BUSNESS SCHOOL OF DELHI

TOYOTA PAVILION , AICHI (JAPAN)

EXECUTIVE SUMMARY
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BUSNESS SCHOOL OF DELHI

The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyo Automatic Loom Works, one of the world's leading m anufacturers of weav m achinery.

The Toyoda Automatic Loom W orks was then headed by Japan's "King of Invento Sakichi Toyoda. The patent rights to one of his m achines had been sold to Pl Brothers (UK) and provided the seed-money for the development and test-buildi of Toyota's first autom obiles.

In 1950 the com pany experienced its one and only strike. Labour and m anageme emerged from this stoppage firmly comm itted to the principles of mutual trust a dependence, and that corporate philosophy still guides our growth today.

Production system s were im proved in the late 1950s, culminating in t establishm ent of the 'Toyota Production System.' It became known as TPS in 19 but was established much earlier by Taiichi Ohno. Based on the principles of Jido Just-in-tim e and Kaizen, the system is a major factor in the reduction of inventor and defects in the plants of Toyota and its suppliers, and it underpins all o operations across the World.

Toyota launched its first small car (SA Model) in 1947. Production of vehic outside Japan began in 1959 at a small plant in Brazil, and continued with growing network of overseas plants. Toyota believes in localizing its operations provide customers with the products they need where they need them; t philosophy builds mutually beneficial long-term relationships with local suppli and helps the company fulfill its comm itments to local labour.

Over and above m anufacturing, Toyota also has a global network of design a 'Research and Developm ent' facilities, embracing the three m ajor car markets Japan, North Am erica and Europe.

In every comm unity in which the company operates, Toyota strives to be responsible corporate citizen; close relationships with people and organizations the local community are essential contributors to m utual prosperity. Across t world, Toyota participates enthusiastically in community activities ranging from t sponsorship of educational and cultural programmers to international exchan and research. Toyota Motor Corporation m only known as com Toyotaand abbreviated as TMC is a multinational autom aker headquartered in Toyota, Aichi , Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide, a was the world's largest autom obile m anufacturer production. by
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BUSNESS SCHOOL OF DELHI

TABLE OF CONTENTS
Page No. 1. EXECUTIVE SUMMARY---------------------------------- 2 2. INTRODUCTION------------------------------------------ 4 3. LOGO AND BRANDING--------------------------------- 6 4. COMPANY AT A GLANCE------------------------------ 7 5. OBJECTIVE------------------------------------------------ 9 6. METHODOLOGY----------------------------------------- 9 7. TECHNOLOGY------------------------------------------- 10 8. OPERATION STRATEGY OF TOYOTA--------------- 16 9. MARKETING STRATEGY----------------------------- 28 10. FINANCIAL SOLUTION------------------------------- 40 11. HR POLICY---------------------------------------------- 55 12. CONCLUSION------------------------------------------ 60 13. BIBLIOGRAPHY---------------------------------------- 61 14. CONTRIBUTION -------------------------------------- 62

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There are many other salient factors that have made the company achieve the niche of market leader. Its Tokyo office is located in Bunkyo.BUSNESS SCHOOL OF DELHI INTRODUCTION Toyota Motor Corporation is headquartered in Toyota City. In fact. On the other hand. Tokyo. A very efficient management style that the company uses has been one of the reasons for the firm’s good performance. Toyota is keen to see what these competitors are doing and make sure it reacts to their actions in a way that will guarantee its market leadership. Hong Kong and Taiwan.g. Some may consider it to be a monopoly. e. The Toyota Company is a leader in the car manufacture. Nagoya. In predominantly Chinese-speaking countries or regions using traditional Chinese characters. This is due to the fact that there are other key players like GM who are peer competitors. Toyota is known as In predominantly Chinese speaking countries using simplified Chinese characters(e. the market structure can be seen as an oligopoly. These are the same characters as the founding family's name "Toyoda" in Japanese. its differentiation strategy has made it enjoy an almost monopolistic presence especially in the developing nations of the world. The market structure the company operates in cannot be definitely stated. assembly and distribution the world over.g. Aichi. which translate to "fertile rice paddies" in the Chinese language as well. Project On Operation Research Page 4 . Its Nagoya office is located in Nakamura-ku. This is due to the fact that the company is a dominant market player in car exportation. Toyota is known as (pronounced as "Fēngtián" in Mandarin Chinese ). Toyota provides financial services through its Toyota Financial Services division and also builds robots. In addition to manufacturing automobiles. China).

Iwate Governor Takuya Tasso.BUSNESS SCHOOL OF DELHI From left. President Akio Toyoda. and Miyagi Governor Yoshihiro Murai The new headquarters of the Toyota Motor Corporation Project On Operation Research Page 5 .

"TOYOTA".BUSNESS SCHOOL OF DELHI Opened in February 2005 in Toyota City Logo and Branding Employee at Toyota Museum explains development of Toyota name and brand In 1936." It was believed that the new name sounded better and its eight-stroke count in the Japanese language was associated with wealth and good fortune. The original logo no longer is found on its vehicles but remains the corporate emblem used in Japan. After receiving 27. one was selected that additionally resulted in a change of its moniker to "Toyota" from the family name "Toyoda. there were no guidelines for the use of the brand name. Project On Operation Research Page 6 . which led to inconsistencies in its worldwide marketing campaigns. which was used throughout most of the world. Still. Toyota entered the passenger car market with its Model AA and held a competition to establish a new logo emphasizing speed for its new product line.000 entries.

Much like the design of the cars we sell. which stands for Toyota. There are three ovals in the new logo that combine to form the letter "T". and to differentiate it from the newly released luxury Lexus brand. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future. Toyota introduced a new worldwide logo in October 1989 to commemorate the 50th year of the company. The logo made its debut on the 1989 Toyota Celsior and quickly gained worldwide recognition.BUSNESS SCHOOL OF DELHI To remedy this. our logo has undergone a number of refinements and improvements over the years: COMPANY AT A GLANCE Project On Operation Research Page 7 .

89 billion) ¥468.33 trillion (FY2011)[1] (US$128.3 billion) ¥10.BUSNESS SCHOOL OF DELHI Type Public company TYO: 7203 LSE: TYT NYSE: TM    Industry Automotive Robotics Financial services Founded Founder(s) August 28.818 trillion (FY2011) (US$370.99 trillion (FY2011)[1] (US$235.18 billion (FY2011) [1] (US$5. Japan s Area served Worldwide Key people Fujio Cho (Chairman and Representative Director)  Akio Toyoda (President and Representative Director)  Products Production output Revenue Operating income Profit Automobiles Financial Services 7.28 billion (FY2011) [1] (US$5.308.32 billion) [2] Project On Operation Research Total equity Page 8 .82 billion) ¥408. Aichi. 1937 Kiichiro Toyoda Headquarter Toyota.07 billion) Total assets [1] ¥29.039 units (FY2011) [1] ¥18.

BUSNESS SCHOOL OF DELHI OBJECTIVES Study any organization in detail. Collect data pertaining to the following: Operations strategy  Financial strategy  HR policy  Marketing strategy METHODOLOGY All the analysis is done with the help of secondary data. Technology Project On Operation Research Page 9 .

asks entrants to work with five Toyota technologies: Total Human Model for Safety (THUMS) – An advanced injury-simulation software that measures more than the conventional crash test dummy can. It is also being used by NASCAR to analyze the effects of high-speed impacts. this system utilizes ultrasonic sensors in the front and rear bumpers to detect open parking spaces and helps guide the car into those spaces with only soft driver braking. for example. when the vehicle is parked in direct sun. Touch Tracer Display – An advanced touch-activated display system that allows drivers to control music. Touch Tracer is the first display system in the world to allow steering wheel controls to read out on the instrument panel. The benefits of Toyota's crowd sourcing experiment are twofold: the brand gains recognition for some of its more innovative technologies. is being used by Wake Forest University to study the effects of tackles and hits on football players. to boot. winners will get to choose from one of three Toyota cars (2011 Prius. Project On Operation Research Page 10 . Advanced Parking Guidance System (APGS) – Available on the Toyota Prius. The campaign. temperature and other features from the steering wheel without taking their eyes off the road. and it gets to leverage the ideas of the crowd. The hybrid system helps lower emissions while raising mpg.BUSNESS SCHOOL OF DELHI The latest corporate crowd sourcing experiment comes to us from Toyota. 2011 Highlander Hybrid or 2011 Venza) and be part of an "Idea Design Session" event. which is being produced in conjunction with Saatchi & Saatchi LA. In return. Hybrid Synergy Drive® (HSD) – HSD converts braking energy into electricity. Some of these technologies are already being used outside Toyota. THUMS. Solar Powered Ventilation System – The Toyota Prius offers this system that helps keep the interior air temperature near the outside ambient temperature. which this week launched its "Ideas for Good" initiative--an opportunity for consumers to repurpose Toyota automotive technology to benefit society outside of the automotive space.

ligaments.M.U. provides Toyota with more data than ever before to help them create the next generation of safety features on their vehicles. to better understand the mechanisms that cause injuries to vehicle occupants and pedestrians in car crashes.H.M. Toyota is using T. Touch Tracer T.U. enabling Toyota to better understand injury mechanisms in crashes that have historically been difficult to analyze with current crash test dummies.H.U.H.BUSNESS SCHOOL OF DELHI Toyota is far from the first company to dabble in online crowd sourcing.M.S.H. In one case. has two million distinct parts. was used to study low-speed rear impacts to help reduce the risk of whiplash injuries. including bones.S. 1.H. (Total Human Model for Safety) is an advanced injury-simulation software.U. Pepsi's multimillion dollar Refresh grant program has been wildly successful. T.S. Engines Toyota's new-generation engines combine driving pleasure and environmental responsibility Project On Operation Research Page 11 . with injuries to them accounting for approximately half of all injuries sustained during automobile collisions.M.U. and GE's recent $200 million Ecomagination Challenge captured the attention of environmentally-aware Internet junkies. T.S. T. Toyota's promise of a shiny new car will probably be enough to get a decent number of participants in its contest. About the Technologies  T. Solar Powered Ventilation System 2.M.M.U. T.S.U.M.U. Internal organs are particularly vulnerable during collisions. (Total Human Model for Safety) is an advanced injury-simulation software that measures injury to parts of the body not measurable with conventional crash test dummies. Advanced Parking Guidance System 4. seatbelt systems and vehicle body structures.S.S. tendons and the muscular systems.H. using the data collected to help develop advanced safety technologies for airbags.S. Hybrid Synergy Drive® 3.H.M.H. T.

BY determining the level of performance that is demanded of the engine at a given time by way of the driver's accelerator operation and the engine rpm. the VVT-I enables the overall performance of the engine to be enhanced all the way from the low to the high rpm range. which controls hydraulic pressure under Project On Operation Research Page 12 . Engines .The electronic control unit(ECU). Its VVT-I engine won "Engine of the Year 2000" and recently the VVTL-I has won a similar award for its revolutionary "lifting" valve control technology. the VVT-I system is an computer controlled mechanism that continually varies the timing for opening and closing the intake valves in accordance with the vehicle's operating conditions. 2.BUSNESS SCHOOL OF DELHI Award Winning Engines Toyota prizes itself for its advanced and intelligent engines. And the developments go on: At Paris Motor Show 2002 Toyota will launch its new D-CAT clean diesel technology. The oil control valve (OCV).VVT – I VVT-I (Variable Valve Timing with intelligence) Why VVTI In contrast to the fixed valve timing of conventional engines. which calculates optimum intake valve timing based on engine operating conditions. Design VVT-I is comprised of three major components 1.

Land Cruiser and Prevail models. Innova. clean diesel Originally introduced in Europe in the top selling Avensis range. leading to vibration and noise. Yaris Verso. Project On Operation Research Page 13 . Lower fuel consumption. RAV4.BUSNESS SCHOOL OF DELHI the ECU's instruction and 3. Fuel combustion can be incomplete. which continuously changes the intake valve timing using hydraulic pressure. computer controlled injectors to deliver precisely the right amount of fuel.takes place. Avensis Verso. Cleaner exhaust gases. where a single ignition . D-4D is widely recognised as one of the most advanced diesel technologies on the market today. D-4D components Toyota's common rail system makes use of a high pressure pump and intelligent.fired by the intense heat of high compression . diesel engines relied on relatively simple technology with a low-pressure mechanical injector delivering fuel to a pre-combustion chamber in the cylinder head. at precisely the right time. The system was reasonably fuel efficient but lacked precision and refinement. D-4D D-4D High technology. Avensis. Corolla Verso. The VVT-I is an engine control system that has achieved high levels of the seemingly opposing performances of Higher power out-put. Toyota D-4D engines are available on select models of Yaris. directly into the centre of the combustion chamber.The VVT pulley. allowing smoke and other emissions to pass into the exhaust. Until recently.

Passenger safety begins with buckling up. While roadtesting prototypes. Toyota continually strives to design new and better seatbelts that make the most of the ride-down effect of our automobiles' crumple zones and enhance the deceleration effects.BUSNESS SCHOOL OF DELHI Safety While you're getting out of your car. some of our vehicles have 3Project On Operation Research Page 14 . In addition. and we have put a great deal of work into designing ever more efficient passenger restraint systems such as seatbelts and head restraints. we are working hard to make seatbelts more comfortable and easier to wear. we're thinking about how to keep you in. real people use the seatbelts and report on their fit and comfort. and buckles are positioned for a safe and comfortable fit. Toyota even designs the structure and shape of the seats in its cars to complement the restraint of the seatbelts. And at Toyota. At Toyota. In a collision. Toyota uses dummies of several different sizes to make sure the seatbelts. we are making significant progress with airbags as supplemental restraint systems (SRS). Making the shape of the seats and the position of the anchors to ensure that the belts fit low across the pelvis. improved ways of clamping the webbing. The most important aspect of protecting passengers in a collision is to minimize collision forces transmitted to them. During the development of a new automobile. anchors. Adjustable shoulder anchor are provided for wearers to change the height of the belt for additional comfort and safety. we design automobile bodies with crumple zones to absorb collision energy. seatbelts are the primary safety device that helps protect the occupants. Depending upon the seating configuration. We search for improved webbing elongation characteristics. and improved pretensioners.

ABS helps prevent wheel lock. driver awareness of road hazards and appropriate response is also required to avoid dangerous situations and to give the various systems time to operate. which commands the engine to reduce torque. while the Force Limited keeps that tension from injuring you. Toyota's TRC system regulates engine and brakes to help provide as much control of wheel slip as possible during start-off or acceleration. and reduces hydraulic pressure to prevent it. ABS measures the degree of slip to determine when wheel lock will occur from the degree of slip. as well as Project On Operation Research Page 15 . Because ABS allows the wheels to roll . These electronic systems include ABS for the brakes and TRC for traction control. loss of traction can cause the tyres to lose their grip and allow the vehicle to slide sideways.BUSNESS SCHOOL OF DELHI point belts for the passenger sitting in the middle of the back seat. A cars wheels may tend to spin when starting off or accelerating. It all works to keep you safe and secure in the event of an accident. the wheel speed sensor detects a sudden increase in wheel rotation speed. When the brakes are applied. Brakes Our brakes allow you to do something you never thought possible Toyota has developed new electronic control systems that make the most of the basics and add to overall performance. the tyres begin to slip. At the same time. the ECU commands the brake actuator to engage the brakes on the affected wheel until it regains traction. If a wheel loses traction. Obviously. In some cases. yet loose enough to feel comfortable. Our Tension-Reducing Emergency Locking Retractor (ELR) automatically locks when you pull on the belt to ensure its secure enough to work. And some of our vehicles have Pre-Tens ioner Sensors which quickly pull the seatbelt back at the first shock of a severe head-on collision.the vehicle maintains directional control and steerability.albeit at a slower speed than the vehicle velocity . This information goes to the TRC electronic control unit (ECU). Toyota's TRC system uses components of ABS and engine management systems.

Operation Strategy of Toyota Toyota is Japan's biggest car company and the second largest in the world after General Motors. The company dominates its home market. The Company Philosophy "Do the right thing for the company.1 -company produces a large range of vehicles which are highly regarded for their quality. reliability and ease of maintenance. It has significant market shares in several fast-growing South East Asian countries. its employees. Toyota also has a large market share in both the United States and Europe. The system helps the driver maintain control of the automobile and optimizes traction. and value." Project On Operation Research Page 16 . engineering. It produces an estimated eight million vehicles per year. about a million fewer than the number produced by GM. their designs set global standards for safety.BUSNESS SCHOOL OF DELHI components designed specifically for TRC. with about 40% of all new cars registered in 2004 being Toyotas. even on slippery surfaces. the customer and the society as a whole. The .

of course). Because of the natural constraints and the economy constraints after World War II. Japanese Manufacturers looked for a way to gain the most efficient use of limited resources. many companies followed up and Project On Operation Research Page 17 . the company was dedicated to truck production for the Imperial Army. After the first introduction of JIT by Toyota. The Toyota Company implemented this into their plant and turned the management and accounting principles around to effectively and efficiently move inventory in and out very quickly while also concentrating on the manufacturing aspects of their cars. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. JUST IN TIME (JIT) Just-In-Time (JIT) is a Japanese manufacturing management method that was developed in the 1970’s. Soon thereafter. it is still in the textile business and still makes automatic looms (fully computerized. Although the Toyota Group is best known today for its cars. These kinds of motivation had driven Japanese economies to succeed. They also had a strong working ethnic which was concentrated on work that caused continuous improvement. which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. and electric sewing machines which are available worldwide. One motivated reason for developing JIT was a need of a better production technique after World War II. Toyota earns $1250 per vehicle produced while GM loses $2311 per vehicle produced. Because of severe shortages in Japan.BUSNESS SCHOOL OF DELHI Origins The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son. Japanese people had a very strong incentive to develop a good manufacturing technique to help them rebuild the economy. military trucks were kept as simple as possible. the trucks had only one headlight in the centre of the hood. For example. Kiichiro Toyoda. the division produced its first Type A Engine in 1934. During the Pacific War.

quite literally. a company can dramatically improve its product quality. Reduction of setup and changeover time reduces the no value added costs attached to a product. The company will also need to ensure that the process has adequate response time to maintain an uninterrupted schedule. a company only holds enough inventories for current production. where it is needed. JIT accounting systems are similar to process costing. quality. JIT can lead to dramatic improvements in a manufacturing organization's return on investment. It includes: strive for a level of zero inventories. optimize material flow from suppliers through the production process to the point of sale of the finished product. inventory is "demand" pulled into and through the process on a part-by-part basis in small quantities. Just in Time is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated carrying costs. and efficiency. that an assembler on a line receives his consignment of parts "just in time" to use them. This type of system produces only quantities necessary to fulfill the demands of the next operation. eliminate all unnecessary lead times. so that inventories are minimized. and in the exact quantity which is needed. and resultant delays in production. With Just in Time management. to a storeroom. rework. In the JIT manufacturing environment. reduce setup costs to achieve the smallest economical lot size. zero defects must be maintained. The movement of inventories is no longer from the storeroom to a work centre. the vehicle for collecting costs is the time in the system. The system also operates on the strength of very small lot quantities of replacement parts. Using JIT. implement a total quality control program which will minimize scrap. There was a major need for this process because before the introduction of JIT. Just-in-time means. to another work centre and so on. The quantity is pulled when it is needed. The system is based on an ideal situation in which a part arrives just in time to be used.BUSNESS SCHOOL OF DELHI around mid 1970s’and it gained extended support and widely used by many companies around the world. minimize safety stocks. produce items at a rate required by the customer. Inventory levels are a key measurement of the JIT process. not a work order. JIT is generally recognized that the implementation of JIT will result in significant reduction in inventory. ensure high quality just-in-time delivery from suppliers. JIT recognizes that any motion which does not add value to a product increases the no value added cost of the product. Companies can make great strides in JIT by reducing setup and changeover times for machinery. Once parts are put into production. The JIT philosophy on inventory management is simple. attention to quality must continue since no finished goods inventory will be held. there were a lot of manufacturing defects for the existing system at Project On Operation Research Page 18 .

a trouble in any of the processes will have a large overall effect. such a system in practice often creates excessive unbalance of stock between the processes. Therefore.producing one type of products. the vehicles are completely remodelled and there are also often changes at a part level. product defects. and large lot production and delivery delays. equipment breakdowns. For the product defects. and uneven production levels. In order to have an efficient production system in the automotive industry. In order to avoid such problems as inventory unbalance and surplus equipment and workers.BUSNESS SCHOOL OF DELHI that time. JIT manufacturing management was developed based on these problems. risen cost. The ordinary production control system in such an industry consists of fulfilling the production schedules by holding work-in-process inventory over all processes as a means of absorbing troubles in the processes and changes in demand. it can easily fall into the condition of having excessive equipment and surplus of workers. Thus. JIT was highly needed especially in the automotive industry that’s why Toyota was the first company to use it. The last issue is every few years. which is not conformable to Toyotas' recognition. they awarded that they should produce more diversified goods. In addition. This is where Just in Time was needed. However. The second issue was there are very many different models with numerous variations and with large fluctuation in the demand of each variation. which often leads to dead stock. On the other hand. manufacturers knew that only one single product defects can destroy the producer’s creditability. there was a need to have a faster and reliable delivery system in order to handle customers’ needs. Toyota recognized necessity of schemes adjustable to conform to changes due to troubles and demand fluctuations. Other implied problems such as parts storage. by checking the degree of Project On Operation Research Page 19 . the system before JIT did not manage well for fast delivery request. Lastly. but also required a lot of effort in storing and managing them. This included inventory problem. They must create a "defect-free" process. The just-in-time production is a method whereby the production lead time is greatly shortened by maintaining the conformity to changes by having “all processes produce the necessary parts at the necessary time and have on hand only the minimum stock necessary to hold the processes together". Instead of large lot production . The first main problem was that the automotive industry is a typical mass production assembly type where each vehicle is assembled from several thousand parts that have undergone numerous processes. they put their efforts in development of a production system which is able to shorten the lead time from the entry of materials to the completion of vehicle. there were many issues that needed to be solved. so. For this purpose. The inventory problems included the unused accumulated inventory that was not only unproductive.

2001 caused massive amount of financial damage to companies operating JIT Inventory or Production systems because so many large transport systems like FedEx. and the Post Office could not get the goods delivered. In the JIT system often a sole supplier is used for products for the manufacturing process. A company becomes vulnerable if that sole supplier shuts down for some reason. the computation of equivalent units of production is simplified. This method can also help organization tremendously. trucks reportedly waited 18 to 20 hours at some crossing points. border crossings with Canada and Mexico as well as at U. With the increased security at the U. the GM Saturn division was forced to shut down. a MRT system is a "push-through" system driven by forecasted demand. It also affected the other transportation industries. minimize defects goods. Not only did crossing times increase but. The use of production planning eliminates the need for material requirements planning (MRP) as a production planning tool. The JIT production stage is driven by having continuous delivery of items. at a daily Project On Operation Research Page 20 . more importantly for JIT systems. There is a definite downside to JIT. managers reduce inventory to a minimum level. September 11. These accounts are replaced by one account called Raw and in-Process Inventory. simplify the production process. In contrast to the JIT system.S. There are also some disadvantages that JIT can bring. Eight more GM plants followed suit within days. JIT is an attempt to change the manufacturing process and to eliminate non-value-added activities in order to judge the cost high or low. By using the JIT production planning approach. and create a timely. When the Lordstown body stamping and fabrication plant went on strike. keeping on hand only the amount needed in production until the next order arrives. and subassemblies. One major benefit of JIT is the elimination of separate raw materials and work-inprocess inventory accounts. There are many advantages in using the Just in Time inventory. multi-skilled work force. ports. All materials and conversion costs are charged to this account. United Parcel Service (UPS).S. It examines the finished goods requirements before determining the demand for raw materials. This was the starting point of the Toyota Production System. they became unpredictable problems and increased financial losses especially in perishable products.BUSNESS SCHOOL OF DELHI inventory quantity and production lead time as policy variables. components. This approach eliminates the double handling of products which occurs when storage is relocated to the work area or shipping area. Due to the reduction of in-process inventories. Some other advantages include minimizing raw material. The General Motors Corporation recently faced such a problem. this production method discloses existence of surplus equipment and workers. Lordstown is the sole supplier for about 300 Saturn parts. The JIT systems can be disastrously affected by outside forces.

Toyota adopting three-stage plan Project On Operation Research Page 21 . Nobody carries any inventory. More and more uses of JIT will be introduced and implemented as businesses seek to maximize the quality of their operations. Ill. "When I started here 13 years ago. that information is transferred to the computer and stored. can be used for all levels of operation in a company. Later. General Motors plight painfully illustrates the risk of a JIT strategy: It puts a company at the mercy of its key suppliers. not just inventory. When food is ordered. Quincy uses JIT techniques to speed up delivery time for its large industrial air compressors. we quoted you nine months' delivery time. Companies that use JIT principles are frequently used by large regional companies. It is a common practice that many companies have adopted and many more are realizing the need to pursue the concept.. traffic manager." The JIT inventory method is now being used just about anywhere. At the present time. factory machinery. The Quincy. It is easy to see that a JIT inventory management system intensifies the impact of a strike. Eliminating waste. Whenever a sale is made. the stored information is used in reports for management to clearly see what items have been sold and need to be reordered. which is the most of important in JIT. and we are averaging about five." says David Irick. The uses span far. if you called for a basic air compressor. Other companies such as. has reduced its inventory to $4 million from $21 million over 10 years. Now we quote 10 days. and climate-control systems. plant of Quincy Compressor. or companies that expand nationally or even globally. Another example would be a restaurant such as Applebee’s. the waiter submits this into a computer. as management can also use this data to see sale progressions of certain items and to see what sells the most at various times of the day. This method is becoming the most effective and efficient in operations today. week or month. That's just the way the market is. "We are producing more than we ever did. the information is used for the cooks and for check calculation. used in service stations. Take for instance Sears Department store. to later be submitted to various computers that use the information to update inventory. Inc. with less people. calculate sales and create other statistical reports.BUSNESS SCHOOL OF DELHI cost to GM of between $8 and $10 million in pretax profits.

and. North America is the top priority.is also being developed. However. Some 40. which was a great success in the United States -. Now. After the market entry of the Prado and Land Cruiser with China's First Automobile Works.50.4 per cent of respondents said the company does not give enough attention to China market. Project On Operation Research Page 22 . Although a latecomer. are accelerating their penetration into China.000 units annually. there are also unsatisfactory results of the development strategy.6 per cent) and its product brands are highly recognized by Chinese customers (52. Considering China is an immature auto market. to establish joint ventures (JVs) with local players and produce automobiles. since the company has established a far-reaching sales network (35. Within its global strategies. its new product with Guangzhou Automobile Manufacturing Co -. but does not want to share technological know-how. followed by its home country Japan.Camry. China has been included in Toyota's top development strategy in recent years with its first China-made VIOS sedan produced in Tianjin in October 2002. finally. About 80 per cent of the respondents predicted Toyota will continue its brilliant performance in the US market.9 per cent). the company has adopted a three-stage development plan -.first to establish a local sales network and launch brand promotions. It has 57 JVs and wholly funded auto parts companies scattered across China. About 57 per cent of respondents said Toyota adopted the right strategy for expansion in China and avoided possible risks. the company is stepping into the most important and critical stage -speeding up the localization of its products. since its rivals.BUSNESS SCHOOL OF DELHI The Japanese carmaker was a latecomer to the China market. such as Honda and General Motors. then to build auto parts manufacturing bases. Seventy-five per cent of the 104 senior company managers surveyed said Toyota only wants to sell cars in China. Toyota has jumped to the front in terms of imported car volume -.

Although Toyota missed the first opportunities. and Threats involved in a project or in a business venture. What may represent Project On Operation Research Page 23 . What is more challenging to its rivals is Toyota's strategy to realize these goals. saying that once the company sets goals.SWOT Framework Analysis SWOT Analysis. Toyota Motor Corporation . it will likely catch up if it pays more attention to the China market and introduces high-end brands. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. is a strategic planning tool used to evaluate the Strengths. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. Opportunities. Weaknesses.The strengths and weaknesses internal to the organization.The opportunities and threats presented by the external environment The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. it will manage to exceed the targets. That assessment may well apply to its China expansion.BUSNESS SCHOOL OF DELHI Forbes magazine commented on Toyota's success in the US auto market. SWOT analysis groups key pieces of information into two main categories: Internal factors . External factors .

For example. SWOT analysis is just one method of categorization and has its own weaknesses. for example. The results are often presented in the form of a matrix. as well as changes in the marketplace or competitive position.BUSNESS SCHOOL OF DELHI strengths with respect to one objective may be weaknesses for another objective. and so on. The external factors may include macroeconomic matters. legislation. technological change. finance. It also presents the resulting lists uncritically and without clear prioritization so that. manufacturing capabilities. and socio-cultural changes. it may tend to persuade companies to compile lists rather than think about what is really important in achieving objectives. The factors may include all of the 4P's. Toyota production system Project On Operation Research Page 24 . as well as personnel. weak opportunities may appear to balance strong threats.

the plant at Bidadi. meets high environmental standards and has achieved the ISO 14001 certification in its very first year of operations. to the advanced technology that is used for purification or recycling of waste water at the plant. society and environment. city transportation. resources.BUSNESS SCHOOL OF DELHI Harmonizing with the Environment Globally. through research & development. There have been relentless efforts in the crucial fields of mobility. starting with the eco-friendly engines that are manufactured for the Toyota vehicles. is surrounded by a green belt. Protecting the environment has always been a priority at TKM. Project On Operation Research Page 25 . Toyota has indicated a strong and diverse commitment to the pursuit of harmonious growth through its technically advanced and environment-friendly products. Karnataka. Apart from this.

the manufacturing facility consists of 4 divisions (shops) – Press. a non-profit industrial infrastructure company aimed at boosting local industries and related job opportunities. Another initiative is the Toyota Techno Park India (TTPI).BUSNESS SCHOOL OF DELHI Setting benchmarks for Production Excellence Quality is ensured in every vehicle that rolls out of Toyota Kirloskar Motor. greatly emphasizing superlative quality and minimal waste. the company set up Toyota Kirloskar Auto Parts (TKAP). for its global requirements. Weld. through in-built audits at every process of the system. In line with Toyota's growing comfort with its India operations. which commenced production of transmissions in May 2004. The company's operational excellence is based on the improvement tools and methods developed by Toyota under the Toyota Production System (TPS). Paint and Assembly. Setting benchmarks for the automobile industry. Project On Operation Research Page 26 .

BUSNESS SCHOOL OF DELHI Production System A production system which is steeped in the philosophy of "the complete elimination of all waste” imbues all aspects of production in pursuit of the most efficient methods. Toyota Motor Corporation's vehicle production system is a way of "making things" that is sometimes referred to as a "lean manufacturing system" or a "Just-in-Time (JIT) system." and has come to be well known and studied worldwide. This production control system has been established based on many years Project On Operation Research Page 27 .

It also means that." in which each process produces only what is needed by the next process in a continuous flow. in order to deliver the vehicles as quickly as possible. operators can confidently continue performing work at another machine. should a quality / equipment problem arise. as well as easily identify the problem's cause to prevent its recurrence.BUSNESS SCHOOL OF DELHI of continuous improvements. with the objective of "making the vehicles ordered by customers in the quickest and most efficient way. As a result. For the Just-in-Time system to function. Based on the basic philosophies of Jidoka and Just-in-Time. TPS Concept Jidoka — Highlighting/visualization of problems -Quality must be built in during the manufacturing process If equipment malfunction or a defective part is discovered. the TPS can efficiently and quickly produce vehicles of sound quality. all of the parts that are made and supplied must meet predetermined quality standards. the affected machine automatically stops. the machine detects the problem on its own and stops. preventing defective products from being produced. and operators cease production and correct the problem. that fully satisfy customer requirements. preventing defective products from being produced. The second is the concept of "Just-in-Time. one at a time. This is achieved through Jidoka. the equipment stops immediately. Jidoka means that a machine safely stops when the normal processing is completed." The Toyota Production System (TPS) was established based on two concepts: The first is called "Jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs. This means that each operator can be in charge of many Project On Operation Research Page 28 . Since a machine automatically stops when processing is completed or when a problem arises and is communicated via the "andon" (problem display board). only products satisfying quality standards will be passed on to the following processes on the production line.

BUSNESS SCHOOL OF DELHI machines. The preceding process must be stocked with small numbers of all types of parts and produce only the numbers of parts that were retrieved by an operator from the next process. When a vehicle order is received. when it is needed. In order to deliver a vehicle ordered by a customer as quickly as possible. 3. The assembly line must be stocked with required number of all needed parts so that any type of ordered vehicle can be assembled. 2. The assembly line must replace the parts used by retrieving the same number of parts from the parts-producing process (the preceding process). Project On Operation Research Page 29 . and unreasonable requirements on the production line. a production instruction must be issued to the beginning of the vehicle production line as soon as possible. the vehicle is efficiently built within the shortest possible period of time by adhering to the following: 1. while continuous improvements lead to greater processing capacity. Just-in-Time — Productivity improvement .Making only "what is needed. inconsistencies. and in the amount needed!" Producing quality products efficiently through the complete elimination of waste. resulting in higher productivity.

Mission Statement of the Company Toyota seeks to create a more prosperous society through automotive manufacturing (Hiroshu. local communities served. The Company’s Goals The company has committed itself to offering of hybrid alternatives for every model that is sold in the market. This is aimed at enabling the Company to make a total sale of 1 million hybrid vehicles within a year. These are. and this is supposed to be in synchronization with a number of factors: the significant environment. 2003). Therefore. and the Internal Environment of stakeholders.BUSNESS SCHOOL OF DELHI MARKETING STRATEGY Strategic Focus and Plan There are three aspects of the existing corporate strategy that are developed in relation to their overall impacts caused to the marketing plan of Toyota Company. and this goal has been set to have been achieved by the year 2012. the Company is aimed at achieving a stable and long-term growth in future. global economy. Project On Operation Research Page 30 .

available opportunities. hence referred to as external factors. changes in Energy and Climate. The production team has an insatiable obsession to improve the efficiency and effectiveness of its manufacturing operations. The Company has a well developed and equipped network of expertise that are into research and development over aspects that are to keep the Company on top in product and service delivery to its global market. while opportunities and threats normally originates from outside of the Company. which are: the Environmental Management. the Quality of Air. and Societal Cooperation. to fully understand the situation analysis of Toyota Company. Therefore.. the aspects of Recycling and Improved Resource utilization. This entails the way production process is managed by the top management who are famous for their competency. Core Competency and Sustainable Competitive Advantage Toyota Company is working towards the achievement of a better and more sustainable economy by having a stable global market. The Company is committed to reduce carbon dioxide emission and it is believed to take combined actions of ensuring that the environment is kept clean all the time by observing the stated fuel economy values. a SWOT analysis is determined and it mainly consists of the Company’s strength. Figure 1: SWOT Analysis of Toyota Company (Internal Factors) Internal Factors Strengths Weaknesses Page 31 Project On Operation Research . SWOT Analysis Strength and weaknesses are referred to as internal factors of the Company as their impact starts from within the Company.BUSNESS SCHOOL OF DELHI Toyota Company has improved its 2011 Environmental Action Plan and it is committed in six different key areas. Situation Analysis Toyota’s capacity to stay on top of productivity efficiency and quality rankings can be credited to its internal environment. the Company is investing in various strategies that will enable it to realize its set goals and objectives over a period of time. concerned Substances. weaknesses. and finally the threats that the Company is experiencing or projected to go through. With advancement in new technology and other related matters.

Offering Marketing Personnel Finance Manufacturing Main supplier of material ensure fast and quality material Quality of products delivered is enhanced through out the period of doing business R&D Figure 2: SWOT Analysis of Toyota Company (External Factors) External Factors Consumer/social Opportunities Stability of the upcoming market is highly projected Threats Low priced products may proof that the quality of the products is quite low Project On Operation Research Page 32 .BUSNESS SCHOOL OF DELHI Management Having competent and Large size of management experienced management team team reduces chances of and board members moving fast into the targeted market. because of slow rate in decision making Hybrid products that are customer friendly Distribution of products into the market through wide range of identified branches Have good skilled workforce who are relied upon Improved revenues from sales made in the global market Expensive in proofing the market that are right products for them Expensive in establishing this distribution network The gap will be big if the employees left the Company Limited workforce and material may slow down the growth of the Company in relation to competitors Different supply interests among the Company suppliers and other competitors.

BUSNESS SCHOOL OF DELHI Competitive Differentiated products and prices make the Company to be quite distinctive in the market Break-through in technological standings is a better course for the Company to improve on the quality of its products Improved consumer income has made it convenient for the Company to get deep into the market Regulatory measures ensuring fairness in the market and avoid over-exploitation by other competitors Individuals opting for other products since they have enough disposable income Products of high technology are being introduced into the market by other competitive companies Technological Economic Legal/Regulatory Figure 3: The SWOT Analysis Matrix Strengths: •investment in new factories •diverse range of products •improved marketing techniques Opportunities: •hybrid cars •selling technology •rising urban youth population Project On Operation Research Page 33 .

which is to be the world leader in the creation of automotives that are best in terms of value. They believe in giving the best prices for the client yet still deliver a vehicle that is at per with those being offered by their other major competitors. This could be the reason why their products are having a very good market in the developing nations. With the fear of depletion of the fossil fears coupled with the global warming effects.BUSNESS SCHOOL OF DELHI Weaknesses: •Maintaining client base •Maintaining production Threats: •Faulty products •Upcoming manufacturers Industry Analysis Toyota Company is able to apply its strengths and opportunities it has to create a competitive edge in the industry. This can also be achieved through entering new markets like China and Europe. Toyota has taken a good position as far as sustainable development is concerned. Toyota has previously concentrated on the Japan and American markets and it needs to setup strategies to penetrate the other markets as well. The company is working towards the end of creating a society that is prosperous by providing their clientele with the best value for their money. there is a ready market for the Toyota’s hybrid car. For instance. and this can be clearly seen in its different corporate social responsibilities as well its sustainable development initiatives aimed at reducing the pollution of the environment. the widely differentiated product line is helping the company to have more global presence. The company can also use this opportunity t sell its technology to other firms Company analysis Toyota Company is one of the world’s leaders in car export and it appears to literally be living its mission. Project On Operation Research Page 34 . The Company is also conscious about sustainable development.

the product buyer and purchaser is not actually the product user. Majority of the advertising materials can be obtained in full. newsletters. Customers go for Toyota products to satisfy different wants and needs. on-line view over the Internet.BUSNESS SCHOOL OF DELHI Customer Analysis Toyota’s customers are very diverse and they range from the low income earners to the very rich. This is because Toyota sells its cars all year round. Where do they Purchase? Most of Toyota’s products are sold through retail distributors located all over the world. there is an increased exposure to its other products. On-line publications diminish paper waste while giving existing and direct availability of the product to clients. They are widespread around the world. The customers comprise a varied group of people. that is. purchasing products on-line. Project On Operation Research Page 35 . They range from small sports cars to big family vehicles and trucks as well as vans. Customers are able to order a product in stores and with a toll-free number directly from the company as well (Booz. Clients going for class and elegance are also catered for. Toyota as well. 2007). website information. with differing ages. This grants customers around the world access to the company’s products. incomes. In some cases we have organizations purchasing cars for their firm’s usage or for their employees. and other informational sources. geographical locations. New users often purchase cars after acquiring a driver’s licence in the case of some countries when going to high school or to college in others. When do they Purchase? Individuals can purchase the company’s products anytime that they like. and social and cultural statuses. Purchase can also be made directly from the factories. Customers purchase Toyota products on individual basis according to their specific needs. The increase in the use of electronic commerce. Toyota has catered for all car needs that may arise for any individual with their wide range of motor vehicles. In such a case. except for the limited editions which are purchased directly from the factories. Low income earners are provided with a basic mode of transportation that is both within their price range and efficient. The opportunity for Toyota to generate income from complimentary products such as books and seminars by members is very big. at any time of the year. Product awareness is enhanced through advertisements. Once individuals purchase the company’s product. as is the case with limited edition models.

The other reason is the issue of class and social status. and the Company position in the market. Why Potential Customers Don’t Purchase? As is the case for many large organizations. There are many car manufacturers who have come up and the motor industry is currently flooded with many products. Many of these products are similar. 2007). Toyota offers a diverse range of cars that encompass all needs of the clients. the Company three year development projections is clearly explained in various categories. Why do they Purchase? Customers select Toyota products over other manufacturers primarily because of their comprehensive. Toyota has also invested heavily on safety in their cars. Product-Market Focus In this section. Developing a Strategic Focus Toyota has already embraced product differentiation as a major strategy in market penetration and the strategy is working well. Toyota products do not always give the implication of a high social standing. They offer cheaper alternatives to the clients for the same products from other manufacturers that are quite expensive. target market. yet specialized. As the globe goes green and clients call for an appropriate response from their car manufacturers. The cost of production of a unit for Toyota is projected to be large but due to possible mass production plants. It is determined to use a pricing mechanism that will give it a competitive edge over its main competitors. often differing due to one or two features that may or may not be significant.BUSNESS SCHOOL OF DELHI Other users usually purchase a new car when the old one breaks or gets too old or when they want to trade in for a newer car or a different model. In this case. marketing goals and objectives. The high quality products make it all that easy for a customer to go back to the shop and purchase another Toyota product (Flanagan. the Prius. This may be the future of the motor industry. which are developing of a strategic focus. and yet the car is the same. Toyota’s target market defines a much wider population than their customer base actually reflects. nature. A customer may choose to buy a car from a competitor and not from Toyota simply because of that. it comes down to personal like and dislike. the overall cost will not Project On Operation Research Page 36 . Toyota have responded by investing in hybrid cars. They are focussed on building and maintaining high standards when it comes to the products.

Then. 2002. Demographically. p. It is thinking of best ways to reduce them without hindering its efficiency (Mullins. Toyota’s great size will enable them to successfully meet the needs of this growing population of customers in need of cars (Dobbin. This means the company will be able to sell its products at an even lower price yet still remain profitable. 2002). The perceived importance of owning a car due to increased travelling needs in today’s largely corporate world is constantly increasing as well. 2010). and hopefully future existence (Armstrong & Kotler. This is especially important since their chief rivals.BUSNESS SCHOOL OF DELHI be a huge issue in this case. and not to give in to the competitors’ pressure and raise their prices then clients will remain loyal to the company (Armstrong & Kotler. capacity and exterior appearance like colour and shape. There is a high speed. GM and Ford have made notable improvements in their production process. current. The number of clients in need of cars is constantly increasing. The company is taking an advantage of this and using it to penetrate the markets of emerging economies with affordable products. The company keeps making quality product and make it a rule not compromise on this. This is as a cost cutting measure. Project On Operation Research Page 37 . they also target situations on the smooth tarmac road as well as the rough and rugged off road terrain. small. 2003). Walker & Boyd. Toyota is also thinking twice about its bloated assembly points. two-seat model cars for the relatively younger and single people who are adventurous to the big five-seat models for the family set up. they intended to compress their platforms from 20 to ten in the ambitious exercise. The design criteria range from top speed. everyone has a chance to know the real values behind Toyota’s past. thus creating a bigger market for Toyota and requiring more of their products.41). Target Market Each of Toyota’s products is designed to target a specific market. Toyota is in the process of engineering lesser platforms to be used in the assembly of its different models. Marketing Goals and Objectives Toyota’s enormous size and capacity is a great advantage in meeting industry growth.

has also been transformed since at its inception. then this is a position Toyota is not likely to lose any time soon. The hybrid model. It has also included the strategy of hybrid product.BUSNESS SCHOOL OF DELHI Toyota has been previously blamed by the American Markets that their products are lacking in flair and design unlike those of GM and Ford. The V8 pickup which was launched recently was as a result of this ambitious. If the current impressive results and global positioning of the company is anything to go by. where it can double the amount of production for the arising needs in the market. Even though it has experienced challenges like the recent recalls. This has led the company to be more attentive to its American designers to make sure this needs are met. When they made it look more futuristic. Company Position in the Market Toyota Company has been producing vehicles and significant products that are not expensive and readily available. Price Strategy The reputation of the Company has been developed by producing high quality vehicles that can be bought at a reasonable price. Product Strategy The Company is believed to be moving with a strategy of mass production of which it has enabled it to sell widely in the global market. Overly. it didn’t hit the American market. Primus. This has been a significant factor that has enabled the Company to have a major cut in the market . it resulted in big volumes of sales. it is still notable in market leadership position. The Company Project On Operation Research Page 38 . the Toyota Company is giving its competitors a hard time. and it is projecting to have most of the market by the end of 2013. as it has put a cross a number of strategies to enable it reach the set target. Market Program This consists of the four marketing mix elements that are designed to fit the market in terms of their needs and ability to access such products and services.

Promotion Strategy The Company is determined to use a pricing mechanism that will give it a competitive edge over its main competitors. The company should always make sure they have highly motivated staff as this is directly proportional to good production both in the qualitative and quantitative aspects. This is a mechanism that it is using to market itself so that it can get hold of market share that will see it better in achieving the highest level in the market. Financial data and Projections The previous years have seen Toyota’s profit grows each year with an exception of 2009 due to the economic downturn as well as the recalls. and this will make it to be best and top supplier of automobile products. Marketing Implementation Analysis Toyotas main focus will be in reaching the new markets of China and Europe. Toyota can do this by coming up with schemes of rewarding their employees like helping them own cars subsidized rates. it is working towards the achievement of about 35 percent of the market share. It will also be concerned about the competition from other firms like Ford and GM. The company should also make sure the personnel are the best in terms of technical know-how.BUSNESS SCHOOL OF DELHI has also been using tactful pricing strategies through price differentiation so that they are different from other automobile producers. The company needs to carry out frequent training towards this end. Within three years to come. Establishing new factories in these new markets as well as opening up new franchises will help the company in getting an ease of penetrating the new markets Human resource is one of the most important aspects in this plan. Location Strategy Being a global producer and supplier of Toyota automobiles and their components. Toyota Company has positioned itself all over the world giving it a clear cut within the market. An advantage the company has is the widely differentiated product range. The figures below illustrate this Project On Operation Research Page 39 .

879 2. 2009) Sales Forecast Millions of Yen Year 2009 2010 Net Sales 1.534 89.234 20.023 Ordinary 70. This position will need some innovations which translate to expenditure.455.760 14.000.0530 125.484 60.120 65.912 80.051 60 99.999 Net Income 30.051 78 Tactical Marketing Activities Toyota has taken a bold step in being a leader in sustainable development. Below are the projections for the next five year period Figure2: Projected financial returns for the next five years (Johnson.343 57.444 81.954 108.BUSNESS SCHOOL OF DELHI Figure1: Toyotas impressive performance in the last four years (Johnson.243.340 1.051 50 98.636 Income 46.576 30. 2009) With the advent of more efficient production technologies coupled with the entrance into the new markets.051 Research 32 44 Dividends/yen 2011 2012 2013 1.123 47.445 1.957.051 32. Project On Operation Research Page 40 .650 Operating income 54.231 30.900. it is expected that the increase in profits will continue for the next five years.

Machine handling 3.45 engineers and Product management Operations 15.Concerts 2. Opening up of new factory in America and china 2.Low Exhaust Emission Engine Pricing Activities 1.New Technologies 2.Car air conditioning compressor 2.Merger of Assembly points Distribution Activities 1.40 management 2010 Marketing manager 9.25 management 2012 Logistics 21.Logistical operations IMC (Promotion) Activities 1.BUSNESS SCHOOL OF DELHI They are however necessary as a way of staying ahead of competition. The activities the company will embark on are given in figure 3 Figure 3: Tactical Marketing activities Person/Depa rtment Responsible Required Budget millions of yen Completi on Date 2011 Specific Tactical Activities Product Activities 1.Compression of Production platforms 3.20 2012 Implementation Plan Project On Operation Research Page 41 .Volunteer 3Youth Invention club Production 30.DC-DC converters for fuel efficiency 3.

Currently. and so far the market has started improving in terms of Project On Operation Research Page 42 .BUSNESS SCHOOL OF DELHI There are a number of activities that have been projected within a life span of three years and the following representation shows the aspects that have been targeted and within what strategic period of time. Year To be Achieved New Targeted Markets (millions) 250 Cumulative Targeted Markets (millions) 250 Today (2010) Working towards hybrid products Introduction of pricing mechanism and price differentiation strategies. the Company has made a clear step forward in ensuring that hybrid vehicles are being produced. 1st Year (2011) 320 600 2nd Year (2012) Enhancing 370 hybrid products by use of new technologies Product differentiation to meet the needs of the market 420 970 3rd Year (2013) 1320 Evaluation and Control There is a monitoring and evaluation team that will be set to watch over the progress of the company in realizing the strategic goals. The short term goals will be clearly watched and corrections put in place where targets are missed for they are the keys to fulfilling the long term goals.

Another aspect that is supposed to be considered here is the speed of the roll-out program of pricing mechanism introduced. FINANCIAL SOLUTION Income Statement Project On Operation Research Page 43 . The Company has been able to come up with a differentiation program for its products and this has helped it to have a huge market share. it has taken the market by surprise as most of Toyota products are found to be customer friendly. Currently. It is projects to improve and reach the target within three years and this will be determined by the rate of growth and the total number of market reached.BUSNESS SCHOOL OF DELHI overall reception of these brands of vehicles.

000) (372.663.685.814.898.000 (4.551.00 20.000 3.000 475.199.474.000 Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items 4.263.000 992.579.00 24.000 1.500.000 (531.000 - Operating Income or Loss 5.668.000 1.000 (5.00 0 0 0 Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses - 23.119.00 0 0 0 28.000) Earnings Before Interest And 7.650.477.774.796.0 207.000) Taxes Interest Expense 354.242.000 ) Income from Continuing Operations Total Other Income/Expenses Net 1.424.000 Income Before Tax 6.000) Minority Interest (691.000 22.856.674.000) Income Tax Expense 3.000 358.046.00 186.000 (5.000 (4.000 (571.925.0 00 00 00 200.000 25.000 2.696.171.000) 246.150.00 178.000 3.852.0 202.000) - - - Project On Operation Research Page 44 .996.BUSNESS SCHOOL OF DELHI View: Annual Data Period Ending Total Revenue Cost of Revenue All numbers in thousands 31-Mar31-Mar31-Mar2011 2010 2009 229.

925. 4.242.925.BUSNESS SCHOOL OF DELHI Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares Currency in USD.000 ) - 4.000 (4.000 (4.242.000 2.424.000 2.000 ) ANNUAL DATA OF INCOME STATEMENT Project On Operation Research Page 45 .424.

000 71.000 139.000 6.966.000 105.823.105.396.240.000 14.000 5.000 324.000 70.124.000 62.000 - 359.000 19.967.000 15.997.000 Other Current Liabilities 10.000 7.000 114.506.000 294.000 Page 46 .159.000 78.000 97.803.820.000 Liabilities Current Liabilities Accounts Payable 40.241.000 5.800.000 Short/Current Long Term Debt 78.000 7.000 75.240.403.748.000 15.000 Project On Operation Research 41.000 8.246.000 74.274.000 7.737.222.243.734.000 24.859.000 7.914.159.776.000 132.748.BUSNESS SCHOOL OF DELHI Balance Sheet View: Annual Data Period Ending Assets Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets All numbers in thousands 31-Mar-2011 31-Mar-2010 31-Mar-2009 25.000 142.746.939.000 23.394.000 29.000 76.472.892.775.000 17.000 64.000 6.985.933.404.472.189.

805.063.000) 6.822.000 Net Tangible Assets Currency in USD.000) (11.000) 124. Quotes are delayed at least 15 minutes.000 4.703.102.000 101.000 101.489. or delays.398.000 4.000 142.775.000 6.000 63.000 (13. By accessing the Yahoo! site.079.365.000 4. Quotes are updated automatically. All information provided "as is" for informational purposes only.870.791.364.799.000 5. you agree not to redistribute the information found therein. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. 124. except where indicated otherwise. Project On Operation Research Page 47 .667.865.912. for NASDAQ.000 110.000 5.000 75. or for any actions taken in reliance on information contained herein.000 77.000 7. incompleteness.075.000 207.000 114.000) (9. but will be turned off after 25 minutes of inactivity.219.000 - 228.000 (15.000 9. Neither Yahoo! nor any of independent providers is liable for any informational errors.000 10.000 116.674.667.000 6.000 123.870.812.216.865.090.212.752.249.462.000 186.814. NYSE and Amex.000 110. not intended for trading purposes or advice.BUSNESS SCHOOL OF DELHI Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Minority Interest Negative Goodwill Total Liabilities Stockholders' Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity 130.018. See also delay times for other exchanges.000 107.000 9.000 8.000) (12.000 9.000) (13.503.108.000 Quotes delayed.000 5.808.229. Delay times are 15 min.766.020.200.

000 2.000 Changes In Other Operating Activities 2.424.468. fund summary. dividend data and Morningstar Index data provided by Morningstar.000 14.172.139. Inc.593. Cash Flows Provided By or Used Depreciation 14.382.816.000 Adjustments To Net Income (1.925.000 1. Cash Flows Provided By or Used In Capital Expenditures (7.408. (CSI). CASH FLOW OF TOYOTA MOTORS View: Annual Data | Period Ending All numbers in thousands Net Income 31-Mar31-Mar31-Mar2011 2010 2009 4.000 3.000) Project On Operation Research Page 48 . daily updates.184.452.000) 600.000 10.000 (11.504.325.000 Operating Activities.000 2.000) 8.953.BUSNESS SCHOOL OF DELHI Fundamental company data provided by Capital IQ.000 Total Cash Flow From Operating Activities 24.000 (4.470.421.085.242.138.013.675.919.000) Changes In Accounts Receivables 5. Historical chart data and daily updates provided by Commodity Systems.000 15.000 Investing Activities.056.000) In 15.260.948.000) (13.000) (6. fund performance.000) Changes In Inventories 625.000 Changes In Liabilities (2.000 3. Inc.000 27.000 (6.000 1. International historical chart data.

000) (24.535.594. Cash Flows Provided By or Used In Dividends Paid (1.000) 619.455.000 ) ) ) Financing Activities.000) (4.000 (30.240.BUSNESS SCHOOL OF DELHI Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities (18.000) (1.259.000 (1.000 (1.846.000) (715.000 (25.000) 7.000 Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Change In Cash and Cash Equivalents 5.000) 12.000 562.503.000 Project On Operation Research Page 49 .288.703.000) (1.192.455.000) Net Borrowings 7.314.000 (12.000 (2.533.245.019.000 480.000) 2.561.075.000) (110.594.000) Sale Purchase of Stock (345.000) (6.975.000 (95.000 880.000) 8.

34 Trade: Trade 10:39PM Time: 1.03 Bid: 67.62%) Prev. 68.BUSNESS SCHOOL OF DELHI Toyota Motor Corporation Common (NYQ: TM ) Last 67.45 Close: Open: 68.11 Change: (1.35 x 200 Ask: 67.38 x 300 Project On Operation Research Page 50 .

87 EPS (ttm): 1.95 (1. except where indicated otherwise.117 Avg.989 (3m): Market 105.68. 539.34 Est.: Day's 67.37 .14 Range: 52wk 60. Currency in USD.93. FINANCIAL DATA Project On Operation Research Page 51 . Vol.90 Range: Volume: 149.65 Div & 0.40%) Yield: Quotes delayed.BUSNESS SCHOOL OF DELHI 1y Target 57.00 .58B Cap: P/E (ttm): 40.

BUSNESS SCHOOL OF DELHI Capital investment and R&D Vehicle production Vehicle production by region Vehicle sales Project On Operation Research Page 52 .

BUSNESS SCHOOL OF DELHI Vehicle sales by region Net revenues operating income Project On Operation Research Page 53 .

1% 4.) 3.1% Project On Operation Research Page 54 .0% 1.0% 5 FY200 9.O.) (R.5% 7.9% 7.3% 5.7% 34.5% 14.1% 34.6% 36.1% 5.4% 5.3% 7 FY200 8.4% 5.8% 37.8% 7.9% 2.5% 3.9% 6 FY200 9.9% 1.7% 9.2% 1.6% 4 Pretax Pretax Return on Return on Shareholders' return on return on assets equity equity ratio revenues capital (R.4% 1.3% 9.0% 14.8% 7.BUSNESS SCHOOL OF DELHI Financial Performance (Consolidated) Financial Indicator Fiscal Operating Year income return on revenues FY201 2.6% 15.8% 0 FY200 2.6% 8 FY200 9.E.6% 8.0% 1.5% 1 FY201 0.7% 1.A.5% 2.5% 10.9% 9.2% 5.2% 34.4% 0.2% 37.9% 9.7% 14.6% 36.0% 13.3% 36.O.2% 9 FY200 8.

TMC pays dividends twice a year — an interim dividend and a year-end dividend. 2011) TMC (Toyota Motor Corporation) deems the benefit of its shareholders as one of its priority management policies. and it is working to improve corporate structure towards the realization of sustainable growth in order to enhance its corporate value.S. GAAP (Generally Accepted Accounting Principles) Dividend Policy (As of March 31. In order to survive stiff competition. TMC plans to utilize its internal funds for the early commercialization of technologies for the next-generation environment and safety.4% 7. giving priority to customer safety and sense of security.2% 5.8% 9.4% 6.9% 8. TMC will strive to continue to pay dividends while giving due consideration to factors such as business results for each term. In order to secure an opportunity to directly seek shareholders' opinions. investment plans and its cash reserves.6% *Financial figures are based on U.6% 41.6% 35.0% 10. TMC treats payments of year-end dividends as a matter to be Project On Operation Research Page 55 .7% 2 FY200 6.1% 1 7.3% 37.2% 3 FY200 7.BUSNESS SCHOOL OF DELHI FY200 8.8% 3.9% 6.6% 3.1% 4.5% 6.

with record date dated September 30. In relation to the above. Dividends per share Notice Concerning Distribution of Interim Dividends from Surplus At a meeting held on November 8. Details of dividends Interim dividend Most recent for dividend forecast FY 2012 Record Date Dividend per share Total amount of dividends Project On Operation Research September 30. 2011 20. 2011. Considering these factors. an annual dividend of 50 yen per share was paid for fiscal 2011. we hereby inform you of the following: 1. consisting of a year-end dividend of 30 yen per share and an interim dividend of 20 yen per share. the Board of Directors of Toyota Motor Corporation ("TMC") resolved to distribute dividends from surplus. 2011. Note: The Board of Directors determined the interim dividend for the last term on November 5. 2011. 2011 Not reported 62.BUSNESS SCHOOL OF DELHI resolved at the General Shareholders' Meeting.713 million yen - Page 56 .00 yen September 30. even though TMC's articles of incorporation stipulate that retained earnings can be distributed as dividends pursuant to the resolution of the board of directors.

Project On Operation Research End of interim period 20. giving priority to customer safety and sense of security.00 End of fiscal period - Total - Page 57 . Details of Dividends through the fiscal year Dividend per share (yen) Record date Dividends for FY2012 (ending March 31. 2010 Retained earnings 2. In order to successfully compete in this highly competitive industry. investment plans and its cash reserves. TMC's interim dividend for the year is 20 yen per share. 2011 Retained earnings November 26. Based on the foregoing.BUSNESS SCHOOL OF DELHI Effective date Source of dividends November 30. Reason for the dividend amount TMC deems the benefit of its shareholders as one of its priority management policies and strives to continue to pay stable dividends while giving due consideration to factors such as business results for each term. TMC will focus on the early commercialization of technologies for the nextgeneration environment and safety.

BUSNESS SCHOOL OF DELHI
2012) Dividends for FY2011 (ended March 31, 2011)

20.00

30.00

50.00

.

.

GROWTH OF TOYOTA MOTORS IN 5 YEAR
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BUSNESS SCHOOL OF DELHI

PRICE CHART

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BUSNESS SCHOOL OF DELHI

HR POLICIES
PURPOSE:
Embodiment of management that respects people to create perpetual prosperity for the company.

BASIC PRINCIPLE:
Establishment of relationship of mutual trust and respect.

BY:

- Building a relationship, in which, employee him/herself takes up part of responsibility in corporate activities. - Contributing to self realization of employees through continuously exercising their facilities through the job

The Eight HR Processes That Contributed to Toyota’s Success
1.

Rewards and recognition — The purpose of any corporate reward process is to encourage and incant the right behaviours and to discourage the negative ones. It’s important for the reward process to incant the gathering of information about problems. It’s equally important to reward employees who are successful in getting executives to take immediate action on negative information. Training — The purpose of training is to make sure that employees have the right skills and capabilities to identify and handle all situations they may encounter. Toyota is famous for its four-step cycle — plan/do/check/act — but clearly the training among managers now needs to focus more on the last two. In addition, in an environment where safety is paramount, everyone should have been trained on the symptoms of “groupthink” and how to avoid the excess discounting or ignoring of negative external safety information.

2.

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Poorly designed recruiting and assessment elements can result in the hiring of individuals who sweep problems under the rug and who are not willing to stand up to management. Retention — The purpose of a retention program is to identify and keep top performers and individuals with mission-critical skills. Clearly HR should have worked with corporate risk management at Toyota in order to ensure that employees were capable of calculating the long-term actual costs of ignoring product failure information. Toyota wouldn’t be in turmoil today. 6. corporate and customer satisfaction. The corporate culture — The role of a corporate culture is to informally drive employee behaviours so that it closely adheres to the company’s core values. As a result. If the performance measurement system included performance factors to measure responsiveness to negative information. 5. Hiring — The purpose of great hiring is to bring on board topperforming individuals with the high level of skills and capabilities that are required to handle the most complex problems. it’s hard to blame the production group. Page 61 4. which has a well-known reputation for Six Sigma quality in its construction. that they for years postponed making the announcement of a massive recall. Leadership development and succession — The purpose of leadership development and succession planning processes are to ensure that a sufficient number of leaders with the right skills and decision-making ability are placed into key leadership positions. Project On Operation Research . it is the culture within the corporate offices that need to be more closely monitored rather than assuming that the culture was aligned. 8. The negative reports came to functions like government. It is likely that the leadership development and the promotion process both failed to create and promote leaders who were capable of confronting problems and making difficult decisions.BUSNESS SCHOOL OF DELHI 3. risk analysis. It appears that the corporate culture created leaders so concerned with “saving face” and so adverse to negative publicity. in order to identify problem behaviours before they get out of hand. Because these errors occurred under difficult driving conditions. Risk assessment — Most HR departments don’t even have a risk assessment team whose purpose is to both identify and calculate risks caused by weak employee processes. The performance management process — The purpose of a performance management process is to periodically monitor or appraise performance. 7.

o Training is needed due to continuous changes in the field of science and technology. o Training is needed in order to introduce modern methods or for the introduction of rationalization and computer technology in the industrial units. o Workers can work as per new methods or can use new machines only when suitable practical training is given to them. It is also needed for personal growth and development of employees. Training at the Industry level is practical and is needed for creating confidence among employees. instructions and guidance is given to all categories of employees. So the organization always employs people who are well qualified and competent. The following points (reasons) justify the need for training: o Training is needed as a good supplement to school/college education. Need for training: The need for training of employees is universally accepted and practical training in the form of information. Project On Operation Research Page 62 . Training is the only method by which the knowledge and skills of workers are updated.BUSNESS SCHOOL OF DELHI Selection Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. Training is necessary in present competitive and ever changing Industrial world. Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job. 2) Cost incurred: Cost incurred while selection process also plays an important role. Role of selection: Selection is crucial for the organizations effectiveness for 2 reasons: 1) Work performance: Performance of the organization is very important to the success of the Company. It is a must for raising efficiency of employees.

stored. Project On Operation Research Page 63 . and used for several purposes. PERFORMANCE APPRAISAL: In simple terms. Assessment should not be condensed to past performance alone. co-operation.BUSNESS SCHOOL OF DELHI o Training is needed for raising the efficiency and productivity of industrial employees. dependability. judgment. performance appraisal may be understood as the assessment of an individual’s performance in a systematic way. To effect promotions based on competence and performance. Objectives of Performance Appraisal: Data relating to performance assessment of employees are recorded. The main purposes of employee assessment are: 1. Such skilled manpower is the real asset of an industrial unit. supervision. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. for improving health and safety of workers. quality and quantity of output. o Training is needed for preventing manpower obsolescence. the performance being measured against such factors as job knowledge. 2. Potentials of the employee for future performance must also be assessed. initiative. o Training is needed for personal safety of employees and also for avoiding damage to machines and property of the company. for improving organizational climate and finally for meeting future personnel needs of the organization. versatility. health and the alike. o Training is needed as it creates highly skilled manpower in an organization. leadership abilities. o It is needed for improving the quality of production and also for avoiding accidents and wastages of all kinds in the industrial units.

Broadly. training. and transfers have been effective or not. 4. 7. performance appraisal serves four objectivesI) Development uses. Finally. · Promotion · Job Enrichment · Delegation & authority · Telephone Facility · Bonus · Quarters ·Toyota’s share etc Project On Operation Research Page 64 . To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. and improves understanding of personal goals and concerns. and iv) Documentation purposes. To assess the training and development needs of employees. 6. MOTIVATION: Toyota gives both financial as well as non financial motivator to their employees. Performance appraisal provides a format for dialogue between the superior and the subordinate. iii) Organizational maintenance/objectives. What type of motivational tool given in Toyota? · Annual Salary Revision. ii) Administrative uses/decisions.BUSNESS SCHOOL OF DELHI 3. performance appraisal can be used to determine whether HR programmers such as selection. To improve communication. 5.

i Even if they are losing money. evidenced by the fact that oil is a Project On Operation Research Page 65 . Toyota is also looking towards further development of the engine. possibly combining an alternate fuel source other that gasoline with the electric component. It is practical in that there is a demand for it and that Toyota presumably is making money or will make money on the product. Toyota has claimed that it reached the break-even point for its profitability on its hybrid models. They are providing a service to humanity and the environment while also presumably sustaining a business. I think in the long run it will be where all auto production is headed. According to James Brook of the New York Times. but industry experts in Tokyo find it impossible to know exactly how profitable these cars have been for Toyota so far.BUSNESS SCHOOL OF DELHI CONCLUSION Toyota is making a product that is both good for the society/environment and practical at the same time. We believe that Toyota is acting as a social entrepreneur with these lines of cars.

SHARMA FINANCIAL MANAGEMENT. M.PHILIP KOTLER WEBSITE REFERENCE:Project On Operation Research Page 66 . Toyota was the one to first mass-market and produces these cars with the Prius and deserves much of the credit for leading the way. PANDEY MARKETING MANAGEMENT.K. and Honda all raised their budgets for R&D by ten percent). Nissan.I.BUSNESS SCHOOL OF DELHI limited resource and by the increased competition in the hybrid sector (while Toyota and its competitors do not disclose how much they put into research and development of these cars. Toyota. BIBLIOGRAPHY: BOOK REFERENCE:OPERATION RESEARCH – J.

COM WWW.ERE.COM WWW.TOYOTA.MANAGEMENTPARADISE.THEPENSTERS.COM WWW. H.TOYOTABHARAT.COM WWW. Project On Operation Research Page 67 .COM CONTRIBUTION OF TEAM MEMBERS:- AMARJEET KUMAR: Interpretation.R & Operation Strategy.RESEARCHANDMARKETS.JP WWW.TOYOTA.CO.BUSNESS SCHOOL OF DELHI WWW.NET WWW.

BUSNESS SCHOOL OF DELHI ASHISH KR. Editing ABHISHEK PATEL: Financial Solution Project On Operation Research Page 68 . SINGH: Marketing Strategy .

i .

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