Project Report on Totota Kirloskar Motor

Toyota Kirloskar Motor

INTRODUCTION TO STUDY

As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar

Motor Private Limited (TKM) aims to play a major role in the development of the automotive

industry and the creation of employment opportunities, not only through its dealer network, but also

through ancillary industries.

TKM's growth since inception can be attributed to one simple, yet important aspect of its business

philosophy -"Customer First". While managing growth, TKM has maintained its commitment to

provide quality products at a reasonable price and has made every effort to meet changes in customer

needs.

TKM firmly believes that the success of this venture depends on providing high quality products and

services to all valued customers through the efforts of its team members.

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together"

philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims

to further contribute to progress in the Indian automotive industry, realise greater employment

opportunities for local citizens, improve the quality of life of the team members and promote robust

economic activity in India.

Kristu Jayanti College


STUDY DETAILS

OBJECTIVES OF THE STUDY

To identify the organizational culture and structure of Toyota Kirloskar Motor, Bidadi

To study the various departments and their functions.

To study about the various products and services offered by the company.

To study the day to day activities of Toyota Kirloskar Motor.

To make a SWOT analysis of this organization to understand and suggest measures to

overcome the weaknesses and threats within the scope of this study.

SCOPE OF THE STUDY

Useful for academic purpose and further reference.

Provides information about the functioning of the Automobile industry in India.

LIMITATIONS

Time was a limiting factor during the study.

Some core data could not be collected due to confidentiality policies of the company.



INDUSTRY PROFILE

The automotive industry designs, develops, manufactures, markets, and sells the world's motor

vehicles. In 2015 estimated rate of growth of India auto industry is going to be 10 percent. Auto

industry in India has been hit hard by ongoing global financial recession. Sales figures of India

automobile industry for December 2008 have shown devastating after effects of global financial

slowdown. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles

were produced worldwide. In 2007, a total of 71.9 million new automobiles were sold worldwide:

22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in

Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North

America and Japan were stagnant, while those in South America and Asia grew strongly. Of the

major markets, Russia, Brazil, India and China saw the most rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there were about 806

million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and

diesel fuel yearly. The numbers are increasing rapidly, especially in China and India. In the opinion

of some, urban transport systems based around the car have proved unsustainable, consuming

excessive energy, affecting the health of populations, and delivering a declining level of service

despite increasing investments. Many of these negative impacts fall disproportionately on those

social groups who are also least likely to own and drive cars. The sustainable transport movement

focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry are experiencing a

combination of pricing pressures from raw material costs and changes in consumer buying habits.

The industry is also facing increasing external competition from the public transport sector, as

consumers re-evaluate their private vehicle usage. Roughly half of the US's fifty one light vehicle

plants are projected to permanently close in the coming years with the loss of another 200,000 jobs in

the sector, on top of the 560,000 jobs lost this decade.



AUTOMOTIVE INDUSTRY IN INDIA

The Automotive industry in India is one of the largest in the world and one of the fastest growing

globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and

exports about 2.33 million every year. It is the world's second largest manufacturer of motorcycles,

with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle

manufacturing industry is the seventh largest in the world, with an annual production of more than

3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the

sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three

million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter

of passenger cars, behind Japan, South Korea, and Thailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive

vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second

fastest growing automobile market in the world. According to the Society of Indian Automobile

Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more

than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with

approximately 611 million vehicles on the nation's roads.

A chunk of India's car manufacturing industry is based in and around Chennai, also known as the

"Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in

the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent of the

country's automotive exports. Gurgaon and Manesar in Haryana are hubs where all of the Maruti

Suzuki cars in India are manufactured. The Chaka corridor near Pune, Maharashtra is another

vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and

Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants

in the area. Ahmedabad with the Tata Nano plant

General Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan

Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive

manufacturing regions around the country.


http://en.wikipedia.org/wiki/Automotive_industry_in_India

http://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limited

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/Honda_Siel_Cars_India

http://en.wikipedia.org/wiki/Noida

http://en.wikipedia.org/wiki/Hindustan_Motors

http://en.wikipedia.org/wiki/Hindustan_Motors

http://en.wikipedia.org/wiki/Kolkatta

http://en.wikipedia.org/wiki/Volkswagen_India

http://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limited

http://en.wikipedia.org/wiki/Audi_India

http://en.wikipedia.org/wiki/Aurangabad,_Maharashtra

http://en.wikipedia.org/wiki/General_Motors_India_Private_Limited

http://en.wikipedia.org/wiki/Tata_Nano

http://en.wikipedia.org/wiki/Ahmedabad

http://en.wikipedia.org/wiki/Force_Motors

http://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limited

http://en.wikipedia.org/wiki/Land_Rover

http://en.wikipedia.org/wiki/Mercedes-Benz_India

http://en.wikipedia.org/wiki/Tata_Motors

http://en.wikipedia.org/wiki/Mahindra_and_Mahindra

http://en.wikipedia.org/wiki/Mahindra_and_Mahindra

http://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limited

http://en.wikipedia.org/wiki/Volkswagen_India

http://en.wikipedia.org/wiki/General_Motors_India_Private_Limited

http://en.wikipedia.org/wiki/Maharashtra

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Manesar

http://en.wikipedia.org/wiki/Gurgaon

http://en.wikipedia.org/wiki/BMW_India_Private_Limited

http://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limited

http://en.wikipedia.org/wiki/Renault_India_Private_Limited

http://en.wikipedia.org/wiki/Detroit

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Indian_Road_Network

http://en.wikipedia.org/wiki/Thailand

http://en.wikipedia.org/wiki/South_Korea

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Automobile

http://en.wikipedia.org/wiki/Asia

http://en.wikipedia.org/wiki/Automotive_industry

http://en.wikipedia.org/wiki/Motorcycle

http://en.wikipedia.org/wiki/India


COMPANY PROFILE

HISTORY OF TOYOTA

Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first power loom and in

the process revolutionised the country's textile industry. January 1918 saw him create the Toyoda

Spinning and Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi fulfilled his

lifelong dream of building an automatic loom in 1924. The establishment of Toyoda Automatic

Loom Works followed in 1926.

Kiichiro was also an innovator, and the visits he made to Europe and the USA in the 1920s

introduced him to the automotive industry. With the £100,000 that Sakichi Toyoda received for

selling the patent rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor

Corporation, which was established in 1937.

One of the greatest legacies left by Kiichiro Toyoda, apart from TMC itself, is the “ Toyota

Production System” (TPS) and Kiichiro's "just- in-time" (JIT) philosophy -producing only precise

quantities of already ordered items with the absolute minimum of waste viz. a key factor in the

system's development. Progressively, the ‘Toyota Production System’ began to be adopted by the

automotive industry across the world.

Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the largest

vehicle manufacturer in Japan with over 40% market share. Toyota began to make inroads into



foreign markets in the late 1950s. The first Crown models arrived in the USA in 1957, and by 1965,

with models such as the Corolla, Toyota began to build its reputation and sales to rival those of

domestic producers. The first Toyota imported into Europe was via Denmark in 1963. Toyota has

continued to grow in Europe's sophisticated and complex market, and in 2000 the company delivered

its ten millionth cars to a customer in Germany. In fact, growth is currently one of the main words in

Toyota's European vocabulary .Toyota is number one for customer satisfaction in the majority of

European countries and has built an excellent reputation across Europe for reliability and customer

service. This enviable reputation, along with the support of a network of more than 25 distributors

and 3,500 sales outlets, are important factors in supporting Toyota's European sales growth in the

coming years. In less than 70 years, Toyota Motor has gone from being a tiny spin-off of a textile

loom maker to the world's biggest automaker, guided by a culture of "kaizen", or continuous

improvement and a tireless effort to eliminate waste.

We see this corporate tradition continue through decades of its existence. Since the company

manufactured its first passenger vehicle in 1936, Toyota has continuously pursued the number one

position for total customer satisfaction in all areas, ranging from manufacturing and products to sales

and service. Toyota exported its first Japanese-made passenger car to the United States in 1957.

Since then, Toyota has steadily expanded its global presence with the establishment of overseas

bases.

Toyota's Lexus and Toyota branded vehicles rank annually among the world's highest quality cars in

third party surveys of customer satisfaction. Using such success as a springboard, Toyota is pursuing

a policy of sustained development and hopes to use innovation and strong R & D to create cars that

are greener, safer and more fun to drive.

As a global company, Toyota realizes that local commitment is a prerequisite to success on a

worldwide scale. Toyota's activities are highly appreciated around the world, a result of the

company's devotion to customer-oriented activities and social contributions in every market it

operates.



HISTORY OF THE KIRLOSKAR GROUP

The Kirloskar Group is India’s largest engineering and construction conglomerate. The Kirloskar

Group is made up of 8 major group companies which export to over 70 countries. The Indian

promoter Kirloskar group is a century old industrial legacy having a strong presence in various

segments of engineering industry. The Kirloskar group is engaged in manufacturing of transformers,

electric motors, diesel engine, compressor, machine tools etc. it also has its presence in industrial

casting and pollution control equipment manufacturing. The group is mainly concentrated its

manufacturing facilities in and around Karnataka and Maharashtra

Today, the Kirloskar Group is a conglomerate with interests across a diverse range of industries. It is

still spurred by the simple yet profound ethic born with Laxmanrao Kirloskar that where there is will

there are many ways.



TOYOTA KIRLOSKAR MOTOR

LOGO:

Toyota Kirloskar Motor Pvt. Ltd

TKM is a joint venture between TMC, Japan and Kirloskar Group, India.

As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar

Motor Private Limited (TKM) aims to play a major role in the development of the automotive

industry and the creation of employment opportunities, not only through its dealer network, but also

through ancillary industries.

TKM's growth since inception can be attributed to one simple, yet important aspect of its business

philosophy -" Customer First". While managing growth, TKM has maintained its commitment to



provide quality products at a reasonable price and has made every effort to meet changes in customer

needs.

TKM firmly believes that the success of this venture depends on providing high quality products and

services to all valued customers through the efforts of its team members.

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing Together"

philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims

to further contribute to progress in the Indian automotive industry, realise greater employment

opportunities for local citizens, improve the quality of life of the team members and promote robust


All Toyota employees are expected to embody these values in their daily work, including

environmental protection activities. To "respect" the environment, we go to the source to identify and

analyse problems ("Genchi Genbutsu"), move forward to "challenge" conventional ideas and old

habits, to improve further ("kaizen") through "teamwork."

The framework provided by ‘The Toyota Way’ enables our company to respond to, among other

things, the environmental challenges at various stages of the life-cycle of a vehicle. These include

greenhouse gas emissions, waste reduction, increased recycling and the banning of hazardous

substance use in parts and components. These challenges will have inevitable consequences for

Toyota's organisation and employees, and we must balance them with our desire for future growth.

In 1992, the Toyota Guiding Principles were established in direct response to the international

initiatives agreed to at the Rio 'Earth Summit.' This summit focussed on the potential for a clash

between trade and environmental rules, and resulted in a statement of principles about forest

management, conservation and sustainable development.

The Toyota Guiding Principles are a cornerstone of our corporate management philosophy. These

principles were updated in 1997, to ensure they continue to provide Toyota with a clear path towards

achieving sustainable development.

These principles have been explored and developed in Toyota's Global Vision 2015, adopted in April

2008, which proposes a series of long-term policies on the theme of "Innovation into the Future."



Toyota's Global Vision 2015 guides management in its response to long-term social changes,

combining consideration for the environment, the benefit to our customers of value-added products

and the encouragement of our employees through shared prosperity and social involvement.

Based on the Guiding Principles, which codify Toyota's business spirit, the Toyota Earth Charter

(adopted in 1992 and revised in 1997) embodies a comprehensive approach to global environmental

issues. It outlines Toyota's basic policy and action guidelines towards effective environmental

management and improvements. The Toyota Earth Charter underlines a commitment to

environmental excellence, not only through broad principles, but in concrete examples of what can

be done through action guidelines. In connection with the Toyota Guiding Principles and the Toyota

Earth Charter, a European Environmental Policy was developed as a means of linking principles,

goals, targets and action plans with management structures and systems.

TKM firmly believes that employees are the main source of strength for the organisation. The human

resources management in Toyota seeks to create a corporate culture where values such as

"Continuous Improvement" and "Respect for People" are fully reflected in all actual corporate and

individual activities. The company takes maximum care to ensure stability of employment and

strives to improve working conditions.

To develop human resources and improve the technical skills of its employees, TKM's young team

members are regularly sent to Japan, Indonesia and Taiwan for training programs. More than 425

team members have benefited from such programs at various Toyota plants worldwide. TKM also

believes in continuously improving its products and practices. Every team member is encouraged to

give suggestions to improve the product, efficiency of processes or working conditions. They are

also appropriately rewarded for the same. Thus TKM seeks to progress by empowering its

employees.

Toyota Kirloskar motor (TKM) has the proud heritage of both these fine establishments. The

company, according to its mission statement aims to play a major role in the development of the

automotive industry and the creation of employment opportunities, not only through its dealer

network, but also through ancillary industries with a business philosophy of ‘Putting Customer First’.

At present the Camry, Corolla, Innova and Prado are the successful cars of Toyota on Indian roads.

The Corolla and Innova are produced at TKM whereas Toyota Camry and Land Cruiser Prado are

imported as complete built units.



Also, TKM is opened a second new plant in 2oo8 marking the beginning of a second era for TKM. It

is poised to be not just a plant, but also a commitment to society and the earth, aiming to create a

new motorization future for India. Toyota’s new plant is playing a significant role in promoting

employment and technology transfer in India.

TOYOTA KIRLOSKAR MOTORS PVT LTD QUICK FACTS

Date Of Establishment 6-Oct-97

Chairman Mr. Fujio Cho

Vice Chairman Mr. Vikram S Kirloskar

Managing Director Mr. H. Nakagawa

Deputy MD'sMr. Sandeep Singh

Mr. S. Tomonaga

DMD, Commercial Mr. Shekar Viswanathan

Paid-In Capital Rs. 7 billion

Shareholders

Employees

Average Life of the Plant

Toyota Motor Corporation (89% equity)

Kirloskar Group (11% equity)

4986 members as per June 2010

29 Years



LOCATION AND CONTACT DETAILS

The Toyota Kirloskar Motors manufacturing plant is situated on the outskirts of Bangalore City in

the Bidadi Industrial Area of Ramanagar taluk, Karnataka. It is spread over an expanse of 432 acres

of land (approx 1.744848 sq. mts) of which approximately 20 percent has been utilized presently for

phase 1. The surrounding environment consists of lush greenery and hillocks dotted with beautiful

trees and vegetation since it is situated on the green belt. The natural setting is synonymous with

Toyotas eco conscious approach to its business of manufacturing automobiles and complements the

well planned and built facility.

TKM ADDRESS AND CONTACT DETAILS

TOYOTA KIRLOSKAR MOTOR PVT.LTD (TKM)

PLOT NO.1, BIDADI INDUSTRIAL AREA, BIDADI

RAMANAGAR DISTRICT

PIN-562 109, KARNATAKA INDIA

TEL:+91-80-6629 2929

WWW.TOYOTABHARAT.COM

BANGALORE UB CITY OFFICE

(Sales and marketing div)

10TH FLOOR, CANBERRA BLOCK

UB CITY, NO.24 VITTAL MALYA ROAD

BANGALORE -560 001

KARNATAKA INDIA


http://WWW.TOYOTABHARAT.COM/

tel:+91-80-6629


ORGANISATIONAL PERFORMANCE:

MARKET SHARE:

COMPANY MKT SHAREMARUTHI SUZUKI 37.1

HYUNDAI 16.1TATA 11.7

MAH & MAH 11.6T0YOTA 6.4

GENERAL MOTORS 4.3FORD 3.7

VOLKS WAGEN 2.9HONDA 1.8SKODA 1.4NISSAN 0.9

FIAT 0.8BMW 0.5


PRODUCTION: 80,000 UNITSSALES: 80,000 UNITSEFFICIENCY: 94%


VISION and MISSION

VISION

The vision of Toyota Kirloskar Motor is to:

1. Contribute to Indian industry and economy, technology transfer, HRD, Global standard

vehicles at a competitive price.

2. Contribute to the improvement, well being and stability of the team members.

3. Contribute to the overall growth of its business associates and its promoters.

MISSION

The Mission of Toyota Kirloskar Motor is to:

1. Design, manufacture and market automobile in India and in overseas market, to maintain a

high quality, to meet the expectations of the customers, always delight the customer by

exceeding the quality level by providing goods and effective after sale service.

2. Perceive Kizen, maintaining flexible organisation, working schedule and staffing plan which

enables the company to respond to fluctuations of production volumes and increase the

productivity.

3. Providing a conducive and safe working environment where all team members can work with

safety with a sense of security.

4. Provide the highest possible value addition to customers, team members, investors and

community at large.



THE TOYOTA BUSINESS PRINCIPLES-

Creating a Prosperous Society Together by Making Things and Making Automobiles -

Toyota hopes that the 21st century will be truly prosperous for society, and aims to grow as a

company together with its stakeholders, including customers, shareholders, business partners, and

employees, through making things and making automobiles, while seeking harmony with people,

society, the global environment and the world economy.

In order to put these management principles into practice, the "Guiding Principles at Toyota Motor

Corporation" were established as the fundamental management policy (see below). These principles

were adopted in 1992 to codify the business spirit handed down since the company's foundation, and

revised in 1997 to add the stipulation of legal compliance.

THE TOYODA PERCEPTS:

1. Be contributive to the development and the welfare of the country by working together,

regardless of position, in faithfully fulfilling your duties.

2. Be ahead of the times through endless creativity, inquisitiveness and pursuit of improvement.

3. Be practical and avoid frivolity.

4. Be kind and generous; strive to create a warm, home like atmosphere.

5. Be reverent, and show gratitude for things great and small in thought and deed.

The Spirit of the Toyota Precepts Passed on since Toyota's Foundation -

The Toyoda Precepts, passed on from the time of Toyota's foundation up to the present day, have

acted as the core of Toyota management. The precepts capture the thinking of the founder of the

Toyota Group, Sakichi Toyoda, and have become the basis of the Guiding Principles at Toyota

Motor Corporation.

Initially this did not have a definite shape. However, with the growth of the scope of the company,

the need arose for the principles to be codified so that they could be propagated among employees.

Risaburo Toyoda and Kiichiro Toyoda, in the pioneer days of the company, gathered together the

teachings of Sakichi Toyoda and published them in the form of the Toyoda Precepts on October 30,

1935, the fifth anniversary of his death.



Compliance -

Toyota defines compliance as "Comply with ethics, laws and internal rules/policies in engaging in

business" — in other words, not acts contrary to society's rules, nor carries out actions that could be

criticized by society. Toyota believes that to be a good corporate citizen, it is essential that

compliance permeates the entire company.

Infiltrating the Management Principles -

The Guiding Principles at Toyota, which are based on the Toyoda Precepts, clearly announce

Toyota's management concepts. The first clause of them is "Honour the language and spirit of the

law of every nation and undertake open and fair corporate activities to be a good corporate citizen of

the world" — establishing compliance as one of Toyota's management principles. Executive

management takes every opportunity, e.g. the New Year's greeting each year, to disseminate the

management principles. And throughout the year, Toyota works to continually advance its

management principles through a variety of education and training programs and on-the-job training.



SOCIAL CONTRIBUTION

Toyota Kirloskar has always striven to go beyond the business of just making great cars .In fact

Toyota has been known the world over for having taken issues pertaining to care for people, the

environment and the society very seriously and this culture is deeply rooted in the culture of Toyota.

Given below are a few significant social contribution activities undertaken by Toyota Kirloskar

Motor:

Local Area Development –

TKM uses every opportunity it gets to partner with other companies, schools, colleges and

businesses to support community development programmes in and around its production facility.

These encompass a wide array of activities that primarily include providing food, clothing and

shelter to the underprivileged masses. Toyota has also extended its helping hand to the state police

department by rebuilding the Kengeri police station .The renovated structure now is bigger in area

and is better equipped functionally and aesthetically ,sporting new furniture and facilities.

Educational Support –

Toyota understands the important role that education plays in shaping society. Hence, it has taken

many steps to promote education among the backward sections of society and spread literacy. In this

regard Tkm has reconstructed a residential school at Bidadi that houses close to a hundred

underprivileged students, moreover it has also partnered with local schools in and around its plant at

Bidadi especially in Ramanagara district in contributing books, bags, stationary and even computers

for school children.

Since 2003 TKM came with Toyota Technical Training Institute (TTTI) of providing technical

education to 64 poor students every year in their premises after their SSLC education and provide the

job opportunities to them after their education and training.



Safety Initiatives –

Toyota has successfully pioneered an interactive learning programme on traffic safety for young

school children called the Toyota Safety Education Programme or TSEP. The primary purpose of the

initiative was to educate and spread awareness on basic road safety and awareness among young

school children throughout the numerous schools in Bangalore.

Disaster Relief –

Toyota Kirloskar Motors has contributed generously in the past to the victims of natural calamities .It

had contributed financial aid to the tune of twenty five lakhs to the Prime ministers relief fund

towards the victims of the Tsunami disaster and it also played a pivotal role in the distribution of

food, water and clothing in the earthquake hit areas of Gujarat and recently they supported financial

support when Tsunami hit Japan in 2011.

Environmental Protection and Conservation –

Toyota has taken numerous steps to spread eco-consciousness that include tree planting drives and

organizing functions and seminars to educate people on proper waste disposal, rain water harvesting

and using alternate clean sources of energy. In fact during my study visits to the Toyota plant

preparations were being made towards conducting an ‘Aforestration drive’. Toyota has also begun an

‘Eco spirit campaign’ which works at promoting environmental awareness among school children

again through fun yet innovative learning methods such as painting and quiz competitions .

Promoting the Japanese Language –

Tkm has agreed to grant financial aid to the Bangalore University in assisting in the development of

the Japanese language for the period between 2004 and 2007 by conducting courses and programmes

and sponsorship of a tutor and necessary study resources to further its cause. In fact Tkm has signed

an MOU with Bangalore University in this regard.



Social and Industrial Growth –

Toyota aims to develop and strengthen the Indian automobile industry through its product offerings

and creation of large employment opportunities which will be instrumental in its overall mission of

promoting sustained and shared growth and thereby improving the quality of life and affect a robust




AWARDS AND RECOGNITION

Toyota as a pioneer in automobile design and manufacture has been recipient to numerous coveted

awards and recognitions .This fact is evident when one enters the TKM plant reception premises

Given below is the list of awards and recognition that Toyota has received in the past –

1. Business Standard Motoring : Import Car Of The Year Award - Camry 2007

2. BBC-Top Gear: Car Design Of The Year - Camry 2007

3. CNBC-TV18 Auto car: Best Design and Styling- Camry 2007

4. BBC-Top Gear : Best Design Of The Year - Camry 2006

5. Business Standard Motoring: MPV Of The Year - Innova 2006

6. NDTV - Car Awards: Best MPV Of The Year – Toyota Innova 2006

7. Overdrive: UV Of The Year For Innova 2006

8. Auto Monitor -CSR Initiative Of The Year 2006



9. CNBC Auto car Awards: Technologically Advanced Car - Land Cruiser Prado 2005

10. Business Standard Motoring : Best Executive Car 2004 & 2005 (Corolla) Best MUV

2005 (Innova)

11. TNS Award – Total Customer Satisfaction Study: Best Executive Car 2004 & 2005

(Corolla) Best MUV 2005 (Innova)

12. Business Standard Motoring: Best Executive Car 2004 & 2005 (Corolla) Best MUV

2005 (Innova)

13. TNS Award – Total Customer Satisfaction Study : Qualis, Corolla & Camry 2004

14. Business Standard Motoring: Best Import Car Of The Year – Land Cruiser Prado

2004

15. JD Power Asia Pacific: IQS Study – Corolla 2004

16. JD Power APEAL: Corolla 2004

17. JD Power Initial Quality Survey: Qualis 2003

18. Business Standard Motoring : Best Import Car Of The Year – Camry 2003

19. NFO Automotive: Highest Resale Value Car – Qualis 2003



20. JD Power APEAL Survey: Corolla 2003

21. JD Power India Initial Quality Award: Qualis 2002

22. JD Power India Initial Quality Award: Qualis 2001

23. Overdrive Best Utility Vehicle: Qualis 2001

24. NFO Automotive: Best MUV – Qualis 2001

25. JD Power Initial Quality Survey: Qualis 2000

26. JD Power India Appeal Study: Qualis - 2000 & 2002

27. Business Standard Motoring: Best MUV Introduction – Qualis – 2000

28. Overdrive Best New Introduction New Model: Qualis – 2000

29. NFO Automotive: Total Customer Satisfaction Study – Qualis 2000

PRODUCT PROFILE

Toyota Kirloskar Motors is an automobile manufacturer engaged in the production of technologically

advanced quality automobiles. The quest for innovation is the foundation for Toyota's new

technology concepts. Ever since the company manufactured its first passenger vehicle in 1936,



Toyota has continuously pursued the number one position for total customer satisfaction in all areas,

ranging from manufacturing and products to sales and service. Toyota is today pursuing a policy of

sustained development and aims to use innovation and strong R & D to create cars that are greener,

safer and more fun to drive.

Engine technology is one of Toyota's greatest assets. Toyota's award-winning engine range reflects

the high design and quality standards set by its engineers. Toyota engines are developed for

performance and responsiveness with a big focus on reducing emissions and saving fuel. Today

Toyota brings these benefits to customers with advanced variable valve technology (VVT-i) petrol

engines, common-rail turbo diesels (D-4D), and lately with the unique Toyota Hybrid System (THS)

in developed markets.

Safety is top priority for Toyota .Advanced steering, braking and traction control technologies help

keep Toyota cars on the road and out of trouble. In addition, every new Toyota model is carefully

designed to maximize safety, using computer simulations and real-life crash tests. The body and

chassis are built to absorb impact and provide maximum occupant protection, whilst SRS airbags are

in place in case of a collision.

The Toyota Kirloskar Motors product line currently comprises of seven masterpieces of automobile

design and engineering .These are:

The Innova

The Corolla Altis

The Fortuner

The Etios sedan

The Etios Liva

THE INNOVA



After the success of the Quails, Toyota rolled out the Innova, a category-first to hit Indian roads.

Built with hundreds of innovations from around the globe, the versatile brought together SUV like

capabilities with sedan like luxuries, in all it is one truly desirable MPV.

The Innova is a result of a unique process that has broken new grounds in the way automobiles are

created. The Innova brings together qualities never before seen together in an automobile. Fantastic

ride quality and luxury coupled with versatile space; superior performance and driving pleasure with

world class safety, advanced styling with solid durability.

THE COROLLA ALTIS



The world’s largest selling car of all time, Toyota corolla Altis, enjoys huge success in India and was

voted executive car of the year two years in a row .The all new Corolla Altis is a befitting new

generation of the corolla sedan tradition designed to inspire envy on every road. Once in a lifetime,

comes a car that redefines luxury and style. Which looks and feels like it belongs to a class above?

and provides a driving experience so far beyond anything you’ve experienced, that you’ll either be

overcome with awe, or stunned by envy Presenting the all-new Corolla Altis.

THE FORTUNER



The Toyota Fortuner, also known as the Toyota SW4, is a medium-sized SUV based on the Toyota

Hilux. Originally assembled only in Thailand, but later also in Indonesia and other countries, the

Fortuner is built on the well-established platform of the Toyota Hilux pickup truck. It features three

rows of seats and is available in rear-wheel drive or four-wheel drive among others. The Fortuner is

part of Toyota's IMV project in Thailand, which also includes the Toyota Hiluxand the Kijang

Innova (in Indonesia). The vehicle was designed by Toyota Technical Centre Australia. A number of

engine options are available depending on the country of sale, including a 2.7 litre 2TR-FE and 4.0

litre 1GR-FE V6 petrol with Variable Valve Timing and 2.5 2KD-FTV and 3.0 1KD-FTV common

rail turbocharger diesel models.

THE ETIOS SEDAN


http://en.wikipedia.org/wiki/Common_rail

http://en.wikipedia.org/wiki/Common_rail

http://en.wikipedia.org/wiki/Variable_Valve_Timing

http://en.wikipedia.org/wiki/Toyota_Technical_Centre_Australia

http://en.wikipedia.org/wiki/Toyota_Innova

http://en.wikipedia.org/wiki/Toyota_Innova

http://en.wikipedia.org/wiki/Toyota_Hilux

http://en.wikipedia.org/wiki/Four-wheel_drive

http://en.wikipedia.org/wiki/Pickup_truck




http://en.wikipedia.org/wiki/SUV


The Toyota Etios is a passenger car developed by Toyota for India. The sedan was launched in

December 2010, and the Toyota Etios Liva hatchback was launched in June 2011.

Manufactured in Bangalore, Etios is the biggest such project in India by Toyota today, and is a direct

assault on Suzuki's dominance in this market.

The Etios nameplate comes from the Greek "Ethos", meaning spirit, character, and ideas.

The Etios sedan uses the 2NR-FE 1.5 L DOHC 4-cylinder engine. This dual VVT-i 16V gasoline

engine with electric fuel injection produces 66 kW (90 PS). This is mated to 5 speed manual

gearbox.

The Engine and Transmission are currently imported from Japan, but Toyota is setting up a Rs 500

crore plant to manufacture engines and transmissions in Bangalore from 2012.

THE ETIOS LIVA


http://en.wikipedia.org/wiki/Fuel_injection

http://en.wikipedia.org/wiki/Toyota_NR_engine#2NR-FE

http://en.wikipedia.org/wiki/Suzuki

http://en.wikipedia.org/wiki/Toyota

http://en.wikipedia.org/wiki/Bangalore

http://en.wikipedia.org/wiki/Hatchback


The Etios Liva hatchback was launched in New Delhi on June 27, 2011 with a 4 cylinder 16 valve

DOHC engine that delivers a fuel efficiency of 18.31 km/L. A diesel version is planned. Trim levels

for the Etios Liva are: J, G, G+, V and VX.

The Etios Liva hatchback uses the 3NR-FE 1.2 L DOHC 4-cylinder engine. This dual VVT-i 16V

gasoline engine with electric fuel injection produces 59 kW (80 PS). This is mated to 5 speed manual

gearbox.

ORGANIZATIONAL CULTURE


http://en.wikipedia.org/wiki/Fuel_injection

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Conditions Created by Toyota's Well-Established Business Culture

Systems Supporting the Business Culture -



In order to maintain and further enhance this well-established business culture, it is important that

both the system for human resources development and the system for establishing and maintaining

compliance function continuously.

In terms of human resources development, Toyota conducts on-the-job training and educational

programs categorized by position in order to raise and strengthen the awareness of being a Toyota

employee. Also, in order to establish and maintain compliance, Toyota has clarified concepts that

serve as a guideline to conduct in the Code of Conduct for Toyota Employees, and holds meetings of

the Corporate Ethics Committee when necessary.

The Code of Conduct for Toyota Employees -

The Code of Conduct for Toyota Employees organizes the employees' basic attitudes necessary for

putting the Guiding Principles at Toyota into practice. This is not a list of "don'ts," but rather a

positive explanation of rules to be observed and actions to be taken. The guidelines also indicate

departments’ employees can consult with when they are having difficulty making a decision and

enable employees to confirm the appropriateness of their conduct. Toyota also has conduct

guidelines for individual divisions that specify in greater detail specific rules and actions, taking into

consideration the unique characteristics of each division.

[Promotional Structures]

Specific organizations and a hotline have been established in order to thoroughly carry out

compliance at all levels of the company, from executive management to the rank-and-file employees.

Proactive Prevention by the Corporate Ethics Committee -

The Corporate Ethics Committee, which includes all executive management from the executive vice

president level and higher as well as corporate auditors, works to prevent risks associated with legal

and ethical violations, while overseeing all general corporate activities from the perspective of

compliance. Records of proceedings are announced at management meetings and directors and

managing officers disseminate information to the divisions they oversee when necessary.

Consolidated Support by Multiple Divisions -



In order to ensure proper compliance, a number of different divisions —including the Legal

Division, Accounting Division, Corporate Planning Division, Human Resources Division, and

Global Human Resources Division— work collaboratively to provide support and undertake

awareness-enhancing activities.

Revision of the Charter for Good Corporate Behaviour -

The Charter for Good Corporate Behaviour adopted by the Nippon Keidanren (Japan Business

Federation) was revised in October 2002. One element of the revision was the need for new

principles due to the current economic impasse in Japan, the development of a borderless global

economy, and the advance of information technology. Toyota Chairman Hiroshi Okuda serves as

chairman of the Nippon Keidanren and played a leading role in the revision of the Charter. Toyota is

adopting its own internal provisions, taking into consideration the revised Charter.

THE FOURTEEN PRINCIPLES OF TOYOTA



1. Long – Term Philosophy

2. The Right Process Will Produce the Right Results

3. Create Continuous Process Flow to Bring Problems to the Surface

4. Use “Pull” Systems to avoid Over Production

5. Level out the Work Load (Heijunka)

6. Build a Culture of Stopping to Fix Problems, to get Quality Right the First time

7. Standardized Tasks are the foundation for Continuous Improvement

8. Employee Empowerment

9. Use Visual Control so no Problems are Hidden

10. Use Only Reliable, Thoroughly Tested Technology that Serves your People and Processes

11. Add Value to the Organisation by Developing Your People and Partners

12. Grow Leaders who thoroughly understand the Work, Live the Philosophy and Teach it to

Others

13. Develop Exceptional People and Teams who follow your Company’s Philosophy

14. Respect your Extended Network of Partners and Suppliers by challenging them and Helping

them Improve.

ORGANISATIONAL DESIGN AND STRUCTURE



Organisational design is fundamentally the manner in which a management achieves the right

combination of differentiation and integration in the organizations operations in response to the level

of uncertainty in its external environment. Differentiation here refers to the subdivision of functional

or departmental units each concentrating on a particular aspect of the organizations operations and

Integration refers to the linking of differentiated units to achieve unity of effort in working towards

organizational goals .In times of high uncertainty greater organizational effectiveness is achieved

through high differentiation and high integration and in times of low uncertainty organizational

effectiveness is achieved through low differentiation and low integration.

Organisational structure is the formal and informal framework of policies and rules within which an

organization arranges its lines of authority and communication and allocates rights and duties .It

determines the manner and extent to which roles, powers and responsibilities are delegated,

controlled and co-ordinated and how information flows between various levels of

management .Hence this structure depends entirely on the organizations objectives and the strategy

chosen to achieve them. In a ‘centralized structure ‘the decision making power is concentrated in the

top layer of management and tight control is exercised over departments and divisions .In a

decentralized structure the decision making power is distributed and the departments and divisions

have varying degrees of autonomy...

The organizational structure at TKM is pyramidcal and considerably flat, and this has its own set of

advantages such as more frequent promotions and continuous change in responsibilities and growth

hierarchy. Moreover the organizational structure is on the lines of a lean enterprise that fosters

communication across all levels staying true to Toyotas ideology of openness and oneness .The flat

structure also promotes effective communication and teamwork and is inorganic in nature.

There is a high degree of differentiation coupled with an equal high degree of integration followed.

Also one striking observation is the unrigid organizational design that facilitates openness,

communication and free flow of ideas between all levels and cadres of the organisation. Also another

very practical approach followed at TKM is the job and role rotation process wherein every

employee gets cross trained across all areas and responsibilities to enable greater understanding and

respect for each other’s roles and responsibilities. Another notable observation is the large presence

of Japanese employee’s onsite as this ensures the Toyota system is nurtured and ingrained in TKMs

culture and in the top management.

The diagram on the following page shows the organizational chart as observed in Toyota Kirloskar

Motor Ltd.



TOYOTA ORGANISATIONAL CHART

POLICIES, PROCEDURES AND METHODOLOGY

The Toyota way



The Toyota Way is a management philosophy used by the Toyota Corporation worldwide. The main

idea is to base management decisions on a “philosophical sense of purpose”, to think long term, to

have a process for solving problems, to add value to the organization by developing its people and to

recognize that continuously solving root problems drives organizational learning. The two pillars of

The Toyota Way are Continuous Improvement and Respect for People.

Toyota Production System (TPS)

The production system developed by Toyota Motor Corporation to provide best quality, lowest cost,

and shortest lead time through the elimination of waste.



TPS is comprised of two pillars, Just-in-Time and Jidoka, and is often illustrated with the "house"

shown below. TPS is maintained and improved through iterations of standardized work and kaizen,

following PDCA, or the scientific method.

The concepts of Just-in-Time (JIT) and Jidoka both have their roots in the pre-war period. Sakichi

Toyoda,

founder of the Toyota group of companies, invented the concept of Jidoka in the early 20th Century

by incorporating a device on his automatic looms that would stop the loom from operation whenever

a thread broke. This enabled great improvements in quality and freed people up to do more value

creating work than simply monitoring machines for quality. Eventually, this simple concept found its

way into every machine, every production line, and every Toyota operation.

Kiichiro Toyoda, son of Sakichi and founder of the Toyota automobile business, developed the

concept of Just-in-Time in the 1930's. He decreed that Toyota operations would contain no excess

inventory and that Toyota would strive to work in partnership with suppliers to level production.

Under Ohno's leadership, JIT developed into a unique system of material and information flows to

control overproduction.

Some of the unique features of The Toyota Way are:

1. Kaizen : - It focuses on continuous improvement throughout all



Aspects of life. When applied to a workplace, Kaizen activities continually improve

all functions of a business from manufacturing to management. By improving

standardized activities and processes, Kaizen aims to eliminate waste. The Toyota

team relentlessly strives to conduct Kaizen activities.

2. Kanban : - It is a concept related to just–in–time (JIT) production.

Kanban is a part of a pull system that determines the supply, or production according to

the actual demand of the customers. A Kanban system is used as a demand signal

which immediately propagates through the supply chain. This can be used to ensure

that intermediate stocks are better managed.

3. Poka -yoke: - It means “fail-safing” – avoiding inadvertent errors, or a

method of preventing errors by putting limits on how an operation can be performed in

order to force the correct completion of the operation.

4. Genchi-Genbutsu : - It means “go and see for yourself” and it is an

integral part of the Toyota Production System. Toyota managers are expected to “go-

and-see” operations. Without experiencing the situation firsthand, managers will not

have an understanding of how it can be improved.

5. Jidoka : - It may be described as “intelligent automation”. At Toyota

this means that if an abnormal situation arises the machine stops and the worker will

stop the production line. Jidoka prevents the production of defective products,

eliminates overproduction and focuses attention on understanding the problem and

ensuring that it never recurs.

6. Heijunka : - It is a technique for reducing waste and is vital to the

development of production efficiency in the Toyota Production System. The general

idea is to produce intermediate goods at a constant rate, to allow further processing to

be carried out at a constant and predictable rate. This helps achieve the goal of

minimizing waste (MUDA), not overburdening people or the equipment (MURI)

and not creating uneven production levels (MURA)



JUST-IN-TIME

The "Just-In-Time" production philosophy is the foundation of the Toyota process. This concept

refers to the manufacturing and conveyance of only what is needed, when it is needed, and in the

amount needed. In addition, a minimum amount of inventory is kept on hand. This enhances

efficiency and allows quick response to change.

STANDARDIZED WORK

The Toyota Production System organizes all jobs around human motion and creates an efficient

production sequence without any "Muda." Work organized in such a way is called standardized

work. It consists of three elements: Takt-Time, Working Sequence, and Standard In-Process Stock.



Takt-Time

"Takt-Time" is the time, which should be taken to produce a component on one vehicle. This timing

mechanism is based on the monthly production schedule. Daily total operating time is figured based

on all machinery operating at 100% efficiency during regular working hours. The Takt time allows

us to produce many parts of many different types for use in vehicles on the production schedule and

to supply those parts to each process on the assembly line at the proper time. This keeps production

on schedule and permits flexible response to change in sales.

Takt Time =

Straight Time / Work Time (Seconds) #

Required Number of Production based on

Demand

# Time available/day/month



There had been this wide, long-standing recognition of Toyota as the premier automobile

manufacturer in terms of the unmatched combination of high quality, low cost, short lead-time, and

flexible production. Toyota Production System had been widely credited for Toyota's sustained

leadership in manufacturing performance. In addition, Toyota had been remarkably open in letting

outsiders study its operations. Many other auto companies had done major benchmarking studies,

and they had tried to implement their own forms of the Toyota Production System. There is the Ford

Production System, the Chrysler Operating System, and General Motors went so far as to establish a

joint venture with Toyota called NUMMI, approximately fifteen years ago.

However, despite Toyota's openness and the genuinely honest efforts by other companies over many

years to emulate Toyota, no one had yet matched Toyota in terms of having simultaneously high

quality, low-cost, short lead-time, and flexible production over time and broadly based across the

system. This shows how deeply TPS is ingrained in Toyota group companies and the impact is has

on the functioning of the corporation.



PRODUCTION FLOW

The following paragraphs will offer a brief explanation of the manufacturing process followed at the

TKM plant along with the systems and processes in place that make this facility and its ideologies

truly one of a kind. The production unit or ‘shop floor’ is primarily composed of the below divisions

1. Inventory Storage

2. Press Shop

3. Weld Shop

4. Paint Shop

5. Assembly Shop

6. Final Inspection

The plant follows a Product Flow Layout. This is also known as Lean manufacturing. The block

diagram of the plant is shown below:

1. Inventory Storage-



The parts that are required for the manufacturing of the vehicle are stored in the inventory.

Toyota follows the Just in Time production technique i.e. vehicles are produced according to

their demand. Therefore, the parts that are present in the inventory are only for that day’s

production and maybe the next day’s. This way the storage and maintenance cost is reduced.

2. Press Shop-

The basic function of the press shop is to press the sheet metal into the required shape. There are

4 stages in the press shop. The first two are stamping, in which the sheet metal is cut into

required size using templates called “DIES’ and holes are made. The 3 rd and 4th stages are press

stages. The machines that are used for pressing the sheet metal use hydraulic control since the

pressure required is high.

3. Weld Shop-

The weld shop is responsible for welding every single part of the vehicle. When the chassis is

welded the frame structure is held on a fixture which operates on the principle of pneumatic air

pressure. Then all the small parts to be fitted to the chassis are welded using butt welding. This

process is done manually. For body related welding there is a different segment. E.g. welding of

fenders etc. After the completion of welding, the body is inspected for defects. The door of the

body is fixed temporarily for painting purpose.

4. Paint Shop-

In the paint shop the complete body is dipped into a solution filled in a tank. This is done to

clean the body and make it corrosion proof. After this, primer coating is done which is performed

by a robot because the primer needs to be sprayed uniformly. A quality check is done to ensure

that uniform thickness of the paint is maintained.

5. Assembly Shop-



The assembly shop is responsible for the assembly of the various parts to make a vehicle. The

assembly shop consists of three production lines. These are:

a) Chassis assembly line

b) Body trim line

c) Final line

The chassis assembly line and the body trim line move side by side. On these lines, the various

parts, systems and sub assemblies of the chassis and the body are fitted. Once the assembly of the

various parts like door hinges, wire housing, engine, transmission etc. is completed, the chassis is

brought under the body and fitted. This procedure is called docking. After docking the vehicle is

taken to the final line where the other parts of the vehicle like safety glasses, carpet, doors etc.

are assembled. The VIN (Vehicle Identification Number) is punched onto the vehicle by a

machine during the final line assembly.

6. Final Inspection-

During final inspection, the entire vehicle is checked for any defects in weld, paint and

assembly. The engine is started and checked and the steering alignment is verified. Also a shower

test is performed to ensure that there are no leaks in the car. In case of any persisting problem,

the vehicle is sent to the repair shop where the defect is rectified.

CLASSIFICATION OF VARIOUS DEPARTMENTS



A number of divisions are responsible for the overall functioning of TKM. The various divisions at

TKM can be broadly divided into manufacturing divisions and the non-manufacturing divisions. The

various departments of the manufacturing department are intentionally located in the ground floor of

the plant facility as part of TKMs overall strategy due to its close proximity to the shop floor, all the

other divisions are housed in the first floor.

Manufacturing Divisions-

1. Product Design and Development Division

2. Quality Control Division

3. Plant Administration Division

4. Production Division

5. Quality Assurance division

6. Plant engineering and services department

Non-manufacturing Divisions-

General Administration Division

Finance and accounting Division

Purchase division

Marketing Division

Sales and Services Division

Human resources

The departments that fall under the manufacturing division are those that are primarily composed of

engineers and these function in a symbiotic way that aids in the design, manufacture and deployment

of its automobiles.

The non-manufacturing divisions are composed of teams that overlook the finance and manpower

planning and management.



Flow of material in TKM:-


TKM

SLC

Steel Suppliers

Suppliers/ job shop

TKM receiving

Local suppliers

Job works

Imports

Yard Dealers

P

T

W

A

INSP

P= press

W= weld

T= paint

A= assemble

In= inspection


PRODUCT PROMOTIONAL MEASURES

Just like any other automobile manufacturer, Toyota also promotes its fine products through

numerous video advertisements in all leading television channels and also through captivating print

ads in newspapers, magazines and other related publications.

RECRUITMENT AND MANPOWER PLANNING

TKMs RECRUITMENT PROCESS EXPLAINED –

I. MANPOWER REQUISITION

Manpower Requisition is basically of two types categorize based on both requirement and

sanction types, which can be bulleted as below:

Manpower Request – New vacancy

Manpower Request – Replacement (Against Resigned TM)



PROCESS FLOW CHART

HR – RECRUITMENT SECTION ACTIVITIES:

Consolidation of total manpower vacancies across company on a weekly basis.

Allocation of requirements to respective TMs of Recruitment to initiate the activity.

Study of job profile required & sourcing of profiles again respective vacancies.

Scrutiny of profiles by User div. Short listing & schedule interviews.

Selection, Medical Fitness Confirmation, Salary Negotiation & Offer release to candidates.

Post selection joining formalities includes arranging for initial stay & reimbursement of

joining expenses.

Establish network with external head hunters & educational institutions on a regular basis for

improving the sourcing activity.

Explore suitable options of hiring staffing agencies in pursuit of obtaining effective

manpower services.

Payment of all invoices & expenses incurred related to hiring

Contract Manpower Control – Office Section (Hiring, time-office management, payroll

activity to all Contract Staffs).


REPLACEMENT

Approval by:

Confirmation of Age, Job Grade, Job

Description, and Skill sets.

Sourcing of profiles

Screening by HR and User Division

NEW VACANCY

Approval by:Manpower Requisition by User Div.

(Enclosed Job Description)

Call for Interview

Selection as per Standard Interview Process


TRAINING MEASURES

At Tkm a tremendous emphasis is laid on training and development of employee’s .In fact a separate

structure called the “GURUKUL” has been set up solely for this purpose.

The unit is located a stones throw away from the main manufacturing plant and houses a huge data

bank of training resources and material. Expert trainers with extensive knowledge of the Toyota

production system, lean manufacture techniques and other vital nuances are constantly engaged in

imparting their know-how to new inductees and present staff who wish to sharpen their skill sets.

The facility houses numerous classrooms, meeting rooms and administrative offices that hold

training material in electronic and print format.

Besides these the ground floor interestingly holds a training block that mimics the actual shop floor

on a smaller scale ,this enables novices to learn and have hands on training in manufacturing skills

and techniques under higher degree of safety and the watchful eyes of training experts.

HRD MEASURES INCLUDING WELFARE MEASURES

POLICY AND PROCEDURES

1) (GPAI)Group personal accident insurance.

2) Group Medishield/Mediclaim insurance policy

3) Bank loan scheme (personal & vehicle loan).

4) Relocation scheme.

5) Uniform.

6) Canteen.

7) Commutation.

8) Other Welfare measures.



1) (GPAI)Group personal accident insurance.

GPAI is an insurance policy taken by the CO from an outside insurance agency to make available

medical support and financial assistance to TM’s in case they meet with an accident.

All TM’s of TKM are covered under this policy.

Salient features

1. Medical support

2. Insurance CO will reimburse full or part of medical expenses. No hospitalization is required

to make a claim.

3. Salary payment

4. TM’s absence from duty due to accident will not affect the salary as insurance CO reimburses

the same based on earning capacity as per the limit provided under insurance policy.

5. The policy is available anywhere in the world.

6. Coverage (capital sum insured): TM’S are covered based on the basis of 60 times the gross

earnings. However min coverage is Rs 10 lacks

BENEFITS

1. Loss of salary on a/c of accident –

2. admissible claim(temporary total

Disablement)

The Insurance CO will pay 1% of the Table C

benefits, subject to max of Rs 20,000 / week

as Temporary total disablement benefit

towards loss of salary on a/c of accident.

3. Medical expenses on a/c of accident

injury

10% of capital sum insured or 50% of the

admissible claim amount whichever is less.

4. Permanent partial disablement% of disablement as determined by the

doctor, subject to as % specified in the policy.

5. Permanent total disablement 100% of capital sum insured

6. Death(due to accident only) 100% of capital sum insured



2) Group Medishield / Mediclaim Insurance Policy

The Medishield Insurance policy covers reimbursement of in-patient hospitalization expenses

insured for treatment of illness or injury sustained.

Eligibility: All TM’s not covered under ESI act and family members consisting of spouse and two

children (1st & 2nd) are eligible for coverage under Group Medishield Insurance policy at co’s cost.

TM’s may opt for extension of insurance coverage for other dependant members of family at their

own cost.

The other dependants of the TM’s can only be included at the time of joining or during the renewal

of the policy every year.

Salient features

Pre & Post Hospitalization expenses:

Pre-Hospitalization expenses (up to 30 days prior to admission)

Post Hospitalization expenses (60 days after discharge) will be considered for reimbursement

except in case of maternity expenses.

Maternity Benefit: Rs 15000 for normal delivery, Rs 30000 for caesarian will be reimbursed.

Reimbursement is limited to medical expenses incurred during the period of hospitalization only.

Family floater policy: The max amt eligible is the total coverage of TM and his family.

Domiciliary hospitalization claims: Medical treatment for period exceeding three days for such

illness or injury which in normal course would require care and treatment at a hospital but

actually taken while confined at home in India is considered if the condition of the patient is such

that he cannot be moved to the hospital.

1. Pre existing disease coverage: The reimbursement of expenses, which are in pre existing

conditions at the time of joining, is applicable only if treatment is taken after 90 days from

the date of coverage.

2. Cashless Facility: The insured can avail the facility of hospitalization without making cash or

cheque payment.



3) Bank loan scheme (personal & vehicle loan)

Purpose: To support TM's during financial emergencies & help them to maintain & improve their

quality of life.

Develop a sense of belonging TM with TKM through mutual trust.

Applicability: All confirmed YMs in all grades SBI, Bidadi provides this facility & the discretion of

sanction is with the bank. Company shall take the responsibility only to the extent of deducting the

EMI from the salary & remit the same to the bank on monthly basis as per authorization.

Relocation loan scheme:

TMS shifting their residence to the area between kengeri and Ramanagar will be given a onetime

relocation loan of Rs.7200. This will be interest free. The amount will be recovered in 24 equal

monthly instalments of Rs.300.

Uniform:

Purpose: 1) To have sense of unity.

2) Identification.

3) Safety and workability.

4) Pride.

5) Discipline.



Details Quantity

Shirts For production TMs 3 numbers per year

For office staff 3 numbers on joining & 2 every year.

Trousers For production TMs 3 numbers per year

For office staff 3 numbers on joining & 2 every year.

Jacket 1 number in 2 year.

Cap 1 per year.

Socks For production TMs 3 pair per year

For office staff = 3pairs on Jacket & 2pairs pa.

Normal/safety shoes 1 or 2 pairs

Shoes for office once in a year

Canteen:

Company provides breakfast & lunch to all T.M at a subsidized rate. A sum of Rs.13 per day will be

deducted as the number of days worked from the salary. The option for availing a discount for

Breakfast or Lunch can be exercised once in a month. Company provides snacks to TM at Rs.3per

TM per day during extra working hours.

Commutation

TM may avail the commutation facility by making a request in form prescribed in this behalf. A sum

of Rs.8per day will be deducted for the number of days worked from the salary of TM’s.

The company fixes commutation vehicle routes. No deviation from the approved routes will be done.

For managers and above grade car facility is provided.



Other Welfare Measures:

All the accidents deaths are covered under company’s group personal accident scheme (GPA). The

insurance company in order to cover natural death company has introduced a compensation scheme,

company contributes Rs.5laks and an equal amount of rs.5laks will be deducted from the salary of all

T.M’s a total sum of Rs.10 lakhs will be paid to the nominee of the deceased.



S.W.O.T ANALYSIS

STRENGTHS –

Better Product Quality and strong product Innovation skills

Trusted and reliable brand image of its patent company TMC worldwide contributes to its

goodwill

Wider Product Line

Availability of latest technology through in house R&D

Standard system of production and company culture is followed uniformly throughout the

world thereby no deviations in its quality

Pull system of production that depends on sales velocity and hence cars are built to order,

thereby eliminating idle inventory and overproduction wastage

Toyotas culture and ideology followed by even its suppliers and dealer network

WEAKNESSES -

Higher Lead Time

The present and only plant in India at TKM has neared peak capacity

Internal conflicts of interest such as Trade union issues that have arose in the past and

severely affected the company’s output and drew critical media reviews

No proper system to check whether the worker is using safety wear or not, which may lead to

accidents



OPPORTUNITIES –

The growing automobile market in India, presently said to be growing at over 16%, has

created new possibilities in various segments offers numerous avenues for growth

Increasing buying power and customer base in India

Expansion of product portfolio to diversify and thereby establish in this bigger domestic

market

THREATS –

Entry of international players in domestic market

Exchange rate fluctuations that affect the company’s overall revenues since majority of its

auto components, CBUs and engines are procured from overseas

It has not been largely successful in terms of market penetration in India .Globally Toyota is

a leader in production and sales



FINDINGS AND CONCLUSIONS

Findings

SAFETY

The importance given to safety in the plant is phenomenal .In fact it was truly admirable to see that

this level of safety was followed not just on the shop floor but throughout the expanse of the entire

facility.

One example is the “GREEN PATH” system that literally refers to narrow lanes painted green

viz.the only areas that personal and visitors are advised to walk on in the shop floor as it traces the

areas where safety is least compromised. This initiative also has “STOP-LOOK-GO” signs printed

on in bright yellow at all turnings, crossings and intersections to serve as a continuous reminder to be

cautious and watchful .Toyota aims to achieve a zero accident reputation through these efforts.

Moreover, all personnel in the plant are provided adequate body protection such as helmets, elbow

guards, gloves, aprons, etc. in meeting with standard safety requirements.

EQUALITY AND OPEN CULTURE

Another notable and admirable ideology followed at TKM is that of equality and open culture. The

common lunch hall is a perfect example to validate this fact .Here ,the same delicious meals are

served to all employees ,managers and shop floor mechanics alike, giving no place for discrimination

of seniority. On the contrary this builds a strong feeling of oneness among the staff making them

truly feel they are a significant and intricate part of the Toyota family.

Another notable experience is the sight that meets one’s eyes at the office block .There is no cubicles

or separators throughout the office redefining a culture of transparency in operations and

communication without boundaries or hierarchical discrimination.

EMPLOYEE RECREATION



As one can imagine how busy the production floor can get especially, when there’s a car being rolled

out every minute, yet the company has given thought about employee recreation and made it a

possibility by a unique idea of erecting board games right in the midst of the assembly lines.

THEORY IN PRACTICE

Toyota believes in practicing what it preaches. “Group activity box” on the shop floor that

temporarily houses managers and senior personnel in accordance with their culture of

Genchi-Genbutsu, that means “go see for yourself”, as Toyota managers are expected to go and see

operations firsthand to have an understanding of how it can be improved. These “ boxes “ eliminate

the need for managers to walk to and forth from shop floor to office floor viz. a waste of time and

energy.

CARE FOR THE ENVIRONMENT

The company in staying true to its outlook on protecting and sustaining the environment is constantly

engaged in numerous activities to facilitate the same. Even during the course of my onsite visits this

was evident with the preparations undertaken for a proposed sapling planting drive.

CONCLUSION



Toyota Kirloskar Motors has greatly contributed to the huge growth of the Indian Automobile

Industry. Toyota Kirloskar Motors has a great commitment to the society and the earth, aiming to

create a new motorization future for India. Toyota will play a significant role in promoting

employment and technology transfer to India. Toyota believes that manufacturing is all about

fostering people; it aims to apply all its energy into nurturing individuals who can contribute

considerably to the revitalization of the Indian economy.

Toyota Kirloskar Motors has already started the work of the second plant which is scheduled to

begin operations by mid 2012 with an initial annual production of 100000 cars; the plant is poised to

produce passenger cars, including a new compact vehicle. This would change the whole Automobile

Industry. It would create high quality Cars and would also increase the competitiveness existing in

the market.

With the above information we can say Toyota Kirloskar Motor has a long way to go through with

innovative product and it has scope for diversification in various because of large untouched market.

Huge Investments are coming from Toyota and Kirloskar group and the Special Advantage is getting

the Technology transfer from Toyota.

Today, Toyota Kirloskar Motor plays a vital role in rolling out Cars in India with state of the art

Design and Technology. This can only be possible by following world class Quality, Innovation,

Leadership, Principals and Values. Toyota Kirloskar Motor will not just drive the Indian Automobile

Industry but it would make significant inroads such that it would revolutionize the Global

Automobile Industry.



SUGGESIONS

Pricing and Product sales must be made effective such that the company can be competitive with

the local and International manufacturers.

Reduce the Exchange rate fluctuations that affect the company’s overall revenues because

majority of its auto components, CBUs and engines are procured from overseas

As Toyota gives the first preference to the Safety, but still workers are very negligible

sometimes, they ignore to wear the safety wears when they are in the line, so I suggest they

should have a safety inspection team, where they will be continuously observing the workers.

Workers waste lot of their time in playing board games as there is no proper observations on

these areas, so I suggest that there should be proper monitoring system, so that all the man hour is

used efficiently.

There do not exit a proper relation between the team leader and the team members, so I suggest

that proper steps must be taken in reducing the cold wars between the employees so that they

maintain a good working environment.


Project Report on Totota Kirloskar Motor

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