Running head: TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 1
Toyota Motor Company Operations/Quality Research Report
TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 3
Table of Contents
Introduction-Company History 4
Company’s Orientation 5-6
Operations Management 7-9
Lean Systems 9-12
Managing Quality 12-14
Improvements in Quality 14-15
TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 2
Toyota Motor Company is the number one car ...view middle of the document...
These initiatives and training will evolve Toyota Motor Company back on top as the leading quality car manufacturer.
TOYOTA MOTOR COMPANY OPERATIONS/QUALITY RESEARCH REPORT 4
Introduction- Company History
Sakichi Toyoda, a prolific inventor, created the Toyoda Automatic Loom Company based on his groundbreaking designs, one of which was licensed to a British concern for 1 million yen; this money was used to help found Toyota Motor Company, which was supported by the Japanese government partly because of the military applications. By 1936, just after the first successful Toyoda vehicles were produced, Japan demanded that any automakers selling in the country needed to have a majority of stockholders from Japan, along with all officers, and stopped nearly all imports. In 1937, Toyota Motor Company was born and Sakichi Toyoda’s son of Kiichiro Toyoda took over the operations of the spinoff company of Toyoda Automatic Loom Company (Toyoland.com, 2011, p. 1-2, par. 1 & 3).
In 2011, this once small Japanese company developed some three quarters of a century ago is the number one car company in the world. In 2010, Toyota sold 7.308 million vehicles. Today Toyota’s mission and vision statements include, “To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America,” and “To be the most successful and respected car company in America” (Toyota.com, 2011). Toyota’s net income was ($3.5 billion) in the 12 months ending March 31, 2011, 7.7% decrease from the prior year (Toyota.com, 2011). This isn’t really that bad considering a world recession and the earthquake that hit Japan a few months back. All the uncertainties around the world, Toyota Motor Company’s stock has done fairly well over the last 12 months with a 52 week range of $67.56-$93.9p. The stock price at close of June 15, 2011 was $79.48. Today’s stock price is an indication the Toyota Motor Company has investors backing their company with speculation for more future growth in the world market share.
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Toyota’s market orientation right now is driven by energy and higher gasoline prices. Their forecasts of customer demands are showing higher fuel efficient and other alternative energy based vehicles. A Toyota spokesman said, “Our renewable fuel strategy is simple; have the right vehicle at the right time in the right place to meet the needs of our customers. Tackling environmental challenges means apply what we know about renewable fuels across our vehicle lineup, and beyond” (Toyota.com, 2011).
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This diagram shows the scenarios for response to environmental and energy issues. The looks of this diagram show that in the next 20 years the market orientation is going to shift even more too renewable energy in the way of more hybrid...