QAB020N502A: Toyota's Operations, Logistics, and Supply Chain Analysis

This report delves into Toyota's operations, logistics, and supply chain management, focusing on key areas such as managing quality and people. It examines Toyota's implementation of Total Quality Management, capacity planning, and Just-in-Time techniques to enhance production efficiency and customer satisfaction. The report highlights Toyota's approach to people management, emphasizing diversity and employee empowerment through the 'Toyota Way' principles. It further discusses potential areas for improvement, including inventory management and distribution strategies, to optimize supply chain performance. The analysis incorporates relevant examples and applies operations management solutions, concluding with recommendations for continued success. This assignment is based on the QAB020N502A module. The report also provides an overview of the Toyota Production System (TPS) and Lewin's change management model.

Logistics and Supply
chain management

Table of Contents
INTRODUCTION...........................................................................................................................3
Areas which are selected for managing operations and logistics and supply chain
management................................................................................................................................4
Discussion with relevant and similar example(s) and applying appropriate solutions of
Operations Management.............................................................................................................7
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................10
........................................................................................................................10

INTRODUCTION
Logistics management means the inbound as well as outbound transportation
manaagement,warehousing, handling all goods, planning for both supply and demand of third
party logistic providers. It manages all logistic activities involving other functions like
marketing, finance, sales and so on. It is considered as a part of supply chain management which
perform certain activities like planning, implementing, control and reverse flow of various goods
and information related to it right from origin till consumption to meet consumer requirements.
The below report includes key operations, theories of logistic and supply chain management,
solutions of operation management with examples, conclusion and recommendation. The below
report depends on two areas; managing quality and managing people. The report is based on
Toyota. It is a japanese multinational automotive company which has headquarter in Japan. It
was founded on 28 August,1937 by Kiichiro Toyoda (Govindan and et.al,2018).
MAIN BODY
Areas which are selected for managing operations and logistics and supply chain management.
Managing Quality:- It means to perform all tasks and activities which must be fulfilled
to achieve desired position. It focuses on objectives by implementing short term initiatives.
Quality management is done to increase satisfaction for consumers and maintain loyalty in
organisation. There are certain key operations in managing quality of organisation like customer
focus, leadership, engagement of people, process, continuous improvement, decision making,
managing relation. In terms of customer focus, there are various expectations of customers so
organisation must fulfill all needs of them so that they can earn more profits as well as increase
loyalty. In terms of leadership, there should be unity among all workforce and a positive culture
should be there as well as if company makes any plan for achieving goals then all empployees
must be part of it. There should proper engagement of people also(Tu, 2018).Organisation should
encourage employees to enhance their skills. It is very important for organisation to perform all
activities in an efficient as well as effective manner. So, a proper process should be followed. In
an organisation performance should be continuously improved, proper decision making should
be done and effective relation should be there between suppliers and retailers. In terms of
Toyota, they managed its quality through the concept of total quality management. In this , there

are self-driven motives, employee empowerment by initiating vision as well as mission to
achieve business goals. According to report it was analysed that Total quality management was
successful because proper management in organisation and effective workforce. They focused
mainly on two things; meeting customer expectations and needs and considering customers
personal interest also. Toyota follows capacity planning theory in logistic and supply
management. Capacity planning in a company is considered as a part of supply chain
management(Sweeney, Grant and Mangan, 2018).As Toyota followed this theory so their main
focus was to eliminate inventory and rely on pull system which led to only one objective that is
continuous improvement. Toyota secured its capacity using two ways ; controling production
and managing workforce. In terms of controlling production, it is based on deploying flexible
capacity in every stage so that time can be saved or customers demand What are lean
management techniques can be fulfilled. In context with workforce management all employees
should follow the concept of people centered so that demands can be fulfilled an
doverproduction must be avoided. Toyota also used Just in Time technique to manage its
inventory. This technique was applied mainly for improving productivity. The main focus was
on “ What is needed, when it needed and in what amount. Production quality will be improved
by efficiently removing inconsistencies, waste and requirements which are not needed on
production line. It is necessary to deliver a vehicle as soon as possible. So, company followed a
process in which when a vehicle is orderded instruction related to production must be given to
production line so that they must have full stock of all needed parts and they must relace all parts
according to earlier production process and production process should have all type of parts and
produce only those parts which were retreived by operator(Garver, 2019).
Managing people in operation and supply chain :- In an organisation people management must
be effectively done. People management means various practices which includes end-to-end
process in relation with talent acquisition, retention and optimisation through continuous support
and guidance to all employees. It involve various things related to how people work, behave and
grow in organisation. The key operations in managing people is create, comprehend,
communicate, collaborateand confront.In context with process of create, proper management of
workforce is necessary so that future can be built up. The right tools should be provided and right
employees for an organisation. It is also important to understand present as well as future. All
employees working in organisation are different so their skills should be properly

understood(Verhoeven, Sinn and Herden, 2018). There must be effective channels to
communicate with people through which effective management can be done. There must be
efficient tools so that it lead to better results and organisation must perceive diversity to avoid
conflicts. In terms of Toyota, they focused on developing human resources through positive
culture and enhancing safety for people(Wamba and et.al, 2018). The strength of Toyota is that
they respect all employees and maintain diversity in workplace. There is no discrimination being
done on bais of gender, caste, religion, age, disabilities and so on. Managing people in context
with diversity is main strategy for company and initiating various measures to promote diversity.
The theory which was used by Toyota was “ The Toyota way”. It is a complete different
approach applicable to lean management which describes values and methods that all people
should apply in their regular work and at each level of company. Through the concept of Toyota
way, it helps to keep pace and always remain effective for development as well as improvement.
The Toyota way consideres two elements continuous improvement and respect for people(ijm
and et.al,2019). For managing people in an organisation, Toyota used a technique of Managing
diversity. Diversity must be included in process of hiring. During the process of hiring, they
ensured that diverse candidates must be chosen. The organisation create talent pipelines through
which connections are built and effective culture is maintained. The company also faced certain
challenges while managing diversity so through this effective leadership must be maintained. It
is also necesaary to examine all policies to avoid inequality. It is also important to maintain a
culture which lead to empathy and forgiveness. There are certain potential areas for improvement
like inventory management, improving distrubution work, devise distribution strategy,
segregating supply chain strategies, cash control of suppliers, implementing modern supply chain
management and so on. Inventory management means that organisation must ensure that there is
a proper balance between stock and meeting customer demands. Customer can demand for stock
at any point of time so inventory management must be effectively done. The distribution network
must be maintained properly so that effective supply chain management is there. It includes two
elements sales strategy as well as delivery tracking. Distribution strategy must be good so that
effective framework can be maintained for supplier management. It is also necessary that supply
chain strategies are effectively made which involves innovation of products, superior services so
that supply chain role is done in a proper manner while delivering(Waters, 2019).

Discussion with relevant and similar example(s) and applying appropriate solutions of
Operations Management
Toyota Motor Corporations operations management undertake effective and efficient
number of operations that are performed at global level for operating and managing all
operations in an appropriate manner. Quality is recognised as a crucial aspects for organisation
and it is used to perform and manage operations with strategic approach that improves overall
productivity of operations management. Example- Toyota address decisions for complete of all
operations with use of effective technology through implementing technological advancement
and quality. Research and Development investment ensure about advanced features which is
used for improving overall efficiency of company operations(Springer and et.al, 2018). Along
with this Toyota integrates dealership programmes and it states about understand and identify of
methods which is used to design after sale service. This refers Toyota management introduce
plan that integrate and design policy through which problem faced by consumer related with
vehicle is understand. Further, quality related problems generate challenges for Toyota
management because it impact on company goodwill and sale of it's products. Quality
management is a strategy and this is used for enhancing overall quality and this aids (TPS)
Toyota production system to analyse as well as understand key factors and it is used to address
strategic issue related with operations management. Toyota introduce and adopt different
management principles and it helps to control and manage quality of company operations in
constant manner(Lai,Sun and Ren, 2018Z).
Human resources are an important asset of organisation and this is used for development
of operations through which competitive-edge is formulated by Toyota. Along with this all
functions and operations of Toyota and other organisation are performed by engagement of
skilled workforce. In the context of human resources and workforce of Toyota all strategic
decisions are implemented by company with Toyota way and TPS systems. It is stated according
to company operations. Moreover, firm emphasizes about on all those areas which is required by
organisation for implement of strategic decisions through which persons are recruited according
as per HR policy and program of Toyota. Training and development perform an important role
for all businesses(Zijm and et.al,2019).From perspective of Toyota, management manage and
complete their operations with integrate of training programmes that aids HR and supervisor to
control company functions in an appropriate manner. TPS (Toyota production system) is

explained as an effective programmes and it is used to perform work with lean manufacturing
practice.
On the other side, due to expansion of business at global level workforce face challenges to
adopt systems. So Toyota authorities and HR adopt Lewin's change management model and it is
recognised as a simple and easy method to understand framework for managing change.
Moreover, by implementing unfreezing, change and refreeze steps of model Toyota authorities
motivate workforce through demonstrating steps which is used to accept that change are
necessary. It aids persons to break down status that build in development of new ways for
operating business. Further, turnover of workforce is also controlled by management through
compelling ways which support persons to motivate individuals through identifying easy
methods to perform work and operations of Toyota(Fernie and Sparks, 2018).
CONCLUSION
According to above analysis it is concluded that, in an organsation managing quality and
managing people is the most important area for an organisation. While managing quality it is
necessary that all products should be of good quality and customer satisfaction must be
improved. In an organisation it is necessary that the focus must be on all customers and their
working and ensure that continuous improvement is done. To grow in each sector it is necessary
that people management is effectively done in which right tools are provided and right people are
hired and must ensure that in organisation diversity must be there. There should be no
discrimination being done on the basis of caste, race, religion, gender, age and so on. It is also
analysed that human resources are the most important element for organisation as it helps in
development of operations for an organisation. In an organisation both quality managemnet as
well as people management is necessary to maintain customer loyalty and their satisfaction. To
enhance and maintain effective supply chain management all areas should be considered.
RECOMMENDATION
As company faced certain challenges while maintaining diversity at the workplace and
adopt systems while expanding the company at a global workplace. Maintaing diversity is an
important aspect for company so it is recommended that effective leadership is there across
whole workplace. There are different theories and techniques which an organisation can use for
its effective workplace like Lean manufacturing, Just in time so organisation must use those

models and techniques which are effective for them. Every organisation face challenges so it is
recommended that they should handle all those challenges while maintaining efficiency in
organisation and managing all people and product quality with efficiency.

REFERENCES
Books and Journals
Fernie, J. and Sparks, L.eds., 2018.Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Garver, M.S., 2019. Threats to the validity of logistics and supply chain management
research.Journal of Business Logistics,40(1), pp.30-43.
Govindan, K., and et.al,2018. Big data analytics and application for logistics and supply chain
management.
Lai, Y., Sun, H. and Ren, J., 2018. Understanding the determinants of big data analytics (BDA)
adoption in logistics and supply chain management.The International Journal of
Logistics Management.
Springer, and et.al, 2018. Examples from blockchain implementations in logistics and supply
chain management: exploring the mindful use of a new technology.Logistics,2(3), p.20.
Sweeney, E., Grant, D.B. and Mangan, D.J., 2018. Strategic adoption of logistics and supply
chain management.International Journal of Operations & Production Management.
Tu, M., 2018. An exploratory study of Internet of Things (IoT) adoption intention in logistics
and supply chain management.The International Journal of Logistics Management.
Verhoeven, P., Sinn, F. and Herden, T.T., 2018. Examples from blockchain implementations in
logistics and supply chain management: exploring the mindful use of a new
technology.Logistics,2(3), p.20.
Wamba, S.F., and et.al, 2018. Big data analytics in logistics and supply chain management.The
International Journal of Logistics Management.
Waters, C.D.J., 2019.Logistics: an introduction to supply chain management. Red Globe Press.
Zijm, H., and et.al,2019. Operations, Logistics and Supply Chain Management: Definitions and
Objectives. In Operations, Logistics and Supply Chain Management(pp. 27-42. )
Zijm, H., and et.al,2019.Operations, logistics and supply chain management. Berlin: Springer.