Toyota's Supply Chain

4085 WordsDec 5, 200717 Pages
1.0 Executive Summary The report details the findings on Toyota Motor Corporation's supply chain management in great description. Areas that will be covered in the report include the supply chain processes of Toyota, supply chain strategies that it adopts and the practical use of drivers that determine the performance of the entire supply chain in terms of responsiveness and efficiency. The supply chain processes and strategies of Toyota are the fundamentals in its daily operations. By adhering Just-In-Time (JIT) manufacturing and Toyota Production System (TPS), Toyota emerges to be one of the world's largest automaker. In addition, the above-mentioned drivers refer to transportation, facilities, information technology and…show more content…
It is a system to smooth the workflow by having one operator work across several machines in a process rather then having different operator. By having only one operator, it will create smoothness across the operations because the work piece flows with the operator. 4.4 Perfect First-time Quality In order to get quality right the first time, Toyota employ an automation strategy. If an abnormal situation arises then a machine or person must stop production in order to avoid defective products and other waste. Quality takes precedence. Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue. This is to ensure zero defects, by revealing & solving problems at the source. 4.5 Improving Suppliers Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it. Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier. Due to the low stock levels, shipments of the same part come in several times per day. Thus, Toyota is especially susceptible to an interruption in the flow. For that reason, Toyota uses two suppliers for most assemblies. Toyota also prefers a strong, long-term relationship with a few suppliers as compared to short-term, price-based relationships with competing suppliers.

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