Toyota V.S Ford

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Toyota Motor Corporation
Vs.
Ford Motor Corporation
(Past to Present)
THE GBAS MODEL
Prepared for: Dr. Reed Nelson
Prepared by: Jeremie J. Martin

SOUTHERN ILLINOIS UNIVERSITY
CARBONDALE
SPRING 2011
Introduction
This paper will be structured to focus on two of the leading automobile manufacturers in the industry to date. Toyota is the number one automobile manufacturer in terms of production and sales. Toyota is a foreign vehicle manufacturer located out of Japan founded in 1937. Ford is the second largest vehicle manufacturer in the United States and fifth largest worldwide. Ford was the eighth ranked overall vehicle manufacturer on the 2010 Fortune 500 list. Ford is known for producing the “Model T” in 1908 which will forever be known as the first affordable automobile in the United States. Each company will be introduced and described separately. After providing substantial information about each organization, a comparison will follow to highlight the differences between the two. This comparison is imperative for the GBAS model. I will also make an assessment of the four facts or organization life, fit, trade-offs, opposites and if the elements come in packages. Toyota Motor Corporation

Toyota Motor Corporation is a foreign vehicle manufacturer based in Aichi, Japan. Toyota Motor Corporation came to the forefront in 1937; (TMC) is a variation of what originally used to be Toyota industries. Kiichiro Toyoda always envisioned creating a multinational automobile manufacturer and his dreams came to fruition three years earlier, when still with Toyota Industries, they created their first product which was the “Type A” engine and in 1936 came their first vehicle the “Toyota AA”. Today Toyota Motor Corporation group companies include Scion, Lexus, Daihatsu and Hino Motors Toyota stepped into the national spotlight in the 1980’s when people started to realize that there was something different about their vehicle. What stood out most was the exceptional quality and efficiency of Toyota vehicles. Japanese cars were lasting longer than American cars and also required less maintenance. At the time, there were several Japanese manufacturers competing in the market, but Toyota stood out the most. Toyota did not provide the most exciting designs, but what they did was design automobiles that were very consistent and more reliable than most vehicles at an affordable price. Also, Toyota had a canny ability to troubleshoot all of their problems and come back even stronger when one of their weaknesses was exposed. While stock prices of the Big 3 were falling in 2003, Toyota shares increased 24% over 2002. Toyota’s capitalization was higher than the combined capitalization of Ford, General Motors and Chrysler. (The Toyota Way, Pg 4) Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while competitors typically take two years. Toyota is benchmarked as the best in its class by all of its peers and competitors throughout the world for high quality, high productivity, manufacturing speed and flexibility. (The Toyota Way, Pg 5) Toyota had a unique way of manufacturing their vehicles which is what helped them create differentiation from themselves and the market. The Toyota Production System and Lean production has dominated the industry for the last 10 years along with Six Sigma. During and before WWII, Toyota knew that mass production was not their strength. They were too small and disjointed to support high production values. Toyota decided to produce roughly 900 vehicles a month while on the other hand; Ford was about 10 times more productive. Toyota managers knew that if they were to survive, they would have to adapt to the mass production for the Japanese market. The problem was that they didn’t know how. The Toyota production system used many conceptions from those of Henry Ford, but the Japanese were determined to stick to the principles that...
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