TOYOTA CASE STUDY

4.1. Introduction:

The chapter makes the analysis of the results on the basis of the case study and the results of
innovation in the Toyota Company and how they impact their sales is assessed here. This is
assessed with the case study that is done.

4.2. Analysis from the case study:

Toyota is the company that has their dedication in making the improvement in every phase of
their growth so that they make many innovations at all levels. Thus they make the innovation
in the development, in making the better cars and also to improve their basic performance
which will increase their production. This will make their reforms to develop the structure
and this helps them to make the better cars. This is since the ultimate aim of Toyota Corolla
is to deliver the better products and this will help in achieving the goal that they are designing
with the good and the more standardise which will span in all platforms. This will help in the
provision of the better efficiency and this will make the reduction in the cost which will result
in the savings so that their productivity can be improved. This virtuous cycle will also lead to
the better and more sustained growth. [ CITATION Toy13 \l 16393 ]

The analysis of this made them to divide their car segment into the four types and they are
cars that are specialised for meeting the tastes and the car sense (mostly with the sports cars),
with the fleet and the personal transportation like the truck and buses, the vehicles for social
purposes and finally the next generation vehicles. They try to come up with the car which
will incorporate the design and the performance that is set by the customers in their mind so
that they will meet their expectations. [ CITATION Tim13 \l 16393 ]

Overview of the initiatives taken by Toyota Corolla:

They make the reforms in their developmental structure and this is more with the
engagement of the design and also with the improvement that they make in the development
so that there is a structural improvements. They will be able to recognise the organisational
structures which face the close proximity to the customers and this makes the blending of the
developments of vehicle more with the plan and the design. The company also established
the platform for this driving position and this makes the parts and the component with the
different models to be made an improvement in their efficient and the development in their
process so that they can reduce the cost. The introduction of the subsequent parts and the
standardisation will result in the reductions in the man power and the cost. This will also
results in the improvement in the areas of the designs, the cost, the quality and the assurance
that they provide.

Improvement that is made in the development structure:

Toyota Corolla has more capacity and they are developing in this, the localized car marking
and also the improvements that are made in the organisation will improve the structure so that
the quality cars are produced. To make the vital improvement in the development capacity
they must target the 30% improvement that they make the development of the capacity by the
end of the year 2012 compared to the year 2009 and this makes an improvement in all the
areas like the development of the prototypes, the processes, and the ability of the human
beings. This will also make an improvement in the development of the efficiency so that they
have the close proximity with the consumers.

Toyota Corolla is placing their general managers in charge of the localization of the car
making in each of their region and this will make the development in the ties with the local
sales and also the R&D units. Toyota Corolla will be able to ascertain the needs of each
market so that they can improve their quality and the product appeal. The improvements that
is made in the overall organisational structure will make company to develop in their
technical development so that they can specialise their technology and the long term
development which will lead to the ever – better cars which is envisioned by them. The
vehicle design evaluation and the testing is conducted in – house by them.

Supply chain Enhancement and innovation will make an improvement in the

competitiveness:

The conduction of the grouping development shows the platforms on basis of which they
establish and provide their part which is more standard for the better efficiency and this will
reduce the costs that they have in their development. It is based on the manufacturing
technology that they adopt this approach and this will bring all related technologies together
so that they will be developing their manufacturing process which has their highest possible
performance and their functionality which can be developed so that they are standardised and
they share with them a more number of models. The adoption of the more similar approach
will make the procurement to continue and their gain will share the benefits of the economy
of scale and this will conduct the parts while they straddle with the regions, the models and
also their launch periods. The twin perspectives show the assurance of the quality and
improve the internal competitiveness so that there is more standardisation and this needs to be
conducted along with the suppliers. The parts and the standardisation will also increase their
production and the volume of the production so that they can diversify their suppliers without
losing their efficiency. This will result in the stable supplies even during the times of the
emergencies and this will strengthen the supply chain of Toyota Corolla.

Innovation that is made in the production technology:

Toyota Corolla is undertook the monozukuri (conscientious manufacturing) structure which

will make the reforms in the field of the production technology. The main aim is to make the
betterment in the cars and also to deliver the good quality which is priced in the affordable
manner so that they are more exciting and they are very much environmental friendly. This
will provide the more safe and the security. Their efforts are completely on the basis of twin
perspectives and they are good car making and the competitive manufacturing. The main
primary effort of the Toyota Corolla is to make the ever better cars so that they overcome all
the technical hurdles which is faced by the products that they are conceiving to give the good
technology departments in the areas that has the more attractive design and the performance
with the environmental technology. The competitive manufacturing will depend on the
making of the better cars and they will provide the good quality at the more affordable price
so that they ensure the cost – competitiveness which will be able to withstand the rising value
of the yen

The DNA of Toyota Corolla: Its production system:

The main foundation of the reforms of the Monozukuri structure is the Toyota Corolla
Production System which will incorporate the DNA. This can be summed up with the
automation and also the Just In time. The automation was initially done to stop the machine
when they are identifying the defect and then restart the production once they are finished
with the dealing of the abnormality. This step can be taken further when they aim with the
manufacturing so that they do not come with any kind of problems which are perfect for the
goods that are made. The just in time will make what is required and only when they are
needed. This will help in the cutting of the lead times and they are also very much effective in
dealing with the risk of the supply chain. The JIT will require the process and the levelling
and this will require the takt time and the standardised work approaches will achieve the
uniformity in their process and their timing so that their reforms are preceded with these
approaches.

Three pillars of the Monozukuri structure innovation and reforms:

The three pillars that is present in the monozukuri structure reform is the “one – by – one
production”, "produce at the optimum speed for sale," and "small-scale production." These
are considered as the significant principles of the Toyota Corolla Production System.

The ‘One – by – one’ Production which is based on the long time policy that is held by the
Toyota Corolla so that they build on the basis of the customers orders individual output
production. The next principle of production with the optimum speed is completely on the
basis of giving more priority for the demand that is put forward. The final small scale
production will provide the more small structure which is low and this will respond more
rapidly based on the increase that they face in the demand. This will help them to reach the
goal which will require the raising of the net yield at tier net operation rate.

Innovation in the technology:

The reforms that are made in the monozukuri structure will require more of the technological
innovation and this is unbound with the more general notions of whatever is possible. The
main keys that is required for innovation in the technology is they must be

1. Simple and Slim

2. Variable models in variable volume
3. Net shaping
4. High value added

The first one means that the equipment that is used is durable and they are very easy for the
repair so that they are kept simpler as possible. This will require only very less capital and
they will minimise the depreciation. The real world example of explaining this would be to
go for the 10:1 ratio. The other equipment will be to slim up so that they are more simplified
and more possible right down with the plant itself.

The variable models which is the second step is to make more flexible approach based on the
changes in their volumes so that they are more scalable with their length and also with the
assembly line.
The net shaping will bring the shape of the product more especially with the post – rough –
shape which will process the stage that is closer with the final shape. The final one mentions
about the ones that is more compact and this requires the application of the craftsmanship and
also the knowhow which will make the equipment to achieve the reduction in the loss of the
materials which will get reduced from the 80% to 90%. This will help in bringing about the
high performance cars.

Toyota Corolla’s Business and the sales performance with the innovation that is made.

The Toyota Corolla’s IMV (Innovative International Multi – Purpose vehicle) is mainly
aimed at the efficient production and this will make the distribution more for the IMVs. This
involves the development of the products which are best suited for the markets that are
emerging and this will convert the global supply based on the output that they make for the
exports so that they will be able to achieve the more tough business environment that is
marked with the strong yen and also the competition. The aim is to make 100% local
procurement rather than making their procurement from Japan. This will help them to
strengthen their responsiveness with the fluctuations that they experience in the foreign
markets.

This will make the emerging markets to drive with the annual growth that they have with the
models that they have launched like the pickup truck, the multipurpose sports car in the
worldwide except in the areas of Japan, China and also US the sales had topped five million
vehicles. This shows that the company has made the increase in their sales with the
innovation that they have made in the various areas. This makes them to continue so that
they can develop their projects in the markets that are emerging so that the strategy for the
selling of the cars in the retail market reached around 1 million yen. The company is also
planning to make a launch of models on the basis of the Etios so that they make their follow
up on the success of IMVs which will target the upwards in the sales.