Over the course of its more than 75-year existence, Toyota has developed from a small division of a Japanese weaving firm into one of the most reputable and trusted automobile companies worldwide.
Toyota is successful for a reason. It has been developed through excellent design, unrelenting innovation, and risk-taking actions.
Some of the most impressive sports cars ever made were made by them. Additionally, their economy sedans are renowned for their dependability and style.
Toyota is frequently cited as the business that pioneered the market for hybrid vehicles. Others adore trucks with heavy-duty capabilities, such as the Tacoma and FJ Cruiser.
Toyota is not confined to a single field. They have redefined what drivers should anticipate from their automobiles and pushed the envelope in a number of ways.
Look at it for yourself, please. Toyota has always prioritized producing the greatest cars possible, starting with their very first prototypes and continuing with the current lineup available at Toyota dealers.
In This Article...
At the Start
A very sophisticated loom served as the starting point for everything. It was created by Japanese inventor Sakichi Toyoda, who opened the ground for Toyota Motors to emerge.
His most well-known creation, the automatic power loom, used the Jidoka principle, which meant that it would shut off on its own in the event of an issue.
Later, Toyota automobiles were built using the same technique. The 5 Whys, a set of five inquiries designed to get to the heart of a problem, were also created by Sakichi Toyoda. Today’s businesses still employ the procedure.
Toyoda Automatic Loom Works was established by Sakichi Toyoda, and it served as the impetus for the development of the now illustrious car manufacturer. However, it was his son Kiichiro Toyoda who expanded the company’s capabilities by introducing automotive design.
Kiichiro Toyoda visited Europe and the United States to study more about the automobile industry. He did research on gasoline-powered engines and improved his understanding of how existing cars operated.
He was the one who established an automobile department at his father’s weaving business in 1933, setting the groundwork for a long history of prosperous automotive design and production.
Toyota was finally founded as a separate company after working on prototypes that eventually resulted in the Toyoda Model AA Sedan, AB Phaeton, and GA Truck.
The Toyota Motor Company was founded in 1937 with a brand-new name and emblem.
Getting Underway
Toyota increased its output during the 1940s, and by 1947, it had produced 100,000 cars.
Several subsidiary businesses, such as a steelworks facility, an electric vehicle manufacturer, and a rubber manufacturing company, were established at the same time.
However, the postwar era was exceedingly financially challenging, and the company was forced to take out loans and lay off employees in order to merely survive.
While a significant strike, layoffs, and reduced pay were damaging the business, a stroke of luck saved Toyota from going out of business. Over 5,000 vehicles were ordered by the American military for use in the Korean War.
Toyota made a number of tactical decisions in the 1950s after things were back up and running. They started an American division, founded a separate sales organization, built a network of dealers, and boosted their exports.
The Toyota Crown from 1957 was the first Japanese vehicle to ever enter the United States. And it signaled the beginning of a long-lasting and fruitful partnership with American drivers.
Growing the Business
Toyota experienced significant expansion during the 1960s. They established relations with Europe and started exporting vehicles there with great success. Their biggest export market at the time, Australia, saw a surge in sales as well.
The year 1965 ended up being crucial for the business. When the Sports 800 was unveiled, Toyota changed its direction. It was their first sports car in production and a foreshadowing of many future high-performance cars.
In the late 1960s, the beloved Corolla made its debut. Toyota had no idea that this vehicle would go on to become the most popular passenger vehicle of all time.
By 1970, Toyota had shipped one million automobiles overseas and was firmly established in the automotive industry.
Seeing Results
A number of additional models were released in the ensuing ten years, including the Celica, which was the Supra’s forerunner. Sales grew quickly, reaching 5 million units exported by 1975.
As a result, Toyota surpassed Volkswagen, which had previously held that position, to become the top importer into the United States.
Toyota shipments to all countries reached 10 million in just five more years. To fulfill the expanding demand, several more plants were developed. Additionally, nothing slowed down.
Sales of the Camry, which was also added to the lineup in the 1980s, skyrocketed, and in 1989, Toyota launched its luxury division, Lexus. Lexus was recognized as the top luxury import into the United States after just two years.
Modern Times
Model after model, Toyota’s design and engineering staff kept churning out cutting-edge automobiles that are now among the most well-liked in America.
Along with the Toyota Avalon, the RAV4 and Prius entered production in the 1990s, and annual foreign sales of these vehicles reached 3 million.
Within ten years, the Camry had become one of the most well-liked sedans on the market, more than a million Prius vehicles had been sold globally, and several of Lexus’ most well-known cars, like the GS and IS, had been unveiled.
Early in the new millennium, more new models were added to the portfolio, including the small, cheap Yaris and Matrix hatchback, which gave motorists an affordable and sustainable alternative to going electric.
The FJ Cruiser was also introduced in 2010, which helped Toyota’s customer base grow even further. The FJ became a popular off-road vehicle, rivaling the Tacoma and Tundra, the company’s mid- and full-size trucks.
Toyota has increased the number of Prius models it offers, giving customers the choice between a compact version for commuting within town limits and a larger one that can accommodate the entire family.
Both versions were highly accepted, and the Prius continues to hold the title of most well-known and popular hybrid vehicle.
The Future
However, Toyota has other environmentally friendly solutions in mind besides hybrid technology. They have also put a lot of time and money into fuel cell technology, aiding in the development of several hydrogen filling stations in the United States.
The action is being taken in order to get ready for their upcoming Mirai, which is expected to redefine alternative-fuel cars. Toyota thinks this capable, cutting-edge vehicle will be a priceless solution to the world’s energy issues.
The Mirai has already received significantly more orders in Japan than Toyota had anticipated, and the same is expected to occur when the vehicle is made available in the United States.
There is currently a sizable infrastructure in place on the west coast of America, and the project’s scope is growing. New England and other eastern states will soon have hydrogen fueling stations as well.
Toyota has once again positioned itself in front of the wave as one of the only automakers prepared to provide a refined hydrogen-powered vehicle.
So how does a Japanese automaker that grew out of a weavers’ business rise to the top of the automotive industry? That’s simple.
It only takes 75 years of unwavering dedication to quality and creative thinking that far beyond that of any rivals. Additionally, it calls for a vision for the future that is constantly evolving and changing into something new.
What crucial components made Toyota successful?
David Magee, the author of How Toyota Became #1, was asked by U.S. News to list some of the factors that contributed to Toyota’s success.
- Long-term preparation.
- fastidious diligence.
- a flexible mind.
- concern for waste.
- Humility.
Why is Toyota successful?
No executive needs to be persuaded that Toyota Motor Corporation has grown into one of the biggest businesses in the world thanks to the Toyota Production System (TPS). The unconventional production process helps the Japanese giant produce the world’s greatest cars at the lowest possible cost and to launch new products swiftly. Toyota’s competitors, including Chrysler, Daimler, Ford, Honda, and General Motors, have not only created systems similar to TPS, but hospitals and postal services have also embraced it to improve their efficiency. Managers consider TPS’s involvement in Toyota’s success to be one of the few enduring truths in an otherwise cloudy environment since lean-manufacturing specialists have praised it so often and with such fervor.
But this isn’t helpful to executives, much like many other myths about Toyota. It’s a partial truth, and partial truths can be harmful. Over the course of our six-year investigation, we visited Toyota sites in 11 different nations, participated in a large number of business meetings and events, and examined internal records. In addition, we interviewed 220 Toyota workers, including Katsuaki Watanabe, the company’s president as well as shop floor workers. Our study demonstrates that while TPS is essential, it is not by any means sufficient to explain Toyota’s performance.
Simply said, Toyota Production System (TPS) is a “hard innovation” that enables the corporation to continuously improve how it produces cars. Toyota has also developed a “soft innovation” that pertains to corporate culture. We think that the company’s success is a result of the inconsistencies and paradoxes it introduces into various facets of organizational life. Employees must function in a culture where they must continually come up with new solutions to problems and obstacles. Because of this, Toyota is continually improving. Both hard and soft technologies complement one another. Together, they advance the company like two equally weighted wheels on a shaft. Although competitors and industry experts have thus far ignored it, Toyota’s culture of contradictions contributes just as significantly to its success as TPS does.
Toyota thinks that success cannot be assured by efficiency alone. There is no doubt that Toyota employs Taylorism to the fullest extent. What makes the company different is that it sees its people as knowledge workers who amass chiethe wisdom of experience on the company’s front lines, not just as pairs of hands. As a result, Toyota makes significant investments in its employees and organizational capacity and collects ideas from everyone and anywhere, including the shop floor, the office, and the field.
Toyota sees its personnel as knowledge workers who amass chiethe wisdom of experience on the company’s front lines, not merely as pairs of hands.
At the same time, research on human cognition demonstrates that when people wrestle with conflicting views, they comprehend the various facets of a problem and develop workable solutions. As a result, Toyota intentionally promotes divergent opinions within the company and encourages staff to work across differences to find solutions as opposed to making concessions. This high-tension environment inspires creative solutions that Toyota uses to outperform rivals both gradually and dramatically.
We shall discuss some of the major paradoxes that Toyota promotes in the pages that follow. We’ll also demonstrate how the business unleashes six forces, three of which encourage experimentation and growth while the other three support the maintenance of its core principles and identity. Finally, we’ll briefly go over how other businesses may discover how to profit from contradictions.
Who was Toyota’s success-maker?
Toyota shortened its procedure as a result, which increased output and efficiency.
Eiji Toyoda, a relative of Taiichi Ohno and Kiichiro Toyoda who oversaw manufacturing, filled the leadership vacancy.
By making several significant adjustments, such as placing the machines in the order they were used, they significantly increased production and productivity at the Toyota plant. They both meticulously evaluated every component of the facility.
Toyota rose to prominence as Japan’s top automaker by the 1950s as a result of all the advancements made by Eiji Toyoda and Taiichi Ohno.
Background
Toyota Motor Corporation is a Japanese automaker that manufactures and markets cars all over the world. Along with Volkswagen, Ford, Honda, Nissan, Hyundai, and Kia, the original brand of the company, Toyota, is among the most well-known automobile manufacturers in the world. Toyota dominated the global auto industry in terms of sales volume in 2016. (Parker 2016). In addition to Toyota, the business also creates cards under the brand names Hino, Lexus, and Ranz, which serve different consumer demographics. Toyota is able to maintain continuously high earnings because of the exceptional quality and dependability of its vehicles. This is primarily attributable to the company’s implementation of TQM procedures during the 20th century (Toyota Motor Corporation 2012a). Due to its advantages, many other businesses in the manufacturing industry have adopted the Toyota production system, which was created and established by Toyota thanks to the usage of TQM (Amasaka 2014). The case study will demonstrate how Toyota’s TQM processes were exceptionally successful because they adhered to principles and suggestions that were based on evidence.
TQM Application
Toyota uses TQM to all of its operations, even though its main TQM goals are to improve product quality and decrease product variability (Figure 1). These include product management, product engineering, manufacturing, inspection, sales, service, market research, profile design, engineering design, research and development, evaluation, production planning, and product engineering (Amasaka 2014). Examining projected performance and attributes during the development stage allows for the assurance of the absence of structural or engineering faults (Amasaka 2014). The quality of processes, materials, individual parts, and finished products is monitored based on objective metrics during production-related stages, from planning to inspection (Amasaka 2014). This is crucial since every part of an automobile, from the engine to the paint, must undergo quality control if it is to be long-lasting and dependable. A thorough and thorough commitment to quality at these stages helps to ensure that the business’s products meet the needs of the customers, which promotes client satisfaction and loyalty.
In a same vein, quality control is necessary at the sales, service, market research, and product management stages in order to increase satisfaction. Toyota does this by regularly surveying its customers on their satisfaction, inviting them to contribute ideas and proposals for quality improvement, and offering maintenance services after the sale (Amasaka 2014). Utilizing customer complaints to find and fix issues is a crucial component of Toyota’s quality management system. Since the 1970s, warranty claim reduction initiatives and the Dynamic Assurance System (DAS) have served this goal (Toyota Motor Corporation 2012b). Overall, because its principles are implemented across the entire organization, Toyota serves as an example of best practices in TQM.
Best Practices in TQM Toyota
The Toyota approach to quality management has four key components. First, the business employs quality assurance and control techniques that are based on in-depth study and testing (Toyota Motor Corporation 2012b). This indicates that study and practical experience have demonstrated the efficacy of every instrument used by Toyota, including FMEA and FTA. Second, by creating quality circles, providing training, and conducting internal audits, the corporation actively involves its staff in the quality control process (Toyota Motor Corporation 2012b). Thirdly, Toyota’s adoption of TQM tools is consistent with its customer-focused business strategy. According to Toyota Motor Corporation (2012b), there are particular committees, such as the Customer Delight (CD) Quality Improvement Committee and the Customer Satisfaction (CS) Improvement Committee, that are charged with continuously enhancing customer centricity. Last but not least, Toyota has a systematic approach to quality assurance that encompasses all of the organization’s facilities, divisions, and departments. These traits are all compatible with how TQM is defined and how its core methodology works. As a result, they take care of potential obstacles to TQM implementation success and enable the business to gain from the system.