Toyota global vision was to lead the way where to the future of mobility to enriching lives around the world with safe and most responsible way of transporting people around. Through their commitment which of quality, it constant innovation and respected for the global, and they are aiming to exceed the expectations of gaining rewarded with a smile from there users. They meet certain challenging goals by engaging with the talented and passion people who usually believe there is always a better ways to improve.
And Toyota is known for reliable car among the public, but it has also been known in the management and leadership circles for exceptional people. Many credit Toyota's success to aspects of the Toyota Production System, which was established by Taichi Ohno and Shigeo Shingo from the late 1950s through 1970. Today, Toyota is the second or third largest in the world in both car sales and in unit sales net, and the number 1 seller of retail vehicles in the United States. From sources Jidoka, (2013).
But according to Tabuchi, (2014) in April 2013, Toyota estimated to be around 170,000 cars in the United States have the defective component, but that all vehicles should be checked to find the broken once for all, about 3.3 million vehicles around the world are involved in the recall, including about 1.7 million Toyota.
With Toyota's Aim for growth that is in harmony with the environment, and to challenge the achievement of zero emissions throughout all business activities and set up as a challenge achievement of zero emissions throughout the entire business activities. Source from Genchi, (2014).
With this our group had decided to start off a balance scorecard for Toyota in order to overrun the problem which occurred in the past and to make an improvement for it product to go better in the future. Where as we would start off from learning and growth. The question is Are we maintaining our ability or to change and improve? as that, our group have decided to make a certain changes like, by creating a Quality Web Forum for the employees with the aim of "getting each and every employee to think about what they need to do to be rewarded with the smiles of customers. Based on Junichi, (2013) stated that, this forum will be able to further develop and to allow everyone to hold free discussions on the theme and enhance each other's awareness to their jobs.
Learning and Growth Part
Firstly, we want to increase the knowledge and skills of employees in the department of R & D. In order to implement this process, our group has spent 807.4 billion, according to Takeshi, (2014). R & D expenses increased by 3.5% compared the previous year. Investments in R & D are very important to improve the skills of workers to improve product design by eliminating the limits of the factors in the design and production technology. This is very important for the development of a new car. Below is the figure of R & D expenses changes.
By source of Maekawa, (2014), a new structure to be developed to develop powertrains into ever better powertrains, and will play an important role in changing the way they work to support a reputable future. In the structure, he has a new environment where R & D workers to be involved in face to face conversations with accomplices who are responsible for technology spending and development spending methods. Lastly, it will have a system that may assess all development rankings, from the principle of technology for vehicles and components prepared under one roof with effectively and efficiently. This will allow workers strive to make ever-better cars that were always meets the needs around the world.
Besides that, we will incurred another expenses on giving out more training to the employees under the production line, in order to enhance their skills in producing cars that are defect free effectively and efficiently. Our group too has come out of an idea by increasing their employees incentives, which are able to boost up their employees morale. When employees morale is high, they will be put more effort on doing their job, thus the performance will increase.
With these ideas it could increase another cost for the company but in return, it be able to gain something such as having an improvement and overruling the problem in the past by decreasing the problem of facing defect product in the ways of happening in the past of recalling cars for certain problem which causes imperfection and huge loses. Therefore, with these changes, we will then further showing and discusses the result effect under next section of internal business process.
Internal Business Process
As the employee morale increases and gained more knowledge through training, the production of theirs will be made more attentively, efficiently and carefully. This leads to a percentage decrease of the production defects. With the decrease of production defects, the cost to repair the defects will be able to be cut down which saves a large amount of cost which is supposed to be occurred into repair accounts. Toyotas ability to achieve these cost reductions is subject to a number of factors, some of which are not in Toyotas control. These factors include the successful implementation of the manufacturing processes described above, as well as the business and financial conditions of Toyotas suppliers and the general economic and political conditions in the markets in which these suppliers operate. A decrease of defects in production not only assist the factories in saving cost, it also helps in saving time. As now the problem of numerous defects on production has been solved, with the effect of it being a time-saver. Besides that, with the knowledge that employees gain from R & D training course, Toyota Company will be able to shorten the time to introduce their now safer car products. With this the sales volume of the company will be able to be boosted above as expected. As most of us as car consumers, safety will always be our first priority. As producers, Toyota will definitely assist the market demands by fulfilling in both theirs and our own mission. Next, the time to introduce environmental friendly vehicles will shorten. For example, we have discovered the technology of hybrid cars such as the Toyota Prius. We now have an additional product line that is based on hybrid cars. We have launched hybrid cars which help consumers save petrol oil. Due to the increased safer productions, the Toyota Company will be able to focus on more environmental friendly vehicles. The faster the production and introduction of newer environmental friendly vehicles, the more the sales Toyota will be able to make. The company will focus heavily on hybrid vehicles as it tries to drive further growth. The company aims to improve the fuel efficiency of hybrid vehicles and launch 15 new models in the next two years. Toyota is the worlds top-selling automaker and its hybrid Prius is already popular in major markets worldwide. Its Aqua model, marketed in Japan, has a strong domestic following. Speaking at a shareholders meeting in Nagoya, Toyoda said the company plans to aggressively plant seeds now, when we can put our resources for the future. He suggested the firm would achieve sustainable growth by prioritizing worker training as well as R&D. Toyota also said the automakers management has certainly been bolstered, as it logged a group operating profit of almost 2.3 trillion for the fiscal year that ended in March, a new record high after a six-year slump.
Customer Toyota has an aim for an auto industry first by reaching annual sales of 10 million vehicles by 2015 even as it acknowledges that overly rapid growth was at the root of its recall fiasco. Toyota President Akio Toyoda gave the 10 million figures while outlining the company's "global vision" in his first major strategy announcement since the recall crisis. As the percentage of production defect decrease, more unit of defect free cars increase. The amounts of defected cars that will bought by customers will decrease, and more customers will be happy as the cars that they bought has no defect and are in good condition. This will later decrease the number of customer complaints regarding defected cars and increase customer satisfaction as they are happy with their cars. When people saw that our car is safe and defect free, this will attract them to buy, thus this will increase the number of new customers and number of cars sold. As the time of introducing new cars that are safer and environmentally friendly is reduced, Customers will have more option in buying cars, then customer surveys should show greater satisfaction with range of options available. If customer satisfaction improves, the company should be able to maintain and increase its selling price which will lead into increase in number of cars sold and later increase the residual income. Besides that, innovative new cars will also attract new customers and later increase the number of cars sold. As shown in the figure below, the numbers of cars sold has started to increase dramatically in 2013; our goal to reach 10 million sales in 2015 is nearer.
Below are the customer feedbacks for Toyota. In Japan When I had an accident in my LS, I was protected, surrounded by the airbag and side- cushioning. I truly believe it is an extremely safe car.-anonymous Asia My car was struck from behind; causing it in turn to hit the car in front, but nobody was harmed. Toyota's technology saved me.-anonymous
And, below is the customer satisfaction evaluation table for Toyota. As you can see Toyota (Lexus) has a changed of 2.4% and Toyota 3.5% in customer satisfaction.
Financial
With the decrease of production defects, the cost to repair the defects will be able to be cut down which saves a large amount of cost which is supposed to be occurred into repair accounts. This will increase the contribution margin.
When customers satisfaction increases, they will more likely to purchase car again from us, thus increasing the number of cars sold, thus, contributing to the contribution margin and residual income. As safer and environmentally friendly cars are introduced, this will attract more customers to buy cars, thus, contribution margin and residual income will increases. Below has proven that our company revenue has increased by using the balanced scorecard.
Refgb r Net Revenue Operating Income Net Income and ROI