Toyota: Managing Quality and Managing People

Toyota: Managing quality and managing
people in operation and supply chains

Table of Contents
INTRODUCTION...........................................................................................................................1
Operation function..................................................................................................................1
Manufacturing process...........................................................................................................2
Infrastructure used by Toyota to manage delivery system.....................................................2
3 Different theories that are used in the Total quality management by the Toyota...............3
Recommendation....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Organizations around the world aim at understanding the requirement of customers and
in providing them with services and products that enables to raise the sales and profitability.
There are different type of departments that work together with a common goal to attain the
business to reach their set goals and objectives (Slack Brandon-Jones and Johnston, 2013).
Companies need to maintain the supply as per customers’ demand. In this process there are
different types of issues that are faced by the business like managing suppliers as they are the
one who deliver or provide raw materials for the firm. Main focus of the research is made on
Toyota. It was founded in the year 1937 and is headquartered at Japan. With time there are many
changes that have taken place in respect with technology and the organization has always
focused on making improvement in their products so that satisfaction level of customers can be
raised. Main reason for selecting this business is that at earlier years cited firm was able to
maintain their sales and profitability (Asgari, Nikbaksh and Hill, Farahani 2016). However, with
time there are many new firms that are come up and these deliver similar type of products and
services. This has slowly reduced the performance of business in negative manner and the
quality that was delivered by the firm has also reduced. This essay covers on the key operation,
logistics and supply chain management issues that are faced by operations and supply chain
manager of Toyota. Further, it provides recommendations through which the issues faced by the
firm can be reduced.
Operation function
Management can be determined as a social process that consists of responsibilities of
regulating the operations of the firm in order to achieve their desired goals. There are mainly
three different type of functions that are considered by Toyota, it includes planning,
organization, controlling and staffing. There are strategic plan that are developed by Toyota and
this enables them to guide long term operations of the firm (Saraph, Benson and
Schroeder,1989). There are three main aspects that are focused by the firm and these are: quality,
customer’s satisfaction and manufacturing. These are applied so that operational cost can be
minimized and in meeting customers requirement and in maintaining the quality of services.
Cost generic leadership strategy is applied by the firm in order to attain competitive advantage in
this global market.
1

There is different type of functions that has to be performed by the business so that
customer’s requirements can be met. In this process, it requires to have proper support from the
side of workers (Menon, 2012). Toyota makes sure that they understand the issues that are faced
by employees and accordingly appropriate steps are taken and this way they are able to maintain
smooth running of business operations. Majority of the manufacturing operations are done by the
firm centrally and spare parts are transferred subsidiaries for assembling. This is a type of
strategy through which Toyota is able to minimize cost and ensure uniformity. Further, highly
skilled workers are hired and this is helpful for the business to make sure that they are able to
support the business to grow and in attaining the set objectives (Jacobs, Yu and Chavez, 2016).
There are close monitoring of the operations of the business and they also make evaluation
against organizational targets.
Manufacturing process
Toyota production system is used by the firm and this is determined to be the way of
making things. Further, it is also referred to as a Just in Time or Learn manufacturing system
(Christopher, 2016). This was developed based on the years of continuous improvement in
which order made by customers is delivering at quickest and in most effective way. TPS (Toyota
Production System) was established based on two concepts which are: “jidoka” (automation with
human touch) and “Just in Time” (Production to be made in continuous flow). In accordance
with jidoka, when any defective part is identified, then the machine that is affected gets
automatically stop. This is helpful enough to make sure that quality of products is maintained
(Fernie and Sparks, 2014). On the other hand, Just in Time aim at minimising the rate of waste
and unreasonable requirements of production line. The total time that is required by the business
to build the order of customers is low.
Infrastructure used by Toyota to manage delivery system
To obtain raw materials, Toyota does not process their own but they make use of third
party so that they are able to meet the requirement of customers. There are five stages involved
in supply chain of Toyota. In this context, it includes local part, import parts, receiving
dock/production, dealer and to customers (Govindan, Soleimani and Kannan, 2015). Cited firm
put on assembly system in the process and there are stores or warehouses in which the order is
placed. Demands for the side of customers are conveyed to firm, then they make production as
per requirement. It is important for the business to meet the need and it requires to have proper
2