Poster Presentation Toyota Donald Lau Presentation by Lau

Poster Presentation: Toyota Donald Lau Presentation by: Lau Hiu Fung Student number: V 8188813

Agenda • • Headline facts: Toyota Global auto industry trends and orientation Japanese auto industry history with culture Toyota company background – Company history – Production history – Business segments • • • The Toyota Production System Toyota’s strategy The product strategy The balance between price and quality Manage your distribution channels better

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 • 3 rd largest automotive manufacturer

1998 Production Comparison Chart

Global auto industry trends and orientation • • Overcapacity Economic downturn Shifting consumer demands European trade barrier reductions

Company History with culture • 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 >10 M 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

Toyota’s Strategy In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and conduct guidelines that all Toyota employees should embrace. Under the two headings of Respect for People and Continuous Improvement,

The product strategy • Showing better sales and brand recognition because of product characteristics • Showing higher usage because of customer benefits • Especially true in technological products as well as consumer durables sector • Satisfy the customer and they want.

The balance between price and quality • Psychological decision making • Need to decide what type of customers you are going to target • Customers decide the value based on the competitors present in the market

Manage your distribution channels better European Distribution Strategy Showroom Located in Europe Sales channel in Japan SWOT European Distribution Dealers network warehouse

Service Channel in distribution • A technical R&D centre in Belgium • A European showroom located on the Champs-Elysees • 14 parts logistic centre and 9 vehicle logistic centre across Europe • 93, 400 direct job in Europe including the dealer network • More than 8 billion invested in Europe since 1990 for service channel

Japanese auto industry history • From follower to leader • From domestic producer to exporter • Interventionist government