Background part: TOYOTA-Standing on the shoulders of giants to change the world From the first Toyota in 1935 to today's world-leading sales, Toyota has become the preeminent leader in the automotive industry. Decades of historical turmoil and changes in world events have not affected Toyota's development. On the contrary, Toyota has undergone several significant changes over the years that have shaped the company into the powerhouse it is today. constantly improving and focus on details make it developed more excellent performance. At beginning (1927-1934), the market share of Toyota in Japan is only around 3%. On the contrary, American automobile companies in covered Japanese automobile demand with 92% in same period. It looks like Toyota is having a hard time competing with American companies, but after 1975 Toyota already had more than 60% market share and always stable above 50 until 2011. The changes of management method contribute to soar of Toyota. Specifically, Toyota created their own product system: TPS, which emphasize maximum economic efficiency with minimal resources and eliminate waste. This lean production principle became the cornerstone of Toyota's success. 4 500 000 80 4 000 000 70 3 500 000 60 3 000 000 50 2 500 000 40 2 000 000 30 1 500 000 1 000 000 20 500 000 10 0 0 passnger cards market share To achieve TPS manufacture, Toyota combined different criteria for specific company. Standardized production processes and adaptive standard systems make Toyota production much more efficient. Standardized production processes and adaptive standard systems have made Toyota production much more efficient. It even caused overproduction, which was not solved until the Korean War in 1950 when Toyota began supplying large numbers of cars to the USA. Moreover, Edwards and Joseph came to Toyota in 1950 and 1954 respectively, two exceptional management gurus share their wisdom and add grace to Toyota's management. Toyota developed three steps to complete their management: Firstly, building the Quality Management System, which improved product quality. Secondly, Using the Pareto principal in control quality. Thirdly, carrying out non-quality cost study. It breakdown of the various components of non-quality costs such as planning, control, etc. with quantitative criteria. And at around 1959, Toyota introduced a stock gestation system, Shingo created the SMED method and the “Non-Stock Production” system named “kanban”. The mass production and transfer of parts became a bottleneck, the various parts were unevenly occupied and the processes were difficult to link up. In 1948 Toyota's capital chain broke due to overproduction and product stagnation. This prompted production supervisors to focus on local optimization and global thinking, and to start thinking about how to make the processes work together perfectly. Kanban like an empty shelf, it's easy to visually track the flow of products and find out where the bottlenecks are, where the gaps are and whether the production process is well connected. And no matter which part of the board you pick up, it will tell you exactly what has been done to that part. Change part: • Toyota Visionary Management: The Tree Metaphor (2011): change target 2011 • Emphasis on innovation and collaboration (2013): change preservation (not sure) 2013 • New production principles (2015): change capability (not sure) 2015 2017 • More agile management style (2017): change style • Toyota’s global architecture and new technology (2018): change level 2018 • Toyota’s development goal changes to sustainable (2019): change path 2019 2020 2021 • Focus on Diversity and Inclusion (2020): change diversity • Acceleration of Electrification Efforts (2021) (not sure) Some part I wrote “not sure” means I am not sure it classify in CKM Toyota Visionary Management: The Tree Metaphor (2011): change target Promotion of Sustainable Mobility: In 2011, Toyota unveiled its Global Vision 2020, which included a commitment to sustainability and a focus on developing environmentally friendly vehicles, such as hybrids and electric cars. This has led to a significant shift in Toyota's product strategy and a greater emphasis on sustainable mobility. https://www.toyotaglobal.com/pages/contents/company/message_from_president/president110309.pdf page 15-18 Emphasis on innovation and collaboration (2013): change preservation Toyota focused on encouraging innovation and collaboration within its organization. The company established cross-functional teams and promoted a culture of continuous improvement, encouraging employees to share ideas and work together to solve problems. Additionally, Toyota increased its investment in research and development, with a particular focus on emerging technologies like electric and hybrid vehicles. https://jopeninnovation.springeropen.com/articles/10.1186/s40852-016-0050-z New production principles (2015): change capability Toyota began its TNGA initiatives with the development of the fourth-generation Prius (launched in Japan in December 2015), leveraging the fruits of these initiatives to create other models including the medium-sized "Corolla," the large "Crown," "Lexus LS," and the compact "Yaris." These initiatives were applied to 41 models as of March 2022, and approximately 70% of global sales have been switched to new models. While all these models share TNGA components, the character of each is completely distinct, as is immediately apparent in terms of design and ride experience. The in-house companies have created these cars to suit different customer preferences so that every customer can find a car they love. https://global.toyota/pages/global_toyota/ir/library/annual/2021_001_integrated_en.pdf start at page 10 TNGA More agile management style (2017): change style Agile Transformation: In 2017, Toyota announced that it would be transforming its management practices to be more agile and responsive to customer needs. This has involved a shift away from traditional hierarchical structures to a more decentralized, team-based approach. https://www.agilealliance.org/resources/experience-reports/agile-road-trip-lessons-from-a-coach- at-toyota/ Toyota’s global architecture and new technology (2018): change level Embracing Digital Technologies: In 2013, Toyota launched a new global strategy called Toyota New Global Architecture (TNGA), which aims to standardize vehicle platforms and components across its product line. TNGA also includes a focus on digitalization and the integration of new technologies such as artificial intelligence (AI) and the Internet of Things (IoT) into its products and services. https://www.mobilityengineeringtech.com/component/content/article/ae/stories/news/45165 Toyota’s development goal changes to sustainable (2019): change path As the automotive industry faces once-in-a-century dramatic changes, it is a requirement to make ever quicker decisions and be ever more efficient with work. Meanwhile, stakeholder levels of expectation regarding non-financial issues, centered on the Environment (E), Society (S), and Governance (G), are also increasing. To respond to these changes, Toyota established its Sustainability Meeting in 2018. Chaired by the Chief Risk Officer, members include outside directors and outside auditors. The Meeting discusses non-financial issues from a range of angles, and confirms management directions. (this report is important since it is include global vision(which is mentioned in part one and sustainable goal): ESG(2019):https://www.toyota.ie/content/dam/toyota/nmsc/glen/misc/Sustainability%20Data%20 Book%202019_tcm-10-1625598.pdf Focus on Diversity and Inclusion (2020): change diversity In 2020, Toyota announced a new global Diversity & Inclusion (D&I) Action Plan, which aims to promote greater diversity and inclusivity within the company. This includes initiatives to increase the number of women in leadership roles and promote greater cultural awareness among employees. https://www.unleash.ai/diversity-equity-inclusion/toyota-diversity-accelerates-innovation/ Acceleration of Electrification Efforts (2021) In 2021, Toyota announced that it would be accelerating its electrification efforts and aiming for all of its vehicles to be electrified by 2030. This includes a focus on developing new battery technologies and increasing production of hybrid and electric vehicles. https://global.toyota/en/newsroom/corporate/36254662.html
