OPERATIONS

MANAGEMENT

TOPIC :
TOYOTA – Operations strategy
Products and services offered
Product life cycle
Plant location and layout Submitted by:
Inderpal singh
Aqdas raza
Robertson tongbram
Muneeb
 TOYOTA
• Toyota Motor Corporation is a Japanese multinational
automotive manufacturer headquartered in Toyota, Aichi, Japan
• It was founded by Kiichiro Toyoda and incorporated on August
28, 1937.
• In 2017, Toyota's corporate structure consisted of 364,445
employees worldwide[4] and, as of December 2019, was the
tenth-largest company in the world by revenue.
• Toyota is one of the largest automobile manufacturers in the
world, based on sales which include its subsidiaries.
• Toyota was the world's first automobile manufacturer to produce
more than 10 million vehicles per year, which it has done since
2012, when it also reported the production of its 200 millionth
vehicle.
• Toyota Motor Corporation produces vehicles under five
brands, including the Toyota brand, Hino, Lexus, Ranz ,
and Daihatsu.
• Toyota also holds a 20.02% stake in Subaru Corporation,
a 5.1% stake in Mazda , a 4.9% stake in Suzuki, a 4.6%
stake in Isuzu, a 3.8% stake in Yamaha Motor
Corporation, and a 2.8% stake in Panasonic, as well as
joint-ventures with two in China (GAC Toyota and Sichuan
FAW Toyota Motor), one in India (Toyota Kirloskar), one in
the Czech Republic (TPCA), one in the United States
(MTMUS), along with several "nonautomotive" companies
. TMC is part of the Toyota Group, one of the largest
conglomerates in the world.
 OPERATIONS STRATEGY
• Toyota’s operations strategy is based on The Toyota
Production system . The Toyota Production System has
long been hailed as the source of Toyota’s outstanding
performance as a manufacturer. The system’s distinctive
practices—its kanban cards and quality circles, for
instance—have been widely introduced elsewhere.
Indeed, following their own internal efforts to benchmark
the world’s best manufacturing companies, GM, Ford, and
Chrysler have independently created major initiatives to
develop Toyota-like production systems. Companies that
have tried to adopt the system can be found in fields as
diverse as aerospace, consumer products, metals
processing, and industrial products.
The Roots of the Toyota Production System (TPS)
• Taiichi Ohno, VP of Manufacturing, and Shigeo Shingo,
head of industrial engineering and factory improvement
training, developed the Toyota Production System. –They
emphasized:
• The minimization of all waste.
• “Doing it right the first time.”
• Continuous Improvement (KAIZEN)
• Leveraging the front line workers
The Seven Wastes in TPS
• Overproduction – Producing more than, faster than or
sooner than is required
• Waiting – Idle time that could be used productively
• Transporting – Unnecessary transport of parts or
materials
• Inappropriate processing – Operations that add no
value from the customer’s perspective
• Unnecessary inventory – Exceeding one-piece flow
• Unnecessary/excess motion – Any movement by people
or equipment that does not add value
• Defects – Rework, repair or waste in its simplest form
TPS HOUSE
The Two Pillars of TPS: Just in Time and Jidoka
• The Toyota Production System is grounded on two main conceptual pillars:

•Just-in-time – or, "Making only what is needed, only when it is needed,

and only in the amount that is needed"
• With 'Just in Time', a product is efficiently built within the shortest possible period of
time by adhering to the following:

• When an order is received, a message to start the process must be sent to the
beginning of the production line as soon as possible.
• The assembly line must be stocked with no more or less than the required number of
all needed parts so that any type of product available can be assembled quickly.
• The assembly line must replace the parts used by retrieving the same number of parts
from the parts-producing process - this way, only what is needed is replaced, and over-
stocking is reduced.
• The preceding process must be consist of small numbers of all types of parts,
producing only the numbers of parts that were retrieved by an operator from the next
process.
• Jidoka – (Autonomation) or, "Automation with a human
touch“
For the Just-in-Time system to function, all parts that made and supplied
must be meeting predetermined quality standards. This is achieved through
Jidoka.

• Jidoka means that a machine stops safely, as soon as the normal

processing is completed. It also means that if a quality / equipment
problem arises, the machine will be able to detect the defect on its own
and stop, preventing more defective products from being produced, thus
reducing Muda . As a result, only products satisfying quality standards will
be passed on to the following processes on the production line,
preventing a pile up of malfunctioning products.
• As the machine automatically stops when processing is completed or
when a problem arises and is communicated quickly, operators can
confidently continue working away at another machine, as well as easily
identifying the cause of the problem. This means that each operator can
be in charge of many machines, resulting in higher productivity, while
continuous improvements lead to greater processing capacity.
PRODUCTS AND SERVICES
OFFERED
• Toyota Motor Corporation produces vehicles under five
brands, including the Toyota brand, Hino, Lexus, Ranz ,
and Daihatsu.

• Products and services offered under diffrent brands are as

follows:
 TOYOTA
Station Pickup Sports Kei car Kei Car
Sedan Hatchback
Wagon SUV MPV/mini Van Truck car (p) (C) HCV Taxi
van
Corolla Pixis JPN
Avalon Agya Touring
4Runner Alphard HiAce Hilux 86 C+pod
Truck
Coaster
Taxi
Land
Pixis
Camry Aygo C-HR Vellfire ProAce Cruizer Supra Coms Dyna
(J70) Van

Century
Coroll Corolla
Avanza
ProAce
Tacoma
Copen
a Cross city GR

FJ Probo Pixis
Corolla Etios cruizer Calya
x
Tundra
Epoch

Crown Glanza Fortuner Innova

Town Town Pixis
ace Ace Joy
Pixix
Etios Passo Harrier Noah
Mega
Prius
Mirai Venza Voxy
C
Yaris Highla
Prius (xp150)
Esquire
nder
Yaris Land
Yaris (xp210) Cruizer Sienna

Land
Cruizer Sienta
Prado

Urban
Cruizer Roomy
 LEXUS

Hatchbacks Sedans Coupes Crossovers SUVs Minivans

CT ES LC NX GX LM
LS RC RX LX
IS UX
 DAIHATSU
Pickup Kei
Hatchbacks Sedans
Truck SUV MPV/Vans
Trucks
Kei Cars

Gran Gran Hijet Atrai

Ayla Altis Rocky
Max Max Cargo Wagon
Hijet
Boon Terios Luxio Cast
Truck

Sirion Sigra Copen

Mira
Thor
e:s
Mira
Xenia
Tocot

Move

Taft

Tanto

Wake
 SCION

Hatchback Sedan Coupe

FR-
iQ iA
S
xA tC

xB

xD

iB
OTHER TOYOTA
BUSINESSES
Toyota has grown from its venture business roots
into a variety of other fields beyond automobile
manufacturing, including housing, financial
services, communications, marine and
biotechnology, and afforestation.
Financial Services
Toyota Financial Services Corporation (TFS)
provides financial services, mainly auto loans
and leasing, across over 35 countries and
regions

Housing Services
(Japanese only)
Toyota Housing Corporation operates a
wide range of housing-related businesses,
including detached house construction as
well as condominium development and
housing renovations.
Research for the Future - Robots &
Frontier Research
Toyota Motor Corporation Site introduces
the activities of Toyota Frontier Research
Center. Toyota Frontier Research Center
aims to create new values, such as partner
robots.
Marine Services
(Japanese only)
Another fun of driving that Toyota delivers.
Introducing a high-quality private cruiser of
Toyota Marine.

Agribio Services
(Japanese only)
Introducing agricultural support initiatives
that utilize the experience and know-how
cultivated in automobile production and
biotechnology development.
 PRODUCT LIFE CYCLE
A product's life cycle (PLC) can be divided into several stages
characterized by the revenue generated by the product. The life cycle
concept may apply to a brand or to a category of product. Its duration
may be as short as a few months for a fad item or a century or more for
product categories such as the gasoline-powered automobile. Product
development is the incubation stage of the product life cycle. There are
no sales and the firm prepares to introduce the product. As the product
progresses through its life cycle, changes in the marketing mix usually
are required in order to adjust to the evolving challenges and
opportunities. The four stages of product life cycle are:

• Introduction stage
• Growth stage
• Maturity stage
• Decline stage
• Introduction Stage – This stage of the cycle
could be the most expensive for a company launching a
new product. The size of the market for the product is
small, which means sales are low, although they will be
increasing. On the other hand, the cost of things like
research and development, consumer testing, and the
marketing needed to launch the product can be very high,
especially if it’s a competitive sector.
• Growth Stage – The growth stage is typically
characterized by a strong growth in sales and profits, and
because the company can start to benefit from economies
of scale in production, the profit margins, as well as the
overall amount of profit, will increase. This makes it
possible for businesses to invest more money in the
promotional activity to maximize the potential of this
growth stage.
• Maturity Stage – During the maturity stage, the
product is established and the aim for the manufacturer is
now to maintain the market share they have built up. This
is probably the most competitive time for most products
and businesses need to invest wisely in any marketing
they undertake. They also need to consider any product
modifications or improvements to the production process
which might give them a competitive advantage.
• Decline Stage – Eventually, the market for a product
will start to shrink, and this is what’s known as the decline
stage. This shrinkage could be due to the market
becoming saturated (i.e. all the customers who will buy
the product have already purchased it), or because the
consumers are switching to a different type of product.
While this decline may be inevitable, it may still be
possible for companies to make some profit by switching
to less-expensive production methods and cheaper
markets.
 PLANT LOCATION AND LAYOUT
• Toyota Motor Corporation is a Japanese multinational
automotive manufacturer headquartered in Toyota, Aichi,
Japan.
• Toyota has factories in most parts of the world,
manufacturing or assembling vehicles for local markets in
Japan, Australia (until 2017), Bangladesh, 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 (Tijuana), Malaysia, Thailand, Pakistan,
Egypt, China, Vietnam, Venezuela, the Philippines, and
Russia.
 Number of Japanese and Overseas Production Plants and Production Volumes
Year of
20th 30th 40th 50th 75th
establishment
No. of anniversary anniversary anniversary anniversary anniversary
Japan or Company
companies/ No.
overseas category
of plants

1937 1957 1967 1977 1987 2012

Japan Toyota No. of plants 1 1 4 8 11 12

Affiliates (Toyota No. of companies - - - - - 4

wholly
-owned
subsidiaries)
No. of plants & - - - - - 13
sites

Affiliates (other No. of companies - 5 6 6 7 3

vehicle assembly
cos.)

No. of plants & - 5 6 10 9 6

sites

Overseas No. of companies - - 10 18 18 50

No. of plants & - - 10 18 18 60

sites

Worldwide production (vehicles) 4,013 79,527 832,130 2,720,758 3,830,539 6,928,813