Swot Analysis Of Toyota 's Production System Essay

TOYOTA PRODUCTION SYSTEM (TPS) The TPS model depends on its Human Infrastructure. The entire model is base on its PEOPLE & TEAMWORK being successful in doing their job and there buy in to the Key Elements of the TPS culture, which are as follows;  Selection  Ringi decision making  Common Goals  Cross-Trained TPS emphasize the point of its human infrastructure as a “COMMON GOAL” for all personnel in the corporation, which again is emphasize that its employees are its greatest assets as shown by the

Fierce competition, fluctuating market demand and rising customer requirements has led to customers becoming more demanding with increased preferences (Zhang and Cheng, 2006). In, the 21 st century, participating largely in globalization has created significant opportunities, and at the same time, put pressure on the automotive industry manufacturers to enhance quality, improve styling, increase organizational efficiencies and drive innovative features into their products in an effort to attract customers and expand into new markets (BCC, 2005). This paper explores the concept of supply chain management with a case study of one of the greatest motor brands BMW. We will look at the supply chain strategy of the company and how successfully it

Toyota has a huge operation and distribution system around the global. Whereas it affiliates through more than 50 companies in 27 countries apart from Japan. These companies are produce automobile related parts and components for Toyota and also distribute vehicles to their related regions (Market line, 2014). This could be a major competitive advantage from other automobile manufacturers while Toyota geographically well spread and has wide distribution network than

AutoZone is a retailer and distributor of automotive replacement parts and accessories. With this retail market being saturated, AutoZone has faced tough competition from O’Reilly Automotive, Advance Auto, and Walmart. With the expansion of competition, over everything from price to parts availability, AutoZone decided to make an investment back into the business. Subsequently, AutoZone has strategically change the concept of its supply chain strategy to remain competitive. The changes includes increased frequency of delivery to stores and significantly expanded parts assortments in select mega hubs (Meek, 2017). In addition, more frequent deliveries facilitate lower part depth and higher breadth (Plexor, 2016). AutoZone has made strategic

Yet, the public perceptions may be at odds with the objective measures. In Toyota’s case, there have been indications that the quality level of the company’s products had fallen off in a span of few years. There are changes that have taken place during a period when most of the company’s close competitors, such as Fords, were producing more cost-effective and efficient automobiles. In addition, the company’s unique production approach and the emphasis on continuous improvement and learning coupled with a matrix structure are key reasons for the company’s leadership in the cat manufacturing industry. Toyota’s Production Systems (TPS) was founded in the principles of “Just-in-time. This approach has less opportunity for slack resources and focuses of the benefits of efficiency on the part of employees and reduction on waste resources (Griffin and Gregory, 5). Further, Toyota Company enacts its production system with the assistance of its human resources strategies, culture, and organizational structure. Toyota’s Production System emphasizes on learning and modesty when it comes to assessing past success and differentiated them from

A mutual fund manager is a person who actively buys or sells and sometimes both funds. They are experienced in implementing a funds strategy used for investing and manages its trading activities as well as the portfolio. Choosing whether or not to invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company.

In addition, Toyota, being the champion of kaizen, quality and lean philosophy is very well aware of the very likely sacrifice of the quality of products it depends on to produce high quality cars, once it joined the Internet marketplace. By nurturing relationships with suppliers and treating them as partners, Toyota has been very successful in harvesting the benefits of a good relationship with its suppliers, receiving high quality products, on time and according to specifications. Without such close and long term relationships, Toyota would not have been so successful in implementing and maintaining excellent JIT supply chain as well as lean philosophy just to name the few.

This system changed the ways factories are run worldwide, it was famously known as “the Toyota Way”. This method which was perfected by Toyota enabled on eliminating waste, reducing defects and maximizing flow. Hiroshi Okuda taught this system to many other organizations as he wanted to share his method with world to make it more productive and save resources (Frederick 2004).

The Toyota Production System (TPS) is the culmination of the company’s dedication to continuous improvement. It is the culture adopted by employees and

One factor that adds to the success of Toyota’s supply chain is their relationship with their suppliers and how they do business with those suppliers. Toyota does not simply give their supply contracts to the highest bidder; instead they work incredibly closely with their suppliers so that they can get the highest quality products possible. Toyota uses long-term, just-in-time contracts with all of their suppliers (Winfield & Hay, 1997). Toyota does not engage in any kind of mutual contracts, such as buy-back or revenue-sharing; however, they do take multiple steps to ensure a mutual benefit when they pair up with a supplier. Toyota invests in their suppliers to help them develop products (Liker & Choi, 2004). They also ensure that they share information with their suppliers in a structured fashion. They believe that targeted information leads to results and they ensure that specific communication is relayed to their suppliers at set times and in set ways (Liker & Choi, 2004). Perhaps the most unique aspect of Toyota’s relationships with their suppliers is that they embark on joint improvement ventures together. They set up study groups with suppliers to help both parties learn how to improve operations and send executives and engineers to the supply plants to help them improve processes (Liker & Choi, 2004). These kinds of benefits are described in the contracts Toyota keeps with their suppliers (Toyota Supplier, 2011). The close relationships that

Over the years, Toyota has established itself among the leading car manufacturing companies all over the world. This aspect has been enabled by a very effective and efficient management style adopted by the organization. Toyota’s management style has paved way to the establishment of successful marketing strategies. A lot of factors have contributed to the company’s ability to emerge as a market leader in this niche. The organization’s market structure cannot be stated with precision. Some tend to consider it as a monopoly while others view it as an oligopoly (Spear, 2006). The monopoly aspect arises due to the company’s dominance in exportation. Going with the differentiation strategy, the organization has been able to establish seemingly monopolistic presence in many developing countries. The essence of oligopoly has been brought about by the presence of other key players like General Motors and Ford. These companies are believed to collude on various strategies deployed in different markets that they operate in (Wells, 2010). The collusion is always aimed at giving each player a share of the profits in the market, without having to undergo unfair competition. This usually happens when new brands are being introduced in the market, and their success is not known. Toyota has been up to the task on all the activities that its competitors are undertaking. The management team that has been devised takes a good look at what other companies in the industry are

Toyota is committed in developing its supplier base, which more closely reflects the diversity of its customers and the diversity of its team members who build Toyota vehicles. Having a diverse supplier base enables it to contribute to the economic well being of all its segments. Also, it recognize that partnering with suppliers who provide a diversity of ideas in addition to delivering manufacturing support, goods and services that creates a significant competitive advantage for Toyota.

Toyota is pursuing a so-called ”glocalisation” strategy of producing where its sells in order to rapidly accelerate its global sales growth (Global Insight, 2006). Roland Berger Strategy Consultants reports that North America and Western Europe will lose 11% to 20% of their global supplier production share by the end of 2010, as automotive supplier production in Asia and Eastern Europe will soar. Meanwhile, China will attract the bulk of automotive supplier investment as its share of Asia's automotive supplier production increases by 165% by 2010. The automation industry within Korea and Japan will remain stagnant as their suppliers focus on overseas expansion (Auto Suppliers Under Pressure to Expand Globally 2006).

main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM). However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003.

* To face this labour crisis, Toyota’s union and management formed a Committee in which their representatives questioned the production efficiency management coupled with production allowance, the human resources management, the working conditions and the tough assembly line work. Toyota decided to radically modify its production system.