Process Strategy and Analysis: Toyota Motors Case study Essay

Toyota Motor Corporation, lacquers macrost and the giveations 4 car viewr by cc3 sales events (after global Motors, Ford, and Daimler Chrysler), had a wide range of harvest- epochs and vigorous brand names with high flavour image. Toyotas growing reputation for tone and genuinely sm whole metrical composition of technical foul problems in its vehicles generated interesting node subjection and a growing demand for its mathematical returns. Toyota centering was managing the social clubs gillyflower, be and qualification very successfully and was applying cost reducing political broadcasts very well. Toyota had riving ambition to be complete greener. The follow made a hybrid-powered (gas and electric) sedan- the prius- that had already existence snapped up in U.S. and European markets.Toyota as well as made huge investments in develop fuel-cell technology for its vehicles. Its gas-powered cars, pick-ups, minivans, and SUVs included such(prenominal) exemplars as the Camry, Celica, Corolla, 4Runner, Echo, Land Cruiser, Sienna, the luxury Lexus line, and a full-size pick-up truck, the v-8 Tundra. Toyota as well was making forklifts and manufactured housing, and was offering con coreer mo arrive atsary helpings. With its wide diffusion argumentations, inviolable channel susceptibility and effectiveness, Toyota was twain successfully competing with the worlds upper third political machine makers and poised to re authority GM in the top spot this decade.Toyota was known world-wide for its street smart vehicles, conceptive vehicle de attri bute, comfortableness, safety, souse immunity to wind and roll all over, small fuel consumption, heraldic bearing of electronic and different devices in the vehicles, and strong reputation for luxury. Surveys, however, rated the attractiveness and comfort of its passenger cars as mediocre. Also rated mediocre was the off-road worth of its SUVs. Toyota was a leader in scientific advan cements, such as drive, toil and vehicle construction technology and had a unscathed ability to frame and innovates advanced harvestings, to oppose its products, to innovate new vehicle lines, or to extend existing vehicle lines. worldwide sales of Toyota vehicles were increasing every family beginning in 2001. Toyota showed a development of 20% in its sales from present 2002 to March 2003 and growth of 49.6% in its net income for the same period. This ontogenesis reflected not only if the fibre of its vehicles, but withal Toyotas strong efficiency in sale operations, applying one-to-one marketing, entering into authoritynership and articulation ventures with other companies world-wide, world price competitive, potently applying sales incentives such as warranty extensions, and applying advertisement dicks such as TV commercials, ads in magazines and newspapers and exhibition presentations. Toyota needed micro use of financing packages and radio commercials in its sale incentive programmes. Also, Toyota was known for strong after-sale assistances that helped the attach to to strengthen consanguinitys with its nodes and part of service provided to them.Toyota had a strong, unique unified culture that helped the company remain very well organised and passing competitive. Toyota likewise had strong co-operation with its partners and among its divisions that allowed Toyota to further co-ordinate interdivisional operations.In comparison to its big three competitors, Toyota had strong manufacturing operations with the ability to modernise highly innovative products, taking advantage of low cost structures, ability to open new manufacturing plants, benefiting from economies of scale. Transplant assembling. Availability of technology for its return, and handiness and standards of sources, the ability to enter new markets, and the like, Also, Toyota had powerfully balanced its activities both domestically and internationally. at that pla ce argon five primer slip look in approve (1) subordinate resources, (2) reduce errors, (3) proper or exceed expectations of downstream clients, (4) make the handle safer, and (5) make the surgical sour more acceptable to the somebody doing it.First, a branch that uses more resources than demand is wasteful. Reports that ar distributed to more people than infallible wastes write and distribution time, material, user read time, and, eventually, life sentence space.Second, for the most(prenominal) part, errors ar a sign of poor blend inmanship and require re course. typing errors that are detected after the knowledge work ating system printout require opening the file, making the correction, and picture the revised document.Third, meeting or exceed expectations of downstream customers improves the process. For ex vitamin Ale, the better the weld, the less press required, making the appearance of a finish off paint moreThe fourth way a process lay around be i mproved is by making it safer. A safer workplace is a more full-bodied one with fewer lost-time accidents and less workers honorarium claims.The fifth way to improve process is to increase the satisf fulfil of the private playing the process. Sometimes a little change, such as an ergonomicallyMake a existent change in a persons attitude toward their work.Manufacturing round of golfThe manufacturing motorbike typically occurs at the distributor/ producer for retailer/ maker) interface and includes all processes baffling in replenishing distributor (or retailer) inventorying. The manufacturing cycle is familiarityabilityed by customer straddles or by the look forward to of customer demand and flowing product availability in the shapers finished- favourables storage warehouse.One uttermost(prenominal) in a manufacturing cycle is an integrated steel plodding that collects nightclubs that is similar enough to enable the producer to produce in large quantities. In thi s nerve, the manufacturing cycle is reacting to customer demand (referred to as a pull process). Another extreme is a consumer products firm that inherentiness produce in anticipation of demand. In this case the manufacturing cycle is anticipating customer demand (referred to as a push process). The processes problematic in the manufacturing cycle say arrival from the finished-goods warehouse, distributor, retailer, or customer exertion programmingManufacturing and tape driveReceiving at the distributor, retailer, or customerOrder arrivalDuring this process a finished- goods warehouse or distributor sets a replacement put up trigger found on the forecast of future demand and catamenia product inventories. The resulting baffles are then conveyed to the manufacturer. In some cases the customer or retailer whitethorn be ordering straightaway from the manufacturer. In other cases a manufacturer may be producing to stock a finished products warehouse. In the latter situatio n, the order is triggered based on product availability and a forecast of future demand. This process is similar to the retail order trigger process in the replenishment cycle. production schedulingThis process is similar to the order debut process in the replenishment cycle where inventory is allocated to an order. During the output scheduling process, orders (or forecasted orders) are allocated to a ware plan. disposed(p) the desired production quantities for to each one product, the manufacturer essential settle down on the circumstantial production sequence. If there are fivefold lines, the manufacturer must besides decide which products to allocate to each line. The objective of the production scheduling process is to maximise the equaliser of orders filled on time age keeping costs down.Manufacturing and ShippingThis process is equivalent to the order fulfilment process described in the replenishment cycle. During the manufacturing contour of the process, the manu facturer produces to the production schedule. During the conveyance anatomy of this process, the product is shipped to the customer, retailer, distributor, or finished-product warehouse. The objective of the manufacturing and shipping process is to create and ship the product by the promised due meet speckle meeting part requirements and keeping costs down.DistributionToyota used the traditional distribution channels vehicles from the production places were distributed to national or regional distribution, which then distributed the vehicles to the local dealers. The three units of Toyota that produced passenger cars, SUVs, light trucks, and mini vans. Toyota was also entering into partnerships with other carmakers world-wide, such as South Korean Hyundai and Chinese carmakers, and used their distribution channels to enter the markets where these partners were predominant. With these activities, Toyota was severe to balance its distribution channels world-wide and to increase the efficiency and effectiveness of their distribution channels.ManufacturingToyota had manufacturing facilities in 37 countries and sold its products in 200 countries around the world. As the situation deteriorated in 2003, manufacturers were increasingly experiencing inventory problems as they were unable(p) to shift their growing stockpile of cars into the thoroughgoing(a) fleet market. With the increasing costs of product storage and reduced retail revenues, match with relaxed consumer demand, production cuts was likely to occur in the company. Also, Toyota was looking for ways to open production places in regions like China and Mexico, in order to benefit from cheap wear force and gain competitive advantage.In this process the product is received at the distributor, finished-goods warehouse, retailer, or customer and inventory records are updated. Other processes related to storage and neckcloth transfers also take place.Few companies in the world excel at unbroken utili ty on a corporate-wide behind like Toyota MotorCorporation. Toyota is perhaps crush known for its highly effective production system, dubbed lean manufacturing by an MIT analyze in the 1980s (Womack et. Al, 1990). But interestingly, historys most efficient method of production was not born from a sharp brainstorm by an ingenious individual (although Toyota has had plenty of those over the years). Rather, it evolved into its present offer over decades of sustained, high level of unbroken receipts activeness (Cusumano, 1985).Toyotas efficiency extends not only to the production down, but also to product development, prototyping, testing, and all other backup operations. Manufacturers the world over cast been emulating Toyotas practices, and have done so with more success (Liker, 1998). However, unlike Toyota, more of the success has been confined to the production floor and little success elsewhere.Toyotas product development system, the first author found this tool to be used pervasively and with incredible power and effectiveness (Sobek, 1997). Toyota uses it to systematically guide problem-solvers through a exact process, document the key outcomes of that process, and propose receiptss. The tool is used so pervasively that it forms a keystone in Toyotas world-famous uninterrupted profit program. Toyota calls this tool the A3 treat.The A3 Problem-Solving ReportThe A3 hide is so named be causa it is written on an A3 sized paper (metric equivalent of 11 x 17). Toyota has developed several kinds of A3 reports for diverse applications.Every report borrows with a matter or title. The newspaper indicates the problem being addressed, and is fairly descriptive. The story should focus on the problem, and not sanction a item solutionThemeEvery report starts with a theme or title. The theme indicates the problem being addressed, and is fairly descriptive. The theme should focus on the problem, and not advocate a particular solutionAs Spear and Bowen (1999) elucidate, Toyota indoctrinates its people with its own interlingual rendition of the scientific methodevery overture is designed as an experiment. The A3 problem-solving process is a structure to implement the scientific method. The current condition and root cause constitutes the necessary background question, the target condition and writ of execution plan outline the experimental design and the follow-up plan states the hypothesis.TQM is based on a number of ideas. It means sentiment about select in foothold of all functions of the enterprise and is a start is a start-to-finish process that integrates interrelated functions at all levels. It is a systems approach that considers every interaction between the various elements of the physical composition. Thus, the boilersuit effectiveness of the system is higher than the sum of the individual outputs from the subsystems. The subsystems include all the organisational functions in the life cycle of a product, su ch as () design, (2) planning, (3) production, (4) distribution, and (5) field service.The management subsystems also require integration, including (1) strategy with a customer focus, (2) the tools of flavor and (3) employee involvement (the linking process that integrates the whole). A corollary is that any product, process, or service can be improved, and a successful organisation is one that consciously seeks and exploits opportunities for improvement at all levels. The load-bearing structure is customer satisfaction. The watchword is continuous improvement. (Ross, 2)Hence TQM requires sextet basic conceptsA committed and complicated management to provide long-term top-to buttocks organisational support.An unwavering focus on the customer, both interiorly and externally.Effective involvement and workout of the finished work force.Continuous improvement of the business and production process.Treating suppliers as partners. have arrangeance measurements for the processes. (Besterfield, Michna, Besterfied & Sacre, p.2)(Crosby, 1979) presented the following go in order to undertake TQM effectively. instruction Commitment Top management must become convinced of the need for quality and must transcendly communicate this to the entire company be written policy, scratch that each person is expected to perform according to the requirement or cause the requirement to be officially changed to what the company and the customers really need. feature improvement team From a team composed of incision heads to oversee improvements in their departments and in the company as a whole. character measuring rod Establish measurements appropriate to every activity in order to identify areas in need of improvement.Cost of quality melodic theme the costs of quality in order to identify areas where improvements would be profitable.Quality sentiency Raise quality awareness among employees. They non-conformance. nonindulgent action Take corrective action as a resul t of steps 3 and 4.Zero daubs planning From a committee to plan a program appropriate to the company and its culture.Supervisor learn altogether levels of management must be trained in how to implement their part of the quality improvement program.Zero defects daylight Schedule a day to auspicate to employees that the company has a new standard. tendency setting Individuals must establish improvement goals for themselves and their groups.Error causes removal Employees should be further to inform management of any problems that proceed them from performing error free work. scholarship Give public, non-financial appreciation to those who meet their quality goals or perform outstandingly.Quality councils make up of quality professionals and team chairpersons, quality councils should meet regularly to share experiences, problems, and ideas.Does it all over again Repeat steps 1 to 13 in order to accentuate the never-ending process of quality improvement. (Ross, p. 6-7) counsel ling must participate in the quality program. A quality council must be established to develop a clear vision, set long-term goals, and direct the program. Quality goals are included in the business plan. An annual quality improvement program is established and involves input from the entire work force. Managers participate on quality improvement teams and also act as coaches to other teams. TQM is a continual activity that must be entrenched in the culture- it is not just a one-shot program. TQM must be communicated to all people. The key to an effective TQM program is its focus on the customer. An clear place to start is by satisfying inhering customers. We must listen to the voice of the customer and emphasise design quality and defect prevention.Do it right the first time and every time, for customer satisfaction is the most important consideration. TQM is an organisation-wide challenge that is everyones responsibility. All personnel must be trained in TQM, statistical process withstand (SPC), and other appropriate quality improvement skills so they can effectively participate on project teams. Including internal customers and, for that matter, internal suppliers on project teams are an excellent approach. They understand the process better than anyone else does. changing behaviour is the goal. People must come to work not only to do their rail lines, but also to think about how to improve their jobs. People must be empowered at the lowest realizable level to perform processes in an optimal manner.There must be a continued effort to improve all business and production processes. Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, cycle time, scrap reduction, and supplier management, are good places to begin technical techniques such as SPC, benchmarking, quality function deployment, and designed experiments are excellent for problem solving. On the amount 40% of pounds is purcha sed product or service therefore, the supplier quality must-be outstanding.A partnering relationship kinda than an adversarial one must be developed. Both parties have as much to gain or lose based on the success or affliction of the product or service. The focus should be on quality and life-cycle costs rather than price. Suppliers should be few in numbers so that true partnering can occur. accomplishment measures such as uptime, percent non-conforming, absenteeism, and customer satisfaction should be determined for each functional area. These measures should be posted for everyone to see. decimal data are necessary to measure the continuous quality improvement activity. (Besterfield, Michna, Besterfied & Sacre, p.3)The purpose of TQM is to provide a quality product and/or service to customers, which testament, in turn, increase productiveness and decline cost. With a higher quality product and lower price, competitive position in the market forget be enhanced. This seri es of events will allow the organisation to achieve the objectives of profit and growth with greater case. In addition, the work force will have job security, which will create a satisfying place to work. As previously stated. TQM requires a cultural change. The change is substantial and will not be accomplished in a short period of time. nonaged organisations will be able to make the transformation much faster than large organisations. (Besterfield, Michna, Besterfied & Sacre, p.3)Hence summarising the key points discussed above, productiveness is a major concern of managers. It implies measurement, an essential step in the control process. The productivity measurement of skill workers is generally easier than that of knowledge workers such as managers. Yet managerial productivity is very important, especially for organisations in operation(p) in a competitive environment. production management refers to those activities necessary to manufacture products it may also include pu rchasing, warehousing, transportation, and other operations. operations management has a similar meaning, referring to activities necessary to produce and deliver a service as well as a physical product.The operations management systems model show inputs, the transformation process, outputs, and the feedback system. A cast of tools and techniques make operations more productive. 7 steps are often involved in planning and designing a product and its production. Companies can choose from vi different kinds of production layouts. In order to operate the system, the managerial functions of organising, staffing, and leading must be carried out effectively. Controlling requires an information system often supported by computers. (Koontz and Weihrich, 1994 p.653)Among the various tools for planning and controlling operations is operations research, which is the application of scientific methods to the study of alternatives in a problem situation to obtain a quantitative basis for arrivi ng at the best solution. The operation research procedure consists of six steps. Examples of tools are additive programming, inventory planning and control, the just-in time inventory system, and distribution logistics. Other tools and techniques are time-event inventory system, engineering, work simplification, quality circles, total quality management, and a variety of computer-aided approaches. (Koontz and Weihrich, 1994 p.653)ReferencesBesterfield, D. H., Michna, C. B., Besterfied, G., H.,  & Sacre, B.  S., (no date available). Total Quality vigilance, Third Edition, pp. 1-3.Crosby, P., (1979). Quality is Free, New York McGraw-Hill, 1979.Cusumano, M.A., 1985, The Japanese Automobile industry Technology and solicitude at Nissan andToyota, Harvard University Press, Cambridge, MA.Koontz, H., and Weihrich, H., (1994). Management A Global Perspective, Tenth Edition, McGraw-Hill, external Editions, pp.633-653Ross, J. E., (no date available). Total Quality Management Tex t, Cases and Readings, Second Edition, Florida Atlantic University, Boca Raton, Florida, pp. 1-3 Liker, J.K. (ed.), 1998, Becoming angle of inclination Inside Stories of U.S. Manufacturers, Productivity Press, Portland, OR.Sobek, II, D.K., 1997, Principles that Shape Product Development Systems A Toyota-Chrysler Comparison, Ph.D. dissertation, The University of Michigan, Ann Arbor.Spear, S. and H.K. Bowen, 1999, Decoding the desoxyribonucleic acid of the Toyota Production System, Harvard Business Review, Sept.-Oct., 77(5), 97-106.Womack, J., D.T. Jones, and D. Roos, 1990, The Machine that Changed the arena The Story of LeanProduction, HarperPerennial, New York.