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30 TOYOTA Annual Report 2008
Business Overview
Solid Foundations for Future Growth
For Toyota to continue to grow, it is essential that it remains committed to
achieving the world’s highest quality, despite the difficulty of the business
environment. This commitment to continuous improvement in the areas of
“technology,” “production & supply,” and “sales & marketing” that drives
our growth, and of the “product quality,” “cost,” and “human resources”
that sustain it, has long been a guiding principle at Toyota. We plan to
realize future growth by establishing solid foundations for product quality,
cost, and human resources. This strategy will enable us to offer the world’s
best products, the world’s fastest and the lowest-cost manufacturing, and the
world’s best sales and services.
In 2005, we established a CF* Activity Promotion Committee to create the
ideal environment for putting “customers and quality first” and to ensure
that defects do not reach the market.
Since January 2007, we have returned to the roots of our CF policy and
renewed awareness that “quality must be built-in within each process.”
This means that quality is confirmed at each stage of the production process,
so that only top-quality work is permitted to move on to the next stage.
This concept is fundamental to all processes, and although originally applied
Quality is... Toyota’s Lifeline
CF Activity Promotion Committee
Reinforce “quality must be built-in within each process”
Groupwide Activity
Development Manufacturing Suppliers After Sales
CF Activity Promotion Committee
Establishing a Solid Foundation for Future Growth
by Striving to Improve Quality at Every Level
History of CF Activities
Phase 3: Built-in quality
= Instituting “quality must be
built-in within each process”
(Ever increasing work quality)
Phase 1: Preventing defective products from leaving Toyota
Phase 2: Overcoming problems based on past experience
CF activities and boosting awareness on quality
1
2
3
4
’05 ’06 ’07 ’08 (Year)
Quality improvement activities,
work quality, awareness level
High
Low
Phase 3 activities are
currently being implemented
Product Quality / Cost
Human Resources
Technology
Production
& Supply
Sales &
Marketing
Toyota staff checking a manufacturing
process at a supplier
Establishing Solid Foundations