COMPANY PROFILING

PREPARED BY :

BARBA, Marwel

BERJA, Ma. Christina

CANJA, Annalyn

CAYAS, Mary Joanna

ESPIRITU, Dharlyne

GERMINAL, Ron Brian

PEREZ, Leslie

SUSAYA, Juvy Ann

VALIENTE, mITCHIE

BSBA – 4A

SUBMITTED TO:

Professor De Manuel

TOYOTA

WHY TOYOTA AND NOT TOYODA?

The spelling change was made to make it easier to pronounce, symbolize a separation from the founder’s home life, and, possibly most importantly, because Toyota, which takes eight strokes to write in Japanese, is considered to be luckier than Toyoda.

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 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 Toyota, 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.

The first Toyota truck was roughly a one-ton to one and a half-ton design, conventional in nature, using (after 1936) an overhead valve six cylinder engine that appears to have a clone of the Chevrolet engine of the time.

In December 1955, Toyota was given permission by the United States military to startup up peacetime production. Toyota Motor Corporation had learned from the American War Department’s industrial training program, which worked on process improvement and employee development.

After World War II, Toyota was kept busy making trucks, but by 1947 it began making the Model SA, called the Toyopet, a name to stay with Toyota for decades albeit attached to different cars. The Toyopet was not powerful and had a low top speed- 55 mph from a 27 horsepower engine – but it was designed to be cheap, and to handle the rough roads of postwar Japan. In the five years the SA Toyopet was made, 215 were made. The SD may have been more successful; this taxi version saw 194 copies in just two years. The SF Toyopet was the first truly popular Toyota car, with a modified engine (still putting out 27 horsepower) and a taxi version. An RH model with a 48 horsepower engine came out shortly after. By 1955, Toyota was making 8,400 cars per year; by 1965, 600,000 cars per year.

In addition to all these cars, Toyota started producing a civilian truck named the Land Cruiser. Styled like Jeeps, the original Land Cruisers were, according to Schreier, based heavily on the legendary Dodge half-ton weapons carrier as well as the Bantam (predecessor of the Jeep). They used a bigger engine than the Jeep (their Chevrolet-clone six) and a size and configuration more like the Dodge weapons carrier, whose capacity it shares (one half ton).

Starting in 1955, Toyota produced its first luxury car, the Crow, powered by a four cylinder, 1.5-liter engine with a three-speed column shift, followed by the 1-liter Corona; only 700 cars per month were made in 1955, but this rose to 11,750 in 1958, and 50,000 per month in 1964.

THE STARTOF TOYOTA’S INTERNATIONAL SALES

Toyota set up a headquarters I Hollywood in 1957; the first v car registered in the United States was a 1958 Toyopet, sold in 2958; the California license plate was installed by Toyota Motor Sales (USA) president Shotaro Kamiya himself. Two vehicles were imported, the Land Cruises and Toyopet. Neither sold well; the Toyopet was withdrawn while Toyota designed a car specifically modified for the American market – a strategy which later gave us Avalon and Camry.

In 1959, the company opened its first plan 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 paces 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.

The first Americanized Toyota – the Tiara, otherwise known as Toyota Corona PT20 – came out in 1964. The six- passenger car had a 90 gross- horsepower engine (probably about 60- 70 bhp net); it could reach 90 miles per hour, and was comfortable inside. One year later, the Corona was added at under $2,000; it offered an automatic and factory air as options, very unusual in imported small cars at the time (as was the engine’s horsepower rating).

By 1967, Toyota had become well established in the United States, albeit as a niche player. The Corona Four-door sedan was seen as competing mainly against the Volkswagen Beetle, though this was hardly fair to the modern Corona, with its relatively large interior space and relatively comfortable ride. The Corona was known from its early days for its quality as well as a low price, though rust was a serious problem until the late 1970s, causing more than one Corona to simply rust in a half before it became old enough to have mechanical problems.

Toyota introduced another new car to the US in 1967; the Crown, available as a wagon or a sedan.

Toyota brought to the US the famous but rare 2000GT, which resembled a British sports car with a massive hood and nearly no cabin or trunk. The car had set 16 world speed and endurance records by 1966.

The Corolla, to e America’s favorite small car, was the first imported in 1069, two years after its first Japanese production, followed by small pickups that earned a strong reputation for reliability and durability.

MODERN TIMES

Toyota instituted a three year, 36,000 mile bumper to bumper warranty starting in 1988, the same year the first Toyota-owned American factory started producing Camry in Kentucky, to join the Corollas built in California. In 1999, Toyota Motor Corporation started listing its shares under the symbol TM on the New York Exchange.

Today, Toyota is one of the world’s largest manufacturers of automobiles in both unit sales and net sales.

MERGERS AND ACQUISITIONS

In 1966, Toyota acquired Hino, which built trucks; commercial trucks from Toyota still carry the Hino name. Hino is currently gaining in popularity in Europe, and is the sales leader for medium and heavy-duty diesel trucks in Japan.

In 1967, took control of Daihatsu (founded in 10907 as Hatsudoki Seizo Co., Ltd), but did not actually buy the whole company until 1999. Daihatsu sold cars in the US from 1988 to 1992, with their Charade and Rocky making almost no impact; when bought into the company, it made a three-wheeled car and military four-wheel-drive vehicles.

TOYOTA MOTOR CORPORATION TODAY

In April 2002, Toyota adopted the 2010 Global Vision, a vision for meeting mobility needs in a way that respects the environment and all people. Four key themes based on trends seen as developing from 200 to around 2030 are:

Toward a recycle-oriented society Toward the age of IT and ubiquities networks Toward motorization on a global scale (societies with little private transport gaining

more)

WHO RUNS TOYOTA NOW?

In 2009, Akio Toyoda took control of Toyota as President. Son of Shoichiro Toyoda, Akio Toyoda helped to get Toyota out of a Chinese joint venture gone bad and into a deal with China FAW Group.

In 2007:

Hiroshi Okuda, Chairman. Born in 1933 – about the same time as Toyota itself – Hiroshi Okuda has been a member of the Board of Toyota Motor Corporation since 1982, and has been the Chairman of the Board since 1999. Mr. Okuda was the president of Toyota from 1995 to 1999, and is also a director of KDDI Corporation. He mainly worked in Toyota’s international operations, and oversaw preparation of manufacturing plants in North America. He graduated from Hitostubashi University with a degree in business, and has a black belt in judo.

Fujio Cho, President. Born in 1937 – not long after Toyota itself – Fujio Cho helped to speed Toyota’s decision-making but cutting the number of board members in half, appointing three non-Japanese managing officers, and generally streamlining the management structure. He graduated from the University of Tokyo in 1960 and became a production specialist, mentored by none other than Taiichi Ohno. He opened the first v-owned factory in America in 1988. He is the third dan in kendo.

Some past leaders: Eiji Toyoda (president, 1967 – 1982), who kept Toyota on a low profile even as the

company rapidly expanded and dramatically increased its quality and its rust proofing capabilities

Soichiro Toyoda (president, 1982 – 1992), who spread Toyota’s manufacturing plants through the world and brought Toyota’s technology to the forefront, surpassing Honda and just about every other automaker, while increasing reliability even further.

HISTORY OF TOYOTA CITY

Toyota City sprung from Koromo Town, a thriving silkworm center in the late 1800s and early 1900s. As the demand for raw silk fell, the city declined, until in 1934 it invited the newly formed Toyota to center there. The name was changed from Koromo to Toyota in 1959. The population is now 29 times its 1930 level, at 350,000.

TOYOTA AND THE ENVIRONMENT

Toyota is fairly well known for having the best-designed hybrid-electric car, the Prius, which former Chrysler engineer Even Boberg claimed in 2004 was the only car that actually saved fuel because of its hybrid design rather than coincidental features (such as lighter weight, efficient

tires, and such). But Toyota’s commitment goes much further. Their Australian unit’s Earth Charter notes four principles:

Contribution towards a prosperous 21st century: Aim for growth that is in harmony with the environment, and to challenge achievement of zero emissions throughout all areas of business activities.

Pursuit of environmental technologies: Pursue all possible environmental technologies, developing and establishing new technologies to enable the environment and economy to coexist harmoniously.

Voluntary actions: develop a voluntary improvement plan, not only based on thorough preventative measures and compliance laws, but one that addresses environmental issues on the global, national and regional scales, and promotes continuous implementation.

Working in co-operation with society: Build close and cooperative relationships with a spectrum of individuals and organizations involved in environmental preservation including governments, local municipalities as well as with related companies and industries.

Build close and cooperative relationships with a spectrum of individuals and organisms involved in environmental preservation including governments, local municipalities as well as with related companies and industries.

Toyota has a balance scorecard which notes specific outcomes and measures of environmental action, and uses a plan-do-check-act cycle to carry them out.

WHY IS TOYOTA SUCCESSFUL? (The Toyota Production System)

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. Idoka 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 functionally, 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.

‘Respect for People’ Key Principles: Respect – we make every effort to understand each other, take responsibility and build

mutual trust Teamwork – we stimulate personal and professional growth, share development

opportunities, and maximize individual and team performance.

‘Continuous Improvement’ – Key Principles:

Challenge – long-term vision, meet challenges with courage and creativity to realize the dream

Kaizen – improve business operations continuously, always drive innovations and evolution

Genchi genbutsu – go to the source to find the facts, make correct decisions, build consensus, and achieve goals at best speed.

VISION AND MISSION

Vision

Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile. We will meet our challenging goals by engaging the talent and passion of people, who believe there is always a better way.

Mission

Toyota South Africa is dedicated and committed to:

Supplying the range of vehicles, parts, accessories and services to meet the requirements of the South African and export markets that it services

Ensuring that products are of outstanding quality, value for money and instill pride of ownership

SYMBOLISM OF THE TOYOTA LOGO

The Toyota logo consists of three ellipses, arranged to form a stylized “T.”

The outer ellipse

Essentially a circle – the symbol of completeness. Representing strength and dynamism. It is viewed from a slight perspective – to give it its elliptical shape – which is

representative of Toyota’s unique perspective on the automotive industry. The outer circle draws together various elements including family, fellowship, unity and

responsibility. It symbolizes our embrace of future challenges with the boundless potential of our

technology and our priority to create a “full-circle” experience.

The vertical ellipse

The vertical ellipse is a sign of life. It represents our customers and their importance to Toyota. We understand your needs and strive to meet them in everything we do.

The horizontal ellipse

This represents the actual product that you interact with on a day to day basis quality, workmanship, reliability and longstanding relationships that have become synonymous with the Toyota experience.

The Toyota Way is an ideal, a standard, and a guiding beacon for the people of the global Toyota organization. It expresses the values shared by all, transcending language and nationality, and finding application in every land and society. Every Toyota associate throughout the world is urged to take professional and personal responsibility for advancing the understanding and acceptance of The Toyota Way.

Know the Way, Lead the Way

Toyota South Africa has a proud past.’ Know the Way, Lead the Way’ was the theme of the Toyota World Convention in Tokyo in 2003, and has become a guiding credo for Toyota worldwide.

We must know where know where we are before we can chart the way ahead. We accept that every milestone on our journey is merely a market for the next.

Every goal we accomplish, every target we meet, is but a springboard, a platform, for even greater goals, even higher targets.

Our past successes add up to a solid foundation on which to build our future, and although we must learn from the past, we must not dwell on it.

THE VALUE OF THINGS

The five values we are constantly working to harmonize:

Quality Experience:Our never ending quest for quality improvements, components, people.

Beyond Expectation:Wide product range, cost, service levels, work to create a positive customer experience

Joy of Owning:Raising the style stakes

The next standard:Latest Toyota technology and engineering excellence showcase by Toyata`s formula 1 team. Dealership to be equipped with the intelligent tester (early detection=early resolution)

True to Society:Building a safe and clean environment. Being a good corporate citizen. Uplifting and empowering local communities. Includes training and development programmes.

Core Values Open and honest communication Customer satisfaction Social responsiveness Quality in everything we do Respect for people and property Recognition and reward for effort Teamwork Fair and equal opportunities

TOYOTA MOTOR CORPORATION

STRENGTHS

Global organization, with a strong international position in 170 countries world wide High financial strength (1997, sale turnover, $131,511 million), sales growth of 29.3 % Strong brand image based on quality, environmental friendly (greener), customize range.

Industry leader in manufacturing and production. Maximizes profit through efficient lean manufacturing approaches (e.g. Total Quality Management) and JIT (Just in Time) manufacturing and first mover in car research and development.

Excellent penetration in key markets (US, China, EMEA) and now the second largest car manufacturer in the world, surpassing Ford.

What do the 4P`s have to do with Lean?

1. PurposeWhen I think about purpose, I think about True North. What is True North? For me it’s a guiding beacon that continues to give me direction as a company and leads the company to successful thinking that fosters good leadership. An example that guide us at Toyota was – Customer First thinking, making the highest quality product, at the lowest cost, with the shortest lead time, in the safest manner, all while respecting people. This cut across all our key performance indicators as a company and it was an evolutionary statement. We never got there because if we did we raised the bar and improved.

2. PeopleWhen I think about people I think about the most important asset in your organization. It goes on to say in the Toyota Way Values book that they (your people) can determine the rise and fall of your business. If we don’t invest in our people then we are missing out on the extraordinary brainpower they have to make a difference. It is our job as leaders to develop their thinking everyday at the Gemba by asking the right questions. People are the heart and soul of Lean thinking and without their buy-in, engagement, involvement, and understanding of how it ties to purpose and alignment of their work; then it will be short term gains at best. As we all know the infamous “flavor of the month” sets in. I remember when I was promoted into management at Toyota my trainer said to me, “Tracey san, do you realize that 50% of your job now is to develop your people!” I’m here to tell you this is KEY!

3. ProcessDo you realize as human beings that our lives our concentrated around processes or routines? When you get down to it everything we do has some type of process to it. We are creatures of habit. Just to get to my blog there was a process for you to follow. To get up everyday and get ready for work you have a process. If there is an output created then there is a process involved. It is our role as a leader to document these processes and standardize them so your people understand the expectations. As Taichii Ohno says, “without a standard there can be no kaizen!” So standards are just the processes we do. I agree we may not have the same way to do them, but as a leader you must create the best known method in order to gain consensus and buy-in. Then if there is a better we improve. You do not have to manufacture anything to have processes. I can value stream

for you going to the grocery store and all the waste involved. Please understand that with a solid purpose, engaged people, and documented processes sets up beautifully to recognize the abnormality; which takes us to the last ‘P’.

4. ProblemsWhen we have the ability to recognize abnormality at a glance we are light years ahead of most organizations. I often ask question: How do you know you have a problem? I often hear, “well it happens a lot”. I can remember once saying that to my Japanese trainer. He replied,”Oh, a lot I do not understand, please explain”. This was his way of saying please do NOT make assumptions if you don’t have the facts. What is a lot? If we don’t have documented standards where we can see abnormality the it leaves us to guess guessing leads to symptoms fighting. It also tends to remove the ability to hold our people accountable for their actions. Once the abnormality is discovered then we apply PDCA (plan do check act) thinking a form of the 8 step problem solving process to eliminate the gaps. To me, problem solving is the glue that makes it all sticks together! Without the 4p’s you probably have a fire hose on your back.

WEAKNESS Japanese car manufacture – seen as a foreign importer. Production capacity. Toyota produces most of its cars in US and Japan whereas

competitors may be more strategically located worldwide to take advantage of global efficiency gains.

Some criticism has been made due to large-scale re-call made in 2005, quality issues.

OPPORTUNITIES

Innovations – first to develop commercial mass-produced hybrid gas-electric vehicles (gas and electric), e.g. Prius model. Based on advanced technologies and R&D activity. With oil prices at an all time high – this investment and widening of product portfolio fits consumers looking to alternative sources of fuels away from gas guzzling cars.

To expand more aggressively into new segments of the market. The launch of Aygo model by Toyota is intended to take market share in youth market.

To produce cars which are more fuel efficient, have greater performance and less impact on the environment.

To develop new cars which respond to social and institutional needs and wants. The development of electric cars, hybrid fuels, and components reduces the impact on the environment. Toyota’s Eco-Vehicle Assessment System (Eco-VAS) has helped in production, usage, and disposal.

Continued global expansion – especially in the emerging markets e.g. China and India, Russia, where population and demand is accelerating.

THREATS

Saturation and increased competition, intense marketing campaigns increasing competitive pressure.

Shifts in the exchange rates affecting profits and cost of raw materials. Predictions of a downturn in the economy e.g. recession, will affect car purchases

(especially new cars). As household budgets tighten – this could lead a decline in new car sales and possible rationalization of dealerships.

Changing demographics e.g. number of large families is declining. Undermining the demand for large family cars.

Changing usage – families using the car less for taking children to schools. Home deliveries.Businesses – restricting business travel (tele-conferencing). Governments encouraging alternative forms of transport-cycling and incentives to use public transport across Europe.

Rising oil prices (fuel costs) and the costs of maintaining cars. Increase in families who have chosen not to own a car, or decided to use their car less.

HOW DID TOYOTA COME UP WITH THOSE NAMES?

Corolla is a part of flowers. Camry is based on the word “kan muri”, or “crown”. Toyota produced a car called the

Crown, as well as the Corona, which is related to the word “crown”. (From Camryman’s Camry Reference page which no longer appears to be around.)

Celica is Latin for “celestial”. Cressida – was a Shakespear character (the daughter of Calchas in Troilus and Cressida)

and the name of the fourth satellite out from Uranus, named after that character. Supra is Latin for “above”. Axio (as in Corolla Axio sedans) was created from the Greek word “axia”, meaning

“things with value”. Truck names for the US are often picked to evoke images of strength – Tundra, Sequoia,

and Highlander. Land Cruiser (OK, not a recent name) suggests the vehicle can go anywhere. Some names are functional – RAV4 is a Recreational Active with four-wheel drive, and 4Runner is a four-wheel drive off-road runner.

Sienna is a color and an Italian City. Previa meant “preview” of the next style of minivan, which was rather optimistic. xA,xB,tC – xA and xB …well , the X letter is cool these days… so the range is xA, xB,

and, one would think, xC. But Volvo’s already grabbed XC for its Cross Country model so Toyota put in t, we suppose… though why not use Z or Q? Otherwise, we’d guess tC stands informally and privately for Toyota Coupe or Toyota Celica.

Lexus names stand for something – LS is Luxury Sedan, LX is Luxury SUV (X stands for SUV Toyospeak), RX is presumably (we don’t know) Regular SUV. Warren

Larocque, citing Lexus: The Relentless Pursuit, noted that ES is Executive Sedan, and IS is International Sedan. Lexus itself – Lexus export (for) US is one explanation, though Forbes said it was based on a misunderstanding of Alexis (“A Lexus”).

Engine names are codes “ThisIsStan” wrote:o The first digit indicates releases of the engines within the family. [Foe

example], the 4A motor has gone through several major revisions, from carburetion to fuel injection to having 5-valves per cylinder. The 1ZZ-FE was introduced in 1998 in the US. The 2ZZ (bore is the same dimension as the stroke… same displacement) came out in 2000.