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The evolution of toyota
Toyota's production system evolved over time through innovations like just-in-time manufacturing and kanban scheduling. This allowed Toyota to achieve flexible production, high quality, and increased worker productivity. While early weaknesses included high costs and lack of capital for expansion, Toyota was able to leverage opportunities like growing markets, government support, and innovative work practices. Strategies like joint ventures and adapting products to new markets helped Toyota address threats from competitors and market saturation.
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The evolution of toyota
- 1. The evolution ofTOYOTA Production System
- 2. HISTORY OF THECOMPANY
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- 4. GLOBAL 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.
- 5. MISIO N Offerour customers the prestigious car brand Toyota. Based on quality delivery, after-sales tracking and quality service at reasonable prices, to meet customer needs with technological support and quality, while achieving a return for our shareholders
- 6. KEY QUESTION How the revolutionary production system developed at Toyota during the quarter of a century after 1950 paved the way for the company’s current success?
- 7. FLIPPING AND SKIMMING Toyota: The Autor: Charles evolution of the Number of Pages: W.L. Hill, the Toyota Production 11 University of System Washington Case’s Content: Introduction, The origins of Toyota, The evolution of the Toyota production system Distribution and customer relations, Overseas Expansion, Transplants , Operations, Product Strategy, Toyota in 2001, 2 tables
- 8. Today Toyota is the The best and original worlds third largest idea behind the founding automobile company of the Toyota motor with global production of company came from the fertile mind of toyota 5.8 million vehicles and Takichi. revenues of 108 billon In 1993 it was able to get permission to set up and automobile department with in toyota automatic loom. BEGINNING OF ENDING OF THE THE CASE CASE
- 9. GENERAL TECHNOLOGY ENVIRONMENT Demand at Capacity • It is considered the most Operational Cycle Time widely rolled-out Total Product Cycle Time environment-friendly system in the automotive industry to Line Balancing date Kabans LABELING INDUSTRY LEGAL • The industry has been successful from the day it was established. • some countries impose • There are several strong brands restriction on foreign countries to around the world so there are enter their markets in order to try High barriers of entry. to sustain the export and adopt • Growing market and changing new precautions of the consumer’s preferences. competition law. COMPETITION ECONOMICAL • GENERAL MOTORS • The innovation and lowest • FORD costs made that Toyota has • NISSAN an sustainable financial • VOLKSWAGEN situation. • AUSTIN • HONDA
- 10. PORTER ANALYSIS Bargaining power • Low. There are various types of suppliers in the vehicles industry, including the cooling system, electrical system, braking of suppliers system and fuel supply system distributed across the globe. • Medium. This mean that there are a lot of consumers but there’s Bargaining power also a lot of substitutes or competitors so if the consumer doesn’t agreed with the automobile, of buyers • Low. The entrants cannot enter to the automotive industry easily, Threat of new as automobiles are special products that require a large amount of money on the design, electronic functions, and safety issues entrants • High. The top eight auto companies have occupy large part of Rivalry among global revenues, and these automobile manufacturers strengthened the globalization and consolidation across the competitors worldwide range • Medium. There are a lot of substitutes to the automobile industry, Threat of but the automobiles have especial advantages over the substitutes that´s why the threats of substitutes is medium substitutes
- 11. • Flexible Production • Quality, durability and reliability • Strong management philosophy S • Increased worker productivity • Product strategy • Idle time of workers while the dies are changing • Long production creates Massive inventories and that had to be store. • The lack of capital to build a manufacturer of automobiles in another country. • The assemble line made that the workers had little incentive to minimize defects and if the initial machine W settings were wrong, long production runs resulted in a production of a large number of defects. • Capital expenditures in create components in- house for essential subassemblies and bodies. • Growing market • Changing customers preferences • Lower wage scales in smaller firms • Government support O • Innovative work practices • Increasing maintenance and oil costs • New labor laws • North American and Western Europe were establishing operations in Japan and Market saturation • Japanese economy was starved of capital,that made it difficult to finance new investments. T • Unknown new markets
- 12. OPPORTUNITIES THREATS TOWS 1) Growing market 1) Increasing maintenance and oil 2) Changing customers costs preferences 2) New labor laws 3) Lower wage scales in smaller 3) Competitors and Market firms saturation 4) Government support 4) Japanese economy 5) Innovative work practices 5) Unknown new markets STRENGHTS SO Strategies: ST Strategies: A) Flexible Production 5a. Apply the Kanban, a scheduling 5e. Learn about the needs of the B) Quality, durability and system that helps to determined new markets and redesigned reliability what to produce, when to several of its models based on C) Strong management produce it, and how much to feedback of consumer surveys philosophy produce, is a scheduling system and road test. D) Increased worker productivity for lean and just-in-time (JIT) E) Product strategy production. WEAKNESSES WO Strategies: WT Strategies: A) High cost of specialist 5d. Place a cord above every 3c. Joint venture with a competitor workers. workstation and instructed that provided a chance to find B) Massive inventories workers to stop the assembly out whether it could build cars. C) The lack of capital to expand line if a problem emerged that D) The assemble line could not be fixed. So the E) High cost of create workers learn to identify and components. resolve problems.
- 13. SUMMARY TOWS Apply theKanban Redesigned models according to new markets Identify and resolve problems before ending of the assemble line Joint venture with competitors
- 14. IFE-MATRIX WEIGHT RATING SCORE STRENGHTS Flexible Production 0,12 4 0,48 Quality, durability and reliability 0,12 4 0,48 Management philosophy 0,05 4 0,20 Worker productivity 0,14 3 0,42 Product strategy 0,10 4 0,40 WEAKNESSES High cost of specialist workers. 0,05 1 0,05 Massive inventories 0,05 2 0,10 Capital to expand 0,13 1 0,13 Assemble line 0,15 1 0,15 Cost of create components 0,09 2 0,18 TOTAL 100/100 2,59
- 15. EFE-MATRIX WEIGHT RATING SCORE OPPORTUNITIES Growing market 0,13 4 0,52 Changing customers 0,10 3 0,30 preferences Wage scales in smaller 0,12 2 0,24 firms Government support 0,08 2 0,16 Innovative work 0,09 4 0,36 practices THREATS Increasing maintenance and oil 0,07 3 0,21 costs New labor laws 0,05 3 0,15 Competitors and 0,12 4 0,48 market saturation Japanese economy 0,12 2 0,24 Unknown new markets 0,12 3 0,36 TOTAL 100/100 3,02
- 16. SUMMARY IFE – EFE The Internal – External Matrix shows that Toyota is a strong company in the automobile industry and the analysis recommended that Toyota should keep growing and building to reach the Vision. The Toyota Company should take advantage of its efficient production system, innovation, brand internationally known and the growing market situation
- 17. SPACE-MATRIX Internal Strategic Position External Strategic Position Y ENVIRONMENTAL (ES) FINANCIAL (FS) -1 Best, -6 Worst +6 best, +1 worst (-2) Demand Variability (+6) Work Strategy (-4) Competitive pressure (+4) Market Share (-3) Competition Price (+3) Capital to expand (-3) Barriers to entry (+5) Total Revenue (-1) Growing demand (+3) Export Sales Avg. = -2.6 Avg. = 4.2 X COMPETITIVE (CA) INDUSTRY (IS) -1 best, -6 worst +6 best, +1 worst (-3) Low Price (+6) Growth potential (-2) Variety (+6) Profit potential (-2) Control over supplier (+2) Ease of entry (-1) Productivity (+5) Productivity (-1) Product Quality (+6) Resource Utilization Avg. = -1.8 Avg. = 5
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- 19. SUMMARY SPACE Toyota ishas a strong competitive position in the market with rapid growth. It needs to use its internal strengths to develop a market penetration and market development strategy. This can include product development, integration with other companies and acquisition of competitors.
- 20. ALTERNATIVES ALTERNATIVE PROS CONS Kanban system Determined what to Disruptions with workers produce, when to Cost of capacitating produce it, and how much to produce Joint venture with Facilities to expand to Trust Issues General Motors America and build quality cars. Deal with American Union Redesigned models Successful enter to new Additional invest in according to new markets technology markets Increase revenues High cost of market research
- 21. RECOMMENDATION Toyota hasto keep the same innovation, productivity and commitment level as they did at the beginning, the Toyota model of production has been globally recognized because the strategies that had applied are correct and it success and utility taking advantage of all their recourses and with a low general cost. The vision is too ambitious and the people who work in TOYOTA believe in it, that’s why they work so hard to reach it.