Brief Company Overview
Toyota Motor Corporation is a Japanese multinational corporation, and is considered the world’s largest automaker of automobiles, trucks, buses, robots, and providing financial services. The company adopts a philosophy in terms of its production system, which is named The Toyota Way. Its philosophy in production involves a list of fourteen principles that are implemented in the company, and serve as guides to the operation of the company
Toyota is the largest and the most profitable automobile manufacturer in the world. The company reported annual sales of $202 billion and net profit of $ 2.4 billion in 2010. The company has cash equivalents of $43.3 …show more content…
Toyota name is synonymous with quality. The company has been able to do that by consistently delivering quality products to the customers at low cost and very rare problems.
Toyota’s manufacturing capability – its system of “lean production” –integrates capabilities relating to the manufacture of components and subassemblies, supply-chain management, production scheduling, assembly, quality control procedures, systems for managing innovation and continuous improvement, and inventory control.
The Just in Time (JIT) system implemented by the organization helps it to match raw material requirements to the production schedule. This helps the organization to keep the costs low and increase the profit margin. The excellent inventory management system helps the organization to maintain a competitive advantage over the vendors.
Flexibility of their manufacturing processes could be used, not only to respond to environmental uncertainties, but also to change their competitive positions and, in some instances, even transform the nature of their industries (Hayes, 1996)
Research & Development
Toyota has mastered the application of lean principles not only in manufacturing but R&D as well. Further, the application of lean principles during the product development process is a critical, early enabler