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Toyota Lanka

A Presentation for Management of Information Systems Module

Shafraz Rahim

on 16 February 2013

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Transcript of Toyota Lanka

TOYOTA Lanka Presentatiom TOYOTA GLOBAL Established in 1937, August 28
Current CEO – Akio Toyoda
Headquartes – Toyota, Aichi, Japan
Toyota Today employees 325,905
Facilitates 33 regions worldwide, selling 6 – 7M cars a year TOYOTA LANKA Main branch is at Wattala.
Branches at Panchikawatte, Kandy, Galle, Nugegoda, Gampaha, Kalutara, Anuradhapura, Ratmalana and Negombo
Toyota Lanka was established in 1995 as a subsidiary of Toyota Tsusho Corporation, Japan.
With 3-S concept which is denoted by Sales, Services and Spare Parts under one roof TOYOTA LANKA VISION To be the best in customer and employee satisfaction
Going beyond automobile integrated services, they will support a “better, safer driving experience”
Toyota says that they are integrating people, processes and technology to enhance their relationship with customers. TOYOTA GLOBAL VISION SWOT Analysis
Kanban System - Scheduling system for JIT and Lean (JIT and lean manufacturing has reduced waste/cost so can give for lower price)
Organizing suppliers (Main factor of Kanban system is suppliers, they should maintain a better relationship….)
Loyalty – (Respect for hierarchical authority, and respect for employees has made quicker response for decisions)
Continuous Improvement – Products, services (The toyota way itself contain this concept)
Toyota Production System
Use of Pricipel 8 ("Businesses should undertake initiatives to promote greater environmental responsibility.")
Toyota way for Human resources Management
Diversified range of vehicles
Large outlet chain Strengths Weaknesses Just in Time system - Processes are interdependent. If a supplier messes up,the production will be on halt. Unions,Strikes, Product Malfunctions are some other considerable factors.
JIT causes Environmental pollution
Lower customer query response and support
Lower understanding of product by dealers
More concentration is on Sales
The concepts used at Japan will not be used at other countries
Relatively Rigid Cooperate Culture
Hierarchy of Seniority
Sales Regions, low local authority
Supply Chain management (Recall was due to bad parts prescribed by Suppliers) Opportunities Making Environmentally Friendly Automobiles. Hybrids which is a solution for high oil rising
Intelligent Cars
Highly Safely Vehicles
Targeting 3.5 Billion Youth Market
New distribution channels across the country and across the world. Threats Increase price of raw materials (Rubber , steel) and fuel
New Market entrance from china and South Korea
Economic downturns of Pacific, US and Europe
Tremendous Rivalry between competitors
Businesses restricting business travel (teleconferencing)
Other forms of cheaper transportation methods
Vehicle recall in 2009 and 2011 was a threat to customer satisfaction and their reputation
Toyota Way is limited to Production plans (Japan and US) PEST Analysis Political Rise of Tax rates to 20% for imported motor vehicle and spare parts- Toyota original spare parts are imported from Japan.
Fuel charges in Sri Lanka have risen from past couple of years, therefore it is an adverse effect on automobile industry.
 The prevailing government has a stability with 2/3 power of vote Economical Rise of average interest rates to 15.02%(for Bank loans can discourage people to borrow and buy vehicles
Fluctuating exchange rates do not support the company grow or be stable in the market.
Sri lankan mix economy
Increase of inflation rate to 9.1% September 2012 has affected people purchasing behavior Socio- Cultural Consumer purchasing pattern towards vehicles and public transportation has increased even though the economy has gone down. Technological Research funding has developed to a certain extend even though the amounts are low
Low transferring of new technology and knowledge is very slow due to the economy and less expertise to handle them.
Maturity of technology is low
Online payments, customer specification, emerging technology trends(ebay..etc) use internet, and systems have increased.
Student Engagement for Technology has increased Porters 5 Forces New Entrance Low
Automobile industry needs a larger capital to enter, to maintain
Some automobile companies constantly battle in bankruptcy
Companies like Toyota, Ford, GM discourage new entrance
Economies of Scale of Toyota using Lean manufacturing has made reduced production costs
High Exit barriers in automobile industry
Many new competitive products come to Sri lanka from China,India and South Korea. They try to gain customers by using various techniques.
eg:-Mahindra & Mahindra sponse to the SLPL Competitors Rivalry Toyota narrow the sales gap between GM and Ford in USA
Industry competitive structure – JIT and lean has reduced production cost
Attractive prices for same like products
Increase of competitor portfolios Buyers Bargaining Power Buyers have a bargaining power
Toyota keeps its profits and lower production costs
Buyers power increases when it comes to hybrid vehicles as only Toyota and Honda provide hybrid vehicles Bargaining Power of Suppliers In general automotive industry suppliers have lower bargaining power
Toyota maintains a really good relationship between suppliers Substitute Products In means of transportation people tend to use public transportation...etc
Lower Switching costs
Brand Loyalty (Safety, Lower costs, Hybrid Cars) Strategic Thrusts Toyota is the leader in Research and Development in Automobile Industry. They have adhered, Innovation, Cost and Time Product Innovation Cost efficient vehicles(Toyota aqua – 40km for 1liter)
Camry Commute mobile app (Redeemable points for miles travelled)
Electronic, Plugin Hybrid and Hybrid Synergy vehicles
Entune Mobile App Process Innovation Lean Production
Smart Grid
Toyota Production System Cost Cost Reduction through Just in Time method and Lean Production
Total Quality Management
Economies of Scale
Recycling and reusing and sharing in order to reduce cost but NOT the quality. Time Dream car contest
100 cars for good
Toyota forest- environmental friendly project
Toyota Prius –trend of green lovers Information Systems in Toyota Lanka production and engineering : is a KWS
Vehicle resource management System
(This is a database system information
including spare parts,imported vehicle
details )
Finance accounting system (General ledger system,Accounts Receivable System,Account Payable System,Budgeting System,Fund Management System)
Customer department: TPS, Customer information system
HRM System Recommendations More Decentralization of the power, respond faster for local changes
Better Customer Service
Improve TQM and better controls of supplier
Training for overseas Toyota employees and dealers
Have regional representatives from the company and hold conferences annually and asses improvements
Manufacturing of Quality automobiles not only confined to Japan.
Revise Supply Chain Management (aggressive cost cutting will lead to lower quality)
Follow up with Customer complaints atleast after 6 months
Inspect incoming parts prior to assembly Update contracts with global manufacturers
Hybrid Station establishment in Sri Lanka
Thank You KSD Transport Management System Freight Forwarding System Order Management System Customs Handling System
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