An Analysis of Operations Management in Toyota: A Comprehensive Report

This report provides a comprehensive analysis of Toyota's operations management, detailing the implementation of various principles and strategies. It explores the company's approach to product and service design, quality assurance, process and capacity design, and location principles. The report also examines Toyota's use of job design, human resources, and supply chain management, as well as its inventory management and scheduling practices. Furthermore, it delves into Toyota's adoption of the Six Sigma methodology and its long-term philosophy, emphasizing continuous flow, waste reduction, and consistency. The report highlights the importance of building the right culture, standardizing tasks, and utilizing visual control, tested technology, leadership skills, and team building. It also discusses observations, reflection, and the company's approach to decision-making and implementation, including the lean principles and the Toyota production system. The report concludes with an overview of the company's continuous improvement plans, including Kaizen and the PDCA cycle, and analyzes the effectiveness of these plans based on various theories, such as increased productivity, employee morale, agility, and cost reduction.

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.