TOYOTA

Engineering Logistics in Toyota

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INTRODUCTION1

THE PHILOSOPHY OF TOYOTA COMPANY2

Toyota Production System3

Financial Services Operations5

Automobile Operations6

Business Unit of Materials Handling Equipment6

Logistics Business Unit7

LIFE-CYCLE ANALYSIS OF OPERATIONS7

Design and Development8

Manufacturing and Purchasing12

Marketing, Sales, After Sales and Logistics14

End of Life Process16

OPERATION CAPABILITIES OF TOYOTA17

Hybrid Vehicles17

Optimizing Shipment of Vehicles18

Environmental Packaging for Vehicles19

Logistics for Service Parts19

EXISTING CHALLENGES AND WEAKNESSES IN THE CURRENT LOGISTIC OPERATIONS20

Recalls On large Scale20

Weak Presence in the Promising Automobile Markets20

Decreasing Prices of Fuel21

New Standards of Emission21

Increased Prices of Raw Materials21

Fluctuations of Currency21

Existing Challenges22

HOW LOGISTIC OPERATION MUST BE REDESIGNED24

Re-engineering24

Sustainability25

Improved Logistics Costs27

CONCLUSION28

REFERENCES30

Executive Summary

Toyota with best practices of industry and superior technology is providing a run for the automobile industry. Toyota is leading in the automobile industry. The business units of Toyota Company include financial services operations, automotive operations, production system and other operations. The most considerable business segment of Toyota is the unit of automotive operations. The aim of lean production unit is to reduce waste in all production areas including factory management, supplier networks, and product design and customer relations. The aim of this paper is to provide an overview of system operations and business units of Toyota Company. Life-cycle analysis of operations, operation capabilities of Toyota, existing challenges and weakness in Toyota's logistics system, and providing solution for the challenges and weaknesses.

Engineering Logistics in Toyota

Introduction

Toyota is the biggest car company in Japan, and it is second largest car company in the world. An estimate shows that the company produces eight million vehicles in a year. The Toyota Company leads in its domestic market. In the year 2004, 50% of the registered cars were manufactured by the Toyota Company. In Europe and United States; Toyota has large share in market. Toyota has considerable number of market shares in different fast-growing countries of South East Asia. Toyota is the only company that produces a large number of vehicles which are extremely regarded for their value, engineering and quality. The designs of cars that are manufactured by the Toyota Company set international standards for reliability, safety and ease of maintenance. The Philosophy of Toyota Company

The Toyota Company performs right operations for the customer, employees, company and society as a whole. The manufacturing journey of Toyota Motor started in the year 1933 when a new division was created by Toyota Automatic Loom, for the production of vehicles. In the year 1934, the company produced its first Type A Engine, which was utilized in the G1turck as well as in first Model A1 passenger car, in the year 1935. The Toyota Company dedicated their production and manufacturing services for the Imperial Army, during the Pacific War. For single vehicle Toyota earns for about $1250 (Thompson, 2001, pp.80). Toyota Company has aimed to develop a 21st century's technology that would shrink consumption of gasoline and limit greenhouse gases.

System Operations and Business Unit of Toyota Company

The business units of Toyota Company include financial services operations, automotive operations, production system and other operations. The most considerable business segment of Toyota is the unit of automotive operations (Waters, 2007, ...