Post on 12-Sep-2014
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VALUE CHAIN AND COMPETITIVE ADVANTAGE OF PT.TOYOTA
(BASED ON THE THEORY M. Porter)
MISSY DESMALA224409057Missydesmala@rocketmail.com
TOYOTAINTRODUCTIONVALUE CHAINCOMPETITIVE ADVANTAGECONGCLUTION
INTRODUCTION
Toyota motor corporation’s vehicle production system is a way of “making things” that is referred to as “lean manufacturing system”.
The TPS was developed to improve Quality and Productivity.
Objective: “making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible”.
INTRODUCTION
Origin of Toyota Production System
Sakichi Toyoda(1867-1930 )
Automatic loom
Kiichiro Toyoda(1894-1952) Used chain conveyor into the Assembly line.
Eiji Toyoda(1913) Implementation of Jidoka and JIT.
Book : The toyota way by jefrey k lingker
In indonesiaPT Toyota Astra Motor inaugurated on April 12, 1971. The role of TAM was originally only as an importer of Toyota vehicles, but a year later was working as a distributor. On December 31, 1989, TAM merged with three companies,
among others:
PT Multi Astra (assembly plant, founded in 1973) PT Toyota Mobilindo (body parts factory, founded in 1976) PT Toyota Engine Indonesia (engine factory, founded in 1982) PT Toyota Astra Motor.
Since the date of July 15, 2003, TAM restructured into two companies, namely: PT. Toyota Motor Manufacturing Indonesia which is the abbreviated TMMIN
assemblers of Toyota products and exporter of Toyota vehicles and spare parts. Shareholding in this company is Astra International and TMC 5% to 95%
PT. Toyota Astra Motor as sales agent, importer and distributor of Toyota products in Indonesia. Shareholding in this company Astra International is 51% whereas 49% TMC
http://www.toyota-global.com/company/profile/overview/
Value chain
Based on the theory michael poter
Based on the theory michael poter
Primary activities
Inbound logistics
toyota in obtaining raw materials, they do not process their own, or create your own, they use a third party, they handed the small parts, such as leather seats, steering wheel, tire, to local companies, but to the nature of strategic importance, like a machine, they import from Japan (center), it's all to maintain the quality standard that was created toyota,
Toyota put on the assembly system in the process, it has led to toyota raw material supply for its assembly,, need a place to store supplies, or warehouse, to avoid piling up too many assets, Toyota to forecast demand,
Book : The toyota way by jefrey k lingker
Primary activitiesOperations
Transforming inputs into the final product form, in assembly and manufacturing (its production) Toyoto use various systems to be efficient and effective, we could also call it, TPS is the Toyota Production System,
the concept of the Toyota Production System can be described as a complete building which consists of various components are integrated. The building was also called a The House of Toyota.
Primary activities oprations
JUST IN TIME : One of the two main pillars of TPS. It refers to the manufacturing and conveyance of only ” what is needed, when is needed, and in the amount needed in the system”.
1. The Pull System 2. Continuous Flow Processing 3. Take time
JIDOKA : One of the two main pillars of TPS. It refers to the ability to stop production ,by man or machine.( equip malfunction)
Primary activities oprations
Heijunka: smoothing. Meaning: wherever possible evenly distributed workload made at any time. Without this, Just in time can not be applied, because it will happen stacking and queuing at peak load.
Standard work: At each stage of the work there is a clear indication of the order and how to do the job.
Total Productive Maintenance (TPM): a comprehensive equipment maintenance process so that the tools are always in good condition to wear to work.
Value Chain: It is a series of value-added processes. There are continuous efforts to reduce "non-value added waste" so that what remains is just something that has added value in the production process. Discussion of "non-value added waste" includes the activities of 5S
Book : The toyota way by jefrey k lingker
PRIMARY ACTIVITIES OUTBOUND LOGISTIC
Outbound LogisticsCollecting, storing and distributing the product to
buyers
output of the production process at the plant, is
the finished product,, a car, the car is directly sent to the toyota dealer,, it's for local, or a region (not crossing the sea in distribusianya, if sending more distant or export,, its delivery using container.
http://www.toyota-global.com
PRIMARY ACTIVITIES Marketing and Sales
Marketing and SalesProviding a means and incentive which allow buyers to purchase the
product
Application of Indirect Channels Distrubusi TOYOTA CORPORATE ,Toyota Motor Company was founded in 1937 by the Toyoda family.
In the application of the Toyota Company or its product distribution channels to use indirect distribution networks which use the Company Toyota dealer or distributor
www.toyota.co.id/
PRIMARY ACTIVITIES Marketing and Sales
BRANCH TOYOTA DEALER IN INDONESIA
www.toyota.co.id/
PRIMARY ACTIVITIES SERVICE
ServiceProviding service to enhance or maintain the value of the
product
The Best Total Ownership Experience 'is a principle that is always carried by Toyota at each line, starting from the central office to the Toyota dealership on every spread in Indonesia. Their concept is the customer number one, so that makes them always trying to meet customer needs and continuously improve services.
parameters set 6 pieces, among others: the quality of service, type of problem, the service is user friendly, service advisor, service initiation, service delivery and in-service experience
survey conducted by JD Power Asia Pacific to its customers in Indonesia
SUPPORT ACTIVITIES
Firm infrastructure
infrastructure owned by Toyota factory is very modern and sophisticated, is a robotic system with humans as the operator,, all the production support until the sale is available with either situation, the factory to the dealer,,
http://www.toyota-global.com
SUPPORT ACTIVITIES HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Toyota to this day has approximately 300,000 employees worldwide, and nearly a third are in Indonesia, in placement or acceptance of an employee, the company held a test salalu continued with the training, according to its disciplines and expertise,
http://www.toyota-global.com
SUPPROT ACTIVITIES TECHNOLOGY DEVELOPMENT
TECHNOLOGY DEVELOPMENT OF TOYOTA
Torrance (DP) - As one of the world's largest manufacturers, Toyota is very concerned with the safety of
its customers. That is why Toyota did not stop doing
research and development of safety technology.
Here are four technology from Toyota:
Pre-Crash Safety (PCS) with collision-avoidance assists Pop-up Bonnet Adaptive Driving Beam Emergency response technology
SUPPORT ACTIVITIES Procurement
Procurement Policy
Along with requiring our suppliers to provide quality items at a low price and in a timely manner, we cooperate with them to promote environmental preservation and meet the other demands of society. In addition we take a long term view
toward our relationships with suppliers with an aim to realize an amicable relationship of mutual prosperity based
on fair business practices.
http://www.toyota-industries.com/corporateinfo/purchasing/policy/
Competitive adventage
Based on the theory michael poter
Competitiv advantage cost leadership
COST LEADERSHIPLEAN SUPPLY CHAIN MANAGEMENT
[Toyota Indonesia Case]
as Basic Philosophy(1) SALES PRICE = COST + PROFIT(2) PROFIT = SALES PRICE - COST
Profit = sales price - cost
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
GOAL of LEAN ACTIVITY COST REDUCTION PROFIT INCREASE
Competitiv advantage cost leadership
SIMPLE CONCEPT FROM TOYOTA
(1) SHORTENING LEAD TIMESimplifying the ProcessContinuous Flow ( One Piece Flow Process )
(2) REDUCE INVENTORY LEVEL
___________I_______I__________I______I_____________I______I_________I______I__________ LD LD LD LD LD LD LD LD
=============================TOTAL LEAD TIME==================================
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
Supply chain management in toyota
vendor manufaktur dealer customer
1. Local parts
2. Import parts(3)Receiving dock pc storeproduction
(4)dealer (5)customer
PC store ProductionReceivingDock
Dealer
Local Parts
Local Parts
Competitiv advantage cost leadershipSCM
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
• 1 and 2 Linked between internal and vendor STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERYKANBAN:- A small time that is the key control for JIT production
Competitiv advantage cost leadershipSCMlogistic mangement
Internal Logistics in toyotaSimplify Process Re-arrangement of
Process
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]
Competitive advantage different strategy
The 14 Principles of the Toyota Way The last award for excellence in getting toyota product
1. Long term philosphy2. Right process, right results3. Use ‘pull’ sytem to avoid over production4. level out the work load5. Build a culture of stopping to fix problems, to
get quality right the first time6. Standardise task are the fondations for
continuous improvement and employees empowerment
7. Use visual control so no problems are hidden8. Use only reliable thoroughly tested teghnology
that serves your people and processes9. .grow leaders who thoroughly understand the
work, live philoshpy and teach it to others10. Develop exeptional peopel and teams who
follows yours companies philosphy11. Respect your extended network of patners and
supplied by challenging them helping them to improve
12. See for yourself to thoroughly understand the situation
13. Make decision slowly by consensus thoroghly considering all options, implement decision rapidly
14. Become learning organitation thorough relentless reflections and continous improvement
1. Best Small Sedan (Toyota Vios), 2. Best Mid Sedan (Toyota Altis), 3. Best Mini MPV (ToyotaAvanza), 4. Best Low SUV (Toyota Rush) ,5. Best MPV Diesel (Toyota Kijang
Innova)6. Best PR Team 7. Best Website
http://otomotif.antaranews.com/news/1321435204/toyota-astra-motor-raih-7-autobild-award www.toyota.co.id
Book : The toyota way by jefrey k lingker
Support activities segmentation
customer segmentation in toyota
Demographic Segmentation 1. Gender: 2. Age 3. Price 4. Number of families Psychographic segmentation 1. Social class 2. Design 3. Type Segmentation Behavorial 1. Toyota Parts are easily available and cheap enough so the price is
affordable2. The legs of the car a more durable than competitors3.Customer care 24 hours
http://wilsonmarketing.blogspot.com/
book by philip kotler marketing management 1995
conclutions Toyota is a great company with an integrated supply chain
management as well. Toyota has an integrated system in its production, namely TPS
(Toyota Production System), Toyota has a wide range of advantages ranging from human
resources to its products, it is evidenced by the wide range of awards,
Toyota have 14 principles which refers to the quality of service, product quality and efficiency,
toyota including Indonesia's largest company automotive in the world,,
Toyota lead because his concept of lean management
References The toyota way by jefrey k lingker Competitive advantage by michael poter Marketing management by philip kotler
www.toyota.co.id/ http://www.toyota-global.com/company/profile/overview/ survey conducted by JD Power Asia Pacific to its customers in
Indonesia http://www.toyota-industries.com/corporateinfo/purchasing/policy/ By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN
MANAGEMENT[Toyota Indonesia Case] http://otomotif.antaranews.com/news/1321435204/toyota-astra-mo
tor-raih-7-autobild-award http://wilsonmarketing.blogspot.com/