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TOYOTABy Abhilash Alex

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Company Background

Car Industry Trends

Toyota Challenges & Strategies

Our Questions for Toyota

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Company BackgroundCompany Background

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Production: ~7.2 million Units/Yr.

56manufacturing plants in 6 continents 1st largest automotive manufacturer in the

global market

Headline Facts: ToyotaHeadline Facts: Toyota

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Established in 1937 out of Sakichi Toyodasweaving machine company

Launched first car (SA Model) in 1947

Toyota Production System formed in 1950based on Just-In-Time principle

Overseas production starts in 1959 (Brazil)

In 1972, cumulative production >10M units

In 2002, entry in the Formula 1 circuit

Company HistoryCompany History

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Automotive [90.0% Sales]

Design, manufacture and sales ofpassenger cars,

recreational vehicles, SUVs and related parts

Financial Services [4.5% Sales] Provisions of loans to car buyers and car dealers

Others [5.5% Sales]

Industrial vehicles (forklifts, etc.)

Pre-fabricated housing

Business SegmentsBusiness Segments -- Low DiversificationLow Diversification

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Revolutionized manufacturing industry

At its core is leanprinciple Relentless drive to improve efficiency and

eliminate waste

Beginnings of TPS were born out ofnecessity due to lack of resources in

post-war Japan

Revolutionary Production SystemRevolutionary Production System

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Toyota Production System:Toyota Production System:

Key Main ConceptsKey Main Concepts

Just In Time manufacturing

Small batches which reduced inventory costs, tightenedrelationship with suppliers and improved quality control

Just In Time manufacturing

Small batches which reduced inventory costs, tightenedrelationship with suppliers and improved quality control

Low cost

supplier

Low cost

supplier

Asking Why?5 times to locate source ofproblems

Stopping the production line whenever there are quality

problems to ensure they are not repeated

Asking Why?5 times to locate source ofproblems

Stopping the production line whenever there are quality

problems to ensure they are not repeated

JIT JIT

5Whys

Quality

5Whys

Quality

Long term supplier relationships Long term supplier relationships

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Car Industry TrendsCar Industry Trends

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Consolidation

Push to Emerging Markets for Growth

Global Emphasis on Small-Size Vehicles

Environmentally Friendly Products

Internet as a K

ey Enabl

er of Chang

eof

AutomotiveRetailing

Car Industry TrendsCar Industry Trends

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Toyota ChallengesToyota Challenges

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Industry overcapacity

Economic downturn

Globalization

Environmental concerns

The IT revolution

Diverse and shifting consumer demand

Toyota ChallengesToyota Challenges -- SummarySummary

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Toyotas StrategyToyotas Strategy

Increase competitive strength throughadvanced technology

Promoting a global perspective

Value-driven cost reduction(CCC21program)

Expanding the value chainbecomingthe Total Mobility Services Provider

Expansion ofmodel offeringsQuality,value, and style?

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Repositioning Product Strategies

Local and International

Environment

Competitive

Situation

FirmsInternal

Situation

Customer Needs &

Price

Elasticity

Product

Strategies