Improving Operational Efficiency and Supply Chain Management at Toyota

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UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY
CHAIN MANAGEMENT
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Table of Contents
1. Introduction..................................................................................................................................3
2. Discuss the management theories................................................................................................3
2.1 The critical review.................................................................................................................3
2.2 Logistic...................................................................................................................................4
2.3 Supply chain management.....................................................................................................4
3. Explain the solution of operation management...........................................................................6
4. Conclusion...................................................................................................................................9
5. Recommendation.........................................................................................................................9
Reference List................................................................................................................................11
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1. Introduction
Toyota Motor Corporation is a well known automotive industry that mainly found in 1933 by
Kiichiro Toyoda. Accordingly, headquarter of the Toyota industry in Toyota city that mainly
offers the high quality manufactured cars. In addition, instead of the automobile the Toyota
industry also provides the financial services by its division of Toyota Financial Services. As per
the analysis, it found that the Toyota industry needs to maintain its position in the market area
through the various strategies. According to the present situation, the Toyota industry is a well
develops industry in various country. In this case, the organization needs the improvement of
their services and the quality of products to attract more customers. The main aim of this
industry is to improve the services, increment the quality and maintain the equipment with new
changes by the Toyota Production System.
2. Discuss the management theories
2.1 The critical review
According to the case study, it can found that the organization follows several strategies to
improve their services and increase market sales. As per the analysis, it mainly found that the
organization is a well-established industry and provides several facilities to satisfy the customer.
As per the present situation, the organization mainly follows various strategies to improve its
service. As stated by Govindan and Soleimani, (2017) according to the present situation the
organization also follows the Toyota production system discipline to improve the service quality.
Similarly, the organization also needs to maintain strong communication skill so that the
employee can motivate their work efficiently. In argued by, Wang et al. (2016) the organization
need to follow only the kaizen method to detect the mistakes and identify them efficiently.
As per the analysis, it mainly includes that the organization needs to maintain its services and
need to follow the logistics strategy for better services and satisfy the customer. According to
effective communication, the organization can increase its market sale and also improve increase
the profit margin as well. As per the analysis, it mainly found that the main strength of the
organization is that,
● Build up the corporate image
● Effective communication skills
● Employee satisfaction
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In order to maintain the strength, the opportunity of the organization is that it can improve their
service. Accordingly, it can also help to improve the quality of the products as well.
2.2 Logistic
Logistics is one of the important factors that are mainly included in the management services of
the movements of the goods. As per the analysis, it mainly found that logistics management need
to be managed with the suppliers. According to the present situation, the Toyota organization
follows the various logistic strategies to improve the services. Accordingly, the logistic strategy
mainly follows the,
Tier one supplier:
Accordingly the tier one supplier mainly includes the supply chain of the supply chain. And also
distribute the information about supplying elements and the equipment as well.
Tier two supplier:
Accordingly, the tier two suppliers are one of the important supply chains that mainly include the
vendors. As per the present situation, the vendors are mainly helping to distribute the information
and also focus on the services of the products.
Tier three supplier:
Accordingly, the tie three suppliers are one of the important vendors that mainly include the raw
materials of the organization. As per the analysis, it mainly found that the Toyota organization
follows the tier three suppliers to improve their services and the product quality as well.
2.3 Supply chain management
According to supply chain management is one of the important parts of the automotive industry.
In addition, the Toyota industry is mainly a manufacturer company and need a different product
from the suppliers. The supply chain mainly depends on the company's size and the products
which are mainly produced by the industry. In order to complete the supply chain process then
there are various characters are involved such as planning, purchasing, customer, transportation,
inventory, and the production as well. Accordingly, the supply chain management is basically
helping to understand the customer's needs and improve the ability to supply high-quality
products. Moreover, the supply chain also helps to satisfy the customer as the supply of high-
quality products can get at a reasonable price as well (Warmelink et al. 2018). As per the
analysis, it mainly found that operational management basically includes information about the
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supply chain. The supply chain management basically follows three types of activities such as
operational, tactical, and strategic management.
Operational:
According to the present situation, the operational strategy mainly includes the accurate
information of the supply chain and helps to manage the process of the supply chain. In order to
maintain the operational plan, the automotive industry follows various type strategies that can
give the information of the supply chain the operation plan gives the information about the labor
structure, production process, and the storage & distribution as well.
Labor structure:
As per the present situation, the labor structure mainly shows the employee's account in the
automotive industry. In addition, the labor structures also involved in the planning structure that
helps to improve the planning to produce the high level of motor vehicles (Parida et al. 2015). As
per the analysis, it mainly shows the organization follows the labor structure to improve the
processing plan and also helps to build up high-level vehicles.
Production process:
As per the analysis, it mainly found that the organization follows the production process so that
the owner of the company can monitor the whole process. The product process gives the details
of the components and the materials as well. In addition, the production process gives the layout
of the steps of the production and also analyzes the numerical details such as production
capacity.
The storage & distribution:
The storage and distribution are one of the important processes of the automotive industry like
Toyota. As per the analysis, it mainly found that the Toyota industry follows the storage and
distribution strategy for the quick response of the customer. In addition, this process also
mentions information about the products and explain the method that the company will use to
distribute the products to the customer.
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Figure 1: Supply chain management
(Source: Dubey et al. 2018)
Tactical:
The tactical function is one of the important factors that are mainly used to analyze the function
of the organization. As per the analysis, it mainly found that the Toyota organization follows the
tactical plan that is mainly concerned with the functionality of the lower level departments and
the responsibilities as well (Liu et al. 2018). In addition, the tactical plan also improves the
strategic plan and helps to maintain communication with the customer.
Strategic Management:
Strategic management is one of the important factors that is mainly used to maintain the design
of the entire organization of Toyota. As per the analysis, it mainly found that the strategic
management plan also helps to maintain the automotive industry (Ngo et al. 2016). Accordingly,
strategic management also helps to develop the motor vehicles with attractive design. The
strategic management plan basically helps to attract more customers and increase the profit
margin as well. In addition, the strategic management plan needs to be unique and classy so that
everyone can attract by the design also increase the market value in the market area.
3. Explain the solution of operation management
The Toyota industry is one of the well-known industries that are mainly producing motor
vehicles. As per the analysis, it mainly found that the Toyota organization mainly follows the
Toyota Production Services to improve their organization. Accordingly, it also shows that the
organization also has several operational management processes to maintain high-quality
products. In addition, the Toyota Production Services mainly follows the seven type of discipline
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to improve the services and the products as well. The main aim of the Toyota production service
is that to avoid the three types of issues such as overburden (Muri), inconsistency (Mura) and the
waste (Muda)(Fazlollahtabar et al. 2017). Accordingly, the Toyota Product Services is basically
based on the principles such as the elimination of waste, automation with the human face,
continuous improvement and the involvement of the employees.
Elimination of Waste:
Elimination of waste is also known as a Muda of the organization. the main focus of the Muda is
that to avoid the defective materials. It also helps to identify those materials which mainly
include the values (Dubey et al, 2017). As per the analysis, it mainly includes that the Muda
strategies mainly include the values of the production. Accordingly it also analysis that there are
various types of strategies can there that mainly help to involve the employees for the better
services. Accordingly, the Muda strategy mainly detect several processes such as,
● Transporting process
● Inappropriate processing
● Unnecessary inventory
Accordingly, the main advantages of using the Muda strategy is that,
● Increase the quality of the product
● Increased profit margins
● Employee satisfaction
● Improved the lead times
Automation with the human face:
As per the analysis, it mainly found that the automation with the human face is mainly known by
the Jidoka and helps to stop the machine safely. Accordingly, there are several problems can
appear so that the Judoka has the ability to detect the defect and also helps to prevent more
defective products. In addition, the Jidoka also helps to monitor the processing process and it can
stop automatically when processing is completed. Moreover, the Jidoka process also helps to
communicate quickly when the problem can arise. As per the analysis, it mainly found the Jidoka
process helps to rectify the defective model so that the customer can get high-quality products.
Similarly this process is an independent strategy that can be work with the machine as well and
able to identify the defects easily.
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Figure 2: solution of operation management
(Source: Krolczyk et al. 2015)
Continuous improvement:
According to the continuous improvement is also known as a Kaizen process that mainly helps to
improve the organization. As per the analysis, it mainly found that the Automotive Toyota
industry follows the Kaizen principle so that they can improve their services and the products as
well. According to the present situation, Kaizen has several processes to complete the whole
process. The Kaizen process mainly uses to detect the mistakes of the lower detects, boost up the
productivity, motivate and encourage the employees, and also promote the innovation of the
automotive industry. The main advantage of the kaizen process is that,
● It improves the security process
● Increases the teamwork
● Increases the client focus to the customer
● It ensures the improvement of the short term and long term process (Krolczyk et
al,2015),
● It also helps to encourage the employees to increase the motivation for the better
services
The Involvement of the employees:
The involvement of the employees is one of the important factors that are mainly used to
improve the services. As per the analysis, it mainly found that the Toyota industry needs to take
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care of the workers so that they can involve in the task. According to the present situation, the
organization also needs to encourage them so that they can concentrate on their work. Moreover,
the employees make a better decision of the work culture and also analyze the result (Abduaziz
et al. 2015). In order to involve the employees then it can increase the productivity and the
quality of the products as well. In addition, the main advantages of involvement of the
employees are that,
● Employees are mainly able to accept the changes of the products so that it can easy to
understand the customers need.
● Employees of the organization help to build up the communication system as they
communicate with the customer directly.
● Employees also help to increase the commitment and the goals of the organization.
● Employees have the ability to understand the spot and the pinpoint for the improvement
process.
4. Conclusion
From the above case study, it can be concluded that the Toyota organization is well established
in the market area. As per the present situation, Toyota mainly produces cars by using high-
quality materials. In addition, the organization follows the Toyota production services to improve
the services and product quality as well. Moreover, the Toyota industry also gets new products to
increase the market selling and also improve the profit margins Accordingly the Toyota
industries follows the higher level productivity to improve the selling process and also increase
the flexibility of the production. In order to improve the flexibility and increment of the products,
the organization also increases their suppliers. As per the situation, the organization faced many
problems and still, they are facing various problems such as two-tier suppliers and the three-tier
suppliers. At the time of rapid extension of the Toyota, the organization increases its suppliers to
produce high-quality services and satisfy the customer.
5. Recommendation
Appropriate goals and objectives:
The Toyota organization needs to focus on their development process so that they can maintain
the improvement of the organization. In addition, it also helps to improve the quality of services
and increase the market sell. In order to maintain the strategies then the organization can
improve its services.
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Analyze the situation:
The Toyota industry needs to focus on its services to analyze their competitors in the UK market
area. In addition, it can help to enhance its position in the competitive market area. Accordingly,
it can also improve the market area and profit margin as well.
Outline the tactics:
The Toyota industry needs to maintain its services and the product quality so that they can satisfy
their customer. Moreover, the organization also needs to maintain the timeline for making the
goals of the business and attract more customers.
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