As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries. TKM's growth since inception can be attributed to one simple, yet important aspect of its business philosophy -"Customer First". While managing growth, TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs.
TKM firmly believes that the success of this venture depends on providing high quality products and services to all valued customers through the efforts of its team members.
TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together" philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims to further contribute to progress in the Indian automotive industry, realise greater employment opportunities for local citizens, improve the quality of life of the team members and promote robust economic activity in India.
To identify the organizational culture and structure of Toyota Kirloskar Motor, Bidadi To study the various departments and their functions. To study about the various products and services offered by the company. To study the day to day activities of Toyota Kirloskar Motor. To make a SWOT analysis of this organization to understand and suggest measures to overcome the weaknesses and threats within the scope of this study.
To suggest marketing strategies, in order to increase dealer sales as well as promote Toyota as a Brand in Rural areas under TKMs Going Rural campaign
Useful for academic purpose and further reference. Provides information about the functioning of the Automobile industry in India.
LIMITATIONS
Time was a limiting factor during the study. Some core data could not be collected due to confidentiality policies of the company.
INDUSTRY PROFILE
The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. In 2015 estimated rate of growth of India auto industry is going to be 10 percent. Auto industry in India has been hit hard by ongoing global financial recession. Sales figures of India automobile industry for December 2008 have shown devastating after effects of global financial slowdown. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide. In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars. The sustainable transport movement focuses on solutions to these problems. In 2008, with rapidly rising oil prices, industries such as the automotive industry are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits.
The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of the US's fifty one light vehicle plants are projected to permanently close in the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade.
Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant General Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.
COMPANY PROFILE
HISTORY OF TOYOTA
Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first power loom and in the process revolutionised the country's textile industry. January 1918 saw him create the Toyoda Spinning and Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi fulfilled his lifelong dream of building an automatic loom in 1924. The establishment of Toyoda Automatic Loom Works followed in 1926.
Kiichiro was also an innovator, and the visits he made to Europe and the USA in the 1920s introduced him to the automotive industry. With the 100,000 that Sakichi Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor Corporation, which was established in 1937. One of the greatest legacies left by Kiichiro Toyoda, apart from TMC itself, is the Toyota Production System (TPS) and Kiichiro's "just- in-time" (JIT) philosophy -producing only precise quantities of already ordered items with the absolute minimum of waste viz. a key factor in the system's development. Progressively, the Toyota Production System began to be adopted by the automotive industry across the world. Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the largest vehicle manufacturer in Japan with over 40% market share. Toyota began to make inroads into foreign markets in the late 1950s. The first Crown models arrived in the USA in 1957, and by 1965, with models such as the Corolla, Toyota began to build its reputation and sales to rival those of domestic producers. The first Toyota imported into Europe was via Denmark in 1963. Toyota has continued to grow in Europe's sophisticated and complex market, and in 2000 the company delivered its ten millionth cars to a customer in Germany. In fact, growth is currently one of the main words in Toyota's European vocabulary .Toyota is number one for customer satisfaction in the majority of European countries and has built an excellent reputation across Europe for reliability and customer service. This enviable reputation, along with the support of a network of
more than 25 distributors and 3,500 sales outlets, are important factors in supporting Toyota's European sales growth in the coming years. In less than 70 years, Toyota Motor has gone from being a tiny spin-off of a textile loom maker to the world's biggest automaker, guided by a culture of "kaizen", or continuous improvement and a tireless effort to eliminate waste.
We see this corporate tradition continue through decades of its existence. Since the company manufactured its first passenger vehicle in 1936, Toyota has continuously pursued the number one position for total customer satisfaction in all areas, ranging from manufacturing and products to sales and service. Toyota exported its first Japanese-made passenger car to the United States in 1957. Since then, Toyota has steadily expanded its global presence with the establishment of overseas bases.
Toyota's Lexus and Toyota branded vehicles rank annually among the world's highest quality cars in third party surveys of customer satisfaction. Using such success as a springboard, Toyota is pursuing a policy of sustained development and hopes to use innovation and strong R & D to create cars that are greener, safer and more fun to drive. As a global company, Toyota realizes that local commitment is a prerequisite to success on a worldwide scale. Toyota's activities are highly appreciated around the world, a result of the company's devotion to customer-oriented activities and social contributions in every market it operates.
transformers, electric motors, diesel engine, compressor, machine tools etc. it also has its presence in industrial casting and pollution control equipment manufacturing. The group is mainly concentrated its manufacturing facilities in and around Karnataka and Maharashtra
Today, the Kirloskar Group is a conglomerate with interests across a diverse range of industries. It is still spurred by the simple yet profound ethic born with Laxmanrao Kirloskar that where there is will there are many ways.
Toyota Kirloskar Motor Pvt. Ltd TKM is a joint venture between TMC, Japan and Kirloskar Group, India. As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries. TKM's growth since inception can be attributed to one simple, yet important aspect of its business philosophy -" Customer First". While managing growth, TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs.
TKM firmly believes that the success of this venture depends on providing high quality products
and services to all valued customers through the efforts of its team members. TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together" philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims to further contribute to progress in the Indian automotive industry, realise greater employment opportunities for local citizens, improve the quality of life of the team members and promote robust economic activity in India. All Toyota employees are expected to embody these values in their daily work, including environmental protection activities. To "respect" the environment, we go to the source to identify and analyse problems ("Genchi Genbutsu"), move forward to "challenge" conventional ideas and old habits, to improve further ("kaizen") through "teamwork."
The framework provided by The Toyota Way enables our company to respond to, among other things, the environmental challenges at various stages of the life-cycle of a vehicle. These include greenhouse gas emissions, waste reduction, increased recycling and the banning of hazardous substance use in parts and components. These challenges will have inevitable consequences for Toyota's organisation and employees, and we must balance them with our desire for future growth. In 1992, the Toyota Guiding Principles were established in direct response to the international initiatives agreed to at the Rio 'Earth Summit.' This summit focussed on the potential for a clash between trade and environmental rules, and resulted in a statement of principles about forest management, conservation and sustainable development.
The Toyota Guiding Principles are a cornerstone of our corporate management philosophy. These principles were updated in 1997, to ensure they continue to provide Toyota with a clear path towards achieving sustainable development.
These principles have been explored and developed in Toyota's Global Vision 2015, adopted in April 2008, which proposes a series of long-term policies on the theme of "Innovation into the Future." Toyota's Global Vision 2015 guides management in its response to long-term social changes, combining consideration for the environment, the benefit to our customers of value-added
products and the encouragement of our employees through shared prosperity and social involvement.
Based on the Guiding Principles, which codify Toyota's business spirit, the Toyota Earth Charter (adopted in 1992 and revised in 1997) embodies a comprehensive approach to global environmental issues. It outlines Toyota's basic policy and action guidelines towards effective environmental management and improvements. The Toyota Earth Charter underlines a commitment to environmental excellence, not only through broad principles, but in concrete examples of what can be done through action guidelines. In connection with the Toyota Guiding Principles and the Toyota Earth Charter, a European Environmental Policy was developed as a means of linking principles, goals, targets and action plans with management structures and systems. TKM firmly believes that employees are the main source of strength for the organisation. The human resources management in Toyota seeks to create a corporate culture where values such as "Continuous Improvement" and "Respect for People" are fully reflected in all actual corporate and individual activities. The company takes maximum care to ensure stability of employment and strives to improve working conditions.
To develop human resources and improve the technical skills of its employees, TKM's young team members are regularly sent to Japan, Indonesia and Taiwan for training programs. More than 425 team members have benefited from such programs at various Toyota plants worldwide. TKM also believes in continuously improving its products and practices. Every team member is encouraged to give suggestions to improve the product, efficiency of processes or working conditions. They are also appropriately rewarded for the same. Thus TKM seeks to progress by empowering its employees.
Toyota Kirloskar motor (TKM) has the proud heritage of both these fine establishments. The company, according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of Putting Customer First. At present the Camry, Corolla, Innova and Prado are the successful cars of Toyota on Indian
roads. The Corolla and Innova are produced at TKM whereas Toyota Camry and Land Cruiser Prado are imported as complete built units.
Also, TKM is opened a second new plant in 2oo8 marking the beginning of a second era for TKM. It is poised to be not just a plant, but also a commitment to society and the earth, aiming to create a new motorization future for India. Toyotas new plant is playing a significant role in promoting employment and technology transfer in India.
TOYOTA KIRLOSKAR MOTOR PVT.LTD (TKM) PLOT NO.1, BIDADI INDUSTRIAL AREA, BIDADI RAMANAGAR DISTRICT PIN-562 109, KARNATAKA INDIA TEL:+91-80-6629 2929 WWW.TOYOTABHARAT.COM
BANGALORE UB CITY OFFICE (Sales and marketing div) 10TH FLOOR, CANBERRA BLOCK UB CITY, NO.24 VITTAL MALYA ROAD BANGALORE -560 001 KARNATAKA INDIA
ORGANISATIONAL PERFORMANCE:
COMPANY MARUTHI SUZUKI HYUNDAI TATA MAH & MAH T0YOTA GENERAL MOTORS FORD VOLKS WAGEN HONDA SKODA NISSAN FIAT BMW
MKT SHARE 37.1 16.1 11.7 11.6 6.4 4.3 3.7 2.9 1.8 1.4 0.9 0.8 0.5
MISSION The Mission of Toyota Kirloskar Motor is to: 1. 2. Design, manufacture and market automobile in India and in overseas market, to maintain a high quality, to meet the expectations of the customers, always delight the customer by exceeding the quality level by providing goods and effective after sale service. 3. Perceive Kizen, maintaining flexible organisation, working schedule and staffing plan which enables the company to respond to fluctuations of production volumes and increase the productivity.
4. Providing a conducive and safe working environment where all team members can work with safety with a sense of security. 5. Provide the highest possible value addition to customers, team members, investors and community at large.
Toyota hopes that the 21st century will be truly prosperous for society, and aims to grow as a company together with its stakeholders, including customers, shareholders, business partners, and employees, through making things and making automobiles, while seeking harmony with people, society, the global environment and the world economy. In order to put these management principles into practice, the "Guiding Principles at Toyota Motor Corporation" were established as the fundamental management policy (see below). These principles were adopted in 1992 to codify the business spirit handed down since the company's foundation, and revised in 1997 to add the stipulation of legal compliance.
THE TOYODA PERCEPTS: 1. Be contributive to the development and the welfare of the country by working together, regardless of position, in faithfully fulfilling your duties. 2. Be ahead of the times through endless creativity, inquisitiveness and pursuit of improvement. 3. Be practical and avoid frivolity.
4. Be kind and generous; strive to create a warm, home like atmosphere.
5. Be reverent, and show gratitude for things great and small in thought and deed.
The Toyoda Precepts, passed on from the time of Toyota's foundation up to the present day, have acted as the core of Toyota management. The precepts capture the thinking of the founder of the Toyota Group, Sakichi Toyoda, and have become the basis of the Guiding Principles at Toyota Motor Corporation. Initially this did not have a definite shape. However, with the growth of the scope of the company, the need arose for the principles to be codified so that they could be propagated among employees. Risaburo Toyoda and Kiichiro Toyoda, in the pioneer days of the company, gathered together the teachings of Sakichi Toyoda and published them in the form of the Toyoda Precepts on October 30, 1935, the fifth anniversary of his death.
Compliance -
Toyota defines compliance as "Comply with ethics, laws and internal rules/policies in engaging in business" in other words, not acts contrary to society's rules, nor carries out actions that could be criticized by society. Toyota believes that to be a good corporate citizen, it is essential that compliance permeates the entire company.
The Guiding Principles at Toyota, which are based on the Toyoda Precepts, clearly announce Toyota's management concepts. The first clause of them is "Honour the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world" establishing compliance as one of Toyota's management principles. Executive management takes every opportunity, e.g. the New Year's greeting each year, to disseminate the management principles. And throughout the year, Toyota works to continually advance its management principles through a variety of education and training programs and on-the-job training.
SOCIAL CONTRIBUTION
Toyota Kirloskar has always striven to go beyond the business of just making great cars .In fact Toyota has been known the world over for having taken issues pertaining to care for people, the environment and the society very seriously and this culture is deeply rooted in the culture of Toyota. Given below are a few significant social contribution activities undertaken by Toyota Kirloskar Motor:
Educational Support
Toyota understands the important role that education plays in shaping society. Hence, it has taken many steps to promote education among the backward sections of society and spread literacy. In this regard Tkm has reconstructed a residential school at Bidadi that houses close to a hundred underprivileged students, moreover it has also partnered with local schools in and around its plant
at Bidadi especially in Ramanagara district in contributing books, bags, stationary and even computers for school children. Since 2003 TKM came with Toyota Technical Training Institute (TTTI) of providing technical education to 64 poor students every year in their premises after their SSLC education and provide the job opportunities to them after their education and training.
Safety Initiatives
Toyota has successfully pioneered an interactive learning programme on traffic safety for young school children called the Toyota Safety Education Programme or TSEP. The primary purpose of the initiative was to educate and spread awareness on basic road safety and awareness among young school children throughout the numerous schools in Bangalore.
Disaster Relief
Toyota Kirloskar Motors has contributed generously in the past to the victims of natural calamities .It had contributed financial aid to the tune of twenty five lakhs to the Prime ministers relief fund towards the victims of the Tsunami disaster and it also played a pivotal role in the distribution of food, water and clothing in the earthquake hit areas of Gujarat and recently they supported financial support when Tsunami hit Japan in 2011.
children again through fun yet innovative learning methods such as painting and quiz competitions .
Dealer Profile
RADHA KRISHNA TOYOTA AUTOMOBILE (PVT) LTD
Radha Krishna Toyota Automobiles was established in 2008. Radha Krishna Toyota automobiles were the second authorized dealers of Toyota. Commanding Presence:
Radha Krishna Toyota Automobiles as a centralized air-conditioned showroom of Toyota automotives its kind in Hyderabad, spread gracefully and decorated elegantly over an impressive 8100 sq.ft at Hyderabad, Being equipped with affable front office staff and adept professional
The interiors are aimed at making you feel completely at ease, In luxury. Because for us the customer is king, one who deserves a regal offering. The setting is apt for times when you need to switch into a relaxed state of mind. Technology to Stay Ahead:
We are equipped with the latest technological advancement in the industry, in order to give the best of services when it matters. Not just to be part of, But to build the future, is our motto.
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Ours is one of the few service centers to be equipped with a fully-fledged customer-waiting lounge. A part from a television and pool table, it had a wed kiosk to keep u connected all the time. Service with Commitment:
Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure consistency in performance each time, without fail. Attention to Details:
We provide genius spare parts and accessories to ensure exceptional performance. Every single aspect related to your vehicle is taken care of at our premises. Dealing Made Convenient:
It is a part of our commitment policy to give advantage to the customer at every juncture. We offer assistance of every kind at our premises itself, which makes it a one stop facility. Expert Guidance at Every Step:
Our sales team gives utmost priority to your satisfaction. When you need help to make the right choice, it is ensured that the result is beyond your expectations. Thus making it a point that you get the best in both luxury and comfort always.
4.2 Models:
Toyota been launching various type of MUVs and cars from the year of 1933,keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale value. These from a
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formidable force that gives our customers the pride and the joy of value forever. What drives Toyota is
Since 1933, when Toyota first began manufacturing MUVs & LCVs, M&M have been engaged in a single-minded endeavor to bring you cars that only state-of-the-art, but are also some for the most environment-friendly vehicles in this world-a reflection of our commitment and care, for better environment.
At the heart of every Toyota is a unique engineering and an optimal mix of power and economy. All this is supported by Toyota Quality Revolution wide dealership network and automated workshop that provide excellent after sale service The company has constantly exploring new opportunity to define the shape to tomorrowsdriving technology. 4.3 Promotional Activities: The promotional activities adopted by United Automobiles are 1. Test Driving 2. Free Driving 3. Hoarding 4. Discounts 5. Advertisement in Newspaper and magazines 6. Gift Schemes 7. Free Services
8. Mileage Contents
Promotional expenses have been borne by both United Automobiles and M&M, shares in
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advertisement cost. Service Offered: Six Service and paid service after sale of Cars. Free checkups campaigns Finance through bank Demonstration for new products Acceptance of warranty claims Working Time in United Automobiles:
Working hours in United Automobiles are 12 hours per day starting from 9:30 am to 9:30pm with one-hour break for lunch and 15 minutes for evening tea and coffee. Non automotive activities a) aerospace b) philanthropy c) higher education d) robotics e) finance f) agricultural biotechnology g) finance information h) government bailouts i) production and sales numbers j) others
manufacturer various types of SUVS, Trucks, Hybrids, Cars Allion Alphard Auris aurion Avalon Avanza Avensis Aygo Bb Belta Blade Camry Century Corolla Crown Dyna Estima FJ cruser fortuner Harrier highlander Hilux Innova Land cruiser prado
Prius
Wish
Given below is the list of awards and recognition that Toyota has received in the past
1. Business Standard Motoring : Import Car Of The Year Award - Camry 2007
6. NDTV - Car Awards: Best MPV Of The Year Toyota Innova 2006
9. CNBC Auto car Awards: Technologically Advanced Car - Land Cruiser Prado 2005
10. Business Standard Motoring : Best Executive Car 2004 & 2005 (Corolla) Best MUV 2005 (Innova) 11. TNS Award Total Customer Satisfaction Study: Best Executive Car 2004 & 2005 (Corolla) Best MUV 2005 (Innova) 12. Business Standard Motoring: Best Executive Car 2004 & 2005 (Corolla) Best MUV 2005 (Innova) 13. TNS Award Total Customer Satisfaction Study : Qualis, Corolla & Camry 2004
4.4
TSM basic certified in very first year of operations. Ranked 14 in CS800+ first phase with 779 points. EM certification successfully completed in 2009. 4.5 GOALS of Radha Group 2009 Sustaining the customer retention by 95%.
850 in JDP CSI survey in 2
nd
phase of CS 800+.
Three star dealer award for 2009. Improvement of skills in technical information.
Reduction of warranty error rate to 0%.
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Achievements
Bagged bulk order of 50 innovas from M/S easy cabs.
Another 50 vehicles in the pipe line. Delivered prado during the month.
Ranked 1
st
4.7 Goals for RKT service Target of 15000 BPUs, 4.2 cores part of f take & 52000 liters of TGMO. TSM advanced (EM &MRS) certification. Sustaining the customer retention by 95%. 850 in JDP CSI survey. Improvement of skills in technical information.
Aspiring to be the best dealer in radha group and also in TKM. Improving the VAS contribution to 25% in labor revenue leads to profitability. 4.8 Achievements
Increased CPUS from 25 to 65 per day with an overall growth of 343% when
compared to YTM of 2008 to that of 2009 (2008 YTM CPUS 1586:2009 YTM CPUS:5430). between 2008 to that of 2009.
Increased the overall revenue of labor earnings for both GS&BP by 312%
when compared to YTM of 2008 vs. 2009. Increased the technicians certification from 3 to 11 Increased the appointments rate from 10% to 55%.
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In active to active
Strengthened the service marketing team and divided them in to several groups so that, to take care of different segment customers. Increased the retention rates. Started reaching the in active customers through knock- the door campaign at their door steps by utilizing the service marketing team. Promotion of smiles packages to inactive customers & converting them to active ones. Increased MSV camps to the interiors of the territory. Creating the awareness about the smile packages to fleet operators has increased the opportunities of increased 5k service visits of the fleet vehicles. Continuously following up with the inactive customers through tale & Direct marketing strategies, identifying their concerns resolving them has increased the opportunities of converting the inactive customers to active ones. Selling the Service Parts of Quality yes model vehicles to the Local Garages has increased the confidence level of the customers on the Toyota Products
PRODUCT PROFILE
Toyota Kirloskar Motors is an automobile manufacturer engaged in the production of technologically advanced quality automobiles. The quest for innovation is the foundation for Toyota's new technology concepts. Ever since the company manufactured its first passenger vehicle in 1936, Toyota has continuously pursued the number one position for total customer satisfaction in all areas, ranging from manufacturing and products to sales and service. Toyota is today pursuing a policy of sustained development and aims to use innovation and strong R & D to create cars that are greener, safer and more fun to drive.
Engine technology is one of Toyota's greatest assets. Toyota's award-winning engine range reflects the high design and quality standards set by its engineers. Toyota engines are developed for performance and responsiveness with a big focus on reducing emissions and saving fuel. Today Toyota brings these benefits to customers with advanced variable valve technology (VVT-i) petrol engines, common-rail turbo diesels (D-4D), and lately with the unique Toyota Hybrid System (THS) in developed markets.
Safety is top priority for Toyota .Advanced steering, braking and traction control technologies help keep Toyota cars on the road and out of trouble. In addition, every new Toyota model is carefully designed to maximize safety, using computer simulations and real-life crash tests. The body and chassis are built to absorb impact and provide maximum occupant protection, whilst SRS airbags are in place in case of a collision. The Toyota Kirloskar Motors product line currently comprises of seven masterpieces of automobile design and engineering .These are:
The Innova The Corolla Altis The Fortuner The Etios sedan The Etios Liva
THE INNOVA
After the success of the Quails, Toyota rolled out the Innova, a category-first to hit Indian roads. Built with hundreds of innovations from around the globe, the versatile brought together SUV like capabilities with sedan like luxuries, in all it is one truly desirable MPV. The Innova is a result of a unique process that has broken new grounds in the way automobiles are created. The Innova brings together qualities never before seen together in an automobile. Fantastic ride quality and luxury coupled with versatile space; superior performance and driving pleasure with world class safety, advanced styling with solid durability.
The worlds largest selling car of all time, Toyota corolla Altis, enjoys huge success in India and was voted executive car of the year two years in a row .The all new Corolla Altis is a befitting new generation of the corolla sedan tradition designed to inspire envy on every road. Once in a lifetime, comes a car that redefines luxury and style. Which looks and feels like it belongs to a class above? and provides a driving experience so far beyond anything youve experienced, that youll either be overcome with awe, or stunned by envy Presenting the all-new Corolla Altis.
THE FORTUNER
The Toyota Fortuner, also known as the Toyota SW4, is a medium-sized SUV based on the Toyota Hilux. Originally assembled only in Thailand, but later also in Indonesia and other countries, the Fortuner is built on the well-established platform of the Toyota Hilux pickup truck. It features three rows of seats and is available in rear-wheel drive or four-wheel drive among others. The Fortuner is part of Toyota's IMV project in Thailand, which also includes the Toyota Hiluxand the Kijang Innova (in Indonesia). The vehicle was designed by Toyota Technical Centre Australia. A number of engine options are available depending on the country of sale, including a 2.7 litre 2TR-FE and 4.0 litre 1GR-FE V6 petrol with Variable Valve Timing and 2.5 2KD-FTV and 3.0 1KD-FTV common rail turbocharger diesel models. IBS HYDERABAD Page 34
The Toyota Etios is a passenger car developed by Toyota for India. The sedan was launched in December 2010, and the Toyota Etios Liva hatchback was launched in June 2011. Manufactured in Bangalore, Etios is the biggest such project in India by Toyota today, and is a direct assault on Suzuki's dominance in this market. The Etios nameplate comes from the Greek "Ethos", meaning spirit, character, and ideas. The Etios sedan uses the 2NR-FE 1.5 L DOHC 4-cylinder engine. This dual VVT-i 16V gasoline engine with electric fuel injection produces 66 kW (90 PS). This is mated to 5 speed manual gearbox. IBS HYDERABAD Page 35
The Etios Liva hatchback was launched in New Delhi on June 27, 2011 with a 4 cylinder 16 valve DOHC engine that delivers a fuel efficiency of 18.31 km/L. A diesel version is planned. Trim levels for the Etios Liva are: J, G, G+, V and VX. The Etios Liva hatchback uses the 3NR-FE 1.2 L DOHC 4-cylinder engine. This dual VVT-i 16V gasoline engine with electric fuel injection produces 59 kW (80 PS). This is mated to 5 speed manual gearbox.
ORGANIZATIONAL CULTURE
Conditions Created by Toyota's Well-Established Business Culture
The Code of Conduct for Toyota Employees The Code of Conduct for Toyota Employees organizes the employees' basic attitudes necessary for putting the Guiding Principles at Toyota into practice. This is not a list of "don'ts," but rather a positive explanation of rules to be observed and actions to be taken. The guidelines also indicate departments employees can consult with when they are having difficulty making a decision and enable employees to confirm the appropriateness of their conduct. Toyota also has conduct guidelines for individual divisions that specify in greater detail specific rules and actions, taking into consideration the unique characteristics of each division. [Promotional Structures] Specific organizations and a hotline have been established in order to thoroughly carry out compliance at all levels of the company, from executive management to the rank-and-file employees.
The Corporate Ethics Committee, which includes all executive management from the executive vice president level and higher as well as corporate auditors, works to prevent risks associated with legal and ethical violations, while overseeing all general corporate activities from the perspective of compliance. Records of proceedings are announced at management meetings and directors and managing officers disseminate information to the divisions they oversee when necessary.
In order to ensure proper compliance, a number of different divisions including the Legal Division, Accounting Division, Corporate Planning Division, Human Resources Division, and Global Human Resources Division work collaboratively to provide support and undertake awareness-enhancing activities.
The Charter for Good Corporate Behaviour adopted by the Nippon Keidanren (Japan Business Federation) was revised in October 2002. One element of the revision was the need for new principles due to the current economic impasse in Japan, the development of a borderless global economy, and the advance of information technology. Toyota Chairman Hiroshi Okuda serves as chairman of the Nippon Keidanren and played a leading role in the revision of the Charter. Toyota is adopting its own internal provisions, taking into consideration the revised Charter.
THE FOURTEEN PRINCIPLES OF TOYOTA 1. Long Term Philosophy 2. The Right Process Will Produce the Right Results 3. Create Continuous Process Flow to Bring Problems to the Surface 4. Use Pull Systems to avoid Over Production 5. Level out the Work Load (Heijunka) 6. Build a Culture of Stopping to Fix Problems, to get Quality Right the First time 7. Standardized Tasks are the foundation for Continuous Improvement 8. Employee Empowerment 9. Use Visual Control so no Problems are Hidden 10. Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes 11. Add Value to the Organisation by Developing Your People and Partners 12. Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to Others 13. Develop Exceptional People and Teams who follow your Companys Philosophy 14. Respect your Extended Network of Partners and Suppliers by challenging them and Helping them Improve.
Aspects of life. When applied to a workplace, Kaizen activities continually improve all functions of a business from manufacturing to management. By improving standardized activities and processes, Kaizen aims to eliminate waste. The Toyota team relentlessly strives to conduct Kaizen activities.
2. Kanban: - It is a concept related to justintime (JIT) production.
Kanban is a part of a pull system that determines the supply, or production according to the actual demand of the customers. A Kanban system is used as a demand signal which immediately propagates through the supply chain. This can be used to ensure that intermediate stocks are better managed.
3. Poka-yoke: - It means fail-safing avoiding inadvertent errors, or a
method of preventing errors by putting limits on how an operation can be performed in order to force the correct completion of the operation.
4. Genchi-Genbutsu: - It means go and see for yourself and it is an
integral part of the Toyota Production System. Toyota managers have an understanding of how it can be improved.
5. Jidoka: - It may be described as intelligent automation. At Toyota
and-see operations. Without experiencing the situation firsthand, managers will not
this means that if an abnormal situation arises the machine stops and the worker will stop the production line. Jidoka prevents the production of defective products, eliminates overproduction and focuses attention on understanding the problem and ensuring that it never recurs.
6. Heijunka: - It is a technique for reducing waste and is vital to the
development of production efficiency in the Toyota Production System. The general idea is to produce intermediate goods at a constant rate, to allow further processing to be carried out at a constant and predictable rate. This helps achieve the goal of IBS HYDERABAD Page 47
JUST-IN-TIME The "Just-In-Time" production philosophy is the foundation of the Toyota process. This concept refers to the manufacturing and conveyance of only what is needed, when it is needed, and in the amount needed. In addition, a minimum amount of inventory is kept on hand. This enhances efficiency and allows quick response to change.
STANDARDIZED WORK The Toyota Production System organizes all jobs around human motion and creates an efficient production sequence without any "Muda." Work organized in such a way is called standardized work. It consists of three elements: Takt-Time, Working Sequence, and Standard In-Process Stock.
Takt-Time "Takt-Time" is the time, which should be taken to produce a component on one vehicle. This timing mechanism is based on the monthly production schedule. Daily total operating time is figured based on all machinery operating at 100% efficiency during regular working hours. The Takt time allows us to produce many parts of many different types for use in vehicles on the production schedule and to supply those parts to each process on the assembly line at the proper time. This keeps production on schedule and permits flexible response to change in sales.
Straight Time / Work Time (Seconds) # Takt Time = Required Number of Production based on Demand
#
Time available/day/month
There had been this wide, long-standing recognition of Toyota as the premier automobile manufacturer in terms of the unmatched combination of high quality, low cost, short lead-time, and flexible production. Toyota Production System had been widely credited for Toyota's sustained leadership in manufacturing performance. In addition, Toyota had been remarkably open in letting outsiders study its operations. Many other auto companies had done major benchmarking studies, and they had tried to implement their own forms of the Toyota Production System. There is the Ford Production System, the Chrysler Operating System, and General Motors went so far as to establish a joint venture with Toyota called NUMMI, approximately fifteen years ago. However, despite Toyota's openness and the genuinely honest efforts by other companies over many years to emulate Toyota, no one had yet matched Toyota in terms of having simultaneously high quality, low-cost, short lead-time, and flexible production over time and broadly based across the system. This shows how deeply TPS is ingrained in Toyota group companies and the impact is has on the functioning of the corporation.
PRODUCTION FLOW The following paragraphs will offer a brief explanation of the manufacturing process followed at the TKM plant along with the systems and processes in place that make this facility and its ideologies truly one of a kind. The production unit or shop floor is primarily composed of the below divisions 1. Inventory Storage 2. Press Shop 3. Weld Shop 4. Paint Shop 5. Assembly Shop 6. Final Inspection
1. Inventory StorageThe parts that are required for the manufacturing of the vehicle are stored in the inventory. Toyota follows the Just in Time production technique i.e. vehicles are produced according to their demand. Therefore, the parts that are present in the inventory are only for that days production and maybe the next days. This way the storage and maintenance cost is reduced. 2. Press ShopIBS HYDERABAD Page 52
3. Weld ShopThe weld shop is responsible for welding every single part of the vehicle. When the chassis is welded the frame structure is held on a fixture which operates on the principle of pneumatic air pressure. Then all the small parts to be fitted to the chassis are welded using butt welding. This process is done manually. For body related welding there is a different segment. E.g. welding of fenders etc. After the completion of welding, the body is inspected for defects. The door of the body is fixed temporarily for painting purpose. 4. Paint ShopIn the paint shop the complete body is dipped into a solution filled in a tank. This is done to clean the body and make it corrosion proof. After this, primer coating is done which is performed by a robot because the primer needs to be sprayed uniformly. A quality check is done to ensure that uniform thickness of the paint is maintained.
5. Assembly ShopThe assembly shop is responsible for the assembly of the various parts to make a vehicle. The assembly shop consists of three production lines. These are: a) Chassis assembly line b) Body trim line IBS HYDERABAD Page 53
The chassis assembly line and the body trim line move side by side. On these lines, the various parts, systems and sub assemblies of the chassis and the body are fitted. Once the assembly of the various parts like door hinges, wire housing, engine, transmission etc. is completed, the chassis is brought under the body and fitted. This procedure is called docking. After docking the vehicle is taken to the final line where the other parts of the vehicle like safety glasses, carpet, doors etc. are assembled. The VIN (Vehicle Identification Number) is punched onto the vehicle by a machine during the final line assembly. 6. Final InspectionDuring final inspection, the entire vehicle is checked for any defects in weld, paint and assembly. The engine is started and checked and the steering alignment is verified. Also a shower test is performed to ensure that there are no leaks in the car. In case of any persisting problem, the vehicle is sent to the repair shop where the defect is rectified.
Non-manufacturing Divisions General Administration Division Finance and accounting Division Purchase division Marketing Division Sales and Services Division Human resources
The departments that fall under the manufacturing division are those that are primarily composed of engineers and these function in a symbiotic way that aids in the design, manufacture and deployment of its automobiles. The non-manufacturing divisions are composed of teams that overlook the finance and manpower planning and management.
SLC
TKM receiving
Job works
P W T A IN SP
Imports
Yard
Dealers
S.W.O.T ANALYSIS
STRENGTHS
Better Product Quality and strong product Innovation skills Trusted and reliable brand image of its patent company TMC worldwide contributes to its goodwill
Wider Product Line Availability of latest technology through in house R&D Standard system of production and company culture is followed uniformly throughout the world thereby no deviations in its quality
Pull system of production that depends on sales velocity and hence cars are built to order, thereby eliminating idle inventory and overproduction wastage
Toyotas culture and ideology followed by even its suppliers and dealer network
WEAKNESSES Higher Lead Time The present and only plant in India at TKM has neared peak capacity
Internal conflicts of interest such as Trade union issues that have arose in the past and severely affected the companys output and drew critical media reviews
No proper system to check whether the worker is using safety wear or not, which may lead to accidents
OPPORTUNITIES
The growing automobile market in India, presently said to be growing at over 16%, has created new possibilities in various segments offers numerous avenues for growth
Increasing buying power and customer base in India Expansion of product portfolio to diversify and thereby establish in this bigger domestic market
THREATS
Entry of international players in domestic market Exchange rate fluctuations that affect the companys overall revenues since majority of its auto components, CBUs and engines are procured from overseas
It has not been largely successful in terms of market penetration in India .Globally Toyota is a leader in production and sales
SAFETY
The importance given to safety in the plant is phenomenal .In fact it was truly admirable to see that this level of safety was followed not just on the shop floor but throughout the expanse of the entire facility. One example is the GREEN PATH system that literally refers to narrow lanes painted green viz.the only areas that personal and visitors are advised to walk on in the shop floor as it traces the areas where safety is least compromised. This initiative also has STOP-LOOK-GO signs printed on in bright yellow at all turnings, crossings and intersections to serve as a continuous reminder to be cautious and watchful .Toyota aims to achieve a zero accident reputation through these efforts. Moreover, all personnel in the plant are provided adequate body protection such as helmets, elbow guards, gloves, aprons, etc. in meeting with standard safety requirements.
THEORY IN PRACTICE
Toyota believes in practicing what it preaches. Group activity box on the shop floor that temporarily houses managers and senior personnel in accordance with their culture of Genchi-Genbutsu, that means go see for yourself, as Toyota managers are expected to go and see operations firsthand to have an understanding of how it can be improved. These boxes eliminate the need for managers to walk to and forth from shop floor to office floor viz. a waste of time and energy.
After visiting two districts of Nizamabad and Kazipet/Warangal, I came to a conclusion after having a discussion with Toyota owners as well as prospective Clients. Some of their views are as follows: Due to a long distance from the dealership showroom it usually gets too hard for an owner to get their cars serviced on time In case of a break-down of their car, it is sometimes hard for them to arrange genuine Toyota-parts. Overall the concern of all the customers as well as the prospects revolves around better service in terms of servicing and maintenance of the vehicle. Other concerns of the prospects was the delivery time of their vehicle as promised ,but at R.K Toyota, the sales people are very efficient and in all the cases the delivery is made on time
CONCLUSION
Toyota Kirloskar Motors has greatly contributed to the huge growth of the Indian Automobile Industry. Toyota Kirloskar Motors has a great commitment to the society and the earth, aiming to create a new motorization future for India. Toyota will play a significant role in promoting employment and technology transfer to India. Toyota believes that manufacturing is all about fostering people; it aims to apply all its energy into nurturing individuals who can contribute considerably to the revitalization of the Indian economy. Toyota Kirloskar Motors has already started the work of the second plant which is scheduled to begin operations by mid 2012 with an initial annual production of 100000 cars; the plant is poised to produce passenger cars, including a new compact vehicle. This would change the whole Automobile Industry. It would create high quality Cars and would also increase the competitiveness existing in the market. With the above information we can say Toyota Kirloskar Motor has a long way to go through with innovative product and it has scope for diversification in various because of large untouched market. Huge Investments are coming from Toyota and Kirloskar group and the Special Advantage is getting the Technology transfer from Toyota. Today, Toyota Kirloskar Motor plays a vital role in rolling out Cars in India with state of the art Design and Technology. This can only be possible by following world class Quality, Innovation, Leadership, Principals and Values. Toyota Kirloskar Motor will not just drive the Indian Automobile Industry but it would make significant inroads such that it would revolutionize the Global Automobile Industry.
SUGGESTIONS
Pricing and Product sales must be made effective such that the company can be competitive with the local and International manufacturers.
Reduce the Exchange rate fluctuations that affect the companys overall revenues because majority of its auto components, CBUs and engines are procured from overseas
As Toyota gives the first preference to the Safety, but still workers are very negligible sometimes, they ignore to wear the safety wears when they are in the line, so I suggest they should have a safety inspection team, where they will be continuously observing the workers.
Workers waste lot of their time in playing board games as there is no proper observations on these areas, so I suggest that there should be proper monitoring system, so that all the man hour is used efficiently.
There do not exit a proper relation between the team leader and the team members, so I suggest that proper steps must be taken in reducing the cold wars between the employees so that they maintain a good working environment.
1. Toyota is known for their operational efficiency, so in order to get attention of the prospective customer as well as the existing customer, it is important for TKM to prepare a slide show of the operational activities of Toyota and display in the dealership showrooms on the LCD tv. 2. A Fortnightly servicing Van can be provided in the distant locations, such as Nizamabad,kazipet,Warangal etc..By providing the servicing vans, the dealership will create a better image and that will lead to its sales through word of mouth publicity and it will as create a better brand image of the company as a whole. 3. Similarly, a servicing camp can be arranged in the major city locations, with a side by side family time programme. In this Family time programme, a customer can get his vehicle serviced while his/her children can enjoy in a small fare arranged by the dealership. This will in turn create a better brand image of Toyota and will also increase customer loyalty towards the company as well as the dealership. IBS HYDERABAD Page 63