Case Study Of Toyota Motor Corporation ( Or Toyota )

1220 WordsApr 4, 20175 Pages
Operations and Productivity In the global business environment, success of an organization is based on several factors. Namely, the capital required to start and maintain the organization, human resource component, and the influence of stakeholders. Theories and strategies have been developed, and their efficient integration ensures that the company can achieve its organizational goals. However, the interaction of these factors needs a framework based on the operational capability of the organization. Operations management facilitates the transfer of theoretical policies and decisions into tangible products, which an organization can offer to its clients. Without the utilization of operations management, different departments cannot work…show more content…
As a result, any decrease in the level of quality is likely to have severe repercussions to the organization. One of the telling signs of the quality decrease has been the number of recalls since 2009. Over the seven-year period, there have been three recalls due to the defects noticed in a significantly large number of vehicles (Rankin, 2014). According to Rankin (2014), an estimated 9 million vehicles were affected in a recall in 2009, approximately 7 million automobiles were recalled in 2012, and approximately 7 million vehicles were recalled by Toyota USA in 2014.The issues that led to the recalls were related to the manufacturing process, which fellunder the operations management. Toyota needed to maintain the same level of quality in all its global operations (‘Toyota Production System, ' n.d.). Nonetheless, thatproved difficult due toregional decentralization of Toyota plants. The company’ssuccess was hinged on the Toyota Production System (TPS) which wasan operational system used in the manufacturing of vehicles. The difficulty in relaying this system to its global manufacturing plants led to issues concerning the quality of vehicles produced(‘Toyota Production System, ' n.d.). That problem caused the recalls experienced in the seven-year period, which in turnled tosignificantly adverse implications to the operations of the company. Toyota Production System The companyuses the Toyota Production System (TPS) along the entire length of its

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