SECONDARY SECTOR - Toyota, Derby

Question 1

Facts about the factory

Answer 1

• Opened 1992.
• Employs over 2,500 people and has over 200 suppliers.

Question 2

What factors influenced the choice of site for the Toyota factory?

Answer 2

• Site is 58 acres.
  
  • Allows factory to expand.
• Greenfield Site
  
  • Land not previously occupied by buildings.
  • Therefore, quicker and cheaper to buld on.
• Universities
  
  • Burnaston is near Derby, Leicester and Nottingham universities.
  • Provides stream of skilled workers.
• Historical Reasons and Market
  
  • Car industry is traditional in the UK, especially Derby.
  • Rolls Royce and Bombardier factories.
  • UK population 65 million, EU population is 500 million.
• Recreation
  
  • Derby football Club
  • David Lloyd Sports Centres
  • Shopping centres e.g. Westfield

Question 3

What are the benefits to local people?

Answer 3

• Employs over 2,500 people.
  
  • More consumers improves local business.
  • Local services and infrastructure develop more - e.g. A50 completed.
  • Attracts people - more tax to services.
• Has over 200 suppliers. Linked to employment indirectly in other areas.
• Environmentally friendly policies minimise local pollution. 99.9% of its European packaging is reused - achieved 0 landfill in 2002, and 0 incineration in 2008.
• Donated £4 million to charity locally and abroad.

Question 4

What are the problems it brings to local people?

Answer 4

• Built on a Greenfield site.
  
  • May have brought conflict to locals.
  • Destroyed habitats.
• Noise pollution.
• Attracts migrants and caused competition and social tensions.
• Only 50% of the suppliers come from the UK. May not have actually attracted a lot of FDI for Burnaston.

Question 5

What are the Inputs?

Answer 5

• 580 acres.
• £1.15 billion in capital investment.
• 2,500 workers.
• Over 200 suppliers, 50% from the UK and 50% from Europe.
• Members of Toyota make suggestions about improvements = Kaisen.

Question 6

What are the processes of the factory?

Answer 6

• Activities:
  
  • Welding
  • Painting
  • Plastic moulding
  • Assembly line
• Methods:
  
  • Ford’s Moving Assembly Line
  • TPS = Toyota Production System (unique to Toyota), a.k.a. Just in Time (JIT) = emphasis on speed of production and no waste.
  • Standardisation - TPS is introduced across all factories
  • Kaizen = continual improvement. Input from workers.

Question 7

What are the outputs?

Answer 7

• 15% sold in UK, 70% sold in Europe, 15% sold worldwide.
• Totota Avensis (68,400 cars) and Toyota Auris (68,700 cars) (2010)
• Waste scrap metal is re-used
• Toyota gets profit