Operations Management and Logistics in Toyota's Success

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INTRODUCTION TO OPERATION MANAGEMENT AND LOGISTICS OF TOYOTA
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In recent times, most companies embrace several business management strategies to develop
their market and services. Operation management and logistics are the most significant aspects
for a company for going ahead of their competitors. The success of any company is considerably
dependent on their exceptional operations administration that highlights on their products and
services. The Operation management comprises of several processes like organizing, planning,
coordinating and controlling all the sources, which may need to make the products and deliver
better services to customers. It is the major aspect for any automobile sector because it controls
the whole process of manufacturing goods. The HR management takes the initiatives to flow the
logistics from one point to another point (Rai et al., 2012). Within this essay, the vital role of
logistics and new product development will be discussed. This helps to scrutinize the quality of
manufactured products. In addition, SCM and new product development are estimated to be the
prominent actions in the procedure of business operation.
In case of business operations, methodical coordination is the conservative one and the method
may integrate to develop long-term performance of an organisation is known as SCM. Several
actions are engaged within the process of supply succession i.e. unprocessed materials, natural
resources and ingredients for the final item that will be launching in market (Myerson, 2012). In
this contrast, supply chain and logistics are directly relevant and considered as the control unit of
management analysis.
Toyota is selected in this essay to examine their operation management and logistics. Toyota has
been taken the leading position in automobile sector. It is mainly developed their production in
Japan and their management is responsible to manage the sources and distribute the products in a
systematic manner (Grabara et al., 2014). Toyota is well known for their product quality and
offer significantly low price in automobile market. Their management makes their productivity
through their tactical knowledge. Toyota has developed the 4P structure, which comprises:
 Philosophy: In Toyota, philosophy set by managers and directors based on their working
rules and regulations. Main aim of the leaders is to serve the customers at any cost and
solve their issues as soon as possible.
 Process: While Company fixes the correct process, whole management work on that and
obtains the best results. The managers and their employees always work on an innovative
process and way they implement it in the automobile sectors (Dima and Grabara, 2013).

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 Partners: Proper partners are necessary to access logistics and employees are choosing
by their skills and knowledge. To know the industrial position, company has to choose
the proper partners that may be helpful for the company in future.
 Problem solving: In Toyota, everybody has the opportunity to resolve the problems with
their skills.
There essay will disclose the whole procedure of new item for a company and how their
management takes the initiatives to control the product’s quality. In case of products, quality is
always essential part of any procedures and Toyota always maintain the quality in their
manufactured products (Choi et al., 2016). However, a process is develop by series of phases
through an item will be passing. In case of a company, the process starts with introduction of
new idea to launch finally the item in the competitive market. This procedure supports the
automobile sector to uphold their quality and maintain the prices of resources. In the global
context, Toyota has been facing high level of pressure to make the quality products. Besides,
quality management supports automobile sector toward eliminate the wastage and reduce the
setup prices and storeroom charge. It helps to control the flow of materials and efficiency in
resource consumption. Further, quality managements have developed the effectiveness and
competence of operational functions (Van Wassenhove and Pedraza Martinez, 2012). Constant
development within products attract more customers towards company and more reliable in the
society.
In product development, company may cover the whole process of launching new products in the
marketplace. The main purposes of Toyota product development is represented below where the
company has to provide best quality items towards their existing and new customers at the
lowest price. Besides, Toyota focuses to give job security along with satisfaction to their staffs
and make sure that all the workers obtain similar treatments from the company. In case, the HR
management of company work on product development in order to develop high-level agility in
their products as the company may easily attract the customers. Thus, the company easily attains
profits by taking cost reduction activities, which would ensure that company gains the long-term
propensity.
In Toyota, product development has focused to deliver safety techniques in their production and
company maintain the quality (Tsakiris et al., 2013). Employees in Toyota aim to improvise the

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standardization in procedure to make sure enhanced quality, competence and reduction of waste.
By adopting development policy, the company will be beneficial while marketing the item.
However, the manufactured product could be intangible or tangible, through methods along with
services are separated from the “product development”. The company desires to recognise the
requirements as well as demands of different consumers, nature of market and the competitors.
To contrast the development theory, time, price and quality are the major factors that may drive
the requirements of customers. To know these aspects, automobile companies like Toyota
develop the constant strategies and activities to better development of company. In this stage,
company may face several issues and uncertainties (Nummela et al., 2016). The operation of
finest methods and reduce the barriers in communication are major prospects in the product
development of Toyota. The management of Toyota mainly pursues 4P strategy of marketing
mix, which covers promotion, price, product and place.
Price: Operational management of Toyota has maintained the product quality and affordable
charges for their items. Their focus is to enlarge the profit by allowing credit payments to their
consumers at the lowest charge (Ghosh, 2017). In marketing mix, pricing strategy is developed
based on segment, demand, geography and competition. Their prices are flexible to modify
according to condition of market and charges of competitors thus affecting their selling costs.
The price ranges of their automobile products are changing according to the choices, model and
innovation.
Place: In case of Toyota, company may like to deal with numbers of retailers and they develop
the connection with their supplier as the products reach maximum customers all around the
world (Quelch, 2017). In case of product distribution, the company utilizes showroom, several
exhibition centers or arranger special event that may promote their products significantly in the
market. The company relies extremely on dealerships for selling their items in the competitive
market.
Product: Toyota gives their customers both intangible and tangible items ranging from cars to
warranties. Quality of product is usually depending on the self-marketing and this makes Toyota
items so desirable for their customers. The company also gives vehicle parts like gears, safe
guards and other things.

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Promotion: Toyota aims to develop their marketing communication for enhancing their sales
percentage (Sinha and Sheth, 2018). In 4P strategy, their promotional activity is to be aggressive
and has comprehensive and wide brand. They also have direct selling for their corporate clients.
In the outlets, staffs promote their items by adopting several methods.
In the development process, development in quality is a main aspect for Toyota with high level
of implication and production is second aspect for the product development. However, HR
management of company always ready to adopt the CSR activity in their management. In case
of produce development, Kaizen is estimated to be the main feature while mass production takes
the place. It is clear that Toyota mainly aims to undertake all the risk factors by human or
machine being by defining those exactly. Besides, it mainly focuses to standardize the major
actions, which support to ensure the superior quality through elimination of wastage and
developed affectivity (Gharakhani et al., 2013). Employees in Toyota connected with these types
of methods are responsible for standardize the guidelines. The team leaders and their members
are focused to develop their work applications day by day and it is known as Kaizen. However,
economic policy of new-fangled product development is captured the Asian marketplace by
giving a luxury as well as comfortable vehicle in the lowest market price. It objects convinces
the requirements of vehicle in that region.
By adopting the development model, company may include the uppermost superiority of objects
with cutting the price of new item. The company would like to launch the new product, as it is
required to improve the marketing mix. The manufactured product would introduce to middle
and lower class customers with exceptional specification with size and module (Gimenez-Espin
et al., 2013). Company offers a huge number of advantageous within their latest product to
develop the lifestyle stage for the focused customers. The HR management of Toyota provides
numerous aspect options and combinations within the products. They use the marketing
campaign since obtain the profits and prices of innovative items that is made based on customer
discernment and criteria of marketplace.
As noted by Vikhorev et al. (2013), the management of Toyota is designed the items according
to correct requirement of customer’s aspects that are adopting the direction of higher level of
technology. On the other hand, product quality is needed through the desiring phase, generating
and customer care service. An action plan is developed that is based on customer demands and

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requirements. In global context, company mainly depends on their suppliers and stakeholders. In
Toyota, time management has made a elastic ambiance where all types of movement aim on
reduction of misuse The focus of business is to acquire estimated quantity of resources as it may
make good requirements of the company. Toyota has intended the “just in time” approach within
their manufacture scheme that is recognized as Zero production method. It is mainly made based
on three phases. However, the 3 elementary rules of Time philosophy are elimination of waste, a
cooperative environment and continuous development of quality. As argued by Walker and
Jones (2012), the company has adopted the activities of time approach to eradicate requirements
of resources. Thus, it has found that one of main objectives in “just in time” is in the direction of
eradicate waste. It is the most effective approach to manage the production operation and utilized
by Toyota for their different production line.
As opined by Fonseca (2015), Toyota has continuously pursued a balanced movement, which is
developed based on the significant examination of market and industrial environment. Further,
planning should be taken in the business policies as considering the resources and environmental
factors. It is essential that company must utilize their bottom line strategy to gain the knowledge
and optimize the needs of Toyota. The management of Toyota has been integrated the
employment activity while entering in a new market. Besides, the SCM (Supply Chain
Management) is estimated as to be one of the vital aspects to ensure the operational excellence in
business organisation. However, affectivity in SCM contributes to enhance the organisational
performance. Recently, the market may be differentiated through occurrence of current technical
advancements and opposition. It has found that changes in exterior industry surroundings has
directed towards the significant changes within the company as the firm may affectively respond
to the customer’s requirements (Monczka et al., 2015). The SCM of Toyota comprises of
distribution of products, material suppliers and customers. It indicates that the SCM maintains
the feedback of customer’s information.
Sometimes, several issues are found while manufacturing the goods. The company needs to
change its organisational culture and be more innovative. Needs of customers are to be
recognised by developing its corporate image. If the latest culture is initiated within business and
existing traditions have designated left behind, it is not easy task to shatter commercial traditions.
In case, a new manager has appointed in the department and it affect on the overall production

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(Hohenstein et al., 2014). Employees may not follow the rules and policies of new manager and
they like to work in pre-existing rules. Another problem is technical advancement, as the
company has not taken the latest technology. One of the main challenges is that upper authority
in management may reluctant to provide more possessions and time. Product quality may fall
down of if the issues are not solved properly. In era of globalisation, every company focus to
enlarge their production and adopt existing and latest policy to deliver high amount if products
and services toward their consumers. Thus, the automobile sectors like Toyota have to try and
develop the product superiority to change the mindset of employees.
Triple bottom line is the important aspects, which support company to obtain the sustainable
goals in the competitive market. However, it is comprises of environmental, financial and social.
The Structure adopted by Toyota to access the execution procedure of product development
helps the marketing policy prominently. Toyota constantly finds the best ways to reduce the
waste material in the environment (Monczka et al., 2015). The eco-friendly products are
launched by company to support the equilibrium condition in the environment to deal with the
suppliers and reduce the environmental affect. Medium-term and long-term policies are planned
by sector to estimate effect of industrial operation. The company also measures the social
problems through their marketing activities. The main vision of Toyota will be acquiring 3p
policy i.e. Product, profit and people. Two aspects are recognised by organisation to know the
enduring issues i.e. back casting and forecasting. Forecasting is looking forward to the recent
condition while back casting will be looking to 2030. Thus, company will be developed a group
to discuss about the business activities that will take in upcoming years (Nummela et al., 2016).
This committee recognizes the lasting issues in their image and resolves them at the managing
stage.
From this above discussion, it will be recommended that the company must develop their
procedure to apply their strategies rapidly and must be effective than the participants. On the
other hand, Toyota should take a proper analysis of market when their management may approve
the international trade within their business activities. Moreover, it would be efficient marketing
activity if company employs workers within their task. Automobile sectors like Toyota must
follow the trading rules and regulations to enlarge the industrial function within the competitive
market. It is suggested that organisation should carry out a market research to identify the pros

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and cons of external market and uphold the sustainability. For developing high-quality items,
Toyota should make an organisational culture that would motivate the workers and direct the
quality of items. Difficulties in automobile sectors are enlarging all time and company must take
the correct steps to decrease their issues.
It will be concluded that logistics and operational management act a vital role for a company.
These are needed to manage the product’s quality. The management of Toyota is effective while
operation these things. The New Product Development and logistics are explained in terms of
company, relating to the problems over methods as well as management associated towards
making the item. The economic, social and environmental strategies are estimated toward use a
triple bottom line. Lastly, some suggestions are given after recognizing the issues of automobile
sector and way they use them in this essay.

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