Toyota Motor Corporation: Operations Management Issues and Strategies

This report provides a detailed analysis of Toyota's operational management, focusing on the challenges and strategies employed by the company. It explores various technical issues faced by Toyota, such as meeting market demands and upgrading technological support, and examines how the company addresses these problems. The report delves into the Lean Transformation Model, outlining its elements and how Toyota utilizes it to overcome issues. It also covers transformational resources, operational objectives, and the different operational processes used in manufacturing, including batching and jobbing. Furthermore, the report discusses time management techniques like the 4D's and performance metrics like the 4V's. The report highlights Toyota's focus on human resource development, innovation, and diversity, emphasizing their importance in achieving operational excellence and market success. The report provides an overview of the company's strategies, including the 4D's and 4V's, and highlights its impact on the company's market value.

Management of Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Management of operations refers to the management of the work which needs to be
carried out in the development of the strategy which manages the safe working operations.
Management refers to the area of the designing and controlling the work which needs to be
improvised for the process of production. Redesigning and improvising refers to the
improvement which needs to be changed with the production process. It refers to the profit
generation by improving the efficiency by converting materials and labours into goods and
services which can help the organization with better achieveability. It is the right use of staff and
the resources available with the help of technology to maximise the profit and help in growth and
development of the company.
Toyota motor corporation is a Japanese multinational car manufacturing company,
whose headquarter is in Toyota city, Aichi, Japan. It consist of 364445 workers worldwide. It is
the sixth largest company by revenue. It is one of the largest automotive manufacturer. It was the
first organization which produces more than 10 Million vehicles per year. Toyota was the largest
company in Japan by market capitalization and by revenue.
This study includes issues generated in the organization context, solution to the problems
which can be faced and altered, responses and issues how the organisation tackles, ways of
improvements.
Main Body
At Toyota there are many technical issues which arises in the working of the Toyota.
They are unable to meet up the market demands as per the need of the market. Toyota are
technically backward as they are not aware of the work which is carried out in the development
of the firm, technical arrangement are not met which creates a delay in the working scenario of
the Toyota which affect the major functioning of the firm. Toyota needs to upgrade the technical
support which can help the workers with the development of the advanced technology(Heizer,
Render and Munson, 2016). This is the result of the unsafe engineering which occurs due to the
mistakes in designing and prototype. With the issues of engineering there are many problems
faced by the hybrid cars. There was a technical issues at the working of the cars which needs to
be considered as a threat to the firm. As there was an issue at the technical up-gradation of the
support. A technicality needs to be improved which is the major issues at the Toyota which was
a threat to the firm. Toyota needs to develop many of its technical firm which needs to be
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addressed to make the Toyota to upgrade its technical issues. Many of technicians needs to be
upgraded by providing various facilities and training which needs to be carried out for the better
strategic planning and management of the work(Akalin, Huang and Willems, 2016).
Lean Transformation Model:
Lean transformation model is basically designed for introducing transformation in
organization with maximizing producing products for customers and eliminating waste by
identifying, removing and optimizing. Toyota follows lean transformation model to overcome
technical issues. This model is based on eight elements. Responses of Toyota-
Evaluation is first element of lean transformation model. on the basis of this element
Toyota firstly find out problem and identify the right solution which can assist to remove this
technological issue. organization starts changes at large scale in technology.
Initiation phase is second step where before starting any changes in technology
organization starts to secures finding which can be necessary for training and tools. Organization
also deals such kind of dealer who supports company by investing shares in company in every
situation. Toyota sets up budget then invest some funds in training for employees management
where organizes training for staff so that they become skilled in company. In this training trainer
makes them understand about tools and tell them how to use these tools.
Toyota follows single service where organization receive raw material and convert into
desirable product (ong and Huckman, 2018). During these manufacturing process organization
addresses concept of flow so that team enables to continuous development in technology and
their products.
Analysis and optimization is fifth steps of this model where Toyota company
accomplishes above steps then analyses business profitability through company GDP rate and
analyses performance of employees during process. Organization also gives suggestion to staff
for improvement product quality.
After analysing above steps company starts flow multiple connected services where
Toyota expands values of customer by providing desirable products of customers. Organization
also focuses on product delivery so that customers gets durable product timely (Podgórski,
2015). Thus, company enables to make positive image in market.
When Toyota gets place on specific market then company manages whole portfolio of
procedure individually. Through such kind transparency in steps leads values in market or
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customers mind. In the basis of portfolio workers complete their task in well formed manner.
Continuous improving processes & services is a final step of lean model where Toyota focuses
more and follows continuous improvement strategy. In the basis of this strategy to do
improvement in process and their competition market, so that enables to take competitive
advantage in market.
Transformational resources:
Operational performance
Manger and practitioners gets issues then manager to do changes in his operations for staff.
Manger to do changes in policies where manager organizes training for employees so-that
employees understands and raises their skills at workplace. Management gives values to worker
by appreciating for their works. Manager invites them in decision making and allows them to
share their ideas and listen them carefully (Kenyon, Meixell and Westfall, 2016S). It leads
effectiveness in labour performance.
Operational objectives are operational cost, product quality and reliability, coping with demand
change, flexibility and new production introduction speed. Operational management takes cares
of theses objective in Toyota company. Main goal of organization is to provide good quality
product and high speed in car product. Toyota company influences better quality in car material.
Workers of Toyota company utilizes high quality material to manufactures cars. Workers also
focuses on car speed so that company enables to meet customer requirement. Through good
quality of product organization enables to achieve profit in company and loyalty shows by
customers. Thus manager focuses on product quality and speed. Operational management
focuses on operational process.
Operational process are manufacturing process which are different types project, jobbing,
batch, line and continuous.
Batching process is most important in manufacturing process where company manufactures
periodic batches of the car. Organization also makes variety of products in batch so that number
customer can tackle by company.
Jobbing process refers manufacture products in small batches. Toyota utilizes this process
operation where company manufactures small batches product on the basis of specific customers
demands. Such kind product needs different process in each step. Organization focuses on
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varieties of product so that enables to product customization. Toyota also applies different layout
for manufacturing.
Process layout refers the facility arrangement where operation of function are completed in
group. Main goal of this process is to provide better services which involves in variety of process
requirement.
Cellular layout refers cellular manufacturing process where machine arranges on the basis of
requirement in a similar cell and applies similar process to manufacture same product. Workers
of Toyota works in such kind cell so that they enables to produces similar product in batch. Such
kind cells is automated where flexible manufacturing system operates cells and transfers
computer parts to workers according to requirement. Thus computer operated cell assists workers
to manufactures product layout and maintains batch production.
Product layout is important to generated large volume of car in minimum time. Through
product layout, Toyota enables to reduce turnover of salaries and gains high volume products.
Toyota emerges high degree of workers and equipment application. Thus organization. uses
above strategy to overcome new technology issues. To applies all strategy manager motivate
employee's through providing friendly atmosphere to them, so they easily can communicate to
any worker or manger if they an affix in problem at workplace.
Thus manger enables to establish good relation with staff member's. Manager provides
health insurance and retirement policies to staff member. It assists worker or employees to stay
in company for long time. Theses policies assures employee and employee's family for job.
Such kind changes accomplishes by manager to leads productivity of worker at workplace so that
company gets product on time.
Toyota focus on human resource development because HR department leads sustainable
growth in company. Toyota offers rewards to manger so they give profitable strategy in
organization company enables to achieve customer values. Manger always focuses to achieve
company's profitability. Company gives facilities to HR and conducts training for HR so that
management leads profitability in company (Podgórski, 2015). Toyota focuses on innovation and
improvement in their existing product where organisation promotes reformation in car. Manger
invests save funds on R&D department so that company gets improvement in their existing
product and also focuses customers needs regarding product. Company enables to meets
customer demands and thus company can raise values of customers. Manger also invest some
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funds on tooling department so number of customer enables to gives more productivity at
workplace in minimum time and company produces various product in specific quality which
meets customer needs. Manger provides facilitative atmosphere to customer so they enables to
work in flow at workplace. Toyota focuses on diversity where company promotes female to
p[participate in the workplace. This step raises positive value for company in the market and
assists female workers to balance work-life at workplace, thus, manger assists to motivate them
at workplace.
4D's
4D's is a time management theory which can be used to determine the techniques to
improvise time management in the organization. This strategy is a time management technique
which aims to do work based to improvising the strategy to improve time management. It
consists of 4D which are-discover, design, develop, deployment. Which broadly means
Discover aims to develop the growth of the organization with the need of the
development of the firm to achieve particular set target. It is the discovery of the particular
intervention objectives are set which are required to achieve with time. Deadlines are set.
Designing is the process which is used to generate the strategic approach to the time
management procedures. Objectives are set and the time needed are set as per the deadline time
management strategies are set and cycle of events are generated. Identification of of errors and
dependencies which generates the time delay actions are set.
Development of the inventories and the innovation which is carried out activities
developed. The record is maintained by the Toyota which can be used to evaluate the data and
keeps a track to complete the work on time.
Deployment is the test of quality and services offered by Toyota which helps in the feedback
responses which helps in maintaining the outcomes of the objectives set and standards to bring
Toyota at heights of achievements.
Toyota uses this strategy which helps them to achieve the targets and increase the market
value which increases the record of the firm. And help the firm in time management strategies.
4V's
4V's refers to the volume, variety veracity and velocity. Which are used to increase the
performance of the organisation which is required to the development of the organization. These
4 V's represent the increase in effectiveness of the organization.
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Toyota used volume for the generations and capturing of large market by the aims and objectives
to build a large market. From the annual report the data generated reflects that in year 2012
Toyota had a largest market they sold almost 1 million pieces of cars. Their development is
based on the bulk process which aims for the development of the organization. A large bulk of
operations are carried out which gives the bulk production.
Literature review
As per the view of Sharma and Shah, (2016) Lean transformation model is that model
which assists to change in design of product with maximizing productivity of products for
customer and main goal to remove waste so that organization enables to achieve values of
customers. Toyota faces new technology innovation issues in company. To overcome of this
issues Toyota follows lean transformation model where organization implements each steps in
company, so that company overcome this technology issues and enables to achieve competitive
advantage in market. on the basis of lean model firstly Toyota finds out problem, then makes
plan to how to overcome if this issues. Company finds such kind investors who invests their
money in company and retain for long time in every situation, then company sets budget for
company and divided according to requirement. Organization also saves funds for training and
tools which is needy for staff. Staffs needs training because technology issue was new for them,
In that state Toyota hires trainer who make them understand how to use tools and how to do
improvement in cars. Company invests money on tools so that customers leads more productivity
in products, Toyota provides a concept of process to workers. on the basis of that concept
product receives, transform into desirable product which meets customer needs. In this flow
services concept employees can do improvement up-to date. on the basis of result company
Analyses products demand through customers and optimises product quality. Toyota establishes
governing models by preparing portfolio of individual process, after establishing Toyota applies
continuous improving strategy where focuses on continuous improvement in product and their
varieties in car.
As per the view of Bicheno and Holweg, (2016) To overcome of technology issues needs
operational performance where manger or practitioners gives response on this issues. Manger
utilizes strategy to motivate employees to work fluently with skilfully. Manager offers some
policies to workers like health insurance policies where worker can take advantage if any injuries
occur during working to employers, then company will pay behalf of worker. Such kind policies
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makes reliable to worker and their families. It leads stability of employees at workplace.
Manager facilitative atmosphere at workplace like light availability, water availability, sitting
places and tools etc. it raises productivity of workers at workplace. Toyota improves human
resource management where organises training department for HR so that they leads sustainable
growth plans in company. Manger focuses on product diversity so that company enables to
attract number customer. Continuous improvement in car design leads effectiveness in market.
Through this effectiveness, organization easily accomplish company's objectives. Due to
continuous changes leads competitive advantage in business market.
Recommendation
 On the basis above issues Toyota company should provide effective training to their
workers. Trainer should be skilful and his communication should be impressive so
workers easily get him and enables to raise their skills in practices.
 Toyota should be trading in global market so company can enable to expand business in
well formed.
 Company should focus on R&D department then organization can enables to
manufacturing wide variety products and can meets customer's values.
 Toyota should establishes good relation with workers by giving respect and provides
opportunity to share their ideas and view. It will assist to gain growth in company
through customer supports at workplace.
 If company provides some policies like job security and retirement policies it will
encourage workers to give the best performance at workplace. If company provides place
safety and child care services to female workers, it will raise involvement of more and
more female worker at workplace.
 If company keeps some technical experts who gives innovative ideas time to time it will
assist workers to do changes in their product and their services so that customers meets
their needs.
 If Toyota starts to take feedbacks from employees about car performance while driving .
It will assist organization to do improvement in their cars. In that state, company can
meets customer's needs and can establish position in market.
 Toyota should follow six sigma model.
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CONCLUSION
This study reflects the ways of improving firm which help in the development of the firm.
This study addresses the issues faced by the organisational and the ways to overcome those
problems and finding the ways of alter the problems.
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REFERENCES
Books and Journals
Heizer, J., Render, B. and Munson, C., 2016. Operations management. Pearson Australia Pty
Limited.
Akalin, G.I., Huang, Z. and Willems, J.R., 2016. Is Supply Chain Management Replacing
Operations Management in the Business Core Curriculum. Operations and Supply
Chain Management: An International Journal, 9(2), pp.119-130.
Bicheno, J. and Holweg, M., 2016. The lean toolbox: A handbook for lean transformation.
Buckingham: Picsie Books.
Sharma, S. and Shah, B., 2016. Towards lean warehouse: transformation and assessment using
RTD and ANP.International Journal of Productivity and Performance
Management, 65(4), pp.571-599.
Podgórski, D., 2015. Measuring operational performance of OSH management system–A
demonstration of AHP-based selection of leading key performance indicators. Safety
science, 73, pp.146-166.
Kenyon, G.N., Meixell, M.J. and Westfall, P.H., 2016. Production outsourcing and operational
performance: An empirical study using secondary data. International Journal of
Production Economics, 171, pp.336-349.
Song, H. and Huckman, R.S., 2018. Cohort turnover and operational performance: The july
phenomenon in teaching hospitals. Available at SSRN 3037753.
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