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VALUE CHAIN AND COMPETITIVE ADVANTAGE OF PT.TOYOTA (BASED ON THE THEORY M. Porter) MISSY DESMALA 224409057 Missydesmala@rocketm ail.com

Value chain and competitive advantage of pt toyota ppt (task)

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Page 1: Value chain and competitive advantage of pt toyota ppt (task)

VALUE CHAIN AND COMPETITIVE ADVANTAGE OF PT.TOYOTA

(BASED ON THE THEORY M. Porter)

MISSY [email protected]

Page 2: Value chain and competitive advantage of pt toyota ppt (task)

TOYOTAINTRODUCTIONVALUE CHAINCOMPETITIVE ADVANTAGECONGCLUTION

Page 3: Value chain and competitive advantage of pt toyota ppt (task)

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”.

Page 4: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 5: Value chain and competitive advantage of pt toyota ppt (task)

In indonesiaPT 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/

Page 6: Value chain and competitive advantage of pt toyota ppt (task)

Value chain

Based on the theory michael poter

Based on the theory michael poter

Page 7: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 8: Value chain and competitive advantage of pt toyota ppt (task)

Primary activitiesOperations

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.

Page 9: Value chain and competitive advantage of pt toyota ppt (task)

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)

Page 10: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 11: Value chain and competitive advantage of pt toyota ppt (task)

PRIMARY ACTIVITIES OUTBOUND LOGISTIC

Outbound LogisticsCollecting, 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

Page 12: Value chain and competitive advantage of pt toyota ppt (task)

PRIMARY ACTIVITIES Marketing and Sales

Marketing and SalesProviding 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/

Page 13: Value chain and competitive advantage of pt toyota ppt (task)

PRIMARY ACTIVITIES Marketing and Sales

BRANCH TOYOTA DEALER IN INDONESIA

www.toyota.co.id/

Page 14: Value chain and competitive advantage of pt toyota ppt (task)

PRIMARY ACTIVITIES SERVICE

ServiceProviding 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

 

Page 15: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 16: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 17: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 18: Value chain and competitive advantage of pt toyota ppt (task)

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/

Page 19: Value chain and competitive advantage of pt toyota ppt (task)

Competitive adventage

Based on the theory michael poter

Page 20: Value chain and competitive advantage of pt toyota ppt (task)

Competitiv advantage cost leadership

COST LEADERSHIPLEAN SUPPLY CHAIN MANAGEMENT

[Toyota Indonesia Case]

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]

GOAL of LEAN ACTIVITY COST REDUCTION PROFIT INCREASE

Page 21: Value chain and competitive advantage of pt toyota ppt (task)

Competitiv advantage cost leadership

SIMPLE CONCEPT FROM TOYOTA

(1) SHORTENING LEAD TIMESimplifying the ProcessContinuous 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]

Page 22: Value chain and competitive advantage of pt toyota ppt (task)

Supply chain management in toyota

vendor manufaktur dealer customer

1. Local parts

2. Import parts(3)Receiving dock pc storeproduction

(4)dealer (5)customer

PC store ProductionReceivingDock

Dealer

Local Parts

Local Parts

Competitiv advantage cost leadershipSCM

By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]

• 1 and 2 Linked between internal and vendor STOCK REDUCTION USING KANBAN ( Kanban Cyclic ) & SEQUENTIAL PARTS DELIVERYKANBAN:- A small time that is the key control for JIT production

Page 23: Value chain and competitive advantage of pt toyota ppt (task)

Competitiv advantage cost leadershipSCMlogistic mangement

Internal Logistics in toyotaSimplify Process Re-arrangement of

Process

By : J.F. Ferry Yanto’s slide LEAN SUPPLY CHAIN MANAGEMENT[Toyota Indonesia Case]

Page 24: Value chain and competitive advantage of pt toyota ppt (task)

Competitive advantage different strategy

The 14 Principles of the Toyota Way The last award for excellence in getting toyota product

1. Long term philosphy2. Right process, right results3. Use ‘pull’ sytem to avoid over production4. level out the work load5. Build a culture of stopping to fix problems, to

get quality right the first time6. Standardise task are the fondations for

continuous improvement and employees empowerment

7. Use visual control so no problems are hidden8. Use only reliable thoroughly tested teghnology

that serves your people and processes9. .grow leaders who thoroughly understand the

work, live philoshpy and teach it to others10. Develop exeptional peopel and teams who

follows yours companies philosphy11. 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

1. Best Small Sedan (Toyota Vios), 2. Best Mid Sedan (Toyota Altis), 3. Best Mini MPV (ToyotaAvanza), 4. Best Low SUV (Toyota Rush) ,5. Best MPV Diesel (Toyota Kijang

Innova)6. Best PR Team 7. Best Website

http://otomotif.antaranews.com/news/1321435204/toyota-astra-motor-raih-7-autobild-award www.toyota.co.id

Book : The toyota way by jefrey k lingker

Page 25: Value chain and competitive advantage of pt toyota ppt (task)

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

affordable2. The legs of the car a more durable than competitors3.Customer care 24 hours

http://wilsonmarketing.blogspot.com/

book by philip kotler marketing management 1995

Page 26: Value chain and competitive advantage of pt toyota ppt (task)

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

Page 27: Value chain and competitive advantage of pt toyota ppt (task)

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-mo

tor-raih-7-autobild-award http://wilsonmarketing.blogspot.com/