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Prepared by: Ali-Jaffer Ansari ± Student ID 3746276 Dilnoza Ishanhodzhaeva± Student ID 3210662 Anastasia M. ± Student ID 2549724
Table of Contents History of Toyota y Early Days y The Automobile Beginning y Move to Europe y Innovations and expansion in Europe (Market Share) The Toyota Way y The Toyota Way y Production System Japanese Culture y Japanese Culture Challenges of Toyota in EU & Solution European Union & Toyota y European Union y Challenges to Toyota ± Pre-European Union Why Toyota Worked in Europe .
2) Never create defective products. he kept working to improve the design for the next three decades. which if calculated in the current value would be somewhere around $10 million. he established the Toyoda Automatic Loom Works ± where his loom design effectively gave ³automatic´ its real meaning when the looms would automatically stop if there was any slightest problem or any irregularity in production. This was the same year when the logo name changed from .History of Toyota Early Days The history of Toyota is quite unprecedented in many ways . This gave Toyada his firmly established manufacturing principles: 1) Stop operations automatically whenever any irregularity is found in the production. corporate executive and taxi companies. trying and making mistakes.the concept of Kaizen stems from the earliest days thanks to the hard work and dedication of Sakichi Toyada the founder of Toyota. when he decided to build a better loom then the one his mother was struggling with. In 1926. His automatic looms where so successful that in 1929 a British textile firm Platt Brothers bought his Type-G automatic loom rights for one million yen. Keeping the Kaizen concept at heart and Genchi Genbutsu -the first production car Model AA Sedan became the company¶s first and only car in 1936 being used mainly by government officials. The Automobile Beginning In 1933 Sakichi Toyada son Kiichiro Toyada created the automobile department. 3) Don¶t make people constantly watch over machines. And he didn¶t stop there. after completing his first automatic loom. impressed by the industrial advances in the USA Kiochiro decides to establish a Japanese automobile company and started production on the basis of Genchi Genbutsu philosophy which simply means that success only comes with watching.
Toyota opened manufacturing departments. In the same year Toyota answered the European Markets demand and catapulted their market share and sales record by introducing a car that became Europe¶s Most Popular car ± the Yaris. In 1963 Toyota exports it first vehicle to Europe. The result was the Yaris model designed by a Greek designer which later on became one of the most popular car in Europe and later the world. before Yaris Toyota¶s cars were not that popular to the European market ± the designs didn¶t suit many consumers preferences. By 1976 Toyota had already exported a million cars to Europe. Later in 1970 Toyota opens its first office in Europe ± the Toyota Motor Corporation Brussels Office opened in Belgium and by 1971 Toyota started assembling vehicles in Portugal. Toyota had already established various manufacturing departments and Research and Development departments in Europe. the removal of non-tariff barriers and the ease in the free trade zone policies catapulted Toyota¶s expansion throughout the various European market to which it previously had difficulty in acquiring. The Yaris was the Toyota¶s way to secure (what was then) a losing market. A new Toyota facility in France began producing the Yaris in 2001. In April 2002. Toyota began full production of cars and engines in the United Kingdom. Toyota noticed these requirements and came up with an ingenious plan which consisted of a design competition for the various designers in Europe to come together at the Toyota¶s R&D facility in France and design the next best European car. established itself as a major strategic manufacturing . they decided to go with Toyota because the design looked less clustered and sounded much crisper and clear.the Toyota Technical Centre was established in 1987 in Belgium to be the home of Toyota Motor Europe¶s Research and Development (R&D). Also in 2002. 400 Crown models where exported to Denmark ± then Toyota¶s only European export Market. Research and Development departments and marketing departments specific to the European market needs and preferences. finding a need to expand in Europe and to better serve the growing European Market . Innovations and expansion in Europe (Market Share) In 1992. making Denmark its first European export market when the Danish car dealer Erla Auto Import approached Toyota. Move to Europe Toyota later on gave birth to the concept of ³pull´ production system and implemented ³Kanban´ ± a concept that reduces production time and inventory in contrast to mass production system and formalizes it as the Toyota Production System (TPS) which is the precursor of now famous ³Just in Time´ production system. the European Union lifted the remaining non-tariff barriers across Europe which gave Toyota an opportunity to expand its operations in Europe. the company actually held a public competition to design a logo for their new Model AA Sedan (then Toyota¶s only car). Toyota Motor Manufacturing Turkey (TMMT).Toyoda to Toyota. located in Adapazari. In the year 1999. Toyota opened a new plant in Poland to build transmissions. Since the character for Toyoda was quite complex. Purchasing and Production Engineering operations and later was expanded to Toyota Training Centre which was completed in 1990.
Toyota¶s new diesel engine plant in JelczLaskowice. . which are now exported to European countries and beyond. and Corolla Verso . y Continues improvement The second pillar of Toyota way is continues improvement. Toyota views its employees as depository and a source of knowledge which accumulates Chie. suppliers. µcoexistence and co-prosperity¶.000 units.) the Toyota way is characterized by two main pillars: respect for people and continues improvement. Toyota firm believes one of the most powerful and significant contributors toward Toyotas operations are associates ±including employees at any level (from top management to lower level employees). The St. All of Toyota¶s best-selling European models ± AYGO. The approach helps in building trust and teamwork in all level of organization. The structure of organization is horizontal to avoid hierarchical barriers and towards achieving mutual respect and recognition in all levels of organization. Toyota Global. which is a joint venture between Toyota Motor Corporation and PSA Peugeot Citroën. Avensis. Petersburg plant assembles the Camry and has an annual production capacity of 50.centre for Corolla vehicles. which creates environment where each member feels they are part of a bigger picture. customer and community that effecter by Toyota operation. Yaris. y Respect for people The first pillar of Toyota Way in centered on human resource. Poland. This is achieved through breaking down bureaucratic barriers and through knowledge sharing network. Toyota constructed structure where all employees can take mutual responsibility and work toward solutions which take in a holistic decision-making approach. Auris. means wisdom of experience . TMMT started production of the Corolla Verso. (Toyota Timeline stats. Czech Republic. 2010) The Toyota way The Toyota way According to (Jeffrey K. Toyota encourages philosophy of kyoson kyoei. investors. began operations in 2005 as did the new vehicle manufacturing plant in Kolin. Liker.are now built in Europe. In 2004. Toyota¶s expansion in Europe continues with the start of production at the new manufacturing plant in Russia in 2007.
in order to eliminate muda. Individuals are motivated to maintain wa (harmony) and participate in group activities Hard working (work 6 days and 60 hours per week). and appropriate behaviour Value peace and economic progress Culture highly regards new ideas and technology Traditionally: long-term Japanese work life: continues training (³the emphasis is on productivity.What have job we learned to help us do the job better´). A focus on finding improvement to that standard. (³The Japanese language is complex. nor should parts have to wait around worker. Personality: self-confident. Japanese Culture Japanese Culture y High context culture (³words have many possible interpretations. property. Liker) Production system Just-in-time manufacturing: efficiency-based analysis: ³workers shouldn¶t have to wait around for instructions or parts. the following of that standard. and flexible. and predictable. sentence frequently are left unfinished so that another may make a conclusion)´. (Jeffrey K. and the real burden of training is on the learner. y y y y y y y y y y y y y . ³waste´ (Jeffrey K. demonstrating sense of order. Liker). meaning is derived from matching words with nonverbal cues and the specific situation. relationship factors. Liker) ³kaizen is never ending efforts towards organizational improvement´. subtle. (Creation of standard while always actively searching for a better way).According to (Jeffrey K. Respect for nature and harmony between human and nature. follow cultural norms´). The Three vital stepsare: y y y creation of standard. People manifest high education abilities Formidable technological skills Powerful social coordination Meticulous methodical Language: ambiguous terminology is preferred.
(Toyota case study) Training Certpoint. Toyota company provides classroom based training but in order to increase their sales and becoming the number one company in providing customer satisfaction made centralization of its training operations a primary goal to strengthen and unify the brand image´ One of the challenges was to developing an IT-based infrastructure to support e-learning across EU. was designed by EU and was the first to be developed within region. In Japan. in other term ³just in time´ production supports this point. where as in EU culture they separate work and private life. Japanese have their own philosophy and their way of working in managing their employees and training. Toyota open up additional production centers in EU to manufacture their vehicles in Europe. Also. (Toyota Case Study) Toyota best-selling car (Yaris in the EU). European Union and Toyota . Where Toyota is should take into consideration languages and the cultural and legal differences that exist between different EU countries. Since Japanese culture differs from EU culture in terms of production. In order to make e-learning system user friendly which will not require depth knowledge of IT other than how to use a PC and modern skill level? The CERTPOINT provided package of Learning Management system to support Toyota¶s business object. The value respect for nature and believe in there is harmony between human and nature. When comparing to EU they are more into mass production. Toyota has introduced new strategy of designing cars targeted specifically at European customers. Harris and Moran. R. 2008 ³Originally. 2007) Challenges of Toyota in EU and Solution Culture The challenge in terms of culture is that Japanese culture differs from EU culture.(Moran. working life is part of Japanese life. Another aspect of Japanese culture is ³they take what they need not what they want´ do not waste their time and energy in something they don¶t need.
in essence. They created a new way of coming together to manage their joint interests. which in turn turned off many people from buying Toyota. a quota system was in place that placed individual caps for each country in Europe. Overall it made life a little easier for Toyota and many other international companies attempting trade in Europe. and it is a political and economic stage designed to compete with countries such as US (Carbaugh 2009. Why Toyota Works in Europe Toyota managed to work in Europe. A huge side effect of said system was that it created long waiting lists for Toyota. (Case Study) The Maastricht treaty signed in the early 90s changed a lot for the European Union. Germany. These changes have. 1953 to be exact. based essentially on economic integration´ (Gateway to the European Union). They¶ve established a stronghold in Europe by opening up factories. Robert J. South-Western Cengage Learning. not only did it introduce the Euro. The European Union is an economic and political union and the result of two political factors: aftereffects of two World Wars which had left most of Europe in a troublesome financial situation. 2009. because they seized the opportunity and took advantages of changes made to the EU policies post the singing of the Maastricht treaty. International Economics. Challenges to Toyota Pre-European Union As part of the European Community agreement. France. production and a research and development center geared to ensure they are aware of their customers¶ needs throughout Europe and can meet those needs with relative ease and financial economy for the company as well as people buying the car.European Union When dealing with the European market. 272-7). Luxembourg and the Netherlands. The quota system existed to protect the domestic industry so as not to let an external company come in and establish a monopoly. today one has to consider the European Union. Italy. ³The EU began life in the 1950s. (Toyota in Europe) References Carbaugh. in part. . allowed Toyota to change their strategies to firmly cement themselves in Europe. but it also dropped the quota system and eased up on the tariffs. 12th ed. design facilities. as the European Economic Community with six founding members ² Belgium.
A Golden threat of Knowledge. Managing global differences: Global leadership strategies for the 21st century. S. 2011. Toyota Global. Jeffrey K. Toyota Motor Europe. 2008. Liker. http://europa. 2011) Toyota in Europe. Annual Report retrieved from http://toyota. 2008. 2007. R.Gateway to the European Union. 7th ed. Available: (Accessed 02 March 2011).eu (Accessed: Feb 22. Elsevier Press: Oxford . Harris and Moran. 2010)http://toyota.eu (Toyota Timeline stats.eu Certpoint. The Toyota way Moran.
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