Operation Improvement Plan

2875 Words Oct 7th, 2012 12 Pages
Operations Improvement Plan

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MBA6022

Strategic Operations Management

Address: XXXXXXXXXXXXx

E-mail: xxxxx

Instructor: Dr. Zhimin Huang

Abstract

This operation improvement plan is to help improve the internal communication process at Toyota between their employees and management. There has been a loss of ideas and knowledge, which is a complete violation of their founding principles defined in the Toyota Way. With the suggested recommendations, Toyota can once again reclaim its dominance in the world automobile market while at the same time improving their operational efficiency and quality.

Table of Contents

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Toyota’s Key Challenges

“Toyota’s information and decision making has been highly centralized. The result: Top management in Japan has been less sensitive to the expectations of regulators, culture and politics in overseas markets, and consequently, they have been slower to respond to local problems. The reality is that Toyota’s problems were not caused by a faulty production system but by poor management decisions” (Cole, 2011, pg. 34). In the past, Toyota was a company that trained employees to embrace the Toyota Way and pushed their employees to strive for continuous improvement and perfection. The upper management at Toyota has strayed away from their core; founding principles that empowered their employees and contributed to making them a successful automobile manufacturing juggernaut. A major source for of their ongoing improvement and innovation has been from employees.

An analysis has been done for Toyota’s management team, Appendix A, E and F, to show the root causes and how these root causes affect the internal communication process of ideas, concerns and knowledge between Toyota’s upper management and its foreign-based employees. To summarize the problem into a statement: “The Toyota Way and TPS places heavy emphasis teamwork, employee empowerment and striving for continual improvement and perfection. To ensure these principles are always understood and embraced, Toyota’s management needs to be committed to making sure