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TOYOTA’S OPERATIONS STRATEGY Lean Manufacturing Toyota’s lean manufacturing has enabled the company to focus on consistent design and responsive approach to production operation. The company’s workforce is self-directed and motivated by output based measures and customer oriented criteria. The concepts of just in time (JIT), Kanban and respect for employees together with expedited problem solving approach (automated error correcting) has enabled the company to pursue lean innovations. Lean manufacturing has enabled Toyota to successfully develop its production systems to include new types of designs. The principles enables Toyota to manage its value stream, identify customer value, implement a “pull” approach that ropes the flow of…show more content…
Globalization has led to localization of production and a higher level of cooperation between production units of the carmaker that are situated in different parts of the world. The benefits are evident; the company has successfully reduced financial barriers, hence affecting the conventional management of the company, particularly with regards to human resource management. The company’s human resource management practices are rather ineffective, as the traditional principle of the teams work has turned out to be counterproductive in new countries as compared to Japan. On the other hand, the expansion of the global market as stimulated by the process of globalization affects the company’s ethical issues, thereby increasing risk of cultural conflicts within the organization. However, Toyota has responded well to this by developing of universal ethical principles and corporate culture to govern the supranational units. In the face of all these challenges, the position of Toyota is still very strong, essentially due to the company’s wide implementation of technological innovations, and its mass customization as opposed to mass production, especially when it comes to hybrid cars (Sanna, 2005). This strategy has enhanced the vanguard position of the company in the global market. With this trend, Toyota demonstrates a strong trend to globalization of its production process that appropriately

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