Toyota Motor Corporation - Losing 'The Toyota Way'?
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Case Code: BSTR385 Case Length: 20 Pages Period: 2005-2010 Pub Date: 2011 Teaching Note: Available |
Price: Rs.600 Organization: Toyota Motor Company Industry: Automotive Countries: Japan; Global Themes: Organizational Culture, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Toyota was established as a commercial vehicle manufacturer in 1937 with a capital of ¥ 12 million. The company faced difficult times during the late 1940s as there was a severe shortage of vehicle components in Japan and Toyota did not have enough capital to carry huge inventories. The main challenge that the company faced was to produce the maximum units possible given the severe resource constraints. This forced the company to reduce manufacturing inefficiencies. It was at that time that the then production chief, Taiichi Ohno (Ohno), introduced the TPS. The philosophy of TPS was complete elimination of waste or Muda.
Toyota entered the US in 1958 by launching its model the Toyopet. It established its first overseas production unit in Brazil in 1959 and entered the European market in 1963. Besides manufacturing, the company started a global network of design and R&D facilities covering....
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