Toyota Motors: Analysis of Operations Management Practices Report

This report provides an overview of Toyota Motors' operations management, examining its history, market position, and competitive advantages. It delves into the company's production processes, including the Just-in-Time (JIT) inventory system and the concept of Jidoka. The report analyzes the distribution of Toyota's products, from raw materials to the end consumer, highlighting the roles of producers, wholesalers, and dealers. Furthermore, the report discusses the company's focus on environmental sustainability and its eco-friendly practices. The report concludes with recommendations for improvement, particularly concerning electronic waste and extended producer liability, emphasizing the critical role of operations management in the company's success.

Operation management of
Toyota motors

introduction
History- Kiichiro Toyoda established the company
Toyota motors in 1937 in Japan.
Products- Up to the 2017 Toyota was the second
largest automotive manufacturer company world
wide (JuryGualandrisa et al., 2015).
Local market share- Local market share is about
the 35%.
Customers-The main customers of the company
are general population.
Annual demand-Annual demand is approximately 2
million automotive products worldly.

Competitive advantages
The Toyota motors pay great attention towards the
innovative culture.
The particular company focus on research and
development of new ideas. The new research and
ideas are helpful to attract the customers and
stand with their competitors.
Now a days the company manufactures the vehicle
which are environment friendly. In the today’s time
whole world is focusing on the environment and
trying to reduce the global warming. Environment
friendly technology is a big advantage for Toyota.

Production process principles
Overburde
n inconsisten
cy waste
Continuous improvement
• Challenge
• Kaizen
• Genchi
Respect for people
• Respect
• Teamwork

Inventory
Just in time(JIT) is the Toyota motors’
inventory policy which sometimes is also
called as Toyota production system(TPS).
The company does not believe any
preservation. Only up to the mark raw
material is available there.
The company pay great attention towards the
machinery parts. The company manufacture
new parts only after receiving the new order.

Good finishing of automobiles are also kept in
mind by the Toyota motors company. Overall
structure, colour and other factors of the
products are considered carefully
(FotiosPetropoulos et al., 2018).
The company manages inventory by just in
time and jidoka. JIT already mentioned above
and in jidoka fastly notifying the abnormality
and stop the work and reduces the waste
product.

Distribution of the products of the Toyota is
done in four steps that is producer,
wholesaler, dealer, customers.
Producer- raw material like metal, rubber,
glass, fabric, etc. are purchased from a
company to manufacture the product.
Wholesaler has all information about the
product to provide to the dealer and
customer.

Dealers can also classified in different ways
such as pricing strategies, range of services,
location.
The last step is the customer. Customer can
buy the vehicle from the wholesaler or the
dealer or the company itself.
To ensure the sustainability company use the
eco friendly material and pays great attention
towards mileage

Operation management lesson
It is leant from this project that operation
management is critical factor to survive in
competitive world. No business can thrive
without operation management. Operation
management covers all aspect of an organization.
Recommendation: Though the company has paid
attention on environmental effects but still the
company generates lots of electronics waste.
Moreover extended producer liability is not taken
care off. Company should work in this regard.

References
FotiosPetropoulos, NikolaosKourentzes,
KonstantinosNikolopoulos & EnnoSiemsend,
2018. Judgmental selection of forecasting
models. Journal of Operations Management,
60(2), pp.34-46.
JuryGualandrisa, D.Klassenb, R.,
StephanVachonb & MatteoKalchschmidtc,
2015. Sustainable evaluation and verification in
supply chains: Aligning and leveraging
accountability to stakeholders. Journal of
Operations Management, 38(1), pp.1-13.