TABLE OF CONTENTS
REPORT: TOYOTA KIRLOSKAR MOTORS
Technology and Organisational effectiveness
Porter’s Five Forces
Questionnaire for the Survey
ABSTRACT: CASE STUDY ON TKM
Ever since humans got wheels to travel on, the demand was created and market developed; kick starting an industry overflowing with technology, design, machine and human labour. The fight to get to the top of this automotive industry has become cut throat and in all this hullabaloo for market share Toyota stands tall. It is the world’s largest producer of automobiles and continues to dominate the market; spreading its wings in as many as 27 countries, tapping the opportunities and creating customised products for the developing world. In India, we find there exists a joint venture between Toyota Motor Corporation and Kirloskar Group- a leading Indian conglomerate, Toyota Kirloskar Motor (TKM) Private Limited. TKM aims to play a major role in the development of the automotive industry and creation of employment opportunities. Toyota is known for its famed Toyota Way which is a cluster of fourteen principles and behaviours that underlies its managerial approach and production system. In this project, we will study about this joint venture and get a better understanding of The Toyota Way. There will be an analysis of competitors such as GM Motors, Volkswagen Group, Ford to name a few. Among the business analysis methods to be used, we have SWOT analysis, PESTLE and Porter’s Five Forces. The organisational structure of the company will be looked into along with the organisation chart. The industrial relations which also include incidences like the strike at Bidadi in addition to the vehicle recalls and the environmental responsibility of TKM will be critiqued. The production philosophies of Lean manufacturing, Kaizen, KanBan and their limitations will be evaluated.
The Toyota Kirloskar Motor (TKM) Pvt Ltd is the joint venture in India between Toyota Motor Corporation and Kirloskar Group with 89% and 11% stake respectively. The famed ‘Toyota Way’ is what forms the backbone of TKM. There are some fourteen principles in this methodology which provides an ecosystem for the company to grow. This philosophy comes with recommendations stated below: 1. Management decisions to be based on long term goals even at the expense of short term gains. 2. It talks about problem identification through a continuous process. 3. To produce only as much as is can be consumed also referred to as ‘Kanban’ or the pull process. 4. It goes on to say that the workload is to be evenly distributed and steady growth followed. 5. At each step in the process tests must be performed and they should corroborate the quality of the product to ensure that the product is error free. 6. Standardization of the tasks is the key to empowering employees and producing continuous improvements. 7. Using visual tools will enhance the visibility of errors and aid in detection of the same. 8. Only adequately tested technologies must be used to assist people and process. 9. Build leaders who not only apprehend the work but also live the philosophy and pass on the learnings. 10. Promote extraordinary persons and teams who are one with the company and its processes. 11. Due importance to be given to partners and suppliers by assisting them in improving and challenging them. 12. Always get the first hand information to understand the gravity and validity of the situation. 13. To make and take those critical decisions after considering all options build consensus and don’t work in haste. 14. Constant reflection on the processes will pave a way for continuous improvements; the organizations must strive to learn.
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