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A
PROJECT REPORT
ON
“Study of R&D activity of Toyota”
IN PARTIAL FULLFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
POST GRADUATION DIPLOMA IN MANAGEMENT
Approved by AICTE
SUBMITTED TO
Mr. MANOJ SAXENA
SUBMITTED BY
SHREY SAXENA
ENROLMENT NO. 1413
PGDM 5TH TRIMESTER
INTERNATIONAL INSTITUTE FOR SPECIAL EDUCATION,
LUCKNOW

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ACKNOWLEDGEMENT
I would like to express my profound gratitude to all those who have been
instrumental in the preparation of this report which has been prepared in partial
fulfillment of Project report in the 5th trimester of PGDM programme.
I wish to thank Management and Faculty members of IISE for their support and
vision.
Finally we would like to thank our Parents, Family, Friends and God almighty for
their unending inspiration and encouragement.
PLACE: Lucknow
DATE: Shrey Saxena

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DECLARATION
I Shrey Saxena, hereby declare that the report “Study of R&D activity of Toyota”
is the result of our own work and our indebtness to other work publications,
references, if any, have been duly acknowledged.

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CONTENT
SR No. Topic Page No.
1. Definition of research and development 5
2. Corporate profile 6
3. Business overview 7
4. Corporate philosophy 8
5. Vision 2020 12
6. Corporate governance 12
7. Research and development 14
8. bibliography 17

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DEFINITION OF 'RESEARCH AND
DEVELOPMENT - R&D'
Investigative activities that a business chooses to conduct with the intention of making a
discovery that can either lead to the development of new products or procedures, or to
improvement of existing products or procedures. Research and development is one of the means
by which business can experience future growth by developing new products or processes to
improve and expand their operations.
Research and development (R&D), also known in Europe as research and technical (or
technological) development (RTD), is a general term for an activities related to the enterprise
of corporate or governmental innovation. The activities that are classified as R&D differ from
company to company, but there are two primary models, with an R&D department being either
staffed by engineers and tasked with directly developing new products, or staffed with industrial
scientists and tasked with applied research in scientific or technological fields which may
facilitate future product development. In either case, R&D differs from the vast majority of
corporate activities in that it is not often intended to yield immediate profit, and generally carries
greater risk and an uncertain return on investment.

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Business Overview
Toyota Industries Corporation was founded in 1926 by Sakichi Toyoda to manufacture and sell
the automatic looms which he had invented and perfected. Since that time Toyota Industries has
promoted diversification and expanded the scope of its business domains to include textile
machinery, automobiles (vehicles, engines, car air-conditioning compressors, etc.), and materials
handling equipment, electronics, and logistics solutions. With production bases in North
America, Europe, and Asia (China and India), as well as a worldwide sales network, centered
around our Materials Handling Equipment and Textile Machinery Segments, the operations of
the Toyota Industries Group span the globe. In November 2006, Toyota Industries celebrated its
80th anniversary. We remain committed to the further development of our businesses and the
unwavering pursuit of sustained innovation and creativity.
Automobile
Toyota Industries develops and manufactures automobiles and automobile-related products, such
as vehicles, engines, car air-conditioning compressors, car electronics components and devices,
and stamping dies. In the vehicle and engine businesses we have achieved a top-class level of
quality and productivity within the Toyota Group and are contributing to Toyota Motor
Corporation's car production. The car air-conditioning compressor business uses its unsurpassed
technological development capabilities to develop and manufacture products of superior quality
that have won extensive acclaim from Toyota Motor Corporation and other major automakers
from around the world. In addition, we are developing and producing car electronics
components and devices such as DC-DC converters for hybrid vehicles and are also
manufacturing stamping dies mainly for automobiles. The automobile business has adopted the
themes of "safety" and "the environment" and is promoting manufacturing that fully supports the
customer's use and enjoyment of their vehicles.

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Corporate Philosophy
Toyoda Precepts (Corporate Creed)
 Always be faithful to your duties, thereby contributing to the Company and to the overall
good.
 Always be studious and creative, striving to stay ahead of the times.
 Always be practical and avoid frivolousness.
 Always strive to build a homelike atmosphere at work that is warm and friendly.
 Always have respect for God and remember to be grateful at all times.
Basic Philosophy (Toyota Industries' Corporate Philosophy)
Respect for the Law
Toyota Industries is determined to comply with the letter and spirit of the law, in and
outside of Japan, and to be fair and transparent in all its dealings.
Respect for Others
Toyota Industries is respectful of the people, culture, and tradition of each region and
country in which it operates. It also works to promote economic growth and prosperity in
those countries.
Respect for the Natural Environment
Through its corporate activities, Toyota Industries works to contribute to regional living
conditions and social prosperity and also strives to offer products and services that are
clean, safe, and of high quality.
Respect for Customers
Toyota Industries conducts intensive product research and forward-looking development
activities to create new value for its customers.
Respect for Employees
Toyota Industries nurtures the inventiveness and other abilities of its employees. It seeks
to create a climate of cooperation, so that employees and the Company can realize their
full potential.

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Five Values (We have Five Values that form an action guide for our
employees to enforce our basic philosophy)
The “Five Values” were assembled as an “action guide” for the employees of Toyota Industries.
Each and every one of our employees is to think for themselves and determine, “What concrete
action should we be taking and how should we change?” They will then share these thoughts
with each other, and by also sharing a similar set of values they will aim to promote the future
development of Toyota Industries.
Toyota Industries Group CSR Policy
We, Toyota Industries Corporation and our subsidiaries, contribute to the harmonious and
sustainable development of society and the Earth through all business activities that we carry out
in each country and region based on our Basic Philosophy. We comply with local, national, and
international laws and regulations as well as the spirit thereof, and we conduct our business
operations with honesty and integrity In order to contribute to sustainable development, we
believe that management interacting with its stakeholders is of considerable importance, and we
will endeavor to build and maintain sound relationships with our stakeholders through open and
fair communication. We expect our business partners to support this initiative and act in
accordance with it.
Customers
• Based on our philosophy of “Customer First,” we develop and provide innovative, safe, and
high-quality products and services that meet a wide variety of customers' demands to enrich
the lives of people around the world.

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• We will endeavor to protect the personal information of customers and everyone else with
whom we are engaged in business, in accordance with the letter and spirit of each country's
privacy laws.
Employees
• We respect our employees and encourage personal growth for our employees under our
belief that the success of our business is led by nurturing each individual's character and
abilities, and realization of the Group's full potential.
• We support equal employment opportunities and diversity for our employees and strive to
enhance our team strength. We do not discriminate against employees.
• We strive to provide fair working conditions and to maintain a safe and healthy working
environment for all our employees.
• We respect and honor the human rights of people involved in our business and, in particular,
do not use or tolerate any form of forced or child labor.
• Through communication and dialogue with our employees, we build and share the value of
“Mutual Trust and Self-responsibility” and work together for the success of our employees
and the company.
• Management of each company takes leadership in fostering a corporate culture and
implementing policies that promote ethical behavior.
Business Partners
• We respect our suppliers, dealers, and other business partners, and work with them through
long-term relationships to realize mutual growth based on mutual trust.
• Whenever we seek a new business partner, we are open to any and all candidates, regardless of
nationality or size, and evaluate them based on their overall strengths.
• We maintain fair and free competition in accordance with the letter and spirit of each country's
competition laws.
Shareholders
• We strive to enhance corporate value while achieving stable and long-term growth for the
benefit of our shareholders.

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• We provide our shareholders and investors with timely and fair disclosure on our operating
results and financial condition.
Global Society/Local Communities
[Environment]
• We aim for growth that is in harmony with the environment by seeking to minimize the
environmental impact of our business operations, such as by working to reduce the effect of
our vehicles and operations on climate change and biodiversity. We strive to develop, establish,
and promote technologies enabling the environment and economy to coexist harmoniously, and
to build close and cooperative relationships with a wide spectrum of individuals and
organizations involved in environmental preservation.
[Community]
• We operate our business so as to earn the trust of respective communities by honoring the
cultures, customs, histories, and laws of each country.
• We constantly search for safer, cleaner, and superior technologies that meet the evolving needs
of society.
• We do not tolerate bribery of or by any business partner, government agency, or public
authority, and maintain honest and fair relationships with government agencies and public
authorities.
[Social Contribution]
• Wherever we do business, we actively promote and engage, both individually and with
partners, in social contribution activities that help strengthen communities and contribute to the
enrichment of society.

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Vision 2020
In order to chart its own bold path through today's relentlessly changing environment, in fall
2011 Toyota Industries announced Vision 2020, which acts as a map and compass for charting a
course to the next stage of growth.
Corporate Governance
Basic Perspective of Corporate Governance
Toyota Industries strives to enhance the long-term stability of its corporate value and maintain
society's trust by earnestly fulfilling its CSR commitments in accordance with its Basic
Philosophy. To that end, Toyota Industries strives to enhance its corporate governance based on
the belief that maintaining and improving management efficiency and the fairness and
transparency of its corporate activities is of utmost importance.

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Implementation Structure
Toyota Industries convenes monthly meetings of the Board of Directors to resolve important
management matters and monitor the execution of duties by directors. We also appoint outside
directors who are knowledgeable about our business operations. They attend meetings of the
Board of Directors and give opinions and ask questions as deemed necessary. Through this
supervisory function of outside directors, we ensure the legality and validity of the Board's
decisions as well as directors' execution of duties from an objective perspective. The
Management Committee, which is composed of directors above the executive vice president
level as well as relevant directors, managing officers and audit & supervisory board members,
deliberates on a variety of issues concerning important management matters such as our
corporate vision, management policies, medium-term business strategies and major investments.
Toyota Industries has a divisional organization system, with significant authority delegated to
each business division. For especially crucial matters, however, we have established the Business
Operation Committee to enable the president to meet with the heads of each business division
regularly to monitor and follow the status of their business execution. At meetings of the
Management Council, directors, managing officers and audit & supervisory board members
convene to report and confirm the monthly status of business operations and share overall
deliberations at Board of Directors meetings and other management-related information. In
addition, issues pertaining to human resources, quality, production, procurement and
technologies are discussed at the corresponding functional meetings. We have also put in place
committees to deliberate on more specific matters, such as CSR, the environment and export
transaction controls. These functional meetings and committees discuss important matters and
action themes in respective areas.
Audit & Supervisory Board System
Toyota Industries has adopted an audit & supervisory board. system. Two full-time audit &
supervisory board members and three outside audit & supervisory board members attend
meetings of the Board of Directors to monitor the execution of duties by directors. At the same
time, meetings of the Audit & Supervisory Board are held once a month to discuss and make
decisions on important matters related to auditing. The full-time audit & supervisory board
members carry out auditing by attending primary meetings and receiving reports directly from
directors. Additionally, we have assigned dedicated personnel, while audit & supervisory board
members monitor the legality and efficiency of management through collaboration with
independent auditors and the Audit Department.

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Research and Development (R&D)
In keeping with its founding spirit of “Be ahead of the times through endless creativity,
inquisitiveness, and pursuit of improvement”, Toyota Industries actively carries out research and
development activities. Our R&D activities can be broadly classified into two areas, (1) product
development and improvements performed independently within each business division, and (2)
R&D undertaken mainly by the “Research & Development Center” separate from the activities
of our business divisions and with a view toward company-wide management strategy.
1. R&D Activities Carried Out by the Business Divisions
In each of our internal divisions various initiatives, centered on the technical departments, are
being taken to promote the advanced development of future products that will lead the world in
functionality, quality, and low cost. The results of these R&D activities are unveiled at an
internal technology exhibition in each division and also at a company-wide technology
exhibition held every year where the engineers from all divisions gather. In this way we strive to
give our engineers access to a wide range of exchange opportunities.
Car air-conditioning compressor characteristic evaluation test (Installing it in the vehicle)
Testing the noise level of a lift truck

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2. Research & Development Center Activities
The “Research & Development Center”, which is located in Kyowa, Obu City, Aichi Pref.,
undertakes the advanced development of fundamental technologies which will be the keys to the
future products of each division, and advanced research for the development of new products for
new businesses as well as development of materials and other technologies that will come to
serve as the common foundation for all divisions. For example, there are a multitude of research
and development results and prototypes such as a wide variety of functional parts for use in fuel
cells, non-contact power supply technologies for use in clean logistics, super smooth coatings for
inside car air-conditioning compressors, and three dimensional fabric reinforced composite
technologies. From this point forward research and development will continue into new
technology themes for every field including automobiles, materials handling equipment, and
electronics.
Testing frictional wear of a new material
Micro analysis of the surface

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In order to make research and development more efficient and introduce leading edge
technologies, we conduct collaborative research with Toyota Central Research & Development
Laboratories, Inc., an R&D facility of the Toyota Group involved in basic research, as well as
with universities, other outside R&D institutions, and manufacturers. Top level research
activities are carried out with the support of the newest simulation software and analytical
instruments. In this environment our researchers and engineers are developed through wide-
ranging participation in scientific societies in all the major technological fields, such as
machinery, electronics, physics, and materials, etc. This allows them to absorb the latest
technologies and we create opportunities for them to deepen their practical business experience
in product development through exchanges with the other technical divisions within Toyota
Industries and cooperation with other members of the Toyota Group.

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Bibliography
Website:
http://www.toyota-industries.com
http://www.investopedia.com
http://www.google.com
http://www.yahoo.com