VALUE CHAIN ​​AND COMPETITIVE ADVANTAGE OF PT TOYOTA (slide)

1. MISSY DESMALA
224409057
Missydesmala@rocketmail.com

2. TOYOTA
 INTRODUCTION
 VALUE CHAIN
 COMPETITIVE ADVANTAGE
 CONGCLUTION

3. INTRODUCTION
 Toyota motor corporation’s vehicle production
system is a way of “making things” that is referred
to as “lean manufacturing system”.
 The TPS was developed to improve Quality and
Productivity.
 Objective: “making the vehicles ordered by
customers in the quickest and most efficient
way, in order to deliver the vehicles as quickly as
possible”.

4. INTRODUCTION
Origin of Toyota Production System
Sakichi Toyoda(1867-1930 )
 Automatic loom
Kiichiro Toyoda(1894-1952)
 Used chain conveyor into the
Assembly line.
Eiji Toyoda(1913)
 Implementation of Jidoka and JIT.
Book : The toyota way by jefrey k lingker

5. In indonesia
PT Toyota Astra Motor inaugurated on April 12, 1971. The role of TAM was
originally only as an importer of Toyota vehicles, but a year later was working as
a distributor. On December 31, 1989, TAM merged with three
companies, among others:
 PT Multi Astra (assembly plant, founded in 1973)
 PT Toyota Mobilindo (body parts factory, founded in 1976)
 PT Toyota Engine Indonesia (engine factory, founded in 1982)
 PT Toyota Astra Motor.
Since the date of July 15, 2003, TAM restructured into two companies, namely:
 PT. Toyota Motor Manufacturing Indonesia which is the abbreviated TMMIN
assemblers of Toyota products and exporter of Toyota vehicles and spare parts.
Shareholding in this company is Astra International and TMC 5% to 95%
 PT. Toyota Astra Motor as sales agent, importer and distributor of Toyota
products in Indonesia. Shareholding in this company Astra International is 51%
whereas 49% TMC
http://www.toyota-global.com/company/profile/overview/

6. Value chain
Based on the theory michael poter
 Based on the theory michael poter

7. Primary activities
Inbound logistics
 toyota in obtaining raw materials, they do not process their own, or
create your own, they use a third party, they handed the small
parts, such as leather seats, steering wheel, tire, to local companies, but
to the nature of strategic importance, like a machine, they import from
Japan (center), it's all to maintain the quality standard that was created
toyota,
 Toyota put on the assembly system in the process, it has led to toyota
raw material supply for its assembly,, need a place to store supplies, or
warehouse, to avoid piling up too many assets, Toyota to forecast
demand,
Book : The toyota way by jefrey k lingker

8. Primary activities
Operations
 Transforming inputs into the final product form, in assembly and
manufacturing (its production) Toyoto use various systems to be efficient and
effective, we could also call it, TPS is the Toyota Production System,
 the concept of the Toyota Production System can be described as a complete
building which consists of various components are integrated. The building
was also called a The House of Toyota.

9. Primary activities  oprations
 JUST IN TIME : One of the two main pillars of TPS. It
refers to the manufacturing and conveyance of only ”
what is needed, when is needed, and in the amount
needed in the system”.
1. The Pull System
2. Continuous Flow Processing
3. Take time
 JIDOKA : One of the two main pillars of TPS. It refers
to the ability to stop production ,by man or machine.(
equip malfunction)

10. Primary activities  oprations
 Heijunka: smoothing. Meaning: wherever possible evenly distributed
workload made ​at any time. Without this, Just in time can not be
applied, because it will happen stacking and queuing at peak load.
 Standard work: At each stage of the work there is a clear indication of
the order and how to do the job.
 Total Productive Maintenance (TPM): a comprehensive equipment
maintenance process so that the tools are always in good condition to
wear to work.
 Value Chain: It is a series of value-added processes. There are
continuous efforts to reduce "non-value added waste" so that what
remains is just something that has added value in the production
process. Discussion of "non-value added waste" includes the activities
of 5S
Book : The toyota way by jefrey k lingker

11. PRIMARY ACTIVITIES  OUTBOUND LOGISTIC
Outbound Logistics
Collecting, storing and distributing the product to buyers
 output of the production process at the plant, is the
finished product,, a car, the car is directly sent to the toyota
dealer,, it's for local, or a region (not crossing the sea in
distribusianya, if sending more distant or export,, its
delivery using container.
http://www.toyota-global.com

12. PRIMARY ACTIVITIES  Marketing and Sales
Marketing and Sales
Providing a means and incentive which allow buyers to purchase the product
 Application of Indirect Channels Distrubusi TOYOTA CORPORATE
,Toyota Motor Company was founded in 1937 by the Toyoda family.
 In the application of the Toyota Company or its product distribution
channels to use indirect distribution networks which use the Company
Toyota dealer or distributor
www.toyota.co.id/

13. PRIMARY ACTIVITIES  Marketing and Sales
 BRANCH TOYOTA DEALER IN INDONESIA
www.toyota.co.id/

14. PRIMARY ACTIVITIES  SERVICE
Service
Providing service to enhance or maintain the value of the product
 The Best Total Ownership Experience 'is a principle that is always
carried by Toyota at each line, starting from the central office to the
Toyota dealership on every spread in Indonesia. Their concept is the
customer number one, so that makes them always trying to meet
customer needs and continuously improve services.
 parameters set 6 pieces, among others: the quality of service, type of
problem, the service is user friendly, service advisor, service
initiation, service delivery and in-service experience
survey conducted by JD Power Asia Pacific to its customers in Indonesia

15. SUPPORT ACTIVITIES
Firm infrastructure
 infrastructure owned by Toyota factory is very modern and
sophisticated, is a robotic system with humans as the
operator,, all the production support until the sale is
available with either situation, the factory to the dealer,,
http://www.toyota-global.com

16. SUPPORT ACTIVITIES  HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
 Toyota to this day has approximately 300,000 employees
worldwide, and nearly a third are in Indonesia, in placement or
acceptance of an employee, the company held a test salalu continued
with the training, according to its disciplines and expertise,
http://www.toyota-global.com

17. SUPPROT ACTIVITIES  TECHNOLOGY DEVELOPMENT
TECHNOLOGY DEVELOPMENT OF TOYOTA
Torrance (DP) - As one of the world's largest manufacturers, Toyota is
very concerned with the safety of its customers. That is why Toyota did
not stop doing research and development of safety technology.
Here are four technology from Toyota:
 Pre-Crash Safety (PCS) with collision-avoidance assists
 Pop-up Bonnet
 Adaptive Driving Beam
 Emergency response technology

18. SUPPORT ACTIVITIES  Procurement
Procurement Policy
Along with requiring our suppliers to provide quality items at a low price
and in a timely manner, we cooperate with them to promote
environmental preservation and meet the other demands of society. In
addition we take a long term view toward our relationships with
suppliers with an aim to realize an amicable relationship of mutual
prosperity based on fair business practices.
http://www.toyota-industries.com/corporateinfo/purchasing/policy/

19. Competitive adventage
Based on the theory michael poter

20. Competitiv advantage cost leadership
COST LEADERSHIP
LEAN SUPPLY CHAIN MANAGEMENT
[Toyota Indonesia Case]
GOAL of LEAN ACTIVITY  COST REDUCTION  PROFIT INCREASE
 as Basic Philosophy
(1) SALES PRICE = COST + PROFIT
(2) PROFIT = SALES PRICE - COST
 Profit = sales price - cost
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]

21. Competitiv advantage cost leadership
SIMPLE CONCEPT FROM TOYOTA
 (1) SHORTENING LEAD TIME
Simplifying the Process
Continuous Flow ( One Piece Flow Process )
 (2) REDUCE INVENTORY LEVEL
___________I_______I__________I______I_____________I______I_________I______I__________
LD LD LD LD LD LD LD LD
=============================TOTAL LEAD TIME==================================
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]

22. Competitiv advantage cost leadershipSCM
Supply chain management in toyota
vendor manufaktur dealer customer
1. Local parts
Local Parts
Receiving PC store Production
Dock
Dealer
(3)Receiving dock  pc storeproduction (4)dealer (5)customer
2. Import parts
• 1 and 2 Linked between internal and vendor
Local Parts STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERY
KANBAN:- A small time that is the key control for JIT production
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]

23. Competitiv advantage cost leadershipSCMlogistic mangement
Internal Logistics in toyota
Simplify Process  Re-arrangement of Process
By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]

24. Competitive advantage different strategy
The 14 Principles of the Toyota Way The last award for excellence in
Book : The toyota way by jefrey k lingker getting toyota product
1. Long term philosphy 1. Best Small Sedan (Toyota Vios),
2. Right process, right results
3. Use ‘pull’ sytem to avoid over production 2. Best Mid Sedan (Toyota Altis),
4. level out the work load 3. Best Mini MPV (ToyotaAvanza),
5. Build a culture of stopping to fix problems, to get quality 4. Best Low SUV (Toyota Rush) ,
right the first time
6. Standardise task are the fondations for continuous 5. Best MPV Diesel (Toyota Kijang Innova)
improvement and employees empowerment 6. Best PR Team
7. Use visual control so no problems are hidden 7. Best Website
8. Use only reliable thoroughly tested teghnology that
serves your people and processes
9. .grow leaders who thoroughly understand the work, live
philoshpy and teach it to others
10. Develop exeptional peopel and teams who follows yours
companies philosphy
11. Respect your extended network of patners and supplied
by challenging them helping them to improve
12. See for yourself to thoroughly understand the situation
13. Make decision slowly by consensus thoroghly
considering all options, implement decision rapidly
14. Become learning organitation thorough relentless
reflections and continous improvement
http://otomotif.antaranews.com/news/1321435204/toyota-astra-motor-raih-7-autobild-award
www.toyota.co.id

25. Support activities segmentation
customer segmentation in toyota
 Demographic Segmentation
1. Gender:
2. Age
3. Price
4. Number of families
 Psychographic segmentation
1. Social class
2. Design
3. Type
 Segmentation Behavorial
1. Toyota Parts are easily available and cheap enough so the price is affordable
2. The legs of the car a more durable than competitors
3.Customer care 24 hours
http://wilsonmarketing.blogspot.com/
book by philip kotler marketing management 1995

26. conclutions
 Toyota is a great company with an integrated supply chain management as well.
 Toyota has an integrated system in its production, namely TPS (Toyota
Production System),
 Toyota has a wide range of advantages ranging from human resources to its
products, it is evidenced by the wide range of awards,
 Toyota have 14 principles which refers to the quality of service, product quality
and efficiency,
 toyota including Indonesia's largest company automotive in the world,,
 Toyota lead because his concept of lean management

27. References
 The toyota way by jefrey k lingker
 Competitive advantage by michael poter
 Marketing management by philip kotler
 www.toyota.co.id/
 http://www.toyota-global.com/company/profile/overview/
 survey conducted by JD Power Asia Pacific to its customers in Indonesia
 http://www.toyota-industries.com/corporateinfo/purchasing/policy/
 By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota
Indonesia Case]
 http://otomotif.antaranews.com/news/1321435204/toyota-astra-motor-raih-7-
autobild-award
 http://wilsonmarketing.blogspot.com/