Understanding Operations, Logistics and SCM: Toyota Essay Plan

This essay plan analyzes Toyota Motor Corporation's operations and supply chain management, focusing on quality control and the application of Just-in-Time (JIT), lean, and agile principles. The plan explores key theories and techniques, including Deming's theory of total quality management, which emphasizes the importance of continuous improvement through a system of profound knowledge and the PDCA cycle (Plan, Do, Check, Act). The essay plan identifies areas for improvement, such as enhancing worker skills in implementing the Six Sigma concept and optimizing the efficiency of Toyota's JIT system to reduce overall costs. The document references relevant academic sources to support its analysis of Toyota's SCM strategies. This essay plan is a formative assessment for the module Understanding Operations, Logistics and Supply Chain Management, and it is a part of a larger summative assignment.

Logistics and supply chain management
ESSAY PLAN

Analysis
Toyota Motor Corporation is a Japanese automobile manufacturer established in 1937 by
Kiichiro Toyoda. It is the world’s largest automobile manufacturer in terms of volume. The
company manufactures and sells vehicle and spare parts in each and every part of the world. The
company operates global business with 53 overseas manufacturing facilities or plants located in
28 countries of the world. The products of the company are sold in more than 170 countries in
the world.
The first area of operations and supply chain management which has been selected for the
current article is Managing quality as it is a very component of operations management. It is very
important for a business organization to ensure quality of the products in the production process
in order to ensure that the final product of the company is at par with the company level and it
also satisfies the quality requirement of the customers of the company.
The second area of operation and supply chain management which has been selected for the
current article is Just in Time, lean and agile as these are various important components for
improving the operational efficiency of business organizations. The Just in time concept helps in
ensuring that the products are available to the customers at the right time when they require and
lean and agile manufacturing ensures that the production process of the company is sustainable
in nature.
The theories and techniques that should be applied in the analysis of the operations and supply
chain management are as follows:
Deming’s Theory- As opined by Castell (2016) Deming’s theory regarding total quality
management is based upon fourteen points of management, system of profound knowledge and
the PDCA cycle. As opined by Parkes (2015) the Deming’s theory of profound knowledge
consists of 4 points, namely system appreciation, variation knowledge, knowledge theory and
psychology knowledge. The fourteen points of Deming’s theory of total quality management are
namely:
 Creating purpose constancy

 Adopting of new philosophy
 Stopping mass inspections dependencies
 Not awarding business based upon the price
 Aiming for continuous production and service improvement
 Implementing cutting edge techniques regarding job training
 Implementing cutting edge methods of leadership
 Abolishing fears from the company
 Deconstructing barriers which are departmental
 Getting rid of work goals which are quantity based
 Getting rid of quotas and standards
 Supporting pride of craftsmanship
 Ensuring the training and education of everyone
 Ensuring that the structure of top management supports the above mentioned thirteen
points
PDCA cycle- As stated by Nicho (2018) the PDCA or Plan Do Check and Act is a frequentative
four stage approach for processes, products and services which are continuously improving and
for problem resolving. It involves testing potential solutions in a systematic manner, analysing
the results and implementing the results which have worked. The four phases are as follows:
Plan- Identifying and analysing the problem or opportunity
Do- Checking the potential solutions in a limited manner.
Check- Analysing the solutions and measuring its effectiveness
Act- Implementing the solution if it is successful
The potential areas of improvement which needs to be reviewed critically are improving skill
level of the workers regarding implement the six sigma concept of Toyota in the operations and
supply chain management of the company and improving efficiency of the just in time system of
the company for reducing the overall costs of the products of the company.

References
Castell, Y. (2016). Strategies to implement ISO 9001 in a government organization. Business
Premium Collection [Online]. Retrieved from https://search.proquest.com/docview/1848667485?
accountid=30552 Accessed on 10/4/2019
Nicho, M. (2018). A process model for implementing information systems security
governance. Information and Computer Security, [Online] 26(1), 10-38.
doi:http://dx.doi.org/10.1108/ICS-07-2016-0061 Accessed on 10/4/2019
Parkes, A. (2015). Lean management genesis. Management, [Online] 19(2), 106-121.
doi:http://dx.doi.org/10.1515/manment-2015-001 Accessed on 10/4/2019