The Kaizen Philosophy is Drawn From the Japanese Word Kai Which Means

The Kaizen philosophy is drawn from the Japanese word kai which means “continuous” and zen meaning “improvement” or “wisdom”. The management philosophy, therefore, is defined as making “continuous improvement”—slow, incremental but constant. It is but surprising that the same Japanese words (kai zen) denote “the action to correct” in Chinese.

Definition

Masaaki Imai (1) defined Kaizen as “a means of continuing improvement in personal life, home life, social life, and working life. At the workplace, Kaizen means continuing improvement involving everyone—managers and workers alike. The Kaizen business strategy involves everyone in an organization working together to make improvements without large capital investments.”

Mark R. Hamel (2) has a slightly different definition: “Kaizen is much more than an event; it is a philosophy, mindset and, for breakthrough performance, a most critical vehicle to achieve strategic imperatives and execute value stream/process improvement plans.”

Continuous improvements

The Kaizen way encourages small day-to-day yet continuous and never-ending improvement process involving everyone from managers to workers using the most basic tenet of survival: Common sense.Making sensible decisions and native sound judgment, incidentally, are the ingredients of survival—and the concept becomes a handy management kit that best works in times of crisis.To understand the benefits of Kaizen better, every business or corporation may need to undergo radical change—whatever degree, without any resistance—in order to survive the competition in this fast changing world. As opposed to the Western brand of pragmatic why-fix-it-if-it-ain’t-broke philosophy, Kaizen extends a more optimistic philosophical view: “Everything—even if it ain’t broke—can be made better!”In business applications, Kaizen covers most of the modules of successful Japanese concepts. Kanban, 5S, quality circles (QCs), just-in-time (JIT) delivery, automation, suggestions systems, etc., are all embedded into the Kaizen system of modern business management.

Structure

Setting the structure is very important. This includes appointing self-directed teams that manage to • analyze problems; and• generate solutions

The teams need the authority to implement the necessary changes. Everybody should be involved.

In the United States, an alternative to the standard approach is called the Kaizen Blitz (or Event) where self-directed teams are forced to analyze problems hastily and generate curative solutions—but are immediately dissolved once the problem is solved.

In summary

Kaizen is setting doable, replicable standards and then continually improving those standards—because persistent improvements are crucial for the long-term profits.

In spite of different systemic modules, it must be understood that Kai zen is not a method or technique. All existing and standard programs and techniques are still actively used, albeit on an improved level.

Kaizen, therefore, is not all about incentives and rewards—it is about the support given to front-liners to help them improve the way work is done.

Oskar Olofsson, 2009

References:

(1) Masaaki Imai. Kaizen: The Key To Japan's Competitive Success(2) Mark R. Hamel. Kaizen Event Fieldbook: Foundation, Framework, and Standard Work for Effective Events

history

HBL established operations in Pakistan in 1947 and moved its head office to Karachi. Our first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the bank’s 25th Anniversary.

With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.

On December 29, 2003 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million). On February 26, 2004, management control was handed over to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees.

Awards

2010 'HBL wins Best Emerging Market Banks award in Pakistan 2010'

  2009 'The Best Emerging Market Bank in Pakistan'HBL among Top 500 Global Financial Brands

  2008 'Best Bank In Pakistan''Most Innovative Global Trade Finance''Buzziest Brands'

Our Brand

Our brand identity is the outward expression of what we stand for as an organization. This is summarized in our vision, mission and is supported by our values.

Vision

“Enabling people to advance with confidence and success”

Mission

“To make our customers prosper, our staff excel and create value for shareholders”

Values

Our values are the fundamental principles that define our culture and arebrought to life in our attitudes and behaviour. It is our values that

makeus unique and unmistakable. Our values are defined below:

Excellence

This is at the core of everything we do. The markets in which we operate are becoming increasingly competitive, giving our customers an abundance of choice. Only through being the very best - in terms of the service we offer, our products and premises - can we hope to be successful and grow.

Integrity

We are the leading bank in Pakistan and our success depends upon trust. Our customers - and society in general - expect us to possess and steadfastly adhere to high moral principles and professional standards.

Customer Foc

us

We understand fully the needs of our customers and adapt our products and services to meet these. We always strive to put the satisfaction of our customers first.

Meritocracy

We believe in giving opportunities and advantages to our employees on the basis of their ability. We believe in rewarding achievement and in providing first-class career opportunities for all.

Progressiveness

We believe in the advancement of society through the adoption of enlightened working practices, innovative new products and processes,and a sprit of enterprise.

KaizenFrom Wikipedia, the free encyclopedia

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This article is about the continuous improvement philosophy. For the fantasy currency invented by Kaizen Games with symbol "$K", see Priston Tale.

Look up kaizen in Wiktionary, the free dictionary.

Kaizen (改善?), Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, game development, and business management. It has been applied in healthcare,[1] psychotherapy,[2] life-coaching, government, banking, and other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain.[3] By improving standardized activities and processes, kaizen aims to eliminate waste (see lean manufacturing). Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world[4] and is now being implemented in many other venues besides just business and productivity.

Contents

[hide]

1 Introduction 2 History

3 Implementation

o 3.1 The five main elements of kaizen

4 See also

5 References

6 Further reading

7 External links

[edit] Introduction

Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes. In all, the process suggests a humanized approach to workers and to increasing productivity: "The idea is to nurture the company's human resources as much as it is to praise and encourage participation in kaizen activities."[5] Successful implementation requires "the participation of workers in the improvement."[6] People at all levels of an organization participate in kaizen, from the CEO down to janitorial staff, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group. At Toyota, it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity. This group is often guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's key role. Kaizen on a broad, cross-departmental scale in companies, generates total quality management, and frees human efforts through improving productivity using machines and computing power.[citation needed]

While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned small improvements and standardization yields large results in the form of compound productivity improvement. This philosophy differs from the "command and control" improvement programs of the mid-twentieth century. Kaizen methodology includes making changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project scheduling are replaced by smaller experiments, which can be rapidly adapted as new improvements are suggested.[citation needed]

In modern usage, a focused kaizen that is designed to address a particular issue over the course of a week is referred to as a "kaizen blitz" or "kaizen event". These are limited in scope, and issues that arise from them are typically used in later blitzes.[citation needed]

[edit] History

After WWII, to help restore Japan, American occupation forces brought in American experts to help with the rebuilding of Japanese industry. The Civil Communications Section (CCS) developed a Management Training Program that taught statistical control methods as part of the overall material. This course was developed and taught by Homer Sarasohn and Charles Protzman in 1949-50. Sarasohn recommended W. Edwards Deming for further training in Statistical Methods.

The Economic and Scientific Section (ESS) group was also tasked with improving Japanese management skills and Edgar McVoy was instrumental in bringing Lowell Mellen to Japan to properly install the Training Within Industry (TWI) programs in 1951.

Prior to the arrival of Mellen in 1951, the ESS group had a training film to introduce the three TWI "J" programs (Job Instruction, Job Methods and Job Relations)---the film was titled

"Improvement in 4 Steps" (Kaizen eno Yon Dankai). Thus the original introduction of "Kaizen" to Japan. For the pioneering, introduction, and implementation of Kaizen in Japan, the Emperor of Japan awarded the 2nd Order Medal of the Sacred Treasure to Dr. Deming in 1960. Consequently, the Union of Japanese Science and Engineering (JUSE) instituted the annual Deming Prizes for achievement in quality and dependability of products.

On October 18, 1989, JUSE awarded the Deming Prize to Florida Power & Light Co. (FPL), based in the US, for its exceptional accomplishments in process and quality control management. FPL was the first company outside Japan to win the Deming Prize.

Reference: US National Archives - SCAP collection - PR NewsWire

[edit] Implementation

The Toyota Production System is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen.

The PDCA cycles[7]

The cycle of kaizen activity can be defined as:

Standardize an operation and activities. Measure the standardized operation (find cycle time and amount of in-process inventory)

Gauge measurements against requirements

Innovate to meet requirements and increase productivity

Standardize the new, improved operations

Continue cycle ad infinitum

This is also known as the Shewhart cycle, Deming cycle, or PDCA. Other techniques used in conjunction with PDCA include 5 Whys, which is a form of root cause analysis in which the user asks "why" to a problem and its answer five successive times. There are normally a series of root causes stemming from one problem,[8] and they can be visualized using fishbone diagrams or tables.

Masaaki Imai made the term famous in his book Kaizen: The Key to Japan's Competitive Success.

Apart from business applications of the method, both Anthony Robbins and Robert Maurer, PhD[9] have popularized the kaizen principles into personal development principles. In his book,One Small Step Can Change Your life: The Kaizen Way and his eight CD set, The Kaizen Way to Success, Dr. Maurer looks at both personal and professional success using the kaizen approach.[10]

In their book The Toyota Way Fieldbook, Jeffrey Liker, and David Meier discuss the kaizen blitz and kaizen burst (or kaizen event) approaches to continuous improvement. A kaizen blitz, or rapid improvement, is a focused activity on a particular process or activity. The basic concept is to identify and quickly remove waste. Another approach is that of the kaizen burst, a specific kaizen activity on a particular process in the value stream.[11]

WebKaizen Events, written by Kate Cornell, condenses the philosophies of kaizen events into a one-day, problem solving method that leads to prioritized solutions. This method combines Kaizen Event tools with PMP concepts. It introduces the Focused Affinity Matrix and the Cascading Impact Analysis. The Impact/Constraint Diagram and the Dual Constraint Diagram are tools used in this method.[12]

Key elements of kaizen are quality, effort, involvement of all employees, willingness to change, and communication.

[edit] The five main elements of kaizenThis section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2010)

Teamwork Personal discipline

Improved morale

Quality circles

Suggestions for improvement

Toyota Production SystemFrom Wikipedia, the free encyclopedia

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The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "Lean manufacturing." Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed the system between 1948 and 1975.[1]

Originally called "Just-in-Time Production," it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The founders of Toyota drew heavily on the work of W. Edwards Deming and the writings of Henry Ford. When these men came to the United States to observe the assembly line and mass production that had made Ford rich, they were unimpressed. While shopping in a supermarket they observed the simple idea of an automatic drink resupplier; when the customer wants a drink, he takes one, and another replaces it. The principles underlying the TPS are embodied in The Toyota Way.

Contents

[hide]

1 Goals 2 Origins

3 Principles

o 3.1 Continuous Improvement

o 3.2 Respect for People

o 3.3 Long-term philosophy

o 3.4 The right process will produce the right results

o 3.5 Add value to the organization by developing your people and partners

o 3.6 Continuously solving root problems drives organizational learning

4 Results

5 Commonly used terminology

6 See also

7 Notes

8 References

9 External links

[edit] Goals

The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required results smoothly; by designing out "mura" (inconsistency). It is also crucial to ensure that the process is as flexible as necessary without stress or "muri" (overburden) since this generates "muda" (waste). Finally the tactical improvements of waste reduction or the elimination of muda are very valuable. There are eight kinds of muda that are addressed in the TPS:

1. over-production2. motion (of operator or machine)

3. waiting (of operator or machine)

4. conveyance

5. processing itself

6. inventory (raw material)

7. correction (rework and scrap)

8. unused creativity

The elimination of waste has come to dominate the thinking of many when they look at the effects of the TPS because it is the most familiar of the three to implement. In the TPS many initiatives are triggered by inconsistency or overburden reduction which drives out waste without specific focus on its reduction.

[edit] Origins

This system, more than any other aspect of the company, is responsible for having made Toyota the company it is today. Toyota has long been recognized as a leader in the automotive manufacturing and production industry.[2]

Toyota received their inspiration for the system, not from the American automotive industry (at that time the world's largest by far), but from visiting a supermarket. This occurred when a

delegation from Toyota (led by Ohno) visited the United States in the 1950s. The delegation first visited several Ford Motor Company automotive plants in Michigan but, despite Ford being the industry leader at that time, found many of the methods in use to be not very effective. They were mainly appalled by the large amounts of inventory on site, by how the amount of work being performed in various departments within the factory was uneven on most days, and the large amount of rework at the end of the process.[3]

However, on a subsequent visit to a Piggly Wiggly,[4] the delegation was inspired by how the supermarket only reordered and restocked goods once they had been bought by customers. Toyota applied the lesson from Piggly Wiggly by reducing the amount of inventory they would hold only to a level that its employees would need for a small period of time, and then subsequently reorder. This would become the precursor of the now-famous Just-in-Time (JIT) inventory system.[3]

While low inventory levels are a key outcome of the Toyota Production System, an important element of the philosophy behind its system is to work intelligently and eliminate waste so that inventory is no longer needed. Many American businesses, having observed Toyota's factories, set out to attack high inventory levels directly without understanding what made these reductions possible.[5] The act of imitating without understanding the underlying concept or motivation may have led to the failure of those projects.

[edit] Principles

Main article: The Toyota Way

The underlying principles, called the Toyota Way, have been outlined by Toyota as follows:[6][7]

[edit] Continuous Improvement Challenge (We form a long-term vision, meeting challenges with courage and creativity to

realize our dreams.) Kaizen (We improve our business operations continuously, always driving for innovation and

evolution.)

Genchi Genbutsu (Go to the source to find the facts to make correct decisions.)

[edit] Respect for People Respect (We respect others, make every effort to understand each other, take responsibility and

do our best to build mutual trust.) Teamwork (We stimulate personal and professional growth, share the opportunities of

development and maximize individual and team performance.)

External observers have summarized the principles of the Toyota Way as:[8]

[edit] Long-term philosophy1. Base your management decisions on a long-term philosophy, even at the expense of short-term

financial goals.

[edit] The right process will produce the right results1. Create continuous process flow to bring problems to the surface.2. Use the "pull" system to avoid overproduction.

3. Level out the workload (heijunka). (Work like the tortoise, not the hare.)

4. Build a culture of stopping to fix problems, to get quality right from the first.

5. Standardized tasks are the foundation for continuous improvement and employee empowerment.

6. Use visual control so no problems are hidden.

7. Use only reliable, thoroughly tested technology that serves your people and processes.

[edit] Add value to the organization by developing your people and partners1. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.2. Develop exceptional people and teams who follow your company's philosophy.

3. Respect your extended network of partners and suppliers by challenging them and helping them improve.

[edit] Continuously solving root problems drives organizational learning

1. Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu, 現地現物);2. Make decisions slowly by consensus, thoroughly considering all options (Nemawashi, 根回し);

implement decisions rapidly;

3. Become a learning organization through relentless reflection (Hansei, 反省) and continuous improvement (Kaizen, 改善).

The Toyota production system has been compared to squeezing water from a dry towel. What this means is that it is a system for thorough waste elimination. Here, waste refers to anything which does not advance the process, everything that does not increase added value. Many people settle for eliminating the waste that everyone recognizes as waste. But much remains that simply has not yet been recognized as waste or that people are willing to tolerate.

People had resigned themselves to certain problems, had become hostage to routine and abandoned the practice of problem-solving. This going back to basics, exposing the real significance of problems and then making fundamental improvements, can be witnessed throughout the Toyota Production System.[9]

[edit] Results

Toyota was able to greatly reduce leadtime and cost using the TPS, while improving quality. This enabled it to become one of the ten largest companies in the world. It is currently as profitable as all the other car companies combined and became the largest car manufacturer in 2007. It has been proposed[10] that the TPS is the most prominent example of the 'correlation', or

middle, stage in a science, with material requirements planning and other data gathering systems representing the 'classification' or first stage. A science in this stage can see correlations between events and can propose some procedures that allow some predictions of the future. Due to the success of the production philosophy's predictions many of these methods have been copied by other manufacturing companies, although mostly unsuccessfully.

Also, many companies in different sectors of work (other than manufacturing) have attempted to adapt some or all of the principles of the Toyota Production System to their company. These sectors include construction and health care.

ToyotaFrom Wikipedia, the free encyclopedia

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For other uses, see Toyota (disambiguation).

Toyota Motor CorporationToyota Jidousha Kabushiki-gaisha

トヨタ自動車株式会社

Type

Public companyTYO: 7203LSE: TYTNYSE: TM

Industry

Automotive

Robotics

Financial services Founded August 28, 1937

Founder(s) Kiichiro Toyoda

Headquarters Toyota, Aichi, Japan

Area served Worldwide

Key people

Fujio Cho (Chairman and Representative Director)

Katsuaki Watanabe (Vice chairman and Representative Director)

Akio Toyoda (President and Representative Director)

Shoichiro Toyoda (Honorary Chairman)[1]

ProductsAutomobilesFinancial Services

Production output

7,308,039 units (FY2011)[2]

Revenue¥18.99 trillion (FY2011)[2] (US$235.89

billion)

Operating income

¥468.28 billion (FY2011)[2]

(US$5.82 billion)

Profit¥408.18 billion (FY2011)[2]

(US$5.07 billion)

Total assets¥29.818 trillion (FY2011)[2]

(US$370.3 billion)

Total equity¥10.33 trillion (FY2011)[2]

(US$128.32 billion)

Employees 317,734 (2010)[3]

Parent Toyota Group

Divisions Lexus

Scion Subsidiaries 522 (Toyota Group)

Hino Motors, Ltd.

Daihatsu Motor Co., Ltd.

Toyota Financial Services

DENSO

Toyota Industries Website Toyota Global

Toyota Motor Corporation (Japanese: トヨタ自動車株式会社 Toyota Jidōsha KK ? , IPA: [toꜜjota] [4] ) TYO: 7203, LSE: TYT, NYSE: TM, commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide[3], and was the world's largest automobile manufacturer by production.[5]

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors,[6] along with several "non-automotive" companies.[7] TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Contents

[hide]

1 Company overview 2 History

3 Logo and branding

o 3.1 Marketing

o 3.2 Sports

4 Ranking

5 Leadership

6 Company strategy

o 6.1 Operations

o 6.2 Worldwide presence

6.2.1 North America

7 Product line

o 7.1 Electric technology

7.1.1 Plug-in hybrids

7.1.2 All-electric vehicles

o 7.2 Cars

7.2.1 SUVs and crossovers

7.2.2 Pickup trucks

7.2.3 Luxury-type vehicles

8 Motorsport

o 8.1 TRD

9 Non-automotive activities

o 9.1 Aerospace

o 9.2 Philanthropy

o 9.3 Higher education

o 9.4 Robotics

o 9.5 Finance

o 9.6 Agricultural biotechnology

10 Financial information

o 10.1 Government bailouts

11 Production and sales numbers

12 Environmental record

13 History

o 13.1 Recent company developments

13.1.1 2007–2011 financial crisis

13.1.2 2009–2011 vehicle recalls

13.1.3 2011 Workers Strike in France

14 See also

15 References

16 External links

[edit] Company overview

Toyota headquarters in Toyota City, Japan

Toyota Motor Corporation is headquartered in Toyota City, Aichi. Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamura-ku, Nagoya.[8] In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.

In predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g. Hong Kong and Taiwan, Toyota is known as "豊田".[9] In predominantly Chinese speaking

countries using simplified Chinese characters (e.g. China), Toyota is known as "丰田"[10] (pronounced as "Fēngtián" in Mandarin Chinese ). These are the same characters as the founding family's name "Toyoda" in Japanese, which translate to "fertile rice paddies" in the Chinese language as well.

[edit] History

Mass production of Toyoda automated loom. Display the Toyota Museum in Nagakute-cho, Aichi-gun, Aichi Pref. Japan

In 1924 Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka, which means that the machine stops itself when a problem occurs, became later a part of the Toyota Production System. Looms were built on a small production line. In 1929, the patent for the automatic loom was sold to a British company, generating the starting capital for the automobile development.[11]

Toyoda Standard Sedan AA 1936

Vehicles were originally sold under the name "Toyoda" (トヨダ), from the family name of the company's founder, Kiichirō Toyoda. In April 1936, Toyoda's first passenger car, the Model AA was completed. The sales price was 3,350 yen, 400 yen cheaper than Ford or GM cars.[12]

House of Toyota founder Kiichiro Toyoda, near Toyota City [13]

In September 1936, the company ran a public competition to design a new logo. Out of 27,000 entries the winning entry was the three Japanese katakana letters for "Toyoda" in a circle. But Risaburō Toyoda, who had married into the family and was not born with that name, preferred "Toyota" (トヨタ) because it took eight brush strokes (a fortuitous number) to write in Japanese, was visually simpler (leaving off the diacritic at the end) and with a voiceless consonant instead of a voiced one (voiced consonants are considered to have a "murky" or "muddy" sound compared to voiceless consonants, which are "clear").

Inside the house of Toyota founder Kiichiro Toyoda, near Toyota City

Since "Toyoda" literally means "fertile rice paddies", changing the name also prevented the company being associated with old-fashioned farming. The newly formed word was trademarked and the company was registered in August 1937 as the "Toyota Motor Company".[14][15][16]

1st generation Toyopet Crown Model RSD (1955/1 – 1958/10)

From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet" (トヨペット).[17] The first vehicle sold under this name was the Toyopet SA [18] but it also included vehicles such as the Toyopet SB light truck, Toyopet Stout light truck,[19] Toyopet Crown and the Toyopet Corona. However, when Toyota eventually entered the American market in 1957 with the Crown, the name was not well received due to connotations of toys and pets.[20] The name was soon dropped for the American market but continued in other markets until the mid 1960s.

With over 30 million sold, the Corolla is one of the most popular and best selling cars in the world.

The Toyota Motor Company received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers in the lucrative US market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an "entry level" product, and their small vehicles employed a low level of quality in order to keep the price low.

By the early sixties, the US had begun placing stiff import tariffs on certain vehicles. The Chicken tax of 1964 placed a 25% tax on imported light trucks.[21] In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the early eighties.[21]

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General Motors called NUMMI, the New United Motor Manufacturing, Inc, operating an automobile-manufacturing plant in Fremont, California. The factory was an old General Motors plant that had been closed for two years. Toyota then started to establish new brands at the end of the 1980s, with the launch of their luxury division Lexus in 1989.

In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also began production of the world's best-selling hybrid car, the Prius, in 1997.

With a major presence in Europe, due to the success of Toyota Team Europe, the corporation decided to set up TMME, Toyota Motor Europe Marketing & Engineering, to help market vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had become very popular among British drivers. Bases in Indiana, Virginia and Tianjin were also set up. In 1999, the company decided to list itself on the New York and London Stock Exchanges.

In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank, which was accused of corruption by the Japan's government for making bad loans to alleged Yakuza crime syndicates with executives accused of blocking Financial Service Agency inspections.[22] The UFJ was listed among Fortune Magazine's largest money-losing corporations in the world, with Toyota's chairman serving as a director.[23] At the time, the UFJ was one of the largest shareholders of Toyota. As a result of Japan's banking crisis, UFJ merged with the Bank of Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group.

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with French motoring companies Citroën and Peugeot a year after Toyota started producing cars in France.

Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year 2005[24] but slid to 55 for 2011.[25] The company was number one in global automobile sales for the first quarter of 2008.[26]

On December 7, 2004, a US press release was issued stating that Toyota would be offering Sirius Satellite Radios. However, as late as January 27, 2007, Sirius Satellite Radio and XM Satellite radio kits were not available for Toyota factory radios.[citation needed] While the press release enumerated nine models, only limited availability existed at the dealer level in the US. As of 2008, all Toyota and Scion models have either standard or available XM radio kits. Major Lexus dealerships have been offering satellite radio kits for Lexus vehicles since 2005, in addition to factory-equipped satellite radio models.

In 2007, Toyota released an update of its full size truck, the Tundra, produced in two American factories, one in Texas and one in Indiana. "Motor Trend" named the Tundra "Truck of the Year," and the 2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two new factories, one to build the RAV4 in Woodstock, Ontario, Canada and the other to build the Toyota Prius in Blue Springs, Mississippi, USA. This plant was originally intended to build the Toyota Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The company has also found recent success with its smaller models—the Corolla and Yaris—as gasoline prices have risen rapidly in the last few years.

[edit] Logo and branding

Employee at Toyota Museum explains development of Toyota name and brand

In 1936, Toyota entered the passenger car market with its Model AA and held a competition to establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries, one was selected that additionally resulted in a change of its moniker to "Toyota" from the family name "Toyoda." It was believed that the new name sounded better and its eight-stroke count in the Japanese language was associated with wealth and good fortune. The original logo no longer is found on its vehicles but remains the corporate emblem used in Japan.

Still, there were no guidelines for the use of the brand name, "TOYOTA", which was used throughout most of the world, which led to inconsistencies in its worldwide marketing campaigns.

To remedy this, Toyota introduced a new worldwide logo in October 1989 to commemorate the 50th year of the company, and to differentiate it from the newly released luxury Lexus brand. The logo made its debut on the 1989 Toyota Celsior and quickly gained worldwide recognition. There are three ovals in the new logo that combine to form the letter "T", which stands for Toyota. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future."[27][28]

The logo started appearing on all printed material, advertisements, dealer signage, and the vehicles themselves in 1990.

[edit] MarketingThe examples and perspective in this section deal primarily with the United States and do not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page. (February 2011)

MEGAWEB, Toyota's permanent exhibition showroom and museum in Odaiba, Tokyo

Toyota's marketing efforts have focused on emphasizing the positive experiences of ownership and vehicle quality.[29] The ownership experience has been targeted in slogans such as "You asked for it! You got it!" (1975–1979), "Oh, what a feeling!" (1979 – September 1985, in the US),[29] "Who could ask for anything more" (September 1985–1989), "I love what you do for me, Toyota!" (1989–1997), "Everyday" (1997–2001)", "Get the feeling!" (2001–2004), and "Moving Forward" (2004–present).[30]

Recently, Toyota's new United States marketing strategy has included such hits as "Swagger Wagon"[31] and the marketing for the new Avalon,[32] which includes a throwback to the "old days of travel."

[edit] SportsSee Toyota Center, Toyota Park, Toyota Racing, Toyota Racing Development, and Toyota in motorsports

[edit] Ranking

Top 3 Automakers Global, OICA, 2010

Group Units % Share

Toyota 8,557,351 11.0

GM 8,476,192 10.9

Volkswagen 7,341,065 9.4

The worldwide ranking of automakers is compiled once per year by the International Organization of Motor Vehicle Manufacturers OICA. In 2010, the Toyota Motor Corporation ranked first on the list with 8.6 million units produced globally.(Market share based on OICA 2010 global total of 77,743,862)[5]

By the middle of 2011, former global leader Toyota had fallen to place three, with GM first and Volkswagen second. However, the annual ranking is established once per year, with the OICA list usually published in late July or early August of the following year. Officially, the 2010 ranking will remain in place until the 2011 ranking is announced by the third quarter of 2012.[33] [34] [35]

[edit] Leadership

Akio Toyoda, CEO Toyota Motor Corporation, at the annual results press conference May 11, 2011

President of Toyota Motor Industries:

Rizaburo Toyoda (1937–1941) Kiichiro Toyoda (1941–1950)

Taizo Ishida (1950–1961)

Fukio Nakagawa (1961–1967)

Eiji Toyoda (1967–1981)

President of Toyota Motor Corporation:

Eiji Toyoda (1981) Shoichiro Toyoda (1982–1992)

CEO of Toyota Motor Corporation:

Dr. Tatsuro Toyoda (1992–1995) Hiroshi Okuda (1995–1999)

Fujio Cho (1999–2005)

Katsuaki Watanabe (2005–2009)

Akio Toyoda (2009–present)

Chairman of Toyota Motor Corporation:

Shoichiro Toyoda (1992–1999) Hiroshi Okuda (1999–2006)

Fujio Cho (2006–present)

[edit] Company strategy

Main article: The Toyota Way

Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in developing.[36] Toyota's managerial values and business methods are known collectively as the Toyota Way.

In April 2001 the Toyota Motor Corporation 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, Toyota summarizes its values and conduct guidelines with the following five principles:[37]

Challenge Kaizen (improvement)

Genchi Genbutsu (go and see)

Respect

Teamwork

According to external observers, the Toyota Way has four components:[38]

1. Long-term thinking as a basis for management decisions.2. A process for problem-solving.

3. Adding value to the organization by developing its people.

4. Recognizing that continuously solving root problems drives organizational learning.

The Toyota Way incorporates the Toyota Production System.

[edit] OperationsMain article: Toyota Production System

New Toyota factory in Ohira, near Sendai, Miyagi Prefecture, Japan. A month after this picture was taken, the region was devastated by the March 11 earthquake and tsunami. The plant was only lightly damaged, but remained closed for more than a month, mainly due to lack of supplies and energy, in addition to a badly damaged Sendai port.

Toyota has long been recognized as an industry leader in manufacturing and production. Three stories of its origin have been found,[where?] one that they studied Piggly-Wiggly's just-in-time distribution system, one that they followed the writings of W. Edwards Deming, and one that they were given the principles from a WWII US government training program (Training Within Industry).[citation needed] It is possible that all these, and more, are true.[vague] Regardless of the origin, the principles described by Toyota in its management philosophy, The Toyota Way, are: Challenge, Kaizen (improvement), Genchi Genbutsu (go and see), Respect, and Teamwork.[37]

As described by external observers of Toyota, the principles of the Toyota Way are:[38]

1. Base your management decisions on a long-term philosophy, even at the expense of short-term goals

2. Create continuous process flow to bring problems to the surface

3. Use "pull" systems to avoid overproduction

4. Level out the workload

5. Build a culture of stopping to fix problems, to get quality right the first time

6. Standardized tasks are the foundation for continuous improvement and employee empowerment

7. Use visual control so no problems are hidden

8. Use only reliable, thoroughly tested technology that serves your people and processes

9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others

10. Develop exceptional people and teams who follow your company’s philosophy

11. Respect your extended network of partners and suppliers by challenging them and helping them improve

12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu)

13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly

14. Become a learning organization through relentless reflection and continuous improvement

Toyota Pavilion at the Expo in Aichi

Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. It displaced GM and became the world's largest automobile maker for the year 2008. It held the title of the most profitable automobile maker (US$11 billion in 2006) along with increasing sales in, among other countries, the United States. The world headquarters of Toyota are located in its home country in Toyota City, Japan. Its subsidiary, Toyota Financial Services sells financing and participates in other lines of business. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. Toyota also owns 51% of Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures Subaru vehicles. They also acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be introducing Isuzu diesel technology into their products.

Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-electric vehicles, of which it says it has sold 2 million globally as of 2010,[39] Advanced Parking Guidance System (automatic parking), a four-speed electronically controlled automatic with buttons for power and economy shifting, and an eight-speed automatic transmission.

Toyota, and Toyota-produced Lexus and Scion automobiles, consistently rank near the top in certain quality and reliability surveys, primarily J.D. Power and Consumer Reports [40] although they led in automobile recalls for the first time in 2009.[41]

In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company, produced 8.54 million vehicles, about 500,000 fewer than the number produced by GM that year. Toyota has a large market share in the United States, but a small market share in Europe. Its also sells vehicles in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has significant market shares in several fast-growing Southeast Asian countries.[42]

According to the 2008 Fortune Global 500, Toyota Motor is the fifth largest company in the world. Since the recession of 2001, it has gained market share in the United States. Toyota's market share struggles in Europe where its Lexus brand has three tenths of one percent market share, compared to nearly two percent market share as the US luxury segment leader.

In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand for Corolla and Camry sedans. The difference in performance was largely attributed to surging demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a facility in San Antonio.[43] Toyota has experienced quality problems and was reprimanded by the government in Japan for its recall practices.[44] Toyota currently maintains over 16% of the US market share and is listed second only to GM in terms of volume.[45] Toyota Century Royal is the official state car of the Japanese imperial family, namely for the current Emperor of Japan.

Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast its first annual loss in 70 years.[46] In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles.[47]

Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.[48]

[edit] Worldwide presence

The Camry is assembled in several facilities around the world including Australia, China, Taiwan, Japan, Malaysia, Philippines, Russia, Thailand, India, Vietnam and the United States.

Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka, Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United States, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico, Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.

Toyota's net revenue by geographical regions for the year ended March 31, 2007[49]

Geographic region Total sales ( Yen in millions)

Japan 8,152,884

North America 8,771,495

Europe 3,346,013

Asia 1,969,957

Others 1,707,742

In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and to satisfy market demand in more than 140 countries worldwide. IMV called for diesel engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in India and the Philippines, for supply to the countries charged with vehicle production. For vehicle assembly, Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota Innova.[50]

[edit] North America

Main article: Toyota Motor Engineering & Manufacturing North America

Toyota Motor North America headquarters is located in Torrance, California and operates as a holding company in North America. Its manufacturing headquarters is located in Hebron, Kentucky, and is known as Toyota Motor Engineering & Manufacturing North America, or TEMA.

A Toyota dealership in Fremont, California.

Toyota Canada Inc. has been in production in Canada since 1983 with an aluminium wheel plant in Delta, British Columbia which currently employs a workforce of roughly 260. Its first vehicle assembly plant, in Cambridge, Ontario since 1988, now produces Corolla compact cars, Matrix crossover vehicles and Lexus RX 350 luxury SUVs, with a workforce of 4,300 workers. Its second assembly operation in Woodstock, Ontario began manufacturing the RAV4 late in 2008.[51] In 2006, Toyota's subsidiary Hino Motors opened a heavy duty truck plant, also in Woodstock, employing 45 people and producing 2000 trucks annually.[52]

Toyota Technical Center, Ann Arbor Twp., MI

Toyota has a large presence in the United States with five major assembly plants in Huntsville, Alabama; Georgetown, Kentucky; Princeton, Indiana; San Antonio, Texas; Buffalo, West Virginia. A new plant in Blue Springs, Mississippi is currently being finished after being put on hold during the recent economic downturn. The Mississippi operation is scheduled to go online with production in July or August 2011. Toyota had a joint-venture operation with General Motors at New United Motor Manufacturing Inc. (NUMMI), in Fremont, California, which began in 1984 and ended in 2009.[53] It still has a joint-venture with Subaru at Subaru of Indiana Automotive, Inc. (SIA), in Lafayette, Indiana, which started in 2006. In these assembly plants, the Camry and the Tundra are manufactured, among others.

Toyota marketing, sales, and distribution in the US are conducted through a separate subsidiary, Toyota Motor Sales, U.S.A., Inc.. It has started producing larger trucks, such as the new Tundra, to go after the large truck market in the United States. Toyota is also pushing hybrid vehicles in the US such as the Prius, Camry Hybrid, Highlander Hybrid, and various Lexus products.

Toyota has sold more hybrid vehicles in the country than any other manufacturer.

[edit] Product line

[edit] Electric technology

Toyota Prius, flagship of Toyota's hybrid technology

Main articles: Hybrid Synergy Drive and Hybrid electric vehicle

Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles, an example being the Toyota Prius. The company eventually began providing this option on the main smaller cars such as Camry and later with the Lexus divisions, producing some hybrid luxury vehicles. It labeled such technology in Toyota cars as "Hybrid Synergy Drive" and in Lexus versions as "Lexus Hybrid Drive."

The Prius has become the top selling hybrid car in America. Toyota, as a brand, now has four hybrid vehicles in its lineup: the Prius, Auris, Highlander, and Camry. The popular minivan Toyota Sienna is scheduled to join the hybrid lineup by 2010, and by 2030 Toyota plans to offer its entire lineup of cars, trucks, and SUVs with a Hybrid Synergy Drive option (Toyota has said it plans to make a hybrid-electric system available on every vehicle it sells worldwide sometime in the 2010s).[54]

Lexus LS 600h hybrid sedan.

Worldwide sales of hybrid vehicles produced by Toyota reached 1.0 million vehicles by May 31, 2007, and the 2.0 million mark was reached by August 31, 2009, with hybrids sold in 50 countries.[55][56] Toyota's hybrid sales are led by the Prius, with worldwide cumulative sales of 1.43 million by August 2009.[55] Toyota's CEO has committed to eventually making every car of the company a hybrid vehicle.[57][58] Lexus also has their own hybrid lineup, consisting of the GS 450h, RX 400h, and launched in 2007, the LS 600h/LS 600h L.

Toyota and Honda have already said they've halved the incremental cost of electric hybrids and see cost parity in the future (even without incentives).[59] Hybrids are viewed by some automobile makers as a core segment of the future vehicle market.[60]

[edit] Plug-in hybrids

Main article: Plug-in hybrid

Plug-in Prius concept

Toyota is currently testing its "Toyota Plug-in HV" in Japan, the United States, and Europe. Like GM's Volt, it uses a lithium-ion battery pack, but unlike the Volt, it can run on the gasoline or electric engine alone. The PHEV (plug-in hybrid electric vehicle) could have a lower environmental impact than existing hybrids.[61][62]

On June 5, 2008, A123Systems announced that its Hymotion plug-in hybrid conversion kits for the Prius would be installed by six dealers, including four Toyota dealerships: Westboro Toyota in Boston, Fitzgerald Toyota in Washington D.C., Toyota of Hollywood in Los Angeles, and Madison Wisconsin-based Smart Motors.[63]

In April of 2011, Toyota announced that the New Plug-In Prius will be arriving by 2012.

[edit] All-electric vehicles

Toyota is speeding up the development of vehicles that run only on electricity with the aim of mass-producing them in the early part of this decade. Road tests for the current prototype, called "e-com", had ended in 2006.[64] Toyota has made many concept electric vehicles, including the FT-EV and FT-EV II.

In May 2010, Toyota launched a collaboration with Tesla Motors to create electric vehicles. Toyota agreed to purchase US$50 million of Tesla common stock subsequent to the closing of Tesla's planned initial public offering.[65] Tesla will buy Toyota's recently closed NUMMI factory for US$42 million.[66][67] Toyota plans to release an electric version of the RAV4 by 2012 using components from Tesla and the platform of the RAV4.

Second generation Toyota Estima Hybrid

[edit] CarsFurther information: List of Toyota vehicles

As of 2009, Toyota officially lists approximately 70 different models sold under its namesake brand, including sedans, coupes, vans, trucks, hybrids, and crossovers.[68] Many of these models are produced as passenger sedans, which range from the subcompact Toyota Yaris, to compact Corolla, to mid-size Camry, and full-size Avalon.[68] Vans include the Previa/Estima, Sienna, and others.[68] Several small cars, such as the xB and tC, are sold under the Scion brand.[68]

[edit] SUVs and crossovers

Toyota crossovers range from the compact Matrix and RAV4, to midsize Venza and Kluger/Highlander.[68] Toyota SUVs range from the midsize 4Runner to full-size Land Cruiser.[68]

Other SUVs include the Land Cruiser Prado and FJ Cruiser.[68]

[edit] Pickup trucks

The examples and perspective in this section may not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page. (August 2010)

2007 Tundra Double Cab

Toyota first entered the pickup truck market in 1947 with the SB that was only sold in Japan and limited Asian markets. It was followed in 1954 by the RK (renamed in 1959 as the Stout) and in 1968 by the compact Hilux. With continued refinment, the Hilux (simply known as the Pickup in

some markets) became famous for being extremely durable and reliable, and many of these trucks from as early as the late 1970s are still on the road today, some with over 300,000 miles. Extended and crew cab versions of these small haulers would eventually be added, and Toyota continues to produce them today under various names depending on the market.

Riding on the success of the compact pickups in the US, Toyota decided to attempt to enter the traditionally domestic-dominated full-size pickup market, introducing the T100 for the 1993 US model year, with production ending in 1998. While having a bed at the traditional full-size length of 8 feet, the suspension and engine characteristics were still similar to that of a compact pickup. It proved to be as economical and reliable as any typical Toyota pickup, but sales never became what Toyota brass had hoped for. It was criticized as being too small to appeal to the traditional American full-size pickup buyer. Another popular full-size truck essential, a V8 engine, was never available. Additionally, the truck was at first only available as a regular cab, though Toyota addressed this shortcoming and added the Xtracab version in mid-1995.

In 1999 for the 2000 model year, Toyota replaced the T100 with the larger Tundra. The Tundra addressed criticisms that the T100 did not have the look and feel of a legit American-style full-size pickup. It also added the V8 engine that the T100 was criticized for not having. However, the Tundra still came up short in towing capacity as well as still feeling slightly carlike. These concerns were addressed with an even larger 2007 redesign. A stronger V6 and a second V8 engine among other things were added to the option list. As of early 2010, the Tundra has captured 16 percent of the full-size half-ton market in the US.[citation needed] The all-new Tundra is assembled in San Antonio, Texas, US. Toyota Motor Corporation assembled around 150,000 Standard and Double Cabs, and only 70,000 Crew Max's in 2007. The smaller Tacoma (which traces its roots back to the original Hilux) is also now produced at the company's San Antonio facility.

Outside the United States, Toyota produces the Hilux in Standard and double cab, gasoline and diesel engine, 2WD and 4WD versions. The BBC's Top Gear TV show featured 2 episodes of a Hilux that was deemed "virtually indestructible".[69]

[edit] Luxury-type vehicles

Further information: List of Lexus vehicles

As of 2009, the company sells nine luxury-branded models under its Lexus division, ranging from the LS sedan to RX crossover and LX SUV.[68] Luxury-type sedans produced under the Toyota brand include the Century, Crown Royal, and Crown Athlete.[68] A limited-edition model produced for the Emperor of Japan is the Century Royal.

[edit] Motorsport

Main article: Toyota in motorsports

Toyota has been involved in many global motorsports series. They also represent their Lexus brand in other sports car racing categories. Toyota also makes engines and other auto parts for

other Japanese motorsports including formula Nippon, Super GT, formula 3 and formula Toyota series. Toyota also runs a driver development programme known as TDP (Toyota Young Drivers Program) which they made for funding and educating future Japanese motorsports talent.[70] Toyota Motorsport GmbH, with and headquarters in Cologne, Germany) was previously responsible for Toyota's major motorsports development including Formula One. Toyota Motorsport GmbH also developed cars for World Rally Championship and Le Mans Series. Toyota enjoyed success in all these motorsports categories. In 2002, Toyota entered Formula One as a constructor and engine supplier, however despite having experienced drivers and a larger budget than many other teams, they failed to match their success in other categories, with five second places their best results. On November 4, 2009 Toyota announced they were pulling out of the sport due to the global economic situation.

[edit] TRD

Toyota Racing Development was brought about to help develop true high performance racing parts for many Toyota vehicles. TRD has often had much success with their after market tuning parts, as well as designing technology for vehicles used in all forms of racing.TRD is also responsible for Toyota's involvement in NASCAR motorsports.

[edit] Non-automotive activities

[edit] Aerospace

Toyota is a minority shareholder in Mitsubishi Aircraft Corporation, having invested US$67.2 million in the new venture which will produce the Mitsubishi Regional Jet, slated for first deliveries in 2013.[71] Toyota has also studied participation in the general aviation market and contracted with Scaled Composites to produce a proof-of-concept aircraft, the TAA-1 in 2002.[72]

[edit] Philanthropy

The Toyota Municipal Museum of Art in Aichi, sponsored by the manufacturer

Toyota is supporter of the Toyota Family Literacy Program along with National Center for Family Literacy, helping low-income community members for education, United Negro College

Fund (40 annual scholarships), National Underground Railroad Freedom Center (US$1 million) among others.[73] Toyota created the Toyota USA Foundation.

[edit] Higher education

Toyota established the Toyota Technological Institute in 1981, as Sakichi Toyoda had planned to establish a university as soon as he and Toyota became successful. Toyota Technological Institute founded the Toyota Technological Institute at Chicago in 2003. Toyota is supporter of the "Toyota Driving Expectations Program," "Toyota Youth for Understanding Summer Exchange Scholarship Program," "Toyota International Teacher Program," "Toyota TAPESTRY," "Toyota Community Scholars" (scholarship for high school students), "United States Hispanic Chamber of Commerce Internship Program," and "Toyota Funded Scholarship."[74] It has contributed to a number of local education and scholarship programs for the University of Kentucky, Indiana, and others.[74]

[edit] RoboticsMain article: Toyota Partner Robot

Toyota trumpet-playing robot

In 2004, Toyota showcased its trumpet-playing robot.[75] Toyota has been developing multitask robots destined for elderly care, manufacturing, and entertainment. A specific example of Toyota's involvement in robotics for the elderly is the Brain Machine Interface. Designed for use with wheelchairs, it "allows a person to control an electric wheelchair accurately, almost in real-time", with his mind.[76] The thought controls allow the wheelchair to go left, right and forward with a delay between thought and movement of just 125 milliseconds.[76]

[edit] Finance

Toyota Financial Services Corporation provides financing to Toyota customers.

[edit] Agricultural biotechnology

Toyota invests in several small start-up businesses and partnerships in biotechnology, including:

P.T. Toyota Bio Indonesia in Lampung, Indonesia Australian Afforestation Pty. Ltd. in Western Australia and Southern Australia

Toyota Floritech Co., Ltd. in Rokkasho-Mura, Kamikita District, Aomori Prefecture

Sichuan Toyota Nitan Development Co., Ltd. in Sichuan, China

Toyota Roof Garden Corporation in Miyoshi-Cho, Aichi Prefecture

[edit] Financial information

Toyota is publicly traded on the Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo exchanges under company code TYO: 7203. In addition, Toyota is foreign-listed on the New York Stock Exchange under NYSE: TM and on the London Stock Exchange under LSE: TYT. Toyota has been publicly traded in Japan since 1949 and internationally since 1999.[77]

As reported on its consolidated financial statements, Toyota has 540 consolidated subsidiaries and 226 affiliates.

Toyota Motor North America (100% – 2004) Toyota Canada Inc. owned via Toyota Motor North America

Toyota Tsusho – Trading company for the Toyota Group

Daihatsu Motor Company (51.2% – March 31, 2006)

Hino Motors (50.1% – 2001)

Lexus 100% (1989)

Scion 100% (2003)

DENSO (24.74% – September 30, 2006)

Toyota Industries (23.51% – March 31, 2006)

Aisin Seiki Co. (23.0% – September 30, 2006)

Fuji Heavy Industries (16.66% – June 28, 2008)

Isuzu Motors (5.9% – November 10, 2006)

PT Toyota Astra Motor (49% – 2003)

PT Toyota Motor Manufacturing Indonesia (95% – 2003)

[edit] Government bailouts

Toyota's financial unit has asked for an emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at more than US$3 billion. It says the international financial situation is squeezing its business, forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. It is the first time the state-backed bank has been asked to lend to a Japanese car manufacturer.[78]

[edit] Production and sales numbers

Typical breakdown of sales by region

Calendar YearTotal Japan United States

Production Sales Production Sales Sales

1935 20

1936 1,142

1937 4,013

1938 4,615

1939 11,981

1940 14,787

1941 14,611

1942 16,302

1943 9,827

1944 12,720

1945 3,275

1946 5,821

1947 3,922

1948 6,703

1949 10,824

1950 11,706

1951 14,228

1952 42,106

1953 16,496

1954 22,713

1955 22,786

1956 46,716

1957 79,527

1958 78,856

1959 101,194

1960 154,770

1961 210,937

1962 230,350

1963 318,495

1964 425,764

1965 477,643

1966 587,539

1967 832,130

1968 1,097,405

1969 1,471,211

1970 1,609,190

1971 1,955,033

1972 2,087,133

1973 2,308,098

1974 2,114,980

1975 2,336,053

1976 2,487,851

1977 2,720,758

1978 2,929,157

1979 2,996,225

1980 3,293,344

1981 3,220,418

1982 3,144,557

1983 3,272,335

1984 3,429,249

1985 3,665,622

1986 3,660,167

1987 3,638,279

1988 3,956,697[79] 2,120,273[79]

1989 3,975,902[79] 2,308,863[79]

1990 4,212,373[79] 2,504,291[79]

1991 4,085,071[79] 2,355,356[79]

1992 3,931,341[79] 2,228,941[79]

1993 3,561,750[79] 2,057,848[79]

1994 3,508,456[79] 2,031,064[79]

1995 3,171,277[79] 2,060,125[79]

1996 3,410,060[79] 2,135,276[79]

1997 3,502,046[79] 2,005,949[79]

1998 5,210,000[80]

1999 5,462,000[81]

2000 5,954,723[82] 1,619,206[83]

2001 5,847,743[84] 4,046,637[84] 2,291,503[84] 1,741,254[citation needed]

2002 6,309,307[85] 4,138,873[85] 2,218,324[85] 1,756,127[86]

2003 6,826,166[87] 4,244,667[87] 2,305,635[87] 1,866,314[citation needed]

2004 7,547,177[88] 4,454,212[88] 2,387,556[88] 2,060,049[89]

2005 8,232,143[90] 4,611,076[90] 2,368,817[90] 2,260,296[citation needed]

2006 9,017,786[91] 5,085,600[91] 2,368,706[91] 2,542,524[92]

2007 9,497,754[93] 5,119,631[93] 2,261,515[93] 2,620,825[citation needed]

2008 9,225,236[94] 4,911,861[94] 2,153,197[94] 2,217,662[95]

2009 7,234,439[96] 3,543,199[96] 1,996,174[96] 1,770,147[97]

2010 8,557,351[98] 8,418,000[99] 4,047,343[100] 2,203,849[100] 1,763,595[101]

Calendar YearProduction Sales Production Sales Sales

Total Japan United States

Japan production numbers 1937 to 1987.[102] Global production since 1998, global and Japanese production, Japanese sales since 2001 consolidated incl. Daihatsu and Hino.

[edit] Environmental record

The Toyota Motor Corporation (TMC) has been a leader in environmentally friendly vehicle technologies, most notably the RAV4 EV (produced from 1997 to 2003) and the Toyota Prius (1997 to present). Toyota is now working on their next generation Prius and second generation RAV4 EV both due out in 2012.

Toyota implemented its Fourth Environmental Action Plan in 2005. The plan contains four major themes involving the environment and the corporation's development, design, production, and sales. The five-year plan is directed at the, "arrival of a revitalized recycling-based society."[103] Toyota had previously released its Eco-Vehicle Assessment System (Eco-VAS) which is a systematic life cycle assessment of the effect a vehicle will have on the environment including production, usage, and disposal. The assessment includes, "... fuel efficiency, emissions and noise during vehicle use, the disposal recovery rate, the reduction of substances of environmental concern, and CO2 emissions throughout the life cycle of the vehicle from production to disposal."[104] 2008 marks the ninth year for Toyota's Environmental Activities Grant Program which has been implemented every year since 2000. Themes of the 2008 program consist of "Global Warming Countermeasures" and "Biodiversity Conservation."[105]

Since October 2006, Toyota's new Japanese-market vehicle models with automatic transmissions are equipped with an Eco Drive Indicator. The system takes into consideration rate of acceleration, engine and transmission efficiency, and speed. When the vehicle is operated in a fuel-efficient manner, the Eco Drive Indicator on the instrument panel lights up. Individual results vary depending on traffic issues, starting and stopping the vehicle, and total distance traveled, but the Eco Drive Indicator may improve fuel efficiency by as much as 4%.[106] Along with Toyota's eco-friendly objectives on production and use, the company plans to donate US$1 million and five vehicles to the Everglades National Park. The money will be used to fund environmental programs at the park. This donation is part of a program which provides US$5 million and 23 vehicles for five national parks and the National Parks Foundation.[107] However new figures from the United States National Research Council show that the continuing hidden health costs of the auto industry to the US economy in 2005 amounted to US$56 million.[108]

The United States EPA has awarded Toyota Motor Engineering & Manufacturing North America, Inc (TEMA) with a ENERGY STAR Sustained Excellence Award in 2007, 2008 and 2009[109][110][111]

In 2007, Toyota's Corporate Average Fuel Economy (CAFE) fleet average of 26.69 mpg-US (8.813 L/100 km; 32.05 mpg-imp) exceeded all other major manufactures selling cars within the United States. Only Lotus Cars which sold the Elise and Exige powered by Toyota's 2ZZ-GE engine did better with an average of 30.2 mpg-US (7.79 L/100 km; 36.3 mpg-imp).[112]

[edit] History

Main article: History of Toyota

Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda.[113] Its first vehicles were the A1 passenger car and the G1 in 1935. Toyota Motor Co. was established as an independent company in 1937. In 2008, Toyota's sales surpassed General Motors, making Toyota number one in the world.[114]

[edit] Recent company developments

[edit] 2007–2011 financial crisis

On May 8, 2009, Toyota reported a record annual net loss of US$4.2 billion, making it the latest automobile maker to be severely affected by the global financial crisis that started from 2007.

[edit] 2009–2011 vehicle recalls

Main article: 2009–2010 Toyota vehicle recalls

From November 2009 through the first quarter of 2010, Toyota recalled more than 8 million (accounts differ) cars and trucks worldwide in several recall campaigns, and briefly halted production and sales.[115][116] The US Sales Chief, James Lentz, was questioned by the United States Congress committees on Oversight and Investigations on February 23, 2010, as a result of recent recalls.[117] On February 24, 2010, Toyota CEO Akio Toyoda testified before the House Committee on Oversight and Government Reform.[118] On April 6, 2010, The US government sought a record penalty of US$16.375 million from Toyota for its delayed response in notifying the National Highway Traffic Safety Administration regarding the defective accelerator pedals.[119] On May 18, 2010, Toyota paid the fine without an admission of wrongdoing.[120][121][122] The record fine and the high profile hearings caused accusations of conflict of interest. Senior managing director Takahiko Ijichi said that recall-related costs in the financial year that ended March 2010 totaled US$1.93 billion (¥180 billion).[123] NHTSA, NASA and MLIT have been involved in the investigations, driver error or pedal misapplication was found responsible for most of the incidents. This included sticking accelerator pedals, and pedals caught under floor mats.

[edit] 2011 Workers Strike in France

On March 31, 2011, the Toyota Factory in Onnaing, France, was hit by a strike of several hundred workers asking for more pay.[124] [125]

[edit] See also

Companies portal

Japanese Car portal

The Toyota Group List of Toyota vehicles

List of Toyota engines

List of Toyota manufacturing facilities

List of Toyota transmissions

Toyota Production System

Toyota Verblitz , the company's rugby team

Nagoya Grampus , formerly the company's football (soccer) club and still sponsored by them

Toyota War , a conflict between Libya and Chad which saw a heavy use of Toyota's pickup trucks.

Toyota Production SystemFrom Wikipedia, the free encyclopedia

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The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "Lean

manufacturing." Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed the system between 1948 and 1975.[1]

Originally called "Just-in-Time Production," it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The founders of Toyota drew heavily on the work of W. Edwards Deming and the writings of Henry Ford. When these men came to the United States to observe the assembly line and mass production that had made Ford rich, they were unimpressed. While shopping in a supermarket they observed the simple idea of an automatic drink resupplier; when the customer wants a drink, he takes one, and another replaces it. The principles underlying the TPS are embodied in The Toyota Way.

Contents

[hide]

1 Goals 2 Origins

3 Principles

o 3.1 Continuous Improvement

o 3.2 Respect for People

o 3.3 Long-term philosophy

o 3.4 The right process will produce the right results

o 3.5 Add value to the organization by developing your people and partners

o 3.6 Continuously solving root problems drives organizational learning

4 Results

5 Commonly used terminology

6 See also

7 Notes

8 References

9 External links

[edit] Goals

The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required results smoothly; by

designing out "mura" (inconsistency). It is also crucial to ensure that the process is as flexible as necessary without stress or "muri" (overburden) since this generates "muda" (waste). Finally the tactical improvements of waste reduction or the elimination of muda are very valuable. There are eight kinds of muda that are addressed in the TPS:

1. over-production2. motion (of operator or machine)

3. waiting (of operator or machine)

4. conveyance

5. processing itself

6. inventory (raw material)

7. correction (rework and scrap)

8. unused creativity

The elimination of waste has come to dominate the thinking of many when they look at the effects of the TPS because it is the most familiar of the three to implement. In the TPS many initiatives are triggered by inconsistency or overburden reduction which drives out waste without specific focus on its reduction.

[edit] Origins

This system, more than any other aspect of the company, is responsible for having made Toyota the company it is today. Toyota has long been recognized as a leader in the automotive manufacturing and production industry.[2]

Toyota received their inspiration for the system, not from the American automotive industry (at that time the world's largest by far), but from visiting a supermarket. This occurred when a delegation from Toyota (led by Ohno) visited the United States in the 1950s. The delegation first visited several Ford Motor Company automotive plants in Michigan but, despite Ford being the industry leader at that time, found many of the methods in use to be not very effective. They were mainly appalled by the large amounts of inventory on site, by how the amount of work being performed in various departments within the factory was uneven on most days, and the large amount of rework at the end of the process.[3]

However, on a subsequent visit to a Piggly Wiggly,[4] the delegation was inspired by how the supermarket only reordered and restocked goods once they had been bought by customers. Toyota applied the lesson from Piggly Wiggly by reducing the amount of inventory they would hold only to a level that its employees would need for a small period of time, and then subsequently reorder. This would become the precursor of the now-famous Just-in-Time (JIT) inventory system.[3]

While low inventory levels are a key outcome of the Toyota Production System, an important element of the philosophy behind its system is to work intelligently and eliminate waste so that inventory is no longer needed. Many American businesses, having observed Toyota's factories, set out to attack high inventory levels directly without understanding what made these reductions possible.[5] The act of imitating without understanding the underlying concept or motivation may have led to the failure of those projects.

[edit] Principles

Main article: The Toyota Way

The underlying principles, called the Toyota Way, have been outlined by Toyota as follows:[6][7]

[edit] Continuous Improvement Challenge (We form a long-term vision, meeting challenges with courage and creativity to

realize our dreams.) Kaizen (We improve our business operations continuously, always driving for innovation and

evolution.)

Genchi Genbutsu (Go to the source to find the facts to make correct decisions.)

[edit] Respect for People Respect (We respect others, make every effort to understand each other, take responsibility and

do our best to build mutual trust.) Teamwork (We stimulate personal and professional growth, share the opportunities of

development and maximize individual and team performance.)

External observers have summarized the principles of the Toyota Way as:[8]

[edit] Long-term philosophy1. Base your management decisions on a long-term philosophy, even at the expense of short-term

financial goals.

[edit] The right process will produce the right results1. Create continuous process flow to bring problems to the surface.2. Use the "pull" system to avoid overproduction.

3. Level out the workload (heijunka). (Work like the tortoise, not the hare.)

4. Build a culture of stopping to fix problems, to get quality right from the first.

5. Standardized tasks are the foundation for continuous improvement and employee empowerment.

6. Use visual control so no problems are hidden.

7. Use only reliable, thoroughly tested technology that serves your people and processes.

[edit] Add value to the organization by developing your people and partners1. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.2. Develop exceptional people and teams who follow your company's philosophy.

3. Respect your extended network of partners and suppliers by challenging them and helping them improve.

[edit] Continuously solving root problems drives organizational learning

1. Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu, 現地現物);2. Make decisions slowly by consensus, thoroughly considering all options (Nemawashi, 根回し);

implement decisions rapidly;

3. Become a learning organization through relentless reflection (Hansei, 反省) and continuous improvement (Kaizen, 改善).

The Toyota production system has been compared to squeezing water from a dry towel. What this means is that it is a system for thorough waste elimination. Here, waste refers to anything which does not advance the process, everything that does not increase added value. Many people settle for eliminating the waste that everyone recognizes as waste. But much remains that simply has not yet been recognized as waste or that people are willing to tolerate.

People had resigned themselves to certain problems, had become hostage to routine and abandoned the practice of problem-solving. This going back to basics, exposing the real significance of problems and then making fundamental improvements, can be witnessed throughout the Toyota Production System.[9]

[edit] Results

Toyota was able to greatly reduce leadtime and cost using the TPS, while improving quality. This enabled it to become one of the ten largest companies in the world. It is currently as profitable as all the other car companies combined and became the largest car manufacturer in 2007. It has been proposed[10] that the TPS is the most prominent example of the 'correlation', or middle, stage in a science, with material requirements planning and other data gathering systems representing the 'classification' or first stage. A science in this stage can see correlations between events and can propose some procedures that allow some predictions of the future. Due to the success of the production philosophy's predictions many of these methods have been copied by other manufacturing companies, although mostly unsuccessfully.

Also, many companies in different sectors of work (other than manufacturing) have attempted to adapt some or all of the principles of the Toyota Production System to their company. These sectors include construction and health care.

[edit] Commonly used terminology

Andon (行灯) (English: Signboard)

Genchi Genbutsu (現地現物) (English: Go and see for yourself)

Hansei (反省) (English: Self-reflection)

Heijunka (平準化) (English: Production Smoothing)

Jidoka (自働化) (English: Autonomation - automation with human intelligence)

Just-in-Time (ジャストインタイム) (JIT)

Kaizen (改善) (English: Continuous Improvement)

Kanban (看板, also かんばん) (English: Sign, Index Card)

Manufacturing supermarket where all components are available to be withdrawn by a process

Muda (無駄, also ムダ) (English: Waste)

Mura (斑 or ムラ) (English: Unevenness)

Muri (無理) (English: Overburden)

Nemawashi (根回し) (English: Laying the groundwork, building consensus, literally: Going around the roots)

Poka-yoke (ポカヨケ) (English: fail-safing - to avoid (yokeru) inadvertent errors (poka)

[edit] See also

Taiichi Ohno Shigeo Shingo

W. Edwards Deming

Lean manufacturing

Lean Integration

The Toyota Way

[edit] Notes

1. ̂ Strategos-International. Toyota Production System and Lean Manufacturing.2. ̂ Brian Bremner, B. and C. Dawson (November 17, 2003). "Can Anything Stop Toyota?:

An inside look at how it's reinventing the auto industry". Business Week.

3. ^ a b Ohno, Taiichi (March 1998), Toyota Production System: Beyond Large-Scale Production, Productivity Press, ISBN 978-0915299140

4. ̂ Magee, David (November 2007), How Toyota Became #1 - Leadership Lessons from the World's Greatest Car Company, Portfolio Hardcover, ISBN 978-1591841791

5. ̂ Theory of Constraints, Eliyahu Goldratt, North River Press, 1990, p 30

6. ̂ Toyota internal document, "The Toyota Way 2001," April 2001

7. ̂ Toyota Motor Corporation Sustainability Report, 2009, page 54

8. ̂ Liker, J. 2004. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.

9. ̂ A study of the Toyota Production System, Shigeo Shingo, Productivity Press, 1989, p236

10. ̂ Theory of Constraints, Eliyahu Goldratt, North River Press, 1990, p 26