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The History of Toyota Motors
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Reviews the history & growth of Toyota, focusing on its innovative "just-in-time" production processes.... More...
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Paper Abstract:
Reviews the history & growth of Toyota, focusing on its innovative "just-in-time" production processes.

Paper Introduction:
The History of Toyota Motors In its review of entrepreneurs of the 20th century, the World Press Review (1996) named Eiji Toyoda one of the top ten entrepreneurs of this century. He is not the beginning of the story of Toyota, however, nor its endpoint. In the beginning was Sakichi Toyoda, who was followed by Kiichiro Toyoda. Sakichi Toyoda began his entrepreneurial activities during the 19th century, but he established the basic philosophy for Toyota and some of its longstanding principles. Sakichi developed the first pillar of the Toyota production system, while Kiichiro developed its second pillar (see Chart I). It was Sakichi who developed the principle of autonomation, which he initially applied to the textile industry. His focus was

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Ohno, T. | | || | |Joining | | || | |forces to | | || | |obtain the | | || | |best | | || | |knowledge | | || | |and | | || | |know-how. Essentially they used a team process in which groups ofproduction workers formed teams, with a team leader, rather than a foreman. Thornton, E. Eiji worked together with Taiichi Ohno to develop the ToyotaProduction System. He developed his ideas by watching,observing the way that women in his village operated hand-weaving machines. Peoplestill tell the story of Sakichi Toyoda's charge to his son. Sometimes he would spend all day watching people weave, learning moreabout how the machine operated. While he wasdying, he told Kiichori: "I served our country with the loom. He was convinced that the world had moved into a new era with theinvention of the automobile and he determined to bring the automobile toJapan. At that time, many industries, and particularly the auto industryin the United States, suffered severe problems and had profits take a nose-dive. The History of Toyota Motors In its review of entrepreneurs of the 2 th century, the World PressReview (1996) named Eiji Toyoda one of the top ten entrepreneurs of thiscentury. Etc.... Shingo, S. At a time when most carmanufacturers are streamlining in order to concentrate on their coreventures, Toyota is expanding its non-automotive manufacturing businessesto include such things as cellular phones and prefabricated homes. To ensurethis, Kiichiro actually built his own steel mill to create the propermaterials. The dualfocus was on quality of product and elimination of all waste. | | || | |Desire to | | || | |excel | | || | |? | | || | |Respect for | | || | |Humanity | | || | | | | ||* Shortened | | |* Problems | ||lead time | | |become clear, | ||* Reduced | | |solutions are | ||operations | | |found and | ||other than | | |implemented | ||processing | | |* Quality | ||* Obtaining a | | |assurance | ||balance | | |* Heightened | ||between | | |sense of the | ||processes | | |need for | ||* Problems | | |improvement | ||become clear | | |* Accepting | || | | |challenge for | || | | |a higher level| || | | | | || | | |* Management | || | | |centered on | || | | |controlling | || | | |abnormalities | || | | | | ||Organizing ? Itscurrent plans are to generate approximately 1 percent of total income fromthese other sources by the year 2 (Thornton, 1997). He believed that the most effectiveway to work in an industry like the auto industry was to have all the partsneeded for assembly t the line just in time for their use. Kiichiro established theconditions of the automobile business, which he saw as: o providing cars for the general public o perfecting the passenger car industry o making reasonably priced cars o recognizing the importance of sales in manufacturing o establishing the basic material industry. Cambridge, MA: Productivity Press. The teams started work in1933, when Kiichiro asked them to catch up to the United States in threeyears. Both Sakichi and Kiichiro had a global vision, although they were unableto successfully implement that vision until after World War II. |? | |Metod of ? After these restrictions were abolished in1949, Toyota moved toward full-scale production and independent sales.However, Kiichiro was not able to benefit from this. Kiichiro Toyoda envisioned the second pillar of the Toyota productionsystem, the just-in-time philosophy. The result of this production system became apparent during the 197 sand 198 s, but saw full fruit by 199 , at which point Toyota had become theworld most efficient car producer. Thus, Toyota continues the visionary efforts of Shakichi and Kiichiro,always moving toward a system of highest quality and lowest waste in themarkets of the immediate future. He saw the automobile as the feet of the people, enabling them toexpand their horizons. Cambridge, MA: Productivity Press. (1989). Etc... Sakichi developed the first pillar of theToyota production system, while Kiichiro developed its second pillar (seeChart I). One of Eiji's first moves was to visit Ford's Rouge plant, the largestautomotive plant in the world at the time, producing 7, cars a day.However, Eiji believed that he could improve upon the Ford system, and thatthe Ford system was not really appropriate for Japanese needs. He asked his son, Kiichiro Toyoda to develop an automotive industry.Kiichiro worked with two separate teams of automobile engineers andbusiness managers in an effort to mass produce cars domestically, followingthe Ford system of factory mass production. (1988). He is not the beginning of the story of Toyota, however, nor itsendpoint. The Toyota Motor Company was established during the early part ofthis century, but it did not move into full-scale production until the waryears, when it attempted to meet the military's demand for the war effort. Method of | |Method of ? This observation was eventually applied to the development of theToyoda Spinning and Weaving company, which operated until the second WorldWar. 91997). By the time Eiji tookcontrol, the Toyota Motor Company had produced fewer than 3, passengercars, although a great quantity of army trucks. Method of | |Sequence of ? |? |? Method of ||transportation|providing | |automation |discovering || |information | |with a human |problems || | | |touch | || | | | | ||Shortening ? His focus was learning how toapply human intelligence to machines so that machines would function moreeffectively in service to people. The Toyota system was designed to produce smaller quantities of awider variety of models of car. In the beginning was Sakichi Toyoda, who was followed by KiichiroToyoda. His last years weresad for him, because he took responsibility for a labor dispute occurringduring early 195 and resigned from the company, turning it over to Eiji.He died in 1952, just before full-scale operation began. Toyota also obtained support from the government, with thepassage of the automobile manufacturing business law in 1936. The Fordsystem was designed to produce large quantities of a few different modelsof car. It took Toyoda and Ohno more than 2 years to perfectthis production system (see Chart II). These teams had to solve problems involved in the production ofautomobiles and were responsible for several different functions, includingquality control. However, in 1976 and 1977, immediately after the world oil crisis,Toyota Motors registered impressive profits of $597 million and $716million. Sakichi Toyoda began his entrepreneurial activities during the19th century, but he established the basic philosophy for Toyota and someof its long-standing principles. By 1936, Toyota cars were on the market, and the automobileproduction company was formally created. This lawlicensed automobile manufacturers and supported the growth of the domesticautomobile industry by suppressing foreign car assembly and sales.However, passenger car production lagged until the late 194 s, althoughtruck production reached high levels by the war years. Ten entrepreneurs. Seeking immortality. Method of ||time for |restraining | |repairing |problem ||exchange of |overproduction| |breakdowns |solving ||die | | | | || | | | | ||Organizing ? There were restrictions on small-car productionuntil 1949 and price controls. I want youto serve it with the automobile." This vision of the Toyota Motor Company also began with the experienceand observations of Sakichi Toyoda. Visual ||Process |letting goods | |stopping |control || |flow | |machines and | || | | |lines | || | | | | ||Method of ? World Press Review. He went to the United States for thefirst time in 191 and saw the early automobile produced by Ford MotorCompany. This success has continued into the 199 s. Kanban: Just-in-time atToyota. |? Sakichi had visualized the development of an automated loom in 19 1,building upon his early observations, and it was perfected in Japan in 1926and used by Toyoda Spinning and Weaving. (1996). A study of the Toyota Production system from anindustrial engineering viewpoint. It was Sakichi who developed the principle of autonomation, which heinitially applied to the textile industry. |? In other words,he did not think a large inventory was efficient or productive. The Two Pillars of the Toyota System Chart I| | | | | || | | | | ||Just-In-Time | | |Automation | ||(Materials | | |With a Human | ||needed, when | | |Touch | ||needed, and in| | | | ||the quatity | | | | ||needed) | | | | || | | | | ||Letting the | |Autonomy and|To discover | ||goods flow | |a highly |abnormalities | ||just in time | |charged |and problems | ||along the | |atmosphere |within a given| ||process | |in the |process, | || | |workplace |machines and | || | | |lines are made| || | |Clarificatio|to stop | || | |n of |autonomously | || | |objectives | | || | |? The first sign that Toyota haddiscovered a unique production system that would enable it to thrive in theglobal marketplace was its success after the first oil shock during the mid-197 s. It was also designed to utilize automationand just-in-time production methods in a lean production system. From the beginning, Toyota emphasized quality, requiring bothmaterials and finished product to reach 95 percent pass rates. |? Far Eastern EconomicReview, 16 (5), 5 . |? February, 1996, 22-25. (1989). Method of | |Method of ? So it is Eiji, Kiichiro's nephew, that took the Toyota Motor Companyto its position of dominance in the world market. |? It was criticized for its success, both in Japan and in theUnited States, and became somewhat of a target for those generally criticalof foreign penetration of U.S. Toyota production system. Cambridge, MA:Productivity Press. References Japanese Management Association. Kiichiro Toyoda did not live long enough to see full-scale productionof Toyota automobiles. markets. ||standard | | |repairing | ||operations | | |defectives | || | | | | || | | | | ||Load-Smoothing| | | | ||Production | | | | ||(It is best to| | | | ||manufacture | | | | ||everything in | | | | ||a balanced | | | | ||manner) | | | | | Development of the Toyota Production System Chart II1945----------------------------------------------------------------1975 Just-in-Time 1949------------------------1958 (Warehouse withdrawal slips gone) 1948------------1953----------------------1962(upstream transport) (supermarket system) (kanban adopted) 1953----------------------------------------1973 (call system) (transfer system, out - in) Autonomation1945-1955-----------------------------------1962--------------1971(Setups, 2-3 hrs.) (Setups, 15 mins.) (Setups, 3 mins.) 1947--1949-195 --------------------------1963(2-machine handling)(3-4 machines) (multi-process operation) 195 -----------1955---------1961-----------------1971 (visual control) (main plant system) (andon installed) (fixed- position stopping) 1953--------------------------------------------------- (Production leveling)

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