Japan / Korea Trip Presentation: Toyota

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Japan / Korea Trip PresentationToyota

• Aaron Fyke Yuki Wada
• Gary Mi Grace Webber
• Tony Palumbo

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Agenda

• Headline facts Toyota
• Global auto industry trends
• Japanese auto industry history
• Toyota company background
• Company history
• Production history
• Business segments
• The Toyota Production System
• Toyotas strategy
• Our questions for Toyota

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Headline Facts Toyota

• Toyota has annual sales of 120 Billion
• Produces 5.5 million vehicles per year
• From 56 manufacturing plants across6 continents
• Employs 200,000 people
• 3rd largest automotive manufacturer

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1998 Production Comparison Chart
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Global auto industry trends

• Overcapacity
• Economic downturn
• Shifting consumer demands
• European trade barrier reductions

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Company History

• Established in 1937 out of Sakichi Toyodas
  weaving machine company
• Launched first car (SA Model) in 1947
• Toyota Production System formed in 1950 based
  on Just-In-Time principle
• First global expansion in 1959 at Brazil
• In 1972, cumulative production gt10M units

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Production History
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Business segments

• Automotive
• Design, manufacture and sales of passenger cars,
  recreational vehicles, SUVs and related parts
• Financial services
• Provisions of loans to car buyers and car
  dealers
• Others
• Industrial vehicles (forklifts, etc.)

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The Toyota Production System

• Revolutionized manufacturing industry
• At its core is lean
• a relentless drive to improve efficiency and
  eliminate waste
• Beginnings of TPS were born out of necessity due
  to lack of resources in post-war Japan.

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Toyota Production SystemKey Main Concepts

• SMED
• Single Minute Exchange of Dies
• Promoted flexibility of production runs
• JIT
• Just In Time manufacturing
• Small batches which reduced inventory costs,
  tightened relationship with suppliers and
  improved quality control

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Toyota Production SystemKey Main Concepts

• 5 Whys Quality
• Asking Why? 5 times to locate source of
  problems
• Stopping the production line whenever there are
  quality problems to ensure they are not repeated
• Low cost supplier
• Long term supplier relationships

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Toyotas Strategy

• Increase competitive strength through advanced
  technology
• Environmental technology
• fuel consumption, emission, recoverability
• Hybrid vehicles and next generation fuel cells
• Cost-reduction efforts
• discontinuation, integration of older models
• Increased emphasis on financial services and
  information communication system

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Our questions for Toyota

• Current competitive landscape
• Local and global competition (Korea,
  Daimler-Chrysler, Ford, GM etc.)
• Future of automobiles
• Development of fuel-cells, integration of
  Internet applications and other trends

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Japanese auto industry history

• From follower to leader
• From domestic producer to exporter
• Interventionist government