The company decided to change its production strategy because of fierce competition due to trade liberalisation, its expectations as a global manufacturing base, and signs of structural change in the markets. It has also established a new system of production, called the innovative international multi-purpose vehicle (IMV) project.

Managing officer Ryoichi Sasaki said at seminar on strategies to build a competitive edge in the Asean region, held by the Japan Management Association (JMA) yesterday, that the project would increase cost competitiveness and also improve the skills of the workforce and management in each country.

"Earlier we designed our products in Japan and sent our models to our production bases in other countries. From now on, we will let the local bases design and produce 100 per cent of the local content in those countries," he said.

He explained that the firm's Japan-based production base had always been at the centre and the company had never set up a network between production bases.

However, the company is trying to strengthen the foundation for sales and production in each regional base.

It would then establish the global IMV system and promote cross-functional activity.

Toyota has two plants in Thailand - one can produce 250,000 IMV units and the other has a production capacity for 200,000 passenger cars.

To support its plan to produce the entire local content in Thailand, the company has set up a new plant with a production capacity of 100,000 IMV units, which is expected to start operations next year.

Toyota Motor Thailand website reports total sales volume of 23,933 units last month, up from 21,621 units in the same period last year. It also represented the biggest share with 46.6 per cent in the local market.

Isuzu followed Toyota with sales of 12,922 units in October, sharing 25.1 per cent of the total market, and Honda was third, accounting for 8 per cent with sales volume of 4,112 units in October.

Meanwhile, Yoshio Tomisaka, chairman of the Japan Management Association (JMA), said in the JMA Group Asean Seminar 2006 at Conrad Bangkok Hotel that Toyota was one of the successful companies in adopting the total productive maintenance (TPM) programme in its business.

He added it was very important for Japanese companies to localise their culture to conform to local people.

He said TPM had been accepted in many high-profile companies in Thailand such as Siam Cement Group, Unilever, Birla Corporation and Toyota Motor Corporation.

"TPM is also globally accepted as it increases industry productivity, builds an efficient operating system, and reduces production costs. The aim of TPM is to bring out and take advantage of the skills of the staff," Tomisaka said.

JMA was established in 1942, accredited to the Ministry of Economy, Trade and Industry in Japan. It has been serving industry by improving efficiency and promoting management innovation throughout Japan and worldwide.

Chalida  

Ekvitthayavechnukul

The Nation