...Toyota is a well-known brand, especially to me because I have a Toyota Camry that I love. I wanted to learn more about the green marketing strategy, and I decided to focus mostly on the Prius marketing strategies, as it is a “green” vehicle and becoming very popular. The Toyota Prius provides a concrete case study of this truth. While the biggest product differentiation of the Prius is a fuel efficient, hybrid engine, most people do not buy it because it is eco-friendly. We assert that Toyota succeeded by marketing the Prius on multiple factors including the potential for gas savings, appeal to those who desire the latest technology, crossing into multiple market segments, and keeping the car practical, attractive, and functional. If they had appealed solely on impact to the environment, they would have failed to generate significant market penetration. Toyota did not set out to create a hybrid car. Rather, the Chairman Eiji Toyoda was concerned about the increasing popularity of larger cars and of the effect it would have on pollution levels in increasingly congested cities. He was concerned about the threat of peak oil looming and believed that the traditional internal combustion engine would not successfully carry Toyota into the next century. It was a year into that effort that Toyota decided to adapt a hybrid approach to creating a car with a lower impact on the environment. Toyota was cautious in entering the American market (Itazaki, 1999). Toyota's first step was...
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...Internationalization at Toyota: A Case Study Examining the internationalization of the Toyota Motor Corporation, this essay argues that the firm’s strategy of localism, pertaining to both design and production, has lain at the core of the firm’s international successes. In this regard, it notes that Toyota learned from early failures, pertaining to export vehicles, and adjusted its strategy in longitude so as to make the most of export opportunities across the international economy. Noting that the pooling of research & development (R&D) resources which exists in Japan is highly relevant to success in this regard, the essay proposes that Toyota’s all-encompassing strategy of localism is responsible for its international success. Concluding, the essay does note that two areas of weakness, pertaining to quality control and emergent market penetration, still plague Toyota’s internationalization ventures. Thus, while the firm is highly successful in this regard, potent internal difficulties problematize its continued success. Toyota’s First Attempts at Internationalization To begin, understanding Toyota’s significant contemporary global posture requires an understanding of the firm’s humble roots. Indeed, in the pre-World War II era, Toyota was a very small automobile manufacturing firm with middling success in the country’s domestic market. Indeed, it is only through the American War Department’s industrial training program that Toyota ultimately succeeded, in the...
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...Overview: The Toyota Production System has long been hailed and admired as the source of Toyota’s outstanding performance as a manufacturer. TPS aims to eliminate waste, reduce defects and maximize flow. TPS aims to increase efficiency and productivity by employing a unique production system that cuts costs through continuous improvement. Long term goal is to yield sharp reductions in product development and manufacturing lead times. Toyota want to be the industry best and they stand behind their culture to share the wealth of how they do it. 1. What is the relationship between Toyota’s organizational strategy and Toyota Production System? TPS is viewed as the benchmark, the top of the top in manufacturing and products development & Toyota’s strategy is to enhance its corporate value by maintaining its position as a market leader in the automotive industry. The strategy is to continuing its growth through global operations and through products. 2. What organizational and behavior factors need to be considered to effectively duplicate or imitate TPS? Job designing and approach ie job rotation, job enlargement, job enrichment, work teams, autonomous work groups & quality circles. As for behavior, factors would be training, technology, leadership, teamwork, and communication among the workers. 3. How does Toyota use the team approach? The team approach is through job rotation, cross training and assembly-line training. We learned in the case reading job rotation...
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...In the case study “Toyota Manufacturing USA, Inc.,” there were a number of areas where the TMM team deviated from the Toyota Production System and Lean. There are several things the GM and the manufacturing manager can to do address the issues with defective seats and ensure the assembly line runs more efficiently. 1. What, if at all, does the current defect handling for defective seats deviate from the Toyota Production System and Lean? The most significant deviation from TPS is the fact that the defective seat is installed and allowed to continue on the line until the end, where it is put in a holding area until a new seat can be installed. This is completely contrary to the concept of jidoka, or making problems self-evident and stopping production when problems were detected. The problem was moved to a holding area, where some cars remained for weeks waiting to be fixed. In addition, the line workers appeared puzzled when questioned about the defective seats--because the problem was not visible to them, they did not realize the extent of the problem, and, as a result, did not focus time and energy on developing a solution. This process also creates waste in the form of transportation and waiting. The seats are first moving to the Code 1 clinic area, then if the seat cannot be fixed there, the car is moved again to an overflow parking area where a new seat is reordered. While the principle of jikdoka requires that the line stop until the problem is solved, TMM...
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...Toyota Case Study: 1. What are the principal elements of the Toyota Production System? What capabilities must an organization possess in order to implement TPS effectively? ▪ Just-in-Time o Operate with the minimum resource required to consistently deliver o Just what is needed o In just the required amount o Just where it is needed o Just when needed ▪ Jidoka o One by one confirmation to detect anomalies o Stop and respond to every abnormality o Separate machine work from human work o Enable machined to detect anomalies and stop autonomously ▪ Problem Solving o Continual organization o See for yourself o Make decisions ▪ People & Partners o Grow leaders o Respect develop and challenge your people o Respect develop and challenge suppliers ▪ Process o Create process flow o Use pull system o Level out workload o Stop line o Standardize tasks o Use visual control o Use only tested technology ▪ Philosophy o Base management decision on a long term philosophy Capabilities Needed 1. Good Thinking: Stick to the facts and get down to the root cause of the...
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...Phan Nguyen Thuy Trang 1132300348 MARKETING MANAGEMENT STUDY TOYOTA: BUILDING CLEANER, GREENER CARS 1. How does Toyota’s approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and social responsibility)? Profit responsibility: Several its car models became the best-selling passengers in the markets. According to the text, Toyota is the world’s largest automobile manufacturer nowadays, ranking eighth largest corporation by Fortune magazine. Stakeholder responsibility: Toyota values the improvement and respect for through business practices: setting long-term vision and meet challenges with courage and creativity; improving business operations and always stimulate innovation and evolution; building consensus and expeditiously achieve goals; encourage personal growth, maximize individual and team performance. Social responsibility: the company aims “to contribute to society and the economy by producing high-quality products and services.” Along the growth of Toyota, it has also played a large role in society. For example, a $10 million Toyota USA Foundation use to support programs that focus on the environment, education, and safety. Since 1991 Toyota has contributed over $500 million to philanthropic programs in the United States. Toyota also pursuit an sustainable mobility due to its environmental vision. 2. How does Toyota’s view of sustainable mobility contribute to...
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...| TOYOTA – A GLOBAL MANUFACTURERMGMT 5008 | PROF. JAISON MATHEWS | 3/10/15 | SUNDARESH NATARAJAN 4234175 | | | TOYOTA – A GLOBAL MANUFACTURERMGMT 5008 | PROF. JAISON MATHEWS | 3/10/15 | SUNDARESH NATARAJAN 4234175 | | 1. Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? The plants should be located in every regional market they serve, preferably in non-seismic zone. In case a region has more than 2 plants, they should be built in geographically and climatically opposite places. Flexibility of these plants should be guided by Toyota’s global complementation strategy that allows plants to serve markets that are prospering when local market weakens. Capacity of each plant should be guided by the demand in the regional market they serve with the flexibility to serve additional demand from other export markets 2. Should plants be able to produce for all markets or only specific contingency markets? All plants should be able to produce the common parts required across all markets. This would ensure a plant’s ability to satisfy local demand as well as demand from other markets. 3. How should markets be allocated to plants and how frequently should this allocation be revised? Plants should cater the markets they are built in. This would basically reduce the logistics cost and also help company respond...
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...If we talk about the benefits of strategic triangle of 3 C’s the best example is TOYOTA PRODUCTION SYSTEM. The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. Originally called "Just-in-Time Production,". THEME: “Shortening lead time by eliminating waste in each step of a process leads to best quality and lowest cost, while improving safety and morale.” Toyota system demonstrates that focusing on quality actually reduced cost more than focusing only on cost. They always believe in doing right part of work in right amount and at right time. GOAL: The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required results smoothly; by designing out "mura" (inconsistency). It is also crucial to ensure that the process is as flexible as necessary without stress or "muri" (overburden) since this generates "muda" (waste). Finally the tactical improvements of waste reduction or the elimination of muda are very valuable. There are seven kinds of muda that are addressed in the TPS: 1.Waste of overproduction (largest waste) 2.Waste of time on hand (waiting) 3.Waste of transportation 4.Waste of processing itself 5.Waste of stock at hand 6.Waste of movement 7.Waste of making defective products The elimination...
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...Harvard Business School 9-693-019 Rev. September 5, 1995 Toyota Motor Manufacturing, U.S.A., Inc. On the Friday before the running of the 118th Kentucky Derby, Doug Friesen, manager of assembly for Toyota’s Georgetown, Kentucky, Plant, was approaching the final assembly lines, where shiny Camrys took shape. He heard a cheer go up. Team members on the lines were waving their hand tools towards a signboard that read “no overtime for the shift.” Smiling broadly, Friesen agreed: everyone in the plant surely deserved a relaxed Derby weekend. The plant had been hectic lately, as it was both supplying brisk sales of the all-new Camry sedan and ramping up station wagon versions for the European as well as North American markets. Overtime also had been necessary early in the week to make up lost production because the line utilization rate was below the projected target. In addition to these immediate problems, a growing number of cars were sitting off the line with defective seats or with no seats at all. The seat problem had been the subject of an urgent meeting called by Mike DaPrile, general manager of the assembly plant, that morning, May 1, 1992. At the meeting, Friesen learned of the situation firsthand from key people in both the plant and the seat supplier. He then spent the afternoon on the shop floor to learn more about the problem while the issues discussed were fresh in his mind. By the end of the day, it became clear to Friesen that the seat problem needed solving...
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...Introduction Toyota Motor Corporation: A brief history The Toyota Motor Corporation was founded in 1937 by Kiichiro Toyoda. It originally started as a subsidiary of his father’s company Toyoda Industries. The first vehicle, the Toyota AA, was produced in 1936 even the company was still associated with Toyoda. The brand was established as an independent company in 1937 and changed their name to Toyota. The change of its name was implemented to signify a separation of work and home, to simplify the pronunciation and because it only took 8 brush strokes (which is considered lucky) to write in Japanese. Toyota opened their first factory in 1938 but it had to be cease production during World War II. In 1950 the Toyota Motor Sales Company was established and the company began production on the BJ Toyota Jeep, the BX truck and the SG small truck. In 1956 the Toyopet chain was established. The first vehicle to be sold under this name was the Toyopet SA. The product line was discontinued in the 1960s due to negative connotations with the words toy and pet. During the 1960s Toyota opened a new research and development facility as well as establishing a prominent presence in Thailand. During this time Toyota also celebrated the production of its 10 millionth model. In 1982 the Toyota Motor Sales and Toyota Motor Company formed a merger to become one company, the Toyota Motor Corporation. Following this the company entered into a joint venture with General Motors called the New United...
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...Introduction Toyota Motor Corporation is one of the world largest automobile manufacturing. They have manufacturing plant throughout the world. Toyota has thirteen manufacturing plants in North American alone. One of its largest plants is here in the Georgetown, Kentucky where they produce the new Camry. Toyota is poised to overtake General Motors and become the largest car manufacturer in the world. Much of this success can be attributed to the renowned Toyota Production System (TPS). This system is one of the most admired lean manufacturing systems in existence and is constantly used in operational management text books as an example of how important operational management is to an organization. The main objectives to the TPS are to design out overburden and inconsistence, and to eliminate waste. Toyota has spent millions of dollars to bring over this system and implement here in its North American manufacturing plants. In our case we focus on the breakdown of this system that allows a small issue in seat installation to turn into a large problem that is slowing down production. Car production has dropped from run ratio of 85% to a run ratio of 95% in only one month. The run ratio measures the number of cars actually assembled in proportion to the number of cars that could have been assembled with no line stoppages. Along with the slowdown in production no one can put their finger on what is causing this and why there is a breakdown in the otherwise efficient TPS that usually...
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...Toyota Motors Case Study Introduction Toyota Motor Corporation is one of the world largest automobile manufacturing. They have manufacturing plant throughout the world. Toyota has thirteen manufacturing plants in North American alone. One of its largest plants is here in the Georgetown, Kentucky where they produce the new Camry. Toyota is poised to overtake General Motors and become the largest car manufacturer in the world. Much of this success can be attributed to the renowned Toyota Production System (TPS). This system is one of the most admired lean manufacturing systems in existence and is constantly used in operational management text books as an example of how important operational management is to an organization. The main objectives to the TPS are to design out overburden and inconsistence, and to eliminate waste. Toyota has spent millions of dollars to bring over this system and implement here in its North American manufacturing plants. In our case we focus on the breakdown of this system that allows a small issue in seat installation to turn into a large problem that is slowing down production. Car production has dropped from run ratio of 85% to a run ratio of 95% in only one month. The run ratio measures the number of cars actually assembled in proportion to the number of cars that could have been assembled with no line stoppages. Along with the slowdown in production no one can put their finger on what is causing this and why there is a breakdown in the otherwise...
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...Toyota Grows Much Bigger Than Any Other Car Manufacturer Toyota cars are some of the best and widely known cars in the current market. The Giant car automaker has produced cars since and grown to be a leading car manufacture. One can attest to this fact by the number of Toyota cars on the road globally which leads to affirming the common saying “the car in front is always a Toyota”. The manufacturer’s success is backed by the ability to produce low cost cars, mid-priced cars to the luxurious cars. The car manufacturer is able to cater for every need of the market by producing cars that meet economic convenience of different customers which many other car manufacturers were either unable to achieve or were reluctant to pursue. Another reason for the manufacturer’s success is the ability to cater for personalization. The car automaker for instance got aware of Scion’s target age group and went ahead to custom make a car that would serve their taste and preference. The ability to customize and personalize cars has helped the company far to build cars that are of the same make-up but customized to various dealerships requirements. The company is also able to build cars depending on the segment and strata. An example of the case is by building cars in the USA that meet the customer’s preference for comfort, dependability, size, perfection and luxury whereas in Europe meeting attention to detail. Lean manufacturing, improvement and innovativeness has led to company’s...
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...Toyota Motor Company, USA EXECUTIVE SUMMARY Toyota Motors Manufacturing (TMM) faces increasing problems with its seat supply. TMM’s single seat supplier, Kentucky Framed Seat (KFS), is responsible for the majority of the problems with material flaws and missing parts as the major encountered defects. These problems are increasingly occurring with an increase in varieties of and demand for the seats. Toyota currently addresses these problems offline; however, this is a deviation from the policies and procedures under the Toyota Production System (TPS). Now, as TMM ramps up for the production of the Camry Wagon, it must address the seat issue before seriously impacting production performance. We recommend the following major measures to overcome these problems: Immediate * Send TMM Quality Control (QC) people to KFS to identify and correct the source of the problem. * Place a QC person at the seat arrival dock to check for defects before sending seats to the line. * Continue fixing seat defects off line. It is too expensive to stop the line. * Assign employees to be responsible that correct replacement seats are procured in a timely manner. Long Term * Improve internal communication within Toyota, specifically between the Japanese design engineers and US manufacturing. * Decrease seat variety. * Implement TPS processes at the KFS factory. Fujio Cho pronounced this to be the next step for TMM. KFS is a logical first supplier to implement...
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...factors, the cost of petrol, used to power Toyota’s cars, was predicted to rise significantly, making Toyota’s products less attractive to customers. This prediction was correct, with the monthly cost of filling up an average car in 2008 now exceeding £100 for the first time in history (The Telegraph, February, 2008). In addition, Toyota knew that automotives were a significant source of carbon dioxide emissions and energy use. At the time consensus was growing amongst key stakeholder groups that CO2 emissions were causing global warming, a process where these gases form a blanket around the Earth, trapping energy from the sun causing the climate to change unnaturally, which would eventually demand global countermeasures which were likely to include measures governing emissions from automotives. Both of these issues posed a severe threat to Toyota’s core business as a car manufacturer. The company could predict that increased costs and changes in customer attitudes could damage their sales internationally, while governments were likely to penalize heavy emitters through taxes and legislation. The Challenge The challenge for Toyota was to acknowledge the potential threat of depleting oil reserves and climate change and change their strategy or products to meet the needs of...
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