Toyota Motor Corporation: A Detailed Operations Management Report

This report provides a comprehensive analysis of Toyota Motor Corporation's operations management. It begins with an introduction to the company, its history, and its brand portfolio. The report then delves into the operational management department, focusing on its role in product design and redesign. Key areas of focus include Toyota's operational strategy, emphasizing waste elimination and continuous improvement, and decision-making processes influenced by customer demand. The report examines product and process design, including the Toyota Production System (TPS) and its tools for efficiency and cost reduction. A detailed exploration of Toyota's highly integrated value chain (supply chain) follows, highlighting its impact on cost reduction, quality, and customer satisfaction. Planning and control within Toyota's operations are discussed, including demand forecasting and decision-making processes. The report also examines Toyota's quality management system, emphasizing the Lean Six Sigma team and the two pillars of the Toyota Production System: Jidoka and Just-in-Time. The conclusion summarizes the key findings and emphasizes the role of effective operations management in Toyota's success. References to relevant academic sources are also included.

Toyota Motor
Corporation
BY [NAME]
COURSE
PROFESSOR’S NAME
INSTITUTION
LOCATION OF INSTITUTION
DATE

Introduction
 Toyota Motor Corporation is a multination automotive based in
Japan.
 It has it’s headquarter in Toyota City, Aichi in Japan.
 It was founded in 1937 by Kiichiro Toyoda to create automobiles.
 The company produces vehicles under five brands, which include
Hino, Toyota brand, Ranz as well as Daihastu.
 The company holds 5.5 percent stake in Mazda, 5.9 percent stake
in Isuzu, 16.66 percent stake in Subaru Corporation and a joint
venture in one in India (Toyota Kirlosker).

Toyota Company Logo

Toyota operation management
department
 The department whose main focus is to oversee the designing
and redesigning of the product made in this organisation.
 This department ensures all the resources of an organisation are
effectively utilized.
 Is used to produce goods in most efficient way to meet various
needs of the customer.

Toyota operation management department

Operation strategy
 The management of Toyota Motor Corporation ensures it fully eliminates any form of waste in its
operation.
 The vehicle manufacturing process in the company has been built for many years of consistent
improvement to ensure it fully satisfy the desires of the customers.
 Besides, through committed process and experts in different fields, the management has been
able to deliver the type cars that are demanded by the clients in most efficient and quickest way.
 The company summaries its conduct and values guidelines in five main headlines, these are;
1. Challenge
2. Improvement
3. Go and See
4. Respect and
5. Teamwork

Operation strategy

Decision making processes and
innovation
 This process is influenced by the need to meet the demand of customer
on a timely basis.
 The current management structure in this department is based on the
structure that was established in 2011.
 The management is taking appropriate measures and precautions in the
protection of the environment.
 Some policies and concepts have been implemented to ensure the
introduction of hybrids cars that are quite effective in protection of the
environment

Product design
 There are different products and services offered by the Toyota Motor
Corporation.
 The products include the luxury vehicles, automobiles, engines and
commercial vehicles.
 These challenges were failure of the professionals and experts to be keen in
the process of manufacturing and production of vehicles.
 The management decided to make some few changes in the bid to prevent
a similar occurrence in the future.
 The roles of this team was to carry out a thorough and effective research to
come up with different ways to come up with efficient vehicles that will
provide the customers with efficiency and satisfaction they want.

Process design
 Toyota has an effective system that is referred as Toyota Production System (TPS).
 The systems provides the company with sophisticated business process management
tools.
 The tools plays a significant role in adding value to the customers as well as
eliminating any unnecessary activities.
 The main focus of this organisation is 30 percent cost reduction.
 The management is coming up with an effective cost production strategy, which does
not reduce the employee morale or productivity.
 There are some areas where the business process needs to be improved.
 The channels of communication between different departments in the organisation
have been well installed.
 The breakdown of communication is the primary cause of problems that have been
experienced in the company in the past.
 Moreover, there is not effective link between the business and customers.

Process design

Value Chain (Supply Chain)
 Toyota operation management has a supply chain that is highly integrated.
 The department was designed to reduce the cost as well as have the cost of products to
minimal possible values.
 Care was taken while designing this supply chain to avoid any compromise quality, delivery
time as well as the customer satisfaction.
 Toyota Company has a complete integration of supply chain right from the provider of raw
materials, vendors and the manufacturing plants, warehouses, dealers and finally the clients.
 This supply chain ensures there is effective production of cars right from the manufacturing of
different parts, assembling until it get to the customers (Imai, 2017 p. 57).
 Toyota Operation Management starts with suppliers, who are organized into functional tiers.
 The first tier suppliers works in the product development team while the second tiers are
engaged in product team development.

Value Chain (Supply Chain)

Planning and Control
 Toyota operation management has an effective approach in forecasting of demand.
 Forecast in this organisation is based on 3 things, which is the past performance,
the changes that are anticipated as well as the future growth plan.
 There is an established team mandated with analyzing and extrapolating the past
performance of the company to get the basic forecasts to begin with.
 To come up with the best prediction, this team also accesses the future investment
of the company and its growth plan so that it can arrive to the final forecast.
 The process of decision making go hand in hand with the establishment of short
and long term plan.
 Different individuals in this department have been meeting occasionally to make
decisions regarding the company and it is through this process that long and short
term planning is carried out.

Quality Management
 Toyota production system is based on powerful Lean Six Sigma team that enhances the best performance
and provides the employees to realize their full strength.
 It enable the works to be creative, which help the company to gain in market share, profitability, high
customer satisfaction as well as productivity.
 The Six Sigma system was created to provide the organisation with the best quality, shortest lead time and
low price by elimination of waste.
 There are two pillars in Toyota production system; these pillars are Jidoka and Just-in-Time.
 The best way to improve and maintain the Toyota production system is through improved quality and
consistent quality.
 There is several form in the elimination of waste, these include idle equipment, material, and inventory.
 Most companies waste about 80 to 90 percent of their resources.
 Toyota production system emphasizes on the detection of such waste based on six sigma tools as well as
system.

Conclusion
 It is apparent that Toyota Motor Corporation is an organisation of choice based on the
role of Toyota operation management department.
 It is one of the departments in this organisation that has done exemplary well to
ensure this organisation reaches the point it is today.
 All the activities that are performed in this department have played a significant role
in enabling the management of the organisation to achieve both the short and long
term goals.
 Leadership has been able to set up a strategic plan based on the direction they want
the company to take in the future.
 In regard, there will more achievements, which will place Toyota Motor Corporation at
a strategic place in the world market and therefore stand out from the rest of the
competitors.

References
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Toyota Production System. Diagnosis.
 Wagner, T., Herrmann, C. and Thiede, S., 2017. Industry 4.0 impacts on lean production systems. Procedia CIRP, 63, pp.125-131.
 Monden, Y., 2018. Toyota management system: Linking the seven key functional areas. Routledge.
 Amasaka, K., 2016. Innovation of automobile manufacturing fundamentals employing New JIT: Developing Advance Toyota Production System at
Toyota Manufacturing USA. In Proceedings of the 5th Conference on Production and Operations Management, Havana, Cuba, International
Conference Center (pp. 1-10).
 Suh, Y., 2015. A global knowledge transfer network: The case of Toyota's global production support system. International Journal of Productivity and
Quality Management, 15(2), pp.237-251.
 Chiarini, A., 2016. Lean Organisation for Excellence. Hoshin Kanri, Value Stream Accounting, Lean Metrics e Toyota Production System e Lean Agile
Scrum: Hoshin Kanri, Value Stream Accounting, Lean Metrics e Toyota Production System e Lean Agile Scrum. FrancoAngeli.
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and Operations Management, 24(3), pp.362-364.
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of Operations Management, 49, pp.67-76.
 Hines, P., 2016. Toyota supplier system in Japan and the UK. In Developments in Logistics and Supply Chain Management(pp. 113-124). Palgrave
Macmillan, London.
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p.57.
 Yin, Y., Stecke, K.E. and Li, D., 2018. The evolution of production systems from Industry 2.0 through Industry 4.0. International Journal of Production
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