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Toyota Essay

Decent Essays
(b) Company background
Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota, Aichi, Japan. Toyota is known as the second-largest automotive manufacturer in world, behind German Volkswagen Group in 2016. Toyota adopted JIT in the Toyota Production System (TPS) as a means of eliminating the wastes in all aspects of production.

(c) Implementation of JIT by the company
In 1950, Toyota Motor Corporation had a difficulty to predict the size of their warehouse in order to store their finish products and parts. They have to use large warehouse to store the vehicles before shipping them to customers. It resulted in expensive inventory cost and waste associated with keeping dead stock. This becomes the main reason for Toyota to implement JIT and Toyota Production System (TPS) in their business operation.
The Toyota Production System (TPS) was established based on the philosophy of JIT, in which each process produces only what is required by the next process in a continuous flow. Toyota aims to produce high quality products that fulfill the needs of every customer through the complete elimination of waste, inconsistencies, and unreasonable requirements
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In the early 1940s, Toyota introduced a proper inventory stocking techniques of required assembly parts for the purpose to reduce cost. They have done several researches to understand how supermarkets are able to ensure their shelves are always stocked with the items needed by its customers and in the required quantity, and has all of these items available for sale at any given time. Customers are assured of a constant supply of desired products would be available whenever wanted thus they would only select the items that they immediately required. Toyota realized there would be less of a need to maintain high inventories if they could ensure this same supermarket guarantee of required parts for their assembly
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