An Introduction To Toyota Motor Corporation Marketing Essay

An Introduction To Toyota Motor mass Marketing EssayIn 1933 friendship was founded by Kiichiro Toyoda. In 1934 department of Toyota industries manufactured first w be the product called Type A engine and its first passenger elevator car AA in 1936. Toyota bought some early(a) companies also and own and operates Lexus, Scion, Daihatsu and Hino Motors and divvy upholdings in Fuji glowering industry, Isuzu, Yamaha, and Mitsubishi Aircraft Corporation. All these and some other in total includes around 522 subsidiaries.Toyota is headquartered in Toyota City, Aichi and in Tokyo. Instead of automobile Toyota also provides financial services by means of its division Toyota Financial Services and also builds robots for different industries. Toyota Motor Corporation its financial services and Toyota Industries all together form the bulk of the Toyota host and adept of the largest conglomerates in the orb.Toyota is worldwide famous and head known participation because of their mel lowed type manufactured cars, Toyota is doing truly head and growing very fast globally they view their operations, manufacturing facilities and valuable loyal nodes all over the world. The new technology Hybird in Toyota cars gave a new pride to Toyota and the sales of Toyota going up day by day. In last hardly a(prenominal) years Toyota became numeral one in automotive industry and became a number one in mostly selling their cars worldwide. below map shows the figures of manufactured cars in 2008 and the chart is showing other companies intersection also.In 2008 Toyota overtook GM and automotive industry announced Toyota the world biggergest carmaker. But by and by that complains started arising and more(prenominal) customers stated blaming about the quality controllers because of their quick ricking out. Due to the rapid expansion they recalled more than eight million cars in year 2009 the halt and accelerator defects and bearing, defending their selves agains t 98 lawsuits due to the deaths, injuries and damages happened to customer who were exploitation their cars.http//news.bbc.co.uk/1/hi/8626668.stmToyota products were in high postulate worldwide and they had a time when they felt they might not be able to invite the demand of customers but they were selling as normal routine and amplification the production with huge volumes and adjoin the manufacturing speed. Contacted and started ladders with more suppliers for different move which they atomic number 18 use to buy from different suppliers. Toyota Executives and Mr. Akio Toyoda had a strong impression that works with new and more suppliers might give a foul impact for their quality and they might not be able to control well. They had very busy and high demand for their cars instead of finding unafraid solution to cope this situation they didnt go for more alternatives comparable booking, second-stringer for cars instead of doing this they gave focus on rapid expansion .Rapid expansion met the demand of customers but on the other hand gradually they started receiving complains from their customers. In one period they were aw atomic number 18 of the problem but they didnt recover it and took it easy which later returned back as a big problem for Toyota and did huge sum recalls which cost a lot.Rapid expansion helped but put them in big problem also they lost the quality control and the throw in parts purchased from different suppliers were the big problem also. They have basically ternion causas of suppliersground level One providers score 2 Suppliers gradation Three SuppliersThe car makers manufacturing dodging is known as Original Equipment Manufacturers, or OEM. After OEM arranging accordingly they reply on Tier One Suppliers, Tier Two Suppliers and finally Tier Three Suppliers. Tier one supplier much(prenominal) as Bosch, Denso, Continental, Delphi, Valeo and Tenneco. These companies deliver big integrated arrangement directly to the OEM. Tier cardinal suppliers provides individual products to Tier one or directly to OEM. Tier 3 supplier make single products and deliver to Tier both suppliers. Due to the high demand of products the supplier did big misapprehensions and put Toyota in big problems. The unintended acceleration was problem happened because of the Tier Two Supplier. In Tier one supplier course they have a few(prenominal) suppliers and they neer confront both problem while working with them. But on Tier Two and Tier Three they have thousands of suppliers around the world which is quite hard for Toyota to control closely to all of them.OEM working swimmingly closely with Tier One Suppliers but facing many problems with their thousands of Tier Two Suppliers and Tier Three Suppliers. These problems argon increasing and they are losing grocery store grip and the customers trust because of these kinds of inefficiencies and little quality control standards.Toyota Lean action clayLean Production /ManufacturingLean production is a mannequin followed very well by Toyota which helped a lot to improve their working conditions and helped them to save time and money. The main judgment behind this word bleed is more outputs against less input in less time. The main sources of this less input are money, work force, working space, inventory and time. These wastes demand to be eliminated, in other words lean production means to sully the waste and make easy, transparent steps and speed up the working results.Toyota Production remains called as lean manufacturing also because they introduced and worked on this concept of saving extra wastages. The frame eliminates the overproduction, waste, useless transportation, inventory, motion, defective untroubleds, over processing, delay and implementation of the concepts like continuous flow and customer pull. The major areas which are very considerable and main causes areQualityDelivery natural rubberCostsMoraleDiagram showing compo nents of Lean Production formationAdvantages of Lean ProductionLean manufacturing helped Toyota to achieve many targets with the help of this system they achieved many benefits which helped them to save money, time and work force and many other factors also that indirectly strengthen the telephoner and help their market share grow worldwide significantly.Within few years the lean production helped them to reduce wastages by around 80% which is very high for this type of big company, production costs were reduced by 50 portion and manufacturing cycle time decreased by around 50 percentage also. Inventory reduction reduced significantly which helped them to save space for storing and work force decreased by 50 percent also.These reductions encourage them to increase facilities for employees and customers, improved the working environment. Friendly, comfortable working environment encourage employees and it helped to have higher quality and higher profits. They achieved many benefi ts through nifty system flexibility, more focus and good flow of shipping and billing frequencies.Below mentioned chart illustrates very clearly the different between the traditional manufacturing system and lean manufacturing system. Production system of 20th century was recognized as a mass production system of Toyota and lean production system is taken as 21st century production system.Toyota Production System (TPS)TPS based on 7 basic principles which really helped them to have good approach to meet the demand and in a good cheerful manner. The principles they followed tried their best to reduce setup time and to have develop quality focused on small lot productions. Encourage and mingled employees gave them job security and rights to involve and give full participation and their thoughts for improvements, quality increment and maintained the equipments with great new changes. Involvement of suppliers of all lead types and the pull production is a part of those 7 basic TPS p rinciples.http//www.1000ventures.com/business_guide/lean_production_main.htmlToyota add Chain ManagementSupply Chain ManagementAny company manufacture products and at the same time buy products from different suppliers and then these products sold to their customers, this procedure called run stove of mountains. Supply chains are simple and difficult too depends on the company size and the products produced by them. in that respect are some elements involved in bring home the bacon chain which are customer, purchasing, planning, transportation, production and inventory. Those people who manage all these procedures involved in this sequel known as fork up chain management.To make it sure that supply chain operating are efficient and producing high level of customer satisfaction and trust at low costs, companies adopted supply chain management technology and processes. The three basic activities involved which company follows which areOperationalTacticalStrategicTo make it quic ker companies bought and use special(prenominal) technology software which helps to have quicker information between customers and suppliers. ERP, release and Oracle are mostly used to give and take a la mode(p) updates.http//logistics.about.com/od/supplychainintroduction/a/into_scm.htmhttp//www.mhprofessional.com/product.php?isbn=0071615490All major automotive companies use supply chain management and lean production system. The rapid expansion gave big impact on its supply chain, when the requirement to expand the supply chain it meant they need to work with many unfamiliar and new suppliers who was not aware(predicate) and dont had deep understanding of the culture of Toyota.In 2008 Toyota used parts which were not solely controlled and the chain didnt focus that much because of the rapid expansion and high demand.http//www.economist.com/business-finance/displaystory.cfm?story_id=15576506The company did a big mistake too highly depending on the supplier which are outside Japa n, it would be better to have few suppliers and near and in approachable market where they can control easily. Toyota needs to have closer monitoring on supply base curiously for point two and tier three supplier. Due to the rapid expansion the supply chain also disturbed because of many reasons, its hard to work with new supplier suddenly and who are not aware well to our company structure and culture.http//forums.industryweek.com/showthread.php?t=14131SuccessLean production system, supply chain management and the concept of product life cycle which is well followed by Toyota helped Toyota to reach the highest level in automotive industry.Other inspirations indoors organization also make a big contribution like an internal blog, rewards, hold creativity and ideology sessions, give positive feedback and respond to suggestions, celebrate on success, encourage risks celebrate failures too, use of mind maps, undulate up work team ups, understand consumer behaviour and innovation links to Jobs.http//news.bbc.co.uk/1/hi/business/4015831.stmhttp//videos.cnet.co.uk/39042972.htmRecommendationsToyota OEM is working closely to their Tier One Supplier and having good results, few suppliers come under Tier one category they have long term relations and never faced any problem regarding quality or other related issues. But Toyota has faced many issues and still facing and having problems with their Tier two suppliers and tier three suppliers. During rapid expansion they increased the quantity of suppliers and they were not aware completely about Toyota cultures and Toyota even could not check and focused that well on their supplies.They did a big mistake to reply on new and thousands of suppliers in Tier one and Tier two categories and other big mistake was they replied on those suppliers which are outside Japan. I would say it would be great if they take extra time for deliveries give more attention on lean and supply chain. Try to decrease the number of tier two an d tier three suppliers try to list them and have few which are according to the Toyota standards. Give more focus on quality controls and the team must make sure there will be no space for recall after handover the vehicles to the customers.Chapter 3 ConclusionIn little Toyota is doing well in the market and going at the highest level of their successes. Enjoying cosmos number one in the automotive industry, ranks number one in highest units selling cars worldwide. Regularly struggles and keeps trying bringing innovation to their products helped them to be number one innovative company in the world.Toyota Prius Hybrid innovation gave more value to Toyota Corporation, after introducing Prius I and II finally they introduced new Prius tercet with many more facilities and functions for drivers to enjoy the journey and daily life on road while travelling to jobs, offices etc. Overall if you see they are doing well but from 2008 after rapid expansion and when they took over GM after t hat they started facing issues and complain. They are trying their best to cope and trucking rig this hard time, recalling all vehicles which parts are needed to exchange and working to get quality promised parts form their tier two and tier three suppliers.List of SourcesInternetManchester affair School Online (Cited 24 November 2009) obtainable from Paggu Online (Cited 28 November 2009) visible(prenominal) from Exeter Business School Online (Cited 27 November 2009) functional from Yo gentile Online (Cited 27 November 2009) Available from Automative Industry Online (Cited 22 November 2009) Available from London regime Uk Online (Cited 2 celestial latitude 2009) Available from Working Knowledge Online (Cited 2 December 2009) Available from MSN Autos Online (Cited 30 November 2009) Available from http//www.mhprofessional.com/product.php?isbn=0071615490All Hybrid Cars Online (Cited 27 November 2009) Available from BBC News Online (Cited 26 November 2009) Available from CNET Onl ine (Cited 27 November 2009) Available from Toyota Online (Cited 29 November 2009) Available from http//blogs.hbr.org/cs/2010/03/dont_believe_everything_you_re.html?cm_mmc=npv-_-DAILY_ALERT-_-AWEBER-_-DATELiteratureE Ghaziri, H.M (2003) Knowledge Mangement (5th Edition). 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