Operational Management of Toyota: Key Performance Indicators and Total Quality Management

Running Head: OPERATIONAL MANAGEMENT
OPERATIONAL MANAGEMENT
Students ID:
Name of the University:
Authors Note:

OPERATIONAL MANAGEMENT
2
Table of Contents
Introduction................................................................................................................................4
Discussion..................................................................................................................................4
Answer 1.................................................................................................................................4
Answer 2.................................................................................................................................6
Answer 3...............................................................................................................................10
Conclusion................................................................................................................................11
Reference list............................................................................................................................13

OPERATIONAL MANAGEMENT
3
Introduction
Operational management is necessary to be for the development of the strategic
business. These strategies are used to offer a plan for designing and managing the different
functions of operations in a way to assist business production. In this aspect, the operational
process is one of the ways in which business operates functionally. The main purpose of
operational management, in particular, is to provide a competitive advantage to the
organisation. Therefore, this specific ability of the company to gain success in the market is
often known as competing priorities. It is by the way of providing excellence in business the
company makes it possible to place itself as the winner in the particular market.
In this context, the assignment presents the operational processes of Toyota with
respect to the key performance indicators and the total quality management effort taken by
the company.it has been seen in the case study that Toyota faced several challenging issues
while growing its business. However, it is the operational manager of Toyota who determined
to enhance the process of production within the company through years of the trial as well as
mistakes. The company’s hidden weapon of success is lean manufacturing that is a
revolutionary initiative towards business. It has helped the company to balance the duties of
the employees within the company while valuing the continuous improvement of the
company.
Discussion
Answer 1
Balance score card through the aspects of Key performance standards
Aspects Lagging indicators Leading
performance
indicators
The Financial perspective
 There is increase in productivity with
the growth in sales within the market.
 There is an sharp increase in sales in
the areas of growing market
 It has been seen that almost 38% of
the dependable models have been
 Increase of
profit and
productivity
 High
collaboration
with the
 Mixture of
revenues
 Huge
investment
in the
market

OPERATIONAL MANAGEMENT
4
produced by Toyota in the last five
years (Henderson, Cheney & Weaver,
2015).
 Toyota success in scorecard has come
mostly from the incredible quality
reputation that recalled almost 79% of
the vehicles in the United States
growing market
 Profitable flow
of cash