ASSIGNMENT

ENTREPRENEURSHIP

SUBMITTED TO

DR. ZEESHAN AHMAD

SUBMITTED BY

KIRAN TARIQ

ROLL NO

BSE-18-16

ASSIGNMENT PRODUCT

TOYOTA

DATE

09-12-2021 THURSDAY

CENTRE FOR ADVANCED STUDIES IN PURE AND APPLIED MATHEMATICS

BAHAUDDIN ZAKARIYA UNIVERSITY, MULTAN

 INTRODUCTION

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered

in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August

28, 1937. Toyota is one of the largest automobile manufacturers in the world, producing about

10 million vehicles per year.

 DESCRIPTION

Toyota Motor Corporation commonly known as simply Toyota is a

Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan.

It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is one of the

largest automobile manufacturers in the world, producing about 10 million vehicles per year.

The company was as a spinoff of Toyota Industries, a machine maker started by Sakichi

Toyoda, Kiichiro's father. Both companies are now part of the Toyota Group, one of the largest
conglomerates in the world. While still a department of Toyota Industries, the company

developed its first product, the Type A engine in 1934 and its first passenger car in 1936,

the Toyota AA.

After World War II, Toyota benefited from Japan's alliance with the United States to learn from

American automakers and other companies, which would give rise to The Toyota Way (a

management philosophy) and the Toyota Production System (a lean manufacturing practice)

that would transform the small company into a leader in the industry and would be the subject

of many academic studies.

In the 1960s, Toyota took advantage of a rapidly growing Japanese economy to sell cars to a

growing middle-class, leading to the development of the Toyota Corolla, which would go on

to become the world’s all-time best-selling automobile. The booming economy also funded an

international expansion that would allow Toyota to grow into one of the largest automakers in

the world, the largest company in Japan and the ninth-largest company in the world by revenue,

as of December 2020. Toyota was the world's first automobile manufacturer to produce more

than 10 million vehicles per year, a record set in 2012, when it also reported the production of

its 200 millionth vehicle.

Toyota was praised for being a leader in the development and sales of more fuel efficient hybrid

electric vehicles, starting with the introduction of the Toyota Prius in 1997. The company now

sells more than 40 hybrid vehicle models around the world. However, more recently, the

company has also been accused of greenwashing for its skepticism of all-electric vehicles and

its focus on the development of hydrogen fuel cell vehicles, like the Toyota Mirai, a technology

that is costlier and has fallen far behind electric batteries.

Toyota Motor Corporation produces vehicles under five

brands: Daihatsu, Hino, Lexus, Ranz and the namesake Toyota. The company also holds a
20% 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 stakes in vehicle manufacturing joint-ventures in China (GAC Toyota and FAW Toyota),

the Czech Republic (TPCA), India (Toyota Kirloskar) and the United States (MTMUS).

Toyota is listed on the London Stock Exchange, Nagoya Stock Exchange, New York Stock

Exchange and on the Tokyo Stock Exchange, where its stock is a component of the Nikkei

225 and TOPIX Core30 indices.

 HISTORY

The history of Toyota started in 1933 with the company being a division of Toyoda Automatic

Loom Works devoted to the production of cars under the direction of the founder's

son, Kiichiro Toyoda. Kiichiro Toyoda had travelled to Europe and the United States in 1929

to investigate automobile production and had begun researching gasoline-powered engines in

1930. Toyoda Automatic Loom Works was encouraged to develop automobile production by

the Japanese government, which needed domestic vehicle production, due to the war with

China. Kiichiro Toyoda seized this opportunity to establish the Automotive Production

Division on September 1, 1933, and began preparing to build prototype vehicles. In 1934, the

division produced its first Type A Engine, which was used in the first Model A1 passenger car

in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car

started in 1936. Early vehicles bear a striking resemblance to the Dodge Power Wagon and

1930's Chevrolet, with some parts actually interchanging with their American originals.

Although the Toyota Group is best known today for its cars, it is still in the textile business and

still makes automatic looms, which are now computerized, and electric sewing

machines which are available, worldwide.

Kiichiro Toyoda

Founded:

August 28, 1937, Japan

Headquarters:

Toyota, Aichi, Japan

Stock price:

7203 (TYO) JP¥2,057 -11.50 (-0.56%)

Subsidiaries:

Lexus, Toyota Financial Services, Daihatsu, MORE

Parent organizations:

Subaru Corporation, Denso, Toyota Group, Toyota Industries

Record label founded:

Scion Audio/Visual

Executives:

Shigeru Hayakawa, Koji Kobayashi, Taro Kubo, Yoji Matsuyama

about $202 billion

Shares of Tesla gained 5% to hit a new all-time high of $1,135, giving the company a valuation

of roughly $206.5 billion, compared with Toyota's valuation of about $202 billion. The

milestone underscores the vast investor enthusiasm for Elon Musk's automaker, which has yet

to turn a profit on an annual basis.

 Competitors

Toyota competitors include

 Ford Motor Company

 Chrysler

 Honda

 Chevrolet

 Volkswagen.
  WORLD WIDE PRESENCE

Outside of Japan, as one of the world's largest automotive manufacturer by production

volume, Toyota has factories in most parts of the world. The company assembles vehicles in

Argentina, Belgium, Brazil, Canada, Colombia, the Czech Republic, France, Indonesia,

Mexico, the Philippines, Poland, Russia, South Africa, Thailand, Turkey, the United

Kingdom, the United States, and Venezuela.

Additionally, the company also has joint venture, licensed, or contract factories in China,

France, India, Malaysia, Pakistan, Taiwan, the United States, and Vietnam

Top 10 Toyota vehicle production

by country, 2019[206]

Rank Vehicle
Location
in Toyota production

1 Japan 3,415,864

2 China 1,404,305
3 United States 1,194,824

4 Thailand 570,852

5 Canada 467,998

6 Turkey 251,949

7 France 224,073

8 Mexico 192,983

9 Brazil 187,866

10 Indonesia 172,314
 Top 10 Toyota vehicle sales

by country, 2019

Rank Vehicle
Location
in Toyota sales

1 United States 2,383,348

2 China 1,620,698

3 Japan 1,610,169

4 GCC 368,433

5 Thailand 332,380

6 Indonesia 332,354

7 Canada 237,091

8 Brazil 217,430

9 Australia 215,378
 10 Philippines 162,011

 COMPANY STRATEGY

The Toyota Way is a set of principles and behaviors that underlie the company's approach to

management and production (which is further defined as the Toyota Production System).

The company has been developing its corporate philosophy since 1948 and passing it on

as implicit knowledge to new employees, but as the company expanded globally, leaders

officially identified and defined the Toyota Way in 2001. Toyota summarized it under two

main pillars: continuous improvement and respect for people. Under the continuous

improvement pillar are three principals: challenge (form a long-term

vision), kaizen (a continual improvement process), and genchi genbutsu ("go and see" the

process to make correct decisions). Under the respect for people pillar are two

principals: respect and teamwork.

In 2004, Dr. Jeffrey Liker, a University of Michigan professor of industrial engineering,

published The Toyota Way. In his book, Liker calls the Toyota Way "a system designed to

provide the tools for people to continually improve their work. According to Liker, there are

14 principles of The Toyota Way that can be organized into four themes:

(1) long-term philosophy,

(2) the right process will produce the right results,

(3) value to the organization by developing your people,

(4) continuously solving root problems drives organizational learning.

The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor

Corporation's managerial approach and production system. Toyota first summed up its

philosophy, values, and manufacturing ideals in 2001, calling it "The Toyota Way 2001". It

consists of principles in two key areas: continuous improvement and respect for people.[1][2][3]

The Toyota Way has been designated "a framework intended to give the instruments to

individuals to constantly improve their work".[4]

The 14 standards of The Toyota Way are coordinated in four segments:

• Long haul reasoning

• The correct cycle will deliver the correct outcomes

• Enhance the association by building up your kin

• Persistently tackling root issues drives authoritative learning

The two central marks of the standards are consistent improvement and regard for

individuals. The standards for constant improvement incorporate setting up a drawn out

vision, chipping away at challenges, ceaseless innovation, and going to the wellspring of the

issue or issue. The standards identifying with deference for individuals incorporate ways of

building appreciation and cooperation.

The 14 principles

The system can be summarized in 14 principles The principles are set out and briefly

described below:

Section I — Long-term philosophy

• Base your management decisions on a long-term philosophy, even at the expense of

short-term financial goals.

People need a purpose to find motivation and establish goals.

Section II — The right process will produce the right results

Principle 2

• Create a continuous process flow to bring problems to the surface.

Work processes are redesigned to eliminate waste (muda) through the process of continuous

improvement — kaizen. The seven types of muda are:

1. Overproduction

2. Waiting (time on hand)

3. Unnecessary transport or conveyance

4. Overprocessing or incorrect processing

5. Excess inventory

6. Motion

7. Defects

Principle 3

• Use "pull" systems to avoid overproduction.

A method where a process signals its predecessor that more material is needed. The pull

system produces only the required material after the subsequent operation signals a need for

it. This process is necessary to reduce overproduction.

• Level out the workload (heijunka). (Work like the tortoise, not the hare).

This helps achieve the goal of minimizing waste (muda), not overburdening people or the

equipment (muri), and not creating uneven production levels (mura).

Principle 5

• Build a culture of stopping to fix problems, to get quality right the first time.

Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the

authority to stop the process to signal a quality issue.

Principle 6

• Standardized tasks and processes are the foundation for continuous improvement and

employee empowerment.

Although Toyota has a bureaucratic system, the way that it is implemented allows for

continuous improvement (kaizen) from the people affected by that system. It empowers the

employee to aid in the growth and improvement of the company.

Principle 7

• Use visual control so no problems are hidden.

Included in this principle is the 5S Program - steps that are used to make all workspaces

efficient and productive, help people share workstations, reduce time looking for needed tools

and improve the work environment.

• Sort: Sort out unneeded items

• Straighten: Have a place for everything

• Standardize: Create rules and standard operating procedures

• Sustain: Maintain the system and continue to improve it

Principle 8

• Use only reliable, thoroughly tested technology that serves your people and processes.

Technology is pulled by manufacturing, not pushed to manufacturing.

Section III — Add value to the organization by developing your people

Principle 9

• Grow leaders who thoroughly understand the work, live the philosophy, and teach it to

others.

Without constant attention, the principles will fade. The principles have to be ingrained, it

must be the way one thinks. Employees must be educated and trained: they have to maintain

a learning organization.

Principle 10

• Develop exceptional people and teams who follow your company's philosophy.

Teams should consist of 4-5 people and numerous management tiers. Success is based on the

team, not the individual.

Principle 11

• Respect your extended network of partners and suppliers by challenging them and

helping them improve.

and helping them to achieve it. Toyota provides cross-functional teams to help suppliers

discover and fix problems so that they can become a stronger and better supplier.

Section IV — Continuously solving root problems drives organizational learning[edit]

Principle 12

• Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).

Toyota managers are expected to "go-and-see" operations. Without experiencing the situation

firsthand, managers will not have an understanding of how it can be improved. Furthermore,

managers use Tadashi Yamashima's (President, Toyota Technical Center (TTC)) ten

management principles as a guideline:

1. Always keep the final target in mind.

2. Clearly assign tasks to yourself and others.

3. Think and speak on verified, proven information and data.

4. Take full advantage of the wisdom and experiences of others to send, gather, or

discuss information.

5. Share information with others in a timely fashion.

6. Always report, inform, and consult in a timely manner.

7. Analyze and understand shortcomings in your capabilities in a measurable way.

8. Relentlessly strive to conduct kaizen activities.

9. Think "outside the box," or beyond common sense and standard rules.

10. Always be mindful of protecting your safety and health.

Principle 13
• Make decisions slowly by consensus, thoroughly considering all options; implement

decisions rapidly (nemawashi).

The following are decision parameters:

1. Find what is really going on (go-and-see) to test

2. Determine the underlying cause

3. Consider a broad range of alternatives

4. Build consensus on the resolution

5. Use efficient communication tools

Principle 14

• Become a learning organization through relentless reflection (hansei) and continuous

improvement (kaizen).

The process of becoming a learning organization involves criticizing every aspect of what

one does. The general problem-solving technique to determine the root cause of a problem

includes:

1. Initial problem perception

2. Clarify the problem

3. Locate area/point of cause

4. Investigate root cause (5 whys)

5. Countermeasure

6. Evaluate

7. Standardize
  TOYOTA PRODUCTION SYSTEM

The Toyota Way also helped shape the company's approach to production, where it was an

early pioneer of what would be come to be known as lean manufacturing. The company

defines the Toyota Production System under two main pillars: just-in-time (make only what

is needed, only when it is needed, and only in the amount that is needed) and Jidoka

(automation with a human touch).

The origin of the Toyota Production System is in dispute, with three stories of its origin:

(1) that during a 1950 trip to train with the Ford Motor Company, company executives also

studied the just-in-time distribution system of the grocery store company Piggly-Wiggly,

(2) that they followed the writings of W. Edwards Deming,

(3) they learned the principles from a WWII US government training program (Training

Within Industry)

After developing the Toyota Production System in its own facilities, the company began

teaching the system to its parts suppliers in the 1990s. Other companies were interested in the

instruction, and Toyota later started offering training sessions. The company also has donated

the training to non-profit groups to increase their efficiency and thus ability to serve people.
  TOYOTA PAKISTAN

Indus Motor Company Limited Operating as Toyota Indus, is a

Pakistani automobile manufacturer which is a subsidiary of Japanese multinational

automaker Toyota. It is a based in Karachi, Pakistan.

Founded in 1989, as a joint venture between House of Habib, Toyota Tsusho and Toyota

Motors.

Indus Motor is the authorized assembler and manufacturer of Toyota and Daihatsu vehicles,

auto parts and accessories in Pakistan since 1 July 1990 at its 105 acres (0.42 km2)

manufacturing plant at Port Bin Qasim Industrial Zone, outside Karachi. Indus Motor has

employed 3,349 persons.

• Type

Public (Joint venture)

• Traded as

PSX: INDU

• Industry

Automotive

• Founded

1 July 1990

• Headquarters

Karachi, Pakistan

• Key people

Mohamedali R. Habib (chairman), Mr Ali Asghar Jamali (CEO), Shinji Yanagi

(director & vice chairman)

Automobiles

• Number of employees

3,349

• Parent

Toyota Motor Corporation (25%)

Overseas Pakistan Investors AG (35%)

Toyota Tsusho Corporation (13%)

Thal Limited (6%)

General public (7%)

• Website

www.toyota-indus.com

 HISTORY

Indus Motor was incorporated as a public limited company in December 1989 and started

commercial production in May 1993. Shares of the company are quoted on the Pakistan Stock

Exchange.

In March 2000, the company started production of Daihatsu Cuore in Pakistan which was based

on the domestic Mira and features an 850-cc engine.

In 2008, Toyota acquired 9.83 million shares from Overseas Investors AG and general public

at the price of ₨370 per share.

In January 2012, the company halted Cuore production in Pakistan.

Former Chairman of Indus Motor Company Ltd, Ali Suleman Habib died on 18 April 2020.
Products

Cars

• Toyota Yaris

• Toyota Corolla

• Toyota Camry

• Toyota Prius

SUVs

• Toyota Corolla Cross

• Toyota Rush

• Toyota Fortuner

• Toyota Prado

• Toyota Land Cruiser

Pickups

• Toyota Hilux Single Cabin

• Toyota Hilux E

• Toyota Hilux Revo

Buses & Vans

• Toyota Coaster