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TOYOTA

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by

Michele Da Re

on 5 September 2014

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Transcript of TOYOTA

TODAY
TOMORROW
TOYOTA
Quality through innovation
Satisfaction through Quality
Company
Background
1933
1937
1949
1950
1968
1973
1975
1989
1997
1999
2008
spin-off from Toyoda
Automatic Loom Works
Toyota Motor Company
Kiichiro Toyoda
Quotation at Tokyo Stock Exchange
Eiji Toyoda
Shigeo Shingo
Taiichi Ohno
Kanban System
Just In Time
Lean Manufacturing
Oil Crisis
TPS
Quotation at London and
New York Stock Exchange
Toyota surpassed GM in sales
Company Numbers
Industry
Operation
Products
Production Level
Employees
Automotive
Commercial Vehicles
Robotics
Motorcycles
Engines
Over 170/204 countries worldwide
Toyota
Lexus
Scion
Daihatsu
Hino Motors
9.909.440 Vehicles per year
331.876
Financial Data
Revenues
Profit
Assets
Equity
166,062 billion €

96,134 billion €
724,113 million €
266,945 billion €
Toyota Is one of the leading automobile manufacturers in the world.
It has a high reputation for its methods of continuous self-improvement.
Toyota’s products are known for their quality and reliability along with the low price.

Toyota Production System
An integrated approach to production which manages equipment, materials, and people in the most efficient manner while ensuring a healthy and safe work environment

Just In Time (JIT)
“The right products in the right quantity and at right time”

Pull system of production:
actual orders provide a signal for when a product should be manufactured

Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time

This system offers:
A smooth, continuous and optimized workflow, with carefully planned and measured work-cycle times and on-demand movement of goods

Reduces the cost of wasted time, materials and capacity.

A scheduling system for maintaining a certain inventory level and a better management (usually smaller) at the different working stations
When the inventory drops under a certain level, a signal is sent to the previous working station

Kanban System
A visual process management system that tells what to produce, when to produce it, and how much to produce.
Schedulling system for maintaining inventory

Communication between different stations

LOWER COSTS

GREATER EFFICIENCY

Decreases waste

Minimum inventory level

Jidoka
Automation with a human touch:

If a defective part or equipment malfunction is discovered, the machine concerned AUTOMATICALLY STOPS AND THE ANDON SIGNAL IS TRIGGERED

Operators stop work and correct the problem

The alerts may be logged to a database so that they can be studied as part of Kaizen


Daily improvements
A machine detects a problem and reports it
A situation deviates from the normal workflow
The line is stopped
Manager/Supervisor removes cause of the problem
Improvements incorporated into the standard workflow
Good products can be produced
5S approach
SEIRI
Simplification
SEITON
Orderliness
SEISO
Cleanliness
SEIKETSU
Standardization
SHITSUKE
Self Discipline
QUALITY
Set of rules for production organization
Lean Manufacturing
Minimizing waste
Human Resources
Quality Management
Recognized as strength
Training
Coaching
Mentoring

Employees as key of success
Toyota Way
Culture of learning at Toyota
Continuous Improvement
Respect for people
Challenge
Kaizen
Genchi
Genbutsu
Respect
Teamwork
Do the best to build mutual trust
Maximize team and individual performance
Giving employees a long term vision
Improve business operations
Go and See
Actions between Toyota - Employees
Improve Quality & Productivity
Quality Circle Teams
Helps the company to solve some problems.

Analytical Problem Solving
Software used a question-based model.

Ishikawa Diagram
Toyota Products
Recall
Impacts on Performances
Net Profit decrease:
in 2009 the loss was of $4.4 billions;
In 2010 the recalls represent a loss of $2 billions;
Lawsuit – insurance companies
Impacts on Brand Image
Impacts on Sales
Impacts on Used Vehicles Market
Impacts on Stock Exchange
BIG COMPANY DISEASE
Too Fast and Too Much
Quantity vs Quality
Productivity: Lean versus Quality management
High hiring rate
Faster production methods + incentives

More time to implement quality policies and tools to adapt to the growth
HR: phased hiring process to ensure training of employees in the use of TQM
Back to the roots: focus on TPS lean versus quality

Slow down expansion:
SCM USA
Production in new countries
Manufacturing versus assembling parts => Reliance of Toyota on its suppliers
Different values & organizational principles: Ford production system versus TPS
Price versus Quality
JIT versus quality/safety

TQM, a value chain is as strong as its weakest link/TPS implementation

Strict control of Suppliers:
AMPLIFYING FACTORS
A great tree attracts the wind

Customers expectations were too high

Increasingly complex car engineering and related software

Car engineering and related software became more complicated
Standardization Of Components: Automobile platform
Does not mean that standardization will lead to reduce quality

Viral spread of recalls
Extra weeks for new-car development schedules

Central lead Management

CEO unavailable
No transparency – No information
To long time for recall
Denial of the problem: Gremlins

Communication measures quality
Best Practices
Risk Management
Early Warning
Communicate
Solve
Improve customer feedback to increase the reaction time of the organization

After product recall total new car launch with market campaign (Mercedes)

Toyota Way with a face
Toyota Advanced Quality Information Center: database

Management function for quality: safety managers +quality circles : bottom-up approach/detection

Lowered its bar for effecting recalls

Customer First Activity Promotion Committee

Swift Market Analysis Response Teams (already Japan, but not in other countries)

Sustained Competitive Advantage
VRIO
Quality as a sustained competitive advantage (VRIO)
“A best price is important, but excelling in quality is even more important. Price competition has it limits, but in the area of quality: there is always room for improvement.”

TOYOTA GLOBAL
VISION
“We want Toyota to be a company that costumers choose and brings a smile to every customer who chooses it.”

Toyota Visionary Management
Toyota’s Medium- to Long-Term Growth Initiatives
Joint ventures with other companies
New car making policy aimed at building better cars
Strengthening supply chains to minimized procurements risk
Reforming Their Monozokuri structure
Increase in the share of their global sales made up by emerging markets


Emerging Markets

“Toyota’s basic philosophy on operations in emerging markets is to be contributive to the development and welfare of the country.”

Producing in Japan and exporting
Efficient global production and supply

Producing in regions where demand exists
Their overseas business evolved from
Supply Chain - Keiretsu
A keiretsu is a set of Companies with interlocking Business relationships and Shareholdings

The member companies own small portions of the shares in each other's companies, centered on a core bank

This system helps to insulate each company from stock market fluctuations and takeover attempts

It is a key element of the automotive industry in Japan


Did you have a similar experience with your car?
In your opinion are Toyota´s values and production principles influence by japanese culture?
1390 Maxime Buyck
1436 Benedita Calheiros Pinto
1486 Michele Da Re
1458 Dario da Silva dos Santos
1573 Ana Mafalda Dunoes de Albuquerque
1699 Teresa Maria Sousa de Macedo Galiano Tavares
1849 Valter Pedro da Costa Ponte Gomes

Group 3
2012
Supply Shortages in 2011
“Toyota overcame these crises through unified efforts with its group companies, suppliers, and dealers, all engaging in a variety of efforts to restore operations so as to achieve even more prompt delivery of vehicles to customers.”

Japan Earthquake:
Damage in Tohoku and other regions affected many Toyota Suppliers
Decrease in outputs of about 150 thousand vehicles

Floods in Thailand
Affected Toyota Suppliers
Decrease in output of about 240 thousand vehicles

Source:http://www.toyota-global.com

Do you think that Toyota strategy to deal with the recall issue was the right one?

What could be done differently?
Full transcript