3.1 Product Design
Danreid and Sanders (2007) refers product design as the process of defining all the features and characteristics of the product. Generally, consumers respond to a product’s appearance, colour, texture and performance. All of it features, summed up, are the product’s design. More precisely, Product design defines a product’s characteristics, such as its appearance, the materials it is made of, its dimensions and tolerances, and its performance standards (Danreid and Sanders, 2007)
According to XXXXX, In Toyota the vehicle design starts about 36 months prior to the production and it’s completed about 18 months prior to production. Here, the designers and engineers collaborate with product planning, sales and marketing, purchasing and manufacturing on the new vehicle design (Source - Toyota
…show more content…
Major suppliers of Toyota are headquartered in Toyota City within a fifty-mile radius. It is important to be close as they make all those deliveries every day since Toyota follows JIT technique. Therefore, suppliers have close relationship and adopt Toyota’s production system that improves coordination with Toyota. Once the automobiles are produced at the final assembly line, it moves to the final inspection and driven off from the factory to the marshaling yard where the vehicles are prepared for shipment. Thereafter, the vehicles produced are shipped to the dealers through distribution model which is referred as outbound logistics. The distribution model differs according to various regions. Generally, vehicles are transported by trains and trucks to the local/domestic dealers here large vessels are used to ship vehicles to dealers in other countries. Importantly, Toyota has partnerships with its suppliers and dealers and holds proportion of their ownership stocks which make their supply chain operate effectively and
The design should be utmost unique and further differentiated, not conforming to culture. Design is could be one competitive advantage so it is important that the manufacturing of the products are conformed to the original ideas of the maker, uninfluenced by any other factors involved in its manufacturing process. Example of this idea is the use of differentiation strategy of companies to gain competitive advantage.
Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while competitors typically require two to three years.
It is how the product is introduced and represented to the potential customer which makes the product desirable.
It is very clear that a design for their goods is well maintained. The highly demand on their products from customers everywhere in the world drives them to be powerful. It is recognized that the market study and analysis are elaborated to understand the market needs. For instance, high volume product reflects how they design
A design can be a blueprint, the physical outlook or it is a representation that catches the consumer attention and also influences the consumption patterns. The stigma of design in today’s world is so strong that a well-designed product can even be sold to a non-potential customer like selling a hairbrush to a bald person. Good designs makes the customers
There are five major design elements, performance, quality, durability, appearance and cost. The purpose of design is to optimise customer satisfaction and the profitability of a company by creatively coordinating these five elements in coherence with the company 's products, environments, information, and corporate identity, thus, connecting the company with the consumer by creating products and services which appeal to the consumers needs. Design is not solely the shape, dimensions, or purpose of the product; it is the decision-making process that deals with the culmination of the appearance of objects, taking into consideration the economy, technical function, and making sure
Toyota believes that to make high-quality vehicles, the quality of each supplier's components plays an important role. Therefore, the original philosophy of Toyota's supply chain collaboration is to reduce long-term costs by establishing long-term partnerships with suppliers instead of traditional ones. Based on this close long-term relationship, we help suppliers to build on Toyota's ever-improving thinking and culture, import Toyota's production system (TPS) to share information and knowledge, learn and pursue improvement together. Hence, Toyota invests a lot of time, and human resources efforts in the fields of purchasing, engineering, manufacturing and management, and even evaluates the selected
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.
Toyota Motor Manufacturing, U.S.A. (TMM) is deviating from the standard assembly line principle of jidoka in an attempt to avoid expenses incurred from stopping the production line for seat quality defects. This deviation has contributed to the inability to identify the root cause of the problem, which has led to decreased run ratios on the line and an excess of defective automobiles in the overflow lot for multiple days. If this problem isn’t fixed quickly, an increased amount of waste will continue to be incurred and customer value will be threatened.
The main aspect of Toyota Company’s value chain analysis is the inbound logistics. Inbound logistics use JIT (Just-in-Time) system of production as it decreases the inventory cost. JIT helps Toyota to optimize their assembling and production process as well as to minimize parts going to waste or getting unused as inventory. Inbound logistics are the goods that the company receives from its suppliers and store for some period of time until the moment when they will be used in the production process. Toyota company does not have and is not able to create own raw materials that are needed for assembling of cars, thus it has to collaborate with a third party.
For my analysis, I chose Toyota which is the second biggest car company following Volkswagen. It is known to be really competitive and sold in many places around the world.
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
According to theoretical measures in Toyota, there is no inventory since they applies Just-in-Time philosophy. However in practice this may not be possible. Therefore, they have very very small inventory due to lead times. Most of the inventory is pipeline inventory. In TMMT Part Supply Management department is divided to three different groups to manage inventories according to supplier locations. These are local, Europe and Japan. All have different lead times and different inventory policies. These are related with supply of mass production parts. And TMMT also has chemical material inventory.
Product – Product can be defined as the goods or services which is made to fulfil customer’s demands and needs. While making the product company should take care about its quality and features must be according to the customer’s needs to satisfy them.