Toyota is an expert leader and globally known name in the automobile making industry. The company has been successfully manufacturing and selling strong automobiles worldwide. “It employees 320,590 people worldwide, and it is mainly into motor production and sales business. It is a 397.05 Billion Yen Company head quartered in Japan.” (Toyota Company Profile Overview, 2012). Why Toyota can Drive Success at the World's Best Manufacturer? Toyota enjoys a leadership position in the car making industry as a remarkable and reliable car producing company. Its production system known Toyota Production system had been the origin of inspiration for many firms in the automobile industry for its operational efficiency and reliability. Also, Toyota's ever-widening problem leads vehicle safety issues.
Toyota is a Japanese vehicle maker that was found in 1933 and headquartered in Toyota city, Japan. In North America Toyota presently manufactures a total of 12 vehicles, which consist of the Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Sienna, Sequoia, Tacoma, Tundra, Venza and the Lexus RX 350. (Toyota Company Profile Overview, 2012).
Toyota having at the same time high-quality, low-cost, short lead-time, flexible production over time and broadly based across the system. As Johnston (2001) Concluded Toyota has developed a set of principles, Rules in use them, that let organizations connect in this self-reflective design, testing, and improvement so that each one can contribute at or similar to his or her potential, and when the parts come together the total is much, much better than the sum of the parts.
According to Fawcett (2007), core capability is something that the company does so well that it provides the company a competitive benefit. Firstly, Toyota’s core competencies are their creation system which is known as Toyota Production System. This is consisting of Lean manufacturing and Just In Time Production. Lean Manufacturing is the production practice in which it is focusing on the cleaning of waste and continuous development over long-term. Lean Manufacturing has been confirmed to be successful in improving productivity and reducing cycle times. On the other side, Just-In-Time production is the invention practice in which it is focusing on sync the material flow so that when one item moves out from a work station, another item is ready to move in. It allows Toyota to keep their stock to the nominal levels, and this can help the company to reduce the cost considerably. Toyota Production System has enabled Toyota to gain competitive advantage over their rivals. In addition, another Toyota's core competency is their trademark management. Toyota has been successful in their marketing plan in which their brand has been accepted in all over the world. It means Toyota did not produce many of their vehicle parts. They just focus on assemble those parts to build cars. In fact, those suppliers also provide their car parts to the other companies, not only to Toyota. Thus, it is evident that Toyota is truly selling their “brand” name on their cars.
Toyota’s product development system use of a knowledge-based product development system founded on set-based concurrent engineering, system designer commercial leadership, obligation based planning and control, and an expert engineering workforce. “Set-based design introduces redundancy into the design process by allowing at least two different subsystem designs to be developed concurrently, one with little risk and additional ones with higher capabilities but also higher risk. To enable set-based design, Toyota uses trade off curves as a tool for managing subsystem performance as well as product modularity.”(Ruediger, 2004, p286). Toyota develops an expert engineering workforce by organizing developers functionally. Developers join a product development effort only for as much time as is needed. They report to supervisors who have been chosen for...