Business Operations and Services: Toyota's Improvement Strategy Report

This report delves into Toyota's business operations and management, exploring the company's operational improvement strategies. It begins with an introduction to operation management and its key components, such as process, staffing, location, and technology. The main body of the report...Read More

Business Operations
and Services

Table of Contents
1.0
1.0 INTRODUCTION.....................................................................................................................1
2.0 MAIN BODY ............................................................................................................................1
2.1 Explaining and introduce a company wide operations' improvement strategy.....................1
2.2 Advising on the operational strategies that ford and GM can implement to gain market
share from Toyota.......................................................................................................................8
3.0 CONCLUSION........................................................................................................................12
4.0 REFERENCES .......................................................................................................................13

1.0 INTRODUCTION
Business operations and management is relied on the business type, industry, size and so
on overall systems. Mostly the operation management system consists some of the major
departments such as process, staffing, location and Equipment or technology. Operation
management is must be very competitive and productivity and efficiency for getting the business
objectives in productivity manner. Present study has been based on operation management of
Toyota where the study explains the brief about the company wide operations improvement
strategy along with the tools and techniques. Besides that, report will also outline the operational
strategies that ford, and GM can implement to gain market share from Toyota. Overall, present
aim of the research is to explore the operation management services and how it helps companies
to regain the company opportunities.
2.0 MAIN BODY
2.1 Explaining and introduce a company wide operations' improvement strategy.
Operation management deals with standards a business sets to improve and monitored the
way it produces goods and services (Aitken and et.al., 2016). This is the responsibility of the
operation management that to deliver the highly equipped and effective management tools and
techniques. To improve this work stream, operation manager work in tandem with department
heads to come up with sound, easy to implement strategies. In order to regain the market and
overcome from the downshift, Toyota should require to adopts some of the operational
improvement strategy.
Overview of Toyota
Toyota caught in a downshift which impact the company profit and market share. It has
been a big challenge for the company to capitalise the market. It has been analysed that Toyota
has weak management. In order to overcome from such issues it has been suggested to company
that they should investing on the “Five whys” practice. This practices for decades has allowed
Toyota to respond to such issues and challenges in more specific manner.
Toyota Improvement strategy
Quality : Quality is the foremost concern of manufacturer industry which has to be more
specific and as per the set standards.
Speed : Speed of manufacturing process is also very much necessary to maintained the deadline
of the product.
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Dependability : This operational performance objective measures how dependable the company
is when it comes to timely delivery of products.
Flexibility : Flexibility in Planning is very helpful to Toyota in terms of adaptability of plan that
better facilitates development and growth in Toyota.
Cost : Meet the standard and set cost of the business can help Toyota to build up the high
management effective performance. Toyota should need to focus on quality rather cost.
Tools and techniques implied by the company
The main reason behind acquiring the improvement strategy is to leverage the operation
management working or activities. These strategies are useful to tackle the whole supply chain or
process can be difficult and put a great deal of strain on the operations or lean team. It gains the
operational activities and very useful to gain customer satisfaction with the range, service and
productivity quality or defects. Improving the right people is another beneficial term that helps
Toyota to bring the new management advancement goals and techniques. The right choice and
balance of people involves in the process improvement initiatives greater engagement from the
workforce and the motivation to sustain the results achieved later.
Improvement strategy for Toyota
Logistics Improvement
Logistics improvement is relatable to deliver the effective goods and services along with
the tools and business partners it relies on to reduce the risk of loss and obsolescence during
material conveyance (Andersson and Bellgran, 2015). Charting proper logistical strategy
enables the firms to make a good on its promises of prompt delivery and high-quality products.
In order to improve logistics improvement (Strategies for operation Management Improvement.
2017). For that, some of the following tools and techniques helps such as Mobile application
software tools used in international logistics tools to help them carry out their daily businesses
with ease and deliver the best for their customers of Toyota. Scandit is one of the leading mobile
logistic tools used in international supply chain management. This scanning bar code facilities
helps inventory manager to easily keep the records of all managerial outcomes.
Another tool that can adopted by the Toyota to bring the new changes in logistics
management is ever note online mobile application. This application also known as Eduzaurus
which has been rated one of the best tools for leveraging logistics in order to organize the
important data or information.
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Personnel Improvement
In order to perform the effective and productive work goals, Toyota should need to invest
on the personnel development in the day to day activity (Boone and et.al., 2018). A personnel
development plan must play a most crucial and important role within the operation department to
get the best goals and services to achieve the leading challenging task. By having productive
technical and operational team, Toyota would be increasing the high goals and services. For that
Toyota requires to improves the corporate work culture and initiating some development
programs within the company atmosphere.
However, Personnel improvement is the leading system and way to enhance the
performance of personnel management at Toyota. It helps to define the leading and managerial
task to improvise the effective management task which also helps to build up the new
management and effective management performance of an individual employees towards the
great achievements. Toyota needs to motivate employees and make them more competitive and
productive towards their aims and objectives (Kang and et.al., 2016). By adopting the key
performance indicators and metric which proves the best tool or technique for personnel
development. This helps to provides the measure how well companies, business units and
projects are performing is relation to their strategic goals and objectives. Some of the tools and
techniques through Operation manager can upgrade the personnel development such as
performance appraisals is the first techniques that helps Toyota operation management to
improves the new set goals and further achievements. Performance appraisals KPIs is probably
the most frequent used technique which is powerful for aligning the goals of individual with the
strategic aims of the organization.
360-degree performance review is defined how people performing in front of the others.
This approach and style measure the individual performance on the basis of each aspects such as
get feedback from employees, peers, customers, reports, supervisors etc. so overall techniques
can improvise the employee’s productivity in Toyota. So overall this output is significant for the
company to increases the sales volume across the world (Lan and et.al., 2016).
Financial Strategies for improvement
By enhancing the financial strategies can improve operation management and the
procedure and cost monitoring techniques for better development growth. In operation system
the importance of financial tools and techniques are high and managing. This can be improved
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by the comparative statements with the comparison of different items of the profit and loss
account and balance sheet of two or more periods. Comparative income statement is another
financial tool that helps to inform the better opportunity and targets. By the help of outcomes and
goals the manager would have been found out the better objectives and goals.
Common size statements of financial information are followed for making the common
size statements. Besides, the rupee value of financial statement contents is not taken into
consideration.
By the help of trend analysis tool Toyota can take better or productive steps towards the
and find out the research outcomes. This tool briefly explains what exactly business position
weather it is upward or downward.
Focus on the Quality improvement
As compare to another brand such as Ford and GM, BMW, Volkswagen. All such big
brands are the biggest competitors of the Toyota. Such as Ford and GM navigate the industry
landscape high with the help of its high-quality management and focus on the customer
requirements (Martínez-Jurado and Moyano-Fuentes, 2018). In the context of Toyota company,
it has been given the wide image as an irony which gained the significant market share in the
past years at the expense of its American competitors by sold out the 9 million vehicles on the
instant demand. This is the example or the process through company covers its whole loss from
last short period of time. So, it has been seen and observed that how quality is plays a role in the
fulfilment of aims and objectives. This will help to recontinue the work outcomes and bring the
new outcomes.
Improve Forecasting improvement
Whether selling products and services, purchasing and managing inventory controlling a
supply chain or properly staffing any company tries to forecast demand and capability. Besides,
that many companies are poor at forecasting, however meaning that they are either unprepared to
meet market demand or they waste money and activity. This is another way through Toyota can
take the higher opportunity to deliver the good outcomes in the future. By the help of using
consistent model it helps to believes non one model of forecasting that works best for every
company (Nicholas, 2015). In other words, forecast can be measure by the Toyota by upbringing
the opportunity and task to build up the effective learning outcomes and goals. By the help of
current demand and customer preference can help to analyse the forecast demand in future.
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By managing from within the forecast accuracy or with the help of forecast application or
solution it helps to adding elements or supplementing with additional dimensions and goals.
Utilize the sequential flow pattern in the process
This is another way to improvise the effective learning opportunity and leading goal to
analyse the inventory control system. His technique or strategy helps to track the overall activity
and utilise the U-Shaped design to easily access the overall activity plan goals. This process or
strategy can also be very effective and prominent in terms of better communication among
workers.
Implement a predictable process
This improvement strategy of Operation management system as exactly followed on the
same pattern that it was predefine. This would be more effective and given the best process or
managing the positive effective environment. This system will helpful to train the better
advantage and goals in order to manager the interdisciplinary system in Toyota.
Lean Operations
Lean operation is the most common and productive operation improvement strategy that
can be more helpful to measure the quality levels in car assembly plants productively work or
not. It helps to maintain the balance between quality and productivity (Piccinini and et.al., 2015).
This strategy can easily helpful to meet the customer expectation and they’re their quality
measures by eliminating the waste from the production.
Eliminate the waste is the first foremost rule in lean operation by the whole system will
be going smoothly. Waste activities refers to those process which does not adding any value to
the overall system. Such as Duplication, Delay, Unnecessary movements, unclear and vogue
communication, Errors etc. All these activities can be removed by the lean management systems
through continuous improvement over time. This improvement strategy helpful to measure the
activity goals and objectives to define better work at Toyota.
Push production system is the effective approach that helps to pushes work on to
machines which is then passed through to the next work centre. Another technique is total
preventive maintenance (TPM) this system or technique helps to reduce the time and helps to
ensure the proper work and goals (Reim, Parida and Örtqvist, 2015). TPM helps to regular
maintenance activities and make the work clear. This approach also helps to adopt the prevention
techniques due to deterioration, but before a breakdown has occurred.
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ERP Enterprise Resource Planning
This is the another most prominent operation improvement strategy that aims is to
manage the large amount of data in an organisation. This improvement strategy such as ERP
helps Toyota to integrate the sales, order, manufacturing and inventory process in order to ensure
the customer service activities. Besides that, it continuously helps to provide the effective
technologies such as software, databases, procedures and job descriptions for organisation wide
processes.
This ERP system enable to provides a cross functional process views of the organisations.
ERP also includes the set of inherent processes for all activities. The advantage of this system is
they stores the whole information or data in a centralized database.
Manufacturing Requirements Planning (MRP)
MRP technique or system for component materials needed to produce end items. Overall,
these components have what is called dependent demand. This improvement strategy can help
Toyota to analyse before the system that what are the requirement are needed for car
manufacturing process (Robinson, 2017). The major components involved in the MRP is master
production schedule, bill of material and inventory status file.
Lean Operations
Lean manufacturing technique of operation management would help Toyota to regain its
market share. Lean manufacturing is the method or the concept which base on philosophies and
tool to minimize production. Different techniques of lean manufacturing allowing Toyota to fit
lean manufacturing techniques into its own distinct production process. Manager at Toyota
reduced the defects from the operations, reduce the possibilities of of overproduction, and better
utilised the resources all such tools and techniques better helps Toyota to regain its market share
profit. This improvement strategy can be the most productive strategy for Toyota success.
Just in Time
In order to improve operation management in Toyota , company can also implement the
just in time approach of operational management in order to regain the market position. This
improvement strategy better focus on inventory system which co-ordinate raw material orders
from suppliers with production schedules. This strategy can help to address the issue of lack of
proper management in Toyota. It can help to regain and increase the market profit of Toyota.
Total Quality Management
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This improvement strategy helps to detect the manufacturing error which helps to gain
the customer experience. This improved strategy can help Toyota to gain market share profit and
regain the customer satisfaction power.
5 S Concept
5S is the concept which inspired for manufacturing process. This is the systematic
formulation which helps to removing the waste items from the production process. This strategy
can help Toyota to focus on the other part of the organisation. This strategy can help to focus on
the other department which require more attention than that. There are five S are Sort, Set in
Order, Shine, Standardise and Sustain.
Sort : Sort go through in order to analyse the tools, furniture, materials and equipment etc.
Set in Order : Set in order define the activities specifically performed by the employees. This
practices can help to minimises the chances of fault and maintained the quality standards in
Toyota.
Shine : Shine defines the importance of manufacturing items like machines tools, equipments
etc. planning for maintenance in Toyota is very helpful to regain the market profit and sales
volume of cars.
Standardize : Standardise followed by the other concepts in order to measure the implemented
plan. This concept ensure the quality performance.
Sustain : This term express the importance of monitoring which ensures weather the
performance is sustaining or not of the organisation. This concept helps Toyota to take further
corrective action plan.
Kaizen
Kaizen is the philosophy of Toyota which is a most effective strategy of the company. It
means continuous improvement with the development of new trends and changes in
technologies. In other words, Kaizen is a practice which ensures the performance of team
members in order to measure the continuous improvement. Kaizen also requires the setting of
clear objectives and targets in order to achieve the success. It belongs to the positive attitude with
the focus on what should be done rather than what can be done. Kaizen Quality improvement
practices has been divides into three forms TPS means Thinking People system, 5 Whys and 5S.
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TPS : Thinking people system is a effective approach to maintained the quality system in
Ford. However, this approach defines that employees should always be think new innovative and
should take decisions timely in order to take the business smoothly.
5Whys : According to 5whys it defines the benefits of all improvement are carefully
evaluated before being implemented. However, each and every planned plan should be evaluated
by the company before implementing. Such process are helpful to tested by each levels to ensure
that its logic and value is clear.
5S : 5S belongs to Sifting, Sorting, Sweeping & Cleaning, Spick and Sustain. All such
elements helps to ensure the quality of manufacturing process.
2.2 Advising on the operational strategies that ford and GM can implement to gain market share
from Toyota.
In order to enhance and gain the high market growth the most important thing that
company must performed is gaining the customer satisfaction to get innovative tools and
techniques, strengthening customer relationship, smart hiring practices and acquiring
competitors. In order to measure the percentage of sales or percentage of units has in overall
market. Market share is calculated by measuring the percentage of sales that company earned.
Innovation is the one method by which a company may increase market share. In order to
gain market share of Ford and GM company must adopt some more techniques and tools from
Toyota in order to regain the improvement strategy or market share. Ford and GM must
maximize it capitalize on this opportunity for the long term by adopting some of the great
operating technologies of Toyota. In order to earn or gain the market share Ford and GM needs
to be more competitive for the next future and goals (Shingo, 2019). In this regard, Ford has the
jump on GM.
Significance of market share is helpful to measure the consumer sanctification towards
the product or services such as this is the big question in front of the Fords and GM to gain
market share against Toyota. This has been proved that Toyota is the tough competition for all
the other companies deals in automotive industry. On the other hand, US automotive industry is
is facing competition in terms of unprecedented period of competition and capital spending in its
efforts to compete with other competitors. Besides it helps to define the long-lasting goals and
objectives to determine the developing advantage growth.
Following strategies that could adopted by the Ford and GM to gain market share
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In order to analyse the actual current performance of Ford and GM. Company should
focus on the area where they get to know what exactly they need to perform. In order to examine
the situation of Toyota should requires to analyse some basic information like to analyse
competitors plan, respond to customers, strategic acquisition and improve brand.
Analyse the Competitors Plan : In order to improve the own position or the company
objectives it is required the most challenging business gain in order to make the best outcomes.
Ford and GM required to analyse the position of their competitors like Toyota, Honda GM and
Nissan. Competition
Respond to customers : In order to respond to the customers. Ford and GM required to take
High value customer growth, top performing companies do a few things consistently in both
good and bad times. Overall, it helps to bring the new advantage and long-lasting working
opportunity for the company regain the market share by offering the new advantage and new
product or services (Uhl and Gollenia, eds., 2016). By measuring the customer growth and brings
the innovative product gives the new working advantage. Operating system is the foremost focus
area is customer experience. Prior purchasing the long-lasting working outcomes brings the new
working task and bring the new management approach (Amazing Rules to increase market share
of a product, 2019). Creating is the memorable experience is the foremost growth outcomes
which brings the new management criteria. Such as Toyota promote and make their customer
happy is to generate more marketing campaign that brings the new marketing opportunity and
take the reviews. Such as Toyota commit the Eco-car strategy Electrification where they commit
the eco-friendly environment and contribute to the environment. Also, they launch the marketing
campaign building a low carbon society by 2020.
Strategic Acquisition : In order to expand the market share Ford and GM can also acquire the
another big brand to expand the market opportunity. This is the another option is available for
Ford and GM to adopt that can help to increase the market share.
Value chain Analysis
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Primary activities
Inbound logistics : Inbound logistics can help Ford and GM to maintained the strong
relationship with suppliers to support company function and regain the market share.
Operations : Ford and GM analysing the operational activities raises when raw material
arrives.
Outbound : Outbound is the process which focus on the delivering products to the end
customers., This has to meet the customer satisfaction.
Marketing & Sales : Ford and GM can also develop the attractive marketing plans to attract the
customer satisfaction.
Services : It includes pre sale and post sale services offered by the company along with the
products. This can be the best way to enhance the market position.
Secondary Activities
Firm Infrastructure : Firm infrastructure showing the quality management, legal matter and
accounting financing of the company. This has to be proper and systematic in Ford and GM that
helps to gain the market share.
Human Resource management : Employees has to be more productive and interactive towards
adopting changes and enhance the growth opportunity for the company.
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Illustration 1: Value Chain Model
(Source : What does Value Chain Means in Manufacturing. 2019)

Technology Development : All value chain activities support technologies. That impact on
distribution, production, integration. So for that, Ford and GM should needs to invest in quality
to gain market opportunity.
Procurement : Procurement of value chain model denotes procurement as a input that includes
equipments, machinery, raw material and all other important activities. Ford Motor company
should highlight areas where the value can be added.
Develop a New Strategic Plan
Companies that brings the new system and management growth that share several
qualities that consistently drive value. Ford and GM should require to adopts new compelling
products and services from both the strategic and customer expectations. By offering the new
model and plan will help business to gain new market approach. They maintain a flexible cost
structure, which also brings the new management task to bring the new opportunity. Overall it
takes long lasting way to offer new car model which is unique and different from each another to
bring the new opportunity and goal. For that, company need to be conduct market research and
bring out the current trend demand of the car lovers in the competitive market.
Risk Reduction
By reducing the risk and bring the new opportunity for the company can also help Ford
and GM to bring the new opportunity give the best outcome and results. In order to gain the
maximize the market share or risk surrounding a high share by optimizing the the share. In order
to full fill the results and following the effective market approach in order to make the best
outcomes. Companies can consider the following risk reduction methods to lessen the insecurity
over their market share (Uhl and Gollenia, eds., 2016). This risk can be reduced by the effective
Public Relations, Public relations for many major companies to spend large amounts on public
relations and advertising. By enhancing the public relations and advertising to improve their
brand worth. Another way through company can reduce their risk chances is competitive
pacification. To gain the market share Ford and GM also required to cultivate a better
relationship with its competitor’s companies in order to maintain the good relation with long
term market.
Diversification is the most challenging and different way to control the better task and
efficient to make the best productive outcomes. Ford and GM can also take this approach to gain
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market share by diversification and growth. Besides, fear of competition in an established
market cloud lead a company.
Social Responsiveness
Socially attentive and responsible is the more competitive way to gain the high marker
share and reducing the risk factor for the company (Uhl and Gollenia, eds., 2016). Such
Automotive industry is the only industry who generate high pollution in the environment. So, in
order to that, it also must be more advancing work opportunity. For that, Ford and GM should
require to get the technique which reduces the air pollution and brings the better sustainability
and growth. Besides, that Ford can also invest on the green projects and produce the non-
polluted cars to gain the market gain and competitive image in front of the competitors.
3.0 CONCLUSION
As above the above report it has been concluded the role of business operation system
and its role within the organization. Operation management system supports the overall
techniques or business functional activities with the help of different operational techniques. So,
for that, present study explained operation strategies for improvement for the Toyota in order to
gain the market share. However, the whole report explained the tools and techniques of
operations and how company operational strategies that Ford, and GM can implement to gain
the market share from Toyota. Report discussed different management techniques to minimize
the wastage activities such as lean management, ERP, Manufacturing Requirements Planning
(MRP) etc. overall, it has been concluded that operation management is the foremost department
of the company that contributes the high work and productivity in order to help company to earn
customer satisfaction and high position in the competitive market.
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4.0 REFERENCES
Books & Journals
Aitken, J. and et.al., 2016. A comparative study of manufacturing and service sector supply
chain integration via the uncertainty circle model. The International Journal of Logistics
Management. 27(1). pp.188-205.
Andersson, C. and Bellgran, M., 2015. On the complexity of using performance measures:
Enhancing sustained production improvement capability by combining OEE and
productivity. Journal of Manufacturing Systems. 35. pp.144-154.
Boone, C. A. and et.al., 2018. A framework for investigating optimization of service parts
performance with big data. Annals of Operations Research. 270(1-2). pp.65-74.
Kang, N. and et.al., 2016. A Hierarchical structure of key performance indicators for operation
management and continuous improvement in production systems. International Journal of
Production Research. 54(21). pp.6333-6350.
Lan, S. and et.al., 2016. A customer satisfaction evaluation model for logistics services using
fuzzy analytic hierarchy process. Industrial Management & Data Systems. 116(5).
pp.1024-1042.
Martínez-Jurado, P. J. and Moyano-Fuentes, J., 2018. Lean Management and Supply Chain
Management: Interrelationships in the Aerospace Sector. In Operations and Service
Management: Concepts, Methodologies, Tools, and Applications (pp. 1208-1242). IGI
Global.
Nicholas, J., 2015. Lean production for competitive advantage: a comprehensive guide to lean
methodologies and management practices. Productivity Press.
Piccinini, E. and et.al., 2015. Transforming industrial business: the impact of digital
transformation on automotive organizations.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Robinson, A., 2017. Modern approaches to manufacturing improvement: the Shingo system.
Routledge.
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Shingo, S., 2019. A revolution in manufacturing: the SMED system. Routledge.
Uhl, A. and Gollenia, L. A. eds., 2016. A handbook of business transformation management
methodology. Routledge.
Online
Strategies for operation Management Improvement. 2017. [Online]. Available
through :<https://bizfluent.com/info-8148586-strategies-operation-management-
improvement.html>.
Amazing Rules to increase market share of a product. 2019. [Online]. Available
through :<https://www.educba.com/how-to-increase-market-share-of-a-product/>.
What does Value Chain Means in Manufacturing. 2019. [Online]. Available
through :<https://www.iqs.com/value-chain-mean-manufacturing/>.
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