Toyota Operation

In: Business and Management

Submitted By tjbolt05
Words 1787
Pages 8
Toyota Operations
Travis Bolt
Strayer University
Bus 508
Dr. Kerry Lanza

The global market is such a vast and seemingly endless landscape of huge corporations and great opportunities. One of the giants that stand out from those around is the Toyota Corporation. Toyota has been able to cross international boundaries and make themselves relevant in virtually all segments of the auto retail market. This operation is often modeled in other industries due to the simple and effective approach Toyota has taken. It has allowed them to move with the market, and develop quality products at competitive prices. Toyota Operations
Toyota is a brand that is recognized by virtually every civilized person in the world. This recognition is not something that came over night or through accident but rather by extensive planning and a common goal. The fundamental business of Toyota is developing and selling automobiles to the private consumer and small commercial applications. Toyota has become an industry leader by developing what consumers want and creating a real value for the customers.

Toyota’s Story
Toyota was originally founded in 1897 as Sakichi toyoda a loom company; it did not start researching gasoline engines until the 1930. In 1933, the automobile department was established as Toyoda Automatic Loom Works, Ltd. Within three years, Toyoda rolled out its first vehicle, the AA sedan. The following year the company name was changed to the Toyota Motor Co. we know today. The year 1950 brought a real financial crisis and as a result, the Toyota Motor Sales Co. was created. Within the next five years three more vehicles were developed; the Toyopet Crown, Toyopet Master, and the Crown Deluxe. In 1957 marked Toyota’s entrance into to the American market place with the export of the…...

Similar Documents


...Management On Toyota Multan Motors [pic] Topic: Employee Monitoring Submitted to: Prof. Aysha Ghias Submitted by: Syed Ali Kamran Abidi. Roll no. 50 Mirza Ali Raza. Roll no. 90 M. Jaffar Tayar. Roll no. 48 Syed Hussain Zain ul abiden. Roll no. 85 Punjab Groups of Colleges [pic] TABLE OF CONTENTS [pic] Chapter no. 1 Topics Page a) Introduction to Organization. 3- 5 b) Mission Statement. 6 c) Vision Statement. 7- 8 d) History of Organization. 9-26 e) Duration of Operation. 27 f) Location of organization. 28 g) Organization’s Various Department. 29 h) Organizational Hierarchy. 30 [pic] The Toyota Motor Corporation, or simply called Toyota is a Japanese multinational corporation and the world's second largest automaker that manufactures automobiles, trucks, buses and robots and the world's eighth largest company. The company's headquarters are in Toyota, Aichi, Japan with factories and offices around the world. Toyota Motor Co. was established as an independent company in 1937. Although the founding family name is Toyoda, the company name was changed in order to signify the separation of the founders' work life from home life, to simplify the pronunciation, and to give the company a happy beginning. Toyota is......

Words: 5507 - Pages: 23

Managing Operations in Toyota

...EXECUTIVE SUMMARY Operations Management plays a vital role in all the forms of organisation. Lack of operations management can lead to the failure of the business. In the following report we discuss the world’s largest automobile industry the Toyota Manufacturing Company and also some of the various principles with description and are useful in the operations management such as Just in Time, kaizen, vertical Integration, Toyota Production system and the Vertical Integration. These principles play a major role in the effective production and operations of Toyota as well as most of the other organisations. Let us now discuss the principles of operations management beginning with the history and background of Toyota. INTRODUCTION Japan is the world’s second largest automobile nation with 73 million vehicles on the road. Toyota is a Japanese company founded and formed by Kiichiro Toyoda in the year 1936. He was given a full strong support by his father Sakichi Toyoda an industrialist who use to invent Toyota Model G automatic loom. In the year 1937 the Toyota Motor Company Ltd was established. Since then it grew rapidly in the recent years. The success of the company was based on the principles of innovation and both for its products and the processes to make the product. At the start of the company the aim was to produce reliable and efficient cars in Japan. The company was very well accepted by the people and since then the company touched the......

Words: 3057 - Pages: 13

Toyota Operations Improvement Plan

...Operations Improvement Plan University of Maryland MBA 6022 February 17, 2012 Instructor: Dr. Ben Thompson Tracy Moore MBA 6022 2237 Gateway Blvd Baltimore, MD 21202 Abstract: Toyota is faced with an Accelerator crisis after allegedly faulty accelerator pedals in some of their vehicles caused the pedals to depress get stuck or cause them to accelerate. This lead to a massive recall and lead to penalties and fines from the US government and consumer confidence diminished. There are several processes that can be identified that will benefit Toyota and lead to improvement which is what will be discussed in this paper. Toyota Motor Corporation was founded by Kiichiro Toyoda. Its headquarters is in Japan and was established in 1933. According to by Greto, Schotter, and Teagarden (2010), “In 1934, the company produced its first Type A engine at the encouragement of the Japanese government, and two years later the company produced its first passenger car, the Toyota AA” (p. 2). After going through financial turmoil the 1950’s but helped out by the US government for the war effort in Korea, Toyota started a subsidiary in the US in 1957. In 1982 Toyota formed a joint venture with General Motors in the US at a plant in California. In 2009, a new president was named a Toyota, Akio Toyoda who was a member of the founding family. Akio Toyoda was at the helm of the company when the Toyota accelerator crisis hit and had to answer to a question and answer session before the...

Words: 2719 - Pages: 11


...Toyota and its component suppliers Assessment 3 [pic] Cai Ruodan 4398397 06/11/2013 1.0 Introduction Toyota Motor Corporation is a Japanese automaker, which is founded by Kiichiro Toyoda in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles. In March 2013, it was reported as the thirteenth-largest company in the world by revenue. The brand that it created like Lexus, Daihatsu and Hino Motors were famous in the world. And TMC is part of the Toyota Group, which is one of the largest conglomerates in the world. Toyota puts ‘high quality’ as their principal. Its commitment is that ‘Nothing is so good that it cannot be made better’. Toyota has taken an integrated approach to “making better cars” and providing “better services” with many business partners including suppliers and dealers. It puts high quality as its principal; it would not easily to accept an inexpensive unless such price is based on reasonably cost with its quality. And it seeks to contribute to society by providing customers with the most attractive products in the most timely manner (Toyota, 2013). The high quality car of Toyota leads to less maintenance and give its users more safety and wonderful driving experience inspire me to focus on the relationship between Toyota and its component suppliers. The purpose of this paper is to illustrate how Toyota maintains good relationship with its 200 component suppliers. In this paper, it will according to the quality...

Words: 1253 - Pages: 6


...Assignment 2: Toyota BUSI2701H Name: Ronnel Belda Student CUID: 100847861 Executive Summary: With thorough understanding of the benefits and cost involved in allowing Toyota to operate in the country, it is apparent that the company should be permitted to expand in the country. This proposal was based on the numerous benefits that exceed the risks associated with the operation. These benefits include the mass production that will upsurge the country’s export and employment, and help produce supporting industries. In 2012, Toyota manufactured 9.75 million vehicles1. In addition, Toyota’s large sales will generate high tax revenue. In 2012, Toyota’s net revenue was $226,106 million2. Moreover, Toyota provides training to individuals that will improve the country’s level of knowledge. Furthermore, Toyota’s competitiveness will influence its rivals to operate in the same country. In addition, Toyota also operates in non-automotive business. Lastly, Toyota can improve its products and services in the country. Company Description: Toyota Motor Corporation, established by Kiichiro Toyota in 1937, is a Japan-based automaker company headquartered in Toyota, Aichi, Japan3. The company offers various types of vehicles such as sedans, minivans, 2BOX cars, sport-utility vehicles, and trucks, as well as car related parts and accessories. Moreover, Toyota extends its corporation to non-automotive business, including housing, financial services,......

Words: 3251 - Pages: 14


...Toyota was established in 1937 in Japan. First time it introduced its product Corona in the US in 1965. By the 70’s, Toyota was the best-selling import brand in the US. During the 80’s, it started manufacturing vehicles in the US. In 2006, it had globally become the second largest car seller and third largest car sellers in the US having more than fifteen percent market share. This profound success of Toyota is associated with its most proficient market strategy. The case of Toyota notably proves that how important is market strategy in the life of a company to be a market leader. Today, Toyota’s mission statement is as follows: ““To sustain sustainable growth by providing the best customer experience and dealer support.” (Toyota, 2007). Customer satisfaction is the driving force for Toyota, which inspires it to provide the highest quality products and services. “Kaizen” is a word that Toyota upholds, which means “continuous improvement” of its technology, products, and services. In short, Kaizen for customer satisfaction is Toyota’s mission. Toyota further explains its mission as follows: “around here our values are just like yours. We are hard working. We are active in community. We are creating jobs. We celebrate our diversity. We are building cleaner greener cars. And this is just the beginning.” (Toyota, 2007) In 2001, Toyota redesigned its best selling car Camry and replaced its sign off from 'Toyota everyday' to 'get the feeling'. Toyota now believed that it is......

Words: 388 - Pages: 2


...Opportunities of Toyota Company The first opportunity that Toyota Company having is increasing demand for Hybrid Electric Vehicle. A hybrid electric vehicle (HEV) is combining a conventional internal combustion engine (ICE) propulsion system with an electric propulsion system to produce a type of hybrid and electric vehicle. The demand for HEV will be increase due to the rising energy costs and increased emissions regulations. The engines of hybrid also more fuel efficient and less polluting compare with the conventional gasoline and diesel engines. Production volume will increase due to the cost disparities between HEVs and conventional light vehicles. The primary markets of the Hybrid Electric Vehicle which is United States, Western Europe and Japan also expected to experience relatively strong demand forthese fuel efficient and environmentally friendly vehicles. Toyota Motor is targeted with the growth of demand for hybrid electric vehicles. They were spending a lot of money for the development of hybrid vehicle. The Toyota Motor’s hybrid vehicle sales in 2008 are higher than their expectation. After that, the Toyota Company toward this development such as scheduling to launch the iQ ultra-efficient package vehicle in Japan and Europe. Toyota Company is focusing with the hybrid technology to capitalize on the position market trends in this segment to enhance its market position. The second opportunity of Toyota Company is they having the opportunities in Asian market....

Words: 616 - Pages: 3


...Michael Greto Andreas Schotter Mary Teagarden Toyota: The Accelerator Crisis The root cause of their problems is that the company was hijacked, some years ago, by anti-family, financially oriented pirates. Jim Press, former President & Chief Operating Officer (COO) Toyota Motor Sales, U.S.A., Inc. On February 24, 2010, Akio Toyoda, the grandson of Toyota Motor Corporation’s founder, Kiichiro Toyoda, endured a grueling question-and-answer session before the U.S. House of Representatives Committee on Oversight and Government Reform. The committee represented just one of three Congressional panels investigating the 2009-2010 recall of Toyota vehicles related to problems of sudden acceleration and the company’s delay in responding to the crisis. Signs of the coming recall crisis began as early as 2006 when the National Highway Traffic Safety Administration (NHTSA) opened an investigation into driver reports of “surging” in Toyota’s Camry models. The NHTSA investigation was closed the next year, citing no defects. Over the next four years, Toyota, known in the industry for its quality and reliability, would quietly recall nearly nine million Toyota and Lexus models due to sudden acceleration problems. Toyota’s leadership, widely criticized for its slow response in addressing the problems, now had to move quickly to identify a solution that would ensure the safety of its vehicles, restore consumer confidence, protect the valuable Toyota brand, and recoup a plummeting share......

Words: 13407 - Pages: 54


...1. Where should the plant be located and what degree of flexibilities should be build into each? What capacity should each plant have? Answer: Toyota applies its global complementation strategy to its part plant. Each plant should be designed with capacity to supply its regional factories. Toyota has around 45 plants globally to cater the demand of customers. Their plants have flexibility to manufacture their various models from the same plant. They have highest capacity at its plant located at CANADA having capacity of 18000cars / month. All other facilities are having an average capacity of around 10000 cars/ month. 2. Should plant be able to produce for all markets or only specific contingency market? Answer: Flexibility to supply other markets when their local market demand is weakened. Their plant should able to supply at least one more market / region. Their plants are sufficient enough to cater the local demand as well as the global demand. During inflation or deflation in economy, they can manage their global operation to survive in the market by promoting low manufacturing cost plant operations. 3. How should markets be allocated to plant and how frequently should this allocation be revised? Answer: Standard allocation should be optimized during the planning phase. Adjusted when necessary, reviewed either annually or twice in a year. 4. What kind of flexibilities should be build into the distribution system? Answer: Optimized flexibilities should be build into the...

Words: 307 - Pages: 2

Toyota Motor Company Operation/Quality Research Report

...Running head: TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 1 Toyota Motor Company Operations/Quality Research Report TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 3 Table of Contents Abstract 2 Introduction-Company History 4 Company’s Orientation 5-6 Operations Management 7-9 Lean Systems 9-12 Managing Quality 12-14 Improvements in Quality 14-15 References 16 TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 2 Abstract Toyota Motor Company is the number one car manufacturer in the world today. They were founded by Sakichi Toyoda, some three quarters of a century ago in Japan. Through the years Toyota Motor Company has seen major growth throughout their hierarchy. Toyota’s growth can be attributed to Toyota’s company orientation and that is recognizing the consumers’ demands, having the right products in place to meet these demands. Throughout the years Toyota Total Quality Management (TQM) was the strength of Toyota year after year winning quality awards. Along with quality, Toyota pioneered their own lean system called Toyota Production System (TPS) which identifies and reduces/eliminates waste and variance in processes. Managing product quality was Toyota Motor Company’s claim to gaining market share over the U.S. car manufactures’ but recently the......

Words: 3589 - Pages: 15


...Q:1)Why has Toyota been successful? Toyota motor corporation is a very well known and one of the largest car maker in the world. The company is known for its effective and efficient approach to production management, its quality products, and outstanding labor relation. Key to success 1. Toyotas production system (TPS) aim at producing high quality car with low cost. For that they applied JIT (Just in Time manufacturing) to avoid the high inventory cost of the traditional assembly operation. The effectiveness of TPS is aided by closer relationship with suppliers and by continuous improvement, teamwork, decentralized decision making, and motivated work force . 2. They design vehicles by customer choose. Customer can order cars according to their need. Their customer service is too good for that customer are kept happy even after the car is delivered. 3. Toyotas worker are well trained in several kind of skills so that they can operate several machines. They are also trained to trace any error to its sources. 4. Toyota have a good relationship with its suppliers who deliver parts daily to the production line. 5. One of the Toyotas successful was the introduction of the luxury Lexus model . 6. Toyota has reputation for producing cars which are greener, more fuel efficient, and of good performance. Q:2)What are the strategies for gaining entrance into foreign countries? It successfully entered markets and penetrated them with both manufacturing......

Words: 477 - Pages: 2


... Toyota’s Global Production Strategy Toyota Motor Corporation is one of the largest car makers in the world. Although headquartered in Toyota City, about 150 miles west of Tokyo, it has production or assembly facilities in many parts of the world. The company is known for its effective and efficient approach to production management, its quality products, and its outstanding labor relations. The Toyota production system (TPS) integrates craft with mass production, and it is now emulated by its competitors. The system aims at producing high-quality cars at low costs, accomplished in part by having parts delivered to the production line “just in time” to avoid the high inventory costs of the traditional assembly operation. It is sometimes called “just-in-case” inventory system, referring to the practice of storing additional parts just in case a part is defective or is needed because of unforeseen circumstances. The effectiveness of TPS is aided by close relationships with suppliers and by continuous improvement, teamwork, decentralized decision making, and a motivated work force. Vehicles are designed with customers in mind, who can order cars according to their needs. Even after the car is delivered, customers are kept happy by good customer service. Toyota uses several ways to improve production. Workers are trained in several kinds of skills so that they can operate several machines. Electrical signs, called andon boards, show daily production figures and problems on......

Words: 1019 - Pages: 5


...Running Head: PRODUCTION AND OPERATION MANAGEMENT Production and Operation Management of Toyota Introduction In today’s fast moving economy, every organization needs to change their production and operation and provide effective products and services to the customers according to their needs and demands. This paper discusses the operation and production management system of Toyota and the use of teams in production and operation management. This paper also discusses the ability of Toyota to adjust the crisis. Toyota Motor Corporation Toyota is a leading car manufacture company in the world. Headquarter of Toyota is in Japan. The company deals in luxury cars, trucks and cabs and in recent year, company launched its hybrid car called “Prius” for the customers in the market. Toyota covers major shares in the market and ranked on number one in the year of 2010 with 8.6 million units produce globally. The market share of Toyota in FY 2011 is 11.5 percent (Bloomberg, 2011). The net revenue of Toyota in 2011 is $ 229.06 billion. The market capitalization of Toyota is $ 212.60 billion (Yahoo Finance, 2011). Company has the global presence and introduces new products and segment cars according to the needs and demand of the customers and market conditions of a country. Company operates their business in all five continents and has 77 manufacturing companies in 27 countries of the world, which produce different luxury and segment cars, trucks etc. and the......

Words: 1778 - Pages: 8


...TOYOTA’S OPERATIONS STRATEGY Lean Manufacturing Toyota’s lean manufacturing has enabled the company to focus on consistent design and responsive approach to production operation. The company’s workforce is self-directed and motivated by output based measures and customer oriented criteria. The concepts of just in time (JIT), Kanban and respect for employees together with expedited problem solving approach (automated error correcting) has enabled the company to pursue lean innovations. Lean manufacturing has enabled Toyota to successfully develop its production systems to include new types of designs. The principles enables Toyota to manage its value stream, identify customer value, implement a “pull” approach that ropes the flow of scarce materials in operations and the overall development of production capability. The success of this ingenious strategy has enabled the company to rise up to global success in the auto industry. While the company still maintains its impressive performance in the application of lean practices, less of its competitive edge can be traced to TPS, more comes from applying lean product development strategies. As a result, lean best practices provide synergy to Toyota Production System. Supply Chain Management Toyota’s Supply chain management is a perfect combination of Porter’s value chain strategy, Kierestsu strategy, and Eliyahu Goldratt’s theory of constraints. Supply chain involves all activities associated with the transformation of...

Words: 954 - Pages: 4


...Toyota   Toyota is currently the biggest car maker in the world. Toyota’s production model has been for long the envy of Detroit’s big three and the benchmark for the auto industry. The auto market in the US has showed signs of improvement, a sign of encouragement for the company. Toyota has invested billions of dollars to develop manufacturing capabilities and supplier networks to supply those markets. Toyota has many comparative advantages over it peers: a strong operational model that generates high margins; a strong global brand synonymous for quality and a business model that allows it to churn out multiple car models at low cost, high speed and high quality. Although Toyota’s supremacy is not uncontended; the so called big three are improving the quality of their cars, Volkswagen is currently buoyant of its success in Europe and the developing nations like China and Brazil and has announced that it will build a plant in the US, a return after an absence of 20 years. Hyundai has shown how favor for a Brand in the market can change quickly with the success of its Hyundai Elantra. Toyota’s competitors have learnt the merits of working with fewer platforms: reduced cost, increase profitability and better management of quality. Yet Toyota’s main challenge does not come from its competitors, rather from within. Although Toyota’s challenges are internal that does not reduce the magnitude of the issues, indeed the most difficult problems to identify and solve......

Words: 3200 - Pages: 13