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Toyota Global Vision Changes for Making
Ever-Better Cars President
ʼ
s Message Medium- to Long-Term
Growth Initiatives Special Feature Management and
Corporate Information Financial Section Investor Information
Business and
Performance Review
TOYOTA ANNUAL REPORT 2012
At Toyota, we believe that recovering production is
impossible without revitalizing communities.
Therefore, our production recovery-effort priorities
were in the following order of priority: 1) Human life;
2) Quickly restoring stricken communities; 3)
Restoring production. Our core measures for post-
quake production restoration were as follows:
The Great East Japan Earthquake:
Production Recovery Efforts
All Toyota companies, from suppliers through dealers
and overseas operations, came together to provide
support and to restore, applying genchi genbutsu
(on-site verification) and the power of the workplace
for swift decision-making, immediate action plus
teamwork. This brought about a normalization of
operations far in advance of predictions, with
domestic production at almost normal levels by July
2011 and fully restored by September.
- We conducted an investigation of all primary
suppliers, including the impact of issues at
secondary and tertiary suppliers.
- Dispatched onsite investigation teams to
confirm production items and inventory.
- Examined the impact on overseas production.
The purchasing units within the operations
confirmed the availability of supplies via the
primary suppliers.
(1) Status assessment (mainly conducted by
the Purchasing Group)
(3) Look into finding substitutes
- Look into finding substitute products, but
only when restoring onsite production is
problematic.
- Evaluate substitutes.
(2) Support for suppliers
- Provided support for the 200 supply bases
visited by the onsite investigation teams.
Support for prompt restoration was
provided under our policy of immediately
doing what is truly necessary onsite.
Impact of the Disasters and Recovery Efforts
The Great East Japan Earthquake of March
2011 caused massive damage in Tohoku
and other regions, and had an impact on
many Japanese companies. Many of Toyota
ʼ
s
suppliers are located in Tohoku and eastern
Kanto, and this resulted in a temporary halt of
production at its domestic vehicle-production
plants in the immediate aftermath of the
disaster.
The disaster delayed output through June
2011 by approximately 760 thousand vehicles
globally, but enlisting the entire company in
efforts to restore the supply network enabled
us to recover output of about 600 thousand
units from July on. Therefore, the total impact
of the disaster in fiscal 2012 was a decrease
in output of about 150 thousand vehicles.
The Thailand floods that began in July 2011
caused damage to Toyota
ʼ
s suppliers there
and had an impact on global production.
By adjusting the operational levels of each
production line according to the parts situation,
we were able to return to normal operations in
North America by the first half of December
2011, and in Thailand by the beginning of
2012. As a result, the Thailand floods caused
a decrease in output of about 240 thousand
vehicles in fiscal 2012.
While the impact from these two
disasters was initially estimated to decrease
output globally by approximately 1 million
vehicles, output of 600 thousand vehicles was
recovered through a unified, companywide
effort that held the drop in output to only
about 390 thousand vehicles
(
actual vehicle
output: 7.52 million
)
.
Toyota is revising its Business Continuity Plan
(
BCP
)
as needed to strengthen measures
to protect lives and maintain production
in the event of a natural disaster. Drawing
upon lessons learned from the supply chain
disruptions we experienced due to the Great
East Japan Earthquake and Thailand floods,
we conducted a
“
visualization
”
analysis of the
supply chain, including tertiary and 4th-tier
suppliers. We then launched measures
such as decentralizing sources for at-risk
parts and converting to generalized designs.
Our work to further strengthen our disaster
countermeasures is proceeding from the twin
perspectives of strengthening our everyday
competitiveness and building a business
structure able to withstand disasters.
The Japanese automobile industry faced
two major natural disasters in 2011: the
Great East Japan Earthquake and the
Thailand floods. Toyota overcame these
crises through unified efforts with its group
companies, suppliers, and dealers, all
engaging in a variety of efforts to restore
operations so as to achieve even more
prompt delivery of vehicles to customers.
The Great East Japan Earthquake
Floods in Thailand
Disaster Response
Impact of the Disasters and
Subsequent Efforts
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Contents
0821
Automotive Operations Financial Services OperationsConsolidated Performance Highlights
Non-automotive Business Operations Impact of the Disasters and Recovery Efforts