Operations and Project Management

Unit Number & Unit Title Unit 16 – Operations and Project Management
Project Title Operations managment in Toyota

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Operations management in Toyota

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Table of Contents
Activity 1...........................................................................................................................................4
Introduction......................................................................................................................................4
Implementation of principles of operations management in Toyota...............................................4
Design of products and services....................................................................................................5
Quality assurance...........................................................................................................................5
Process and capacity design.........................................................................................................5
Location principle........................................................................................................................5
Job design and human resources..................................................................................................5
Supply chain management...........................................................................................................6
Invertor management...................................................................................................................6
Scheduling....................................................................................................................................6
Operations management and six sigma methodology.......................................................................6
Long term philosophy..................................................................................................................6
Continuous flow.............................................................................................................................7
Avoid over production...................................................................................................................7
Consistency....................................................................................................................................7
Building right culture.....................................................................................................................7
Standardize tasks............................................................................................................................8
Visual control.................................................................................................................................8
Tested technology..........................................................................................................................8
Leadership skill..............................................................................................................................8
Team building................................................................................................................................8
Observations and reflection...........................................................................................................8
Slow decision and fast implementation.........................................................................................9
Reflection is the continuous process..............................................................................................9

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Lean principle in context of Toyota..................................................................................................9
Conclusion.........................................................................................................................................9
Activity 2.........................................................................................................................................11
Introduction......................................................................................................................................11
Continuous improvement plan.........................................................................................................12
Kaizen..........................................................................................................................................12
PDCA cycle.................................................................................................................................13
Plan..........................................................................................................................................13
Do............................................................................................................................................13
Check.......................................................................................................................................14
Act............................................................................................................................................14
Effectiveness of the plan based on theories...................................................................................14
Increased productivity and profits...............................................................................................14
Employee’s morale and accountability........................................................................................14
Agility..........................................................................................................................................15
Lower cost...................................................................................................................................15
Decreased delivery times.............................................................................................................15
Improved quality..........................................................................................................................15
Strategies for continuous improvement based on theories..............................................................15
Flow management........................................................................................................................16
Lean manufacturing system.........................................................................................................16
Six Sigma...................................................................................................................................16
Conclusion.......................................................................................................................................16
References........................................................................................................................................18

Activity 1
Introduction
The business operations are the variety of processes that a Toyota company carried out to
produce goods and services. Every process has its unique features and sensitivity, advantages
and disadvantages as well as implications. Smooth business operations help an organization to
grow continuously and achieve company objectives and targets in sales. Business operations
include production, arrangement of supply chain, inventory matters, delivery of goods and
services, administration and many other activities that comes under operations management. To
assure business operations accuracy and timely delivery of all tasks as per company standards
there is a department within an organization named operations management.
Operations management department helps to monitor business operations and removes flaws and
supports continuous improvement in business processes. Operations management is an area of
Toyota Company which is responsible for production processes and keeps them efficient in the
form of cost effectiveness, time management, streamlining business activities, and minimum
waste of material; keep all resources productive and efficient. Operations management helps the
compliance of standard operating procedures outlined by company management. Human
resource management, asset management, cost management, and administration comes under
operations management.
 Operation means that perform actions and decision made by owner of Toyota enterprise
and member of business that affect service, management, distribution and production.
 Operation management is based on the administration of enterprise practices to create the
highest level of efficiency. It can possible when converting the raw materials into better
good and services. Afterwards, it will be increasing the maximum profitability as well as
productivity in marketplace.

Implementation of principles of operations management in Toyota
The Toyota motor company practices variety of operations management principles to keep
business operations effective and efficient. The Toyota Company uses well defined practices and
theories combine to avoid any ambiguity in business processes. This is the reason of company’s
unique operations management which is being admired not only by the consumers but corporate
sector as well around the globe. The company has is practicing following operations management
principals to keep business efficient (Cousins et al., 2008).
Design of products and services
To have cutting edge design of products and service the company uses technology and innovative
tools and highly talented experts. The R&D investment style of company helps to assure excellent
features of products and services. Toyota uses integration system for dealership sand after sales
services to assure maximum customer satisfaction (Cousins et al., 2008).
Quality assurance
For quality assurance purpose the company uses Toyota production system which is built within
the organization. Quality maintenance is the key factor to have competitive edge over competitors.
Toyota uses operations management principles for continuous improvement to assure quality in
every aspect of the business.
Process and capacity design
For business process and the capacity design of company uses lean manufacturing principal. The
company is focused on minimum waste and increased efficiency of processes. Cost effectiveness
in business process and capacity design is the company’s focus (Cousins et al., 2008).
Location principle
The Toyota Company has choses locations of business as per country’s circumstances. Around the
world in some countries the company has manufacturing plants and in some countries the
company has assembling plants but in some countries the company has only dealerships but
company sends products from nearby locations or countries.

Job design and human resources
Toyota practices its production system for employees and supply chain. The Toyota way culture is
the company’s instinct to provide environment for employees and services providers. Company
respects a lot of its employees and contractors or dealers (Chhajed & Lowe, 2008).
Supply chain management
Company uses lean manufacturing principal in supply chain management. There are automated
systems installed within the organization which monitors real-time adjustments in supply chain
process
Invertor management
For inventory management the company uses Toyota production system which assures minimum
levels of inventory by producing timely required unites and making sure of timely delivery.
Scheduling
In scheduling the company uses lean manufacturing principal. With the help of scheduling the
company minimizes operational cost.
Toyota has been implementing the different parameters in term of business progress or
improvement. It includes quality of goods, proper scheduling, HR management, process and
capacity of entire business activities. By considerations of all essential elements that always
support for creating an effective design pattern of each product so that they can easily targeting
the potential consumers in global marketplace. In order to increase production and sales in global
marketplace.
Operations management and six sigma methodology
The Six Sigma methodology is the framework to increase the efficiency of the operations
management. This methodology helps to point out flaws in operations management and suggest
some recommendations to fix errors timely. It also helps to reduce operational cost and helps in
time saving. The Six Sigma is an expansive technique to implement in an organization but its
proper implementation helps an organization to become industry leader. The Toyota Company
with the help of Six Sigma methodology is continuously improving its operations management,
which is the secret of company’s long term sustained success in automobile industry. The
company is enjoying consumer’s trust this is why company’s enjoys outstanding sales around the
globe through advance booking of car unites. Following are the main elements of six sigma
framework which I have discussed below (Chhajed & Lowe, 2008).

Six sigma: it is based on the method that provide Toyota tool to improve its current capability of
their business activities. Sometimes, it always support for increasing performance and decrease in
process variation in order to detect reduction or improvement in profits. Toyota can be used six
sigma in context of production system. through this, it continuously focused on the standardize
tasks, develop an efficient team and control visual control. This will help for improving the entire
production system through six sigma.
Lean approaches: It is the way to start the business that emphasizes the business model over
effective plan. In this way, it always encourages a process of client discovery, development and
iteration to achieve right good and service into marketplace. Toyota should consider the lean
approaches in business growth and development.
 Identifying the importance of process improvement in the manufacture improvement
project
 Engage with the participants in the search of effective changes
 Ensure the support from organizational leaders
 Examine the specific physical space for project meetings.
Long term philosophy
The Toyota motor company follows long term instinct of success instead of short term. Every
strategy and practice of the company is the reflection of company’s long term planning of

staying in the race of industry. This strategy of the company has worked well and still continues
the growth of Toyota Company around the globe. The Toyota is the second largest company is
the world market share wise which is the resultant of the company’s long term planning. The
company focuses long term benefits in every attribute of the company (Chhajed & Lowe, 2008).
Continuous flow
The Toyota Company focuses on continuous flow of inventory to avoid any delay and service
gap. To maintain continuous flow of supply and demand of inventory the company takes
booking of car unites in advance to avoid over production and also assures timely delivery of its
commitments and consumers are still waiting for next booking of car unites this is the
consistency of maintaining continuous flow of inventory adopted by Toyota company (Machado
et al., 2017).
Avoid over production
Minimum wastage of material and appropriate stock of inventory of car unites helps Toyota to
keep balance in demand and supply of the products and services.
Consistency
The company follows consistency in every process of the business to assure optimized level of
quality in every aspect. Consistency is the key factor in every success which is the part of
Toyota’s business values.
Building right culture
The Toyota Company maintains right culture not only within organization but in customer
services and relations as well. The right culture within organization helps to optimize employee’s

productivity and right culture outside of the organization helps to maintain brand image and
enhanced the position of company (Machado et al., 2017).

Standardize tasks
The standardization of all work process and tasks enables Toyota to point out flaws which can be
fixed appropriately.
Visual control
The Toyota Company uses visual clues within company premises and dealerships points this
practices helps employees and consumers to find out right option and path towards their search.
Tested technology
Toyota Company has established itself as trusted brand so it will be risky for company to use
unverified technology in production and other processes that is why company uses tested and
trusted technology and innovative tools to assure quality in products and services.
Leadership skill
For a long term planning of success time waster employees cannot be useful for company for this
purpose the Toyota Company employs experts and employees who have leadership qualities
which can help the organization to achieve long term goals instead of short term (Machado et al.,
2017).
Team building
The team building strategy of the company helps to retain talented people and enjoy benefits of
long experiences of employees. The company believes in team building strategy to assure
continuous improvement in business operations.

Observations and reflection
The employees of the Toyota have been trained to keep improving over time so that growth
process of the business cannot be hindered by any obstacle. The experts of the company are

continuously observing and reflecting through their work to maintain company values (Slack &
Brandon-Jones, 2018).
Slow decision and fast implementation
The Toyota company practices slow decision and fast implementation of strategy or principal
which means decision has been done after consideration of variety of factors but once the
decision has been made then implementation will not be delayed (Slack & Brandon-Jones,
2018).
Reflection is the continuous process
Innovating and improving in every aspect of the business is the ongoing process.
Lean principle in context of Toyota
The lean principal of manufacturing which has been adopted by the Toyota Company includes
elimination of the waste to assure efficiency of processes. The lean system of the Toyota
Company is being studied around the globe. The lean manufacturing system was adopted by the
company to make continuous improvement in business process and quickest delivery of the car
units to consumers. The Toyota production system is based on toe elements number one is Jidoka
which means automation of production with human touch so that in case of emergency error can
be fixed timely to assure fast recovery of production process. The number two elements of the
production process include just in time which means every process will produce that is needed
by next process so that minim waste can be assure in short time. Based on two elements of
Toyota production system the company is continuously improving and producing products and
services on fast pace (Slack & Brandon-Jones, 2018).

Conclusion
As per above discussion it has been observed that Toyota motor company is well developed and
planned business model to stay long lasting in the race of business. Toyota uses well researched
theories and routine practices in business processes to assure error less business processes. The

company maintains balance in demand and supply of the products and services by employing
appropriate tools so that craze among consumers for products and service can be sustained. The
Toyota production system is unique because it has been introduced by the company itself to
carry on business in Toyota way.

Activity
2 Introduction
Continuous improvement
- It is also called as a kaizen method as according to this, it is a method that can be used for
recognizing opportunities for reducing waste and also for efficient working. Leaders who
needs to develops a culture of the fast continuous improvement as many have tools at their
waste. So it is very difficult to keep all within mind in deciding regarding executing
opportunity in order to address or improves a challenge which is quite difficult. As it is also
noticed that not all the firms use all of them at one time but can use effectively at a time
when a right situation arises.
Tools and techniques for continuous improvement
Catchball
The idea regarding to the this is very simple as if a firms begins to work within a rapid planning
project as for that they can define goals, purpose, challenges and background and then throw them
to several stakeholders in order to take their opinions, actions and help. At every step, it can clear
than who has ownership of idea( ball) as the ideas can be back as well as forth among all the
employees until the improvement can be done.
A3
It is consider as a continuous improvement and problem solving approach that can be first
employed at Toyota as well as learn manufacturing practioners. It is one page report that provides
results from the cycle called PDSA cycle. The software of A3 makes it possible to see the A3
electronically as it has advantages such as increasing accountability and transparency and provides
the capacity to drill down the details and share improvements to impact widely.
Continuous improvement plan
The continuous improvement plan is the framework that can point out errors and implications in
business process and then makes some recommendations to counter errors make processes
efficient. As we have already discussed above the operations management principals adopted by
the Toyota motor company to assure resilience in business. Continuous improvement plan helps

to increase productivity and profitability of the business. Overnight any improvement is not
possible in organization especially like Toyota time required to make necessary changes. Here
we have discussed below the tools of continuous improvements (Heizer et al.,2008). Thus, the
plan is defined as below
Objectives Benefit Strategy or action Responsibility
Specific- to bring in
improvement within
production operation
In this producing
operations of
company will be
improved
Here, kaizen quality
tool will be applied in
it.
The top
management is
responsible for
developing
strategy in it
Measurable- to
measure and maintain
efficiency of
production
The main area will be
assembling section
This will be done with
help of TQM tool
Here,
operational
manager is
responsible
Achievable- to attain
8% efficiency in
operation
This will benefit in
producing more units
and reducing
operational costs
In this KPi will be
applied to achieve
objective of efficiency
In this
operational
manager is
responsible
Realistic- to ensure
continuous
improvement in it
The organization as
well as employee
efficiency will be
enhanced in it
With help of
technology the
improvement will be
maintained
General manager
Time bound- to
enhance efficiency
within 3 months
Toyota Will be able to
apply this tool in other
areas as well.
The proper schedule
will be prepared in it
General manager

Here we have to discuss the concept of the continuous improvement which means over time
getting better in any aspect or attribute. It is comparatively easy to make some improvements but
it is not easy to maintain continuous improvement in any process. There many tools which are the
driving forces of continuous improvement these tools vary as per the nature of work or business.
In business industry there are external and internal factors that matter in continuous improvement
for example market condition, global financial condition, customer expectation, the goals and
objectives of an organization, low productivity, low employee engagement, poor management of
the overall business.
The lean manufacturing system and six sigma techniques are the one of the tools to make
improvements in business processes. Similarly the Toyota Company has adopted the tools and
strategies which are the proof of company’s long term success in business. The Toyota Company
uses lean manufacturing system and Toyota way strategy as well as six sigma framework to
assure continuous improvement in operational activities of company. It is the continuity of the
improvement in business process Toyota motor company which has strengthens the company’s
internal health to assure long term sustained profitability.
Continuous improvement plan
The continuous improvement plan is the framework that can point out errors and implications in
business process and then makes some recommendations to counter errors make processes
efficient. As we have already discussed above the operations management principals adopted by
the Toyota motor company to assure resilience in business. Continuous improvement plan helps to
increase productivity and profitability of the business. Overnight any improvement is not possible
in organization especially like Toyota time required to make necessary changes. Here we have
discussed below the tools of continuous improvements (Heizer et al., 2008).
Activity How to improve Time intervals
Culture and environment It will be improved by
considering the engaged
strategy in order to maintain
coordination between staff
members
1-month
Increased efficiency and
performance of business
Need to change the essential
equipment in order to increase
2-months

operation the performance and satisfy
customer requirements.
Increase production Applying lean approaches to
enhance overall business
capabilities.
3-months

Kaizen
The word kaizen means change for better it is Japanese word. The Kaizen framework was first
used by the Japanese businessmen during World War 2 later on it spread to the rest of the world.
The Kaizen framework focuses on two main elements for continuous improvement one is team
of experts and second is Kaizen corner. The team of experts means the Toyota motor company

must hire such employees of professional who can survey the company processes and point out
some improvements accordingly. The recommendations may include employment of new
software, techniques, business model, business processes, task force, machinery, and many other
things. The specialized team is expert in making improvements within the organization
(Schroeder et al., 2008).
As per above scenario which we have discussed the Toyota motor company must have quality
assurance team which can review business process and methodologies occasionally the point
which quality assurance points out must be redefined later on and employed with some
improvements. As per Kaizen Corners the Toyota Company can also provide handouts to every
employee and trained them that how they can make improvements within their capacity. The
company may also take some suggestions from employees to make some necessary changes if
there is a worthy suggestion the company must implement that and offer incentive to those
employees who have the abilities to make some improvements in business processes (Schroeder
et al., 2008).
PDCA cycle
The PDCA cycle is also very important tool to make improvements in business processes. One of
the most popular process improvement tools is the “Plan Do Check Act” cycle (PDCA). This
cycle is often credited to Dr. William Edwards Deming and Walter Stewart. This four-step model
is often shown as a circle because continuous improvement is a process that should be repeated
over and over again (McLaughlin & Olson, 2008).
Plan
In this first part of the cycle, the Toyota motor company will identify the opportunity present and
create a plan for improvement. The company can begin by defining the problem, outlining the
opportunity present, brainstorming ideas, and developing a plan. The company should also state
its desired outcome and if once company’s problem is resolved (McLaughlin & Olson, 2008).

Do
Now that company has to identify a possible solution which company needs to implement this
plan on a smaller scale. This will allow company to test its solution and figure out whether

company’s required changes achieved its desired outcome. Testing solution in this way will be a
good way to see if it works or not without making any major disruptions (Drohomeretski et al.,
2014).
Check
During this stage, company can compare its results to the expected outcome that company has
outlined in the planning phase. If company’s expected outcome was not achieved then company
should start the cycle over again. If it does work then company can continue to the fourth stage
of the cycle.
Act
During the final stage, the company will implement its solution on a wider scale. However, keep
in mind that PDCA isn’t a one-time initiative. Whenever there’s an opportunity for improvement
within the company, the Toyota will need to repeat this process again (McLaughlin & Olson,
2008).
Effectiveness of the plan based on theories
The continuous improvement plan helps to discover problems of business and suggest ways to
counter problems. The minor changes in business process sometimes may take an organization
towards success. The effects of continuous improvement plan here we have discussed below.
Increased productivity and profits
The continuous improvement in business processes and other areas of the business can help
Toyota to increased company’s productivity and profitability. Because errors and flaws in
operational activities hinder the not only the company’s growth but it impacts the company’s
profitability as well. The recommendations in improvement plan are the main solutions for
company problems (Rahman et al., 2013).

Employee’s morale and accountability
The employees of an organization are directly involved in operational activities so they know
better improvements to make in business operations. An organization must have the culture of

accepting employee’s suggestions which may help to reform or fix some issues which are
hindering company growth. The continuous improvement plan is the framework that motivates
employees to contribute in company progress (Upadhye et al., 2010).
Agility
Another element which has reflects the effectiveness of continuous improvement plan in Toyota
motor company is agility. The agility in operational activities and employees as well is the
resultant of continuous improvement plan.
Lower cost
Continuous improvement plan eliminates errors and flaws which enhance the efficiency of
processes and ultimately reduced operational cost of the company. The reduced cost
automatically causes increased profitability of the Toyota motor company (Upadhye et al.,
2010).
Decreased delivery times
The increased productivity of employees and machinery and production processes help to
decrease the delivery time of products and services of the company.
Improved quality
In continuous improvement plan we have discussed to form a team of quality assurance this team
will monitor all activities and point out errors and solutions to counter flaws and gaps in business
processes. The improved quality of products and services and business activities is possible due
to continuous improvement plan (Walsh, 2012).

Strategies for continuous improvement based on theories
Here we have few strategies which are based on famous theories. These approaches are the tools
of continuous improvement in Toyota Company.

Flow management
The flow management is the framework that helps to manage business flow of an organization
for example in Toyota motor company from supply chain to final manufactured car unite sale to
consumer is the circle of business flow. The balance in business flow is good for company
growth, profitability, and health as well but it is not easy to maintain balance in business flow.
The Toyota motor company uses different operations management principals to manage flow
(Sekhar et al., 2008).
Lean manufacturing system
It’s a socio technical system which has been derived from Toyota production system it’s an
integrated system. This approach includes reduction of waste, making cost effective operational
activities, and elimination of inconsistency. The lean manufacturing system in Toyota motor
company enables company to deliver all tasks on time (Morissette & Wisozk, 2012).
Six Sigma
This strategy or theory focuses on quality assurance of the Toyota motor company as well as it
also increases the efficiency of business activities. Six Sigma frameworks assure consistency in
activities and it removes obstacles to keep business operations smooth (Anand et al., 2009).
Conclusion
As per above discussion it has been concluded that Toyota motor company has sustained its
success for long term which is the result of continuous improvement. The company use different
tools to assure continuous improvement in operational activities and other business activities.
The continuous improvement is the process of getting better day by day. The improvement in
business operations is not possible overnight. To make necessary changes in processes and

activities there are many factors which need to be consider. Continuous improvement in business
attributes has variety of effects on Toyota motor company. These effects include increased
efficiency of business operations, smooth working environment of company, increased
satisfaction of employees causes to increase their productivity, satisfied employees are more

loyal and trustworthy for Toyota Motor Company. The continuous improvement plan is best tool
to bring innovations in business operations and motivate employees. Implementation of
continuous improvement is not easy and cost effective but it is very expansive tool and difficult
to implement in an organization.

References
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