Triumph and Waterloo
The rank of Toyota in Global 500
• 2007 – 2013, Toyota was the biggest motor ve hicle manufacturer in the world.
• Followed by General Motors Corporation and
Ford Motor Company (Fortune, 2014).
The other automobile manufacturers
• In 1890’s, Sakichi Toyo da invented the wood en hand loom and rec eived a patent for it.
• He kept improving the loom in his whole life and invented power l oom. (Toyota-global, 2
A wooden Toyoda hand loom
Toyoda power loom
(Japan’s first self-powered loom)
The founder of Toyota
– Kiichiro Toyoda
• The eldest son of Sakichi Toyo da • Spent his childhood in his fath er’s textile factory
• Studied in engineering, law an d social system in the universi ty • Took over the company when he was 27 years old (in 1921)
The found of Toyota
• Establishment: 1926
• Capital: 80,462 billion yen
• Main business: Manufact ure and sale of textile ma chinery, automobiles, ind ustrial vehicles and other products. (Toyota-global,
The development of Toyota
The expansion of Toyota
As of 2012
Toyota’s Production System (TPS)
• TPS is a unique system of producing vehicles d eveloped by Toyota
• The goal is to make and deliver vehicles in the quickest and most efficient way.
• Also known as “The Toyota Way” or “Lean Pro duction” Source: www.ehuub.com
Toyota's Japan and Overseas Production and Sales Volumes
A massive car recall
• In August, 2009, a fatal car accident happened in C alifornia, the US
• The floormats affected the car braking systems
• Toyota recalled 8 million cars in total, including mo re than 5 million cars in the North America market.
• Toyota was fined $16 million by the US governmen t for “did not alert the US government to its safety problems quickly enough” (Andrews, Simon, Tian,
• Halted sales and suspended production of its e ight models for a short period
• Akio Toyoda, the CEO of Toyota, officially apol ogized to customers 10 days after recall decisi on. • Repaired affected vehicles for free and made c ompensations. • Spent $2 billion (Sanchanta, 2010)
“We are not proud of recalls, but there is nothing wrong with recalls. Hiding anything would be the problem. We are dealing with problems more expediently.” – a senior executive of Toyota (Kageyama, 2012)
“They expanded too fast and lost control of their quality control, Toyota‘s great reputation was quality control This will have a bigger effect inside Toyota, More than a U.S. auto company, the Japanese style of selfmortification and shame will ensure this never happens again.“ - Consumer advocate Ralph
Nader (Stein, 2010)
• Quality control should not only be executed inside th e company, but also to the suppliers and even distrib utions. • Sometimes rapid expansion would lead to the decrea se of the employee’s quality. So human resource man agement should be considered as important as quali ty control.
• Although Lean Production is a successful method em ployed by many companies around the world, it is stil l need to be improved dynamically.
It is undeniable that the Toyota Production Sys tem is a great success, since it helped Toyota b ecome the NO.1 in automobile industry. But th e rapid expansion and the sense of achieveme nt would make Toyota lose its quality control, t he most crucial part in automobile manufactur