (particularly Ford) are moving to
continental Europe to get better exchange rate, Toyota was happy with the efficiency of its
British plants, particularly the Burnaston factory.
TMC
= Toyota Motor Corp., TEMA = Toyota
Motor Engineering & Manufacturing
North
America,Inc., TICO = Toyota Industries Corp.
Location
Name
Start of operations
Toyota
equity
Products
Number of employees
2006 production
Czech Republic
Toyota Peugeot Citroën Automobile Czech
(TPCA) *
Feb. 2005
TMC 50%
Peugeot-Citroën 50%
Aygo
3,345
100,000
France
Toyota Motor Manufacturing France
S.A.S. (TMMF)
Jan. 2001
TME 100%
Yaris, engines
3,829
250,000
Yaris
192,000 engines
Kenya
Associated
Vehicle Assemblers Ltd.
Aug. 1977
None
Hiace, Land
Cruiser
360
1,000
Poland
Toyota Motor Manufacturing Poland
(TMMP)
Apr. 2002
TME 94.3%
Transmissions,
engines
1,982
331,000
transmissions
102,000 engines
Poland
Toyota Motor Industries Poland (TMIP)
Mar. 2005
TME 60%
TICO 40%
Engines
932
45,000
Portugal
Toyota Caetano Portugal .
Aug. 1968
TMC 27%
Dyna,
Hiace, Optimo
950
4,000
Russia
Toyota Motor Manufacturing Russia
(TMMR)
Dec. 2007
TMC 80%
EBRD 20%
Camry
600
–
South Africa
Toyota South Africa Motors
Jun-62
TMC 75.0%
Corolla,
Dyna, Hiace, Hilux, Fortuner, engines
8,690
147,000
vehicles
96,000 engines
Turkey
Toyota Motor Manufacturing Turkey
(TMMT)
Sep. 1994
TME 90%
Mitsui 10%
Corolla
3,421
177,000
U.K.
Toyota Motor Manufacturing (UK )
(TMUK)
Sep. 1992
TME 100%
Avensis,
Corolla, engines
4,897
282,000
vehicles
175,000 engines
Toyota ’s
Asian Factories:
TMC
= Toyota Motor Corp., TEMA = Toyota Motor Engineering & Manufacturing North
America,Inc., TICO = Toyota Industries Corp.
China :
Name
Start of operations
TMC-related equity
Products
Number of employees
2006 production
Tianjin
Jinfeng Auto Parts Co., Ltd. (TJAC)
July 1997
TMC 30%
Steering
assy, propeller shafts
410
–
Tianjin
Fengjin Auto Parts Co., Ltd. (TFAP)
May 1998
TMC 90%
Continuous
velocity joints, axles
350
–
Tianjin FAW
Toyota Engine Co., Ltd. (TFTE)
Jul 1998
TMC 50%
Engines
800
134,000
engines
Tianjin
Toyota Forging Co., Ltd. (TTFC)
Dec 1998
TMC 100%
Forging
parts
100
–
Tianjin FAW
Toyota Motor Co., Ltd. (TFTM)
Oct 2002
TMC 40%
TMCI 10%
Corolla,
Vios, Crown, Reiz
2,310
209,000
FAW Toyota (Changchun )
Engine Co., Ltd. (FTCE)
Dec 2004
TMC 50%
Engines
250
–
Toyota FAW (Tianjin ) Dies Co., Ltd. (TFTD)
Dec 2004
TMC 90%
Stamping
dies for vehicles
160
–
Guangqi
Toyota Engine Co., Ltd. (GTE)
Jan 2005
TMC 57.6%
TMCI 12.4%
Engines,
engine parts (cams, cranks)
50
–
Sichuan FAW
Toyota Motor Co., Ltd. (SFTM) *
Dec 2000
TMC 45%
TTC 5%
Coaster,
Land Cruiser, Prado, Prius
1,800
16,000
Guangzhou
Toyota Motor Co., Ltd. (GTMC)
May 2006
TMC 30.5%
TMCI 19.5%
Camry
1,400
61,000
Other
Countries of Asia :
Location
Name
Start of operations
TMC-related equity
Products
Number of employees
2006 production
Bangladesh
Aftab
Automobiles*
June 1982
None?!
Land
Cruiser
110
–
Taiwan
Kuozui
Motors, Ltd.
Jan 1986
TMC 51.7%
Camry,
Corolla, Hiace, Vios, Zace, Wish, Yaris, engines, stamping parts
2,486
97,000
India
Toyota
Kirloskar Motor Private Ltd.(TKM)
Dec 1999
TMC 89%
Innova,
Corolla
2,567
44,000
India
Toyota
Kirloskar Auto Parts Private Ltd.(TKAP)
July 2002
TMC 64%
TICO 26%
Axles,
propeller shafts, transmissions
742
–
Indonesia
PT. Toyota
Motor Manufacturing Indonesia
May 1970
TMC 95%
Dyna,
Fortuner, Innova, Kijang, engines
3,949
60,000 cars
233,000 engines
Indonesia
P.T. Astra
Daihatsu Motor
Jan 1992
TMC 61.75%
Avanza
5,045
63,000
Malaysia
Assembly
Services Sdn. Bhd (ASSB)
Feb 1968
UMW Toyota
100%
Camry,
Corolla, Vios, Hiace, engines, Hilux, Innova, Fortuner
3,232
54,000 cars
11,000 engines
Malaysia
Perodua
Manufacturing Sdn. Bhd
Aug. 1994
TMC 51%
Avanza
6,486
28,000
Pakistan
Indus Motor
Company Ltd.*
Mar. 1993
TMC 12.5%
TTC 12.5%
Corolla,
Hilux
1,651
35,000
Philippines
Toyota
Autoparts Philippines Inc. (TAP)
Sep. 1992
TMC 95%
Transmissions,
continuous velocity joints
578
221,000
transmissions
Philippines
Toyota
Motor Philippines Corp. (TMP)
Feb. 1989
TMC 34%
Camry,
Corolla, Innova
1,289
14,000
Thailand
Siam Toyota
Manufacturing Co., Ltd.
Jul 1989
TMC 96%
Engines,
propeller shafts, casting (block, head)
1,219
404,000
engines
Thailand
Toyota Auto
Body Thailand Co., Ltd.
May 1979
TMT 49%
Stamping
parts
141
–
Thailand
Toyota
Motor Thailand Co., Ltd. (TMT)
Dec 1964
TMC 86.4%
Camry,
Corolla, Vios, Wish, Hilux VIGO ,
Yaris
6,172
410,000
Thailand
Thai Auto
Work Co., Ltd. (TAW)
May 1988
TABJ 20.0%
TABT 60.0%
Fortuner,
Hilux VIGO
477
60,000
Vietnam
Toyota
Motor Vietnam Co., Ltd.
Aug 1996
TMC 70%
Camry,
Corolla, Vios, Hiace, Land Cruiser, Innova
712
14,000
* Produces vehicles other
than Toyotas, too.
Toyota ’s
Plants in South America :
Location
Name
Start of
operations
TMC-related
equity
Products
Number of
employees
2006
production
Argentina
Toyota Argentina
1997
100%
Hilux, Fortuner
2,523
65,000
Brazil
Toyota do Brasil
1959
100%
Corolla, Fielder
2,525
60,000
Colombia
Sociedad de Fabricacion de Automores
1992
28%
Land Cruiser Prado
1,316
7,000
Venezuela
Toyota de
Venezuela
1981
90%
Corolla, Dyna, Land Cruiser,
Fortuner, Hilux
1,708
23,000
Toyota ’s
Factories in Japan :
Name
Main products
Start of
Operations
Number of
Employees
Equity
share (%)
Toyota
Motor Kyushu, Inc.
Harrier,
Harrier Hybrid, Kluger, Kluger Hybrid, IS, ES
1992
4,191
100
Toyota
Motor Hokkaido, Inc.
Transmissions,
transfers, aluminum wheels, drivetrain parts, etc.
1992
1,702
100
Toyota
Motor Tohoku Co., Ltd.
Mechanical
and electronic parts
1998
237
100
Toyota Auto
Body Co., Ltd.
Hiace,
Liteace, Voxy, Noah, Estima, Prius, Land Cruiser, Alphard, Ipsum, Townace,
Regiusace, Coaster, Estima Hybrid, Alphard Hybrid, LX470
1945
10,628
56.03
Kanto Auto
Works, Ltd.
Century,
Crown, Corolla Spacio, Corolla Fielder, Isis, Belta , SC ,
Auris, BLADE
1946
5,528
50.08
Central
Motor Co., Ltd.
Raum, MR-S,
Scion xB, Corolla Axio, Corolla hatchbacks
1950
1,194
77
Gifu Auto
Body Industry Co., Ltd.
Hiace
1940
958
47.71
Daihatsu
Motor,Co., Ltd.
Rush,
Passo, Probox, Succeed, bB, Porte, SIENTA
1907
11,209
51.19
Hino
Motors, Ltd.
Dyna,
Townace, Liteace, FJ Cruiser, Toyoace, Hilux Surf
1942
9,507
50.11
Toyota
Industries Corp.
Vitz, RAV4
1926
10,584
23.51
Tahara
plant
Lexus
?
?
100
We know there are more, would anyone care to contribute?
International Diversification and
Return of Investment:
Toyota
has found that international diversification allows it to better exploit its
core competence, because sharing knowledge resources across subsidiaries can
produce synergy. Also, firm’s returns may affect its decision to diversify
internationally .For example ,poor retunes from domestic market may encourage
a firm to expand internationally
diversified firms may have access to more flexible labor markets, as the
Japanese do in the united states. In June 2006, Toyota
had 52 overseas manufacturing companies in 27 countries outside Japan ; Toyota
markets vehicles in more than 170 countries / regions. The Toyota Motor Group
sold about 8.8 million Toyota/Lexus, Daihatsu and Hino vehicles worldwide in
2006, marking a new record. In 2007, the Group is aiming for a 6 percent
increase in worldwide sales.
Toyota ’s
competitive advantage in the automobile sector:
There had been this
wide, long-standing recognition of Toyota
as the premier automobile manufacturer in terms of the unmatched combination of
high quality, low cost, short lead-time and flexible production. And Toyota 's operating system—the Toyota Production System—had
been widely credited for Toyota 's
sustained leadership in manufacturing performance. Furthermore, Toyota had been remarkably
open in letting outsiders study its operations. The American Big Three and many
other auto companies had done major benchmarking studies, and they and other
companies had tried to implement their own forms of the Toyota Production
System. There is the Ford Production System, the Chrysler Operating System, and
General Motors went so far as to establish a joint venture with Toyota called NUMMI,
approximately fifteen years ago.
Toyota’s
Innovation (technology and ideas):
As gas prices continue to soar, American
drivers are desperate to find cheaper solutions for the morning commute.
Automaker Toyota
-- famous for pioneering gasoline-electric hybrid technology -- is prepared to
supply that need by producing vehicles powered by ethanol and other alternative
fuels. "We're already developing vehicles that can operate in ethanol-rich
Brazil ,"
said Toyota North America President Jim Press on Tuesday. "We're
optimistic that we can offer similar vehicles to American consumers."
Press did not expand on the company's plans for flexible fuels, but noted that Toyota would be expanding
its hybrid technology, spearheaded by the Prius model, and is currently
developing a plug-in hybrid. "Hybrid technology can be teamed with every
other promising technology to make it even more efficient and fuel-stingy,
whether it's high-tech gas engines, clean diesels, biodiesel, ethanol, plug-in
hybrids or hydrogen fuel cells," Press said. Interest in hybrids has grown
proportionately to skyrocketing gasoline prices, but the vehicles still
represent a small portion of the overall U.S. market. Roughly 40 percent of
the United State 's oil still goes to gasoline
demand for traditional vehicle use, government figures state. While Toyota is enjoying some
success in the hybrid market, American-based competitor Ford has reduced its
focus on the technology, moving away from its proposed goal of building 250,000
hybrid vehicles annually by 2010. Ford seems skeptical of the ideas that
hybrids will improve the environment, reduce America 's dependency on foreign
oil, and that enough customers will participate to make it a reasonable
investment.
Knowledge to Predict
Future Needs Of Industry:
Toyota uses its knowledge to predict the
future needs of the automobile Industry and going to make hybrid technology.
The Toyota Corporation intends to develop a plug-in hybrid vehicle for its
demonstration fleet by 2010, according to an announcement made by Chief
Executive Officer Katsuaki Watanabe. The planned plug-in hybrids are already
under development, with two prototypes currently undergoing demonstration tests
by researchers at the University
of California . But while
existing prototypes operate with nickel-metal-hydride battery packs, Toyota aims for its new
hybrids to be equipped with lithium-ion batteries.
Lithium-ion batteries, already widely used in
consumer electronics, provide more energy per unit weight than older nickel-metal-hydride
batteries, and can store a charge for longer when not in use.
Watanabe cautioned that while successful lithium-ion batteries have already
been developed for hybrid electric automobiles, it is premature to assume that
such batteries can be mass produced with existing techniques.” As of today in
the lab, the small volume of lithium-ion we have already developed is closer to
the level we are satisfied with, but that is only in small quality," he
said. "There is a huge difference between small volume and mass production
of lithium-ion.” The remarks were interpreted as a response to General Motors'
(GM) alliance with battery maker A123, which has so far failed to deliver mass
production of lithium-ion batteries. Toyota’s other planned efforts in the area
of fuel efficiency include the unveiling of new hybrid-only models in 2009,
increased investment in the production of ethanol from wood waste, the
expansion of a joint Panasonic-Toyota batter factory, the introduction of
"clean diesel" V-8 versions of the Tundra pickup and Sequoia SUV and
the sale of 1 million hybrid vehicles by 2012. In addition, Watanabe announced
the company's intention to meet California 's
35 mile per gallon fleet standard "well in advance" of the 2020
deadline. Unlike competitor GM, Toyota
is conducting all of its research in-house, rather than in partnership with
small or start-up companies. According to Watanabe, this will make
technological development "faster and more efficient."
The
Training and Development of Personnel’s and Compensation :
A common
expression heard around Toyota
is “We do not just build cars, we build people.” Every new product development
program, every prototype, every quality defect in the factory, and every kaizen
activity is an opportunity to develop people. When former Toyota Motor
Manufacturing North American President Atushi (Art) Niimi was asked about his
greatest challenge when trying to teach the Toyota Way
to his American managers he responded: “They want to be managers not teachers.”
He explained that every manager at Toyota
is a teacher. Developing exceptional people is their number one priority. This
has become ingrained in the Toyota Way as a
cultural value throughout the company. It is frequently talked about in other
companies, but rarely practiced.
The
philosophy of developing people is so pivotal to Toyota that six of the fourteen principles
outlined in The Toyota Way are related to it:
Principle 1: Base management decisions on a
long-term philosophy even at the expense of short-term financial goals—perhaps
the most important long-term investment Toyota
makes is in its people and the passion to keep team associates employed for
their careers reflects that value.
Principle 6: Standardized processes are the
foundation for continuous improvement—as we will see standardized work and job
instruction training goes hand in hand and long-term team associates need to
learn to see waste and make improvements.
Principle 9: Grow leaders who thoroughly
understand the work, live the philosophy and teach it to others—teaching is the
most highly valued skill of leaders and leaders have to deeply understand the
work to teach and coach.
Principle 10: Develop exceptional people and
teams who follow your company’s philosophy—Teams depend on well-trained people
and part of individual development is learning to work in teams.
Principle 11: Respect your suppliers by
challenging them and helping them improve—Suppliers need to have the same
talent level as Toyota
team associates and are developed in similar ways.
Principle 14: Become a learning organization
through relentless reflection and continuous improvement—this was intentionally
at the top of the hierarchy of the Toyota Way
pyramid as becoming a learning organization is the highest level of
organizational effectiveness.
Some might debate whether
people are born with talent, or whether it is developed. Toyota ’s stand is clear-gives us the seeds of
talent and we will plant them, tend the soil, water and nurture the seedlings,
and eventually harvest the fruits of our labor. This analogy of planting seeds
and growing people is a common one within Toyota ,
possibly tracing back to the company being founded in a farming community. Of
course the wise farmer selects only the best seeds, but even with careful
selection there is no guarantee that the seeds will grow, or that the fruits
they yield will be sweet, and yet the effort must be made because it provides
the best chance of developing a strong crop. Toyota considers people’s native-born gifts
to be only about 10% of the total talent picture (or less). In other words,
natural talent gifts account for only 10% of the full capability of an
individual. Fully 90% or more of what we consider talent in the life of company
employees is actually learned through effort and repeated practice. This is the
essence of Toyota ’s
success. Begin with a good foundation— a person who has the capacity and desire
to learn and then develop specific talents through repeated effort and
practice.
The
Toyota ’s
Production System:
Many credit Toyota ’s success to aspects of the Toyota
Production System, established by Taïchi Ohno and Shigeo Shingo from the late
1950s through 1970 (when it gained the name). It includes aspects of Jidoka,
just-in-time production, and kaizen, reducing both inventories and defects. The
system is used worldwide, but is only one of the reasons for Toyota ’s success.
Jidoka is not letting a defect go from one
machine to the next, particularly in automated machinery; essentially, it adds
the ability to detect unacceptable quality during the process of production
rather than waiting until the end, when it may be hidden. The name itself is a
Japanese pun on the term “automation,” adding the character for a person into
the middle. Jidoka was actually implemented by the Toyoda power looms before Toyota was created.
Jidoka both reduces costs and increases reliability.
Just-in-time production is the principle of having parts
ready just as they are needed, rather than maintaining inventories across an
assembly plant and in warehouses. Most writers tend to focus on the cost
savings from having less capital tied up in inventory under this system, but
there is another advantage: engineering changes (to increase reliability or
functionality, or to cut cost) can take effect much more quickly, since
stockpiles of parts do not need to be cleared out; and problems with individual
parts can be detected much more quickly since they are used closer to the time
they are made.
References:
JEFEREY, K.L
(2004).The Toyota’s Way: 14 Management principles from the world’s greatest
manufacturer. USA: McGraw Hill Publisher.
JEFFREY,K.L
& MICHAEL,H.(2007).TOYOTA CULTURE: The Herat and Soul Of the Toyota
Way.Center for Quality and Organization.
KOICHI, S.
(1994). The Japanese Auto Mobile Industry. London: The Athlone Press.
LEWIS,K.P.(2003).Henery
Ford and the automobile Indusry.New York:The Rosen Publishing.
MICHEAL,W.R.(1999).General
Motors:A Photographic History.Chicago:Arcadia Publishing.
SATOSHI, H.
(2006).Inside the Mind of Toyota: Management Principles for enduring growth.
New York :Productivity Press.
TAIICHI,O.(1998).Toyota
Production System:Beyond Large scale Production.Toyko:Diamond,Inc.
WILLIAM, P.
(2006).Billy Alfred, and General Motors: The story of two Unique Man.
USA:AMACOM.
Brief History of Toyota :
The official Toyota history is, like that of most
companies, fairly glossy and bare-bones. Sakichi Toyoda, a prolific inventor,
created the Toyoda Automatic Loom Company based on his groundbreaking designs,
one of which was licensed to a British concern for 1 million yen; this money
was used to help found Toyota Motor Company, which was supported by the
Japanese government partly because of the military applications. The Japanese
relied on foreign trucks in the war in Manchuria ,
but with the Depression, money was scarce. Domestic production would reduce
costs, provide jobs, and make the country more independent. By 1936, just after
the first successful Toyoda vehicles were produced, Japan
demanded that any automakers selling in the country needed to have a majority
of stockholders from Japan ,
along with all officers, and stopped nearly all imports.
Toyoda's car
operations were placed in the hands of Kiichiro Toyoda, Sakichi Toyoda’s son;
they started experimenting with two cylinder engines at first, but ended up
copying the Chevrolet 65-horsepower straight-six, using the same chassis and
gearbox with styling copied from the Chrysler Airflow. The first engine was
produced in 1934 (the Type A), the first car and truck in 1935 (the Model A1
and G1, respectively), and its second car design in 1936 (the model AA). In
1937, Toyota Motor Company was split off. From 1936 to 1943, only 1757 cars
were made – 1,404 sedans and 353 phaetons (model AB), but Toyoda found more
success building trucks and busses.
In 1959, the company opened its first plant
outside Japan - in Brazil . From
that point on, Toyota
maintained a philosophy of localizing both production and design of its
products (that is, adapting vehicles to the places they will be used, as well
as building them there). This builds long-term relationships with local
suppliers and local labor. Part of this also means that Toyota
does not merely build vehicles overseas, but also designs them there, with a
network of both design and R&D facilities in North America and Europe .
While
Toyota built
good near-luxury cars, sales of the Cressida and Crown were not especially
strong, especially given the brisk trade in Corollas and Camry’s.
Profit
Margin and Market Share:
Every automotive industry
insider and many consumers are familiar with the Toyota ’s dramatic business success and world-
leading Quality:
§
Toyota’s
annual profits at the end of its fiscal year March 2003,was $8.13 billion
larger than the combined earning of GM, Chrysler, and Ford, and the biggest
annual profit for any auto maker in at least a decade. Its net profit margin is
8.3 times higher than the industry average.
§
While
stock prices of the Big 3 were falling in 2003, Toyota ’s shares had increased 24% over 2002. Toyota ’s market
capitalization (the total value of the company’s stock) was $ 105 billions as
of 2003-higher than the combined market capitalization of Ford, General Motors,
and Chrysler. This is an amazing statistic. Its returns on assets are 8 times
higher than the industry average. The company has made a profit every year over
the last 25 years and $20-$30 billions in its cash wars chest on a consistent
basis.
§
Toyota ’s
has for decades been the number one automaker in Japan
and a distant fourth behind the “Big 3” automakers in North
America . But in August of 2003,for the first time , Toyota sold
more vehicles in North America than one of the “Big 3” automakers(Chrysler).It
seems that Toyota could eventually become a permanent member of the “Big 3”
U.S. automaker.(Of 1.8 millions Toyota/Lexus vehicles sold in North America in
2002,1.2 million were made in North America. Toyota
is rapidly building new production capacity in the U.S.
at a time when U.S.
manufacturer are looking for opportunities to close plants, reduce capacity and
move production abroad.)
§
In
2003 the Toyota nameplate was on track to sell
more vehicles in the U.S.
than either the two brand names that have led U.S. sales for the past 100
years-Ford and Chevrolet. Camry was the top selling U.S. passenger car in 2003 and five
of the years prior. Corolla was the top selling small car in the world.
§
Toyota not long ago was known for making
small, basic transportation vehicles, yet in the ten years leaped out to become
the leader in luxury vehicles. Lexus was introduced in 1989 and in 2002 outsold
BMW, Cadillac, and Mercedes-Benz in the U.S. for the third year in a row.
§
Toyota
invented “lean production”(also known as “the Toyota production system” or
“TPS”),which has triggered a global transformation in virtually every
industry to Toyota’s manufacturing and
supply chain philosophy and methods over the last decades. The Toyota Production is the foundation of dozens
of books on “lean” including two best sellers: The Machine that changed the
World: The story of lean Production (Womack,Jones&Roos,1991)and Lean
thinking (Womack&Jones,1996). Toyota
employees are sought out by companies in almost every industry throughout the
world for their expertise.
§
Toyota has the fastest product development
process in the world. New cars and trucks take 12 months or less to design,
while competitors typically require two to three years.
§
Toyota is benchmarked as the best in class
by all of its peers and competitors throughout the world for high quality, high
productivity, manufacturing speed, and flexibility. Toyota automobiles have consistency been at
the top of quality ranking by J.D. powers and Associates, Consumers Reports,
and others for many years.
Successful
Products:
Much of the Toyota success comes from its astounding
quality reputation. Consumers know that they can count on their Toyota vehicle to work right the first time and keep on
working, while most U.S.
and European automotives companies produce vehicles that may work when new but
almost certainly will spend time in the shop in a year or so. In 2003 Toyota recalled 79 % fewer vehicles in the U.S.
than Ford and 92 % fewer than Chrysler. According to 2003 study in Consumer
Report, one of the most widely read magazines for auto-buying customers, 15 of
the top 38 most reliable from any manufacturer over the last seven years were
made by Toyota/Lexus. No other manufacturer comes close. GM, Mercedes, and BMW
have no cars on this list. Not a single Toyota
is on the dreaded “vehicles to avoid” while a handful of Fords, almost 50
percent of the GMs, and more than 50 percent of the Chryslers are to be
avoided, according to Consumer Reports.
Here are some other statistics from
Consumers reports’ 2003 annual auto issue:
§
In
the small Car Category (Toyota Corolla, Ford Focus/Escort, GM Cavalier, and Chrysler Neon), Toyota won
each of the last three years for overall reliability ,as well the prior three
years, and predicted reliability for the 2003 model year.
§
For
family sedans, the Toyota Camry beat out the Ford Taurus, the GM Malibu, and
Dodge Intrepid, winning in the last three years, the three prior years, and
predicted reliability for the 2003 model year.
§
More
than half of all Toyota
used cars are singled out as “recommended for purchased,” compared with less
than 10 percent of the Fords, 5 percent of the GMs, and none of the Chryslers.
§
Toyota/Lexus
has also dominated the J.D. Powers
“initial quality and long-term durability ranking for years. Toyota Lexus was
again the # 1 most reliable of Car, according to the J.D. Powers 2003 quality survey, followed by
Porsche, BMW, and Honda.
Mission of Toyota is
to provide safe & sound journey. Toyota
is developing various new technologies from the perspective of energy saving
and diversifying energy sources. Environment has been first and most important
issue in priorities of Toyota
and working toward creating a prosperous society and clean world.
In 1995, when Okuda was executives vice
president of, he directed the management Planning department to create a vision
in order give concrete shape to what Toyota would like in ten years. Behind
this vision lay ambitious quantitative goal for such things as consolidated
sales growth, operating profits, and numbers of vehicles to sale to be achieved
by 2005, goals that kept sight of what was occurring at GM and Ford.” Some
people call becoming number one in the world ‘hegemony’”, said Okuda,”but the
chairman (then Shoichiro Toyoda) and I share an underlying commitment to that
goal.”
Toyota President Katsuaki
Watanabe, in his 2007 new year’s greeting, said that Toyota must implement thorough measures
concerning quality and reinforce the foundations of manufacturing by
implementing additional localization measures, including human resources
development from a global perspective and further support for local affiliates
to operate autonomously. Toyota intends to introduce
a flexible fuel vehicle (FFV) that can run on 100% bio-ethanol in Brazil . The
year 2007 will be the 70th anniversary of the establishment of Toyota Motor
Corporation. Toyota
recently put special Komatsu stamping equipment into its San Antonia plant; the
new presses use a third less energy than the prior stumpers, and are quiet
enough that employees no longer need sound protection gear. The stamps are
smaller as well, so the factory ceilings can be lowered, dramatically cutting
heating and cooling costs. The new stamps will be used in all Toyota ’s new North American plants, according
to Automotive News, and will be
retrofitted to older plants. The main difference is the technology, which uses
servo motors rather than hydraulics. Toyota
is the world’s first automaker to use the new technology.
Now here is the detail of Toyota ’s plants all
around the world.
North America: United
States, Canada, Mexico:
Location
|
Start
Date |
Models (2002)
|
Models (2003)
|
Models (2006)
|
Employees and Capacity (2003)
|
Notes
|
1984
|
Corolla - 157,561
Tacoma - 151,566 Voltz* - 8,108 Pontiac Vibe - 59,552 Total - 369,836 |
Corolla -
157,561
Tacoma - 161,566 Voltz* - 1,733 Pontiac Vibe - 74,223 Total - 395,083 |
Corolla
Vibe Total: 428,633 |
5,600
people
370,000 vehicles |
Former
poor-quality GM plant. UAW. Joint venture. Currently high quality. 5,400
employees in 2006. Japanese president. Free daily tours.
|
|
2003
|
V6 and V8
engines for Tundra and
|
52,318 V8s
|
350 people
(500 in 2005)
120,000 V8 130,000 V6 |
|||
2002
|
n/a
|
34,465
Tacomas
|
150 people
(700 in 2004)
30,000 trucks, 180,000 |
Japanese
president; expanded in 2007 to capacity of 50,000. 760 employees in 2007.
|
||
1987
|
95,030
Corollas
42,406 Solaras 80,582 Matrix 158,269 engines |
135,428 Corollas
78,781 Matrix 13,334 RX330 200,317 I-4 engines |
317,433 Corolla, Matrix, RX350 |
4,230
people
250,000 vehicles 150,000 engines |
4,602
employees; North American president; Matrix to be replaced by Blade in 2008
|
|
1996
|
109,025
Tundra
77,561 Sequoias |
105,663 Tundra
66,671 Sequoias 119,196 Siennas |
324,190
Tundras,
Sequoias, Siennas |
4,700
people
500,000 vehicles |
2006: 4,645
people; FX-SX starts Q1 2008
|
|
Princeton, Indiana (Toyota Motor Mfg)
|
1996
|
n/a
|
4-speed Camry automatics
5-speed Sienna, RX330 automatics Corolla/Matrix/Vibe engines |
360,000
transmissions
|
||
1986
|
Avalon
Camry Camry Solara |
Avalon
Camry Camry Solara Sienna |
Avalon Camry Solara Camry Hybrid |
6,900 employees
500,000 vehicles 500,000 engines |
||
201,273
Fours
152,070 V6s 360,957 Trans |
225,402 Fours
171,808 V6s 382,510 Trans |
930 people
340,000 Fours 200,000 Sixes 360,000 Trans |
Builds four
cylinder and V6 engines and automatic transmissions. Started making automatic
transmission gears in 2006.
|
|||
Delta, B.C. (Canadian Autoparts Toyota)
|
1983
|
Wheels
|
Wheels
|
1.45
million wheels
|
Makes
aluminum alloy wheels for the North American and Japanese markets. “CAPTIN”
|
|
Parts (see
description)
|
Parts (see description)
|
Not listed
|
||||
2006
|
None
|
One Tundra per minute starting in
2007
|
2,100
people in 2007
|
$1.3
billion plant, capacity 200,000/year, production started Nov 2006.
|
||
2010?
|
None
|
150,000 Highlanders per year
starting in 2010
|
2,000
people in 2010
|
$1.3
billion plant started in 2007, near
|
||
1987
|
95,030
Corollas
42,406 Solaras 80,582 Matrix 158,269 engines |
135,428 Corollas
78,781 Matrix 13,334 RX330 200,317 I-4 engines |
4,230
people
250,000 vehicles 150,000 engines |
|||
2009?
|
New plant
to build RAV4
|
Europe and Africa:
TMC
= Toyota Motor Corp., TEMA = Toyota
Motor Engineering & Manufacturing
North
America,Inc., TICO = Toyota Industries Corp.
Location
|
Name
|
Start of operations
|
equity |
Products
|
Number of employees
|
2006 production
|
Feb. 2005
|
TMC 50%
Peugeot-Citroën 50% |
Aygo
|
3,345
|
100,000
|
||
Jan. 2001
|
TME 100%
|
Yaris, engines
|
3,829
|
250,000
Yaris
192,000 engines |
||
Associated
Vehicle Assemblers Ltd.
|
Aug. 1977
|
None
|
Hiace, Land
Cruiser
|
360
|
1,000
|
|
Apr. 2002
|
TME 94.3%
|
Transmissions,
engines
|
1,982
|
331,000
transmissions
102,000 engines |
||
Mar. 2005
|
TME 60%
TICO 40% |
Engines
|
932
|
45,000
|
||
Aug. 1968
|
TMC 27%
|
Dyna,
Hiace, Optimo
|
950
|
4,000
|
||
Dec. 2007
|
TMC 80%
EBRD 20% |
Camry
|
600
|
–
|
||
Jun-62
|
TMC 75.0%
|
Corolla,
Dyna, Hiace, Hilux, Fortuner, engines
|
8,690
|
147,000
vehicles
96,000 engines |
||
Sep. 1994
|
TME 90%
Mitsui 10% |
Corolla
|
3,421
|
177,000
|
||
Sep. 1992
|
TME 100%
|
Avensis,
Corolla, engines
|
4,897
|
282,000
vehicles
175,000 engines |
TMC
= Toyota Motor Corp., TEMA = Toyota Motor Engineering & Manufacturing North
America,Inc., TICO = Toyota Industries Corp.
Name
|
Start of operations
|
TMC-related equity
|
Products
|
Number of employees
|
2006 production
|
Tianjin
Jinfeng Auto Parts Co., Ltd. (TJAC)
|
July 1997
|
TMC 30%
|
Steering
assy, propeller shafts
|
410
|
–
|
Tianjin
Fengjin Auto Parts Co., Ltd. (TFAP)
|
May 1998
|
TMC 90%
|
Continuous
velocity joints, axles
|
350
|
–
|
Tianjin FAW
Toyota Engine Co., Ltd. (TFTE)
|
Jul 1998
|
TMC 50%
|
Engines
|
800
|
134,000
engines
|
Tianjin
Toyota Forging Co., Ltd. (TTFC)
|
Dec 1998
|
TMC 100%
|
Forging
parts
|
100
|
–
|
Tianjin FAW
Toyota Motor Co., Ltd. (TFTM)
|
Oct 2002
|
TMC 40%
TMCI 10% |
Corolla,
Vios, Crown, Reiz
|
2,310
|
209,000
|
FAW
|
Dec 2004
|
TMC 50%
|
Engines
|
250
|
–
|
Dec 2004
|
TMC 90%
|
Stamping
dies for vehicles
|
160
|
–
|
|
Guangqi
Toyota Engine Co., Ltd. (GTE)
|
Jan 2005
|
TMC 57.6%
TMCI 12.4% |
Engines,
engine parts (cams, cranks)
|
50
|
–
|
Sichuan FAW
Toyota Motor Co., Ltd. (SFTM) *
|
Dec 2000
|
TMC 45%
TTC 5% |
Coaster,
Land Cruiser, Prado, Prius
|
1,800
|
16,000
|
Guangzhou
Toyota Motor Co., Ltd. (GTMC)
|
May 2006
|
TMC 30.5%
TMCI 19.5% |
Camry
|
1,400
|
61,000
|
Other Countries of
Location
|
Name
|
Start of operations
|
TMC-related equity
|
Products
|
Number of employees
|
2006 production
|
Aftab
Automobiles*
|
June 1982
|
None?!
|
Land
Cruiser
|
110
|
–
|
|
Kuozui
Motors, Ltd.
|
Jan 1986
|
TMC 51.7%
|
Camry,
Corolla, Hiace, Vios, Zace, Wish, Yaris, engines, stamping parts
|
2,486
|
97,000
|
|
Toyota
Kirloskar Motor Private Ltd.(TKM)
|
Dec 1999
|
TMC 89%
|
Innova,
Corolla
|
2,567
|
44,000
|
|
Toyota
Kirloskar Auto Parts Private Ltd.(TKAP)
|
July 2002
|
TMC 64%
TICO 26% |
Axles,
propeller shafts, transmissions
|
742
|
–
|
|
PT. Toyota
Motor Manufacturing
|
May 1970
|
TMC 95%
|
Dyna,
Fortuner, Innova, Kijang, engines
|
3,949
|
60,000 cars
233,000 engines |
|
P.T. Astra
Daihatsu Motor
|
Jan 1992
|
TMC 61.75%
|
Avanza
|
5,045
|
63,000
|
|
Assembly
Services Sdn. Bhd (ASSB)
|
Feb 1968
|
UMW Toyota
100%
|
Camry,
Corolla, Vios, Hiace, engines, Hilux, Innova, Fortuner
|
3,232
|
54,000 cars
11,000 engines |
|
Perodua
Manufacturing Sdn. Bhd
|
Aug. 1994
|
TMC 51%
|
Avanza
|
6,486
|
28,000
|
|
Indus Motor
Company Ltd.*
|
Mar. 1993
|
TMC 12.5%
TTC 12.5% |
Corolla,
Hilux
|
1,651
|
35,000
|
|
Toyota
Autoparts Philippines Inc. (TAP)
|
Sep. 1992
|
TMC 95%
|
Transmissions,
continuous velocity joints
|
578
|
221,000
transmissions
|
|
Toyota
Motor Philippines Corp. (TMP)
|
Feb. 1989
|
TMC 34%
|
Camry,
Corolla, Innova
|
1,289
|
14,000
|
|
Siam Toyota
Manufacturing Co., Ltd.
|
Jul 1989
|
TMC 96%
|
Engines,
propeller shafts, casting (block, head)
|
1,219
|
404,000
engines
|
|
Toyota Auto
Body Thailand Co., Ltd.
|
May 1979
|
TMT 49%
|
Stamping
parts
|
141
|
–
|
|
Toyota
Motor Thailand Co., Ltd. (TMT)
|
Dec 1964
|
TMC 86.4%
|
Camry,
Corolla, Vios, Wish, Hilux
|
6,172
|
410,000
|
|
Thai Auto
Work Co., Ltd. (TAW)
|
May 1988
|
TABJ 20.0%
TABT 60.0% |
Fortuner,
Hilux
|
477
|
60,000
|
|
Toyota
Motor Vietnam Co., Ltd.
|
Aug 1996
|
TMC 70%
|
Camry,
Corolla, Vios, Hiace, Land Cruiser, Innova
|
712
|
14,000
|
Location
|
Name
|
Start of
operations
|
TMC-related
equity
|
Products
|
Number of
employees
|
2006
production
|
1997
|
100%
|
Hilux, Fortuner
|
2,523
|
65,000
|
||
1959
|
100%
|
Corolla, Fielder
|
2,525
|
60,000
|
||
Sociedad de Fabricacion de Automores
|
1992
|
28%
|
Land Cruiser Prado
|
1,316
|
7,000
|
|
Toyota de
Venezuela
|
1981
|
90%
|
Corolla, Dyna, Land Cruiser,
Fortuner, Hilux
|
1,708
|
23,000
|
Name
|
Main products
|
Start of
Operations
|
Number of
Employees
|
Equity
share (%)
|
Toyota
Motor Kyushu, Inc.
|
Harrier,
Harrier Hybrid, Kluger, Kluger Hybrid, IS, ES
|
1992
|
4,191
|
100
|
Toyota
Motor Hokkaido, Inc.
|
Transmissions,
transfers, aluminum wheels, drivetrain parts, etc.
|
1992
|
1,702
|
100
|
Toyota
Motor Tohoku Co., Ltd.
|
Mechanical
and electronic parts
|
1998
|
237
|
100
|
Toyota Auto
Body Co., Ltd.
|
Hiace,
Liteace, Voxy, Noah, Estima, Prius, Land Cruiser, Alphard, Ipsum, Townace,
Regiusace, Coaster, Estima Hybrid, Alphard Hybrid, LX470
|
1945
|
10,628
|
56.03
|
Kanto Auto
Works, Ltd.
|
Century,
Crown, Corolla Spacio, Corolla Fielder, Isis,
|
1946
|
5,528
|
50.08
|
Central
Motor Co., Ltd.
|
Raum, MR-S,
Scion xB, Corolla Axio, Corolla hatchbacks
|
1950
|
1,194
|
77
|
Gifu Auto
Body Industry Co., Ltd.
|
Hiace
|
1940
|
958
|
47.71
|
Daihatsu
Motor,Co., Ltd.
|
Rush,
Passo, Probox, Succeed, bB, Porte, SIENTA
|
1907
|
11,209
|
51.19
|
Hino
Motors, Ltd.
|
Dyna,
Townace, Liteace, FJ Cruiser, Toyoace, Hilux Surf
|
1942
|
9,507
|
50.11
|
Toyota
Industries Corp.
|
Vitz, RAV4
|
1926
|
10,584
|
23.51
|
Tahara
plant
|
Lexus
|
?
|
?
|
100
|
We know there are more, would anyone care to contribute?
|
International Diversification and
Return of Investment:
There had been this
wide, long-standing recognition of Toyota
as the premier automobile manufacturer in terms of the unmatched combination of
high quality, low cost, short lead-time and flexible production. And Toyota 's operating system—the Toyota Production System—had
been widely credited for Toyota 's
sustained leadership in manufacturing performance. Furthermore, Toyota had been remarkably
open in letting outsiders study its operations. The American Big Three and many
other auto companies had done major benchmarking studies, and they and other
companies had tried to implement their own forms of the Toyota Production
System. There is the Ford Production System, the Chrysler Operating System, and
General Motors went so far as to establish a joint venture with Toyota called NUMMI,
approximately fifteen years ago.
Toyota’s
Innovation (technology and ideas):
As gas prices continue to soar, American
drivers are desperate to find cheaper solutions for the morning commute.
Automaker Toyota
-- famous for pioneering gasoline-electric hybrid technology -- is prepared to
supply that need by producing vehicles powered by ethanol and other alternative
fuels. "We're already developing vehicles that can operate in ethanol-rich
Brazil ,"
said Toyota North America President Jim Press on Tuesday. "We're
optimistic that we can offer similar vehicles to American consumers."
Press did not expand on the company's plans for flexible fuels, but noted that Toyota would be expanding
its hybrid technology, spearheaded by the Prius model, and is currently
developing a plug-in hybrid. "Hybrid technology can be teamed with every
other promising technology to make it even more efficient and fuel-stingy,
whether it's high-tech gas engines, clean diesels, biodiesel, ethanol, plug-in
hybrids or hydrogen fuel cells," Press said. Interest in hybrids has grown
proportionately to skyrocketing gasoline prices, but the vehicles still
represent a small portion of the overall U.S. market. Roughly 40 percent of
the United State 's oil still goes to gasoline
demand for traditional vehicle use, government figures state. While Toyota is enjoying some
success in the hybrid market, American-based competitor Ford has reduced its
focus on the technology, moving away from its proposed goal of building 250,000
hybrid vehicles annually by 2010. Ford seems skeptical of the ideas that
hybrids will improve the environment, reduce America 's dependency on foreign
oil, and that enough customers will participate to make it a reasonable
investment.
Knowledge to Predict
Future Needs Of Industry:
Lithium-ion batteries, already widely used in
consumer electronics, provide more energy per unit weight than older nickel-metal-hydride
batteries, and can store a charge for longer when not in use.
Watanabe cautioned that while successful lithium-ion batteries have already been developed for hybrid electric automobiles, it is premature to assume that such batteries can be mass produced with existing techniques.” As of today in the lab, the small volume of lithium-ion we have already developed is closer to the level we are satisfied with, but that is only in small quality," he said. "There is a huge difference between small volume and mass production of lithium-ion.” The remarks were interpreted as a response to General Motors' (GM) alliance with battery maker A123, which has so far failed to deliver mass production of lithium-ion batteries. Toyota’s other planned efforts in the area of fuel efficiency include the unveiling of new hybrid-only models in 2009, increased investment in the production of ethanol from wood waste, the expansion of a joint Panasonic-Toyota batter factory, the introduction of "clean diesel" V-8 versions of the Tundra pickup and Sequoia SUV and the sale of 1 million hybrid vehicles by 2012. In addition, Watanabe announced the company's intention to meetCalifornia 's
35 mile per gallon fleet standard "well in advance" of the 2020
deadline. Unlike competitor GM, Toyota
is conducting all of its research in-house, rather than in partnership with
small or start-up companies. According to Watanabe, this will make
technological development "faster and more efficient."
Watanabe cautioned that while successful lithium-ion batteries have already been developed for hybrid electric automobiles, it is premature to assume that such batteries can be mass produced with existing techniques.” As of today in the lab, the small volume of lithium-ion we have already developed is closer to the level we are satisfied with, but that is only in small quality," he said. "There is a huge difference between small volume and mass production of lithium-ion.” The remarks were interpreted as a response to General Motors' (GM) alliance with battery maker A123, which has so far failed to deliver mass production of lithium-ion batteries. Toyota’s other planned efforts in the area of fuel efficiency include the unveiling of new hybrid-only models in 2009, increased investment in the production of ethanol from wood waste, the expansion of a joint Panasonic-Toyota batter factory, the introduction of "clean diesel" V-8 versions of the Tundra pickup and Sequoia SUV and the sale of 1 million hybrid vehicles by 2012. In addition, Watanabe announced the company's intention to meet
The
Training and Development of Personnel’s and Compensation :
A common
expression heard around Toyota
is “We do not just build cars, we build people.” Every new product development
program, every prototype, every quality defect in the factory, and every kaizen
activity is an opportunity to develop people. When former Toyota Motor
Manufacturing North American President Atushi (Art) Niimi was asked about his
greatest challenge when trying to teach the Toyota Way
to his American managers he responded: “They want to be managers not teachers.”
He explained that every manager at Toyota
is a teacher. Developing exceptional people is their number one priority. This
has become ingrained in the Toyota Way as a
cultural value throughout the company. It is frequently talked about in other
companies, but rarely practiced.
The
philosophy of developing people is so pivotal to Toyota that six of the fourteen principles
outlined in The Toyota Way are related to it:
Principle 1: Base management decisions on a
long-term philosophy even at the expense of short-term financial goals—perhaps
the most important long-term investment Toyota
makes is in its people and the passion to keep team associates employed for
their careers reflects that value.
Principle 6: Standardized processes are the
foundation for continuous improvement—as we will see standardized work and job
instruction training goes hand in hand and long-term team associates need to
learn to see waste and make improvements.
Principle 9: Grow leaders who thoroughly
understand the work, live the philosophy and teach it to others—teaching is the
most highly valued skill of leaders and leaders have to deeply understand the
work to teach and coach.
Principle 10: Develop exceptional people and
teams who follow your company’s philosophy—Teams depend on well-trained people
and part of individual development is learning to work in teams.
Principle 11: Respect your suppliers by
challenging them and helping them improve—Suppliers need to have the same
talent level as Toyota
team associates and are developed in similar ways.
Principle 14: Become a learning organization
through relentless reflection and continuous improvement—this was intentionally
at the top of the hierarchy of the Toyota Way
pyramid as becoming a learning organization is the highest level of
organizational effectiveness.
Some might debate whether
people are born with talent, or whether it is developed. Toyota ’s stand is clear-gives us the seeds of
talent and we will plant them, tend the soil, water and nurture the seedlings,
and eventually harvest the fruits of our labor. This analogy of planting seeds
and growing people is a common one within Toyota ,
possibly tracing back to the company being founded in a farming community. Of
course the wise farmer selects only the best seeds, but even with careful
selection there is no guarantee that the seeds will grow, or that the fruits
they yield will be sweet, and yet the effort must be made because it provides
the best chance of developing a strong crop. Toyota considers people’s native-born gifts
to be only about 10% of the total talent picture (or less). In other words,
natural talent gifts account for only 10% of the full capability of an
individual. Fully 90% or more of what we consider talent in the life of company
employees is actually learned through effort and repeated practice. This is the
essence of Toyota ’s
success. Begin with a good foundation— a person who has the capacity and desire
to learn and then develop specific talents through repeated effort and
practice.
The
Toyota ’s
Production System:
Many credit Toyota ’s success to aspects of the Toyota
Production System, established by Taïchi Ohno and Shigeo Shingo from the late
1950s through 1970 (when it gained the name). It includes aspects of Jidoka,
just-in-time production, and kaizen, reducing both inventories and defects. The
system is used worldwide, but is only one of the reasons for Toyota ’s success.
Jidoka is not letting a defect go from one
machine to the next, particularly in automated machinery; essentially, it adds
the ability to detect unacceptable quality during the process of production
rather than waiting until the end, when it may be hidden. The name itself is a
Japanese pun on the term “automation,” adding the character for a person into
the middle. Jidoka was actually implemented by the Toyoda power looms before Toyota was created.
Jidoka both reduces costs and increases reliability.
Just-in-time production is the principle of having parts
ready just as they are needed, rather than maintaining inventories across an
assembly plant and in warehouses. Most writers tend to focus on the cost
savings from having less capital tied up in inventory under this system, but
there is another advantage: engineering changes (to increase reliability or
functionality, or to cut cost) can take effect much more quickly, since
stockpiles of parts do not need to be cleared out; and problems with individual
parts can be detected much more quickly since they are used closer to the time
they are made.
References:
JEFEREY, K.L
(2004).The Toyota’s Way: 14 Management principles from the world’s greatest
manufacturer. USA: McGraw Hill Publisher.
JEFFREY,K.L
& MICHAEL,H.(2007).TOYOTA CULTURE: The Herat and Soul Of the Toyota
Way.Center for Quality and Organization.
KOICHI, S.
(1994). The Japanese Auto Mobile Industry. London: The Athlone Press.
LEWIS,K.P.(2003).Henery
Ford and the automobile Indusry.New York:The Rosen Publishing.
MICHEAL,W.R.(1999).General
Motors:A Photographic History.Chicago:Arcadia Publishing.
SATOSHI, H.
(2006).Inside the Mind of Toyota: Management Principles for enduring growth.
New York :Productivity Press.
TAIICHI,O.(1998).Toyota
Production System:Beyond Large scale Production.Toyko:Diamond,Inc.
WILLIAM, P.
(2006).Billy Alfred, and General Motors: The story of two Unique Man.
USA:AMACOM.