Toyota Success: The Planning Process Of Toyota Success

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What is the secret of Toyota success?
The incredible consistency of Toyota s performance is a direct result of operational excellence. Toyota has turned operational excellence into a strategic weapon. Its success is ultimately based on its ability to cultivate leadership, teams, and culture, to devise strategy, to build supplier relationships, and to maintain a learning organization.

They have incredibly applied planning process to their operation step by step. From setting goal, develop commitment, develop effective action plan, track progress toward goal achievement, maintain flexibility.
1. Setting goal :
Toyota has identified specific strategy is to achieve simultaneously high quality, low cost, short lead times,
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Network logistics shows an example of a logistics network. The entities of the network are suppliers, cross-docks, and Toyota plants. The entities are connected by a continuous flow of trucks that move containers of parts inbound to the plants or move empty containers back to the suppliers. Plants include not only the assembly plants but also component plants that produce engines and transmissions.
Toyota’s strategy is “small lots, frequent deliveries.
Advantages of Network Logistics Structure
The advantages of the network logistics structure is that it enables Toyota to pick up from most suppliers on a daily basis while at the same time minimizing transportation costs.
The network is extremely complex to operate and manage. Toyota’s size enables it to maintain control over the logistics network by partnering with Third party logistics companies. The logistics partners provide a dedicated fleet of trucks and drivers to operate Toyota’s logistics network. In addition, the entities in the network work closely with Toyota to design and plan routes. The shared transportation enables suppliers to receive small orders without increasing transportation costs.

Outbound Logistics of Toyota
It includes Collecting, Storing and Distributing the cars to the
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Encourage cooperation and communication between the first-tier suppliers.

Marketing and Sales of Toyota
It includes providing means and incentives which allow the buyers to purchase the product. Toyota’s marketing department assigns new products to the precise group of targeted customers. Marketing and sales activities of Toyota also include emphasis of on their planned promotion mix and marketing communication approaches, like advertising and sales promotions, as well as building groundwork or offers that would be suitable for meeting the customer expectations and the company as well.

Services of Toyota
It includes providing the service to enhance or maintain the value of the product. Services are the final aspect of the primary activities that mainly adds value to the products and ensures successful distribution as well as obtaining feedback and response from the customers. This includes all areas of service such as final checking, after-sales service, maintenance, complaints handling, training, repair services and additional customer services. Toyota recognizes that its customers are the “driver” of the company’s success, thus it provides and improve several types of their offered services. As Toyota product’s main factor is reliability, therefore services are delivered by qualified personnel ensuring all services provided are of high quality. The importance of perfection ensures service excellence and more satisfied customers as well

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