Toyota 2013 Annual Report Download - page 6

Toyota Global Vision President’s Message Launching a New Structure Special Feature Review of Operations
Consolidated Performance
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Management and
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ANNUAL REPORT 2013
Ensuring that each unit pursues the most
appropriate business model
Under the new management structure, each business
unit will optimize its own business model and aim for
steady improvement, an approach that is expected to
contribute to across-the-board growth. Toyota has thus
put in place a structure that is capable of continuously
making ever-better cars and maintaining outstanding qual-
ity and profi tability while further expanding vehicle sales.
In addition to the ongoing development of the Lexus
business as a in-house company, the Toyota business
has been split into two business units and executive vice
presidents appointed to assume responsibility for opera-
tions and earnings. Just as the Lexus business has its
own business model, the Toyota brand maintains two
clearly distinct models covering operations in developed
and emerging markets. For the developed markets in
which Toyota No. 1 operates, success rests on our ability
to capture replacement demand amid a market that is
projected to remain stagnant in terms of scale. With this in
mind, every effort will be channeled toward securing quali-
tative growth by expanding sales of ever-better cars that
incorporate advanced technologies in such fi elds as the
environment and safety. Meanwhile, the emerging
markets in which Toyota No. 2 operates are experiencing
rapid growth. In these markets it is essential to capture
new customers by introducing well-timed products that
fi t market needs. Essentially, both Toyota No. 1 and Toyota
No. 2 must work to understand the particular stage of
development of their respective markets, and must
expand these markets by introducing ever-better cars.
They will also need to harness their accumulated know-
how to address the concerns that come with expansion.
Adopting a horizontal structure, regional headquarters
have been established within Toyota No. 1 and Toyota
No. 2 to ensure that the unique markets of each region
are handled in an attentive and appropriate manner. With
regard to annual vehicle sales, goals have been set for
the Lexus, Toyota No. 1, and Toyota No. 2 units at
approximately 500,000 units, 4,000,000 units, and
3,000,000 units, respectively.
With the aim of bringing products to market in
a responsive and timely manner, the Unit Center has
been charged with developing globally competitive “unit”
components, and its purview encompasses all opera-
tions from components planning to the development of
production technologies and functions. To secure the
comprehensive structure these operations entail, all
related component departments, including factories,
have been consolidated under the Unit Center with an
executive vice president appointed to oversee operations
as head of the Unit Center. While Toyota’s principal prod-
ucts, its cars, are universally recognized as central to its
business and management, it is possible that compo-
nents will play an even more signifi cant role. Looking
ahead, it is quite possible that the fate of manufacturing
companies will depend more on the competitiveness of
their components than that of their fi nished products.
In keeping with the above, Toyota has constructed
a new facility to facilitate the development of powertrains,
which are expected to play an increasingly central role in
the manufacture of ever-better cars. The facility, which
went online in February 2013, will enable us to produce
ever-better powertrains, and will play a vital role in trans-
forming the way we work and supporting the future of
the company.
In overall terms, there two overarching goals for transform-
ing the way we work. The fi rst is to create an environment in
which powertrain research and development staff can
engage in face-to-face discussions with the staff respon-
sible for production technologies and the development of
production methods. The second is to create a system
that can evaluate all stages of development, from funda-
mental technologies to fi nished vehicles and compo-
nents, under one roof.
To ensure that Toyota maintains a genuine competitive
advantage, we will position TNGA at the heart of our
endeavors as we engage in a comprehensive review of
the way we work. By making decisions in a timely
manner and optimizing our business development strate-
gies to suit markets, we will strive to make ever-better
cars that meet local needs the world over. The overarch-
ing goal of the Toyota Global Vision is achieving sustain-
able growth, and this will remain our focus as we look to
the future.
Transforming the way we work
쎲 Unifi ed development offi ce
(1) Stronger collaboration between engineering
and production
쎲 Comprehensive evaluation under one roof
(2) Expeditious prototype creation and evaluation
(3) Single item and product evaluation on a vehicle
and component basis
왎 Optimum development effi ciency
왎 Challenge of developing
new technologies
12F
11F
10F
9F
8F
7F
6F
5F
4F
3F
2F
1F
Prototype
creation and
production
development
Standalone evaluation
Performance evaluation
Power package evaluation
on a vehicle basis
Power package evaluation
Component evaluation
Product development
Prototype and production
technique development
Performance evaluation area
2 Expeditious prototype
creation and evaluation
Unified development
office
1 Strengthen collaboration
and engineering
and production
Vehicle and component
evaluation area
3 Single item and product
evaluation on a vehicle
and component basis
(Dimensions: 108m x 89m x 58m; total floor space: 101,228m2)
Powertrain Development and Production Engineering Building
Powertrain Development and
Production Engineering Building
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Launching a New Structure to Help Fulfi ll the Toyota Global Vision