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Friday, 9 May 2014

History of Toyota. Part 5 (1924-1942): Kiichiro Toyoda Invents the Automatic Loom

Toyoda Boshoku's manufacture of the Type G Automatic Loom
The new automatic loom was named the Type G Automatic Loom. Toyoda Boshoku had originally considered asking Toyoda Loom Company to manufacture the new machine. However, given that cooperation wasn't forthcoming during the manufacture of the prototype, Toyoda Boshoku took it upon itself to manufacture the new loom at its workshop.
Because the existing workshop attached to the Toyoda Boshoku plant was quite small, the company leased the former Aichi Steel plant premises in Nishihioki-cho, Naka-ku, Nagoya from Sakuzo Nozue towards the end of 1924. The plant owner, Nozue, was an acquaintance of Sakichi Toyoda and had been contracted to produce steel parts for looms ever since 1895 when Sakichi first started working on his automatic loom. The Aichi Steel plant had continued to produce parts for Toyoda Loom Company right up until it submitted notification of discontinuance of business in July 1924.

Model G Automatic Loom
After installing new casting equipment at the Hioki-cho workshop, additional imported machinery was also installed to make the premises ready for production. Furthermore, in order to check the dimensional precision of the machine work, limit gauges were also introduced, ensuring interchangeability of replacement parts. After all the preparations had been made, the first Type G Automatic Loom came off the production line in November 1925.
By the end of March 1926, Toyoda Boshoku's Kariya plant had added 240 Type G Automatic Looms, and by the end of September that year a total of 520 new looms were up and running.
Toyoda Boshoku's Hioki-cho workshop continued to produce the Type G Automatic Loom right up until Toyoda Automatic Loom Works new plant began operations in XX, manufacturing a total of 1,023 of the new automatic looms. Its operations were later taken over by Toyoda Automatic Loom Works, which continued to use the same Hioki-cho premises.



Evolution of Toyota. Part 5: Establishment of Toyoda Automatic Loom Works, Ltd.
Mass production of Type G Automatic Loom begins
A large number of orders for the high-performance Type G Automatic Looms were expected, but the Hioki-cho workshop was small with only about 1,650 square meters of area and was not suitable for mass production. Kiichiro Toyoda's father Sakichi had given instructions, and in February 1926 Kiichiro proposed the construction of a new plant in Kariya.
Sakichi's instructions were to build a plant capable of producing 500 units of the Type G Automatic Looms per month, but Kiichiro carefully considered the opinions within the company urging caution and prepared two proposals for monthly production of 500 units and 250 units.1 A list of orders for machine tools prepared by Kiichiro in June 1926 included special-order machine tools and high-performance imported equipment, and the installation of electric furnaces and molding machines suitable for high-quality casting was considered for the casting facilities. The first phase of construction began in July.
In conjunction with the construction of the new plant, Toyoda Automatic Loom Works, Ltd. (TALW) was established as an automatic loom manufacturing company. Establishment of the new company was proposed and approved at a general shareholders meeting of Toyoda Boshoku Corporation on April 26, 1926, and TALW was established in Kariya on November 18. The basic details of the company are as follows:

Front gate of Toyoda Automatic Loom Works, Ltd.
The Kariya Plant was under construction at the time of establishment of TALW, and as a result, the Type G Automatic Looms continued to be produced at Toyoda Boshoku's Hioki-cho Repair Plant. Later, the second phase of construction, primarily an assembly plant, began in March 1927 and was mostly completed by June.2 Full-scale production with monthly capacity of 300 units began from this.
Looking back on the entry into the automatic loom manufacturing business, prototypes were first produced at Toyoda Boshoku's workshop followed by integrated production of the Type G Automatic Loom, a completed model, at the small-scale Hioki-cho Repair Plant. Later, mass production (300 units per month) was achieved at TALW's new loom plant, and production was expanded to 1,000 units per month.
This method of increasing production capacity in stages while acquiring production technologies was later adopted at the time of entry into the automotive industry.

Preparations for entry into the automotive industry
When Kiichiro Toyoda established TALW, he already anticipated entering the automotive industry and had created plans for machine tool and casting facilities. According to a prospectus for the establishment of Toyota Motor Co. Ltd. prepared at the time of the company's foundation, "more advanced machine tools than necessary for the production of looms" were installed, and it was explained that the purpose was "to cultivate workers' skills... in preparation for entry into the automotive industry".1
Specifically, equipment such as high-precision, foreign-manufactured machine tools, special-order frame hole three-axis boring machines, planer four-axis drilling machines, frame cutting machines, and electric furnaces and foreign-manufactured molding machines for casting were installed. The numerous machines that could later be adopted for automobile production also included an assembly line using a chain conveyor belt for production of automatic looms.

Loom assembly line with conveyor system
With respect to casting materials, gray iron melted in a cupola is adequate for the components that make up a loom, and high precision cast iron made using an electric furnace was not needed. Shortly after the start of operations, however, TALW purchased a 1.5-ton electric furnace and began research on electric furnace casting. As a result, when production of high-draft ring spinning frame (discussed below) began, TALW was able to produce strong alloy cast-iron with appropriate distribution of the alloy components using electric arc furnaces and to manufacture cast components with accurate shapes and smooth surfaces.

Patent Transfer Agreement with Platt
The First World War caused tremendous changes in the industries of the United Kingdom, one of the victor countries. Heavy industries including automobiles, aviation, electrical equipment, and chemicals (explosives, dyes, etc.) rapidly advanced, and the main industries prior to the war including coal, textiles, and ship building lost their prominent positions. In the Chinese and Indian markets, which Britain's cotton products had been dominating, cotton industries were developed using domestic capital, and cotton products from Japan also entered the markets, and Britain's spinning industry urgently needed to recover lost ground.
TALW's Type G Automatic Looms were highly acclaimed even outside Japan, and 205 units were installed in weaving plants in India. A. Platt and Company, a British loom manufacturer, decided to purchase patents from TALW to protect its key markets and sent [name] Chadderton, a corporate officer, to Japan.
Chadderton visited the Mitsui & Co. Ltd. Nagoya Branch with [name] Dorman from the Mitsui London office on June 7, 1929 and met with Sakichi and Kiichiro Toyoda.1 Later, Chadderton negotiated with TALW through Mitsui for transfer of the automatic loom patents, and it was decided that Kiichiro would travel overseas to sign the contract in September of that year.

Signing the patent transfer agreement with the British company, A. Platt and Company
Kiichiro also planned to sell the automatic loom patents in the United States during his journey to England and headed to the U.K. via the U.S. However, he entrusted the sale of the patents in the United States to a staff member accompanying him and instead focused on investigating the automotive industry and machine tools used for automobile manufacturing. He arrived at Platt in the United Kingdom on December 21 and signed the automatic loom patent assignment agreement.
The scope of the patent transfer agreement with Platt included the patents relating to the shuttle-change automatic loom invented by Kiichiro. The agreement called for total payment of 100,000 pounds to be made in four installments of 25,000 pounds (approximately 250,000 yen) each year, but ultimately, the unpaid amount of 61,500 pounds was reduced to 45,000 pounds (for total payment of 83,500 pounds) in July of 1934.
Kiichiro, who long dreamed of manufacturing automobiles, observed the changes in industrial structures in Europe and the United States during two overseas trips and was keenly aware of the need for an automotive industry in Japan. According to Akira Haraguchi (TALW managing director) and Tsutomu Furuichi (Mitsui employee), who both accompanied Kiichiro on his trip, Kiichiro was preoccupied with observing Ford's automobile manufacturing plants and researching machine tools.

Downturn in the Cotton Industry and Diversification and Streamlining
Following the outbreak of the First World War in 1914, the cotton industries of warring countries including the United Kingdom lost export capacity. Japan took their place and began exporting cotton products to other Asian countries in about 1916, and Japan's cotton industry entered an unprecedented boom.
When the war ended in 1918, however, the cotton industry suffered an economic backlash and took a turn for the worse. The industry struggled with a long-term slump that lasted until 1931 as a result of the Great Kanto Earthquake in 1923, the financial panic of 1927, and the global depression that started in 1929.
During this period, the cotton industry in Japan curtailed production by 20 percent to 30 percent numerous times, cut wages, and reduced workforces. One result was frequent labor disputes, and a dispute occurred when 13 workers at Toyoda Oshikiri Boshoku were laid off on August 13, 1929.1 The dispute was resolved in the late hours of the night of the 14th, but five workers were arrested.2
The economy slumped even further in 1930. At TALW, labor problems broke out after Kiichiro Toyoda completed the contract with Platt and returned to Japan from England in April.3 TALW's sale of automatic looms fell by more than half from 4,004 units in 1929 to 1,992 units in 1930. Domestic shipments in particular suffered, plunging to one-third, from 2,590 units to 859 units.
Toyoda Boshoku also cut personnel in 1930. According to newspaper articles, the procession of events was as follows.
On July 11, 1930 the company announced that all operations would be shut down for two weeks prior to Japan's obon summer holiday and that after the holiday, employees were to wait until they received notice to return to work.4 According to an article on August 45, operations resumed as planned, but the work force of more than 1,300 men and women was reduced to about 700 employees.
An August 22 article headlined "Strike at Toyota Automatic Loom Works Kariya Plant?" reported that workers had rejected the dismissal of 21 employees and requested intervention by the Plant Section Manager of the Aichi prefectural government.6 On August 27, however, an article entitled "Union Approves Company Proposal for Peaceful Settlement at Late-Night Meeting"7 reported that the workers agreed to a company proposal to increase severance pay.
Sakichi Toyoda, president of Toyota Boshoku, passed away on October 30, 1930, and he had fallen into ill health that summer. For this reason, it is believed that he was not directly involved in the labor disputes, and according to a newspaper article on Tojiro Okamoto8, upon hearing the reports of the personnel reductions, Sakichi said, "if there was no other way even after searching for any possible solution, I would share my food when the plant could not support its workers".9
Kiichiro held the same beliefs as his father, Sakichi. No matter what the circumstances, it was difficult for Kiichiro to approve the termination of employees. Kiichiro believed that it was necessary to restore the employee confidence lost as a result of the layoffs and decided to give a portion of the 25,000 pounds received from Platt for the transfer of the patents to Toyoda-related companies. On February 15, 1931, Kiichiro gave money and goods worth a total of 250,000 yen to 6,000 employees at nine Toyoda-related plants to commemorate the 100th-day memorial service for Sakichi.10

Downturn in the Cotton Industry and Diversification and Streamlining
First, Shonaigawa Dye Works was established in December 1928. The company performed bleaching and was able to ship processed cotton with high added value. Next, Shonaigawa Rayon was established in December 1932 adjacent to Shonaigawa Dye Works and rayon production began.Later, both companies merged with Toyo Rayon Co., Ltd. in June 1941 in accordance with national wartime policies, and today they are the Toray Industries, Inc. Aichi Plant.
Chuo Spinning & Weaving Company was established in March 1929 in Kariya with equal investments from Toyoda Boshoku and Toyo Menka Kaisha, Ltd. The company was established to construct a model plant with state-of-the-art spinning machinery. Initially, the latest spinning systems manufactured by Platt and imported by Mitsui were used, but spinning machinery manufactured by TALW was introduced in 1933 under a plan to increase facilities by 42,000 spindles.
When TALW entered the automotive industry, Chuo Spinning & Weaving transferred 48,358 square meters of its 333,300 square meter plant site to TALW's automobile department for an assembly plant. Operations at the assembly plant began in June 1936.
In February 1942, Chuo Spinning & Weaving, according to national policy, merged with four spinning companies including Toyoda and Toyo Menka-related companies to form Chuo Boseki Co. In conjunction with the merger, the Chuo Spinning & Weaving plant was renamed the Chuo Spinning & Weaving Kariya-kita Plant. In November 1943, the company merged with Toyota Motor Company, became an aircraft plant, and began manufacturing aircraft engines.1
Toyoda Boshoku posted a loss for the fiscal term ended September 1930 (April to September 1930), the first loss in its history, reporting losses of 228,625 yen. Kikui Boshoku reported a loss of 280,507 yen during the same fiscal term. In response to these poor results, both companies cut operations for five days and nights per month starting in June of that year and reduced wages by 10 percent. The two companies merged in May 1931 with the aim of drastically streamlining and increasing the efficiency of their production systems.
In September 1930, Mitsui proposed a merger of TALW, Toyoda Loom Company, and Platt in the United Kingdom, and negotiations took place, but no agreement could be reached and the proposal was withdrawn the following year.

Ring Spinning Frame Development and Automobile Research Starts
When Kiichiro returned from the United States in April 1930, TALW was experiencing poor financial results. In order to achieve a recovery of business through diversification, work on development of the high-draft ring spinning frame1, a prototype of which had been created in 1929, was continued.
At that time, the downturn in the spinning industry was becoming even more serious as a result of the global depression, but high-draft ring spinning frames and simplex fly frames2 were introduced in response to the prohibition of late-night work under the revised Factory Law, which came into effect on July 1, 1929, and cotton thread production processes were shortened. Against this backdrop of active streamlining investment, it was expected that demand for high-draft ring spinning frames would increase.
The eagerly-awaited type RI high-draft ring spinning frames was completed and launched around June 1930.3 The machine frame was modeled on a Platt ring spinning frame, and the draft part (fiber drawing unit) adopted a Rieter-type4 three-thread high-draft system.
The use of high-draft ring spinning frames and simplex fly frames shortened and streamlined cotton thread production processes and led to increases in cotton thread production. Textile departments were asked to increase capacity, and the spread of automatic looms accelerated even further. As a result, TALW's financial results recovered rapidly.

Ring Spinning Frame Development and Automobile Research Starts
In parallel with the development of the high-draft ring spinning frames, Kiichiro also began investigating a plan for the manufacture of automobiles, something he had long hoped to do, as a part of the diversification measures. Kiichiro believed that caution was necessary before entering the automotive industry, which would require massive investment as well as extensive and advanced technological skills.

The Hanomag ultra-compact passenger car
Kiichiro started with research on and prototype development of a compact engine. Risaburo Oshima and Jiro Iwaoka1 divided their time between textile machinery manufacturing operations and investigation, research, and design concerning automobiles and engine prototypes. Jirokichi Chigusa2 from the die plant also became involved in the production of prototypes. To learn about automobiles, they learned how to ride motorcycles and drive a Hanomag3, an ultra-compact passenger car made in Germany.

In early 1933, a three-ton arc electric furnace (800 kVA) manufactured by Daido Electric Works was installed, and research on advanced casting of automobile components began. Also that year, compact engines were purchased, and by sketching them, 10 small engines were produced. At that time, single-bore cast cylinders for a compact engine were made using cast iron produced in the electric furnace. The completed engines were installed on automobiles and test runs were conducted. These research and prototype activities were conducted under the direction of Kiichiro during breaks from textile machinery manufacturing.

Source: TOYOTA MOTOR CORPORATION 

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