Toyota : Looking Far Into the Future

Toyota Motor Manufacturing Canada (TMMC) leadership made a planned decision to establish its first Toyota operation outside Japan to make a Lexus model in North America. It decided on the fast-selling RX330 sports

TOYOTA PRODUCTION SYSTEM (TPS) The TPS model depends on its Human Infrastructure. The entire model is base on its PEOPLE & TEAMWORK being successful in doing their job and there buy in to the Key Elements of the TPS culture, which are as follows;  Selection  Ringi decision making  Common Goals  Cross-Trained TPS emphasize the point of its human infrastructure as a “COMMON GOAL” for all personnel in the corporation, which again is emphasize that its employees are its greatest assets as shown by the

Yet, the public perceptions may be at odds with the objective measures. In Toyota’s case, there have been indications that the quality level of the company’s products had fallen off in a span of few years. There are changes that have taken place during a period when most of the company’s close competitors, such as Fords, were producing more cost-effective and efficient automobiles. In addition, the company’s unique production approach and the emphasis on continuous improvement and learning coupled with a matrix structure are key reasons for the company’s leadership in the cat manufacturing industry. Toyota’s Production Systems (TPS) was founded in the principles of “Just-in-time. This approach has less opportunity for slack resources and focuses of the benefits of efficiency on the part of employees and reduction on waste resources (Griffin and Gregory, 5). Further, Toyota Company enacts its production system with the assistance of its human resources strategies, culture, and organizational structure. Toyota’s Production System emphasizes on learning and modesty when it comes to assessing past success and differentiated them from

Toyota believes that to make high-quality vehicles, the quality of each supplier's components plays an important role. Therefore, the original philosophy of Toyota's supply chain collaboration is to reduce long-term costs by establishing long-term partnerships with suppliers instead of traditional ones. Based on this close long-term relationship, we help suppliers to build on Toyota's ever-improving thinking and culture, import Toyota's production system (TPS) to share information and knowledge, learn and pursue improvement together. Hence, Toyota invests a lot of time, and human resources efforts in the fields of purchasing, engineering, manufacturing and management, and even evaluates the selected

Toyota began to be recognized in the 1080s for the quality of its vehicles and its responsiveness to customers

Toyota uses processes that are both implicit and explicit. Toyota’s operations are enormously flexible and responsive to customer demand. According to ASHP Foundation (2007). Many credit Toyota’s success to aspects of the Toyota Production System, established by Taïchi Ohno and Shigeo Shingo from the late 1950s through 1970 (when it gained the name). It includes aspects of Jidoka, just-in-time production, and kaizen, reducing both inventories and defects. The system is used worldwide, but is only one of the reasons for Toyota’s success. The very rigidity of the operations that makes the flexibility possible. That’s because the company’s operations can be seen as a continuous series of controlled tests.

2.2. In what ways can the Toyota Production system be seen as rare and difficult to imitate?

Another reason Toyota gained a significant advantage was also meeting another point of Deming’s 14 points which was 5. Improve constantly and forever the systems of production and services this was evident in Toyotas production system with adopting new production procedures through in-house development with developing the ‘lean manufacturing system’ which focused on more efficient working with focusing on the best quality, lowest cost and shortest lead time (institute, 2000b) this was achieved through eliminating waste. Toyota was able achieve this new line of production management with two concepts just in time management which focused on delivery inputs to Toyotas operation facilities just in time to be used which meant Toyota was successfully able to cut costs with storage or raw materials being waiting to be used (institute, 2000b) which allowed Toyota to meet one of the Lean manufacturing criteria of lowest cost, and jidoka was concept created on automatic looms which stopped the machine when the thread broke which maintained quality within the product this was implemented

The resources and capabilities possessed by Toyota can be considered to be the building blocks for the development of Toyota’s ability to obtain and maintain competitive advantage. At a functional

b) Location redesign - Toyota created an integrated, flexible, global manufacturing system. They redesign the plants around the world. Plants from Indonesia and Argentina will be designed both customize car for local market and to shift production quickly satisfy any surges

Toyota is a world leading automobile manufacturer, headquartered in Japan, but selling its vehicles throughout the entire world. The company is a notable success story within the business community due to its strategy of global expansion. As the established leaders of the American automobile industry failed to adapt their offer to the changing needs of their customers, Toyota proved able to adapt its production to the new needs, creating small size and fuel efficient engines. This situation has increased the market share of the Japanese cars in the American and global market place.

At a time when western car manufactures, like Ford and General Motors, where using mass production and economies of scale manufacturing methods, Toyota faced very different business conditions. Toyota 's market was very small and diverse, leaving the organization to

As part of Toyota Global, Toyota Australia inherited legendary Toyota Production System (TPS). TPS was created by the founder of Toyota Motor Corporation as ‘a set of principles that have been proven in day-to-day practice over many years’ (Toyota Australia n.d.)

main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM). However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003.

The operating environment that the company has to operate in has also become more intense. The level of competition has increased while the global economy experienced a significant downturn. It is likely that Toyota will lose some market share in the developed markets. However, the company can work to offset these in the developing nations. This also supports a more regional strategy in the developing world. Most of the company's product mix that is marketed to developed markets is simply too expensive for consumers in the developing world. Therefore it is necessary for Toyota to continue to customizing their operations to meet the consumers' needs in these quickly growing markets.