PRESENTERS

Background

• Toyota Motor Company was founded in 1937 by the Toyoda family.

• Business was relatively unsuccessful until Fiji Toyoda introduced the method of
lean production after studying Ford’s Rouge plant in Detroit in 1950.
• This lean production method became known as the Toyota Production System.
• The production executive, Taiichi Ohno, successfully helped Toyoda improve his
company using this new production method and mode of thinking.
 FRAMEWORK FOR MANAGEMENT

Change Management as a Part of Toyota Production System

Cooperation with Suppliers as a Part of Toyota Production System

 Long-Term Philosophy

 Base your management decisions on a long-term philosophy, even at the

expense of short-term financial goals.
The Right Process Will Produce the Right Results

 Create a continuous process flow to bring problems to the surface.

 Use "pull" systems to avoid overproduction.

 Level out the workload (heijunka). (Work like the tortoise, not the hare).

 Continued…
 Build a culture of stopping to fix problems, to get quality right the first
time.

 Standardized tasks and processes are the foundation for continuous

improvement and employee empowerment.

 Use visual control so no problems are hidden.

 Add Value to the Organization by Developing
Your People
 Grow leaders who thoroughly understand the work, live the philosophy,
and teach it to others.

 Develop exceptional people and teams who follow your company's

philosophy.

 Respect your extended network of partners and suppliers by challenging

them and helping them improve.
 Continuously Solving Root Problems Drives
Organizational Learning
 Go and see for yourself to thoroughly understand the situation (
Genchi Genbutsu).

 Make decisions slowly by consensus, thoroughly considering all options;

implement decisions rapidly (nemawashi).

 Become a learning organization through relentless reflection (hansei) and

continuous improvement (kaizen).
 TOYOTA INDIA
PLANNING AND STRATEGY
 Automobile Sector
 Technological Up-gradation
 HR management
 MAJOR CORPORATE STRATEGY
 Global Vision 2010
 Strategy In India
 Innovation Strategy (Managing Innovation)
 CCC21
 Objectives

 Kaizen
 Genchi Genbutsu
 Respect
 Team Work
 Challenge
 Toyota's Global Vision 2010

 Adopted in 1992, Revised in 2000

 Toyota's Corporate Vision:
 Kind to Earth- Recycle oriented
 Comfort of Life- Age of ITS
 Excitement for world-Development
 Respect for all people.- Mature society
 Zeronise and Maximise

 Reducing harmful effects of automobiles on people and environment

 Maximize: Toyota's goal of Providing ever great comforts.
 PLANNING

 Toyota Production System

 Supplier Management of Toyota
 Hallmark: Openness and Transparency
 Organizational Structure

 Multi-regional lean enterprise

 Primarily network structure

 Network of suppliers
 Network of dealers/distributors

 Frequent interaction between all levels of the organization

 Principle of Organization followed in Toyota

 Consideration of objectives
 Division of work and specialization
 Separation of line and staff
 Chain of command
 Unity of command
 Exceptional matters
 Span of supervision.
Organizational
Structure: Toyota
Manufacturing UK

Vertical structure
Tall structure
ORGANISE TO BALANCE FUNCTIONAL EXPERTISE AND CROSS FUNCTIONAL INTEGRATION
 STAFFING
The Staffing function of management pertains to Recruitment, Selection,
Training, Development, Appraisal, and Remuneration of personnel.

RECRUITMENT

Recruitment is the Process of searching the candidates for employment

and stimulating them to apply for jobs in the organization.

 Toyota focuses its minority recruitment at both the college graduate and
undergraduate levels.
 Their recruiting process includes attending campus career fairs, corporate
presentations and on-campus interviews.
 They also rely on extensive network of professional partnerships to help
identify qualified candidates for job opportunities and internships
throughout their company.
 SOURCES OF RECRUITMENT

INTERNAL SOURCES EXTERNAL SOURCES

 Transfer
 Direct recruitment
 Promotion
 Unsolicited applicants
 Advertisements
 Employment agencies
 Educational institutes
 Labour contractors
 Recommendations
SELECTION
The process of selection leads to employment of persons having the ability and
qualifications to perform the jobs which have fallen vacant in an organization

Selection Process In TOYOTA

1.Online Application
2.Application Receipt and Review
3.Online test
4.Online Assessment
5.First Interview, Presentation and tour
6.Final Interview
7.Conditional offer
8.Medical examination
9.References
10.Unconditional offer
TRAINING AND DEVELOPMENT
According to Flippo, “ Training is the act of increasing the knowledge and skills of an
employee for doing a particular job”.

Types of Training:

Induction or Orientation Training

Refresher Training
Apprenticeship Training
Internship Training

Toyota places great emphasis on ‘learning by doing’.

Their on the job training is structured and thorough.
Their on the job training is also supplemented by off the job courses designed to
increase the skills and knowledge that allows the employees to perform there role
effectively.
METHODS OF TRAINING :

1.On The Job Training

2.Vestibule Training
3.Special Courses or class room training

MANAGEMENGT DEVELOPMENT:

Management Development is a continuous process of learning and growth

designed to bring behavioral change among the executives.

Methods of Management Development:

On the job
Coaching and understudy
Job rotation
Special projects
Committee assignments
Off the job:

Special courses
Role playing
Case study
Conference
Multiple management
Management games
Sensitivity training

A Toyota Business Partnering Group is a volunteer group of associates with a

common interest, whose mission is to assist in the career development of its
members, contribute to the company's business objectives, and support Toyota's
goal to leverage diversity and build inclusion.
Typical activities of these groups include mentoring programs, networking events
and community outreach efforts.
Business Partnering Group participants benefit from encouragement, professional
development and fellowship as members of:
African American Collaborative (AAC)
Diversity in Motion (DIM)
JOB EVALUATION AND PERFORMANCE APPRAISAL

Job evaluation is a practice which seeks to provide a degree of objectivity in measuring

the comparative value of jobs within an organization and among organization.

Methods of Job Evaluation

1.Skill-Mental and manual

2.Experience
3.Efforts and initiative
4.Responsibility to be undertaken
5.Working environment
6.Supervision required

Performance Appraisal:
Performance appraisal or merit rating means systematic evaluation of the
personality and performance of each employee by his supervisor or some other
person trained in the techniques of merit rating.
SALARY AND BENEFITS PROVIDED BY TOYOTA AS PERFORMANCE APPRAISAL
TECHNIQUES

Basic Pay Increase 25 days paid annual holiday (+bank holidays)

Pension Company sickness benefit

Life assurance Free work wear

Private healthcare Subsidized restaurants

Attractive car schemes Workplace nursery

Paid overtime Relocation assistance

TOYOTA PRODUCTION SYSTEM
High Quality and Low Cost

27
TOYOTA PRODUCTION SYSTEM
 Historical View
 Performance Measures
 Elements of TPS
 Six Eras Manufacturing Practices
Historical development of Production system
COST V/S DEFECTS
Elements of TPS
 Product Synchronization
 Sequence of Events
 Operational Cycle Time
 Total Product Cycle Time
 Kanban
Six Eras of Manufacturing
 Customer Service
 Internal Efficiency
 Technology and process
 Systematization
 pioneering
THANK YOU