Essay Operations Improvement Plan

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U06a1 Operations Improvement Plan Jessica Horlacher Capella University MBA 6022 February 16, 2012 Dr. Huang Executive Summary Toyota is one of the leading vehicle manufactures in the world and has faced some challenges throughout the years. This paper will discuss a key issue that Toyota has faced and how they can utilize communication software to improve the business relationship between supplier and Toyota. Operations Improvement Plan Introduction Toyota Overview Toyota is one of the leading manufacturers of vehicles in the United States and across the globe. Toyota is ranked #55 in Forbes, World’s Biggest Public Companies, and capturing sales of 202.8 billion and a market cap of 137.8 billion as of March 2011…show more content…
Communication is the most important aspect of conducting business. Toyota must improve their means of communication and it must start at the beginning of the customer/supplier relationship. The Process Flow chart will identify the communication process between Toyota and supplier is further updated to show improved processes. Expectations should be established to ensure that suppliers are providing the quality products that represent the Toyota brand. Currently, Toyota has sacrificed quality and safety to meet the demands of the customers. Toyota must take into consideration the market they enter and the major players that exist to provide the support necessary. Toyota uses the Annual Purchasing Policy process to communicate their expectations to suppliers. “The purpose of supplier expectations is to highlight key priority activities and emphasize broader, more philosophical issues universal to all suppliers (, 2012).” In addition, “individual expectations, on the other hand, are developed uniquely for each supplier and include specific targets in the key areas of quality, delivery, value improvement and minority sourcing (,
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