The paper 'Toyota Motors Operations Management" is a good example of a management case study. Japanese production management had been considered to have a major effect in the discipline of the operations management from the 1980s (Schonberger 2007, p. 403). The concept from this form of production management influenced companies even beyond Japan. Toyota Motors is one of the companies which rode on the wave to build a good reputation world over. Monden (2012, p. 44) opined that over decades, Toyota Motors has been considered as the most effectively managed and successful motor vehicle manufacturer across the globe.
Liker and Hoseus (2008, p. 78x) postulated that the success has been attributed to its operations management approach particularly Toyota Production System. However, the company’ s recent endeavor to increase its productivity and be top-selling carmaker global could have resulted in unfavorable changes in its operations management and supply chain management. As a result, the company has suffered some operational issues including massive recall and a bad reputation. In this report, the paper will discuss and critically analyze current and recommended operational issues for Toyota’ s operations plan. 2.0 Overview of Operations management Operations management also called product management is defined as the practice which designs and controls production to ensure the different resources applied in the production are efficiently transformed into the value-added product or services (Kumar & Suresh 2008, p.
1). It simply means operations management entails changing of the inputs into the quality product or service. However, the few resources should be efficiently used to meet the customer needs and to also enable the company to make profits. Kumar and Suresh (2008, p. 2) posited that even though it borrowed ideas from ancient management and economic theorists such as Frederick Taylor and Adam Smith, Japan is one of the countries which perfected the use of operations management in its industries.
Toyota engineers took advantage of operations management in Japan to improve its production of motor vehicles. Schonberger (2007, p. 406) pointed out that Toyota developed a philosophy called Just-In-Time to help it produce only what is needed. The overall goals of this operations management concept were to decrease the flow time in a product, increase response to the customers and suppliers, reduce wastage in production and increase efficiency. Kumar and Suresh (2008, p. 103) asserted that JIT was used to identify seven wastes in production including waste of the overproduction, waste of waiting, waste of the transportation, waste of the processing and waste of the motion and waste of manufacturing defective products.
Monden (2012, p. 57) contended that Toyota Motors continued with innovation and came up with an operational management philosophy called the Toyota Production System, which reduces overburden and inconsistency and eliminates wastes. This operations management was also designed to organize production and the logistic among the suppliers, the company and customers.
The company improved Toyota Production System and is now referred to as lean production or manufacturing (Monden 2012, p. 63). The current philosophy is more of the elimination of waste and concentrates on the provision of customer value. Total customer value is achieved by improving quality, elimination of wastes, reduction of the time of production and reduction of the total costs. The practices have steered Toyota Motors to greater heights over the years. In fact, in 2012, Toyota Motors was the largest carmaker in terms of production with 200 million vehicles.
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