Operations

Toyota has long been recognized as an industry leader in manufacturing and production. Three stories of its origin have been found,[where?] one that they studied Piggly-Wiggly's just-in-time distribution system, one that they followed the writings of W. Edwards Deming, and one that they were given the principles from a WWII US government training program (Training Within Industry).[citation needed] It is possible that all these, and more, are true.[vague] Regardless of the origin, the principles described by Toyota in its management philosophy, The Toyota Way, are: Challenge, Kaizen (improvement), Genchi Genbutsu (go and see), Respect, and Teamwork.
As described by external observers of Toyota, the principles of the Toyota Way are:
  1. Base your management decisions on a long-term philosophy, even at the expense of short-term goals
  2. Create continuous process flow to bring problems to the surface
  3. Use "pull" systems to avoid overproduction
  4. Level out the workload
  5. Build a culture of stopping to fix problems, to get quality right the first time
  6. Standardized tasks are the foundation for continuous improvement and employee empowerment
  7. Use visual control so no problems are hidden
  8. Use only reliable, thoroughly tested technology that serves your people and processes
  9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others
  10. Develop exceptional people and teams who follow your company’s philosophy
  11. Respect your extended network of partners and suppliers by challenging them and helping them improve
  12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu)
  13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly
  14. Become a learning organization through relentless reflection and continuous improvement

Toyota Pavilion at the Expo in Aichi
Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. It displaced GM and became the world's largest automobile maker for the year 2008. It held the title of the most profitable automobile maker (US$11 billion in 2006) along with increasing sales in, among other countries, the United States. The world headquarters of Toyota are located in its home country in Toyota, Aichi, Japan. Its subsidiary, Toyota Financial Services sells financing and participates in other lines of business. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. Toyota also owns 51% of Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures Subaru vehicles. They also acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be introducing Isuzu diesel technology into their products.
Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-electric vehicles, of which it says it has sold 2 million globally as of 2010, Advanced Parking Guidance System (automatic parking), a four-speed electronically controlled automatic with buttons for power and economy shifting, and an eight-speed automatic transmission. Toyota, and Toyota-produced Lexus and Scion automobiles, consistently rank near the top in certain quality and reliability surveys, primarily J.D. Power and Consumer Reports although they led in automobile recalls for the first time in 2009.
In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company, produced 8.54 million vehicles, about 500,000 fewer than the number produced by GM that year. Toyota has a large market share in the United States, but a small market share in Europe. Its also sells vehicles in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has significant market shares in several fast-growing Southeast Asian countries.
According to the 2008 Fortune Global 500, Toyota Motor is the fifth largest company in the world. Since the recession of 2001, it has gained market share in the United States. Toyota's market share struggles in Europe where its Lexus brand has three tenths of one percent market share, compared to nearly two percent market share as the US luxury segment leader.
In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand for Corolla and Camry sedans. The difference in performance was largely attributed to surging demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a facility in San Antonio. Toyota has experienced quality problems and was reprimanded by the government in Japan for its recall practices. Toyota currently maintains over 16% of the US market share and is listed second only to GM in terms of volume. Toyota Century Royal is the official state car of the Japanese imperial family, namely for the current Emperor of Japan.
Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast its first annual loss in 70 years. In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles.
Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.
Subscribe to: Posts (Atom)