With global sales now at 10 million vehicles per annum and climbing, Toyota finds itself as the world's leading auto manufacturer. US giant General Motors, which had previously held this title for 74 years, was dethroned in 2006, and the Japanese automaker has not looked back since. In a financial climate in which most of the top automakers have experienced declines both in sales and profits, Toyota stands out for its burgeoning financial returns, which are not restricted to the established US market, following investment in China's developing market. Environmental and technological advancement, in the form of its part-electric, part-petrol hybrid models, also creates healthy demand. Toyota's Lexus subsidiary also taps into the US luxury market, propelled in 2016 through its RX crossover model, which exceeded sales forecasts. Despite the fact that it dates back to 1937, Toyota rose from relative obscurity in the 1950s through Taiichi Ohno's development of the Toyota Production System (TPS). Based on Japanese principles such as jidoka (referring to human automation), muda (elimination of waste) and kaizen (continuous improvement), TPS enables greater cohesion within the manufacturing process, particularly with regard to team- and management-based tasks. In an industry that is so dependent on intricate supplier collaboration, it has been claimed that TPS helps to achieve this end, insofar as it minimizes defects. The eradication of such design flaws also allows newly created products to reach the customer in a shorter time than can be achieved by other companies, and with a greater level of quality control. This approach to production has been researched and emulated by a number of international carmakers and is now considered the industry gold standard, while also finding traction within other sectors. Now articulated as 'lean' production, numerous service environments have also incorporated this approach. One such surprising application of TPS methodology can be found within the field of healthcare, in which the traditional focus upon meeting objectives is replaced with the prioritization of processes. Each role within the organization is defined in terms of key competencies, and, as these are met, patient needs are satisfied with greater consistency. TPS has been regarded as the secret to Toyota's success, implementing increased flexibility and productivity while eradicating many of the production errors that plague other car manufacturers. As a result, the company does not need to resort to competitor-minded discounts in order to satisfy a customer base that is happy to pay for quality. As Toyota continues to outperform its rivals for a fourth consecutive year, it now contemplates consolidating its position through business partnerships with manufacturers such as Daihatsu and Suzuki. And yet, at the heart of this increasingly outward-looking company remain the streamlining qualities facilitated through the TPS, which acts as an integral foundation for such growth.

QUESTIONS

1. In the 1950s Taichi Ohno developed the Toyota production System (TPS). Brief outline the three (3) main principles this system is based on. How does TPS benefits Toyota in its operation?

1. Name one (1) other industry which has incorporated TPS approach. Briefly explain how TPS method bring about the change in that industry's operation.

1. TPS is considered as the secret to Toyota's success. How does TPS makes Toyota to be to solve problems other car manufacturers are facing. What advantage does Toyota have over its competitors?