Operations Management Strategy

Operations Management Strategy 1
Operations Management Strategy
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Operations Management Strategy 2
Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Toyota’s business activities.............................................................................................................4
Toyotas Manufacturing process.......................................................................................................5
What can be done to improve the processes?..................................................................................7
Why Toyota is successful................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Operations Management Strategy 3
Executive Summary.
Operations management is a crucial element in any organization since it controls the
efficiency of business practices within the organization. However, operations strategies ensure
objectives as well as the efficiency of business practices in an organization are attained
effectively. This report seeks to outline the different aspects of operations strategy present
Toyota Motor Corporation, and how they can be improved. Such aspects include; business
activities present in Toyota, an analysis of the manufacturing process in Toyota, what can be
improved in the process and lastly why Toyota is successful.

Operations Management Strategy 4
Introduction.
Toyota Motor Corporation is a multinational automotive company based in Japan. Toyota
is the second largest automobile manufacturer since it has incorporated nearly six hundred
subsidiary companies mainly involved in the production of industrial and commercial vehicles,
automobile parts and automobiles (Fujimoto, 2018, pg. 201). Toyota has remained successful
over the years particularly due to its unique operations management system. Besides, Toyota’s
decentralized structure has been instrumental in ensuring efficiency since teamwork and
employee participation are highly encouraged in the company. Toyota focusses on high
productivity; therefore, quality is a crucial issue. In addition, the company’s lean manufacturing
philosophy assists the company to minimize waste as well as reduce the cost of manufacturing.
Toyota’s business activities.
Toyota Motor Corporation is engaged in various business activities since it has
diversified and invested broadly. However, the automotive business is still primary to Toyota
since it makes up the main revenue for the company. To begin with the business activities, we
have the development of electric technology. Toyota is among the world’s leaders in pioneering
the development of hybrid electric vehicles. Besides, Toyota was the first automotive company
to introduce hybrid electric vehicles such as Toyota Prius in the year 1997 (Toma, and Naruo,
2017, pg. 572). The hybrid models have sold out globally, and as at January 2017, the hybrid car
sales crossed the ten million line. Toyota has also been at the forefront of creating all-electric
vehicles, and in May 2010, the company collaborated with Tesla in coming up with about thirty-
five fully electric RAV4s as an evaluation program. Toyota project known as Harmonious
Mobility Network is also another activity in which the company is testing different electric
vehicles concepts so as to ensure it competes well in the market.
Secondly, we have the manufacturing of cars and buses. Toyota manufacturers over
seventy car models due to its massive manufacturing capability. In addition, Toyota also
focusses on luxury car models under the Lexus brand including crown, century and crown
majesta. In the history of car sales in Toyota, the Corolla brand has remained the fastest selling
car for decades. For example, about every thirty-seven seconds, a Corolla is sold. Toyota
produces nearly nine to ten million vehicles every year, and the company is believed to be the
most profitable carmaker globally. Toyota also designs buses such as Hino, but due to