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Toyota re-structuring to streamline work processes

By Niranjan Mudholkar,

Added 03 March 2016

Aims to create a company built around product-based organizations, rather than function-based organizations

In keeping with its overarching goal of making ever-better cars by promoting the continued development of a talented workforce, Toyota Motor Corporation (TMC) will make substantial changes to its structure in order to streamline work processes on a company-wide basis. The changes will take effect starting this April.

To date, TMC has already implemented major structural changes in its efforts to make ever-better cars, enhancing the strength and autonomy of regional operations, and emphasizing the importance of genchi-genbutsu (on-site learning and problem-solving) in training personnel.

Specifically, in 2011 TMC reorganized its structure with the aim of promoting autonomous region-based management, and in 2013 the company split a significant portion of its automotive operations into four business units.

As such, the fundamental goal of this overhaul is to create a company built around product-based organizations, rather than function-based organizations.

TMC is confident that significant value can be added through this new management structure, in which nine product- and region-based business units will compete with and learn from one another, while operating alongside TMC's Head Office (responsible for corporate functions).

"This structural change may not be the ultimate solution, but it is certainly an opportunity," said TMC President Akio Toyoda. "I would like to make this an opportunity to strengthen our workforce and further promote making ever-better cars. Whether or not this structural change turns out to be the right solution or not is in our hands," he added.

Details of these and other organizational and executive changes can be found below. The executive changes will take effect on April 1, while the organizational changes and personnel changes will be effective from April 18.

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