Project Report on Totota Kirloskar Motor by Piyush Prasanna

INTRODUCTION TO STUDY

As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar

Motor Private Limited (TKM) aims to play a major role in the development of the automotive

industry and the creation of employment opportunities, not only through its dealer network, but

also through ancillary industries.

TKM's growth since inception can be attributed to one simple, yet important aspect of its

business philosophy -"Customer First". While managing growth, TKM has maintained its

commitment to provide quality products at a reasonable price and has made every effort to meet

changes in customer needs.

TKM firmly believes that the success of this venture depends on providing high quality products

and services to all valued customers through the efforts of its team members. 

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together"

philosophy of its parent company TMC to create long-term business growth. In this way, TKM

aims to further contribute to progress in the Indian automotive industry, realise greater

employment opportunities for local citizens, improve the quality of life of the team members and

promote robust economic activity in India. 

STUDY DETAILS

OBJECTIVES OF THE STUDY

To identify the organizational culture and structure of Toyota Kirloskar Motor, Bidadi

To study the various departments and their functions.

To study about the various products and services offered by the company.

To study the day to day activities of Toyota Kirloskar Motor.

To make a SWOT analysis of this organization to understand and suggest measures to

overcome the weaknesses and threats within the scope of this study.

To suggest marketing strategies, in order to increase dealer sales as well as promote

Toyota as a Brand in Rural areas under TKM’s “Going Rural” campaign

SCOPE OF THE STUDY

Useful for academic purpose and further reference.

Provides information about the functioning of the Automobile industry in India.

LIMITATIONS

Time was a limiting factor during the study.

Some core data could not be collected due to confidentiality policies of the company.

INDUSTRY PROFILE

The automotive industry designs, develops, manufactures, markets, and sells the world's motor

vehicles. In 2015 estimated rate of growth of India auto industry is going to be 10 percent. Auto

industry in India has been hit hard by ongoing global financial recession. Sales figures of India

automobile industry for December 2008 have shown devastating after effects of global financial

slowdown. In 2008, more than 70 million motor vehicles, including cars and commercial

vehicles were produced worldwide. In 2007, a total of 71.9 million new automobiles were sold

worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and

Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.

The markets in North America and Japan were stagnant, while those in South America and Asia

grew strongly. Of the major markets, Russia, Brazil, India and China saw the most rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there were about

806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of

gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and

India. In the opinion of some, urban transport systems based around the car have proved

unsustainable, consuming excessive energy, affecting the health of populations, and delivering a

declining level of service despite increasing investments. Many of these negative impacts fall

disproportionately on those social groups who are also least likely to own and drive cars. The

sustainable transport movement focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry are

experiencing a combination of pricing pressures from raw material costs and changes in

consumer buying habits. The industry is also facing increasing external competition from the

public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of the

US's fifty one light vehicle plants are projected to permanently close in the coming years with the

loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade.

AUTOMOTIVE INDUSTRY IN INDIA

The Automotive industry in India is one of the largest in the world and one of the fastest

growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4

wheeled) and exports about 2.33 million every year. It is the world's second largest manufacturer

of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and

commercial vehicle manufacturing industry is the seventh largest in the world, with an annual

production of more than 3.7 million units in 2010. According to recent reports, India is set to

overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-

18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged

as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive

vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second

fastest growing automobile market in the world. According to the Society of Indian Automobile

Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and

more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes

with approximately 611 million vehicles on the nation's roads.

A chunk of India's car manufacturing industry is based in and around Chennai, also known as the

"Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered

in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent

of the country's automotive exports. Gurgaon and Manesar  in Haryana are hubs where all of

the Maruti Suzuki cars in India are manufactured. The Chaka corridor near Pune, Maharashtra is

another vehicular production hub with companies like General

Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land

Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata

Nano plant

General Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan

Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive

manufacturing regions around the country.

COMPANY PROFILE

HISTORY OF TOYOTA

Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first power loom

and in the process revolutionised the country's textile industry. January 1918 saw him create the

Toyoda Spinning and Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi

fulfilled his lifelong dream of building an automatic loom in 1924. The establishment of Toyoda

Automatic Loom Works followed in 1926.

Kiichiro was also an innovator, and the visits he made to Europe and the USA in the 1920s

introduced him to the automotive industry. With the £100,000 that Sakichi Toyoda received for

selling the patent rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor

Corporation, which was established in 1937.

One of the greatest legacies left by Kiichiro Toyoda, apart from TMC itself, is the “ Toyota

Production System” (TPS) and Kiichiro's "just- in-time" (JIT) philosophy -producing only

precise quantities of already ordered items with the absolute minimum of waste viz. a key factor

in the system's development. Progressively, the ‘Toyota Production System’ began to be adopted

by the automotive industry across the world.

Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the largest

vehicle manufacturer in Japan with over 40% market share. Toyota began to make inroads into

foreign markets in the late 1950s. The first Crown models arrived in the USA in 1957, and by

1965, with models such as the Corolla, Toyota began to build its reputation and sales to rival

those of domestic producers. The first Toyota imported into Europe was via Denmark in 1963.

Toyota has continued to grow in Europe's sophisticated and complex market, and in 2000 the

company delivered its ten millionth cars to a customer in Germany. In fact, growth is currently

one of the main words in Toyota's European vocabulary .Toyota is number one for customer

satisfaction in the majority of European countries and has built an excellent reputation across

Europe for reliability and customer service. This enviable reputation, along with the support of a

network of more than 25 distributors and 3,500 sales outlets, are important factors in supporting

Toyota's European sales growth in the coming years. In less than 70 years, Toyota Motor has

gone from being a tiny spin-off of a textile loom maker to the world's biggest automaker, guided

by a culture of "kaizen", or continuous improvement and a tireless effort to eliminate waste.

We see this corporate tradition continue through decades of its existence. Since the company

manufactured its first passenger vehicle in 1936, Toyota has continuously pursued the number

one position for total customer satisfaction in all areas, ranging from manufacturing and products

to sales and service. Toyota exported its first Japanese-made passenger car to the United States in

1957. Since then, Toyota has steadily expanded its global presence with the establishment of

overseas bases.

Toyota's Lexus and Toyota branded vehicles rank annually among the world's highest quality

cars in third party surveys of customer satisfaction. Using such success as a springboard, Toyota

is pursuing a policy of sustained development and hopes to use innovation and strong R & D to

create cars that are greener, safer and more fun to drive. 

As a global company, Toyota realizes that local commitment is a prerequisite to success on a

worldwide scale. Toyota's activities are highly appreciated around the world, a result of the

company's devotion to customer-oriented activities and social contributions in every market it

operates.

HISTORY OF THE KIRLOSKAR GROUP

The Kirloskar Group is India’s largest engineering and construction conglomerate. The

Kirloskar Group is made up of 8 major group companies which export to over 70 countries. The

Indian promoter Kirloskar group is a century old industrial legacy having a strong presence in

various segments of engineering industry. The Kirloskar group is engaged in manufacturing of

transformers, electric motors, diesel engine, compressor, machine tools etc. it also has its

presence in industrial casting and pollution control equipment manufacturing. The group is

mainly concentrated its manufacturing facilities in and around Karnataka and Maharashtra

Today, the Kirloskar Group is a conglomerate with interests across a diverse range of industries.

It is still spurred by the simple yet profound ethic born with Laxmanrao Kirloskar that where

there is will there are many ways.

TOYOTA KIRLOSKAR MOTOR

LOGO:

Toyota Kirloskar Motor Pvt. Ltd

TKM is a joint venture between TMC, Japan and Kirloskar Group, India.

As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar

Motor Private Limited (TKM) aims to play a major role in the development of the automotive

industry and the creation of employment opportunities, not only through its dealer network, but

also through ancillary industries.

TKM's growth since inception can be attributed to one simple, yet important aspect of its

business philosophy -" Customer First". While managing growth, TKM has maintained its

commitment to provide quality products at a reasonable price and has made every effort to meet

changes in customer needs.

TKM firmly believes that the success of this venture depends on providing high quality products

and services to all valued customers through the efforts of its team members. 

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together"

philosophy of its parent company TMC to create long-term business growth. In this way, TKM

aims to further contribute to progress in the Indian automotive industry, realise greater

employment opportunities for local citizens, improve the quality of life of the team members and

promote robust economic activity in India. 

All Toyota employees are expected to embody these values in their daily work, including

environmental protection activities. To "respect" the environment, we go to the source to identify

and analyse problems ("Genchi Genbutsu"), move forward to "challenge" conventional ideas and

old habits, to improve further ("kaizen") through "teamwork."

The framework provided by ‘The Toyota Way’ enables our company to respond to, among other

things, the environmental challenges at various stages of the life-cycle of a vehicle. These

include greenhouse gas emissions, waste reduction, increased recycling and the banning of

hazardous substance use in parts and components. These challenges will have inevitable

consequences for Toyota's organisation and employees, and we must balance them with our

desire for future growth. In 1992, the Toyota Guiding Principles were established in direct

response to the international initiatives agreed to at the Rio 'Earth Summit.' This summit

focussed on the potential for a clash between trade and environmental rules, and resulted in a

statement of principles about forest management, conservation and sustainable development.

The Toyota Guiding Principles are a cornerstone of our corporate management philosophy.

These principles were updated in 1997, to ensure they continue to provide Toyota with a clear

path towards achieving sustainable development.

These principles have been explored and developed in Toyota's Global Vision 2015, adopted in

April 2008, which proposes a series of long-term policies on the theme of "Innovation into the

Future." Toyota's Global Vision 2015 guides management in its response to long-term social

changes, combining consideration for the environment, the benefit to our customers of value-

added products and the encouragement of our employees through shared prosperity and social

involvement.

Based on the Guiding Principles, which codify Toyota's business spirit, the Toyota Earth Charter

(adopted in 1992 and revised in 1997) embodies a comprehensive approach to global

environmental issues. It outlines Toyota's basic policy and action guidelines towards effective

environmental management and improvements. The Toyota Earth Charter underlines a

commitment to environmental excellence, not only through broad principles, but in concrete

examples of what can be done through action guidelines. In connection with the Toyota Guiding

Principles and the Toyota Earth Charter, a European Environmental Policy was developed as a

means of linking principles, goals, targets and action plans with management structures and

systems.

TKM firmly believes that employees are the main source of strength for the organisation. The

human resources management in Toyota seeks to create a corporate culture where values such as

"Continuous Improvement" and "Respect for People" are fully reflected in all actual corporate

and individual activities. The company takes maximum care to ensure stability of employment

and strives to improve working conditions.

To develop human resources and improve the technical skills of its employees, TKM's young

team members are regularly sent to Japan, Indonesia and Taiwan for training programs. More

than 425 team members have benefited from such programs at various Toyota plants worldwide.

TKM also believes in continuously improving its products and practices. Every team member is

encouraged to give suggestions to improve the product, efficiency of processes or working

conditions. They are also appropriately rewarded for the same. Thus TKM seeks to progress by

empowering its employees.

Toyota Kirloskar motor (TKM) has the proud heritage of both these fine establishments. The

company, according to its mission statement aims to play a major role in the development of the

automotive industry and the creation of employment opportunities, not only through its dealer

network, but also through ancillary industries with a business philosophy of ‘Putting Customer

First’. At present the Camry, Corolla, Innova and Prado are the successful cars of Toyota on

Indian roads. The Corolla and Innova are produced at TKM whereas Toyota Camry and Land

Cruiser Prado are imported as complete built units.

Also, TKM is opened a second new plant in 2oo8 marking the beginning of a second era for

TKM. It is poised to be not just a plant, but also a commitment to society and the earth, aiming to

create a new motorization future for India. Toyota’s new plant is playing a significant role in

promoting employment and technology transfer in India.

TOYOTA KIRLOSKAR MOTORS PVT LTD QUICK FACTS

Date Of Establishment 6-Oct-97

Chairman Mr. Fujio Cho

Vice Chairman Mr. Vikram S Kirloskar

Managing Director Mr. H. Nakagawa

Deputy MD'sMr. Sandeep Singh

Mr. S. Tomonaga

DMD, Commercial Mr. Shekar Viswanathan

Paid-In Capital Rs. 7 billion

Shareholders

Employees

Average Life of the Plant

Toyota Motor Corporation (89% equity)

Kirloskar Group (11% equity)

4986 members as per June 2010

29 Years

LOCATION AND CONTACT DETAILS

The Toyota Kirloskar Motors manufacturing plant is situated on the outskirts of Bangalore City

in the Bidadi Industrial Area of Ramanagar taluk, Karnataka. It is spread over an expanse of 432

acres of land (approx 1.744848 sq. mts) of which approximately 20 percent has been utilized

presently for phase 1. The surrounding environment consists of lush greenery and hillocks dotted

with beautiful trees and vegetation since it is situated on the green belt. The natural setting is

synonymous with Toyotas eco conscious approach to its business of manufacturing automobiles

and complements the well planned and built facility.

TKM ADDRESS AND CONTACT DETAILS

TOYOTA KIRLOSKAR MOTOR PVT.LTD (TKM)

PLOT NO.1, BIDADI INDUSTRIAL AREA, BIDADI

RAMANAGAR DISTRICT

PIN-562 109, KARNATAKA INDIA

TEL:+91-80-6629 2929

WWW.TOYOTABHARAT.COM

BANGALORE UB CITY OFFICE

(Sales and marketing div)

10TH FLOOR, CANBERRA BLOCK

UB CITY, NO.24 VITTAL MALYA ROAD

BANGALORE -560 001

KARNATAKA INDIA

ORGANISATIONAL PERFORMANCE:

MARKET SHARE:

COMPANY MKT SHAREMARUTHI SUZUKI 37.1

HYUNDAI 16.1TATA 11.7

MAH & MAH 11.6T0YOTA 6.4

GENERAL MOTORS 4.3FORD 3.7

VOLKS WAGEN 2.9

PRODUCTION: 80,000 UNITSSALES: 80,000 UNITSEFFICIENCY: 94%

HONDA 1.8SKODA 1.4NISSAN 0.9

FIAT 0.8BMW 0.5

VISION and MISSION

VISION

The vision of Toyota Kirloskar Motor is to:

1. Contribute to Indian industry and economy, technology transfer, HRD, Global standard

vehicles at a competitive price.

2. Contribute to the improvement, well being and stability of the team members.

3. Contribute to the overall growth of its business associates and its promoters.

MISSION

The Mission of Toyota Kirloskar Motor is to:

1.

2. Design, manufacture and market automobile in India and in overseas market, to maintain

a high quality, to meet the expectations of the customers, always delight the customer by

exceeding the quality level by providing goods and effective after sale service.

3. Perceive Kizen, maintaining flexible organisation, working schedule and staffing plan

which enables the company to respond to fluctuations of production volumes and

increase the productivity.

4. Providing a conducive and safe working environment where all team members can work

with safety with a sense of security.

5. Provide the highest possible value addition to customers, team members, investors and

community at large.

THE TOYOTA BUSINESS PRINCIPLES-

Creating a Prosperous Society Together by Making Things and Making

Automobiles -

Toyota hopes that the 21st century will be truly prosperous for society, and aims to grow as a

company together with its stakeholders, including customers, shareholders, business partners,

and employees, through making things and making automobiles, while seeking harmony with

people, society, the global environment and the world economy.

In order to put these management principles into practice, the "Guiding Principles at Toyota

Motor Corporation" were established as the fundamental management policy (see below). These

principles were adopted in 1992 to codify the business spirit handed down since the company's

foundation, and revised in 1997 to add the stipulation of legal compliance.

THE TOYODA PERCEPTS:

1. Be contributive to the development and the welfare of the country by working together,

regardless of position, in faithfully fulfilling your duties.

2. Be ahead of the times through endless creativity, inquisitiveness and pursuit of

improvement.

3. Be practical and avoid frivolity.

4. Be kind and generous; strive to create a warm, home like atmosphere.

5. Be reverent, and show gratitude for things great and small in thought and deed.

The Spirit of the Toyota Precepts Passed on since Toyota's Foundation -

The Toyoda Precepts, passed on from the time of Toyota's foundation up to the present day, have

acted as the core of Toyota management. The precepts capture the thinking of the founder of the

Toyota Group, Sakichi Toyoda, and have become the basis of the Guiding Principles at Toyota

Motor Corporation.

Initially this did not have a definite shape. However, with the growth of the scope of the

company, the need arose for the principles to be codified so that they could be propagated among

employees. Risaburo Toyoda and Kiichiro Toyoda, in the pioneer days of the company, gathered

together the teachings of Sakichi Toyoda and published them in the form of the Toyoda Precepts

on October 30, 1935, the fifth anniversary of his death.

Compliance -

Toyota defines compliance as "Comply with ethics, laws and internal rules/policies in engaging

in business" — in other words, not acts contrary to society's rules, nor carries out actions that

could be criticized by society. Toyota believes that to be a good corporate citizen, it is essential

that compliance permeates the entire company.

Infiltrating the Management Principles -

The Guiding Principles at Toyota, which are based on the Toyoda Precepts, clearly announce

Toyota's management concepts. The first clause of them is "Honour the language and spirit of

the law of every nation and undertake open and fair corporate activities to be a good corporate

citizen of the world" — establishing compliance as one of Toyota's management principles.

Executive management takes every opportunity, e.g. the New Year's greeting each year, to

disseminate the management principles. And throughout the year, Toyota works to continually

advance its management principles through a variety of education and training programs and on-

the-job training.

SOCIAL CONTRIBUTION

Toyota Kirloskar has always striven to go beyond the business of just making great cars .In fact

Toyota has been known the world over for having taken issues pertaining to care for people, the

environment and the society very seriously and this culture is deeply rooted in the culture of

Toyota. Given below are a few significant social contribution activities undertaken by Toyota

Kirloskar Motor:

Local Area Development –

TKM uses every opportunity it gets to partner with other companies, schools, colleges and

businesses to support community development programmes in and around its production facility.

These encompass a wide array of activities that primarily include providing food, clothing and

shelter to the underprivileged masses. Toyota has also extended its helping hand to the state

police department by rebuilding the Kengeri police station .The renovated structure now is

bigger in area and is better equipped functionally and aesthetically ,sporting new furniture and

facilities.

Educational Support –

Toyota understands the important role that education plays in shaping society. Hence, it has

taken many steps to promote education among the backward sections of society and spread

literacy. In this regard Tkm has reconstructed a residential school at Bidadi that houses close to a

hundred underprivileged students, moreover it has also partnered with local schools in and

around its plant at Bidadi especially in Ramanagara district in contributing books, bags,

stationary and even computers for school children.

Since 2003 TKM came with Toyota Technical Training Institute (TTTI) of providing technical

education to 64 poor students every year in their premises after their SSLC education and

provide the job opportunities to them after their education and training.

Safety Initiatives –

Toyota has successfully pioneered an interactive learning programme on traffic safety for young

school children called the Toyota Safety Education Programme or TSEP. The primary purpose of

the initiative was to educate and spread awareness on basic road safety and awareness among

young school children throughout the numerous schools in Bangalore.

Disaster Relief –

Toyota Kirloskar Motors has contributed generously in the past to the victims of natural

calamities .It had contributed financial aid to the tune of twenty five lakhs to the Prime ministers

relief fund towards the victims of the Tsunami disaster and it also played a pivotal role in the

distribution of food, water and clothing in the earthquake hit areas of Gujarat and recently they

supported financial support when Tsunami hit Japan in 2011.

Environmental Protection and Conservation –

Toyota has taken numerous steps to spread eco-consciousness that include tree planting drives

and organizing functions and seminars to educate people on proper waste disposal, rain water

harvesting and using alternate clean sources of energy. In fact during my study visits to the

Toyota plant preparations were being made towards conducting an ‘Aforestration drive’. Toyota

has also begun an ‘Eco spirit campaign’ which works at promoting environmental awareness

among school children again through fun yet innovative learning methods such as painting and

quiz competitions .

Promoting the Japanese Language –

Tkm has agreed to grant financial aid to the Bangalore University in assisting in the development

of the Japanese language for the period between 2004 and 2007 by conducting courses and

programmes and sponsorship of a tutor and necessary study resources to further its cause. In fact

Tkm has signed an MOU with Bangalore University in this regard.

Social and Industrial Growth –

Toyota aims to develop and strengthen the Indian automobile industry through its product

offerings and creation of large employment opportunities which will be instrumental in its

overall mission of promoting sustained and shared growth and thereby improving the quality of

life and affect a robust economic activity in India.

Dealer Profile

RADHA KRISHNA TOYOTA AUTOMOBILE (PVT) LTD

Radha Krishna Toyota Automobiles was established in 2008. Radha Krishna Toyota automobiles

were the second authorized dealers of Toyota.

Commanding Presence:

Radha Krishna Toyota Automobiles as a centralized air-conditioned showroom of Toyota

automotives its kind in Hyderabad, spread gracefully and decorated elegantly over an

impressive 8100 sq.ft at Hyderabad, Being equipped with affable front office staff and adept

professional technicians, Provide a perfect of quality Service and Reliability.

Space Friendly:

The interiors are aimed at making you feel completely at ease, In luxury. Because for us the

customer is king, one who deserves a regal offering. The setting is apt for times when you

need to switch into a relaxed state of mind.

Technology to Stay Ahead:

We are equipped with the latest technological advancement in the industry, in order to give

the best of services when it matters. Not just to be part of, But to build the future, is our motto.

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Ambience the Exude Relaxation:

Ours is one of the few service centers to be equipped with a fully-fledged customer-waiting

lounge. A part from a television and pool table, it had a wed kiosk to keep u connected all the

time.

Service with Commitment:

Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We

ensure consistency in performance each time, without fail.

Attention to Details:

We provide genius spare parts and accessories to ensure exceptional performance. Every

single aspect related to your vehicle is taken care of at our premises.

Dealing Made Convenient:

It is a part of our commitment policy to give advantage to the customer at every juncture.

We offer assistance of every kind at our premises itself, which makes it a one stop facility.

Expert Guidance at Every Step:

Our sales team gives utmost priority to your satisfaction. When you need help to make the

right choice, it is ensured that the result is beyond your expectations. Thus making it a point

that you get the best in both luxury and comfort always.

4.2 Models:

Toyota been launching various type of MUVs and cars from the year of 1933,keeping in mind

the quality, design, driving, comfort, fuel efficiency, and service and resale value. These from a

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formidable force that gives our customers the pride and the joy of value forever. What drives

Toyota is

➢ Commitment

➢ Leadership

➢ Any an eye for appropriate technology.

Since 1933, when Toyota first began manufacturing MUVs & LCVs, M&M have been engaged

in a single-minded endeavor to bring you cars that only state-of-the-art, but are also some for

the most environment-friendly vehicles in this world-a reflection of our commitment and care,

for better environment.

At the heart of every Toyota is a unique engineering and an optimal mix of power and economy.

All this is supported by Toyota Quality Revolution – wide dealership network and automated

workshop that provide excellent after sale service

The company has constantly exploring new opportunity to define the shape to tomorrow‟sdriving technology.

4.3 Promotional Activities:

The promotional activities adopted by United Automobiles are

1. Test Driving

2. Free Driving

3. Hoarding

4. Discounts

5. Advertisement in Newspaper and magazines

6. Gift Schemes

7. Free Services

8. Mileage Contents

Promotional expenses have been borne by both United Automobiles and M&M, shares in

15

advertisement cost.

Service Offered:

Six Service and paid service after sale of Cars.

➢ Free checkups campaigns

➢ Finance through bank

➢ Demonstration for new products

➢ Acceptance of warranty claims

Working Time in United Automobiles:

Working hours in United Automobiles are 12 hours per day starting from 9:30 am to 9:30pm with

one-hour break for lunch and 15 minutes for evening tea and coffee.

Non automotive activities

a) aerospace

b) philanthropy

c) higher education

d) robotics

e) finance

f) agricultural biotechnology

g) finance information

h) government bailouts

i) production and sales numbers

j) others

Product available at Radha Krishna Toyota:

Radha Krishna Toyota Automobiles is the Dealer of Toyota Company. Toyota Company

manufacturer various types of SUV‟S, Trucks, Hybrids, Cars Allion

Alphard

Auris

aurion

Avalon

Avanza

Avensis

Aygo

Bb

Belta

Blade

Camry

Century

Corolla

Crown

Dyna

Estima

FJ cruser

fortuner

Harrier

highlander

Hilux

Innova

Land cruiser prado

Prius

Wish

AWARDS AND RECOGNITION

Toyota as a pioneer in automobile design and manufacture has been recipient to numerous coveted

awards and recognitions .This fact is evident when one enters the TKM plant reception premises

Given below is the list of awards and recognition that Toyota has received in the past –

1. Business Standard Motoring : Import Car Of The Year Award - Camry 2007

2. BBC-Top Gear: Car Design Of The Year - Camry 2007

3. CNBC-TV18 Auto car: Best Design and Styling- Camry 2007

4. BBC-Top Gear : Best Design Of The Year - Camry 2006

5. Business Standard Motoring: MPV Of The Year - Innova 2006

6. NDTV - Car Awards: Best MPV Of The Year – Toyota Innova 2006

7. Overdrive: UV Of The Year For Innova 2006

8. Auto Monitor -CSR Initiative Of The Year 2006

9. CNBC Auto car Awards: Technologically Advanced Car - Land Cruiser Prado 2005

10. Business Standard Motoring : Best Executive Car 2004 & 2005 (Corolla) Best MUV

2005 (Innova)

11. TNS Award – Total Customer Satisfaction Study: Best Executive Car 2004 & 2005

(Corolla) Best MUV 2005 (Innova)

12. Business Standard Motoring: Best Executive Car 2004 & 2005 (Corolla) Best MUV

2005 (Innova)

13. TNS Award – Total Customer Satisfaction Study : Qualis, Corolla & Camry 2004

14. Business Standard Motoring: Best Import Car Of The Year – Land Cruiser Prado

2004

15. JD Power Asia Pacific: IQS Study – Corolla 2004

16. JD Power APEAL: Corolla 2004

17. JD Power Initial Quality Survey: Qualis 2003

18. Business Standard Motoring : Best Import Car Of The Year – Camry 2003

19. NFO Automotive: Highest Resale Value Car – Qualis 2003

20. JD Power APEAL Survey: Corolla 2003

21. JD Power India Initial Quality Award: Qualis 2002

22. JD Power India Initial Quality Award: Qualis 2001

23. Overdrive Best Utility Vehicle: Qualis 2001

24. NFO Automotive: Best MUV – Qualis 2001

25. JD Power Initial Quality Survey: Qualis 2000

26. JD Power India Appeal Study: Qualis - 2000 & 2002

27. Business Standard Motoring: Best MUV Introduction – Qualis – 2000

28. Overdrive Best New Introduction New Model: Qualis – 2000

29. NFO Automotive: Total Customer Satisfaction Study – Qualis 2000

4.4 Radha Krishna Achievements

Ranking 1st in TDMS usage pan India in 2009.

TSM basic certified in very first year of operations.

Ranked 14 in CS800+ first phase with 779 points.

EM certification successfully completed in 2009.

4.5 GOALS of Radha Group – 2009

Sustaining the customer retention by 95%.

850 in JDP CSI survey in 2nd phase of CS 800+.

Three star dealer award for 2009.

Improvement of skills in technical information.

Reduction of warranty error rate to 0%.

18

Achievements

Bagged bulk order of 50 innova‟s from M/S easy cabs.

Another 50 vehicles in the pipe line.

Delivered prado during the month.

Ranked 1st in TDMS usage pan India – 2nd quarter 2009.

4.7 Goals for RKT service

Target of 15000 BPU‟s, 4.2 cores part of f take & 52000 liters of TGMO.

TSM advanced (EM &MRS) certification.

Sustaining the customer retention by 95%.

850 in JDP CSI survey.

Improvement of skills in technical information.

Reduction of warranty error to 0%.

Aspiring to be “the best dealer in radha group and also in TKM”.

Improving the VAS contribution to 25% in labor revenue leads to profitability.

4.8 Achievements

Increased CPU‟S from 25 to 65 per day with an overall growth of „343%‟ when

compared to YTM of 2008 to that of 2009 (2008 YTM CPU‟S 1586:2009 YTM

CPU‟S:5430).

Increased BPU‟S from 3 to 6 per day resulting in overall growth of „329%‟ between 2008 to that of 2009.

Increased the overall revenue of labor earnings for both GS&BP by „312%‟ when compared to YTM of 2008 vs. 2009.

Increased the technicians certification from 3 to 11

Increased the appointments rate from 10% to 55%.

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Toyota Kirloskar Motor

Decreased warranty error rate to 3.5% YTD.

Improved the “F.1” rating to 4.5.

The best seller of smiles packages among the dealers in the state.

Achieved “14th rank in all India level and first in the state in the 2009 track- ICSI result.

In active to active

Strengthened the service marketing team and divided them in to several groups so that, to

take care of different segment customers. Increased the retention rates.

Started reaching the in active customers through knock- the –door campaign at their door

steps by utilizing the service marketing team.

Promotion of smiles packages to inactive customers & converting them to active ones.

Increased MSV camps to the interiors of the territory.

Creating the awareness about the smile packages to fleet operators has increased the

opportunities of increased 5k service visits of the fleet vehicles.

Continuously following up with the inactive customers through tale & Direct marketing

strategies, identifying their concerns resolving them has increased the opportunities of

converting the inactive customers to active ones.

Selling the Service Parts of Quality

yes model vehicles to the Local Garages has increased the confidence level of the

customers on the Toyota Products

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PRODUCT PROFILE

Toyota Kirloskar Motors is an automobile manufacturer engaged in the production of technologically

advanced quality automobiles. The quest for innovation is the foundation for Toyota's new

technology concepts. Ever since the company manufactured its first passenger vehicle in 1936,

Toyota has continuously pursued the number one position for total customer satisfaction in all areas,

ranging from manufacturing and products to sales and service. Toyota is today pursuing a policy of

sustained development and aims to use innovation and strong R & D to create cars that are greener,

safer and more fun to drive.

Engine technology is one of Toyota's greatest assets. Toyota's award-winning engine range reflects

the high design and quality standards set by its engineers. Toyota engines are developed for

performance and responsiveness with a big focus on reducing emissions and saving fuel. Today

Toyota brings these benefits to customers with advanced variable valve technology (VVT-i) petrol

engines, common-rail turbo diesels (D-4D), and lately with the unique Toyota Hybrid System (THS)

in developed markets.

Safety is top priority for Toyota .Advanced steering, braking and traction control technologies help

keep Toyota cars on the road and out of trouble. In addition, every new Toyota model is carefully

designed to maximize safety, using computer simulations and real-life crash tests. The body and

chassis are built to absorb impact and provide maximum occupant protection, whilst SRS airbags are

in place in case of a collision.

The Toyota Kirloskar Motors product line currently comprises of seven masterpieces of automobile

design and engineering .These are:

The Innova

The Corolla Altis

The Fortuner

The Etios sedan

The Etios Liva

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THE INNOVA

After the success of the Quails, Toyota rolled out the Innova, a category-first to hit Indian roads.

Built with hundreds of innovations from around the globe, the versatile brought together SUV like

capabilities with sedan like luxuries, in all it is one truly desirable MPV.

The Innova is a result of a unique process that has broken new grounds in the way automobiles are

created. The Innova brings together qualities never before seen together in an automobile. Fantastic

ride quality and luxury coupled with versatile space; superior performance and driving pleasure with

world class safety, advanced styling with solid durability.

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THE COROLLA ALTIS

The world’s largest selling car of all time, Toyota corolla Altis, enjoys huge success in India and was

voted executive car of the year two years in a row .The all new Corolla Altis is a befitting new

generation of the corolla sedan tradition designed to inspire envy on every road. Once in a lifetime,

comes a car that redefines luxury and style. Which looks and feels like it belongs to a class above?

and provides a driving experience so far beyond anything you’ve experienced, that you’ll either be

overcome with awe, or stunned by envy Presenting the all-new Corolla Altis.

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THE FORTUNER

The Toyota Fortuner, also known as the Toyota SW4, is a medium-sized SUV based on the Toyota

Hilux. Originally assembled only in Thailand, but later also in Indonesia and other countries, the

Fortuner is built on the well-established platform of the Toyota Hilux pickup truck. It features three

rows of seats and is available in rear-wheel drive or four-wheel drive among others. The Fortuner is

part of Toyota's IMV project in Thailand, which also includes the Toyota Hiluxand the Kijang

Innova (in Indonesia). The vehicle was designed by Toyota Technical Centre Australia. A number of

engine options are available depending on the country of sale, including a 2.7 litre 2TR-FE and 4.0

litre 1GR-FE V6 petrol with Variable Valve Timing and 2.5 2KD-FTV and 3.0 1KD-FTV common

rail turbocharger diesel models.

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THE ETIOS SEDAN

The Toyota Etios is a passenger car developed by Toyota for India. The sedan was launched in

December 2010, and the Toyota Etios Liva hatchback was launched in June 2011.

Manufactured in Bangalore, Etios is the biggest such project in India by Toyota today, and is a direct

assault on Suzuki's dominance in this market.

The Etios nameplate comes from the Greek "Ethos", meaning spirit, character, and ideas.

The Etios sedan uses the 2NR-FE 1.5 L DOHC 4-cylinder engine. This dual VVT-i 16V gasoline

engine with electric fuel injection produces 66 kW (90 PS). This is mated to 5 speed manual

gearbox.

The Engine and Transmission are currently imported from Japan, but Toyota is setting up a Rs 500

crore plant to manufacture engines and transmissions in Bangalore from 2012.

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THE ETIOS LIVA

The Etios Liva hatchback was launched in New Delhi on June 27, 2011 with a 4 cylinder 16 valve

DOHC engine that delivers a fuel efficiency of 18.31 km/L. A diesel version is planned. Trim levels

for the Etios Liva are: J, G, G+, V and VX.

The Etios Liva hatchback uses the 3NR-FE 1.2 L DOHC 4-cylinder engine. This dual VVT-i 16V

gasoline engine with electric fuel injection produces 59 kW (80 PS). This is mated to 5 speed manual

gearbox.

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ORGANIZATIONAL CULTURE

Conditions Created by Toyota's Well-Established Business Culture

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Systems Supporting the Business Culture -

In order to maintain and further enhance this well-established business culture, it is important that

both the system for human resources development and the system for establishing and maintaining

compliance function continuously.

In terms of human resources development, Toyota conducts on-the-job training and educational

programs categorized by position in order to raise and strengthen the awareness of being a Toyota

employee. Also, in order to establish and maintain compliance, Toyota has clarified concepts that

serve as a guideline to conduct in the Code of Conduct for Toyota Employees, and holds meetings of

the Corporate Ethics Committee when necessary.

The Code of Conduct for Toyota Employees -

The Code of Conduct for Toyota Employees organizes the employees' basic attitudes necessary for

putting the Guiding Principles at Toyota into practice. This is not a list of "don'ts," but rather a

positive explanation of rules to be observed and actions to be taken. The guidelines also indicate

departments’ employees can consult with when they are having difficulty making a decision and

enable employees to confirm the appropriateness of their conduct. Toyota also has conduct

guidelines for individual divisions that specify in greater detail specific rules and actions, taking into

consideration the unique characteristics of each division.

[Promotional Structures]

Specific organizations and a hotline have been established in order to thoroughly carry out

compliance at all levels of the company, from executive management to the rank-and-file employees.

Proactive Prevention by the Corporate Ethics Committee -

The Corporate Ethics Committee, which includes all executive management from the executive vice

president level and higher as well as corporate auditors, works to prevent risks associated with legal

and ethical violations, while overseeing all general corporate activities from the perspective of

compliance. Records of proceedings are announced at management meetings and directors and

managing officers disseminate information to the divisions they oversee when necessary.

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Consolidated Support by Multiple Divisions -

In order to ensure proper compliance, a number of different divisions —including the Legal

Division, Accounting Division, Corporate Planning Division, Human Resources Division, and

Global Human Resources Division— work collaboratively to provide support and undertake

awareness-enhancing activities.

Revision of the Charter for Good Corporate Behaviour -

The Charter for Good Corporate Behaviour adopted by the Nippon Keidanren (Japan Business

Federation) was revised in October 2002. One element of the revision was the need for new

principles due to the current economic impasse in Japan, the development of a borderless global

economy, and the advance of information technology. Toyota Chairman Hiroshi Okuda serves as

chairman of the Nippon Keidanren and played a leading role in the revision of the Charter. Toyota is

adopting its own internal provisions, taking into consideration the revised Charter.

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THE FOURTEEN PRINCIPLES OF TOYOTA

1. Long – Term Philosophy

2. The Right Process Will Produce the Right Results

3. Create Continuous Process Flow to Bring Problems to the Surface

4. Use “Pull” Systems to avoid Over Production

5. Level out the Work Load (Heijunka)

6. Build a Culture of Stopping to Fix Problems, to get Quality Right the First time

7. Standardized Tasks are the foundation for Continuous Improvement

8. Employee Empowerment

9. Use Visual Control so no Problems are Hidden

10. Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes

11. Add Value to the Organisation by Developing Your People and Partners

12. Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to

Others

13. Develop Exceptional People and Teams who follow your Company’s Philosophy

14. Respect your Extended Network of Partners and Suppliers by challenging them and Helping

them Improve.

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ORGANISATIONAL DESIGN AND STRUCTURE

Organisational design is fundamentally the manner in which a management achieves the right

combination of differentiation and integration in the organizations operations in response to the level

of uncertainty in its external environment. Differentiation here refers to the subdivision of functional

or departmental units each concentrating on a particular aspect of the organizations operations and

Integration refers to the linking of differentiated units to achieve unity of effort in working towards

organizational goals .In times of high uncertainty greater organizational effectiveness is achieved

through high differentiation and high integration and in times of low uncertainty organizational

effectiveness is achieved through low differentiation and low integration.

Organisational structure is the formal and informal framework of policies and rules within which an

organization arranges its lines of authority and communication and allocates rights and duties .It

determines the manner and extent to which roles, powers and responsibilities are delegated,

controlled and co-ordinated and how information flows between various levels of

management .Hence this structure depends entirely on the organizations objectives and the strategy

chosen to achieve them. In a ‘centralized structure ‘the decision making power is concentrated in the

top layer of management and tight control is exercised over departments and divisions .In a

decentralized structure the decision making power is distributed and the departments and divisions

have varying degrees of autonomy...

The organizational structure at TKM is pyramidcal and considerably flat, and this has its own set of

advantages such as more frequent promotions and continuous change in responsibilities and growth

hierarchy. Moreover the organizational structure is on the lines of a lean enterprise that fosters

communication across all levels staying true to Toyotas ideology of openness and oneness .The flat

structure also promotes effective communication and teamwork and is inorganic in nature.

There is a high degree of differentiation coupled with an equal high degree of integration followed.

Also one striking observation is the unrigid organizational design that facilitates openness,

communication and free flow of ideas between all levels and cadres of the organisation. Also another

very practical approach followed at TKM is the job and role rotation process wherein every

employee gets cross trained across all areas and responsibilities to enable greater understanding and

respect for each other’s roles and responsibilities. Another notable observation is the large presence

of Japanese employee’s onsite as this ensures the Toyota system is nurtured and ingrained in TKMs

culture and in the top management.

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The diagram on the following page shows the organizational chart as observed in Toyota Kirloskar

Motor Ltd.

TOYOTA ORGANISATIONAL CHART

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POLICIES, PROCEDURES AND METHODOLOGY

The Toyota way

The Toyota Way is a management philosophy used by the Toyota Corporation worldwide. The main

idea is to base management decisions on a “philosophical sense of purpose”, to think long term, to

have a process for solving problems, to add value to the organization by developing its people and to

recognize that continuously solving root problems drives organizational learning. The two pillars of

The Toyota Way are Continuous Improvement and Respect for People.

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Toyota Production System (TPS)

The production system developed by Toyota Motor Corporation to provide best quality, lowest cost,

and shortest lead time through the elimination of waste.

TPS is comprised of two pillars, Just-in-Time and Jidoka, and is often illustrated with the "house"

shown below. TPS is maintained and improved through iterations of standardized work and kaizen,

following PDCA, or the scientific method.

The concepts of Just-in-Time (JIT) and Jidoka both have their roots in the pre-war period. Sakichi

Toyoda,

founder of the Toyota group of companies, invented the concept of Jidoka in the early 20th Century

by incorporating a device on his automatic looms that would stop the loom from operation whenever

a thread broke. This enabled great improvements in quality and freed people up to do more value

creating work than simply monitoring machines for quality. Eventually, this simple concept found its

way into every machine, every production line, and every Toyota operation.

Kiichiro Toyoda, son of Sakichi and founder of the Toyota automobile business, developed the

concept of Just-in-Time in the 1930's. He decreed that Toyota operations would contain no excess

inventory and that Toyota would strive to work in partnership with suppliers to level production.

Under Ohno's leadership, JIT developed into a unique system of material and information flows to

control overproduction.

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Some of the unique features of The Toyota Way are:

1. Kaizen : - It focuses on continuous improvement throughout all

Aspects of life. When applied to a workplace, Kaizen activities continually improve

all functions of a business from manufacturing to management. By improving

standardized activities and processes, Kaizen aims to eliminate waste. The Toyota

team relentlessly strives to conduct Kaizen activities.

2. Kanban : - It is a concept related to just–in–time (JIT) production.

Kanban is a part of a pull system that determines the supply, or production according to

the actual demand of the customers. A Kanban system is used as a demand signal

which immediately propagates through the supply chain. This can be used to ensure

that intermediate stocks are better managed.

3. Poka -yoke: - It means “fail-safing” – avoiding inadvertent errors, or a

method of preventing errors by putting limits on how an operation can be performed in

order to force the correct completion of the operation.

4. Genchi-Genbutsu : - It means “go and see for yourself” and it is an

integral part of the Toyota Production System. Toyota managers are expected to “go-

and-see” operations. Without experiencing the situation firsthand, managers will not

have an understanding of how it can be improved.

5. Jidoka : - It may be described as “intelligent automation”. At Toyota

this means that if an abnormal situation arises the machine stops and the worker will

stop the production line. Jidoka prevents the production of defective products,

eliminates overproduction and focuses attention on understanding the problem and

ensuring that it never recurs.

6. Heijunka : - It is a technique for reducing waste and is vital to the

development of production efficiency in the Toyota Production System. The general

idea is to produce intermediate goods at a constant rate, to allow further processing to

be carried out at a constant and predictable rate. This helps achieve the goal of

minimizing waste (MUDA), not overburdening people or the equipment (MURI)

and not creating uneven production levels (MURA)

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JUST-IN-TIME

The "Just-In-Time" production philosophy is the foundation of the Toyota process. This concept

refers to the manufacturing and conveyance of only what is needed, when it is needed, and in the

amount needed. In addition, a minimum amount of inventory is kept on hand. This enhances

efficiency and allows quick response to change.

STANDARDIZED WORK

The Toyota Production System organizes all jobs around human motion and creates an efficient

production sequence without any "Muda." Work organized in such a way is called standardized

work. It consists of three elements: Takt-Time, Working Sequence, and Standard In-Process Stock.

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Takt-Time

"Takt-Time" is the time, which should be taken to produce a component on one vehicle. This timing

mechanism is based on the monthly production schedule. Daily total operating time is figured based

on all machinery operating at 100% efficiency during regular working hours. The Takt time allows

us to produce many parts of many different types for use in vehicles on the production schedule and

to supply those parts to each process on the assembly line at the proper time. This keeps production

on schedule and permits flexible response to change in sales.

Takt Time =  

Straight Time / Work Time (Seconds) #

Required Number of Production based on

Demand

# Time available/day/month

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There had been this wide, long-standing recognition of Toyota as the premier automobile

manufacturer in terms of the unmatched combination of high quality, low cost, short lead-time, and

flexible production. Toyota Production System had been widely credited for Toyota's sustained

leadership in manufacturing performance. In addition, Toyota had been remarkably open in letting

outsiders study its operations. Many other auto companies had done major benchmarking studies,

and they had tried to implement their own forms of the Toyota Production System. There is the Ford

Production System, the Chrysler Operating System, and General Motors went so far as to establish a

joint venture with Toyota called NUMMI, approximately fifteen years ago.

However, despite Toyota's openness and the genuinely honest efforts by other companies over many

years to emulate Toyota, no one had yet matched Toyota in terms of having simultaneously high

quality, low-cost, short lead-time, and flexible production over time and broadly based across the

system. This shows how deeply TPS is ingrained in Toyota group companies and the impact is has

on the functioning of the corporation.

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PRODUCTION FLOW

The following paragraphs will offer a brief explanation of the manufacturing process followed at the

TKM plant along with the systems and processes in place that make this facility and its ideologies

truly one of a kind. The production unit or ‘shop floor’ is primarily composed of the below divisions

1. Inventory Storage

2. Press Shop

3. Weld Shop

4. Paint Shop

5. Assembly Shop

6. Final Inspection

The plant follows a Product Flow Layout. This is also known as Lean manufacturing. The block

diagram of the plant is shown below:

1. Inventory Storage-

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The parts that are required for the manufacturing of the vehicle are stored in the inventory.

Toyota follows the Just in Time production technique i.e. vehicles are produced according to

their demand. Therefore, the parts that are present in the inventory are only for that day’s

production and maybe the next day’s. This way the storage and maintenance cost is reduced.

2. Press Shop-

The basic function of the press shop is to press the sheet metal into the required shape. There are

4 stages in the press shop. The first two are stamping, in which the sheet metal is cut into

required size using templates called “DIES’ and holes are made. The 3 rd and 4th stages are press

stages. The machines that are used for pressing the sheet metal use hydraulic control since the

pressure required is high.

3. Weld Shop-

The weld shop is responsible for welding every single part of the vehicle. When the chassis is

welded the frame structure is held on a fixture which operates on the principle of pneumatic air

pressure. Then all the small parts to be fitted to the chassis are welded using butt welding. This

process is done manually. For body related welding there is a different segment. E.g. welding of

fenders etc. After the completion of welding, the body is inspected for defects. The door of the

body is fixed temporarily for painting purpose.

4. Paint Shop-

In the paint shop the complete body is dipped into a solution filled in a tank. This is done to

clean the body and make it corrosion proof. After this, primer coating is done which is performed

by a robot because the primer needs to be sprayed uniformly. A quality check is done to ensure

that uniform thickness of the paint is maintained.

5. Assembly Shop-

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The assembly shop is responsible for the assembly of the various parts to make a vehicle. The

assembly shop consists of three production lines. These are:

a) Chassis assembly line

b) Body trim line

c) Final line

The chassis assembly line and the body trim line move side by side. On these lines, the various

parts, systems and sub assemblies of the chassis and the body are fitted. Once the assembly of the

various parts like door hinges, wire housing, engine, transmission etc. is completed, the chassis is

brought under the body and fitted. This procedure is called docking. After docking the vehicle is

taken to the final line where the other parts of the vehicle like safety glasses, carpet, doors etc.

are assembled. The VIN (Vehicle Identification Number) is punched onto the vehicle by a

machine during the final line assembly.

6. Final Inspection-

During final inspection, the entire vehicle is checked for any defects in weld, paint and

assembly. The engine is started and checked and the steering alignment is verified. Also a shower

test is performed to ensure that there are no leaks in the car. In case of any persisting problem,

the vehicle is sent to the repair shop where the defect is rectified.

CLASSIFICATION OF VARIOUS DEPARTMENTS

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A number of divisions are responsible for the overall functioning of TKM. The various divisions at

TKM can be broadly divided into manufacturing divisions and the non-manufacturing divisions. The

various departments of the manufacturing department are intentionally located in the ground floor of

the plant facility as part of TKMs overall strategy due to its close proximity to the shop floor, all the

other divisions are housed in the first floor.

Manufacturing Divisions-

1. Product Design and Development Division

2. Quality Control Division

3. Plant Administration Division

4. Production Division

5. Quality Assurance division

6. Plant engineering and services department

Non-manufacturing Divisions-

General Administration Division

Finance and accounting Division

Purchase division

Marketing Division

Sales and Services Division

Human resources

The departments that fall under the manufacturing division are those that are primarily composed of

engineers and these function in a symbiotic way that aids in the design, manufacture and deployment

of its automobiles.

The non-manufacturing divisions are composed of teams that overlook the finance and manpower

planning and management.

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Flow of material in TKM:-

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TKM

SLC

Steel Suppliers

Suppliers/ job shop

TKM receiving

Local suppliers

Job works

Imports

Yard Dealers

P

T

W

A

INSP

P= press

W= weld

T= paint

A= assemble

In= inspection

Toyota Kirloskar Motor

PRODUCT PROMOTIONAL MEASURES

Just like any other automobile manufacturer, Toyota also promotes its fine products through

numerous video advertisements in all leading television channels and also through captivating print

ads in newspapers, magazines and other related publications.

S.W.O.T ANALYSIS

STRENGTHS –

Better Product Quality and strong product Innovation skills

Trusted and reliable brand image of its patent company TMC worldwide contributes to its

goodwill

Wider Product Line

Availability of latest technology through in house R&D

Standard system of production and company culture is followed uniformly throughout the

world thereby no deviations in its quality

Pull system of production that depends on sales velocity and hence cars are built to order,

thereby eliminating idle inventory and overproduction wastage

Toyotas culture and ideology followed by even its suppliers and dealer network

WEAKNESSES -

Higher Lead Time

The present and only plant in India at TKM has neared peak capacity

Internal conflicts of interest such as Trade union issues that have arose in the past and

severely affected the company’s output and drew critical media reviews

No proper system to check whether the worker is using safety wear or not, which may lead to

accidents

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OPPORTUNITIES –

The growing automobile market in India, presently said to be growing at over 16%, has

created new possibilities in various segments offers numerous avenues for growth

Increasing buying power and customer base in India

Expansion of product portfolio to diversify and thereby establish in this bigger domestic

market

THREATS –

Entry of international players in domestic market

Exchange rate fluctuations that affect the company’s overall revenues since majority of its

auto components, CBUs and engines are procured from overseas

It has not been largely successful in terms of market penetration in India .Globally Toyota is

a leader in production and sales

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FINDINGS AND CONCLUSIONS

Findings

SAFETY

The importance given to safety in the plant is phenomenal .In fact it was truly admirable to see that

this level of safety was followed not just on the shop floor but throughout the expanse of the entire

facility.

One example is the “GREEN PATH” system that literally refers to narrow lanes painted green

viz.the only areas that personal and visitors are advised to walk on in the shop floor as it traces the

areas where safety is least compromised. This initiative also has “STOP-LOOK-GO” signs printed

on in bright yellow at all turnings, crossings and intersections to serve as a continuous reminder to be

cautious and watchful .Toyota aims to achieve a zero accident reputation through these efforts.

Moreover, all personnel in the plant are provided adequate body protection such as helmets, elbow

guards, gloves, aprons, etc. in meeting with standard safety requirements.

EQUALITY AND OPEN CULTURE

Another notable and admirable ideology followed at TKM is that of equality and open culture. The

common lunch hall is a perfect example to validate this fact .Here ,the same delicious meals are

served to all employees ,managers and shop floor mechanics alike, giving no place for discrimination

of seniority. On the contrary this builds a strong feeling of oneness among the staff making them

truly feel they are a significant and intricate part of the Toyota family.

Another notable experience is the sight that meets one’s eyes at the office block .There is no cubicles

or separators throughout the office redefining a culture of transparency in operations and

communication without boundaries or hierarchical discrimination.

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EMPLOYEE RECREATION

As one can imagine how busy the production floor can get especially, when there’s a car being rolled

out every minute, yet the company has given thought about employee recreation and made it a

possibility by a unique idea of erecting board games right in the midst of the assembly lines.

THEORY IN PRACTICE

Toyota believes in practicing what it preaches. “Group activity box” on the shop floor that

temporarily houses managers and senior personnel in accordance with their culture of

Genchi-Genbutsu, that means “go see for yourself”, as Toyota managers are expected to go and see

operations firsthand to have an understanding of how it can be improved. These “ boxes “ eliminate

the need for managers to walk to and forth from shop floor to office floor viz. a waste of time and

energy.

CARE FOR THE ENVIRONMENT

The company in staying true to its outlook on protecting and sustaining the environment is constantly

engaged in numerous activities to facilitate the same. Even during the course of my onsite visits this

was evident with the preparations undertaken for a proposed sapling planting drive.

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A Customer’s Point of View:

After visiting two districts of Nizamabad and Kazipet/Warangal, I came to a conclusion after having a discussion with Toyota owners as well as prospective Clients. Some of their view’s are as follows:

• Due to a long distance from the dealership showroom it usually gets too hard for an owner to get their cars serviced on time

• In case of a break-down of their car, it is sometimes hard for them to arrange genuine Toyota-parts.

• Overall the concern of all the customers as well as the prospects revolves around better service in terms of servicing and maintenance of the vehicle.

• Other concerns of the prospects was the delivery time of their vehicle as promised ,but at R.K Toyota, the sales people are very efficient and in all the cases the delivery is made on time

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CONCLUSION

Toyota Kirloskar Motors has greatly contributed to the huge growth of the Indian Automobile

Industry. Toyota Kirloskar Motors has a great commitment to the society and the earth, aiming to

create a new motorization future for India. Toyota will play a significant role in promoting

employment and technology transfer to India. Toyota believes that manufacturing is all about

fostering people; it aims to apply all its energy into nurturing individuals who can contribute

considerably to the revitalization of the Indian economy.

Toyota Kirloskar Motors has already started the work of the second plant which is scheduled to

begin operations by mid 2012 with an initial annual production of 100000 cars; the plant is poised to

produce passenger cars, including a new compact vehicle. This would change the whole Automobile

Industry. It would create high quality Cars and would also increase the competitiveness existing in

the market.

With the above information we can say Toyota Kirloskar Motor has a long way to go through with

innovative product and it has scope for diversification in various because of large untouched market.

Huge Investments are coming from Toyota and Kirloskar group and the Special Advantage is getting

the Technology transfer from Toyota.

Today, Toyota Kirloskar Motor plays a vital role in rolling out Cars in India with state of the art

Design and Technology. This can only be possible by following world class Quality, Innovation,

Leadership, Principals and Values. Toyota Kirloskar Motor will not just drive the Indian Automobile

Industry but it would make significant inroads such that it would revolutionize the Global

Automobile Industry.

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SUGGESTIONS

Pricing and Product sales must be made effective such that the company can be competitive with

the local and International manufacturers.

Reduce the Exchange rate fluctuations that affect the company’s overall revenues because

majority of its auto components, CBUs and engines are procured from overseas

As Toyota gives the first preference to the Safety, but still workers are very negligible

sometimes, they ignore to wear the safety wears when they are in the line, so I suggest they

should have a safety inspection team, where they will be continuously observing the workers.

Workers waste lot of their time in playing board games as there is no proper observations on

these areas, so I suggest that there should be proper monitoring system, so that all the man hour is

used efficiently.

There do not exit a proper relation between the team leader and the team members, so I suggest

that proper steps must be taken in reducing the cold wars between the employees so that they

maintain a good working environment.

SUGGESTIONS FROM CUSTOMER’S POINT:

1. Toyota is known for their operational efficiency, so in order to get attention of the prospective customer as well as the existing customer, it is important for TKM to prepare a slide show of the operational activities of Toyota and display in the dealership showrooms on the LCD tv.

2. A Fortnightly servicing Van can be provided in the distant locations, such as Nizamabad,kazipet,Warangal etc..By providing the servicing vans, the dealership will create a better image and that will lead to its sales through word of mouth publicity and it will as create a better brand image of the company as a whole.

3. Similarly, a servicing camp can be arranged in the major city locations, with a side by side family time programme. In this Family time programme, a customer can get his vehicle serviced while his/her children can enjoy in a small fare arranged by the dealership. This will in turn create a better brand image of Toyota and will also increase customer loyalty towards the company as well as the dealership.

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