ASSIGNMENT I: TOYOTA (MALAYSIA)

UMW TOYOTA MOTOR SDN. BHD.

INTRODUCTION

       The automotive industries grow rapidly with introducing the new technology of cars and also innovating the existence cars to be more excellent in the customers sight. Toyota, Audi, Honda and also our pride automotive company which is Proton are racing to compete with each other. Since market changes rapidly, those companies always thinking about bringing the rapid solutions to product design and development to be competitive corporations.

        This paper focuses on the automotive company of Toyota. Back history of the Toyota was starting from the birth of the Toyota’s founder Sakichi Toyoda on 1867. He grows up as the son of a poor carpenter, but is considered the “King of Japanese Inventors”. He is also believed to be the father of the Japanese industrial revolution. With his breakthrough invention of the automatic loom, Toyoda took the resulting money to create the Toyota Motor Company. A huge contributing factor to the birth of company is the support of the Japanese government during the war in Manchuria. It traces the company’s development through 1937 from when Toyota Motor Corporation are established to when the 2 millionth Prius hybrid are sold. In the year of 1950, Toyota faces the financial crisis and at the same year established the Toyota Motor Sales Corporation. Seven years after that (1957), the first prototypes of the Crown are exported to the United States. this is the starting of the internatinalization of the company. Other than that, Brazil is the first country in which Toyota constructs a production plant outside of its national borders; this took place in the of 195. Toyota is continually develops and successfully wins the Deming Application Prize for quality control on 1965. Various type of cars have been launched such as Corolla (1966), Lexus (1989), Prius (1997) as the world’s first mass-produced hybrid car. In addtion, Toyota also enters Formula One World Championship on 2002.

          In January 1982, UMW Corporation Sdn. Bhd. and Toyota Motor Corporation forms a joint venture company, Sejati Motor to commence automotive business in Malaysia. then, Sejati Motor changes its name to UMW Toyota Motor Sdn. Bhd. in 1987. The Head Office of UMW Toyota Motor Sdn. Bhd. is located at Seksyen 15, Shah Alam, Selangor. The paid-up capital takes RM59 million. There are three shareholders for this corporation which are UMW Corporation Sdn. Bhd. (51%), Toyota Motor Corporation (39%) and Toyota Tsusho Corporation (10%).

COMPANY VISION

Respect for the people and the environment

Continually aspire to be the most admired organization that conducts itself with excellence and integrity; with utmost respect for our people and the environment.

COMPANY MISSION

   1. Achieving the Customer First philosophy by focusing all our efforts in delighting the customers and strengthening our relationships with business partners.

    2. Offering world-class quality products and services that meet customers’ needs in the most cost-efficiency way.  

     3. Developing a highly committed and capable workforce with strong safety awareness.

      Adopting Toyota Way as our core value in everything that we do. 

     4. Contributing to the community by promoting the preservation of the environment and enhancing community service.

Achieving the Customer First philosophy by focusing all our efforts in delighting the customers and strengthening our relationships with business partners.

UMW Toyota Motor Sdn. Bhd. Ensure a consistent and quality after-sales service. To serve a large base of customers, Toyota has established an extensive service network in Malaysia. As 2010, Toyota Service Centers nation wide and we are still working to expand our network. These expansion plans are in line with the requirements of Toyota’s global standards; that is, to ensure Toyota Service centers are widely available and easily accessible to all customers.

All Toyota work bays are fitted with state-of-the-art technology and our technicians use only specially designed precision tools for Toyota servicing and repairs. Only Toyota Genuine Parts are fitted to ensure exact Toyota specifications and high quality standards are met. Customers’ convenience is always a priority, and our Appointment System and Express Maintenance makes it easier for busy customers to service their Toyota vehicles.

Besides that, Toyota Motor Sdn. Bhd. Taking care of customers at any time and any place. All Toyota service center personnel, from service advisors to technicians, go through intensive training to meet Toyota’s strict standards’. With the assurance of peace of mind, customers can count on their 24-7 Road Assistant service provides roadside assistance 24 hours a day, 7 days a week. For anyone has any enquires, they just a phone call away with Toyota Freephone. Toyota Call Centers operations are able to conserve in Malay, English and Chinese.

Furthermore, Toyota also responds thecustomers’ needs for personalization. Toyota is constantly trying to understand product trends and customers’ needs through our market research. Toyota genuine accessories have been uniquely developed for the Malaysian  market and are available for all Toyota vehicles. This allows our customers to personalize and enhance the functionality of their Toyota. When making purchase decisions, customers are able to select accessories to be installed onto their Toyota vehicle. This is done at Toyota Accessory Center by trained personnel, to meet the strict Toyota quality and standards. All Toyota genuine accessories are offered with warranties.

That’s why, Toyota has strong relationship with their business partner because of, they provide the best customer services and it leads to achieves Sales Satisfactions Index. Because of that, they can compete with other automotive company in order

Offering world-class quality products and services that meet customers’ needs in the most cost-efficiency way.

Toyota also delivered only the best through Kaizen activities by all the team members. The legendary reputation of Toyota vehicles for reliability is the result of Toyota Motor Corporation’s passion quality and focus on customers. At each stage of the manufacturing process, they take every step to ensure quality is secured. Toyota has instilled the Quality and Kaizen mindset amongst their employees following the Toyota Way culture and values. This enables Toyota to continue to provide their customers with quality products and services that they have been long known for. Besides that, Toyota vehicle quality achievements have been recognized by the JD Power Survey for Initial Quality Study (IQS). The IQS serves as the industry’s benchmark for new vehicle quality, both in design and production (defects/malfunctions). The results of the JD Power Survey for IQS are testament to their consistent achievement in meeting the mark of good quality and design innovation.

Developing a highly committed and capable workforce with strong safety awareness.

Toyota always ensured 100% safety as their top priority where safe practices are incorporated into their daily operations, including assembly and manufacturing plants, vehicle and parts distribution centres, sales and service centres, and throughout the company. Their employees are trained in safety procedures on their first day at work, during the induction program. Such safety training extends throughout their career-term. Furthermore, at pre-shift meetings, the first topic to be discussed is safety, while regular pre-safety checks are carried out on manufacturing equipment. The three key areas that are prioritized include Equipment & Tools, Standardized Work and Training & Confirmation. The training in all three key areas is enhanced via KYT (Kiken Yochi Training, which means training for the prediction of danger), periodical audits and suggestion schemes. Genchi-Genbutsu (Experience, Observe and Analyse) is also a fundamental part of the accident prevention process. In addition, the safety of their staff is of utmost importance to the company, and regular campaigns are held to increase the awareness and skills of staff in keeping safe on the road.

Adopting Toyota Way as our core value in everything that we do.

4 Core Values

Honour

•           Enduring commitment to integrity and trust. UMW builds trusted relationships and behave with high integrity, resulting in quality products and services that stand the test of time

Vibrant

•           Contagious energy and appreciation of fresh thinking. UMW starts each day with fresh thinking and use boundless energy to fuel growth and deliver new solutions for their partners and businesses.

 Unshakeable

•          Unwavering resolve and commitment in everything they do. UMW hoes forward with determination and perseverance in the face of any obstacle, building a strong foundation for success.

Pioneering

•          Their visionary approach to developing and shaping their industries. They challenge assumptions and lead the way with bold ideas that shape our industries and make things better.

Contributing to the community by promoting the preservation of the environment and enhancing community service.

Toyota Environment is part of the key Corporate Social Responsibiliy (CSR) programmes undertaken by UMW Toyota Motor, Malaysia. Sustainability and the environment have always been an integral part of Toyota culture. On global scale, Toyota strives at every level to be more environmental from developing the Hybrid technology in the Prius, to streamlining its processes and systems at manufacturing plants. Their local effort proudly takes its place beside these other eco initiatives by Toyota Worldwide. On a regional scale, UMW Toyota Motor’s environmental activities have also influenced their counterparts in other countries, as evidenced by Toyota Eco Youth, pioneering success in Malaysia that was later adopted in Indonesia and Japan.

Environmental preservation is placed by the Toyota as the high list of prioroties. Toyota set the targets and have achieved  reduction of carbon dioxide emissions for the logistic activities and their assembly facility. this target and achievement are guided by the Toyota Environmental Action Plan. Packaging material for parts have been designed to reduce wastage, and hazardous wastes are managed to ensure complience with Environment Quality (Scheduled Waste) Regulation 2005.

In 2009, the assembly facility, Assembly Services Sdn. Bhd. (ASSB), celebrated its 10th year of being ISO 14001 certified, an internationally recognized standard for environmental management systems. Similarly, all Toyota Service Centres have been ISO 14001 certified since 2006.

In order to implementing the environmental preservation, Toyota successfully creating cars that are in harmony with nature by introducing the world’s first mass-produced hybrid car, the Toyota Prous in 1997. It has been proven to be the most popular hybrid car in the world, with worldwode sales exceeding the 2 million mark as of end September 2010. the Toyota hybrid system combines different power sources (petrol engine and an electric motor) to maximise efficiency while signifantly reducing unwanted emissions. Together with the use of eco-friendly and recyclable materials, Toyota’s hybrid cars have fulfilled the goal of creating products that are in harmony with the environment.

In addition, the Lexus LS 600h L and Lexus RX 450h, full hybrid luxury vehicles, were introduced to Malaysia in 2010 by Lexus Malaysia. Subsequently, the Lexus CT 200h was added to the hybrid line-up in 2011.Toyota hopes to realise their dream to see more hybrid vehicles on Malaysia roads in the future.

COMPANY OBJECTIVES

Achieving Market Leadership by Delivering Value to Customers

•        Following “Customer First” philosophy in manufacturing and providing high quality vehicles and services that meet the needs customers.
•         Enhancing the quality and reach of our 3S Dealership Network.
•   Employing customer insight and feedback for continuous corporate renewal, including product development, improving serving and customer care.

Optimizing Cost by Kaizen

• Fostering a Kaizen culture and mindset at IMC, its Dealers and Vendors.
• Implementing Toyota Production System.
• Removing waste in all areas and operating in the lowest cost quartile of the industry.

Respecting Our People

•          Treating employees as the most important sustainable competitive resource.
•          Providing a continuous learning environment that promotes individual creativity and teamwork.
•          Supporting equal employment opportunities, diversity and inclusion without discrimination.
•       Building competitive value through mutual trust and mutual responsibility between the Indus team        and Company.

Becoming a Good Corporate Citizen

•          Following ethical business practices and the laws of the land.
•         Enhancing corporate value and respect while achieving a stable and long-term growth for the benefits of our shareholders.

UMW TOYOTA MOTOR SDN. BHD. MILESTONES

1955	The very first three units of Toyota Land Cruiser, imported by North Borneo Trading Co. Ltd.(NBT), are shipped from Japan to Jesselton(now Kota Kinabalu), Sabah
1968	Assembly service Sdn. Bhd.(ASSB) starts its Toyota Vehicle Assembly
1972	Automotive industries Sdn. Bhd.(AISB) is established.
1982	UMW Corporation Sdn. Bhd. And Toyota Motor Corporation forms a joint venture company, Sejati Motor, to commence automotive business in Malaysia.
1987	Sejati Motor changes its name to UMW Toyota Motor Sdn. Bhd.
1999	Toyota Motor Corporation increases its stake in UMW Toyota Motor Sdn. Bhd. To 39% and Toyota Tsusho Corporation maintains its 10% stake
2000	Achieves assembly volume of 500000 vehicles.
2003	UMW Toyota Motor Sdn. Bhd. Achieves No.1 in JD power Survey for Sales Satisfactions Index( SSI)
2004	UMW Toyota Motor Sdn. Bhd. Opens its new Parts Distribution Centre in Shah Alam, Selangor.
2006	Export of Toyota Hiace to Thailand begins. UMW Toyota Motor Sdn. Bhd. Achieves No.1 in JD power Survey for Sales Satisfactions Index (SSI). UMW Toyota Motor Sdn. Bhd. Establishes Lexus Malaysia.
2007	Lexus Malaysia opens its first Lexus showroom in Mutiara Damanasara, Selangor. UMW Toyota Motor Sdn. Bhd maintains No.1 in JD power Survey for Sales Satisfactions Index (SSI). UMW Toyota Motor Sdn. Bhd opens its new Regional Parts distribution centre in Kota Kinabalu, Sabah
2008	UMW Toyota Motor Sdn. Bhd. Achieves 100,000 units of Toyota Vios vehicle sales in Malaysia. UMW Toyota Motor Sdn. Bhd. Achieves No. 1position for both in the JD power Survey for Sales Satisfactions Index (SSI) and Customer Satisfaction Index (CSI), in JD power Survey.
2009	UMW Toyota Motor Sdn. Bhd. Introduce the Toyota Prius, the first hybrid car from Toyota in Malaysia. UMW Toyota Motor Sdn. Bhd. Maintains No.1 in the JD Power Survey for Customer Satisfaction Index (CSI). UMW Toyota Motor Sdn. Bhd. Achieves over 1,000,000 total Units Serviced (TUS).
2010	UMW Toyota Motor Sdn. Bhd. Expands its Parts Distribution Centre in Shah Alam, Selangor. Lexus Malaysia opens a new Lexus Showroom in Penang.
2011	Achieves assembly volume of 1,000,000 vehicles. UMW Toyota Motor Sdn. Bhd. Opens a new Vehicles Distribution Centre and test track in Bukit raja, Klang, Selangor. Lexus Malaysia introduces the first entry-level hybrid luxury vehicle, the Lexus CT 200h and expands its networks to Johor and Kuala Lumpur

STRATEGIES

Sales Operation

Sales and support network of Toyota Malaysia is referring to the 3S concept which focusing on sales, service and spare parts. The concept must be applied at all Toyota outlets around Malaysia. Its showroom is located strategically at major cities throughout nation. The allocation of Toyota outlet is based on the market needs at the selected region.

Toyota always considered customers as their utmost priority; therefore, each sales personnel must show excellent performance all the time. Their sales personnel are approachable, knowledgeable and professionally trained before they are allowed to meet customers.

Sales operation also has close relation to the panel companies especially with Toyota Capital Malaysia Sdn. Bhd. Financial solutions for financial assistance is also provided for the customers in order to fulfill all level of Toyota users.

Toyota offers diverse lifestyle products for the community. They always keep track on the market needs in line with the trends and innovations through their market research time by time.

Genuine accessories are uniquely developed for Malaysian’s market and available for all Toyota vehicles. When a customer purchases a Toyota vehicle, he can choose accessories to be installed to the vehicle. All accessories and products are offered with warranties.

For early 2012, Toyota Malaysia on the distribution of 2012 Toyota Avanza, a new model of current Avanza. The company is looking at a volume of 8,800 units for 2012 which will be about 9.5% of Toyota sales in Malaysia.

Customer Service Operations

In order to maintain the business, Toyota also cares about their customer services operation. There are three main items include under the customer service operation which are after-sales service, parts and TopMark.

After sales-service is functioning to ensure a consistent and quality after the sales-service. By this chance, the customers may experience the high satisfaction regarding Toyota products and services. In order to serve a large base of customers, they have established an existence service network in Malaysia. Toyota in the presence having of 61 Toyota Service Centres nationwide and they are still working to expand their network. These expansion plans are in line with the requirements of Toyota’s global standards which is to ensure Toyota Service Centres are widely available and easily accessible to all customers.

Generally, Toyota Services Centres offer a wide range of services and products, from periodic and preventive maintenance services to body and paint repairs to ensure their company positioned in the top ranking of competition.

Their work bays itself are fitted with the state-of-the-art technology and their technicians use only specially designed precision tools for Toyota servicing and repairs. The Toyota Genuine Parts are only fitted to ensure exact Toyota specifications and high quality standards are met.

For Toyota, their customers’ convenience is always a priority. Then, their Appointment System and Express Maintenance acts as a medium to make it easier for busy customers to service their Toyota vehicles.

Toyota also put stress on their customer satisfaction for anytime and anywhere. Then, to achieve and maintain this aspect, all of Toyota service centres personnel, from service advisors to technicians, go through an intensive training to meet Toyota’s strict standards.

 Customers can count on their 24Seven Road Assist Service with the assurance of peace of mind, in the event of an emergency. 24Seven Road Assist provides roadside assistance 24 hours a day, 7 days a week.

Furthermore, for anyone who has any enquiries, they are just a phone call away with the Toyota Free phone. Their Call Centre operators are able to converse in three languages which are in Malay, English and Chinese.

Apart from that, Toyota also makes sure the distribution of Toyota Genuine parts delivered at the right time. Basically, the distribution of Toyota Genuine Parts is done through the Parts Distribution Centre. The parts are stored systematically at their Part Distribution Centre to ease the management thus smooth the distribution process. Toyota also established regional distribution centres in Sabah and Sarawak near their outlets. For Toyota itself, their objective of having such regional distribution centres near their outlets is to ensure that Toyota Genuine Parts are delivered in the timely manner.

Besides that, they are also considering the TopMark aspect which is enhancing the value of pre-owned Toyota and its quality. TopMark is the pre-owned vehicle dvision of UMW Toyota Motor Sdn Bhd that supports their new vehicle sales by offering trade-in services to customers who are buying new Toyota vehicles.

Then, TopMark’s presence also to ensure that the resale value of Toyota vehicles are protected and maintained at a reasonable price, thus allowing Toyota owners to get the best value when they trade-in their Toyota vehicles.

For the customer confidence, all pre-owned vehicles at TopMark come with the Certificate of Assurance endorsed by Puspakom and go through stringent quality control inspections. This is to ensures they are free from any defect occurred. Toyota pre-owned vehicles also come with a 12 month warranty for free.

Manufacturing

Toyota’s global standard has the most advanced facilities and expertise have been implemented at the UMW Toyota Motor group’s manufacturing companies to produce the latest product and service. The legendary reputation of Toyota vehicles for reliability is the result of Toyota Motor Corporation’s passion for quality and focus on customers. The Toyota vehicle quality has been recognized by the JD Power Survey for Initial Quality Study (IQS). The IQS serves as the industry’s benchmark for new vehicle quality, both in design and production. Their manufacturing plant applies the famous Toyota Production System (TPS) based on the basic concepts of Just-in-Time (JIT) and Jidoka, the TPS can efficiently and quickly produce vehicles of sound quality, one at a time. Toyota also has established a strong network with 56 Tier 1 suppliers. They behold the principle that suppliers to be not only business partner, but also their own people. Their strategy in seeking to enhance Malaysia’s auto parts industry and further localization is by introducing the Toyota Quality Standards and Toyota Production System (TPS) to their auto parts suppliers. They also achieve the best in quality and the shortest lead time with the TPS.

Their strategy for year 2012 is to launch the new Camry and facelift Vios soon based on President and group chief executive officer Datuk Syed Hisham Syed Wazir. He also said the group planned to launch new and facelift models this year and they were expexted to boost demand. Furthermore, he said that they just launched the new Toyota Avanza, Prius and Prius. Meanwhile, UMW Toyota has targeted sales of 1,500 units for the improved Prius and 2500 units for Prius this year.

Based on President Ismet Suki said Toyota is monitoring the demanf for energy efficiet vehicles, including hybrid cars in the country. Moreover, UMW Toyota Motor Sdn. Bhd. would consider assembling or manufacturing components of Toyota’s hybrid cars in Malaysia if demand and volume increases.

Toyota also contributes towards the development of Malaysia’s automotive industry with their latest technology. The most advanced facilities and expertise which meet Toyota’s global standards have been implemented at the UMW Toyota Motor group’s manufacturing companies to produce the latest products and services. Their people have been professionally trained and equipped to handle the demands of Toyota’s global standards. Toyota investment in human resources and facilities is a continuous endeavor. This allows them to contribute to the development of the automobile manufacturing industry in Malaysia. The exportation of Hiace vehicles to Thailand started in 2006, and this is a clear indication of the widespread preference towards the Made-in-Malaysia Toyota vehicles, even outside the country.

Besides that, Toyota achieved the best in quality and the shortest lead time with the Toyota Production System (TPS). With an outstanding logistics system in place, Toyota is better able to deliver the best quality products in the shortest possible lead time to their customers.  Kaizen is applied in logistics processes, facilities and investment strategy for the necessary equipment is based on the Toyota Production System (TPS). They follow the basic concepts of delivering the required product in the necessary quantity at the necessary time. Also, respect for the customers’ point of view is reflected in the core business philosophy of “customer first” which is an integral part of the logistic system.

Automotive

Toyota provides after-sales services to ensure a consistent and quality after-sales service. They want to expand their service network nationwide.This mission is to ensure Toyota Service Center is widely available and easily accessible to all customers and for sure in line with the requirements of Toyota’s global standards. The offer of this services and product are wide, from periodic and preventive maintenance services to body and paint repairs. The condition of the work bays are fitted with state-of-the-art technology and their technicians use only specially designed precision tools for Toyota servicing and repairs. Only Toyota Genuine Parts are fitted to ensure exact Toyota specifications and high quality standards are met. Customer’s convenience is always a priority, and their Appointment System and Express Maintenance makes it easier for busy customers to service their Toyota vehicles.

Toyota care about the customer at any time and any place which all of the services available 24seven. The customer may call the Road assist service in the event of an emergency and it for 7 days a week.  There are 3 languages that provided by the Toyota Call Center operators Malay, English and Chinese.

Respect People

Toyota has Human Capital Development which is respecting their people. Toyota respects their people and recognizes them as their most valuable resource. Human capital development is indispensable for the long-term growth and success of the company. The development of their people, especially in the area of teamwork, is essential in delivering the best quality products and services to the customers. Toyota knowledge Development Center has been established in-house specifically to provide management and skill-development training to their people. As guided by the Toyota Way, the company respects all of their staff members and together shares the customer first philosophy.

Besides that, Toyota recognizing outstanding performance and teamwork by provide employee’s excellence. On Toyota journey towards human capital excellence, staff recognition forms an important part of their employee retention philosophy. Recognition programmed are designed to promote a healthy competition among the people and encourage high performance in achieving organizational success. Various activities are also held both on and off site in driving more proactive communication among their people. The company also provided the annual Chairman’s Awards to those who performed best in customer service-in the sales or service category nationwide. Winning teams of the QC Contest and skill Contest are sent to japan for training. Toyota Company also offers scholarship awards to our staff and their children in promoting knowledge development.

Toyota Company also takes care of employees’ welfare. They have supporting all employees and their families towards a healthy enjoyable life. Toyota provides various schemes such as home loans, medical check-ups and education subsidies are offered to employees. Through these schemes, our employees can maintain healthier and fulfilling lives with their families. Family events and sports activities are often organized to foster team spirit and create a livelier environment for all. For several years, their team has been the overall champion at UMW Corporation PestaSukan. Toyota company sends their teams to Japan for sports events held by Toyota Motor Corporation, Japan, to motivate them.

Corporate Social Responsibility

Improving the quality of life

As a good corporate citizen, toyota’s philosophy has always been about improving the quality of life and contributing to society wherever it operates.

        At UMW Toyota Motor Sdn. Bhd., they actively contribute to the sustainable development of the community. They commitment is demostrated through many Corporated Social Responsibilty (CSR) initiatives that focus on the environment, road safety and philanthropy.

Road Safety

The Road Safety programme, one of the CSR pillars, is a joint effort between UMW Toyota Motor Sdn. Bhd., the Ministry of Transport and the Ministry of Education. The objective is to cultivate road safety awareness amongst primary school students, and encourage them to apply the knowledge learned in their school’s road safety curriculum.

Advocating the importance of conserving the environment

In order to cultivate environmental awareness and encourage respect for the environment amongst the youth in secondary schools, the Toyota Eco Youth (TEY) programme was conceived in 2001, in a joint effort between UMW Toyota Motor Sdn. Bhd. and the Ministry of Education.

This program has a purpose to educated the youth on the importance of conserving and acting responsibly toward the environment. Using the QC Problem Solving approach, TEY teams address various environmental issues which include the reduction of electricity consumption, treatment and recycling of efflents, managemen of water and water usage in school to name a few.

 CONCLUSION

In conclusion, based on vision, mission and strategies of Toyota that gives the priority to the people and environmental preservation lead them to introduce the first entry-level hybrid luxury vehicle and achieves assembly volumes of 1,000,000 vehicles in 2011.  Toyota continually to be the most admired organization by balancing the priority between people and environmental preservation. They established and maintain the relationship with customers and business partners by offering the high quality of products and services that fulfill the customer’s requirement and enhancing the reliability of business partners towards them. In terms of environmental preservation, Toyota develops the cars that have eco-friendly characteristics and implements the programs as initiatives to reduce carbon footprint.