Toyota do Brasil Strategy and future vision

Since its foundation, the Toyota Motor Corporation has developed a production model renowned for employing the principles of efficiency, eliminating defects and driving systematic productivity. Over recent years, investments and strategic plans have been reinforcing these principles, incorporating the concepts of positive social and environmental impact, innovation and the development of harmonious relations with customers, society and the planet.

All activities conducted by employees – from the factory floor to senior management –are based on a business philosophy governed by two models: the Toyota Way and the Toyota Production System (TPS).

Adopted by numerous businesses and sectors, the TPS is geared to fulfilling customer needs with speed, quality and low production cost. The methodology is the embodiment of lean manufacturing and has been applied at Toyota since the installation of the organization's first plant outside of Japan in 1958, for the production of the Bandeirante jeep.

The Toyota Way was implanted worldwide by TMC in 2001, with management and business methodologies based on respect for people and on continuous improvement.

Using the concept of kaizen (continuous improvement), the two methodologies reinforce Toyota's commitment to production based on reducing waste, ensuring safety in operations and in the end product, and controlling risks. These guidelines, aligned with TMC's long-term social and environmental vision and growth strategy, are applied in the day to day routines of the company's subsidiaries and in its relations with suppliers, employees and dealers.

Toyota Production System – TPS

Criteria

Quality Assurance
Ensuring that only quality units proceed to subsequent stages of the process, preventing the breakdown of the production chain
Production Flexibility
Capacity to adapt to changes in demand
Respect for the Human Condition
Focus on creativity, innovation and team work, as well as on mutual trust and respect

Integrated philosophies

Just in Time Production

Jidouka
A concept proposing 100% quality in part production and not allowing a defect or failure to proceed in the process without being identified. Upon discovering an anomaly, the employee should stop production so that the problem may be fixed.

The Toyota Way

Developed and implanted in the company's subsidiaries at the beginning of the 2000's, the Toyota business philosophy for the new millennium is based on two pillars and five directives

Continuous improvement

Challenge
To build a long-term perspective, facing challenges with courage and creativity
Kaizen
To reinforce the idea that it is always possible to evolve, enhancing the company's operations and businesses
Genchi genbutsu
In Japanese, “go to the source and see”, looking for and finding the concrete facts in order to make the right decisions, build consensus and achieve quality and value creation targets

Respect for people

Respect
To make every effort to build mutual understanding and trust at all levels in the organization
Team work
Stimulating each employee’s personal and professional growth, providing development opportunities and maximizing individual and team performance

50 TOYOTA SUBSIDIARIES in 25 countries have officially joined in the QC Circle activities (read more in Employees), aligned with the Toyota Way pillars of continuous improvement and respect for people.

Toyota 2020 Global Vision

TDB is aligned with the long-term global strategy adopted by the Toyota Motor Corporation, which identifies corporate values, goals and guidelines to leverage business results, benefits for society, for customers and for the planet.

The Vision is represented as a large tree which inspires TMC and its subsidiaries to develop businesses that generate customer satisfaction, positive impacts on the community, safety and alignment with global challenges, such as urban mobility. The tree trunk is the Toyota Way, and the roots stand for the organization's values, principles, precepts and philosophy.

The model reinforces the principles underpinning the Toyota culture, such as focus on customer satisfaction, environmental care and the kaizen philosophy. In summary, the strategy sets forth what should be done, placing emphasis on how it should be done, while allowing autonomy in execution for the business units worldwide.

Pillars of the 2020 Vision

Show the way Toyota will take the lead. We will take advantage of opportunities and invest in the future.

Future of mobility We will develop new forms of transportation and seek new ways of connecting technology with people.

Enriching lives around the world Through the concept of monozukuri (manufacture), we will create jobs, develop people and contribute to society.

Safer and more responsible ways of transporting people Safety is our number one priority – for our employees and our customers. Nothing is more important.

Commitment to quality We will constantly raise our standards of trust, credibility and customer satisfaction.

Constant innovation Our goal: “Better and better cars”. We will continue to reinvent ourselves, introduce new technologies and remain ahead of the competition.

Respect for the planet We will show consideration for the planet in everything we do. We will research and promote systems and solutions that do not harm the environment. .

Exceeding expectations Our mindset will be to anticipate and fulfill the needs of those whom we serve.

Rewarded with a smile The best expression of customer satisfaction is a smile. We will be grateful and appreciative in everything we do.

Challenging targets Our purposes are elevated and we work together... this is what we are.

Engaging people's talent and passion The power of our organization stems from our employees' and business partners' skills and differences... solving problems and creating new ideas.

There is always a better way The spirit of kaizen – achieving higher levels and challenging ourselves to find a better way of doing everything we do... every day.

READ MORE about the 2020 Global Vision: click here.

How strategy is applied: hoshins

In response to the strategic map drafted by Toyota, the subsidiaries conduct hoshins – targeted annual tactical actions that enable senior management to measure business results. These strategies are designed by TMC, with the input of local knowledge from senior managers in the regions. The strategies are broken down on a global and regional level – such as the hoshin for Latin America and the Caribbean – and for Brazil (in this case the TDB hoshin). The following table shows the hoshin established for Brazil in fiscal 2015/2016, the results achieved and the plans for 2016/2017 – which continue to address the challenges faced by the company in Brazil.

TDB 2015/2016 Hoshin

The plan	Results
Improve cost competitiveness and strengthen corporate structure, achieving sustained growth	Inauguration of the new Suape logistics center, driving enhanced relations with dealers and better service in the Northeast of Brazil, and of the Porto Feliz engine plant. Progress in the SBC Reborn project.
Improve domestic sales capacity, the export business and planning for support	Growth in vehicle export sales, focusing on the Argentinean, Paraguayan and Uruguayan markets –22,000 Etios units commercialized in 2015 (January to December).
Expand capacity at the lowest possible cost and improve productivity and production flexibility	Toyota has improved its capacity and flexibility by means of the new Suape logistics center, vehicle exports to other Latin American markets and production gains in its plants, in accordance with local and regional demand.
Create a development plan for key personnel and improve their performance through the Pro-Win system	87 employees took the new leadership development program. The Pro-WIN program was maintained.
Pose challenges and promote clear communication among all employees to develop a family culture in the company	The results of the climate survey continue to fuel actions that drive the business culture and employee engagement.
Develop lasting relationships with communities, unions and government	TDB maintained its social investments through the Fundação Toyota do Brasil, with ongoing support for projects involving investments of R$ 3.9 million between January and December 2015. It has also invested via tax incentive laws (R$ 2.4 million in culture and R$ 750,000 in sport). In union relations, worthy of note was the job protection agreement signed with the São Paulo state government during a tough period for the Brazilian automotive industry (read more in Relations based on Trust).
Implementation of the SBC Reborn project in three stages: (1) Consolidation of the new corporate head office and sustained growth; (2) Implantation of the ecofactory concept, TPS and assembly of the Prius; (3) Design center and new engineering infrastructure	The new corporate headquarters have been installed in the São Bernardo do Campo plant, involving investments of R$ 19 million in the first phase up to March 2015, and a further R$ 48 million by the end of 2016. The unit is already operating along ecofactory lines, which entailed TPS training. However the project to assemble the Prius in Brazil was discontinued upon instructions from TMC. The design center was inaugurated in August 2016.

TDB 2016/2017 Hoshin

Improve cost competitiveness and strengthen corporate structure, achieving sustained growth;
Improve domestic sales and continuous improvement (kaizen) in the value chain, aimed at future growth;
Stabilize the business, minimizing impacts by means of the domestic production of parts and increased exports;
Ensure readiness in production for future growth in demand;
Create a development plan for key personnel and improve their performance through the Pro-Win system;
Pose challenges and promote clear communication among all employees to develop a family culture in the company;
Develop lasting relationships with communities, unions and government;
Continue with the Reborn project, with special emphasis on the conclusion of the TPS center, on the ecofactory and the eco-company concept, on the implantation of the design center and on the new engineering infrastructure.

2050 Environmental Challenge: positive impact

In fiscal 2015/2016, the Toyota Motor Corporation launched the Toyota 2050 Environmental Challenge, a set of directives whose main objective is to ensure the business generates a positive impact – instead of just reducing or neutralizing negative externalities. This involved the establishment of six challenges that address climate change, the use of natural resources and a business model based on a transition to a low carbon economy. At Toyota do Brasil, this challenge translates into a series of initiatives that are already underway – such as the adoption of new technologies and processes in company plants, environmental monitoring of the supplier chain and investment in lower impact vehicles. The company is also set on developing innovative solutions, such as the neutralization of factory emissions by purchasing electricity from renewable sources (read more in Environment and Eco-Efficiency).

ACCESS further information about the Toyota 2050 Environmental Challenge here.