Toyota's Business Processes and Performance

This assignment examines the key business processes employed by Toyota to achieve operational excellence. It delves into the company's approach to performance measurement, emphasizing the importance of process control and oversight in addressing production-related issues. Furthermore, the analysis explores Toyota's risk assessment methodologies and strategies for mitigating potential challenges. The assignment also highlights the significance of core competencies in driving competitive advantage within the automotive industry.

Managing Business
Activities to Achieve
Results

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 key functions and processes of Toyota and evaluate the dependencies and
interrelationship:.........................................................................................................................4
1.2 the methodology applied to map processes on the organisation’s goals and objectives:.....5
1.3 Critically examine the output of the process and the purpose of a quality gateway in the
Operations department of Toyota:..............................................................................................5
TASK.2.......................................................................................................................................6
2.1Develop an operational plan to promote collective goals and objectives by applying MBO:
.....................................................................................................................................................6
2.2 Five SMART (Specific, Measurable, Achievable, Realistic and Time-based) objectives:. .6
2.3 Use appropriate systems to attain goals in the most effective manner:................................7
2.4 Types of organizational controls as well as the control process:..........................................7
TASK.3............................................................................................................................................8
3.1 The theory of ‘Total Quality Management (TQM)’ philosophy by stating how this TQM
philosophy:..................................................................................................................................8
3.2 Promotes and implements a Total Quality Management culture in Toyota businesses:.......9
3.3 Recommend improvements which align Toyota’s objectives and goals:.............................9
3.4 Wider implications of proposed changes within Toyota company:....................................10
TASK4...........................................................................................................................................10
4.1 Explain and assess the impacts of risk assessment ............................................................10
4.2 Health and safety regulations applicable in specific work situations are effectively applied:
...................................................................................................................................................10
4.3Review the health and safety policy and procedures:..........................................................10
4.4 practical application of health and safety policies and procedures:....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In this era, most of the companies are working on product innovation in the automobile
sector. The company now focus on improving the working structure of the company. Many of
the companies are working on this direction. Company like Toyota are recognized for the
creativity in the products for getting more consumers attractive on this way. There is the need to
make the new and innovative products s that company can have core competence in the products.
This is also helps to make them salable(Jeston and Nelis, 2014). The automobile sector is one of
the largest manufacturing industry in the world by volume, capital, employees and annual
turnover. Toyota is a brand which recognized as a global one so that company can take the
competitive advantages over the others. Company’s operation in more than 170 countries, which
producing above than 5.5 million vehicle per year as company has broken the traditional
contracted marketing structure.
TASK 1
1.1 key functions and processes of Toyota and evaluate the dependencies and interrelationship:
Toyota company brings the innovation and creativity in the products what they offered to
the prospective consumers. Now the company emerged a trend in the auto-mobile industry to
invent new things in their products so that more and more consumers can attracts to their
products. General motors is the first big company which covers almost 1/3rd auto-mobile industry
stake in the passenger car segment. Toyota emerged itself a new revolution in the passenger
segment and now company add new edition in cars to make them environmental friendly. As
company's main policy is to give a innovative and eco-friendly products that produce least
emits. Company main policy is consumer oriented. The company production system is to people
and consumer directed, this is followed since many years in their routine work(Zairi, 2012).
Toyota production system has bas basically three desired results which are mentioned hereunder:
 Toyota's main aim is to give a consumer vehicle which contains highest safety standard
features, at reasonable price, within a short time frame delivery.
 Company also provide a great atmosphere for their employees, and give them job security
and also keep in minds the employees safety standards at workplace. So that they can feel
associated with the organisation.

 Company's production system also give flexibility to react to the market. Company also
get the profits by limiting the cost via cost limiting techniques and sustainable prosperity.
Company continues to keep going in a direction where it can eradicate the waste, overburden for
providing the consumers a smooth and effective workplace(Achtenhagen, Melin and Naldi,
2013). The base of the Toyota production system are framed on status to ensure a hassle free
method of operation and a regular approach to quality. Toyota quality management team is
required to enhance the standard procedures to get the supreme quality and romve waste. This is
known by the name 'Kazian', and this is used in every departments of the company.
Toyota perform various function like
There are four management functions of Toyota which helps the firm to attain the sustainability.
These are described in details:
Planning: This is the process of fixing the pre-set goals and targets, emerging the
strategies and outlining tasks and scheduling to achieve the pre-set targets of the firm. At IMC
planning covers the few things such as what to introduce a new variant and at what time it needs
to introduce new model. What are the features which are required to be added in the new
variant, and in what manner, these are marketed effectively. However, the Toyota works on two
types of planning. Which are market planning, and the other one is management planning.
Organising: Management organise the connection between people, work and resources
which are used in order to attain the common targets, and this is an important thing for
organisation's administrative unit. Organising covers: customer care division, department of
finances, sales channel, manufacturing facility.
Leading: this is one of the most crucial part IMC''s managerial hierarchy. As this decides
the way in which the entire firm's operations is requires to go. However, there are certain things
which are to be covered while leading the business operations.
Controlling: This is the process of monitoring the business operations in an effective
manner and then assess the actual performance against the firm's targets.
The cited company implement effective supply chain management strategy in their
operations so that the business can get the desired results so that the business can attain the pre-
set targets. However, lean production system, and agile and Kaizan methods is used by the firm
so that the operations can be done effectively.

1.2 The methodology applied to map processes on the organisation’s goals and objectives:
Process is the term which is used to transform the input to output. The company's main
task is to convert inputs effectively into outputs. Inputs covers- labor, machines, equipment, land,
buildings, raw materials. While output is the final products which is made after processing the
inputs. Company's processing system is also used to evaluate how the organisation make final
products which are required to meet the consumers desire. It is not relevant whether a company
is for profit oriented or for the social welfare, entire firms main motto is to increase the quality of
their transformation process. Company map all the processes which is ultimately connected to
the attain the long term goals and objectives of the firm. However, company uses supply chain
management function so that management of the firm map the production process. This is the
best tool to improve the operations in an effective manner. With the help of this SCM approach,
firm can effectively achieve the targets so that the it can attain the pre-set objectives in an
effective manner. The manufacturing process is effectively done by using the SCM approach.
1.3 Critically examine the output of the process and the purpose of a quality gateway in the
Operations department of Toyota:
Company's outputs are prepared after taking the due and reasonable care in the
processing activities. Toyota main aim is to make in their output best feature which is considered
after taking the large overview in the projects from the general public. Company is continuously
striving very hard to get the industry best mileage in their vehicle this will also give the
competitive advantages among the competitors (Closs, Speier and Meacham, 2011).
Quality gateway could be adopted as the firm's point via which entire processes and firm
function will pass through. The main aim of having a gateway in the firm is to trap the
inadequate processes as early as possible. Such would assist the firm to emerge easy flow of
processes and functions. Quality gateway are the most essential for gaining firm's pre-set
objectives.
Now, consumers are very choosy, and majority of consumers selects the vehicle which is safe
from the environmental points of view. Some companies accept the change via enlarging their
small car businesses and expanding into the generation of hybrids electric motor vehicle.
Toyota's working culture is to provide the better outputs that will ultimately providing quality
assurance to them.

TASK.2
2.1Develop an operational plan to promote collective goals and objectives by applying MBO:
Management by objective is framed to enhance the management processes which is ultimately
aimed to achieve the long terms goals and objectives. This is also concentrated on assisting team
members to know the individual roles and responsibilities they perform and how their work
contribute to the firm success. Management by objectives concentrates to assist the team
members to evaluate and priorities efforts to make clear those efforts which are focused on the
bottom line and firm value. The MBO process also assists company's team to know what the firm
doesn't value and what may not need to do anymore. This activity is called as “Activity trap”. It
is like when company is so hectic doing things that company did not remember to ask whether
what company is doing is the right thing. This is crucial thing for everyone in the firm to know.
Supporting to clear hoe the activity trap occurs and how MBO is framed to aid company's
employees to know the target of making work which the team members do efficiently(Closs,
Speier and Meacham, 2011).
Steps of M.B.O.
1. Define organisation goal- The first step is to define the objectives of the organisation so
that everyone in the firm can work with a clear vision and remain concentrated.
2. Define employee objectives- the employees should be made clear about what is expected
out of them and what are their individual duties.
3. Monitoring- The process of the management need continuous monitoring so that
corrections can be taken at the same time.
4. Performance evaluation- this step help in comparing the performance of the employees
against the set standards.
5. Providing feedback
6. Performance rewards

2.2 Five SMART (Specific, Measurable, Achievable, Realistic and Time-based) objectives:
Company's goals setting is one of the most toughest task ever for such individuals who did not
contribute in make objectives. The with the help of S.M.A.R.T. Tool, company can set
company's long term objectives. This has been defined in details:
 S for specific: there are various key components which should be included in the
objective framing. Objectives must be specific.
 M stands for measurable: This is required to be specific in details. With the help of
review process, company would able to use the objectives. It must be very clear whether
the individual get the objectives or not.
 A for achievable: the next key factors to fix the objectives in such a way that they can
attain.
 R for realistic: realistic objectives are the objectives which identify factors that can not be
managed. As, they are so challenging but can be achieved.
 T for time based: this is the last component of goal setting. This is used in management
by objectives setting. The impressed date is the date for future review. When the
employee will be responsible for the commitments which they have created for their
objectives(Davenport, 2013).
2.3 Use appropriate systems to attain goals in the most effective manner:
There are basically many systems which are used in the Toyota to to attain goal and objectives
effectively. Management information system is the system which totally has altered the physical
structure of Toyota to meet local networks and divisional integrated systems. It is also make the
procedures to give company's management at every levels and in entire works with adequate
information from the appropriate source and to make them to take effective and efficient
decisions for planning, directing, controlling and evaluating the tasks for which they are
responsible. There a key task for the management is to make the effective planning by which the
quantity and quality of information gathered would be appropriate to satiate its requirements.

While on the other hands, financial accounting system is the key component of the entire
management information system framework. As, this is only focusing on the internal balancing
books to create ledger and other financial accounting system. Like- accrual arrangement
reconciliation and rectifying entries used to rectify the financial accounting systems to the
general ledger does not always get into the other management information systems.
Company's one department can able to get the information with the help of automation which
may lead to save the time of the departments for searching and all. With the help of management
information systems every department is interconnected to each other, this is also help the
company to boost the efficiency of their employees. With the help of such systems company is
able to improve the efficiency of their departments and due to this they can achieved the set
objectives of the company.
The different performance objectives of the cited company are:
Speed- Company needs to improve its performance so that it can increase its speed as it is
dealing in a auto mobiles. They need to produce products which can compete with the other
same product type.
Quality- With the timely delivery of products company needs to improve its performance in
terms of quality so that the customers feel satisfied after using their services.
Dependability- Company also needs to reduce the dependability of the company on outsourcing
so that it can meet its own demand of different products.
Flexibility- For every business flexibility is very important as the business environment is
dynamic and these changes need to be adopted if one has to survive in the industry.
Cost- It is another important factor why company has to keep control on the performances as it
helps in controlling the total cost of production which is very important
2.4 Types of organizational controls as well as the control process:
Control is the process to mange the thing in a most effective manner. Control can
concentrates on events or incidents before the process, during the process and after the process.
Like- a local automobile vendor can concentrates on the the certain tasks before, during and after
sales process(Zang, 2011). A detailed investigation of new cars and careful opting of sales

representatives are the certain ways or manner to ensures high quality and profitable sales even
before those sales take place. Similarly, Toyota also need to have eyes on the activities which
had occurred before the company operational processes, during the processes and after the
processes. A close monitoring of sales people activities during the sales activities. Such kinds of
monitoring are called feed forward, concurrent, and feedback.
The following mentioned steps are used for control process:
1. Incorporate objectives and standards: There is a need to frame objectives and
standards by the cited firm in order to control process effectively.
2. Measuring actual performance: The actual performance of the firm is to be consistently
measured by the firm in order to have effective control in the operations of the firm.
3. Comparing results with standards and taking corrective actions: The results are
compared with the actual outcomes of the firm and tries to overcome the negative
variance if any occurred.
With the help of these above-mentioned steps, company could get the control in an
effective manner.
TASK.3
3.1 The theory of ‘Total Quality Management (TQM)’ philosophy by stating how this TQM
philosophy:
Total quality management is the regular process of limiting or eliminating the errors in
manufacturing, smooth running supply chain management, enhancing the consumer experience
and securing the employees are up to speed with their training. Total quality management
purpose is to hold entire parties including in the production process which are responsible for the
entire quality of the final outcome or service. The quality management tools could be applied to
entire divisions in an organization. It also assist entire company's members who are working
towards the set objectives and goals of the organization and enhancing roles in each department.
Covered departments can cover management, marketing, production and members training(Hope
and Fraser, R., 2013). With the help of total quality management, company can improve the
performance of the organization.
There are six ways by which company can improve the performance of Toyota. These are
mentioned here under:

1). Commitment: Entire employees of the company is required to have the
improvement commitment. If a better TQM culture is to be emerged in the firm
then quality efficiency should become a regular part of each job.
2). Culture: The firm need to emerge and opt a new culture for the quality
improvement on continues basis. Training is must in the firm for making changes
in the culture and attitudes.
3). Consistent improvement: There is also need to have the regular development in
entire policies, procedures and activities which had been made by the top level
authority for the company.
4). Cooperation: For enhancing performance, company need to follow the
cooperation policies among employees.
5). Consumer: for the sustainable development of the firm, there is need to
concentrate on consumers desires.
6). Control: There is need of powerful control fro monitoring and evaluating the
genuine performance of the firm. Documentation, processes and alertness of
present best practices are the important aspects if TQM functions properly.
3.2 Promotes and implements a Total Quality Management culture in Toyota businesses:
In last few years, firms efficiency has pull specific attention in practical and theoretical areas.
Apart from the total quality management, there are so many areas, which have contributed to the
emergence of available knowledge, namely organizational theory,finance, strategic management,
project management, operation management. Organizational effectiveness is the most searched
subject from the previous phase of emergence of Organizational theory(Reich, Gemino, and
Sauer, 2012.). Firms efficiency and performance evaluation are the inner parts of entire
management processes and has covered management accountants via use of budgetary control
and growth of financial signals like return on investment. TQM is a platform for firms to
increase their competitive advantages. However, there so many firms which are not happy to the
extent to which TQM has been connected with the continuous growth in the firm efficiency.
Performance management systems are the foundation of human resource management policies
and also are the base for emerging system oriented approach for firm efficiency. Performance
management system offer a connection between firms and employee set objectives via goal

setting process and later on connect employee goal action to diversification of HR management
decisions via performance management process .
3.3 Recommend improvements which align Toyota’s objectives and goals:
Toyota company need to make the improvements in the company's goals and objectives.
Business Process Re-engineering is the model by which Toyota can make the changes in their
strategies, operations, and system to perform better financial results and consumers satisfaction.
As, this assist the company to restructure the production and operation process for providing
better product or service in a least amount of period of time, swiftness, quality and cost. BPR can
only be done by the previous incremental and analytical methods. BPR model is the success
factors which lead to successful results for the re-engineering plan, if these are adequate then
they will assure competitive growth for the firm. BPR components are confirmly linked to the
aim and strategic goals of organization and project(Stahl and et. al., 2012). While the mission
and goals are completely based on the purpose and what need to be attained, BPR components
completely focus the crucial factors.
3.4 Wider implications of proposed changes within Toyota company:
Toyota has made Kaizan which is the heart of the company's production system. Such as
entire mass production systems, the Toyota procedures needs all works operations to clearly
explained and standardized to assure utmost quality, get rid off waste and enhance efficiency.
Toyota employees are having an accountability for not adopting strictly these standardized work
directions, along with that there is also need to evaluating their consistent improvements. It is
clearly a basic thing – as this is clear that inherent deficiencies or troubles in any procedure
would be obvious to those closest to the process. The routine improvements which members
make to their working activities and equipments are recognize as Kaizen (Agha, Alrubaiee and
Jamhour, 2012). The term Kaizan has a broad meaning is as a regular efforts for improvement at
each practices of the company from the common manufacturing process to serving the
consumers and the broader community. The external factors can effects the change in a negative
and positive manner. Which affects and implement change to internal stakeholders of the Toyota.

people resist change because the management don't want to opt change accordingly. They afraid
due to change that someone will take their positions.
TASK4
4.1 Explain and assess the impacts of risk assessment
Toyta company should need to make the proper risk assessment policy so that it can
overcome the future incidents. The need for risk assessment is intended for providing the health
and safety to employees at workplace(Mir and Pinnington, 2014). As health and safety regulation
were formed to bring out the assessment of risk that arise of all threats covering their
undertaking. While it is must that the individual who are doing the process, may be at the risk
form threats determined, Some other group is required to opt, eg:
 Those not directly covered in the process but who might work in or implement sphere
where they might get influenced.
 Trainees, young energetic workers, children on school placement, work experience are
commonly bound to overvalue their own capabilities and also to undervalue the hazards
at the workplace.
 New and pregnant mothers who might at higher risk from a procedure or who might
transmit pass on the threats to their unborn or newly born child.
 The Toyota company should be responsive in accessing the various risks associated in
marketplace with respect to its competitors strategy and like the car with lower safety and
security measures.
 The company should develop an efficient system of security in their cars to provide a safe
experience and drive to the customers.
4.2 Health and safety regulations applicable in specific work situations are effectively applied:
Health and safety services will assist in offering information on health and safety issues.
Where individual bring out risk assessments which is related about the deep understanding that is
needed to bring out risk assessment(Oakland, 2011). If there is a high amount of risk then the
big danger and injury is possible, the advice and help of health and safety services must ever be
sought.

Apart form that, the support and advices from the health and safety services described to
above, it may be essential for extra input from the occupational health services. As, health and
safety services are used to identify whether individuals are fix to bring the work included by the
risk assessment and whether any consistent health and safety is needed.
The company should be responsive in developing various policies in relation to the health
and safety needs in the workplace of the business firm. The Toyota should be active in reacting
as per the various needs of the its employees in workplace to provide a good quality environment
and provide health related facilities.
4.3Review the health and safety policy and procedures:
Toyota need to re-assess the health and safety standards followed by the company so that the
company could provide the better assistance to their workers/employees at the workplace in a
better manner. Toyota company also have to check out the loopholes in the health and safety
policy so that they can overcome such issues through reviewing. With the help of risk assessment
tools and techniques, risk can be assessed and effective application can be of risk can be made
for the betterment of the workers risk can be identified on the basis of trend analysis(Lin, 2013).
As, this is the tool in which past information is taken as the base to make the trend analysis. The
company should implement a effective procedure to follow up various health related policies in
their practices of Toyota firm in order to provide good healthy environment to its workforce.
For fulfilling the health and safety requirement of Toyota, company needs to adopt changes and
frequently set up effective review mechanism so that the firm could get to know its requirement
in an effective manner.

4.4 Practical application of health and safety policies and procedures:

CONCLUSION
From the basis of above-mentioned research, it has been found that the company need to make
the dynamic strategy so that it could be changed or replaced during any contingency events.
Company also point out the operational plan so that company can get their goals and objectives.
Toyota company also emphasis to control or measure the performance of the production
processes. So that company could overlook all production related issues. Company also apply
the proper risk assessment tools and techniques so that firm can make the solution to face out the
risk in the company.

REFERENCES
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Zang, A.Y., 2011. Evidence on the trade-off between real activities manipulation and accrual-
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Oakland, J., 2011. Leadership and policy deployment: the backbone of TQM. Total Quality
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Lin, R.J., 2013. Using fuzzy DEMATEL to evaluate the green supply chain management
practices. Journal of Cleaner Production. 40. pp.32-39.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
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