Toyota 2007 Annual Report Download - page 14

12 ANNUAL REPORT 2007
going back to the drawing board, we are painstakingly improving “design
quality” by analyzing the causes of problems from the design stage, which
is the source of quality. We are also honing our ability to analyze quality
on production lines by introducing in-line measurement. And, we are reassert-
ing our basic conviction that assembly processes build in quality by introducing
a team-leader system for training production personnel. Moreover, in an effort
to improve quality through production and development, we are collaborat-
ing closely with suppliers. Through this range of initiatives, we are steadily
producing results. Having said that, quality improvement never ends.
Therefore, to avoid complacency, we will use those initiatives as a starting
point for further quality improvement efforts.
In fiscal 2007, while absorbing an increase in material costs, Toyota achieved
cost reductions of roughly ¥100 billion. Cost reductions will become more
important than ever as a way of strengthening cost competitiveness, prevail-
ing against market competition, and securing high earnings given such antici-
pated trends as continuing increases in material prices, a shift in demand
toward compact cars, and the further introduction of new technologies as
part of environmental and safety measures.
One example of our cost reduction efforts is the Value Innovation ini-
tiative, which began in 2005. Through this initiative, we look to reduce costs
in the development and design stages by taking a systems-based approach.
Using Value Innovation, we have prepared plans for models all the way
through to 2010, and we will incorporate the benefits of the initiative in new
models released during the coming fiscal year.
At Toyota, we believe that a combination of people and technology lies at
the heart of a company’s competitiveness. Therefore, we are moving for-
ward with personnel training based on the philosophy that developing
human resources is a key part of manufacturing. These efforts extend
beyond simply having employees acquire knowledge and skills that devel-
opment, production, or sales divisions need. Globally, we are implementing
programs to enable all employees to embrace Toyota’s culture and values
and understand the Toyota Way.
An important factor in training employees is the establishment of sys-
tems that encourage coworkers to share goals and work as a team. Bearing
that in mind, this year we introduced a team-leader system in divisions to
Would you explain the progress of Toyota’s cost reduction
initiatives?
Our cost reduction efforts are counteracting higher material
costs and growing earnings.
Q
A
What steps is Toyota taking in personnel training?
True to our basic belief that manufacturing is about developing
people, we are concentrating on personnel training.
Q
A