GROUP MEMBERS

WASEEM

AFTAB

TWINKLE

JYOTI

RIDHI

INTRODUCTION

Sakichi toyoda, the founder of the toyota

group of companies, started toyota as a

textile machine company.

Launched first car in 1947

Toyota production system formed in 1950

based on just-in-time principle

Overseas production starts in 1959

(BRAZIL).

Ranked 6th in fortune global 500 list

TOYOTA Public company traded on the NYSE and the

ADR exchange in Tokyo

Employed 400000 people in 2012

Revenue of $272,749 Million in 2012

Year end of March

Toyota seeks to create a more

prosperous society through automotive

manufacturing and to sustain profitable

growth by providing the best customer

experience and dealer support

VISION

Produce reliable vehicles &

sustainable development of society

by employing innovation & high

quality of product & services.

SOME BRANDS OF TOYOTA

OBJECTIVES

Waste of over production

Waste of time on in hand

Waste of transportation

Waste of stock in hand

Waste of movement

Waste of making defective product

WHERE THEY ARE TODAY

Second Largest automaker, but most profitable

51 manufacturing companies in 26 countries

- Produce a vehicle every 6 seconds

Brands: Toyota, Lexus, Scion

Business partners with Daihatsu and Hino

automotive business accounted for 90% of revenues

Other 10%: housing, marine, GAZOO,

telecommunications, ITS, Biotechnology and

Afforestation

Success attributed to Toyota Production System

MAJOR COMPETITORS OF TOYOTA

PLACE

Toyota started their hybrid technology in Japan

After the high success in Japan, Toyota moved their Prius to the US market where it has been very successful.

The first introduction of the Prius was in 2002 and since then Toyota has come out with the Highlander and Lexus RX 400H and next year they will release the Camry.

Most Toyota hybrid vehicles are available for purchase nationwide

Toyota Prius is offered nationwide but there are waiting lists for the vehicles

Lexus first hybrid RX400H is available for purchase nationwide

Toyota Highlander has limited availability as of right now, consumers can order the vehicle but they are not available on sales

floors.

PROMOTION Toyota Overall Promotion

The main promotion for Toyota hybrids is the tax deduction given to consumers who purchase hybrid vehicles

Toyota Promotions

Bluetooth technology

Option with in the Prius that if the consumer has a Bluetooth mobile phone, that allows customers with onboard navigation system and hands free phone capabilities with the vehicle

Land Speed

Aiming for the younger market by having a race car that reached the speed of 130.794 mph

PRODUCT

The Toyota Prius and Highlander are both in transition from

the introduction stage to the growth stage of the product life

cycle

Limited number of products are available through few

competitors

Other competitors are becoming attracted to the market and

will have similar offerings soon

They are focused on building brand and customer loyalty.

The Toyota Sienna and Camry are still in development but

will be ready for the introduction stage soon

They are focused on promoting these products to create

awareness

PRICE Toyota is offering high quality at a relatively low price in

order to penetrate the market

The Prius is priced the same as other five seater hybrids in its class but gets much better gas mileage

Same price as the Honda Insight but holds three more people

A hybrid Highlander SUV costs $5,000 more than the conventional Highlander

It delivers more horsepower than the conventional Highlander (30 horsepower)

It gets 10 more miles to the gallon

It greatly reduces the tail pipe emissions

SWOT ANALYSIS

STRENGTHS

Dedication to R&D

High market share

High durability

Easy availability of spare parts

Comfortable ride

High good will

Good resale value

Low fuel consumption

WEAKNESSES

Over dependency on Japan & U.S. Market..

Risk that R&D outlays will not generate new competitive advantages.

Poor organisational structure

The cars steering is a bit light and driver can not feel the road

The body of the car is too heavy.

The rims and tyres of the car are not impressive.

OPPORTUNITIES

Expanding HEV line in U.S. – gain more

market share

Demand growth in China and India

Modifying designs that are proven for other

countries

Consolidation through acquisition –

European foothold

Develop new variety and style

THREATS Supply chain costs tied to oil (materials,

production and shipping)

Foreign exchange fluctuations

Growth of competitor.

VALUE CHAIN

INBOUND LOGISTICS

Primary activities logistics toyota in

obtaining-Raw material

They do not process their own, or create

your on, they use a third party.

LIKE- leather seats, stearing, wheel, tyre to

local companies.

TOYOTA PRODUCTION SYSTEM(TPS)

The production system developed by toyota motor corporation to provide best quality, lowest cost, and shortest lead time through the eliminating of waste.

The toyota production system was established on two concepts:

JIDOKA: Automation with a human touch, means that when the problem occurs, the equipment stops immediately, preventing defective product from being produced.

JUST-IN-TIME: In which each process produces only what is needed by the next process in a continuous flow.

OUTBOUND LOGISTICS

Outbound logistics means Collecting, storing

& distribution the product to buyers.

Toyota cars directly sent to toyota dealer, its

for local.

If sending more distance or export its

delivery using container.

MARKETING & SALES

Its provide means & incentives which allow buyers to purchase the product.

Corporate Environmental Awareness: In 2003, Toyota embarked on its first pan-European corporate advertising campaign conducted by its Corporate Affairs department.

In order to better communicate its environmental principals and activities – and support the "Aim: Zero Emissions" message – Toyota created an Environmental Brochure in early 2004. The Environmental Brochure was designed and published to target the general public, presenting Toyota’s basic environmental messages with a clear focus on the environmental technologies that are beneficial to consumers.

C0NTINUED...

1-Brand Environmental

Awareness:

a) Toyota vehicles stand at the

Brussels International Airport.

b) Toyota vehicles advertisement on

the front of Toyota Motor Europe’s

head office in Brussels, Belgium.

CONTINUED,,,,Survey: Customer Satisfaction.

Greening the Supply Chain: Toyota therefore enlists the participation of those suppliers in the effort to provide environmentally friendly parts and materials to its customers. To do this, Toyota developed a set of Environmental Purchasing Guidelines, which the company encourages suppliers to follow.

Remanufactured Parts.

SMART Repairs.

Chemicals & Oils.

SERVICE

Service means it enhance or maintain the

value of the product.

PARAMETERS- Quality of service, type of

problem, service user friendly, service

advisor, service delivery.

TOYOTA PHILOSOPHY

Selling price-cost=profit

Customer decide the selling price

Profit is what remains after subtracting the cost

from it.

The main way to increase profit is to reduce

cost.

SUPPORTIVE ACTIVITIES

FIRM INFRASTRUCTURE

Modern and sophisticated

Robotic system used with human as the

operator

HUMAN RESOURCE MANAGEMENT

Toyota has approximately 400000 employees

world wide

In placement of an employee, the co. hold

the test continued with the training according

to its disciplines and expertise

TECHNOLOGY

4 major technology used by Toyota is

concerned with safety of its costumers....

1. Pre-crash safety with collision-avoidence

assists

2. Adaptive driving beam

3. Pop up bonnet

4. Emergency response technology.

PROCUREMENT

1. Acquire our supplier to provide quality item

at low price and in timely manner.

2. We co-operate with them to promote

environmental preservation and meet the

other demand of our society.

3. Long term view toward our relationship with

supplier based on fair business practices..

FINANCIAL INFORMATION

TOYOTA

Revenue - $172,749 million

Gross Profit - $43,517 million

Operating Income - $15,571 million

Total Net Income - $10,907 million

COMPETITORS

Annual Revenue

Ford - $171,652 million

General Motors - $193,517

Honda - $80,705

GROWTH

1-year sales growth: 5.6%

1-year net income growth: 0.8%

1-year employee growth: 0.1%

millions of Japanese Yens'

As of:

Mar 31

2010

JPY

Mar 31

2011

JPY

Mar 31

2012

JPY

Mar 31

2013

JPY

4 Year

Trend

Revenues 17,724,729.0 17,820,520.0 17,511,916.0 20,914,150.0

TOTAL REVENUES 18,950,973.0 18,993,688.0 18,583,653.0 22,064,192.0

Cost of Goods Sold 15,971,496.0 15,985,783.0 15,795,918.0 18,010,569.0

GROSS PROFIT 2,267,176.0 2,378,362.0 2,195,089.0 3,423,197.0

Selling General & Admin

Expenses, Total2,119,660.0 1,910,083.0 1,839,462.0 2,012,309.0

OTHER OPERATING

EXPENSES, TOTAL2,119,660.0 1,910,083.0 1,839,462.0 2,012,309.0

OPERATING INCOME 147,516.0 468,279.0 355,627.0 1,410,888.0

Interest Expense -33,409.0 -29,318.0 -22,922.0 -22,967.0

Interest and Investment Income 78,224.0 90,771.0 99,865.0 98,673.0

Other Non-Operating Expenses,

Total147,031.0 256,489.0 251,835.0 240,678.0

Other Non-Operating Income

(Expenses)33,372.0 27,168.0 17,029.0 3,608.0

EBT, INCLUDING UNUSUAL ITEMS 336,876.0 778,306.0 630,574.0 1,635,168.0

Income Tax Expense 92,664.0 312,821.0 262,272.0 551,686.0

Minority Interest in Earnings -34,756.0 -57,302.0 -84,743.0 -121,319.0

Earnings from Continuing Operations 244,212.0 465,485.0 368,302.0 1,083,482.0

NET INCOME 209,456.0 408,183.0 283,559.0 962,163.0

NET INCOME TO COMMON

INCLUDING EXTRA ITEMS209,456.0 408,183.0 283,559.0 962,163.0

NET INCOME TO COMMON

EXCLUDING EXTRA ITEMS209,456.0 408,183.0 283,559.0 962,163.0

Data

Hide charts

Currency in

Millions of

Japanese YensAs of:

Mar 31

2010

JPY

Mar 31

2011

JPY

Mar 31

2012

JPY

Mar 31

2013

JPY

4 Year

Trend

Assets

Cash and Equivalents 1,865,746.0 1,300,553.0 1,104,636.0 1,107,409.0

Short-Term Investments 2,185,889.0 1,240,429.0 1,095,927.0 1,311,147.0

Trading Asset Securities -- 154,887.0 69,149.0 38,500.0

TOTAL CASH AND

SHORT TERM

INVESTMENTS

4,051,635.0 2,695,869.0 2,269,712.0 2,457,056.0

Accounts Receivable 1,886,273.0 1,449,151.0 1,999,827.0 1,971,659.0

Other Receivables 360,379.0 306,201.0 408,547.0 432,693.0

Inventory 1,422,373.0 1,304,242.0 1,622,282.0 1,715,786.0

Prepaid Expenses 511,284.0 359,948.0 437,698.0 481,194.0

Finance Division Loans

and Leases, Current4,209,496.0 4,136,805.0 4,114,897.0 5,117,660.0

LIABILITIES & EQUITY

Accounts Payable 1,956,505.0 1,503,072.0 2,242,583.0 2,113,778.0

Accrued Expenses 1,735,930.0 1,008,864.0 988,689.0 1,182,514.0

Short-Term Borrowings 160,735.0 192,309.0 410,276.0 227,829.0

Current Portion of Long-

Term Debt/Capital

Lease

249,416.0 303,369.0 334,492.0 205,866.0

Finance Division Debt,

Current5,087,846.0 5,528,179.0 5,258,899.0 6,399,948.0

Finance Division Other

Current Liabilities-- -- 10,434.0 15,331.0

Other Current Liabilities 1,342,395.0 2,127,477.0 2,397,904.0 2,603,061.0

TOTAL CURRENT

LIABILITIES10,686,214.0 10,790,990.0 11,781,574.0 12,912,520.0

Long-Term Debt 955,060.0 913,737.0 608,134.0 583,538.0

Minority Interest 570,720.0 587,653.0 516,217.0 624,821.0

Finance Division Debt,

Non-Current6,060,349.0 5,669,456.0 5,555,112.0 6,876,849.0

Finance Division Other

Non-Current Liabilities-- 7,104.0 8,191.0 11,752.0

http://www.google.com/finance?fstype=ii&q=NYSE:TM

In Millions of JPY (except for

per share items)

12 months ending 2013-03-

31

12 months ending 2012-03-

31 12 months ending 2011-03-31

12 months ending 2010-03-

31

Net Income/Starting Line 1,083,482.00 368,302.00 465,485.00 244,212.00

Depreciation/Depletion 1,105,109.00 1,067,830.00 1,175,573.00 1,414,569.00

Amortization - - - -

Deferred Taxes - 6,395.00 85,710.00 25,537.00

Non-Cash Items -190,256.00 27,152.00 -6,777.00 332,608.00

Changes in Working Capital 452,981.00 -17,244.00 304,018.00 541,604.00

Cash from Operating

Activities 2,451,316.00 1,452,435.00 2,024,009.00 2,558,530.00

Capital Expenditures -1,938,974.00 -1,532,082.00 -1,691,191.00 -1,437,601.00

Other Investing Cash Flow

Items, Total -1,088,338.00 89,424.00 -425,153.00 -1,412,583.00

Cash from Investing Activities -3,027,312.00 -1,442,658.00 -2,116,344.00 -2,850,184.00

Financing Cash Flow Items - - - -

Total Cash Dividends Paid -190,008.00 -156,785.00 -141,120.00 -172,476.00

Issuance (Retirement) of

Stock, Net -43,098.00 -37,448.00 -28,617.00 -10,251.00

Issuance (Retirement) of

Debt, Net 710,348.00 -161,114.00 604,064.00 -95,255.00

Cash from Financing

Activities 477,242.00 -355,347.00 434,327.00 -277,982.00

Foreign Exchange Effects 137,851.00 -55,939.00 -127,029.00 -8,898.00

Net Change in Cash 39,097.00 -401,509.00 214,963.00 -578,534.00

Cash Interest Paid,

COMPETITIVE ADVANTAGES

Cost leadership scm in Toyota vendor

manufacture dealer customer

Local part receiving pc(panama city) store

production dock dealer.

Internal and vendor local part stock reduction

using kanban cycle

Use “pull” system to avoid over production

Best mini MPV (toya avanza)

SUGGESTED STRATEGY

Developed and produced multi product line

for different income class.

Design less fuel consuming engines.

Developing new brands with unique features.

RECOMMENDATION

Invest in other product line

Make more hybrid car.

QUESTIONS FOR AUDIENCE

Q1-When Toyota motors

launched his first car?

Answer- In 1947

Q2- Full form of TPS?

Answer- Toyota Production

System

Q3- What is the two concept of

Toyota Production System?

Answer- JIDOKA & JIT