A Case Study Of FAW Toyota Motor Sales Co.,Ltd's Continuous Improvement

Toyota is famous for its unique TPS(Toyota Production System)and detailed management methodology.In both cases,the principle of "continuous improvement" provides a solid foundation.Before any solution is initiated,demand for such a solution must be identified.No matter the scale or size of the improvement,it can never be a one-off solution,it has to be treated as an iterative process.To drive this continuous improvement,Toyota requires their staff use its problem-solving method TBP(Toyota Business Practice),to first find a problem and then to analyze it.Once the objective of the improvement is established,and the business case justified,then specific actions or changes can be agreed and put in place to solve the problem.Finally,once the solution has been put into practice,the staff evaluate the whole process of improvement,finalize it into a standardized process and apply it to the next case.The ability to demonstrate continuous improvement is core to the company's competencies.Only by this means are they able to keep pace with the speed of development around them.FTMS(FAW TOYOTA Motor Sales)Co.,Ltd.is a joint venture between FAW and Toyota which combines their cultures,systems and methodologies.This partnership has itself,also become a module of good practice for these same corporate value of continuous improvement,structural agility,staff motivation and quality systems.This article focuses on two case studies,detailing Toyota's financial business practices,“Toyota's deposit and payment system which facilitated guaranteed cash flow,by obliging retailers initially to maintain a minimum daily account balance for whole cars and latterly stipulating that all new cars and spare parts had to be paid for in advance of receipt” and “Improved invoice settlement system for automobile spare part sales”.Based on these case studies,the practices of Toyota Production System are analyzed and discussed.The ultimate goal of continuous improvement is to minimize waste and improve efficiency.Toyota's application of continuous improvement not only achieved that goal but also established it as a standardized pillar of their working culture.Furthermore,it acted as a catalyst for inter-departmental communication,motivating staff and creating more value for the business.I hope that the light that this article sheds on Toyota's working methodology through research and analysis of their continuous improvement culture can inspire more local Chinese companies to follow the same path.