Toyota has built its reputation on manufacturing vehicles that are efficient, durable, and reliable. The company has also made strides in developing green technologies, such as hybrid automobiles.
Toyota has incorporated localisation into its business plan to meet global demands for localisation. This has led to the establishment of production plants worldwide.
The Toyota Way
A global reputation for quality and efficiency isn’t just a result of the cars made by Toyota, but the management principles they embrace. A popular book by Jeffrey Liker outlines the 14 principles that comprise The Toyota Way, an approach to manufacturing that has revolutionised business practices worldwide.
One of the pillars is Respect for People, which includes building trust and understanding, encouraging personal growth, and taking responsibility. It also includes a commitment to empowering associates and stimulating teamwork. The second pillar is Continuous Improvement, which promotes small and ongoing positive changes to processes and culture through the use of tools like kaizen. It emphasises the thorough consideration of possible solutions, swift implementation once a consensus is reached, and ongoing reflection and effort to continually improve.
Toyota’s processes are designed to identify and eliminate waste at every step. Systems like Just-in-Time and Jidoka ensure that components are produced or delivered only as needed, reducing inventory costs. They also emphasise the importance of working with suppliers to ensure that they adhere to their standards, thereby promoting collaboration and cooperation.
Many companies are drawn to the Toyota Way principles because they offer clear benefits, such as reduced expenses and increased productivity. However, to reap the rewards, these principles must be woven into the company’s fabric. Employees must be empowered to innovate and contribute their ideas, and managers must be willing to support them in this endeavour.
The Toyota Production System
Often referred to as lean manufacturing, the Toyota Production System is a production management approach that focuses on identifying and eliminating waste to achieve improved efficiency. Techniques such as 5s, Kaizen, Kanban and SMED are key components of TPS and have become well-known to businesses worldwide.
Developed by the founder of Toyota, Sakichi Toyoda, along with his son Kiichiro and industrial engineer Taiichi Ohno, TPS combines people and process to achieve operational excellence. Its core principles include Just-in-Time and Jidoka (autonomy). Just-in-Time refers to synchronising production by making the goods, parts or information that are needed at the time the customer requires them. This eliminates waste caused by producing items for no reason and holding them up on the assembly line.
Jidoka is the concept of combining human and machine to create the most effective work environment. It involves ensuring that quality is built into the product by having employees actively monitor all production processes to spot potential problems and correct them quickly before they can cause significant damage or harm.
Toyota’s production philosophy also includes the need to walk the Genba, a principle that suggests visiting a situation on site to understand it fully. This requires the highest level of management to spend as much time as possible in the factory, allowing them to make changes and improvements that benefit the company as a whole.
The Toyota Financial System
When it comes to buying a new vehicle, financing is one of the most critical steps. Getting preapproved for a loan before you start shopping can help make the process more seamless and faster. Choosing to buy or lease with the Toyota finance program can also get you the best rates, thanks to special offers like promotional APRS and exclusive rebates.
The TFS app offers round-the-clock support for all your car financing needs. It’s easy to use and provides full payment functionality and access even on the go. Download it today at Centennial Toyota and start enjoying the benefits.
TFS provides retail and wholesale auto financing, retail leasing, and other financial services to authorised Toyota dealers, their affiliates, and their shared customers in the United States. Its team members are committed to delivering best-in-class customer experiences in an innovative and collaborative environment.
Your limited credit history doesn’t have to stand between you and your dream vehicle. Toyota offers special programs that enable qualifying applicants to purchase a car without requiring a co-applicant. You just need a FICO score of 610 or higher, no more than 90 days of late payments, charge-offs or collections on your credit report, and enough income to cover the cost of your Toyota vehicle payment and other expenses. Be sure to ask your dealer about these special programs.
The Toyota Sustainability System
The Toyota Sustainability System is a set of corporate guidelines that address the environmental impacts of all their operations. They strive for a net positive effect on the environment, reducing carbon emissions, promoting resource recycling, and coexisting in harmony with nature.
The company also focuses on water conservation and waste management. In addition, they have partnered with several non-governmental organisations to help improve working conditions in their supply chains.
They are well-positioned to regain their green car leader branding in the United States by introducing zero-emission vehicles. This will be a challenge, however, as they have struggled with hybrid technology for years, which has not been updated enough to keep pace with the growing popularity of battery electric vehicles.
Toyota is working to address this problem with their new Mirai fuel cell vehicle, which will offer longer driving distances than hybrids, and hopefully increase consumer acceptance of BEVS. In addition, Toyota is promoting the development of hydrogen distribution systems to reduce barriers to broader adoption.
The company is also committed to renewable energy, with all its facilities to run on 100% renewable power by 2035. They recently signed a contract with Clearway Energy Group to purchase electricity from the 115-megawatt Black Rock wind farm located in West Virginia.