Toyota: The World's Largest Automobile Manufacturer

Toyota is the world’s largest automobile manufacturer by sales and production from the first quarter of 2008, they produced 241 million vehicles, replace production 225 million vehicles of GM, become the world’s largest. Its annual production capacity is about 1000 million vehicles. Toyota’s management philosophy has evolved from the company’s origins and has been reflected in the terms “Lean Manufacturing” and Just In Time Production, which it was instrumental in developing. As of 2009, Toyota officially lists approximately 70 different models sold under its namesake brand, including sedans, coupes, vans, trucks, hybrids, and crossovers. Many of these models are produced as passenger sedans, which range from the subcompact Toyota Yaris, to compact Corolla, to mid-size Camry, and full-size Avalon. Vans include the Previa/Estima, Sienna, and others. Several small cars, such as the bB and tC, are sold under the Scion brand.

The Toyota motor company of mold design and manufacturing technology is a world-class level of management and technology, it has many unique,

Toyota mold design into three processes: process design, mold design and structure design, has a clear division, respectively by special personnel in charge. Process design mainly complete process sketches, DL diagram design, detail design project, mould surface conceptions, mould design of the main creative completed by the human.

Each room is responsible only for one kind of product pieces; each person in a certain period is responsible for the same thing, even the same kind mold.

Japan’s mould manufacturing professional division is very strong, Toyota’s mould manufacturing capability is strong, but it did not do all the moulds by itself. For example, complete all parts stamping process and mould vehicle coordinate by his own charge, however, in the mold design and manufacturing he only do body internal and external covering parts, floor and beams thing are all designated factory outsourcing.

The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, which comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic “Lean manufacturing”

Strategy

The order winners factors of TOYOTA are high quality and low cost. Customers choose to purchase TOYOTA because of the affordable price within a short time. The order qualifying is the cars which TOYOTA produced satisfy the various needs of customer in a high quality.

According to the order winners and order qualifying of TOYOTA, the competitive advantages are quality, cost and flexibility. TOYOTA achieved these competitive advantages by applying JIT and jidoka. The tow principles are the main success factors to TOYOTA by minimizing waste. JIT pursue that TOYOTA producing only what is needed, how much is needed and when it’s needed while jidoka apply to detect any production problem immediately and the ability to stop producing when the problems are detected.

Supply chain

One of Toyota’s success factors is their lean supply chain. It comes from lean management that integrating all the necessary steps and cooperative partners together from the design of products to customers. It helps Toyota eliminate waste, using pull systems to avoid overproduction. Its main feature is to reduce inventory at the line side of the plant and throughout the supply chain.

The efficient and cost reduction method is the Toyota production system, also called Just In Time production.

JIT approach-deliveries are made on request.

First, Toyota forecasted the market demand and formulated various models of production plan. Once the inventories less than a certain level, then send the delivery instructions to suppliers or third-party logistics. Local system supplier or third-party logistics will replenishment immediately when received delivery orders.

In order to ensure JIT production system, Toyota always chooses suppliers discreetly and all suppliers cannot too far away from their factory. Besides, Toyota emphasizes on the relationship with suppliers through increasing delivery frequency, reducing inventory, and accommodating the five-day car.

Capacity planning

Managing capacity is one of the most important key elements targeted on the maximum possible output in a given time. There are two major components for strategic managing capacity, capacity planning and capacity control. Capacity management is a discipline which is required for sizing, planning, analysing and optimising capacity targeting on the customers satisfy requirements in a planned method and on a reasonable cost.

Heavy product car manufacturing companies such as Toyota are using various strategies on achieving the maximum product output. Toyota manufacturing company is focused on three sections.

The first one is, high qualified managers that they have a direct “way” of communication with the employees, solving internal operation problems with more efficiency. Second, is an improved manufacturing factory technology targeted on the efficiency, product speed and the quality satisfying the customer’s demands on a low cost. And the last one and not least is the work place atmosphere and the employee higher skill levels increasing the effectiveness, and the operational speed aiming on the maximum possible output.

HR

Motivation is the activation of goal-oriented behavior. In theory motivation can give incentive, reason, interest or enthusiasm that reason into certain behaviour or a specific act. Toyota manufacturing industry workforce motivation is based on the group/team work incentives. It is proved that inside the Toyotas “work environment” the best way to increase efficiency through motivations, is the group incentives rather the individual incentives according to the Toyota Company. Toyota culture is based into a two simple thinks, continuous improvement and respect for the people. Moreover Toyotas production system is based on problem solving process, upgrade its own people (employees/employers), management decisions on a long term basis and continues problem solutions which leads the company on a higher product manufacturing levels.

Innovation

Innovation which comes from the word invention, is the procedure of renewing (service or product) something that is already existed or not. Innovations are usually involves applications such as imagination, initiative, different way of thinking and information. Public Car Manufacturing Companies such as Toyota are mainly focused on innovation products, so they can approach the customers needs/persuasions. Toyota is one of the major companies that focus on hybrid technology and hybrid plug in technology. They can be consider as the “key innovative ideas”. Hybrid electric vehicle (HEV) technology which firstly used from Toyota aiming on the better vehicle performance with less fuel consumption. Plug in hybrid technology (PHEV) is another innovative design from Toyota using ion-lithium battery. PHEV technology can lower the environmental impact.

Toyota is the first Car manufacturing company which introduced this hybrid technology in the public market, leading the way. Hybrid technology is the “technology of the future”, meaning the higher manufacturing skills/levels, higher product profits.