The paper “ The Building Blocks for Toyota - a Base of Management Decisions on a Long-Term Philosophy” is a perfect example of a case study on management. Toyota, a Japan-based automobile manufacturer, has presently the fastest process to develop products in the world. As per reports, Toyota takes around 12 months and sometimes even lesser than that to design a new car, while most automobile manufacturers require more than two to three years. Further, despite such a tough deadline, the company has been able to maintain exceptional quality standards as compared to its competitors in the market. Toyota has been able to create operational excellence by developing various strategies through the use of methodologies and tools to improve quality.
Further, it has also developed a deep-seated business philosophy that helps in understanding the employees and motivating them to work towards achieving business goals and visions. The success of Toyota’ s supply chain management is based on the company’ s ability to create teams and leaders, develop a supportive culture, form strategies, build lasting relationships with suppliers and to maintain an organization based on sustained learning (Harrison and New 2002). This paper therefore would focus on how Toyota through its innovative strategies has been able to measure and improve supply chain management.
The paper would further discuss how the company has created operationally one of the best-managed firms globally and what other companies may learn from Toyota to improve their supply chain management. The Toyota Production SystemThe Toyota Production System was being developed by Toyota post the Second World War. During that era, GM and Ford used strategies such as economies of scale, large equipment, mass production to create as many machine parts as possible in a cheaper manner.
Toyota on the other hand had a very small market and was required to create a variety of cars through the same assembly line for satisfying its clients (Callioni and Billington 2001). Toyota also shortened the lead times and kept the production lines flexible, which led to better quality, productivity, customer responsiveness, and optimal utilization of space and equipment.
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