Professional Documents
Culture Documents
Presented by: Ashish Saluja (1011302) Binit Bhura (1011303) Savinder Singh Sachdev (1011309) Snehal Goyal (1011310) Varun Loyalka (1011311)
Loom Kiichiro, got permission and set up an automobile department Kiichiro produced his first vehicle in 1935 Passage of automobile manufacturing law in 1936 Set-up of automobile department as a separate department in order to attract outside customers
work O Consumer preferences not taken care of O Lack of capital for investing in mass production
force O Layoff later done but with two guarantees to the existing workforce to give them life time employment and to pay according to seniority and bonus payments
Improving Quality
O Current system useless due to
O No incentive for workers to correct errors O Enormous amount of rework for repairs O Large production of defective cars
O Tracing of defects
in containers which were emptied and sent back as a signal to make more parts O Decentralizing responsibilities O Introduction of independent suppliers into the system
Organizing Suppliers
O Initial coordination problems due to vertical
integration O Following of the vertical integration process in the initial stages O Later contracted out most components due to
O Avoid capital expenditures O Reduction of risk O Take advantage of lower wage scales
Consequences
O More labor productivity
O Less defects in cars O More product variety O At lower costs
partners Toyota Motor Sales provided information to Toyota Motor Company Establishment of a separate department for planning and market research later Importance of marketing information Initial stimulus for exporting
Expanding Internationally
O Initial overseas expansion not feasible
O Setup of U.S. subsidiary in California O But closed down the subsidiary later due
to slow sales O Learnt from failures and redesigned itself O Increase in oil prices gave a boost to Toyota O Setting-up of more overseas plants
Transplant Operations
O Set-up of New United Motor
O
O O
Manufacturing Inc., a 50/50 joint venture with General Motors in California Set-up of another plant in Georgetown Set-up of second plant in Georgetown By 2001, Toyota had four plants in North America Also many other components producing plants were set-up
of the components, Toyota had to import parts from Japan O Set-up of Toyota Supplier Support Center
Product Strategy
O Initial aim at small cars
O But later also aimed at the middle income
Toyota in 2004
O A truly international company
O The company is very much profitable O Is still a quality leader O Market leader in Japan O Still maintaining a high level of productivity O Has three most efficient plants in Japan
department in 1937 to attract outside investors O Abolition of mass production in order to attract capital from investors O Improvement of production lines made them economical O Introduction of the concept of team by making teams flexible
O
O
avoid capital expenditures Taking advantage of lower wage scales in smaller firms Low cost but high quality components from external sources Contract with the suppliers regarding price in advance Introduction of CCC21 (Saved $9 billion)
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