Toyota Swot Essay

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Summary The founders of Toyota is Toyoda Sakichi.In 1926, Sakichi established Toyoda Automatic Loom and in 1930 he sold his patent right of textile and use the money to urge his son, Toyoda Kiichiro to study the possibility of manufacturing automobiles in Japan. The Japanese market was at that dominated by Ford and General Motor. Japan had invaded Manchuria in 1931and it resulted an automobile manufacturing law in 1936 . in 1939 both GM and Ford exited from the Japanese market because of the law. In 1937, Risaburo and Kiichiro decided to incorporate the automobile department as a separate company to attract investor and then changed the company’s name to Toyota Motor Company. Ohno Taiichi joined Toyoda Automatic Loom in 1932 as a production engineer and worked in auto production for two years. In 1954 he was appointed company director. When Ohno Taiichi joined Toyota,the mass production methods become the accepted method of manufacturing automobiles but Ohno knew that the small domestic market in Japan and the lack of capital for investing in mass-production facilities made the American model unsuitable for Toyota. Ohno succeeded in reducing the time required to change dies on stamping equipment from a full day to 15 minutes by 1962 and to as 3 minutes by 1971. These innovations make small production runs economical and added benefit reducing inventories and improving product quality. Ohno’s first innovations was the introduction of team concept. In 1953 Ohno is started to use Kanban system, component parts are delivered to the assembly line in containers. In 1962 Ohno had extended the kanban system to forging and casting. During 1930s and 1940s, Toyota followed the American model and pursued extensive vertical integration into the manufacture of components parts. Toyota believes that the real efficiencies could be achieved if the company entered into long

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