Toyota 's Performance Using Evaluation And Control Techniques

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1. Introduction. Toyota, one of the biggest car makers in the world, is famous for its effective manufacturing and costing systems which have served as role models for many companies on an international scale. One of its most popular manufacturing and costing systems is the Toyota Production System (TPS), launched in the 1980s. Toyota Production System (TPS) is based on a form of lean manufacturing and accounting, first developed and used by Ford Motor Company in the 1920s (Iuga and Kifor, 2013). In this assignment, I will be analysing Toyota’s performance using evaluation and control techniques, such as costing and operational systems including the TPS, Balanced Scorecard, Kaizen, Just in Time, Jidoka and Original Business Plan (Toyota’s…show more content…
2.2. Balance Scorecard. Currently, Toyota also applies the “balanced scorecard” method to integrate non-financial with financial measures. The Balance Scorecard “in essence provides a framework that translates the aims and objectives of a business into a series of key performance measures and targets” (Atrill and McLaney, 2014). Managers at Toyota use the “Balanced Scorecards” to visualize the company’s strategy by demonstrating how different parts of their business are correlated. The firm currently applies seven measures and targets as shown below including “Innovation, Customer First, Human Resources Development, Genchi Genbustu, Ji Kotei-Kanketsu, Toyota Production System, and Kaizen” (Toyota, 2016: 1). Graph 1: Toyota Identity and Balanced Scorecard (Toyota, 2016: 1). 2. 3. The Toyota Production System. One of the key rudiments of Toyota’s success is the Toyota Production System (TPS), which has gained popularity and respect across the globe for its sound fundamentals. TPS is based on Kaizen, a highly consumer-centric and goal-oriented theory of continuous improvement which aims at reducing wastage and improving the wellbeing of workers, while also focusing on increasing customer value and operational flexibility. According to Toyota (2017: 1), “the foundations of TPS are built on standardisation to ensure a safe method of operation and a consistent approach to quality.” 2.4. Product Development Process:
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