Analysis of Toyotas success.docx

Analysis of Toyotas success.docx

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AnalysisofToyotassuccess

AnalysisofToyota'ssuccess

1.Background

Toyotaisoneoftheworld'stoptenautomotiveindustrycorporation,Japan'slargestcarcompany,foundedin1933,nowhasdevelopedintoahugeindustrialgroup,whichgivesprioritytocarproduction,andinvolvesothersectorssuchasfinancial,machineryandelectronics.Intheearlytime,Toyotawasmainlymanufacturingtextilemachinery.in1933,Toyotaxiichiro,founderofToyota,setupthecardepartmentintextilemachineryproductiondivision,whichstartedthehistoryoftheToyotamotorcompanytomanufacturecars.

Fig.1ToyotaxiichiroFig.2Toyotacar

Figure3isthelogoforToyota.Toyota'sthreeovallogowasusedfromthebeginningof1990,thelargeovalonthelogorepresentstheearth,inthemiddle,twoverticalovalsarecombinedintoaTword,onbehalfofthecompany.

Fig.3thelogoforToyota

ItsymbolizestheconfidenceandambitionofToyotacompanyforthefuture,keepingafootholdonthefuture.Inaddition,itisalsoasymbolofToyotatokeepafootholdonthecustomer,meaningtheguaranteetocustomers.Furthermore,itisasymbolthattheuser'sheartandautomobilemanufacturer'sheartislinkedtogether,withmutualtrust.Atthesametime,thelogoheraldsToyota'ssuperbtechnologyandinnovationpotential,too.

In1937,Toyotamotorindustrycompanywasfoundedwiththecapitalof12millionyen.In1938,Factorybeganproduction.In1950,Toyotasalescompanywasfounded.In1957,ToyotasalescompanyintheUnitedStateswasfounded.Until1972therehavebeen10millioncarsproducedinaccumulation.In1984,Toyota-GMuniversaljointventurecompanystartedproduction.In1988,Toyota'sU.S.companyannouncedopening,In1992,ToyotaBritishcompanystartedbusiness.In1994,ToyotaTurkeyautomobileindustrytradingcompanywasopened.In2014,Toyotabecamethefirstbrandofautomotiveswiththesaleof8.4049millionvehicles.

Beforebecomingthetop1ofautomotivecompaniesintheworldonsales,thedevelopmentoftheToyotaisn'talwaysgoingsmoothly.

2.Thechallengeforthedeveloping

Afterthesecondworldwar,Japanwastransformedintothepost-wareconomicrecovery.Atthismoment,forthefutureofJapan'sautomobileindustry,wasaverydangerousperiod.Forexample,In1949,theJapanesecar'sproductionwasthat25622trucks,1008cars.Thetotaloutputwas26630units.

Fig.4Toyotaworkshop

Atthattime,theJapaneseindustrylaborproductivitywasonlyaboutoneninthtooneeighthofAmericanindustrylaborproductivity.Thiswasaveragelaborproductivityoftheindustrialindustry.ComparedwiththeautomobilemanufacturinginAmerica,whichwasrelativelymoredeveloped,thegapincarmanufacturinglaborproductivitybetweenJapanandAmericawaslarger.

3.Solution

TheJITproductionmode

Confrontedwithsuchagrimreality,Taiichiohno,whowasthedirectorofthesecondmachineryfactoryofmotherfactory,thoughtthereasonforthegapisn'tthatAmericanspaid10timesmoreenergy,theremustbeseriouswasteandunreasonablephenomenonintheproductionofJapanesefactory.ASlongasitcaneliminatethewasteandunreasonablephenomenon,laborproductivityaresupposedtobe10timesasmuchthannow.Theconceptfinallybecamethemostrevolutionary,wellknownforitsextraordinaryproductionmanagementwaytheToyotamodeofJIT（JUSTINTIME）production.Thatistosay,thebasicideaoftheToyotaproductionmodeistothoroughlyeliminatewaste,andthetwopillarsofsupportingthisthoughtis"Just-In-Time"and"Automation".

Sincethen,withthegoalthattocatchupwiththeUnitedStatesinthreeyears,Toyotachallengedtotheoldsystem,strivedforprosperity,foughttenaciously,andovercomeamajorsetback,makinglaborproductivityrisingperpendicularly.By1982,comparedwithGeneralcompanyintheUnitedStates,theproportionoflaborproductivitywascompletelyreversed.Thisyear,GMproduced6vehiclespercapita,whileToyotareachthelevelof55vehiclespercapitaproduction.Intheviewofprofitcreatedpercapita,thisyear,theprofitofGeneralcompanywas$1400percapita,whiletheprofitofToyotawas$14000percapita,whichisexactly10timesasmuchasGM's.

Zeroinventorymanagement

Toyotaisthefirstthatsuggestedzeroinventorymanagementintheglobalindustry.Fornow,itisalsotheenterprisethatisdoingthebestinzeroinventorymanagement.Toyota'szeroinventorymanagementcanmakeitthatasformorethanhalfofthemainrawmaterialsandsemi-finishedproducts,whicharereadytobepreparedatthesceneintenminutesearlywhentheyareneededinproductionline,insteadofbeingtransportedintothewarehouse.Inothertimes,the"stocks"areexpectedtobeontheroad.Zeroinventoryisnotequaltotheinventoryiszero,butbystrengtheningthemanagementonstrengthenyourlogistics,maketheinventoryinthefieldoftimeandspaceasfaraspossibleclosetozero.

Undertheactionofsuchaproductionmodeandthemanagementpattern,Toyotamotorcompanyenteredintoahigh-speeddevelopmentstage.

4.Toyotagraduallystepstowardsthepeak

70sisthegoldperiodofToyota'srapidlydeveloping.From1972to1972,injustfouryears,Toyotacompanyproduced10millioncars,andyearlyoutputofcarsreachedmorethan2million.Inthe80s,thesalesandproductionofToyotastillhasbeenbeingincreasedperpendicularly.Intheearly90s,theyearlyoutputofcarsofToyotahasbeenmorethan4millionnearly5millionvehicles,thusbeatingtheFordmotorcompanyandrankedsecondinautoproductionintheworld.The60sand70sweretheperiodJapan'sdomesticselfgrowth,after80s,Toyotamotorcompanybeganitscomprehensiveinternationalstrategytowardstheworld.IthasestablishedwhollyownedorjointventureintheUnitedStates,BritainandsoutheastAsia.What'smore,theautomobileresearch&developmentcenterhasalsobeeninthelocal,implementingthestrategyoftheinternationalizationoflocalresearchanddevelopmentdesignproduction.Untilnow,Toyotahasleapedtothetop1ofglobalautomakers,andtheprofititcreatedismorethanthesumofthefirstandsecondautocompanyintheworld.

Toyotacanachievesuchasuccessisderivedfromallaspects,thefollowingwillbetakenfromdetailingallaspectsoftheToyotamotorcompany.

5.TheanalysisofToyota'ssuccess

（1）Modeofproduction

Toyota'sJITproductionmodeisveryfamous,whichmeansJUSTINTIME,mainlyincludingfouraspects.

Fig.5Toyotaproductionmode

Completelyreasonable

Toyotahasareputationfor"stingy"civilization,withthebriefof"itisexpectedtobesuppressedeventhoughthetowelisdry",whichembodiesthespiritofToyotathoroughlyrationalization.Toyotamotorcorp.,thinksthatwastemainlycomesfromtwothings,oneisthesceneoftheproductionwaste,theotheristhewasteofoverproduction.Asaresult,Toyotamakesstrictlycontrolofthetwokindsofwasteintheactualproduction.

Smartautomation

IntelligentequipmentsarewidelyusedinproductionprocessofToyota,includingthelocationofparkingsystem,comprehensiveoperation,qualityinsurancedevice,etc.Whenthemachineencounterssituation,itcanautomaticallystop,andthenberepairedbythestaff.Inthiskindofintelligentmanufacturingprocess,amemberofstaffcanmanageseveralmachineswithafewworkinghours,greatlyimprovingproductionefficiency.

Threeintime

Theso-called"threeintime"istosupplytherequiredpartwhenitisneededintime,accordingtotheneedednumbertosupplyeachworkingprocedureintime,andensureitwillbeprovidedintimewhateverisneeded.Frankly,itmustensurethatneededpartwillbesuppliedintimewhenitisneeded,andthenumberofneededpartsalsoshouldbematchtheneed.

Boardmanagement

Boardmanagementmethodistotransfertheflowofinformationorlogisticsinthesameprocedureorbetweenbeforeandafterprocedure.JITisakindofpullmodeofmanagement,whichneedsaprocessthatthelastprocedurepassestheinformationtoupperprocedure,throughinformationflow.Thiskindofinformationcarrieristheboard,andwithouttheboardJITcan'tbecarriedout.Asaresult,theJITproductionmodearesometimescalledboardproductionmode.

（2）Productionoperationsystem

Continuousimprovement

Inthepastfewdecades,Toyotaovercomealotofdifficultiesthatmostofthechangesmayencountered.Whetherothercompetitorsmakethisshift,Toyotawillnotstopthepaceofhis.

ThesystemofToyotaproductionisanewmodeofoperation,undertheconditionthatthetraditionalmodeofoperationwhichincludesexpandingproductionscaleandincreasingproductyieldbecomesoutdated.Thewaytoseekprofitsiscuttingcosts,andthroughsmallbatch,combinedwithmanykindsofproducts,toopentheroadsofproductsale.

WinthroughCooperation

After80s,Toyotabeganitscomprehensiveinternationalstrategytowardstheworld.IthasestablishedwhollyownedorjointventureintheUnitedStates,BritainandsoutheastAsia,andlocatedautomobileresearch&developmentcenterinthelocal.Besides,ToyotamakecooperationwithGM,MitsubishiandChinafawsuccessively.

Fig.6Cooperation

Customerfirst

ThereasonforToyotabecomingastrongchallengeroftheoriginalcarmakersinEuropeandtheUnitedStates,isnotonlybecausehisuniquemodeofproduction,mostimportantly,butalsoowingtothe"customerfirst"businessphilosophy,whichwasadvocatedbyitsleader.

（3）Productdevelopmentstrategy

Placeemphasisonresearch

Toyotamotorcompany,sinceitsinception,paylotofattentiontomarketresearch.Toyotamotorsalescompanyestablishedmarket