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, TKM, alon along g with with its its dedi dedicat cated ed deale dealers rs and and supp suppli liers ers,, has has adop adopte ted d the the "Gro "Growi wing ng Toge Togeth ther" er" philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims to furthe furtherr contri contribut butee to progre progress ss in the Indian Indian automo automotiv tivee indust industry, ry, realis realisee greate greaterr employ employmen mentt opportunities for local citizens, improve the quality of life of the team members and promote robust economic activity in India.
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Toyota Kirloskar Motor
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 make a SWOT SWOT analys analysis is of this this organi organizati zation on to unders understan tand d and sugges suggestt measur measures es 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.
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Toyota Kirloskar Motor
INDUSTRY PROFILE The automotive automotive industry industry designs, develops, develops, manufacture manufactures, s, markets, markets, and sells the world's motor vehicles. 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, some, urban urban transpo transport rt system systemss based based around around the car have have proved proved unsus unsustai tainab nable, le, consum consuming ing 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.
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Toyota Kirloskar Motor
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 exports about 2.33 million every year. It is the world's second largest manufacturer manufacturer of motorcycles of motorcycles,, with with annual annual sales sales exceed exceeding ing 8.5 millio million n in 2009. 2009. India' India'ss passen passenger ger car and commer commercial cial vehicl vehiclee manufacturing industry is the seven seventh th largest in the world, world, with an annual production of more than 3.7 million units in 2010. According According to recent reports, reports, India is set to overtake 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 Asia''s fourth largest exporter of passenger passenger cars, cars, behind Japan Japan,, South Korea, Korea, and Thailand 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. roads. A chunk of India's car manufacturing industry is based in and around Chennai Chennai,, also known as the " Detroit and Nissan headquartered in Detroit of of India" with the India operations of Ford, Hyundai, Renault and Nissan 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 India are manufa manufactu ctured red.. The Chaka Chaka corrid corridor or near near Pune Pune,, Maharashtra is anothe another r vehicular production hub with companies like General Motors, Motors, Volkswagen Volkswagen,, Skoda Skoda,, Mahindra and Mahindra,, Tata Motors, Mahindra Motors, Mercedes Benz, Benz, Land Rover , Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant Nano plant Genera Gen erall
Motors Mot ors,, Aurangabad with Audi Audi,, Skoda and Volkswagen Volkswagen,, Kolkatta with Hindustan
Motors,, Noida with Honda and Bangalore with Toyota are Motors manufacturing regions around the country.
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some
of
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other
automotive
Toyota Kirloskar Motor
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.
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Toyota Kirloskar Motor 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 European countries and has built an excellent reputation across Europe for reliability reliability and customer customer service. service. This enviable enviable reputation, reputation, along with the support support of a network network of more than 25 distributo distributors rs 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 loom maker maker to the world' world'ss bigges biggestt automa automaker ker,, guided guided by a cultur culturee of "kaizen "kaizen", ", or contin continuou uouss improvement and a tireless effort to eliminate waste.
We see this this corpor corporate ate tradit tradition ion contin continue ue throug through h decade decadess of its existe existence nce.. Since Since the compan company y manufacture manufactured d its first passenger passenger vehicle in 1936, 1936, Toyota Toyota has continuously continuously pursued the number 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.
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Toyota Kirloskar Motor As a global company, Toyota realizes that local commitment is a prerequisite to success on a worldw worldwide ide scale. scale. Toyot Toyota's a's activit activities ies are highly highly appreci appreciated ated around around the world, world, a result result of the compan company's y's devoti devotion on to custom customer-o er-orien riented ted activit activities ies and social social contrib contributi utions ons in every every market market it operates.
HISTORY OF THE KIRLOSKAR GROUP The Kirloskar Group is India’s India’s largest largest engineering engineering and constructio construction n conglomera conglomerate. te. The Kirloskar 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 castin casting g and pollut pollution ion contro controll equipm equipment ent manufa manufactu cturin ring. g. The The group group is mainly mainly concen concentrat trated ed 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.
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Toyota Kirloskar Motor
TOYOTA KIRLOSKAR MOTOR LOGO:
Toyota Kirloskar Motor Pvt. Ltd
TKM is a joint venture between TMC, Japan and Kirloskar Group, India.
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Toyota Kirloskar Motor 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, TKM, alon along g with with its its dedi dedicat cated ed deale dealers rs and and supp suppli liers ers,, has has adop adopte ted d the the "Gro "Growi wing ng Toge Togeth ther" er" philosophy of its parent company TMC to create long-term business growth. In this way, TKM aims to furthe furtherr contri contribut butee to progre progress ss in the Indian Indian automo automotiv tivee indust industry, ry, realis realisee greate greaterr employ employmen mentt opportunities for local citizens, improve the quality of life of the team members and promote robust economic activity in India. All All Toyo Toyota ta empl employ oyees ees are are expe expect cted ed to embo embody dy thes thesee valu values es in their their dail daily y work work,, incl includ udin ing g 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 greenh greenhous ousee gas emissi emissions ons,, waste waste reduct reduction ion,, increa increased sed recycl recycling ing and the bannin banning g of hazard hazardous ous 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 betwe between en trade trade and enviro environme nmenta ntall rules, rules, and result resulted ed in a statem statement ent of princi principle pless about about forest forest management, conservation and sustainable development.
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Toyota Kirloskar Motor
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 Toyota's 's Global Global Vision Vision 2015 2015 guides guides manage managemen mentt in its respon response se to long-t long-term erm social social change changes, s, 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 issues.. It outlin outlines es Toyota Toyota's 's basic basic policy policy and action action guidel guideline iness toward towardss effecti effective ve enviro environme nmenta ntall mana manage geme ment nt and and impr improv ovem emen ents ts.. The The Toyo Toyota ta Eart Earth h Char Charte terr unde underl rlin ines es a comm commit itme ment nt to environmen environmental tal excellence, excellence, not only through through broad principles, principles, but in concrete concrete examples 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 reso resour urces ces mana manage gemen mentt in Toyo Toyota ta seek seekss to creat createe a corp corpor orat atee cult cultur uree where where valu values es such 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 resources and improve improve the technical technical skills of its employees, employees, TKM's 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 also appr approp opria riate tely ly rewa reward rded ed for for the the same same.. Thus Thus TKM TKM seek seekss to prog progre ress ss by empo empowe weri ring ng its its employees.
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Toyota Kirloskar Motor
Toyota Toyota Kirlos Kirloskar kar motor motor (TKM) (TKM) has the proud proud herita heritage ge of both both these these fine fine establ establish ishmen ments. ts. The The company, according to its mission statement aims to play a major role in the development of the automo automotiv tivee indust industry ry and the creatio creation n of employ employmen mentt opport opportuni unities ties,, not only only throug through h its dealer 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 sec ond 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 Mr. Sandeep Singh
Deputy MD's Mr. S. Tomonaga DMD, Commercial
Mr. Shekar Viswanathan
Paid-In Capital
Rs. 7 billion
Shareholders
Toyota Motor Corporation (89% equity) Kirloskar Group (11% equity)
Employees
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4986 members as per June 2010
Toyota Kirloskar Motor
Average Life of the Plant
29 Years
LOCATION AND CONTACT DETAILS The Toyota Kirloskar Motors manufacturin manufacturing g plant is situated situated on the outskirts outskirts of Bangalore 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
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Toyota Kirloskar Motor UB CITY, NO.24 VITTAL MALYA ROAD BANGALORE -560 001
KARNATAKA INDIA
ORGANISATIONAL PERFORMANCE:
PRODUCTION : SALES: EFFICIENCY:
80,000 UNITS 80,000 UNITS 94% MARKET SHARE:
COMPANY MARUTHI SUZUKI HYUNDAI TATA MAH & MAH T0YOTA GENERAL MOTORS FORD VOLKS WAGEN HONDA SKODA NISSAN FIAT BMW
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MKT SHARE 37.1 16.1 11.7 11.6 6 .4 4 .3 3 .7 2 .9 1 .8 1 .4 0 .9 0 .8 0 .5
Toyota Kirloskar Motor
VISION and MISSION
VISION
The vision of Toyota Kirloskar Motor is i s to: 1. Contri Contribut butee to Indian industr industry y and economy economy,, technol technology ogy transfer, transfer, HRD, Global Global standa standard rd vehicles at a competitive price. 2. Contribute Contribute to the improvem improvement, ent, well being being and and stability stability of the the team members. members. 3. Contribute Contribute to the overall overall growth growth of its business business associate associatess and its promot promoters. ers.
MISSION
The Mission of Toyota Kirloskar Motor is to: 1. Design Design,, manufactu manufacture re and market automo automobil bilee in India India and in oversea overseass market, market, to mainta maintain in 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 Perceive Kizen, maintainin maintaining g flexible flexible organisation, organisation, working working schedule schedule and staffing staffing plan plan which enables the company to respond to fluctuations of production volumes and increase the productivity.
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Toyota Kirloskar Motor 3. Providing Providing a conduciv conducivee and safe working working environ environment ment where where all team members members can work with safety with a sense of security. 4. Prov Provid idee the the high highes estt poss possib ible le valu valuee addi additi tion on to cust custom omers ers,, team team memb members ers,, inve invest stor orss and 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 management principles into practice, the "Guiding "Guiding Principles Principles at Toyota 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 contribu contributiv tivee to the developm development ent and the welfare welfare of the countr country y by workin working g togeth together, er, regardless of position, in faithfully fulfilling your duties. 2. Be ahead of the times through through endless endless creativity creativity,, inquisitiven inquisitiveness ess and pursuit pursuit of improvemen improvement. t. 3. Be prac practica ticall and and avoi avoid d frivo frivolit lity. y.
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Toyota Kirloskar Motor 4. Be kind and generous; strive to create a warm, home like atmosphere.
5. Be reverent, reverent, and show gratitu gratitude de for things things great great and small small in though thoughtt and deed. 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 codified so that they could be propagated propagated among employees. 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 criti critici cized zed by soci societ ety. y. Toyo Toyota ta beli believ eves es that that to be a good good corp corpor orat atee citi citizen zen,, it is esse essent ntia iall that 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" world" — establ establish ishing ing compli compliance ance as one of Toyota Toyota's 's manage managemen mentt princi principle ples. s. Execut Executive ive management takes every opportunity, e.g. the New Year's greeting each year, to disseminate the mana manage geme ment nt prin princi cipl ples es.. And And thro throug ugho hout ut the the year, year, Toyo Toyota ta work workss to cont contin inua uall lly y adva advanc ncee its its management principles through a variety of education and training programs and on-the-job training.
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Toyota Kirloskar Motor
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 TKM uses uses ever every y oppo opport rtun unit ity y it gets gets to partn partner er with with othe otherr comp compan anie ies, s, scho school ols, s, coll colleg eges es and 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 shelter to the underprivi underprivileged leged masses. Toyota Toyota has also extended its helping helping hand to the state police department department by rebuilding rebuilding the Kengeri Kengeri police police station station .The renovated renovated structure now is bigger bigger in area and is better equipped functionally and aesthetically ,sporting new furniture and facilities.
Educational Support – Kristu Jayanti College Page 17
Toyota Kirloskar Motor 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 rega regard rd Tkm Tkm has has recon reconst stru ruct cted ed a resi reside dent ntia iall scho school ol at Bida Bidadi di that that hous houses es clos closee to a hund hundre red d 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 –
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Toyota Kirloskar Motor Toyota Toyota has taken numerous steps to spread eco-consciou eco-consciousness sness that include tree planting 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 economic activity in India.
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Toyota Kirloskar Motor
AWARDS AND RECOGNITION Toyota Toyota as a pioneer pioneer in automobile automobile design design and manufacture manufacture has been recipient recipient to numerous 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 –
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1. Business Business Standard Standard Motoring Motoring : Import Import Car Car Of The The Year Award Award - Camry Camry 2007 2007
Toyota Kirloskar Motor 2. BBC-To BBC-Top p Gear: Gear: Car Desig Design n Of The The Year - Camry Camry 2007 2007
3. CNBC-TV18 CNBC-TV18 Auto car: Best Best Design Design and Stylin Stylingg- Camry Camry 2007 2007
4. BBC-Top BBC-Top Gear Gear : Best Best Design Design Of The The Year - Camry Camry 2006 2006
5. Business Business Standa Standard rd Motoring Motoring:: MPV Of The The Year - Innova Innova 2006 2006
6. NDTV - Car Awards: Awards: Best MPV MPV Of The The Year – Toyota Toyota Innova Innova 2006 2006
7. Overdr Overdrive ive:: UV Of The The Year Year For For Innova Innova 2006 2006
8. Auto Auto Monito Monitorr -CSR Init Initiati iative ve Of The The Year 2006 2006
9. CNBC Auto Auto car Awards: Awards: Techno Technologica logically lly Advanced Advanced Car Car - Land Cruiser Cruiser Prado Prado 2005 2005
10. Business Business Standard Standard Motoring : Best Executive Executive Car 2004 & 2005 (Corolla) (Corolla) Best MUV 2005 (Innova)
11. TNS Award – Total Customer Customer Satisfaction Satisfaction Study: Best Executive Executive Car 2004 & 2005 (Corolla) Best MUV 2005 (Innova)
12. Business Business Standard Motoring: Motoring: Best Executive Executive Car 2004 & 2005 (Corolla) Best MUV 2005 (Innova)
13. TNS Award – Total Customer Satisfaction Study Study : Qualis, Corolla & Camry 2004
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Toyota Kirloskar Motor
PRODUCT PROFILE Toyota Kirloskar Motors is an automobile manufacturer engaged in the production of technologically advanc advanced ed qualit quality y automo automobil biles. es. The quest quest for innov innovatio ation n is the founda foundatio tion n for Toyota Toyota's '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 high design design and qualit quality y standa standards rds set by its engine engineers ers.. Toyot Toyotaa engine enginess are develo developed ped for performance and responsiveness with a big focus on reducing emissions and saving fuel. Today Toyota Toyota brings brings these benefits to customers customers with advanced advanced variable variable valve technology 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
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Toyota Kirloskar Motor
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 innovations from around around the globe, globe, the versatile 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.
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Toyota Kirloskar Motor
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.
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Toyota Kirloskar Motor
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 Hilux Fortuner is built on the well-established platform of the Toyota Hilux pickup Hilux pickup truck . It features features three rows of seats and is available in rear-wheel drive or four-wheel or four-wheel drive among others. The Fortuner is part of Toyota's IMV project in Thailand, which also includes the Toyo Toyota ta Hilux Hiluxand and the Kijang Innova (in Indonesia). The vehicle was designed by Toyota Technical Centre Australia. Australia. A number of engine options are available depending on the country of sale, including a 2.7 litre 2TR-FE and 4.0
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Toyota Kirloskar Motor 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
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 hatchback was was launched in June 2011. Manufactured in Bangalore Bangalore,, Etios is the biggest such project in India by Toyota today, and is a direct assault on Suzuki Suzuki's 's dominance in this market. The Etios nameplate comes from the Greek "Ethos", meaning spirit, character, and ideas.
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Toyota Kirloskar Motor 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 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
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 injection produces 59 kW (80 PS). This is mated to 5 speed manual gearbox.
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Toyota Kirloskar Motor
ORGANIZATIONAL CULTURE Conditions Created by Toyota's Well-Established Business Culture
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Toyota Kirloskar Motor
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Toyota Kirloskar Motor
Systems Supporting the Business Culture -
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Toyota Kirloskar Motor In order to maintain and further enhance this well-established business culture, it is important that both the system system for human resources resources development development and the system for establishi establishing ng and maintaining 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 enable employ employees ees to confirm confirm the approp appropria riaten teness ess of their their conduc conduct. t. Toyota Toyota also also has conduc conductt guidelines for individual divisions that specify in greater detail specific rules and actions, taking into consideration the unique characteristics of each division. [Promotional Structures] Structures]
Speci Specifi ficc orga organi niza zati tion onss and and a hotl hotlin inee have have been been esta establ blis ishe hed d in orde orderr to thor thorou ough ghly ly carry carry out 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 ethica ethicall violati violations ons,, while while overse overseein eing g all general general corpo corporate rate activi activities ties from from the perspe perspecti ctive ve of compli complianc ance. e. Record Recordss of proceed proceeding ingss are announ announced ced at manage managemen mentt meetin meetings gs and direct directors ors and managing officers disseminate information to the divisions they oversee when necessary.
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Toyota Kirloskar Motor
Consolidated Support by Multiple Divisions -
In order order to ensure ensure proper proper compli complianc ance, e, a number number of differe different nt divisi divisions ons —includin —including g the Legal Legal Division, Division, Accounting Accounting Division, Division, Corporate Corporate Planning Planning Division, Division, Human Resources Division, and Global Global Human Human Resour Resources ces Divisi Division— on— work work collab collabora orative tively ly to provid providee suppor supportt and underta undertake ke 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.
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Toyota Kirloskar Motor
THE FOURTEEN PRINCIPLES OF TOYOTA
1. Long Long – Ter Term m Phi Philo loso soph phy y 2. The Right Right Proc Process ess Will Will Produc Producee the Right Right Result Resultss 3. Create Contin Continuous uous Proces Processs Flow to Bring Bring Problems Problems to to the Surface Surface 4. Use “Pul “Pull” l” Syste Systems ms to avoid avoid Over Over Produ Productio ction n 5. Level Level out out the the Work Work Load Load (Heij (Heijunk unka) a) 6. Build a Cultur Culturee of Stopping Stopping to Fix Problems Problems,, to get Quality Quality Right Right the the First time time 7. Standardize Standardized d Tasks are the found foundation ation for Continu Continuous ous Improve Improvement ment 8. Empl Employ oyee ee Empo Empower werme ment nt 9. Use Visu Visual al Contr Control ol so no no Proble Problems ms are Hidd Hidden en 10. Use Only Reliable, Thoroughly Tested Tested Technology that Serves your People People and Processes 11. Add Value to the Organisation by Developing Developing Your People and Partners 12. Grow Leaders Leaders who thoroughly thoroughly understand understand the Work, Live the Philosoph Philosophy y and Teach it to Others 13. Develop Exceptional People and Teams who follow your Company’s Philosophy Philosophy 14. Respect Respect your Extended Network of Partners and Suppliers Suppliers by challenging challenging them and Helping them Improve.
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Toyota Kirloskar Motor
ORGANISATIONAL DESIGN AND STRUCTURE Organi Organisat sation ional al design design is fundam fundament entally ally the manner manner in which which a manage managemen mentt achiev achieves es the right 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 department departmental al units each concentrating concentrating on a particular particular aspect of the organizatio organizations ns operations 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 determ determine iness the manner manner and extent extent to which which roles, roles, powers powers and respon responsib sibili ilities ties are delega delegated ted,, controlled controlled and co-ordinated co-ordinated and how information information flows between various levels of management 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 structure the decision decision making making power is distributed distributed and the departments departments and divisions 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 Also one striki striking ng observ observati ation on is the unrigi unrigid d organi organizati zationa onall design design that that facilita facilitates tes openne openness, ss, communication and free flow of ideas between all levels and cadres of the organisation. Also another very very practi practical cal approa approach ch follow followed ed at TKM is the job and role role rotati rotation on proces processs wherei wherein n every 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
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Toyota Kirloskar Motor 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
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Toyota Kirloskar Motor
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 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.
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Toyota Kirloskar Motor
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 Ohno's leadership, leadership, JIT developed developed into a unique unique system of material material and information information flows to control overproduction.
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Toyota Kirloskar Motor
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 functi functions ons of a busine business ss from from manufa manufactu cturin ring g to manage managemen ment. t. By improv improving ing 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 Pok a-yoke -yo ke : - 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 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 managers
are expected to “go“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 stop the produ productio ction n line. line. Jidoka Jidoka preven prevents ts the produc productio tion n of defecti defective ve produc products, ts, 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 f urther processing to be carried out at a constant and predictable rate. This helps achieve the goal of
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Toyota Kirloskar Motor minimizing 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 amount needed needed.. In additi addition, on, a minimu minimum m amount amount of invent inventory ory is kept kept on hand. hand. This This enhanc enhances es 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.
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Toyota Kirloskar Motor
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.
Straight Time / Work Time (Seconds) # Takt Time =
Requ Requir ired ed Numb Number er of Prod Produc ucti tion on base based d on Demand
#
Time available/day/month
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Toyota Kirloskar Motor
Ther Theree had had been been this this wide wide,, long long-s -stan tandi ding ng recog recogni niti tion on of Toyo Toyota ta as the the prem premie ierr auto automo mobi bile le 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 leadership in manufacturi manufacturing ng performance. performance. In addition, addition, Toyota had been remarkably remarkably open in letting 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.
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Toyota Kirloskar Motor
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
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Toyota Kirloskar Motor The plant follows a Product Flow Layout. This is also known as Lean manufacturing. The block diagram of the plant is shown below:
1. Inve Invent ntor ory y Stor Storag agee-
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 Sh Shop-
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Toyota Kirloskar Motor 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 ShopThe 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 fixture which operates on the principle principle of pneumatic pneumatic air pressure. 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 Sh 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. Asse Assemb mbly ly Sh Shopop-
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) Chas Chassi siss ass assem embl bly y lin linee b) b) Body Body trim trim line line
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Toyota Kirloskar Motor 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 assemb assembled led.. The The VIN (Vehicle (Vehicle Identi Identifica ficatio tion n Number Number)) is punche punched d onto onto the vehicl vehiclee by a machine during the final line assembly. 6. Fina Finall Insp Inspec ecti tion on--
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
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Toyota Kirloskar Motor 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 Manufacturing Divisions-
1. Produc Productt Design Design and and Develo Developme pment nt Divisi Division on 2. Qual Qualit ity y Cont Contro roll Divi Divisi sion on 3. Plant Plant Admini Administr strati ation on Divisi Division on 4. Prod Produc ucti tion on Divi Divisi sion on 5. Qual Qualit ity y Assur Assuran ance ce divi divisi sion on 6. Plant Plant engine engineerin ering g and servi services ces depar departme tment nt
Non-manufacturing 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.
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Toyota Kirloskar Motor Flow of material in TKM:-
Steel Suppliers
TKM Local suppliers
SLC
Suppliers/ job shop
P= press W= weld T= paint
Job works TKM receiving
P
Imports
W T
A= assemble A
In= inspection
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IN SP
Yard
Dealers
Toyota Kirloskar Motor
PRODUCT PROMOTIONAL MEASURES Just Just like like any other other automo automobil bilee manufa manufactu cturer, rer, Toyota Toyota also also promot promotes es its fine fine produc products ts throug through h 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)
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Toyota Kirloskar Motor
PROCESS FLOW CHART
Manpower Requisition by User Div. (Enclosed Job Description)
NEW VACANCY Approval by: REPLACEMENT
Confirmation of Age, Job Grade, Job Description,
Approval by: Call for Interview Selection as per Standard Interview Process
Sourcing of profiles Screening by HR and User Division
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.
Explor Exploree suitab suitable le option optionss of hiring hiring staffin staffing g agenci agencies es in pursui pursuitt of obtain obtaining ing effecti effective ve manpower services.
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Toyota Kirloskar Motor
Payment of all invoices & expenses incurred related to hiring Contract Manpower Control – Office Section (Hiring, time-office management, payroll activity to all Contract Staffs).
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 located a stones stones throw away from the main manufacturing 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 facilit facility y houses houses numer numerous ous classro classrooms oms,, meetin meeting g rooms rooms and admini administr strativ ativee offices offices that that hold 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)G (GPAI)Grou roup p personal personal acciden accidentt insuranc insurance. e. 2) Group Medishield/M Medishield/Mediclai ediclaim m insura insurance nce policy policy 3) Bank Bank loan schem schemee (persona (personall & vehicle vehicle loan). loan). 4) Relo Relocat catio ion n sche scheme me.. 5) Uniform. 6) Canteen.
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Toyota Kirloskar Motor 7) Comm Commut utat atio ion. n. 8) Othe Otherr Welfa Welfare re meas measur ures es..
1) (GPAI)Gr (GPAI)Group oup personal personal accident accident insuranc insurance. e.
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. Medi Medica call supp suppor ortt 2. Insurance Insurance CO will reimburs reimbursee full or part of medical medical expenses. expenses. No hospitaliz hospitalization ation is required required to make a claim. 3. Sala Salary ry pay payment ment 4. TM’s absence absence from duty duty due to accident accident will not not affect the salary salary as insurance insurance CO reimburs reimburses es the same based on earning capacity as per the limit provided under insurance policy. 5. The poli policy cy is avail availabl ablee anywher anywheree in the worl world. d. 6. Coverage Coverage (capital (capital sum insured insured): ): TM’S are covered covered based based on the basis basis of 60 times times the gross gross earnings. However min coverage is Rs 10 lacks
BENEFITS The Insurance CO will pay 1% of the Table C 1. Loss Loss of salary salary on a/c a/c of of accide accident nt – 2. adm admissible
claim aim(te (temporar rary
Disablement)
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benefits, subject to max of Rs 20,000 / week
total as Temp Tempor orar ary y
tota totall
disa disabl blem emen entt
bene benefi fitt
towards loss of salary on a/c of accident.
Toyota Kirloskar Motor
3. Medi Medica call expe expens nses es on a/c a/c of accid acciden entt injury
10% of capital sum insured or 50% of the admissible claim amount whichever is less. % of disa disabl blem emen entt as dete determ rmin ined ed by the the
4. Permane Permanent nt partia partiall disabl disableme ement nt
doctor, subject to as % specified in the policy.
5. Perm Perman anen entt total total disab disable leme ment nt
100% of capital sum insured
6. Death Death(d (due ue to to acci accide dent nt onl only) y)
100% of capital sum insured
2) Group Group Medishi Medishield eld / Medicl Mediclaim aim Insura Insurance nce Policy Policy
The Medish Medishiel ield d Insura Insurance nce policy policy covers covers reimbu reimburse rsemen mentt of in-pat in-patien ientt hospi hospitali talizati zation on expens expenses es insured for treatment of illness or injury sustained. Eligibility Eligibility:: All TM’s not covered under ESI act and family members members consisting consisting of spouse 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.
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Toyota Kirloskar Motor Family floater policy: The max amt eligible is the total coverage of TM and his family. Domiciliary Domiciliary hospitalization hospitalization claims: Medical treatment for period exceeding 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 existin existing g diseas diseasee coverag coverage: e: The reimbu reimburse rsemen mentt of expenses expenses,, which are in pre existin existing g conditions at the time of joining, is applicable only if treatment is taken after 90 days from the date of coverage. 2. Cashless Cashless Facility: Facility: The insured insured can avail avail the facility facility of hospitalizatio hospitalization n without without making cash or or cheque payment.
3) Bank loan scheme scheme (pers (personal onal & vehicle vehicle loan) 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.
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Uniform:
Purpose:
1) To have sense of unity. 2) Identification. 3) Safety and workability.
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Toyota Kirloskar Motor 4) Pride. 5) Discipline.
Details Shirts
Quantity 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 Shoes for office
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Canteen:
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1 or 2 pairs once in a year
Toyota Kirloskar Motor 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.
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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.
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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.
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Toyota Kirloskar Motor
S.W.O.T ANALYSIS STRENGTHS – •
Better Product Quality and strong product Innovation skills
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Trusted and reliable brand image of its patent company TMC worldwide contributes to its goodwill
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Wider Product Line
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Availability of latest technology through in house R&D
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Standard system of production and company culture is followed uniformly throughout the world thereby no deviations in its quality
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Pull system of production that depends on sales velocity and hence cars are built to order, thereby eliminating idle inventory and overproduction wastage
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Toyotas culture and ideology followed by even its suppliers and dealer network
WEAKNESSES •
Higher Lead Time
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The present and only plant in India at TKM has neared peak capacity
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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
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No proper system to check whether the worker is using safety wear or not, which may lead to accidents
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Toyota Kirloskar Motor 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
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Increasing buying power and customer base in India
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Expansion of product portfolio to diversify and thereby establish in this bigger domestic market
THREATS – •
Entry of international players in domestic market
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Exchange rate fluctuations that affect the company’s overall revenues since majority of its auto components, CBUs and engines are procured from overseas
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It has not been largely successful in terms of market penetration in India .Globally Toyota is a leader in production and sales
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Toyota Kirloskar Motor
FINDINGS AND CONCLUSIONS Findings
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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. compromised. This initiative initiative also has “STOP-LOOK-GO “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.
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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 sepa separa rato tors rs thro throug ugho hout ut the the offic officee redefi redefini ning ng a cult cultur uree of tran transp spar aren ency cy in oper operat atio ions ns and and communication without boundaries or hierarchical discrimination.
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Toyota Kirloskar Motor •
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.
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THEORY IN PRACTICE
Toyo Toyota ta beli believ eves es in pract practic icin ing g what what it preac preache hes. s. “Gro “Group up acti activi vity ty box” box” on the the shop shop floor floor that 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.
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CARE FOR THE ENVIRONMENT
The company in staying true to t o 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.
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Toyota Kirloskar Motor
CONCLUSION
Toyota Toyota Kirlos Kirloskar kar Motors Motors has greatly greatly contri contribut buted ed to the huge huge growth growth of the Indian Indian Automo Automobil bilee Industry. Toyota Kirloskar Motors has a great commitment to the society and the earth, aiming to creat createe a new new moto motori rizat zatio ion n futu future re for for Indi India. a. Toyo Toyota ta will will play play a sign signifi ifica cant nt role role in prom promot otin ing g employ employmen mentt and techno technolog logy y transf transfer er to India. India. Toyota Toyota believ believes es that that manufa manufactu cturin ring g is all about about fosteri fostering ng people people;; it aims aims to apply apply all its energy energy into into nurtur nurturing ing individu individuals als who can contrib contribute ute 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. Industry. It would would create high quality Cars and would would also increase the competitive competitiveness ness existing in the market. With the above information information we can say Toyota Kirloskar Kirloskar Motor has a long way to go through 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 Indu Indust stry ry but but it woul would d make make sign signif ific ican antt inro inroad adss such such that that it woul would d revo revolu luti tion oniz izee the the Glob Global al Automobile Industry.
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Toyota Kirloskar Motor
SUGGESIONS
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Pricing and Product sales must be made effective such that the company can be competitive with the local and International manufacturers.
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Reduce Reduce the Exchan Exchange ge rate fluctu fluctuati ations ons that that affect affect the compan company’s y’s overall overall revenu revenues es becaus becausee majority of its auto components, CBUs and engines are procured from overseas
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As Toyo Toyota ta give givess the the first first prefe preferen rence ce to the the Safet Safety, y, but but stil stilll work workers ers are very very negl neglig igib ible le 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.
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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.
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There do not exit a proper proper relation between the team leader and the team members, members, so I suggest suggest that proper steps must be taken in reducing the cold wars between the employees so that they maintain a good working environment.
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