Japan Korea Trip Presentation: Toyota

Japan / Korea Trip Presentation: Toyota

Aaron Fyke Yuki Wada Gary Mi Grace Webber Tony Palumbo

Agenda

Headline facts: Toyota Global auto industry trends Japanese auto industry history Toyota company background Company history Production history Business segments The Toyota Production System Toyota’s strategy Our questions for Toyota

Headline Facts: Toyota

Toyota has annual sales of $120 Billion Produces ~5.5 million vehicles per year From 56 manufacturing plants across 6 continents Employs ~200,000 people 3rd largest automotive manufacturer

1998 Production Comparison Chart

Global auto industry trends

Overcapacity Economic downturn Shifting consumer demands European trade barrier reductions

Company History

Established in 1937 out of Sakichi Toyoda’s weaving machine company Launched first car (SA Model) in 1947 “Toyota Production System” formed in 1950 based on Just-In-Time principle First global expansion in 1959 at Brazil In 1972, cumulative production >10M units

Production History

Business segments

Automotive Design, manufacture and sales of passenger cars, recreational vehicles, SUVs and related parts Financial services Provisions of loans to car buyers and car dealers Others Industrial vehicles (forklifts, etc.)

The Toyota Production System

Revolutionized manufacturing industry At its core is “lean” a relentless drive to improve efficiency and eliminate waste Beginnings of TPS were born out of necessity due to lack of resources in post-war Japan.

Toyota Production System Key Main Concepts

SMED Single Minute Exchange of Dies Promoted flexibility of production runs JIT Just In Time manufacturing Small batches which reduced inventory costs, tightened relationship with suppliers and improved quality control

Toyota Production System Key Main Concepts

“5 Whys” Quality Asking “Why?” 5 times to locate source of problems Stopping the production line whenever there are quality problems to ensure they are not repeated Low cost supplier Long term supplier relationships

Toyota’s Strategy

Increase competitive strength through advanced technology Environmental technology fuel consumption, emission, recoverability Hybrid vehicles and next generation fuel cells Cost-reduction efforts discontinuation, integration of older models Increased emphasis on financial services and information communication system

Our questions for Toyota

Current competitive landscape Local and global competition (Korea, Daimler-Chrysler, Ford, GM etc.) Future of automobiles Development of fuel-cells, integration of Internet applications and other trends

Japanese auto industry history

From follower to leader From domestic producer to exporter Interventionist government