Operations Management of Toyota - Case Study Example

Operations management report on Toyota Contents Operations management report on Toyota 1 Contents 2 Chapter 1; 3 Introduction 3 The Business 3 The scope 4 The chosen activity 4 Operations Management 4 Toyota Production System (TPS) 5 Chapter 2 – The existing process 7 The transformation process model 7 Chapter 3 – Analysis 8 Just in Time Inventory Management 8 Lean Manufacturing 9 Supply Chain Management 11 Chapter 4 – Recommendations and Conclusion 13 Reference list 15 Chapter 1; Introduction The success of Toyota motors limited is because of the unique product system, which focuses on constant enhancement and the use of just in time management system. The company has developed a decentralized layout that motivates workers involvement as well as forming teamwork; Toyota integrates the concept of supply chain management as well as inventory management to develop superior automobile as well as gaining a competitive edge in the volatile business environment (Mahadevan, 2010). The company’s success is focused on attaining superior level of productivity. The firm depicts a unique methodology to problem solving and it constantly trains its workers. The Business The Toyota production system is based on the lean manufacturing strategy, which seek to reduce waste and focus on coat minimization. The company manufacturing strategy focus on quality management by way of process of constant enhancement. The report focus on how the company creates its manufacturing system and the duty of the operation management methodology to improve its effectiveness. Operation management is an important part of the business. it refer t the design, operation and control of the transformation process that depict the conversion of resource like labor and raw material to output like finished goods and service/ the importance of operation management has in the recent years increased very fast due to foreign competition, short services and product life cycles and improved education as well as quality mindful client (Dilworth, 2000). Toyota company is famous of its efficient operations management that aids in ensuring that the inventory are kept to optimal level as well as ensure that relevant contrast involving the supply and demand of the product is met that satisfy the client’s needs. The report wills discus the operation management for Toyota Company along with identification of main strength and weakness of the operation function in Toyota Company. The scope The report will focus on examining the production process as well as policy for Toyota Company as well as how the company attains its competitive edge. The; lean manufacturing policy pioneered by the company has turn to be a benchmark for every production firms globally. The lean manufacturing policy comprise of the connection like clients relations, product designs, supplier network as well as operations (Russell, 2000). The lean manufacturing process have made Toyota attains its low cost of production and per mitted the company to produce superior cars at least cost. The reports of us on how the operations management methodologies like the supply chain management as well as the inventory Management have linked to effectiveness as well as profitability for the Toyota Company The chosen activity Operations Management The research on operations management focuses on the production of superior product as well as service. The objective of operations management is to develop effective business operations. Operations management seeks to make sure that the effective management of resources together with the supply of goods and services. Operations management seeks to improve manufacturing performance and the research has proposed many methodologies as well as conceptual framework to attain this objectives. These recommended techniques are the just in time, total quality management or leaning manufacturing. These techniques command the flat organization layout with function integration. The competitive forces for enhanced product standards lead to many operations patterns emerging. The most substantial ones are the just in time, TQM and the supply chain management. Just in time, technique seeks to get rid of the waste and deduce set up times. It as well controls the flow of resources as well as focus on the efficient resource usage. the TQM focus on creating a corporate culture that is client oriented and empower workers and seek to constant enhance it. The supply chain integrate purchasers and suppliers verdict making to enhance the flow of resources in the supply chain. Toyota Production System (TPS) The company’s production system leads to lean production improvement that focus on getting rid of waste from value stream. The production system is very standardized. The production system have buffer that is managed through many pull signals. The lean production is effective and greatly enhances quality that has given the Toyota Company an edge in the worldwide automobile market. The company’s production system must be considered as a philosophy that is explained by asset of general rationale of planning and c controlling an enterprise. The Toyota’s success as an automobile company is based on the company’s experience in developing a unique production system. The company production system is based on the principle of constant enhancement also considered as kaizen. The company depicts a decentralized laborforce, which is well trained and takes part in the verdict making. The production process of total entails the triumphant Japanese production and work practice. The company introduced the latest system of workers relations with singe trade union developed supple work to act in response to the demand based on the production. The company’s manufacturing system is characterized by constant flow of production that permits the firm to be supple to adapt to the demand situations. The just in time ensures that the resources needed for the manufacturing are bought at the right time which in turn reduces the excess inventories that lead to day to day as well as monthly changes in demand and quantities. The quality assurance process in the just in time ensures that the every process supply the good unit to the next process. The just in time system entails human resources in the cost and the production system. Toyota has streamlined it production process through the implementation of TQM process to reduce the cost and improves on the quality. The company’s production system is very specialized and supply that is in alignment with the market. In this regards, the kanban system plays an import role as the system provides guidelines as part move along the production line. The system works with the production line to provide the needed resources for the production (Jones, 2012). The kanban synchronizes the production quantities at every production stage. The system provides the correct information of the needed resources for the production process. This in turns makes the production at Toyota company more effectives. The kanban system uses the information technology for planning as well as controlling which comprise of the enterprise resource planning. The latest computers aided production management system comprises of the inventory controls. CRP, MRO shop floor, as well as vendor management system. The company’s production system is connected externally and to the whole production system. The key production system practice is centered on detection, assessment, as well as elimination source of the whole production system. The sequential association amongst the external as well as internal connection entails three kinds of associations. The first is the upward association involving the external suppliers within the company. The internal association involves the com analysis actors that own consecutive stages as either internal suppliers or internal clients. The downward association involves the internal suppliers that own the last process phases and the company’s external clients. Chapter 2 – The existing process The transformation process model Figure one Structural links internal and external to the business The problem solving structure for Toyota frequently appraises the performance of the Toyota production system by detecting any variation on production process. The variations appraisal comprises of the part of the product, staff, process, as well as resources. The system variance might be as result of product variances, low standard. Flawed design procedures. Figure two Toyota’s problem solving structure Workers many lead to variances in the system and performance as result of the inadequacy of the correct training or encouragements. The company has implemented a decentralized problem solving methodologies that employer the work to make verdict, the rationale of kaizen is make possible with standardization in the firm. Toyota has standard seed technical aptitudes to makes sure that supple personnel in the firm exist. Chapter 3 – Analysis Just in Time Inventory Management The japans automobile firm has been triumphant in enhancing their productivity and effectiveness by centering on the constant enhancement. The just in time has developed from constant enhancement archetype (Russell, 2000). The just in time create supple environment in which entire business is accountable for getting rid of waste. The just in time manufacturer seek to buy materials to meet the real demand. The JIT policy creates a client-centered process and gets rid of inventories through inter- reliance association in the operations. To develop the client-oriented plans, the marketing actions are as well incorporated in the system. The just in time connects the suppliers to the shop floor by pulling the needed resources from the suppliers. At Toyota company, the just in time control supply as well as needed quantity for the operations. The kanban system creates the pull form getting the part in the operations; the clients demand creates the initial pull of the system. Toyota Company is the pioneer of just in time production system. To enhance the quality controls in the company, Toyota implemented the quality controls. The just in time and the regards for the human resource are the main doctrine of the Toyota production system. To execute the just in time, many practice like Kanban, short set tip time, multi skilled personnel are needed. The concern for human system focus on the physical changes of the workers that must add value to the product. The workers at Toyota are empowered and are accountable for the quality matters and supervising the assembly line. The just in time is important aspect of Toyota production system. Just in time permits low inventory and guarantees improved and fast response to engineering transformation. Lean Manufacturing The lean manufacturing methodologies are as well as term as the post fordims system of work that is very effective, human, as well as democratic. The main principle of lean production is the nation of kaizen that is constant enhancements in the production process (Jones, 2012). The lean production philosophy seeks to combine effectively with the standard of work life. The concept of kaizen seeks to get rid of activities that do not add value, referred to as waste. This looked at the excessive set up time, size, inventory, and work in progress. The kaizen process as well gets rid of errors in the production process and locates the source of problem. This comprise of work involvement that might supervise as well as detect any variance in process or product (Mahadevan, 2010). The workers as well c contributes to the business as well as enhancements of production. The productivity enhancements are attained through incremental innovations. The involvement nature if lean production is diverse from the Taylorist and Fordist production methodologies. Kaizen focus on quality assurance, this comprise of teamwork as well as collective accountability for quality assurance. The Toyota administrations comprise of concept of zero defect, which entails quality circles to focus on all quality awareness as well as centers on the fast problem solving. The team leaders in the business motivates their members to continuously centre is ion quality enhancements in the production process. Each worker depicts trained skills to develop the aptitudes required for quality production. The Toyota production system is action-oriented methodologies that favor problem-solving methodologies; the workers do their job as project team. Toyota Company launched a flat organization layout that permitted open communication and facilities experiment as well as learning. The kaizen empower workers and seek latest approach to doing work. The firm focuses on improved product as well as client services to gain a competitive advantage in the car industry. The kaizen work culture is democratic and permits engagement of workers as well as administrations in the production process. This kind of management makes Toyota very productive and consensual verdict making by the business is very productive and permitted it to make sure that there is superior product quality. The notion of lean manufacturing emanates from Toyota Company because of deficiency of the materials and intense local competition in Japan. The lean manufacturing integrates the just in time production system as well as kanban methodology of pull production. Toyota Company launched the concept of respect of workers and teamwork, labor management as well as supply chain management involving the inventory as well s quality control, industrial relation, labor management and quality control. Supply Chain Management The supply chain management is an important factor for improving business efficiency and attaining goals. With the globalization of the market and the growth in outsourcing firms that uses the supply, chain as well s logistics techniques to control their operations. The current market place is distinguished by growth in competition as well as improved technologies. The changes leads to thoughtful transformation for business as well as firms should be in a position of responding to changing clients requirements whilst turning to be lean. With the growth in globalization as well as client orientation business are becoming sensitive to logistics. The supply chain is a system that com pries of materials supplier’s production facility, supply service as well service that are connected through flow of materials and response flow of information’s. Toyota is triumphant worldwide might be because of the firms policy of constantly minimizing cost by waste elimination (Jones, 2012). The company created a pull system and developed the just in time technique that made Toyota company production system more functional and effective. Toyota Company is the [pioneer of value added conceptual through the lean supply chain. This permitted Toyota Company to identify waste in the value chain, which is eliminated. Toyota production system since its inception developed a cluster of first tier supplier who was part of the business. Toyota production system for Toyota is vertical incorporated and main products are bought from first tier supply who bought them from their small suppliers from the second tier supplier (Jones, 2012). The firm develops sub-contracting contract which one supplier for a one time to make sure that the quality, reliability and meeting the supply standard is guaranteed, the contract permitted Toyota to put forth forces on the suppliers and reducing 0n the cost. Toyota created a different competitive advantage on supplier network permitting the firm to add value to its product. The competitive edge roots from the raw materials supply derived from 0.4 of the con statements from the first tier constituent is manufacturers and 0.42 from the least tier constituent’s supplier. Toyota efficiently incorporated its supplier based on the Hoshin Kanri policy. The supply chain management methodology for Toyota chiefly focus on the resources that were of critical significance (Russell, 2000). Toyota creates a keiretsu layout that comprise of the autonomous suppliers who worked closely with the Toyota factors. The firm outsources aspect that was less critical to the capacity of capitalizing the stakeholder’s values. Toyota is in an option of creating such as supply chain since the supplier is autonomous in very competitive market. Toyota creates an assembly plant based on system that is demand-pull and just in time, it had dominant potency associate wit5h the supply. This permitted the firm to innovate as well as creates tailored supply chain. The Toyota Company implemented efficient controls over quality. Cost as well as innovation which permitted the company to capitalize on the client sales? The lean production system at the firm centers on the superior level of quality to the client. Toyota’s lean methodologies depict the strategies and operational practices. Toyota limited operates a contested supply chain and marketplace. For Toyota to be profitable, the company must attain sustain business triumphant success by operating on least margins and complying with the customer needs. The supply chain at Toyota might be explained as entrepreneurial. Chapter 4 – Recommendations and Conclusion The competition in the automobile and the asset shortage prompt Toyota creating a lean assembling framework that was adaptable and exceptionally productive. This assembling framework prompts cost decreases and makes an organization more adaptable. The Just in tome approach in the Toyota generation frameworks enables the organization to be more effective and receptive to the promoting request. Toyota's generation framework is request responsive and client driven which a noteworthy wellspring of upper hand is for the organization. The creation procedure at Toyota likewise accentuates on quality and representative strengthening. The low stock and persistent creation framework has enabled Toyota to deliver fantastic vehicles with least imperfections and brought down expenses. The Kanban framework at the organization is utilized to give finish data to the required crude materials. This framework likewise screens the nature of all items. To actualize lean assembling an organization must make an enabled workforce that has the correct capabilities to guarantee superb creation. The essential point of the TPS is to abbreviate the time taken to change over client orders into vehicle conveyances. To accomplish the arrangements from request to conveyance in a solitary persistent stream alongside shortening the grouping to make the generation procedure more smooth. This has made an abnormal state of efficiency, better quality and a diminishment in wastages. This makes the Toyota vehicles more practical (Dilworth, 2000).The TPS is a standard administration approach in inventory network that viably furnishes the clients with items in a timelier way. The lean assembling logic looks to dispense with waste, wipe out imperfections, and diminish lead times. Toyota has made a culture of effectiveness and critical thinking. This has enabled the organization to advance its item and keep up high caliber through persistent change. The production system is very standardized. The production system have buffer that is managed through many pull signals. The lean production is effective and greatly enhances quality that has given the Toyota Company an edge in the worldwide automobile market. The company’s production system must be considered as a philosophy that is explained by asset of general rationale of planning and c controlling an enterprise. The Toyota’s success as an automobile company is based on the company’s experience in developing a unique production system. The company production system is based on the principle of constant enhancement also considered as kaizen. The company depicts a decentralized labor force, which is well trained and takes part in the verdict making. Reference list Dilworth, J. (2000) Operations Management: Providing Value in Goods and Services, New York: John Wiley Son's. Jones, P. (2012) Operations Management: Theory and Practice, London : Pearson Education. Mahadevan, B. (2010) Operations Management: Theory and Practice, New York: Cengage Learning. Russell, R.S. (2000) Operations management: multimedia version - Volume 1, New York : Cengage Learning. Read More