University Report: Performance Management and Control of Toyota

This report provides an analysis of Toyota's performance management and control systems. It begins with an executive summary that highlights Toyota's success as a global leader and the importance of its production system in achieving low-cost manufacturing and rapid product development. The report then delves into Toyota's performance management system, exploring factors like service consistency and the role of Six Sigma in enhancing production quality and efficiency. The report also discusses current and future challenges faced by Toyota, including global competition and the need for innovation. It concludes by emphasizing the correlation between performance management and the company's strategic goals, as well as the importance of continuous evaluation and improvement. The report references academic sources to support its findings, including the impact of visual performance management systems, brand image, and hybrid automotive systems.

Running Head: Performance Management and Control of Toyota
PERFORMANCE MANAGEMENT AND CONTROL OF TOYOTA
Name of the Student
Name of the University
Authors Note

1Performance Management and Control of Toyota
Executive Summary
Toyota production system helps in enhancing Toyota motor to become the largest company
globally. The production system allows manufacturing at a low cost and quick development of
new products. This report helps in explaining the different factors that are considered while
creating performance management and the critical role of effective quality and operation
management systems, determining the success and effectiveness of the organisation. With the
help of Performance Management system, it is easy to evaluate the goals, objectives of the
organization and enables to track the performance of its employee, department and
organization overall and can be assumed the future growth of the company.

2Performance Management and Control of Toyota
Table of Contents
Introduction................................................................................................................................3
Performance Management System of Toyota............................................................................3
Current and future challenges....................................................................................................5
Conclusion..................................................................................................................................6
Reference....................................................................................................................................7

3Performance Management and Control of Toyota
Introduction
An organizations performance and its effectiveness can be measured through
benchmark and the improvement system of the firm. Every company strives to render quality
and customer service satisfactory. This is achieved by meeting the customer requirements and
cost-effectively delivering quality services (Bellisario and Pavlov, 2018). The services
rendered by the suppliers are evaluated to improve the quality of the services that the
companies offer. Performance management is a continuous process rather than periodic
activity. This paper throws the light on the performance system of Toyota and explains
different factors that should be considered while creating a performance management (Bititci,
Cocca and Ates, 2016). Toyota is one of the leading companies known for providing
customers affordable and reliable services. Service consistency is analyzed on an ongoing
basis. Al-Futtaim Motors owns and manages the Toyota franchise through the strategically
located nationwide network of state-of-the-art showrooms, factories, components, batteries,
tyres and accessories operations across the UAE. It is done to evaluate the areas to be
operated on, without service costs.
Performance Management System of Toyota
Toyota set the best example of managing successful operations on a global scale.
Toyota Company is known for its Supreme Value. For people and Kaizen, in every aspect of
the business Toyota is a market leader. To enhance the quality of the product, new and
improved production strategies are introduced. Operation functions are an essential area
which helps the company to strengthen the quality of service and reduction in cost based
operations (Bititci, Cocca and Ates, 2016). The organization has introduced effective
strategies to enhance the quality of production activities. The total production system of

4Performance Management and Control of Toyota
Toyota is the outcome of Six Sigma associates the team, leading to a high-performance
culture of an organization. Performance management is correlated with the goals that the
company sets. The company would be able to look over the problems which are related with
the production and sales process through an evaluation of the performance management
system (Bellisario and Pavlov, 2018). For instance, the company intends to sell fuel-efficient
vehicles to its customer. The company needs to plan and introduce new business
enhancement method to improve the sale of the vehicles. The gap of time between the order
placed and the products are available to its customers is very fundamental analysis.
Introduction of changes in the technological aspect can incur a considerable expense. Thus
management needs to plan and introduce a better method for enhancing production activity
without increasing the cost of production.
The six sigma offers the best product of good quality, low price and lead the shortest
time by eliminating waste (Salah and Rahim 2018). The system of six sigma spreads over all
the worlds, which eventually began to gain variations and name; until 1970, Toyota does not
possess a name for its production strategy. The six sigma of Toyota includes:
 Toyota manages to cut the set times for handling procedure, training to an
employee to carry out their setups, even minutes and from months to hours.
 Sometimes, bulk production incurs an enormous cost, extensive inventories
and many more. Toyota uses the ideal method to produce minimum quantity
which makes short and inexpensive setups, and it is easy to manufacture
various products in smaller quantity. Through just-in-time Toyota manages to
minimize its inventory level
 Toyota Company allows its employees to form a team and provide training
and responsibilities to carry out specific tasks. Every organisation has a team
leader who helps the individual employee in assigning a specialized task.

5Performance Management and Control of Toyota
 Toyota Company treats its dealer as their partners and an integral part of the
production system. Dealer also helps in decreasing the time, inventories,
defects and breakdowns. They enhance to render their possible best outcome.
 The company enhances the total production system for the strategic decision
area in operations management.
 The company develops its network; strategically located to support its
international business. The company enjoys the HR network worldwide,
which enhances the support in business resilience and flexibility.
Current and future challenges
Innovation is the primary activity which Toyota involves in everything. They set out
to create outstanding standards for researchers and innovators; the innovation is done to hold
the position in the market. Toyota has to deal with a high degree of competition across the
globe. Since automotive industry in UAE is highly competitive, Toyota encounters a stiff
competition which includes the features, quality of the product, the development time of a
product, innovation, financing terms, customer service and many more (Mahroogi, and
Narayan, 2019). Toyota announces that it has been ranked No. 1 motor vehicle company in
the annual ranking of Fortune Magazine 2020 "World's Most Admired Companies" for the
sixth consecutive year, as it continues to expand its lead in the automotive industry in the
UAE (Joghee and Dube, 2016). Today, Toyota enjoys Middle East distribution network,
which comprises 14 distributors and meets the needs of the area's revitalized market growth.
Toyota is looking forward to continue delivering next-gen sustainable mobility solution to the
customers. Recently, in the UAE, the sale of Toyota vehicles is increasing at an increasing
rate like Toyota land cruiser enhanced the annual sale of seven per cent of total growth.
Whereas, the growing ranges of Toyota’s Hybrid Electric vehicle sale increased 29 per cent

6Performance Management and Control of Toyota
annually with the tremendous sale of Sedan at 1.5 per cent. The light commercial cars
enhanced a strong sale with an increasing rate of 6.5 per cent. Toyota expects to grow more
shortly, globally. Toyota offers the best innovative product to its customer. Despite having
various problems. Toyota’s hybrid electric; Corolla collaborated with UAE’s hybrid nation
establishing a new benchmark for clean motoring (Kiani, 2017). Toyota Company always
focuses on resolving the problems being faced, and it focuses on serving its customers at its
best possible way. Toyota invests a considerable amount in organizational capabilities and
people of the company. It strives to collect ideas all over from the office, the shop, the field.
Conclusion
It can be concluded that Management performance has to be correlated with the
goals that the company has set. The company would be able to look over the challenges
related with the process of production and sales through an evaluation of the performance
management system. Toyota uses its worldwide business reach to ensure stable and
optimal productivity. Whereas, the method of six sigma spreads over all the worlds, which
eventually began to gain variations and name until 1970’s Toyota does not possess a name
for its production strategy. Through Performance Management system, it is easy to
evaluate the goals, objectives of the organization and enables to track the performance of
its employee, department and organization overall.

7Performance Management and Control of Toyota
Reference
Bellisario, A. and Pavlov, A., 2018. Performance management practices in lean
manufacturing organizations: a systematic review of research evidence. Production
Planning & Control, 29(5), pp.367-385.
Bititci, U., Cocca, P. and Ates, A., 2016. Impact of visual performance management systems
on the performance management practices of organizations. International Journal of
Production Research, 54(6), pp.1571-1593.
Joghee, S. and Dube, A.R., 2016. Brand image & reflections: An empirical study in the UAE
with car buyers of UAE nationals. International Journal of Economics, Commerce
and Management, 4(3), pp.401-414.
Kiani, A., 2017. Electric Vehicle Market Penetration Impact on Greenhouse Gas Emissions
for Policy-Making: A Case Study of United Arab Emirates. energy, 1009(8), p.10.
Mahroogi, F.O. and Narayan, S., 2019. A recent review of hybrid automotive systems in Gulf
Corporation Council region. Proceedings of the Institution of Mechanical Engineers,
Part D: Journal of Automobile Engineering, 233(14), pp.3579-3587.
Naqbi, R.A.K., Yusoff, R.B.M. and Ismail, F.B., 2018. Supply Chain integration and
Sustainable supply chain performance: A case of Manufacturing firms from
UAE. International Journal of Engineering & Technology, 7(4.7), pp.424-429.
Mahroogi, F.O. and Narayan, S., 2019. A recent review of hybrid automotive systems in Gulf
Corporation Council region. Proceedings of the Institution of Mechanical Engineers,
Part D: Journal of Automobile Engineering, 233(14), pp.3579-3587.

8Performance Management and Control of Toyota
Salah, S. and Rahim, A., 2018. An Integrated Company-Wide Management System:
Combining Lean Six Sigma with Process Improvement. Springer.