Toyota Principles of Mangement

Presented By Group 9

• Anchal Singh• Lalit Varma• Adithi Shetty• Amrit Jain• Pramod Patil• Bhavna Shinde

Sakichi Toyoda

• Founder of Toyota Group.

• Toyoda Automatic Loom Works.

• Japans “King Of Inventors”

Kiichiro Toyoda

• Founder of Toyota Motor Corporation, 1938.

• How..?????

• Toyoda to Toyota

Toyota first Power Loom

Toyota’s 1st Car -Model AA

World War II

• During World War..

• Hard-time

• How the Company overtook this problem.??

Just -In-Time

•Take Time Planning.

•Continuous Flow

•Quick Changeover

Jidoka

•Highlighting

•Visualization of problems.

•Solve Root cause of Problems.

Toyota Production System

Toyota

•Lean Production

•One – piece – Flow

Toyota Production System

Lean Production

One Piece Flow

• Build In Quality• Creates Real Flexibility• Creates Higher Productivity• Frees Up Floor• Improves Safety• Improves Morale• Reduce Cost Of Inventory

Toyota Process

Philosophy

• Honor• Respect• Dedicate• Create• Foster• Pursue• Work

Base Management Decision on Long term PhilosophyEven at the expense of short term financial goals….

• Over Production

• Unnecessary Transport & Conveyance

• Over Processing

• Excess Inventory

• Defects

• Unused Employee Creativity

Create Continuous Process Flow to bring problems to surface..

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• Grow leaders who thoroughly understand the work, live the philosophy, & teach it to others.

• Developing Excellent Individual

work while promoting effective

team work.

• Developing team in Toyota: Not a one minute Proposition

People & Partners

Add value To The Organization By

Developing People & Partners.

At Toyota, everything we learned about motivation theory is right.

Motivation Theory

Concept Toyota Approach

Maslow Need Hierarchy Theory.

Satisfy Lower level needs & Move employees up the hierarchy towards self actualization.

Job security, good pay, safe working condition, satisfy lower level needs. Culture of continuous improvement supports growth towards self actualization.

Herzberg’s Job Enrichment Theory.

Eliminate “Dissatisfies” (hygiene factors) & design work to create positive “Satisfiers“ (motivators).

Ergonomics programs, Visual Management, Human Resource policies, Address hygiene factors, Continuous Improvement, Job rotation & Built in feedback support motivators.

• Genchi Genbutsu.

• Thorough Consideration In decision making.

• Identify the root cause & Develop Counter Measure.

Problem Solving

Continuously Solving Root

Problems Drives Organizational

learning.

Toyota Market

Global Market Share

Pioneering Technology

• In 1960-70, Toyota was the pioneer to produce Light weight vehicles.

• Also, a Pioneer to invent “HYBRID SYNERGY DRIVE”.

How hybrid Synergy Drive Works..??

Prius

• Largest Selling Hybrid car all over World.

What can a Million Prius add up to..??

Toyota Hybrid Cars

Toyota Camry

Toyota HighlanderToyota Prius

Lexus GS

Year Awards

2003 Toyota success in German J.D. Power and Associates Customer Satisfaction Index Study

2004 Toyota Prius wins 2005 European Car of the Year

2005 Hybrid Synergy Drive rewarded for its excellent fuel economy

2006 Third year of International Engine of Year awards for Prius

2007 Euro NCAP awards all-new Corolla 5 star safety rating

2008 Honors for Toyota in the 2008 International Engine of the Year Awards

Achievements

Financials

Year Net Revenues (Yen in millions)

% increase

2005 18551526 -

2006 21036909 13.40 %

2007 23948091 13.84 %

2008 26289240 9.77 %

Net Revenues

year Net Income (Yen in Millions) % increase

2005 1171260 -

2006 1372180 17.15%

2007 1644032 19.81%

2008 1717879 4.5%

Profit

Dividends

Operating Income by Business Segment

(100 millions of yen)

Operating income by region

(100 millions of yen)(100 millions of yen)

Brand Percentage Ownership

Market

Daihatsu Subsidiary (51.36%)

Global, Except North America

Hino Subsidiary (50.21)

AsiaPacific, South America, Canada

Lexus Division (100%)

Global Apart From South America

Scion Division (100%)

United States

Subsidiary & Division

Joint venture With Place

Toyota Peugeot Citroen Automobile.

PSA Peugeot Citroen. Kolin,Czech Republic

Indus Motors Company House of Habib Karachi,Pakistan

NUMMI GM Fremont,California

Toyota Kirloskar Motor Pvt. Ltd.

Kirloskar Group Bangalore,India

Joint Venture

Toyota Social Contribution

• Forest of Toyota (Coexistence with people & nature)

• Beating the desert.

• Toyota Eco Youth.

Environment

Traffic Safety

• Safety For Generations

Arts culture And

Community Care

•Toyota Automobile Museum

•Toyota Upgrading Talents.

•Toyota Commemorative Museum of Industry & Technology.

• Toyota Technology Challenge.

• Toyota Family & School Programs.

Education

Worldwide Social Activities

Toyota-India

Mr. H Nakagawa

, MD

Mr. M Kawabata, DMD

Vikram S Kirloskar

Vice-Chairman

Toyota Kirloskar Motor Pvt. Ltd

Date Of Establishment October 6, 1997

Chairman Mr. Ryoichi Sasaki

Vice Chairman Mr. Vikram S Kirloskar

Managing Director Mr. H. Nakagawa

Deputy MD's Mr. M. KawabataMr. S. Tomonaga

Paid-In Capital Rs. 7 billion

Shareholders Toyota Motor Corporation (89% equity) Kirloskar Group (11% equity)

Fuji Cho, Chairman of the

board.Toyota Motor Corporation.

Katsuaki Watanabe, President of Toyota Motor Corporation

Toyota Headquarters - Japan

Toyota Pavilion - Japan

Current Corporate Profile

Company name Toyota Motor Corporation

Established November 18, 1926

Head office 2-1, Toyoda-cho, Kariya-shi, Aichi Prefecture 448-8671 JAPAN

President Katsuaki Watanabe

Chairman Fuji Cho

Business activities Manufacture and sales of textile machinery, automobiles, materials handling equipment, etc. as well as logistics business, etc.

Net sales 12,079,264 Yen In Millions

Operating income 2,270,375 Yen In Millions

Net Income 1717879 Yen In Millions

Employees 316,121

Thank You.