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
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Their forecasts of customer demands are showing higher fuel efficient and other alternative energy based vehicles. A Toyota spokesman said, “Our renewable fuel strategy is simple; have the right vehicle at the right time in the right place to meet the needs of our customers. Tackling environmental challenges means apply what we know about renewable fuels across our vehicle lineup, and beyond” (Toyota.com, 2011).
TOYOTA MOTOR COMPANY OPERATIONS/QUALTY RESEARCH REPORT 6
This diagram shows the scenarios for response to environmental and energy issues. The looks of this diagram show that in the next 20 years the market orientation is going to shift even more too renewable energy in the way of more hybrid technology, plug-in hybrid technology, natural gas, and hydrogen based vehicles. Toyota’s engineering and R&D are probably already looking at even more types of renewable energy type vehicles than already mentioned to meet demand for the future. With the natural resource of oil being consumed at an all-time high throughout the world, this natural resource of oil will eventually run out in the future. The market orientation for Toyota is changing as demand changes so it is critical that Toyota aligns their process structure accordingly. Toyota uses make to stock (MTS) process which is products are immediately available, finished products are made in advance of
TMM uses TPS which is the core principle of production process of Toyota that is in built in their culture and norms. TPS has tried to cope up significant problems arises in production management in an optimum way. Like TPS focuses on cost reduction by wiping out wastage problem, for e.g wastage due to overproduction which stuck your working capital, increases handling, storage and maintenance cost. Moreover, wastage would also conceal bottleneck in the process which probably would not allow investing in right area of production, resulting excess capacity in system. Therefore, to eliminate the waste Principle of Just in
INTRODUCTION Toyota is one of the world’s best-known and most successful businesses, building cars and trucks in 27 countries for sale in more than 170 markets around the globe. Worldwide production was 9.5 million (8.5 million for Toyota and Lexus brand vehicles) in 2007, placing Toyota Motor Corporation (TMC) firmly among the world’s leading vehicle manufacturers. This result keeps it on course to achieve its ambition of becoming the world number one by the end of the decade, with a 15 per cent market share.
Toyota has developed and marketed various eco-cars that optimally match the energy situation and infrastructure of different countries and regions. While making its conventional, petroleum-fueled vehicles and hybrid vehicles even more fuel-efficient, Toyota is also promoting development of next-generation eco-cars and responding to the diversification of vehicle fuels (Toyota Global, 2015).
Toyota will have to face multiple challenges or risks in the eco-friendly development. This will be a big investment and be very costly for Toyota to acquire successful results ("Business Overview", 2011).
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
While we have done, and continue to do, our part in ensuring automobile emissions are as limited as possible, automobile manufacturers have failed to make significant strides in making their vehicles more fuel efficient. For example, during the OPEC oil crisis there was a push to make fuels more efficient to combat the limited fuel resources, this pushed the average miles per gallon of a vehicle into the twenties, where it remains nearly forty years later. Here at Royal Dutch Shell, we encourage and are willing to work with automobile manufacturers to ensure that their products continue to become increasingly fuel efficient. Additionally, the choices of consumers ultimately determine the course of action. If consumers place higher value on larger vehicles, as they continue to do, then the larger, less fuel efficient vehicles will be the
The economy in the United States continues to struggle through a very sluggish recovery. We are constantly bombarded with terms like green, alternative or renewable energy sources as ways to save money and help the environment. However, there is not an alternative energy company that comes anywhere close to the revenues of the old-fashioned oil and gas industry. The “greenest” energy-as far as money goes- continues to be the multi-billion dollar oil and gas industry. What many people don’t know is that modern technology is helping this industry become more environmentally friendly. Despite gasoline prices almost doubling in the last six years, the rise of hybrid cars and a continued push to lower emissions. Americans have not slowed down on the highway or their demand for gasoline. The United States Transportation Statistics estimates that in 2012, there were 628 motor vehicles and gas per 1,000 people. This is a business that will continue to have demand despite the strength of the economy for many reasons. Demand for gasoline in the United States is just one small part of it.
The American auto makers have already invested billions of dollars in new technology. Every year at the major automobiles shows new concept cars are unveiled as each auto maker seeks to drum up consumer interest along with domestic and international investment. The U.S. government with a stated goal of reducing the dependence on oil has called for companies to put one million electric vehicles on the road by 2015 (D.O.E 2011). General Motors and Ford have already invested in hybrids and GM’s Chevy volt is already a top selling electric car. GM has invested a lot of money in hydrogen fuel cell technology and according to CEPGI (2014) General Motors has the all-time lead in fuel patents between 2002 and 2012. According to GM News (2013) “GM’s fuel cell test fleet has accumulated nearly 3 million miles, more than any other automaker”. General Motors has also entered into deal with Honda Motor to produce newer generations of fuel cells. GM is targeting 2020 as a launch date and is happy to allow Toyota to take the lead in launching hydrogen fuel cell cars. GM’s rationale is that Toyota will spend money to advertise and debut the
As mentioned earlier, this project will mainly emphasize on the global sustainability strategies adopted and used by Toyota. The following sections and subsections will provide
“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
Toyota’s relationship with suppliers has influenced them to reduce the environmental impact of their own companies. Considering the revenue to be generated from a contract with Toyota, certain suppliers found it financially beneficial or even necessary to comply with these environmentally friendly requirements of being a Toyota supplier. Finally, these environmentally friendly initiatives set a trend for the industry now attempting to close in on the considerable advantage enjoyed by Toyota. Competitors are now attempting to develop technologies in conjunction with their own suppliers that will benefit them and the natural environment in the long term. In addition, the American government (among others) has recently raised the minimum fuel efficiency requirements of all vehicles sold in the USA , further increasing Toyota’s competitive advantage as the large majority of their vehicles already exceed those requirements. Toyota was able to utilize both their relationships of trust and their economic power to bring about a positive
Toyota is a car manufacturer established in 1937. It is a well-known worldwide company due to their persistence in making affordable cars. As one of the biggest car manufacturer in the world, there have been mass controversial environmental topics floating around. Some people perceive Toyota has significant contribution in promoting better environment. However, some people do not agree with it. In 1992, there was a significant change of their responsibility to the environments. Toyota Earth Charter was introduced regarding the policies for better environment. The vision for this charter is ‘respect for the planet’ and it aims to improve the global average fuel efficiency by 25% in 2015.
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.
Toyota has always stressed the importance of environmental care and the reliability on their safe and quality cars. Since 1992 adopted a set of Guiding Principles, focused on “providing clean and safe products