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Japan &Korea Trip Presentation:Toyota

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

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Japan &Korea Trip Presentation:Toyota

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  1. Japan / Korea Trip Presentation:Toyota Aaron Fyke Yuki Wada Gary Mi Grace Webber Tony Palumbo

  2. 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 • Toyota’s strategy • Our questions for Toyota

  3. 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

  4. 1998 Production Comparison Chart

  5. Global auto industry trends • Overcapacity • Economic downturn • Shifting consumer demands • European trade barrier reductions

  6. Company History • Established in 1937 out of Sakichi Toyoda’s 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 >10M units

  7. Production History

  8. 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.)

  9. 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.

  10. 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

  11. 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

  12. Toyota’s 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

  13. 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

  14. Japanese auto industry history • From follower to leader • From domestic producer to exporter • Interventionist government

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