MANAGEMENT PRACTICES OF TOYOTA CORPORATION AND ITS SUSTAINED GROWTH
SUBJECT: MANAGEMENT 3600
SUBMITTED TO: PROF.RAMA RAO
Nikita tatiwar v (09128)
Ranjith kumar p(09137) Shashank a(09144)
Swetha jakka(09151) Prateeka p(09159)
Since Toyota’s founding we have adhered to the core principle of contributing to society through the practice of manufacturing high-quality products and services. Our business practices and activities based on this core principle created values, beliefs and business methods that over the years have become a source of competitive advantage. These are the managerial values and business methods that are known collectively as the Toyota Way.
—Fujio Cho, President Toyota (From the Toyota Way document, 2001)
TOYOTA’S MISSION AND VISION6
GUIDING PRINCIPLS OF TOYOTA8
FIVE MAIN PRINCIPLES OF TOYOTA8
THE 14 MANAGEMENT PRINCIPLES OF TOYOTA OR THE TOYOTA WAY9
MANAGEMENT PRACTISES OF TOYOTA14
THE TOYOTA PRODUCTION SYSTEMS (TPS) OR LEAN PRODUCTION16
BENEFITS OF LEAN PRODUCTION:18
TOYOTA AND ITS SUSTAINED GROWTH:18
Since the company’s founding in 1937, Toyota has continuously striven toward sustainable use of resources and the development of society through manufacturing and provision of high-quality, innovative products and services. Through such efforts, they have established a corporate philosophy and management practises that has been passed down from generation to generation, and which has come to be known as the “Guiding Principles at TOYOTA”. The business approach and the values that inform their conduct has been compiled in a document entitled the “TOYOTA WAY”. The main objective of our study is to focus on the “The management practises of Toyota” but without understanding the principles of Toyota, that is the Toyota way it is not possible to appreciate its management practises. The paper starts with the Toyota way and then goes on to explain Toyota’s management practises.
Toyota Corporation is a multinational corporation, with its headquarters in Japan. It’s the world’s largest automaker which employs approximately 316000 people worldwide. It was founded by Kiichiro Toyoda in 1937 to create automobiles. Toyota owns and operates Lexus and Scion brands. It has 522 subsidiaries. In addition to automobile manufacturing, Toyota also provides financial services through its division Toyota financial services. It is one of the largest conglomerates in the world. The Toyota Motor Company was awarded its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of Motorsports. Toyota ranks number one in global automobile sales for the first quarter of 2008. It displaced GM and became the world's largest automaker for the year 2008. It held the title of the most profitable automaker ($11 billion in 2006) along with increasing sales in, among other countries. According to the 2008 Fortune Global 500, Toyota Motor is the fifth largest...