Toyota Corporation: Business Operations and Quality Management

This report analyzes Toyota's business activities, focusing on key functions, processes, and quality management. It examines Toyota's adoption of the Input-Output transformation model, emphasizing the importance of operational efficiency and effectiveness. The report explores business process mapping, the role of quality gateways, and the application of MBO and SMART objectives in operational planning. It also delves into Total Quality Management (TQM) principles, risk assessment procedures, and health and safety regulations at Toyota Derby. The report provides recommendations for improvements and discusses the implications of proposed changes within the company, offering a comprehensive overview of Toyota's operational strategies and their impact on achieving business objectives.

MANAGING BUSINESS
ACTIVITIES TO ACHIEVE
RESULTS

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Key functions and processes of Toyota and identify the relationship between processes
and functions...............................................................................................................................1
1.2 Methodology used to map the processes on company’s objectives ....................................1
1.3 Evaluate the output of the process and purpose of quality gateway in operations
department of Toyota .................................................................................................................3
Task 2 .............................................................................................................................................5
2.1 Create an operation plan by applying MBO or Planning hierarchy for areas of
responsibility ..............................................................................................................................5
2.2 Write SMART objectives to operational plan to align people and other resources .............5
2.3 Implement appropriate systems to achieve objectives in the most efficient way to meet
quality standards .........................................................................................................................6
2.4 Define control and explain the methods used to monitor and control the production
process of Toyota .......................................................................................................................7
Task 3...............................................................................................................................................7
3.1 Explain the theory of Total Quality Management which creates a quality culture in Toyota
.....................................................................................................................................................7
3.2 Explain how Toyota promotes and implements Total Quality Management culture in its
business ......................................................................................................................................8
3.3 Recommend improvements which align Toyota’s objectives and goals .............................9
3.4 Report on the wider implications of proposed changes within Toyota Company ...............9
Task 4.............................................................................................................................................10
4.1 Carry out risk assessment procedure in Toyota .................................................................10
4.2 Demonstrate health and safety regulation and legislation applied at Toyota Derby ..........12
4.3 Review the health and safety policy and procedures of the chosen shopping centre in a
systematic manner to ensure they are effective and compliant with legislation.......................12
4.4 Covered in PPT...................................................................................................................13

Conclusion ....................................................................................................................................13
References .....................................................................................................................................14

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INTRODUCTION
Managing business activities is a critical task in which business adopts different methods
and techniques to carry out all the operations in effective way. Thus, in this context, the present
study has been made on Toyota Corporation which is a Japanese company and which delivers
commercial vehicles and accessories in different parts of the world. Thus, in this respect the
study has been made on analyzing different operations and tasks that are adopted by Toyota in
order to meet the aim and objectives of the business entity.
TASK 1
1.1 Key functions and processes of Toyota and identify the relationship between processes and
functions
It is being observed that Toyota has adopted Input-Output transformation model which
strengthen its operations department. Under this process, Operations management transfers input
such as labor, capital, land and equipment into outputs so that it can provide value to the
customers (Cavusgil and et.al., 2014). As per the model, Toyota chiefly focuses on
transformation system which determine how well the organization is producing vehicle products
that meets changing needs of customers. Thus, according to the process, Toyota Corporation is
required to emphasize on input capacity so that value of services can be enhanced. Thus, it
requires monitoring of all the tasks so that the areas of improvements can be found out directly.
The major functions of Toyota Corporation are Finance, Production and Marketing and
all such functions are being managed in such a way that it helps the business entity to reach
towards the defined aim and objectives. Resources are optimally allocated in all the activities so
that Toyota Corporation can manage all the processes effectively (Rosemann and vom Brocke,
2015). Similarly, production activities are aligned with organizational aim and objectives and
that ensures to uphold all quality standards. Further, at the time of marketing the business
services, Toyota ensures that accurate and relevant information is being delivered to the end
users.
1.2 Methodology used to map the processes on company’s objectives
Business process mapping include those activities which define the work of business
entity, defining the roles and responsibilities and standard of business process completion and
determining the success of business process. Process mapping act as an important tool to achieve
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efficiency in organisation. Process making give us insight into the whole process, helping in
coming with new idea to improve the overall process, it increases communication, among
employees and also provide with proper documentaion of process. It helps in identifying small
problem like delay, repitation etc. and decision making. It is economically suitable and also
quick to implement. This all help organisation to increase its efficiency and effectiveness. In
order to conduct all the business activities, it is essential for Toyota Corporation to develop a
process map which can show the integration of all the tasks with each other. This is also suitable
for the purpose of carrying out all the practices in effectual manner. In terms of process map,
Toyota is required to conduct all the activities according to the aim and objective and this also
ensures to meet organizational aims. Toyota has developed a process map for the purpose of
developing interrelationship between all the departments (Zikmund, Babin, Carr and Griffin,
2013).
For instance- finance department has direct association with marketing department
because according to the allotted budget, all the activities are being managed. Similarly, it can
also be said that process map aids Toyota Corporation to consider all the aspects that are quality
associated and that can enhance the success and profitability dimensions of the business entity
(Walter, Ritter, Coviello and Otte, 2015). Moreover, in this context it can be said that Toyota
needs to adopt suitable methodology so that all the activities can be carried out in suitable
manner. This shows integration of all the processes; henceforth that assists Toyota in managing
all operational aspects.
 Marketing planning is important of business process before, the department had to follow
a protocal:
 First marketing department, contact financial department of company and ask for the
budget of company.
 After getting the budget, the depatment start to plan there strategies in accordance to the
budget provided to them
 Later they have to go to higher executive for the approval of plan.
 If plan got accepted than they start planning for its implementation, if not then they have
come up with another plan.
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1.3 Evaluate the output of the process and purpose of quality gateway in operations department
of Toyota
Efficiency and Effectiveness are two things which every company thrive to achieve.
Efficiency is a comparison between what can be achieved and what is achieved with the given
resources. Effectiveness measure the extent in which company was able to achieve its goal and
solve its problems. This both are important for smoother running of organization and to increase
there productivity. The Toyota Corporation has been emphasizing on efficiency and
effectiveness factors so that all the operations can be carried out in effectual manner. Both the
dimensions help Toyota Corporation to focus more on enhancing quality standards so that
customer’s needs and demands can be accomplished (Cavusgil and et.al., 2014). Output of
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Illustration 1: Process Flow Chart
(source:Process Flowchart 2017)

process include those activities of process which are draft to produce specific output to meet the
demand of particular market or customer. It put emphasis on work rather than focusing on
product, including specific order of activities from beginning to end with defined inputs and
outputs. It aids Toyota Corporation to avoid all sorts of mistakes and errors in business activities
while producing more output of value to the business. In the same manner, Toyota is also
emphasizing on Key Performance Indicators, this indicator help to measure how effective a
company is in achieving its key objective. It helps the business to monitor and evaluate all the
practices that are performed in operations department of Toyota Corporation.
Key performance indicator play major role in measuring the output process and
increasing the overall efficiency and effectiveness of company. Major key indicators are
 Quality
 Speed
 Cost
 Flexibility
Monitoring the quality of performance, serviceability and technicality give company a
chance for regular improvement. It not only help company to increase its quality but also it
quantity. Managing time increase the speed of company, defined time to achieve the goal
increase its efficiency. Keeping the track of cost like manufacturing selling, service etc help
company to keep there revenue in check it also helps company to come up with strategies to
increase its cost produce. Flexibility in organization helps employee to come up with better ideas
and innovation. Toyota works on principle of "KAIZEN" where they support innovation wit
quality tis all indicators help company to achieve its main objective.
Similarly, this allows Toyota Corporation to adopt quality gateways so that value of
business processes can be ascertained. This is also aids the business entity to get proper
outcomes after performing all the quality associated activities (Fleischmann, Schmidt, Stary,
Obermeier, and Brger, 2014). This is yet another way through which business goal and
objectives can be attained. Moreover, with the help of quality gateway, appropriate standards are
being adopted in the realm of delivering quality services to customers and other business entities.
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TASK 2
2.1 Create an operation plan by applying MBO or Planning hierarchy for areas of responsibility
Toyota Corporation can apply the concept of MBO for the purpose of defining
operational efficiency through making specific plans and processes. Basically, Management by
Operation is the setting of objectives in the business which gives direction to the employees to
achieve the defined aim and objectives. This process needs to be adopted by Toyota so that
employees can comprehend their roles and responsibilities in the organization. Similarly, the
employees cab also get clear about what is expected out of them. Hence, employees in their own
way can contribute in organizational growth and success facets (Crane and Matten, 2016).
Similarly, the process also ensures to maintain effective communication among
employees which is yet another dimension through which positive environment can be facilitated
at Toyota. Moreover, in this context it can also be said that operational plan of Toyota has the
benchmark of following quality dimensions so that better services can be delivered to the clients
(Cavusgil and et.al., 2014). Moreover, in this context it can also be said that operational plan will
be communicated to strategic, operational and managerial department which holds more
importance in managing organizational activities.
2.2 Write SMART objectives to operational plan to align people and other resources
Smart objectives are those objectives which a business try to achieve . These objectives
are:
 specific
 measurable
 available at an acceptable cost
 Relevant
 time bound
According to the operational plan it is essential for Toyota to add quality methods in the
processes so that all the employees can conduct their roles and responsibilities effectually (Jeston
and Nelis, 2014). These SMART objectives help in operational plan by putting the focus of the
business on quality dimensions so that prominent services can be brought at market place and
can be provided to the end users. These objectives help to improve the quality of company. This
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SMART objectives will not only enhance profits and success facets; but also it will aid the
company to stabilize its position in competitive market place.
Moving on to realistic objectives, Toyota needs to align people according to the work
processes so that aim and objectives can be met accordingly. Using Smart objective in
operational plan will help organization to enhance the profitability aspects (Fleischmann,
Schmidt, Stary, Obermeier, and Brger, 2014). At the same time, this objective put emphasis
towards using resources in the most optimum manner so that organizational value of Toyota can
be enhanced subsequently. The objectives needs to be measured according to the financial terms
so that actual success value can be ascertained. Therefore, it is evident that Toyota must carry all
the business activities as per the defined aim and objectives.
SMART objectives of Toyota are as following:
 To reduce cost by 10% by introducing Just in Time managment system till the end of
2017.
 To increase sales revenues by 35% till end of 2018.
 To expand business in one more location till mid of 2018.
 To increase annual revenues by 30% till 2018.
 To enahnce brand awareness by using effective marketing tactics.
2.3 Implement appropriate systems to achieve objectives in the most efficient way to meet
quality standards
Toyota Corporation needs to be implement appropriate systems so that quality standards
can be met in all domains. The requirements of quality can be fulfilled through adopting
contemporary approaches such as Customer Relationship Management. Through this method,
proper communication can be developed with the customers and accordingly, their suggestions
can be acquired for betterment of business. Similarly, proper interaction with the end users can
be developed which is beneficial for customer retention as well (Tickle, Adebanjo and Mann,
2014). With the help of CRM, improvements can be facilitated in the business and accordingly
sustainability aspects increases.
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Another method which Toyota Corporation can adopt is Management Information
System which processes information in computer systems. This also supports in undertaking
better decisions for the organization (Rosemann and vom Brocke, 2015). This shall be adopted
in technological domain which is the core requirement of Toyota’s business. MIS is also an
academic discipline that could aid Toyota to align all the business aspects in one direction.
Henceforth, both the methods are useful in terms of meeting quality standards. However, the
entire process needs to be associated with organizational budgetary aspects that is being
determined by the organizational members of Toyota Corporation.
2.4 Define control and explain the methods used to monitor and control the production process
of Toyota
Controlling is a process that defines that Toyota is confined to something which is
restricted to business use. In this context, there types of controlling systems can be adopted such
as strategic control, operational control and management control. In operational plan four - step
process of control are taken in consideration:
 Establishing performance standards
 Measuring the actual performance
 Comparing the Performance to Standard
 Taking Corrective Action
According to organization objectives, Toyota Corporation has adopted this steps for the purpose
of evaluating the quality standards (Weiss, 2014). At the same time, it is also useful in terms of
identifying the areas that requires improvements and modifications. As per strategic control,
Toyota evaluates the strategy of business that is being formulated for managing organizational
operations.
At the same time, management control is also essential for Toyota Corporation so as to
analyze the contribution of strategies in achieving organizational aim and objectives (Walter,
Ritter, Coviello and Otte, 2015). Furthermore, company has also adopted the method of feed-
forward, concurrent and Feedback control. Feed forward help company to predict or forseee the
potential problem and come up with different method to solve it. Concurrent control focus on the
problem which may arise during the process. while Feedback control measure is taken after the
whole process is completed, also known as post action contro. Including this control in
operational control is essential because that helps Toyota Corporation to ascertain the degree of
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quality that is being included in the business operations, it also helps in identifying different
problem throughout the process and act to overcome it. Therefore, the methods of controls are
being utilized in Toyota for the purpose of managing production processes in the best manner.
TASK 3
3.1 Explain the theory of Total Quality Management which creates a quality culture in Toyota
Quality defines a specific set of standard that needs to be adopted by the business entity
for the purpose of enhancing the value of business products and services. With the help of
quality, Toyota can acquire several benefits and it can also create quality culture in the
organization. With the help of Total Quality Management, Toyota Corporation can increase the
quality of products and services and through this, standard value of business products can be
enhanced accordingly (Becker, Kugeler and Rosemann, 2013). Total Quality Management is the
philosophical approach that directs the organization to adopt the best quality products to meet
the interest of customers. Continuous Improvement is something which Toyota thrives on, this
concept put emphasis on continuous improvement of overall organization including performance
of employees ad organisation.
Total Quality of Management include different concepts such as employee involvement,
involving employees in different process of company help to crate a better environment and
better relationship among worker. With employees involvement in decision making and other
activities help company to come with innovative idea. Quality system is another concept which it
involves it put emphasis in improving the quality of performance and productivity by reducing
waste. Focus group help to achieve certain objectives, the goals and set of this group are
predefined and they put all there focus on that. Bench marking is strategy which help company
to achieve its goal at much faster speed by setting a particular goal or bench mark which every
employee as to achieve. Six sigma is another concept which help company to reduce the waste
especially during workload. This concept give quality management whole new dimension.
Nonetheless, with the help of TQM, quality culture can be created at workplace wherein
employees should be directed to consider the value of quality aspects. Through TQM, the
changes of minimizing risks and uncertainties are higher; hence this directly underpins
organizational services (Achtenhagen, Melin and Naldi, 2013). Furthermore, adopting quality
culture will help Toyota to maximize its market share in competitive market place. Quality
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