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History of toyota case study
History of toyota case study
BACKGROUND about Toyota company
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Introduction
Toyota has been operating in Australia for over 50 years as a wholly-owned subsidiary of the Toyota Motor Corporation. The success of the company has been through the support of its customers, employees, suppliers, dealers, and the commitment of the government as well as other organisations in Australia. As such, Toyota has grown to be one of the leading automotive companies in Australia, with a market share of 18 percent as of the end of 2011 (Toyota Australia, 2014).
Suppliers
Toyota has over 1,400 suppliers (Appendix 1) assisting them in their production of their cars, whereby the supply chain is divided into three main categories, including indirect purchasing (IP), Spare Parts and Accessories (SP&A), and Direct Purchasing (DP) (Toyota Australia, 2013).
The major suppliers of Toyota who have been awarded for the excellence of service (Appendix 2) in various categories include:
TT Steel Centre Australia Pty Ltd/ TT Assembly Australia Pty Ltd
Toyota Tsusho (Australasia) Pty. Ltd (TTALA), a wholly owned subsidiary of Toyota Corporation, was founded as a trading and supply-chain specialist of the Toyota Group. The vehicles, parts, and machinery division is continually growing and therefore diversify their product range which include automotive parts, electronics, and accessories to address their customer’s preferences. As the electronic industry is ever growing, Toyota Tsusho’s trade in such a field includes a wide variety of products, including electronic parts, personal computers, semi-conductor manufacturing equipment, and Computer Aided Design (CAD) systems. TT Steel Centre and TT Assembly were awarded for Safety and Quality respectively (Toyota Tsusho Australasia, n.d.).
Continental Pty Ltd
Continental Pty Ltd, g...
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...re replacement or substitute goods from other sources. Furthermore, Toyota does permit failures or delay in delivery that occur that are beyond the suppliers control such as floods, fires, explosions, riots, windstorms, or terrorism acts (Marksberry, 2012). However, suppliers are not exempt from the commitments if their employees participate in slow down, lockouts, or go on strike. Ultimately, the delivery requirements set out by Toyota may seem severe, the JIT inventory system requires a clear understanding and close coordination of each other’s intertwining networks. As such, based on this report, it can be concluded that the bargaining power of suppliers in the supply chain is weak. This is because due to the large number of suppliers, materials are widely accessible and therefore suppliers do not pose any great threat of forward integration (Marksberry, 2012).
Suppliers must also have technical expertise and product innovation, be proactive in reducing costs, maintain the highest quality standards, and be willing to build long-term relationships (Volvo Group, 2014). This trust is an integral part of the supply chain since Prevost relies on consistent on-time deliveries of quality parts from its suppliers so that it is able to complete its chassis and shell builds.... ... middle of paper ... ... a.
With this differentiation, Toyota Motor is able to compete with its competitor in term of price, because Toyota’s production system leads to efficiency and low-cost production. This manufacturing system has created the differentiation of Toyota, which it produced the vehicle with high quality and low prices. Some concepts that Toyota has been adopted are Lean Manufacturing concept, Just In Time, Kaizen and Six Sigma. This competitive advantage is something that no other automaker can do it as well as Toyota
With more than 7,500 small and medium sized companies, the Chinese automotive supplier market is still very fragmented ( China Association of Automobile Manufacturers (CAAM), 2007). About 70% of the world’s top 100 automotive suppliers have subsidiaries in China, with dispersed activities in this huge country, as most of the OEMs (Original Equipment Manufacturers) have developed their own supplier network around them (Kasperk, 2010, p. 7). Initially, as per governmental regulations market entrance for the foreign OEMs was only possible in joint venture agreements with Chinese partners, this helped the suppliers to considerably improve the quality of their products. Some of these suppliers have managed to attain a quality standard at par to German suppliers in product segments with low and medium technological sophistication. However, a majority of Chinese automobile suppliers still suffer from low R&D activities and low production volume due to small scale production (Kasperk, 2010, p. 7). Only a very few are able to offer complete modules or systems, most of them offer simple spare parts like tyres, fuel tanks and bearings (Kasperk, 2010, p. 7). Chinese automotive suppliers represent a market share of less than 10% when it comes to sophisticated product segmentation.
His main aim was achieved through emphasizing National Steel Car’s strong engineering capabilities, team-building, and a through considerable human and capital investment. The company enlarged its manufacturing capability from a low initial produce to a high outcome and an employment increase in the company. Today, thanks to its relentless pursuit of engineering and manufacturing excellence, National Steel Car leads the industry in new car innovation, while building thousands of new railroad freight cars each year. National Steel Car is North America’s only railroad freight car, engineering and manufacturing company certified ISO 9001:2008, having now held this honor for the last 18 years through numerous rounds of recertification.
There are around 1600 suppliers that have contributed to Toyota supply chain. The suppliers consist of local company and overseas based manufacturers. Those suppliers play a pivotal role in Toyota Australia’s production as they are part of Just in Time supply chain strategy. The Toyota purchasing was worth $2.4 billion in 2013/2014 (Toyota Australia 2014). Figure 2 clearly shows that vehicles manufactured in Australia contributed to nearly half of vehicle sold in this country and 60% of those cars manufactured were
At the end it will also provide some recommendations for the government to salvage this business. One of the principal reasons for which Australian car manufacturing industries are struggling to compete globally is the high labour costs in Australia compare to other car manufacturing country. The most promising countries in the car manufacturing sector are China, India and Korea have a very low labour cost (one fourth of the labour cost in Australia), which is reflected on the car price. Since people are getting same model of the car with comparatively cheap price,
Its objective is to integrate people, process, and technology. Toytoa’s product development procedure is essentially different from a manufacturing process. Its backbone is not visible, but knowledge and information which are untouchable. The product development’s cycle time is much longer than hours. It usually takes weeks or even months. The production chains are non-linear and multi-directional. Workers are no longer manufacturing workers but specialists with high diverse technology. This product development strategy is viable for Toyota. This is because this strategy does help Toyota to prolong the life cycle of current product. For instance, Toyota Camry is a very successful current product which is prolonged its life. Camry has been made since 1980s. Camry is set at an middle-high level of family veichle. After 30 years development, Camry is still very famous all over the world. This cannot be separeted by Toyota’s successful product development strategy. One of the key features of the Toyota product development system is functional engineering managers. They are primarily teachers in the Toyota system, who are the most technically competent engineers, with the highest levels of experience. Toyota’s management group is consist of high educated experts. They were all engineers and their technical excellence is very famous. But recently, Toyota’s product development system does not work very well. In
All employees of Toyota are satisfied with lower level needs, they make great wages, they have job stability, and the job sites are full of safety initiatives and well planned (Liker, 2004, p.210). Toyota also provides family benefits to help with raising children and the wellbeing and health while at work, with all these benefits employees are content and can focus on big picture ideas. Toyota promotes a strong team mood and a sense
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota
The car manufacturing industry is an important pillar of the world economy affecting daily lives of people globally in many ways i.e. by creating job opportunity, introducing advanced technology and improving country’s economy. Likewise the car manufacturing industry in Australia plays very important role in Australia’s economy as well as is an important source of employment, employing thousands of employees. Automotive company like General motors Holden has helped Australia globally recognized as a major car manufacturer and created huge employment opportunity. But in the last few years, Holden suffered losses due to strong Australian dollar which directed declining sales of large cars in Australia. Also government fund being reduced this has led the company to look to international markets to increase profitability. Holden announced on 11 December 2013 that production in Australia would cease by the end of 2017 (Put Reference).
Toyota Motor Corporation (TMC), one of the world largest automobile manufacturers, had entered into the Indian market in 1997 through a joint venture with Kirloskar Group; in 2006 employees had been dismissed and suspended by the company, on disciplinary rounds. In response to the company's decision, the employees decided to go on strike which lead to the lockout of its vehicle manufacturing plant at Bidadi located near Bangalore, Karnataka
Different nations within which Toyota operates have different political, technological, social, and cultural environments. To safeguard the company’s overall image, there must be effective communication between the head office and regional quarters. This is especially important in the area of quality control, as Toyota currently grapples with safety issues facing several of its car models.
The nonmanufacturing companies can learn and apply from Toyota’s philosophy and practices as listed below: