Toyota's Operations - Essay Sample for Everyone

Published: 2022-02-17 22:51:04
Toyota's Operations - Essay Sample for Everyone
Type of paper:  Research paper
Categories: Management Toyota
Pages: 7
Wordcount: 1780 words
15 min read
143 views

The production operations at Toyota Corporation are one of the best systems in the world, especially in matters concerning efficiency and increased productivity. The efficacy of the production systems at the organization can be attributed to the merging of both practice and theory (Black, 2007). Logistics in Toyota entails different operations that include movement of goods and products from the process of procurement to that of transportation and delivery to end-users. The activities existing between the production of parts and the designing of the final product are denoted as production parts logistics. In the production systems of Toyota Company, product parts logistics are based on the just-in-time principle. The principle entails transportation of what is required, at the needed time, and in the desired amount. The study on operations management of Toyota unveils terms that include the Kaizen Lean Manufacturing and just-in-time approaches that are frequently used in the firm to cut down production costs and increase output capacity. Therefore, this paper discusses the management and production operations of the Toyota Corporation.

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Productivity at Toyota

According to Marodin, Saurin, Tortorella, and Denicol (2015), Toyota takes two years to develop a new car model when compared to four to six years in other companies. It is worth noting that the organization can produce different car models using the same assembly line. The production system in Toyota is described by Black (2007) as a machine that has played an essential role in changing the world. The primary objective guiding production in the company is the elimination of wastes, reduction of defects, maximization of flow, and increase of efficiency and productivity. For this to be achieved, the company has a unique system of product development that focuses on cost reduction while ensuring continued improvements hence yielding cost reductions in product development and lead times in manufacturing.

Nonetheless, production factories are highly automated. Some of the technological features employed include paint baths and driverless carts whose role is to deliver parts for assembly purposes. In addition to that, Kotani, Ito, and Ohno (2004) argued that every worker in the organization could shut the assembly line once a defect is found, which differs from other corporations where defects are repaired after the production and manufacturing process is complete. Importantly, Toyota was named the most efficient manufacturing institution in the year 2005 (Lander & Liker, 2007). Lander and Liker (2007) indicated that the corporation takes about 27.9 hours to produce the usual cars or trucks, which is far less the time used in other organizations. As time passes, the company grows in its efficiency with development time lowering every year due to the talents and input of the workers. Thus, it is clear that Toyota is trying hard to cut costs with the rising costs of steel and other materials, which increases competition. The process of cutting down costs has been a culture in the institution since before the recession of the year 2008; Toyota was still cutting its costs by about $3billion a year (Marodin et al., 2015).

Management Operations at Toyota Company

The operations management at Toyota Corporation covers an array of decisions that have a role to play in facilitating effective and efficient operations. With the worldwide state of the automobile companies, Toyota uses different strategies that integrate the market conditions in the regional and local levels. The decisions made at the organization show the various business areas requiring strategic approaches. As Kotani, Ito, and Ohno (2004) argued, Toyota succeeds in accentuating productivity in its operations management. Thus, this section covers an array of decisions made at the institution to maintain effective operations.

Importantly, Toyota uses advanced technologies in the process of designing materials and products. According to Marodin et al. (2015), the firm utilizes R&D investments that ensure sophisticated qualities in its products. Also, the company assimilates dealership personnel needs when creating aftersales services. The use of high quality and advanced technologies play a substantial role in ensuring that the goods offered are of high quality. In addition to that, the Toyota Production System (TPS) is used in maintaining the quality of the materials and products. As Marodin et al. (2015) asserted, quality is an essential factor in the organization. The production system works towards enhancing and maintaining quality, which gives the institution a competitive advantage. Similarly, Thun, Druke, and Grubner (2010) indicated that the corporation addresses the issue of excellence through continuous improvements and innovations that are covered in the institution's principles of management.

Toyota Company uses lean manufacturing processes, which are covered under TPS to maintain process and capacity design. Lean manufacturing is a technique used in the institution to minimize waste. In some industries, mass production is considered cost-effective. However, this principle does not work for all production institutions. Toyota emphasizes on waste minimization, which, in turn, maximizes the processing capacity and efficiency application. The process and capacity design at the organization supports cost-effectiveness and business efficiency through waste reduction that eventually contributes to increased profits.

The production system in the company is unique when compared to other corporations in the motor industry. The individual factors in the institution's production system are investments in re-engineering, emphasis on quality, use of advanced technologies, and the production of hybrid vehicles. Other unique factors are a concern for the staff and related welfare costs. Toyota builds of a motivated workforce by adopting a strategy of maintaining employee satisfaction (Thun, Druke, & Grubner, 2010). Most of these production facets are implausible in business strategies aimed at success. Notably, Toyota recognizes the fact that a system of production could affect the costs incurred during the production process in a way that the final prices of products offered to consumers are incredibly high. In such a situation, the sales volume would be adversely affected, which affects the profitability of an institution. For this reason, Toyota has invested mainly in production systems for cost reduction, which include lean manufacturing that has been described earlier, just-in-time strategy, and the push and pull system that will be discussed in the later section.

Differentiation Strategy at Toyota

According to Marodin et al. (2015), a differentiation strategy helps in the building of strong brand loyalty of a product. It mainly focuses on maintaining brand reliability that the company can sustain while also focusing on attracting new clients (Marodin et al., 2015). One of the differentiation techniques employed at the company is the investment in technology and innovation. It is worth noting that Toyota has designed its production places to ensure that they are flexible to accommodate a variety of old and new designs. Primarily, this implies that the production systems in the institution can easily switch from one model to another with minimal time and without affecting the quality of the innovations.

Consequently, Toyota's management says that the production line is flexible to handle everything ranging from low production volume to mass production. With this in mind, it is clear that the extent of innovation adopted at the corporation permits it to use the right resources to ensure that the commodities produced fit with exactness and at minimal prices. According to New (2007), people working in the production lines are allowed to utilize their creativity in the best possible way. A worker in the production line can halt the entire process of production until a particular issue is resolved, as mentioned earlier. Problem-solving involves team activities.

Kanban System in Toyota Company

Toyota has adopted the Kanban system, which is a tool aimed at facilitating the accomplishment of the just-in-time strategy that will be discussed in the next section. The Kanban system is also known as a pull system. Mainly, it aids in controlling the flow of work by replacing materials and products that are consumed. The pull system means that the factors triggering action in Toyota are the demand for the products or materials. Netland (2013) provided an example of a vending machine to describe a pull system by indicating that products in the device tend to be replenished after the stocks run out. Thus, this means that when there is no demand, Toyota does not produce or manufacture the products.

Importantly, the Kanban system embraces a system of scheduling that facilitates decision-making on what needs to be produced. It also determines the time in which a product will be created and the processes involved in design execution. During the production process, a worker at the company is charged with the mandate of decision-making. The importance of this system is to ensure sustained and regular flow of materials in the entire process of manufacturing. The goal of the company is achieved using printed cards that carry information such as quality, parts description, names, and production instructions related to transportation as well as any other visual quality control elements, among additional crucial details.

Just-In-Time Strategy

The automotive industry requires a large amount of capital, particularly during the production and manufacturing processes. With this in mind, most automakers opt for cost-effective business techniques that would facilitate cost minimization. The just-in-time method is one of the strategies employed at Toyota. According to Amasaka (2017), Toyota adopted the just-in-time approach as one of its philosophies in the 1970s. The main focus of just-in-time production is eliminating wastes and reduction of the levels of inventory. The central feature of the operation strategy is based on Kanban's system described in the section above. The policy helps to ensure that production is done in small lots hence preventing mass productions. The competitive advantage of the corporation, through the just-in-time model, is driven by the need to satisfy customers.

Customer satisfaction is achieved by fulfilling the demands of the consumers and promptly linking the activities of production to the real need existing in the marketplace (Thun, Druke, & Grubner, 2010). Notably, just-in-time is dependent on the various processes that are finely polished to ensure that the categorization of assembly utilizes the materials required while also maintaining high quality. Mainly, this helps in eliminating any forms of losses often associated with mass production techniques. One of the main challenges facing the company is meeting the production mix of the different models of automobiles. It is essential to understand that Toyota Corporation needs to select the required product mix that will satisfy the demand of the consumers to ensure that the production of the demanded products is achieved cost-effectively. In the year 2012, Toyota stated that just-in-time method had proved useful over the years since it offered a continuous and optimized workflow allowing for planning and measuring of work-cycle times and facilitating the on-demand movement of goods (Netland, 2013). Also, the organization indicated that the method reduces the cost of time, materials, and capacity wasted when manufacturing products that consume...

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