Operations Management Implementation Analysis: Toyota's Approach - OPM

This report provides a comprehensive analysis of operations management principles as implemented by Toyota, a leading automotive company. It begins by defining operations and operations management, highlighting key business functions such as product design, forecasting, and marketing. The report then delves into the historical context of operations management, referencing Frederick Winslow Taylor's principles of scientific management and the evolution of current principles like Lean Manufacturing, Flexible Specialization, Mass Customization, and Agile Manufacturing. A significant portion of the report is dedicated to applying these principles to Toyota's case, emphasizing Lean Manufacturing, Six Sigma, Jidoka, and Just-in-Time systems. The report compares and contrasts Six Sigma and Lean Manufacturing, ultimately concluding with a summary of the importance of operations management in achieving organizational goals. The report uses Heizer, Render, and Munson's Operations Management and other research papers as references.

Implementation of Operations
Management at Toyota
UNIT NAME: OPM [Unit 16]
YOUR NAME
ID NUMBER
ASSESSOR
DATE OF PRESENTATION

Implementation of Operations
Management at Toyota
UNIT NAME: OPM [Unit 16]
YOUR NAME
ID NUMBER
ASSESSOR
DATE OF PRESENTATION

Introduction: Operations &
Operations Management
Define Operations
Operations can be define as a function of organization which affect overall functioning of company.
It is a department which is responsible for effective and efficient working of organization as well
as achieving desired objectives.
Define Operations Management
Operations management refers to a process of company which consist of planning, organization,
management, controlling as well as supervising the manufacturing as well as production
department of an organization

Operations & Operations
Management
Main Business Functions
Operation management is responsible for conducting different functions and activities. These functions helps
in developing and designing right products as well as achieving desired objectives of the company. Key
functions of operation management is mention below.
Developing strategies
Product design
Forecasting
Finance
Marketing
Operations

Historical ideas in Operations
Management
Historical idea in operation management
Frederick Winslow Taylor is has published the Principles of Scientific Management in 1909. his
motive of introducing these principles was to optimize as well as simplify jobs in order to
increase productivity of company.
 Science, Not Rule of Thumb
 Harmony, Not discord
 Cooperation, Not Individualism
 Development of each and every person

Current Operations Management
Principles
Lean Manufacturing: This is a methodology of operation management that focuses on minimizing
waste from manufacturing process. Lean manufacturing is very helpful in enhancing productivity as
well as profitability of organisation. This can be consider as a principles of operation management
which helps in reduction of waste material from production process.

Seven forms of waste
Waste refers to all those elements which does not have any value for customers. There are majorly
seven type of waste for which customers are not ready to pay.
Transport
Inventory
Motion
Waiting
Over-production
Over process
Defects

Current Operations Management
Principles
Flexible Specialization
Flexible specialization refers to a business strategies that helps company in making it more
competitive as compare to others. An organization have large numbers of employees within
different skill set. Company also use many machines and equipment helps in performing many
tasks. Flexible specialization is a model of production process which is based on development of
products between specialized producers. In this organization is able to gain success or specialization
in its business process by using new and innovative methods.

Current Operations Management
Principles
Mass Customization
It can be consider as a process of developing goods for large market area. Mass customization
includes delivering wide market area as per needs and wants of customers. It is a techniques of
marketing as well as manufacturing that combines flexibility as well as personalization. In this
products are developed in mass production as per the changing or diverse needs of customers.

Current Operations Management
Principles
Agile Manufacturing
Agile manufacturing is an innovative ways that is developed to respond more quickly to needs of
customers as well as identify market changes. This is an important process which is helpful in
controlling quality of products as well as manufacturing cost. Agile manufacturing is a methodology
that is developed for to emphasize the significance of responding to clients and customers
requirement. This tool is useful identifying needs and wants of customer in time as well as taking
controlling measures in order to handle manufacturing process.

Operations Management applied
to Case
Introduction to Toyota
Toyota is a Japanese multinational company which is manufacturing products and services in
automotive sector. This company was established in August 1937 and founder of Toyota Motor was
Kiichiro Toyoda. This is one of the leading automotive company in the world and it is providing its
products and services to different parts of the world. Headquarter of Toyota Motor is located in
Toyota City of Japan. This company is manufacturing products which includes Auto mobiles, luxury
vehicles, engines as well as commercial vehicles.

Operations Management applied
to Case
Lean manufacturing is a process for reducing waste from manufacturing process. This system is also known as
Toyota Production System as it was origin from this company. This company has mastered the techniques
which helps in reducing the faults in products in order to provide better products to customers. Respective
company includes two major process that is Jidoka and Just in time.