Toyota Production System

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Case Study

The Toyota Production System

Operations Management II
2012-2013
Prof. J.M. Vilas-Boas

Afonso Taira, nº 61793, GEB1
Diogo Bustorff-Silva, nº 54746, GEB1
Manuel Trincão de Oliveira, nº 54730, GEB1
Pedro Neves, nº 38415, GEB1
Afonso Taira, nº 61793, GEB1
Diogo Bustorff-Silva, nº 54746, GEB1
Manuel Trincão de Oliveira, nº 54730, GEB1
Pedro Neves, nº 38415, GEB1

Index

* Introduction
- The Automotive Industry History
- The History of Toyota

* Case Study
- Question 1
- Question 2
- Question 3

* Conclusion
- What does the TPS mean, both industrially and culturally
- Mass & Craft Production
- The Toyota System Support Centre

Automotive Industry History
The history of the automobile begins when European engineers began experimenting with motor powered vehicles in the late 1700's. By the late 1800’s steam, combustion, and electrical motors had been experimented. The combustion engine continually beat out the competition, and the early automobile pioneers built reliable combustion engines. Automotive production on a commercial scale started in Europe in 1890 but it was the USA who were the global leaders in total automobile production for many years. In 1929, before the Great Depression, the world had around 32 million automobiles in use (over 90% of them were produced by the US automobile industry). After World War II the USA produced about 75% of world's automobile production. But in 1980 the U.S. was overtaken by Japan and became the world leader again in 1994. In 2006, Japan narrowly passed the US in production and continued leading until 2009, when China claimed the first place with 13.8 million units. In 2011 China produced 18.4 million units which is more than twice the number of automobiles made by the US (second place with 8.7 million units) which is followed by Japan (third place with 8.4 million units).

History of Toyota
Toyota’s history started in 1897 when Sakiichi Toyoda entered the textile machinery business. In 1902 he founded Toyota, the Toyoda Group. The Toyoda Model G Automatic Loom was invented in 1924, and in 1929 the patent for this machine was sold in order to generate the capital for the automobile development to start. The Automobile Department was started in 1933 as a division of Toyoda Automatic Loom Works (TALW) devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. In 1936, Toyoda's first passenger car, the Model AA, was completed and the price was 400 yen cheaper than Ford or GM cars. In September 1936, the company presented its new logo and the name Toyota was chosen. The newly formed word was trademarked and the company was registered in August 1937 as the "Toyota Motor Company". By the early 1960s, the US had begun placing stiff import tariffs on imported vehicles. In response Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US in the 1980s. Due to the 1973 oil crisis, consumers in the US market began turning to small cars with better fuel economy. Toyota received its first Japanese Quality Control Award at the start of the 1980s. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General Motors called the New United Motor Manufacturing, Inc, (NUMMI), operating an automobile-manufacturing plant in Fremont, California. In the 1990s, Toyota began to diversify from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup. Toyota also began production of the world's best-selling hybrid car, the Prius, in 1997. Toyota was also present in Europe and so, the corporation decided to set up Toyota Motor Europe Marketing and Engineering, TMME, to help market vehicles in the continent. In 1999, the company decided to list itself on the New York and London Stock Exchanges. In 2002, Toyota managed to enter...
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