Kiichiro Toyoda Research Paper

Toyota motor corporation is a Japan-based company mainly engaged in the automobile business and fnancial business. The founder was Sakichi Toyoda. He invented numerous weaving devices, but his most famous invention was the automatic power loom.

Toyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder’s son, Kiichiro Toyoda. The division produced its frst engine in 1934 (which was used in the frst Model A1) and the G1 truck was announced in August 1935. The AA model production began in 1936.

Kiichiro used the spirit of invention and the business base inherited from his father to expand into the automotive business and build the foundation of today’s Toyota Group, wich was established as an independent company in 1937. Although the founding family name is Toyoda, the company name was changed to Toyota to simplify the pronunciation, and to give to the company a happy beginning. Toyota (トヨタ) is considered luckier than Toyoda (豊 田), because you need eight strokes to write it and the number eight means lucky in the japanese culture.

During the frst seven years of operations, Toyota sold just 1,500 cars. But he had more success with the sale of trucks. The operations grew when the government said that all auto manufacturers should be mostly Japanese. This ended U.S. vehicle imports.

In the Second World War the company was dedicated to truck production for the Imperial Japanese Army. Because of the poverty in this country, military trucks were made as simple as possible. For example, the trucks had only one headlight on the center of the hood. In 1950, Toyota had to deal with the terrible japanese recession. So the company was forced to do a layoff of employees and support large losses. That was the only year that the company,until now, has had losses.

The Toyota Crown became the frst Japanese car exports to the United States in 1957, and the U.S. divisions Toyota and Brazilian were established. Since that moment the company has a philosophy to make production and design of its products in the same location.

In the 1980s, when the corporation seriously thought in build luxury cars, Lincoln and Cadillac were very successful The frst Lexus, fnally appeared in 1989. It was an immediate hit thanks to its high levels of quality and reliability, and a lower cost than the competitors.

Scion and Daihatsu are another brands of Toyota

Upon entering the 21st century, demand in Japan for new cars started to fall. In contrast, demand in the U.S. market remained at historically high levels, and China and India demand was growing. It was the time to start operations at overseas production sites

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with French motoring companies Citroën and Peugeot a year after they started producing cars in France.

It became in 2007 the frst global automotive manufacturer overtaking General Motors. The next

year they have a production and sales of approximately 9.8 million vehicles, although the number of reviews enforced and quality problems have hurt his image. This leadership lasted until 2011, when there was a strong industrial recession in Japan because of the earthquake happened on March 11of that year. Toyota fell to third place, giving the lead to General Motors and Volkswagen came second.

The Toyota Production System (TPS) is an integrated socio-technical system, developed by Sakichi Toyoda, his son Kiichiro and the engineer Taiichi Ohno, It comprises its management philosophy and practices. The main objective of the TPS is to eliminate waste (muda).

Its values and conduct guidelines are in this fve principles:

1.Challenge(We form a long-term vision, meeting challenges with courage and creativity to realize our dreams) 2.Kaizen (We improve our business operations continuously, always driving for innovation and evolution.) 3.Genchi genbutsu (Go to the source to fnd the facts to make correct decisions.) 4.Respect the others 5.Teamwork

According to external observers, the Toyota Way has four components: – Long-term thinking as a basis for management decisions – A process for problem-solving – Adding value to the organization by developing its people – Recognizing that continuously solving root problems drives organizational learning


-Employees: 320.590 -Production output (2012) : 9,909,440 units (Toyota was the largest automobile manufacturer in 2012 by production) -3 DIVISIONS: Lexus, Scion, Daihatsu -Products: Automobiles, commercial vehicles, engines and motorcycles -507 Subsidiaries and 212 associated companies (2012) -Assets : $371.3 B -Market value: $167.2 B -Profts: $3.4 B -Sales: $224.5B (It was the number one in global automobile sales for the frst quarter of 2008, but now it is the number 9th on forbes list) -Toyota ranked eighth on Forbes 2000 list of the world’s leading companies for the year 2005 but slid to 55 for 2011. Now it is the 31th company

FOUR REASONS THE PEOPLE CHOOSE TOYOTA (what you sent me, but i cannot copy here)

Reliabilitv (seldom break down) → in many test Toyota dominated compared to their biggest competitors. Toyota cares program → good service after the sale Fuel effcient → if you are looking to save money with hybrid vehicles, you think in Toyota Variety → we have plenty of variety to choose from: it can be a hybrid, truck, sedan… Good prices


Toyota has always operated with a production system that depends on what customers want to buy. In contrast, other automakers manufactured frst decide how many units of each model and then leave to the marketing department the task of selling what is available

-Quality -They try to improve day by day Among the fve company precepts is the instruction “always saty ahead of the times through research and creativity” -Toyota production system The manufacturing system enables Toyota to make the best automobiles at the lowest cost and to develop new products quickly -They learn from the mistakes All managers and employees of the Toyota should report problems frst and then give the good news. This is the opposite of what happens in most companies.

Not to mention the problems is a bad thing in Toyota. -They take the necessary time to study before do the innovations (not make very quickly decisions) Kiichiro, who long dreamed of manufacturing automobiles, observed the changes in industrial structures in Europe and the United States during two overseas trips and was keenly aware of the need for an automotive industry in Japan.

-The managers help and take care about the employees The managers are more coaches than bosses.Kiichiro’s close contact with machines as a young child allowed him to confrm for himself how things worked. Sakichi said, “if there was no other way even after searching for any possible solution, I would share my food when the plant could not support its workers” -Humilty and respect

The company’s top executives earn an average of $ 500,000 annually. This is a fraction of what their colleagues earn General Motors and Ford. Executives do not have driver, must conduct their automobiles and park them, like other employees, in the parking position achieved. Managers are expected to walk through the factory every day and are available to other employees -Listen to the customers -Think in a long way Most of the managers in the western companies have bonus from their sales, but not in Toyota. The managers have less pressure and they work better in the long run.