Acknowledgement
First of all many thanks to ALLAH almighty, who bless me with a lot of skills and abilities.
Through which I’m able to complete my ro!ect with in time. I would also like to thank Sir.
Saad Jaffery whose way of teaching, method, guidance support me to do this task effecti"ely
and efficiently.
The blessing, help and guidance gi"en by him time to time shall carry us a long way in the
!ourney of life on which we all about to embark.
# $ a g e
Contents
Introduction...................................................................................................................................................................3
Executive Summary............................................................................................................................................4
Toyota.............................................................................................................................................................................5
Literature Review.........................................................................................................................................................8
Typical Logistics Mode.................................................................................................................................................
Logistics !ctivities......................................................................................................................................................."#
Relevance of Logistics................................................................................................................................................."#
$efinition of t%e Logistics Manage&ent..................................................................................................................."'
Rig%ts of t%e Logistics................................................................................................................................................."3
Logistics Infor&ation Syste&...................................................................................................................................."4
(oncept ) (o&position of !uto&otive Logistics...................................................................................................."*
+unda&entals of Toyota ,roduction Syste&-..........................................................................................................."8
Toyota Logistics Syste&.............................................................................................................................................."8
Toyota Logistics Manage&ent...................................................................................................................................''
Mi.e /ot.in0 1eneral Manager Logistics0 T232T!..............................................................................................'4
Toyota Logistics Services............................................................................................................................................'5
Logistics fro& $esign to 45ecution...........................................................................................................................'*
Seven $eadly 6astes of Logistics..............................................................................................................................'7
4li&inating 8T%e Seven $eadly 6astes of Logistics9.............................................................................................'8
(ounter Measures for 2pti&i:ing t%e Logistics......................................................................................................'8
Toyota 4;apanese automobile companies that ha"e allowed them to become successful, and a model of
best practices for the industry.
0 $ a g e
Executive Summary
Automobile industry is the world’s largest and biggest and most growing industry of the world.
From the de"eloped nation to the de"eloping nation the industry is still growing and going
towards the inno"ation and new ideas and new concepts. If we look it also consumes the ma!or
share of resources of the world but on the other hand it also pro"ides the liberty to the consumer
to mo"e under their own will and power. 1e"eloped countries are going towards the more
economical resources and trying to utili7e the most from it while the de"eloping countries are
still in the phase to make proper use of it. From start to the today where we stand Automobile
industry ha"e seen many ups and downs regarding their business and demand and most
importantly customers. The automobile industry has shown and grown with ignominious power
and stability while making customers able to understand it.
Automobile industry has learned through own mistakes as well. There reliance on the
mass production without any fa"or to the customer or looking towards them. There the Logistics
:"ol"ed and marked it mark in the society and industry. From the both ends of the logistics the
inbound and outbound logistics, the proper utili7ation of the resources and to make proper and
full use of the resources to achie"e the ma4imum le"el of the customer satisfaction and
customi7ation. Logistics is controlled by three heads, Third party Logistics, 2elfapanese automoti"e manufacturer head8uartered in Toyota,
Aichi, >apan. In -arch %)#( the multinational corporation consisted of 00C,C/& employees
worldwide and, as of Bo"ember %)#(, is the twelfthapan e4perienced e4treme economic difficulty. 6ommercial passenger car
production started in #.(/ with the model 2A.
The company was on the brink of bankruptcy by the end of #.(., but the company
e"entually obtained a loan from a consortium of banks which stipulated an independent sales
operation and elimination of Fe4cess manpowerF
In >une #.&), the company produced only 0)) trucks and was on the "erge of going out
of business. The management announced layoffs and wage reductions, and in response the union
went on a strike that lasted two months. The strike was resol"ed by an agreement that included
layoffs and pay reductions but also the resignation of the president at the time, =iichiro Toyoda.
Toyoda was succeeded by Tai7o Ishida, who was the chief e4ecuti"e of the Toyoda Automatic
Loom 6ompany. The first few months of the =orean 9ar resulted in an order of o"er &,)))
"ehicles from the 52 military, and the company was re"i"ed. Ishida was credited for his focus on
E $ a g e
in"estment in e8uipment. ,ne e4ample was the construction of the -otomachi lant in #.&.,
which ga"e Toyota a decisi"e lead o"er Bissan during the #.E)s.
In #.&), a separate sales company, Toyota -otor 2ales 6o., was established @which lasted
until >uly #.C%A. In April #.&E, the Toyota dealer chain was established. In #.&/, the 6rown
became the first >apanese car to be e4ported to the 5nited 2tates and ToyotaDs American and
3ra7ilian di"isions, Toyota -otor 2ales Inc. and Toyota do 3ra7il 2.A., were also established.
Manufacturing acilities of Toyota:
Argentina Australia
Belgium 3ra7il
Canada 6olombia
South Africa France
Indonesia >apan
Meico hilippines
!ortugal *ussian Federation
"hailand Turkey
#nited $ingdom 5nited 2tates
!oint "entures# Contract $ License% of Toyota:
!a%istan India
&hana 6hina
'rance 67ech *epublic
(imbabwe ?ietnam
)ino Motors 5nited 2tates
/ $ a g e
Literature Review
-ari 2ako the rofessor of -anagement 2tudies of business school of ,4ford 2tudies 2upplier
de"elopment a company’s undertaking to impro"e its supplier’s capabilities has been taken for
granted in the >apanese automoti"e industry for se"eral decades, and has recei"ed attention in the
52 only recently @Hadfield et al %)))A. 3ut the Toyota makes the mark with continuous :ffort
and positi"ity. Toyota -otor :uropean @T-:A 2ustainable Logistics 6amila apa Lopes, 1r.
+etulio =a7ue Akabane, 1r. 6ar"alho de -endonGa, rof. 9ashington Lui7, 1r. 6ar"alho de
-endonGa, rof. *afael -ateus 3arreto, 1r. 6ar"alho de -endonGa sustainable logistics as a
concept can be used operations as part of supply chain strategies. 2ustainable logistics targets eco
efficiency achie"ed by management of all processes in the chain that focuses on customer ser"ice
le"el, which in"ol"es from raw materials to product deli"ery to customers through design,
procurement, production, distribution, use, reuse and disposal, including aspects such as
reduction of time and resources, costs and en"ironmental impacts. Logistics operations in a
business en"ironment of rapid growth and changes, and makes possible a great reflection on
business logistics practices in this country. roceedings of the International -ulti 6onference of
:ngineers and 6omputer 2cientists %))C ?ol II I-:62 %))C, #.
First of all many thanks to ALLAH almighty, who bless me with a lot of skills and abilities.
Through which I’m able to complete my ro!ect with in time. I would also like to thank Sir.
Saad Jaffery whose way of teaching, method, guidance support me to do this task effecti"ely
and efficiently.
The blessing, help and guidance gi"en by him time to time shall carry us a long way in the
!ourney of life on which we all about to embark.
# $ a g e
Contents
Introduction...................................................................................................................................................................3
Executive Summary............................................................................................................................................4
Toyota.............................................................................................................................................................................5
Literature Review.........................................................................................................................................................8
Typical Logistics Mode.................................................................................................................................................
Logistics !ctivities......................................................................................................................................................."#
Relevance of Logistics................................................................................................................................................."#
$efinition of t%e Logistics Manage&ent..................................................................................................................."'
Rig%ts of t%e Logistics................................................................................................................................................."3
Logistics Infor&ation Syste&...................................................................................................................................."4
(oncept ) (o&position of !uto&otive Logistics...................................................................................................."*
+unda&entals of Toyota ,roduction Syste&-..........................................................................................................."8
Toyota Logistics Syste&.............................................................................................................................................."8
Toyota Logistics Manage&ent...................................................................................................................................''
Mi.e /ot.in0 1eneral Manager Logistics0 T232T!..............................................................................................'4
Toyota Logistics Services............................................................................................................................................'5
Logistics fro& $esign to 45ecution...........................................................................................................................'*
Seven $eadly 6astes of Logistics..............................................................................................................................'7
4li&inating 8T%e Seven $eadly 6astes of Logistics9.............................................................................................'8
(ounter Measures for 2pti&i:ing t%e Logistics......................................................................................................'8
Toyota 4;apanese automobile companies that ha"e allowed them to become successful, and a model of
best practices for the industry.
0 $ a g e
Executive Summary
Automobile industry is the world’s largest and biggest and most growing industry of the world.
From the de"eloped nation to the de"eloping nation the industry is still growing and going
towards the inno"ation and new ideas and new concepts. If we look it also consumes the ma!or
share of resources of the world but on the other hand it also pro"ides the liberty to the consumer
to mo"e under their own will and power. 1e"eloped countries are going towards the more
economical resources and trying to utili7e the most from it while the de"eloping countries are
still in the phase to make proper use of it. From start to the today where we stand Automobile
industry ha"e seen many ups and downs regarding their business and demand and most
importantly customers. The automobile industry has shown and grown with ignominious power
and stability while making customers able to understand it.
Automobile industry has learned through own mistakes as well. There reliance on the
mass production without any fa"or to the customer or looking towards them. There the Logistics
:"ol"ed and marked it mark in the society and industry. From the both ends of the logistics the
inbound and outbound logistics, the proper utili7ation of the resources and to make proper and
full use of the resources to achie"e the ma4imum le"el of the customer satisfaction and
customi7ation. Logistics is controlled by three heads, Third party Logistics, 2elfapanese automoti"e manufacturer head8uartered in Toyota,
Aichi, >apan. In -arch %)#( the multinational corporation consisted of 00C,C/& employees
worldwide and, as of Bo"ember %)#(, is the twelfthapan e4perienced e4treme economic difficulty. 6ommercial passenger car
production started in #.(/ with the model 2A.
The company was on the brink of bankruptcy by the end of #.(., but the company
e"entually obtained a loan from a consortium of banks which stipulated an independent sales
operation and elimination of Fe4cess manpowerF
In >une #.&), the company produced only 0)) trucks and was on the "erge of going out
of business. The management announced layoffs and wage reductions, and in response the union
went on a strike that lasted two months. The strike was resol"ed by an agreement that included
layoffs and pay reductions but also the resignation of the president at the time, =iichiro Toyoda.
Toyoda was succeeded by Tai7o Ishida, who was the chief e4ecuti"e of the Toyoda Automatic
Loom 6ompany. The first few months of the =orean 9ar resulted in an order of o"er &,)))
"ehicles from the 52 military, and the company was re"i"ed. Ishida was credited for his focus on
E $ a g e
in"estment in e8uipment. ,ne e4ample was the construction of the -otomachi lant in #.&.,
which ga"e Toyota a decisi"e lead o"er Bissan during the #.E)s.
In #.&), a separate sales company, Toyota -otor 2ales 6o., was established @which lasted
until >uly #.C%A. In April #.&E, the Toyota dealer chain was established. In #.&/, the 6rown
became the first >apanese car to be e4ported to the 5nited 2tates and ToyotaDs American and
3ra7ilian di"isions, Toyota -otor 2ales Inc. and Toyota do 3ra7il 2.A., were also established.
Manufacturing acilities of Toyota:
Argentina Australia
Belgium 3ra7il
Canada 6olombia
South Africa France
Indonesia >apan
Meico hilippines
!ortugal *ussian Federation
"hailand Turkey
#nited $ingdom 5nited 2tates
!oint "entures# Contract $ License% of Toyota:
!a%istan India
&hana 6hina
'rance 67ech *epublic
(imbabwe ?ietnam
)ino Motors 5nited 2tates
/ $ a g e
Literature Review
-ari 2ako the rofessor of -anagement 2tudies of business school of ,4ford 2tudies 2upplier
de"elopment a company’s undertaking to impro"e its supplier’s capabilities has been taken for
granted in the >apanese automoti"e industry for se"eral decades, and has recei"ed attention in the
52 only recently @Hadfield et al %)))A. 3ut the Toyota makes the mark with continuous :ffort
and positi"ity. Toyota -otor :uropean @T-:A 2ustainable Logistics 6amila apa Lopes, 1r.
+etulio =a7ue Akabane, 1r. 6ar"alho de -endonGa, rof. 9ashington Lui7, 1r. 6ar"alho de
-endonGa, rof. *afael -ateus 3arreto, 1r. 6ar"alho de -endonGa sustainable logistics as a
concept can be used operations as part of supply chain strategies. 2ustainable logistics targets eco
efficiency achie"ed by management of all processes in the chain that focuses on customer ser"ice
le"el, which in"ol"es from raw materials to product deli"ery to customers through design,
procurement, production, distribution, use, reuse and disposal, including aspects such as
reduction of time and resources, costs and en"ironmental impacts. Logistics operations in a
business en"ironment of rapid growth and changes, and makes possible a great reflection on
business logistics practices in this country. roceedings of the International -ulti 6onference of
:ngineers and 6omputer 2cientists %))C ?ol II I-:62 %))C, #.