Toyota Industries Corporation Business Report

The Purchasing Division works together with suppliers to improve quality. Through this initiative, Toyota development, production and purchasing personnel visit suppliers to try to observe products from their viewpoint. Then, sharing responsibility for tackling any issues found on site with tangible products; accordingly, the Toyota personnel work collectively with the suppliers to seek solutions.

Recycling process

The process consists of four stages (Toyota Europe, 2002):

  • Recycling at the development stage (design that takes recycling into consideration).
  • Recycling at the production stage ( resin and rubber recycling technology)
  • Recycling at the use stage (recycling waste by dealers)
  • Recycling at the disposal stage (effective utilisation of shredded residue)

Targeting cost process

The target costing process starts by creating a selling price, based on market research, for the new product. The desired profit is subtracted from this target-selling price to determine the target cost. Toyota deploys cost planning to generally decrease costs at the design phase. By employing this technique, Toyota establishes aims for cost reduction, and then attempts to meet these new targets via design changes that will realise the cost reduction goal. (Alvarez, 2001).

Spare parts Inventory process

This is concerned with the ensuring that the necessary and spare parts are always in the warehouse. This is done by daily checking the system to find if there is any parts require ordering or any parts that have become more required. Accordingly, the order is made.

Order-to-Delivery process

This process is concerned with the vehicles, which are customized and manufactured according to specific customer requests.

The major steps in this process are as following

Order entry

Order bank

Order scheduling




Sales Process

Sales process at nearly any dealer begins once the customer visits the showroom and be welcomed by salespeople. According to Doucet (2010), sales process generally consists of the following steps:

  • Introduction
  • Qualification
  • Vehicle selection & presentation
  • Demonstration
  • Negotiation
  • Application
  • Preparation
  • Delivery

Problem solving process

  1. Clarify the problem
  2. Breakdown the problem
  3. Set a target
  4. Analyze the root cause
  5. Develop countermeasures
  6. See countermeasures through
  7. Evaluate both results and process
  8. Standardize successful processes (Liker, 2004)

Decision making process

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