Toyota's Management and Operations: A Detailed Analysis Report

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This report provides a detailed analysis of Toyota's management and operations, covering various aspects such as management and leadership styles, supported theories, strengths and weaknesses of different approaches, and key operational functions. The report delves into the Toyota Way, exploring concepts like Kaizen, lean leadership, and the DMAIC model. It examines the responsibilities and roles of managers in operational functions and highlights the external business environment factors influencing Toyota's operations. Furthermore, the report discusses the company's operational management efficiency, including its strategies for quality control, inventory management, and supply chain management. The report concludes with recommendations for continuous improvement and emphasizes the significance of customer focus and employee satisfaction for Toyota's ongoing success. This report is a comprehensive examination of Toyota's management and operational strategies.
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RUNNING HEAD: MANAGEMENT AND OPERATIONS 0
Management And Operations
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MANAGEMENT AND OPERATIONS 1
Table of Contents
Task-1....................................................................................................................................................2
Introduction.......................................................................................................................................2
Management and Leadership.............................................................................................................2
Supported Theories and Roles of Management.................................................................................3
Strength and Weakness of Different Approaches..............................................................................4
Conclusions.......................................................................................................................................4
Task-2....................................................................................................................................................5
Introduction.......................................................................................................................................5
Responsibilities and Roles of Managers in Operations Functions.....................................................5
Key Operational Approaches of Toyota............................................................................................6
External Business Environment Factors............................................................................................6
Operational Management Efficiency.................................................................................................7
Conclusions and Recommendations..................................................................................................7
Bibliography...........................................................................................................................................9
Task-1
Introduction
Toyota is the world largest manufacturer of automotive in its net sales and its unit sales.
Toyota is founded in 1937, as a Toyota Motor Corporation and it is a company which is
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MANAGEMENT AND OPERATIONS 2
Japanese with an engagement of assembly, design, commercial vehicles and cars
manufacturing in major parts of the world. Toyota Company is long recognized as leading
company in automobile manufacturing in UK (Toyota, 2019). Corporation give rapid rise to
success in its management operations and its whole marketing strategies. The management
philosophy evolved right from the origin and completely reflects in the operations of the
organization. The management structure comprises of structural framework that has strong
centralized global hierarchy and well-structured framework (Toyota, 2019). Toyota maintains
global stages in the hierarchy in the headquarters in Japan take the final steps and it is
responsible for major decisions on all the issues. Despite with the restructuring, company
always maintains its system of global hierarchy but that change the regional heads units in
increased aspects.
The company has geographic divisions in countries like Japan, Europe, China, Caribbean,
North America and Africa. All the divisions are subjected to report directly to headquarters
and there are subdivisions that took most step for the particular branch. The ultimate and final
decisions are still lies with the headquarters in Japan. The successful story of Toyota is built
on new strategies and innovations and taking care of products and processes by which they
are established (Hierarchy Structure, 2019). Another hierarchy of Toyota Company is
compiles with set name as Product based divisions. The products are divided and this is the
most important feature with Toyota organization which gives supports to brands lines and
development of the same. This division is also based on flexibility of company and resolve
decisions that have ability to cope up with the scenario.
Management and Leadership
The effective role of Toyota company is different as it defines the business in automotive
industry that engaged in activities consist of designing and manufacturing. The management
of company strategies and there is development in organizations that lead to increase the
quality of the products and performances of the Toyota Company. The role of managers is to
initiate in effective and efficient manner with leaders of the company. Toyota is a company
which establish standards for the continuous performance of the tasks and leaders in the
company with its interpersonal skills of communication get their work done through standard
measures which are made by managers. Toyota managers have philosophy and uses of
distinctive approaches that builds what distinguishes leadership of Toyota from other
companies.
Leadership is a transformational skill that possesses the main ability to be a leader. On the
other side, Management is a practice and a discipline where manager manages all the things
and outcomes in managing things in an organization or company. Manager performs duties
with hiring, motivating and training of the employees which can enhance the structure of
management organization like Toyota. A leader influences all his subordinates to be specific
for goals and achieve it for the betterment of the organization. A manager takes his decisions
by his own and leader help organization to facilitate it. The manager functions starts with
planning, organizing the team, controlling the activities and then coordinate with all. Toyota
is an organization where leaders have the qualities of clear vision, ability to inspire and have
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MANAGEMENT AND OPERATIONS 3
good communication skills that can enthusiasm employers in the management for longer
period of time (Shinka Management, 2018).
Supported Theories and Roles of Management
Toyota leaders believe in distinctive philosophy and used an approach that fits the scenario of
Toyota way. The situations of the organizations depend upon the internal and external factors
of prevailing environment and that are concern with its competitors. The main purpose is on
two dimension matrix that helps to depict and distinguishes trait of leadership in company.
The leaders of Toyota are more passionate and involve people who are doing work which is
value added to improve the continuous process. Toyota have a systematic way of developing
all its leaders and the major development through create visions, coach and develop others
and build local capability from management in daily manner. There is adoption of diamond
model of lean leadership in the Toyota Company from many years and it will go
consequently in many years (Toyoda, 2019). The requirement of dimension is to do with
depth understanding of work which is done by experts in general management. Some of the
concepts and theories which are supported in the management structure are as follows:-
Kaizen is a philosophical model that helps to eliminate waste, work procedures,
identification of the problems and helps to ensure maximum quality. Kaizen
humanises and empower members to identify areas and suggest practical solutions to
the problems. It is the core principle of TPS and the model for improving continuous
and a statement dialog as’ Always a better’ slogan in its structure (Toyota , 2013).
Source: ( (FORMASPACE, 2017).
The lean leadership approach tells about the constant growth in consecutive years and
increase strong branding and respect to all the teams in its structure. In fact Toyota
will celebrate its successful years of growth and innovation in management structure.
The main motive of this approach is to follow the leaders and well figure the strategy
and implementations by coming together. In this, leaders are coached by experienced
mentors to broaden their management skills (Ede, 2012).
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MANAGEMENT AND OPERATIONS 4
The creator of six sigma system is developed by Toyota and it offers best quality, lead
time with shortest and that is low priced also that eliminates waste by short lead time.
This is based on the model where they decreased the setup times by training
employees to carry the further steps; Toyota manages its slash times from hours and
even to minutes also. Manufacturing things lead to large inventories, setup costs and
huge defects costs; it is possible for manufacturing things in smaller quantities.
Toyota ordered their main employees to provide best trainings to carry out specialised
tasks and that must conclude with participation of dealers (Six Sigma Training, 2017).
DMAIC model is the approach which is followed by Toyota and it is problem solving
approach that has five steps and relation of statistical tools that defines the problem
first, measure its consequences, analyse the results that arte most suitable and then
improve and control the Toyota organisation structure. The duration of DMAIC
structured project that is more than three months and that have complexity of the
relevant problems and the main procedure of improvement. The model illustrates with
defining six sigma characters in current state assessment at first stage, and then it goes
with value state map to measure its outcome and identifies its priority issues with the
same. To analyse and identify the causes of the problem will be the next consequent
step in modifying the relative terms. The development of DMAIC model is being
credits with Motorola, but largely it has further expansion system in Toyota
(Henshall, 2017).
Source: (Novask, 2019)
Strength and Weakness of Different Approaches
The approaches which results in varying and leading management structure and their main
weakness and strengths to leadership management in Toyota are many and change from time
to time. Toyota employees are engaged in maintaining the quality resources and increases
social responsibilities with total quality, manufacturing quality and design of the innovative
products. As the main focus is on lifeline of the quality in Toyota industries and provide even
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MANAGEMENT AND OPERATIONS 5
best quality of products. In manufacturing, this industry involves in research and
development to design review system that evaluate planning of the product and post sales of
satisfied customers (Toyota UK, 2019).
The company only manufactures quality products that are adopt in market approach and get
known by its competitors and suppliers of the Toyota Company. The major issues that are
deals with company structure as accidents happened with the quality of the Toyota product,
there is a department of Quality Assurance Department that deals with all the weakness of the
products and provide better results (Toyota Industries, 2019). The company is setting up
Recall Preparation conferences in every country to devise all the countermeasures and
various formations of teams are helping to retain their customers again. The lean theory is
latest and supported as followers and employees are coming together to take good actions in
the Toyota company with their competitors strategies and new launch of the product can be
easily done (Shook, 2017).
Conclusions
The leaders and managers play a significant role in functioning of the management and
continuous growth structure in developing their structure. Managers manage the efficiency
and effectiveness of whole organization. HR also plays role which motivate the employees to
retain in its structure for longer period of time. The use of different models is the main
strategies of the whole process that has positive impact on Toyota. A hybrid model describes
the customers who are more conscious about the higher selling prices and environment.
Toyota spends huge amount of money in their goals of research and development. The
continuous development with the resources according to the product innovation with the
latest technologies and major role is to contribute for customers who are using it. In order to
effective quality system, Toyota believes in focus of the customers by developing strategies
and responds to the organization growth and profitability. The Toyota believes in continuous
growing structure and learning is the best attribute of Toyota organisation. Quality
improvements are being solved through activities of team work in the organisation. (MEYER,
2017). They put more emphasis on the product quality and conducting surveys that results in
feedback of the customers by online websites and at their own places. Toyota believes in
analysing the performance level of all the hierarchy in frequent basis and carry out employee
satisfaction surveys in workplace. The main aim results in manufacturing process that is
conduct by manager and leaders and that has positive impact on the future growth of Toyota
Company.
Task-2
Introduction
A Toyota motor corporation in UK is the largest corporations and results in operating
management functions with efficient work management. With the global world, the business
of automotive uses a wide set of activities in regional and local conditions of automotive
market. Toyota is a perfect example of its management in operating different approaches and
emphasizes productivity in different operations management (ICMR India, 2019). The key
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MANAGEMENT AND OPERATIONS 6
operations are the first step of managing things in any organisation like Toyota and it lead
with planning the structure of the organisation. To design the goods and services with latest
technology is the first and foremost step in research and development. Quality management
and capacity design can also be included in the process of structures in its key operations
activities. The localities play an important role in functioning of key operations with global
and regional strategies (School of Distance Education, 2018). Inventory management, supply
chain management are the effective ways to contribute its revised policies and helps to attain
growth structure and profitability of the business.
Responsibilities and Roles of Managers in Operations Functions
The key operations functions in Toyota organisation is the result of planning, organising and
directing the motive behind the functioning of the management structure. A manager plays an
significant role in operating functional activities and contributes to create and clear vision to
deliver organisation goods and services. The main responsibilities include asset management,
cost management and human resource management that establish the positive structure in
managing things in the organisation. Decision making is also the effective tool to enhance the
working in designing operating system that enhances the quality of goods and services (Open
Learning, 2018).
Design of goods and services -This address in designing of services and goods via
strategic decisions area in operations management with the advanced technology and
its quality. Research and development techniques are used by Toyota organisation to
ensure the advancement of products. A manager helps to design the best product
according to their customers and give importance to deal with technology.
Quality Management -To maximise qualities, the organisation is using its Toyota
production system and major factor in TPS is quality. The firm address its operations
management through continuous improvement and set various management
principles. This is in hands of managers as quality is the basic requirement of any
product so people can buy it with prevalence.
Location Strategy -Toyota uses implementation of its strategies in local, regional and
global markets and with the development of manufacturing plants in china, Thailand
and some other countries in Africa and Middle East.
Layout design and Strategy –The introduction application of lean manufacturing
principles and decisions area in organisation aim for maximum efficiency of
workflow. The layout design of the organisation satisfies all the standards of the
company and decisions from the dealers. The layout structure and manager is
responsible for the implementation of its strategy in the organisation.
Job design and Human resources -The manager in the organisation applies the TPS
for its decisions in the areas of operations management. Job design is the process of
designing the various structure of jobs and emphasizes the integrated in HR policies
and programs. There is applied approach of training programs that deals with TPS to
ensure lean manufacturing practices in the process.
Inventory Management and Scheduling -Toyota believe in levels of inventory through
just-in-time management approach and this aim to minimise inventory sizes and
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MANAGEMENT AND OPERATIONS 7
corresponding cost to functioning. The acceptance of lean principles of manufacturing
in scheduling tasks and minimise the operating costs of changes according to market
conditions.
Maintenance -Toyota develops a network with strategically located facilities in global
business. The major market is covered globally with business resilience and
flexibility. Thus, in this strategic decisions and business reach to ensure its stable and
optimal productivity.
So, these are the effective areas in operational functions that surely measures the main roles
and responsibilities in day to day activities of the internal structure of the organisation.
Toyota approaches for different strategic decisions in operations management and that clearly
shows the importance of efforts which are coordinating the streamlined operations
(LOMBARDO, 2017).
Key Operational Approaches of Toyota
The term operation management is the main responsibility that design and control the concept
of operations of a business with technology include production and facility design. The lower
level position of the management always deals in daily planning and deals with operations. In
operation management, the adaption of four strategies that helps to contribute in its
functioning is materials management, technology management, quality control and facilities
of design and its layout. The key elements in operation system include time money, raw
materials, skills and knowledge of the employees. The second element is the transformation
where components are made into finished products. Toyota uses different types of quality
management in order to achieve highest quality products and gain total quality principles to
constantly improve their high standards (Broadway, 2014).
External Business Environment Factors
Toyota is a leading manufacturing automotive industry in UK and establish in different parts
of the country for its operation and expansions. Though there is the commitment to
continuous innovation and quality and aims to achieve expectations with engaging the new
talent in better way. External factors are those that are beyond the control of management and
that are tight lending conditions, competition and its competitors are some of the factors that
directly affects the functioning of the manager and leaders. Toyota success depends upon the
ability to exploit opportunities and that responds to threats in automotive environment (Frue,
2019).
A political factor includes the policies from trading, international trading group,
political trends in whichever company is dealing. Toyota operates in many countries
and has to deal with wide ranges of products that have political interference by the
government authorities. In recruitment process of the company, there is the major
drawback that can resist changes in functioning a hiring the candidate from other
countries.
Economic factors includes framework of economic situations and the latest trends in
home country, taxation rules, unemployment rates, inflation rates, government
intervention, demand and supply effects in the organisation and disposable income of
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MANAGEMENT AND OPERATIONS 8
the customers. Toyota is facing many challenges due to improper structure and
prevailing conditions from economic market. The major changes are depend on the
HR changes of the policy in Toyota and recession period is also affected regards the
same.
Technological factors also have an impact on organisation effective management and
Toyota has promoted various technological advancement programs but the changes in
the outside factors has directly affects internal structure and that need to ne change in
inside structure of the organisation.
A legal factor also affects the functioning as these institutions that protect the
intellectual property and rights of the Toyota organisation. Data protection, copyright
patents, consumer protection and any changes in the discrimination law are to be
considering in Toyota legal environment (Haseeb, 2017).
Operational Management Efficiency
Operational efficiency can be improved by continuous practice of management structure and
develop such strategies that can influence managers and leaders to actively participate in the
functions. Toyota is the organisation where there is adoption of latest technology with
different leadership styles and approaches that sets the functions to deal in objectives of the
business and change according to the scenario of market conditions. Proper planning of the
goals, organising and directing with the implementation are the major goals to be achieved in
the management process.
Conclusions and Recommendations
Toyota is the organisation where there is implementation and adoption of new technology in
the organisation structure. Management and operations are interrelated activities of the
Toyota organisation and leaders and the managers’ plays functions in all its operating
activities and functions of the organisation. There is the direct relationship between how the
managers and leaders can improve the overall operations within the organisation. The
external business environment has also impact on the functioning of the organisation and that
affects the decision making by managers and leaders.
The major recommendation for Toyota future is to create the culture of quality and executive
experts should create more suggestions to improve those results in better performances.
Working with supply management has a relationship of efficient business model for
manufacturers that it should create the scenario where issues of single supplier affect many
attributes. Re-engage with public on decarbonisation of its road transport, provide driver
mobility solutions and communications of new test cycles are the future opportunities that
should took into action (Toyota Industry, 2017). There should be use of updated technology
for better working and in accordance to customers’ preview of financial year (Quality Digest,
2014). Utilising leading technologies helps to connect the supply chain and make it possible
for operators and manufacturers facilities. There should be leverage manufacturing of
intelligence that can be gathered information and possible to compare sites and identifies the
areas of improvement.
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MANAGEMENT AND OPERATIONS 9
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