Project: Toyota’s Risk Management and Operational Improvement Analysis

This project provides an analysis of Toyota's risk management and operational improvement strategies, addressing challenges such as customer dissatisfaction, supply chain issues, and production slowdowns. It advises Toyota to engage a new operations manager and implement risk management strategies such as avoidance, retention, shaping, transferring, and loss prevention. The study also explores operation improvement strategies, including setting measurable goals and continuously tracking progress to address imbalances in demand and supply. The ultimate aim is to enhance efficiency, improve product quality, and regain market share through effective resource management and strategic planning. The document is available on Desklib, a platform providing a wealth of study resources for students.

Project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Advise for Toyota........................................................................................................................3
Implementation of risk management strategy for minimize risk.................................................4
Understanding the concept of operations improvement strategy along with analysing the
operation improvement strategy for the Toyota...........................................................................6
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Organization is develops by application, identification, proper planing, methodological
and observation of multiple aspects and in competitive market world individual origination
performance influence by their competitive product and industry. Manufacturing industry has
responsibility that they apply proper structure and mainly operational activity including with
supply chain management. Operation manger manly decide to improve quality of product ans
reduce origination risk (Søreid and et.al., 2020). Toyota industry is all above autonomy industry
in Japan. They provide their services in international market, and they play effective role in
market share as well. This industry decide to provide their services in America but their people
evaluate that their product quality is not much effective so it impacts on their selling activity and
decline in Japanese production activity influence export activities of Toyota industry. This study
will provide information about organization engage operation manager for risk management and
quality management in industry and organization top management and individual department
members consider to use operation improvement strategy for business performance
improvement.
MAIN BODY
Advise for Toyota
One of the most essential term that organization constituently implement evaluate their
work program identification. Toyota face major challenges from operational activity, so they
decide to engage new operation manager. Thus, their production activity is getting slow from
long time and their quality of product and services also influence revenue generate process.
Organization when decide that they provide autonomy production services., they have major
responsibility to mainly quality and continues production process for product export in different
country. On the basis of evaluation their production activity very slows because of resources
unavailability (Borges and et.al., 2020). Its very clear that when origination not develop proper
structure and not engage timely raw material and employee performance evolution it influences
their overall business activity. So its essential that Toyota industry engage effective operation
manager which have experience to manage operation process to deliver and distribution of
product in according to requirement basis. Major risk factors faces by Toyota production process
like operational, technological, financial, resources unavailability,

Implementation of risk management strategy for minimize risk
Risks of Toyota industry: Toyota organization mainly face challenges from customer
dissatisfaction because of their slow production and their product quality issue, and they not able
to manage their supply chain activity. So it badly affects their activity and customer not satisfy
with their production process and quality. Dissatisfaction of audience reduce organization
reputation. In America, they not service properly because of their higher competitive market,
when Toyota industry not selling their services within specific time and on the basis of
requirement their audience affects, and they decide they buy different organization services. And
also their competitive market because US has also multiple autonomy industry which also
produce cars so survives in the competitive market is also challenging task. So its very clear that
Toyota industry has to consider and applies risk management strategies for stability improvement
in operation activities are as follows,
Risk management strategies: Application of risk management strategies makes stability and its
very useful for managing unwanted or unconditional risk. Idea about proper strategies of risk can
be properly managing and organization influence their performance with solution development
(Obrenovic and e.al., 2020). Industry when decide that they provide service in intentional market
they have to develop risk factors criteria as well because its provides idea to manage
performance with identification and evolution process.
Avoidance: Consideration of this method and practice provide idea to manage and control risk
before it happened. Risk management mainly develop for the managing damages and evaluation
and right investment within identification of financial conditions of organization. Operation
management has power to control waste or expenses and develop higher efficiency in production
activity, but in case they have no good amount for specific resource engagement in production
activity, and they face challenges they have to apply avoidance with eliminating risk and
diversity practice engagement in business activities.
Toyota face major risk from their slow production and less availability of resources. Idea
about this term its very clear that they have to engage investors and reach development which
have good amount of raw material for operation process effectiveness, and they have to consider

strategic plan and evaluate which major terms affects so identification process develop avoidance
practice.
Retention:
This practice of risk management strategy mainly influenced performance base activity it
mainly influences by the identification and consideration of cost association which means
industry when decide to they do manufacturing process they have responsibility to maintain risk
with easier manner if the have fu insurance protection (Proietti, Gaboardi and Giusti, 2020).
In context to Toyota industry its major important term that individual consideration about
this activity its very clear that individual organization like Toyota if consider that they have to
improve their operation services they have to engage operation manager advices which have
skills to resolve problems. And senior management has to consideration that they implement
insurance policies in of employee and overall operation, so they feel most safe when they
perform task and it positively affects employee working behaviour as well. This organization
activity mainly influence by their quality and export of product fewer and low so it affects people
attraction and reduces risk in origination activity.
Shaping:
Managing and involving practices and develop production activities for reduce risk
factors of organization. Implementation and consideration of multiple activities makes better idea
and develop proportionate about risk diversity. Industry operation management risk also
generates by when marketing and selling department not provide information and financial
department also not provide idea about selling promotion and revenues generate activity.
Financial term affects when selling activity influence, operational management activities affects
when they have lack of resources and their manufacturing production process not proper. Idea
about this activity makes better understanding and individual has to decide and implement
activities which is useful for production process effectiveness.
Transferring:
Shifting activities and practice which means risk management uses strategy to resolve
problem it identifies that one department provide risk to other department. On the basis of this
strategy organization has responsibility to manage and prepares insurance policies. In context to
case study of Toyota mainly refers to activities which is affects by the performance of operation
process. Production process has to management identifies their risk factors if raw material

provider not provides timely raw material it affects their activities, so its essential that quality
control activity mainly done by seniors, and they have to continuously evaluate and decide
factors which require some more effectiveness, so they engage raw material accordingly.
Knowledge about this activity its very clear that Toyota can increase and manage operational risk
issues with proper manner. Because they have idea to diversify risk with control and
management strategy to reduce challenging factors.
Loss prevention and reduction:
Consideration and application of strategic approaches provide substantiality knowledge
about this term its essential that organization evaluate which country people not satisfy and
which things they have to develop for improvement people attraction and reduce risk issues.
Attempts some basic techniques and practices like they can engage new resource and try to
improve and implement material which has good quality (Dexter and et.al., 2020). Utilization of
techniques and evolutional terms for success engagement in business activities. This organization
mainly face risk for slow production process and resource shortage, so they can effectively
manager by import of raw materials and engage some techniques for solution development and
implementation in work process.
So its clear that Toyota industry face production process and quality issues they can
easily resolve this challenging aspects and manage goodwill effectively. Because perfect and
effective utilization of resource makes idea to develop higher efficiency and its useful to manage
and develop factors which aspects their performance and task completion. Time management,
employee performance, operation process. Application of risk management practice Toyota
organization and business can influence their performance with positive manner because it
provides clarity that which things are suitable for improvement in business activities. Idea about
this techniques like they have to engage raw material for other seller and contentiously checking
activity development in production process makes higher efficiency in business.
Understanding the concept of operations improvement strategy along with analysing the
operation improvement strategy for the Toyota
From the case study, it has been analysed that Toyota has faced the extreme disasters in the
growth process. The production of the firm downs up to the ratio of 60% The firm face the
shortage of resources due to the natural disaster that has been take place in the Japan. The rivalry

firm of the company becomes more stable than the Toyota, the company is going through the
worst situation. Company has come on a point where the demand-supply ratio gets imbalanced.
The demand for the company's product is high in the market and in comparison of that the supply
for the product is highly less. (Abdulghani and Attia, 2021). This is the situation of “Supply not
matching the demand”. In such situation, the company needs to adopt new strategies so the
market share can be gained again. And the formulation of new decision and policies has been
done by the company and the company again touch the rate of success.
The company is facing the situation of not meeting the demand of the customer. As a
result, the customers are getting unsatisfied. This impacting the goodwill of the company as well.
The prior focus of the firm should be on improving the operations of the firm. So, the firm is able
to meet up the demand of the products in the international market. In order to adopt the tools and
techniques of operations strategy it is important to know the concept of these operation
strategies. The operations strategies refers to those strategies that ensures the long term plan for
the arranging the resources in terms of producing the primary goods and services of the
company. Toyota has faced the situation of declining in the ratio of delivering products in the
market. Therefore, these strategies will provide base to the company in relation of improving
their operations. And this further results in improving the over all productivity of the firm.
It has been found from various resources, that, the organizational strategies are linked
with the operational strategies. if the company has effective operational strategy then it results in
effective organization strategy. For example: it has been found from the case study that, Toyota
was not able to meet up the demand of the customers. This resulted in decreasing the growth
ratio of the company. As the operation element of the business plays the vital role in increasing
the efficiency of the business. The improvement in operation results in producing more and
effective output. This is the prior objective of the business. In order to regain the market share
Toyota needs to adopt an effective operation strategy in order to increase the outcomes of the
company and for resolving the issue of demand-supply imbalanced ration. In order to understand
this with clearance, here are the tools and techniques of improving the operations strategy of the
Toyota:
Set measurable goals and track the progress continuously- The prior focus the operation
strategy is to increase the efficiency of the operations. The company should decide their goal and
the goal should be measured. (Zheng and et.al., 2018). The major goal of the Toyota is to

increase the production process so the demand can be meet up. Goal of the firm should include
various alternatives of the operation as well. For example: the time management and resource
allocation is the prior elements in setting the goal. After setting up the goal a keen observation is
needed to made on the performance of the workers in the company. This ensures that the
activities are taking towards the completion of the goal.
Review and take time to refine the business processes- Improvement of the operational
effectiveness from refining the processes of daily operations is crucial. In order to solve this
issue, the company must focus on the repeatable work. For example: Toyota is adopting the
effective operation strategy for re-gaining the position in the market. Performing all those steps
again will result in consuming large time and extra efforts. Therefore, the company must use
some effective planning or strategies from their previous successful operations. So, this will help
in saving the time and a new strategy will be prepared by considering the past and future as well.
Streamline the communications- As the demand is high in the market, firstly the company
should analyse that what innovation has been demanded by the customers in the market. In order
to know this, the firm must focus on engaging with the customer management group. This will
provide the idea of the type of demand that has been made by the customers. This may include
another new innovations demanded by the customers. (LIU and LIU, 2017). As Toyota will start
its production again. Then this should be done on adding the variety that has been demanded by
the customer. This will result in providing immense satisfaction to the customer. This system
runs by streamlining the information of the company towards the customers. Any query or
opinion by the customer has been taken into the consideration. This results in gaining the
attention of the customers in the favour of the organization.
Leverage technology- In order to increase the operational efficiency it is mandatory to have
knowledge regarding the accurate data in relation of project management, finance and
operations. This results in adding more glory in the concept of operation management. The
company must use new inventory management software or any suitable software. The software
automation & action reports helps in providing the gathered data in accurate manner. The better
understanding of the data is required in order to form the new policies regarding increasing the
operational efficiency. This software should include the report of the profitable suppliers. The
suppliers that has ben proven profitable in the past should be considered by the firm. The major

benefit of using this technology is that all the information that is mandatory for the company will
be available at one place.
Outsource IT task- Considering this will result in providing benefit to the firm. The IT
outsourcing refers to using of external services in order to deliver the IT services. Under this, the
services has been provided in relation of solving the issues of business. Toyota is one of the
biggest motor corporation. Company can have its own particular department of IT. But, the prior
focus of the firm should be on delivering the demanded outcomes in the market. Therefore, the
firm should approach the IT services. (Nilsson and Zhou, 2020). This result in providing the
relevant information regarding the market to the firm and along with this, it will save time for the
firm.
Lean- This tool of increasing the operational efficiency has been organized by the Toyota itself,
the company can further use this tool for improving their operational efficiency. The principle of
lean works on the basis of metrics along with involving the customer component. This tool
enables the organization to have effective output in repeatable form. This tool has introduces the
concept of transparency in the business. (Lawhorn and et.al., 2018). Under this, the company can
highlight the major issue that has been facing by the company the alternatives of those issues.
The alternatives or solutions has been introduced for adopting it on regular basis. This is
important to highlight key issue so, every member can be aware about the issues and the methods
that are needed to perform for solving.
Six Sigma- These tools are defined as the problem solving tool for the company. These tools are
used for increasing the quality improvement of the production process. These tool helps in
analysing the defects in the quality production. This tool is completely for solving the company's
problem. The customer review are not taken in account under this, the methodology of this tool
focus on increasing the quality output. (Pereira and et.al., 2019). Toyota can use this tool, this
will enable the firm to prepare different charts and graphs that represent the data in relation of
the mistakes and defects has been made under the production process. This tool also timely make
aware the firm about their mistakes. So, the firm does not has to face loss.
Benchmarking- This refers to set of standardized data in order to make comparison of the data
against the rivalry firms. This results in providing the guidance to Toyota that the firm is stable
in the competitive scenario or not. The major focus under this, has to be put on the collection of
data. The data that has been gathered under this should be strong and relevant it provides various

ideas to the firm. For example: These tool enable the Toyota in terms of knowing what their
competitor is planning. On the basis of this, the company will form that decision which leads to
show uniqueness in the outcomes of the Toyota. Understanding the competition is one of the
vital element in improving the operation of the company. This tool provides the idea regarding
the best policies or decision that makes the firm apart from their competitors.
CONCLUSION
It has been summarized form the above reflective study that organization has multiple
reprehensibility if they decide to influence their performance they have to use risk management
strategic because its useful for resolve problems and multiple aspects. It has been clear that
Toyota industry manage their performance with effective manner when they decide to engage
effective production process and recruit experienced operation manager, so they have potential to
manage develop more efficiency in production activity because they have clarity about
management of production process efficient manner. IT has been very clear from the report that
Toyota implement operations improvement strategy which develop higher efficiency and
application of tools and techniques of operation process makes higher effectiveness in supply
chain management process of Toyota industry and its most sustainable and suitable aspect for
business growth. From the identification of risk factors its has been very clear that business when
they decide to manage risk they have to consider and applies five major risk management
strategies.

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