Toyota's Supply Chain

TOYOTA PRODUCTION SYSTEM (TPS) The TPS model depends on its Human Infrastructure. The entire model is base on its PEOPLE & TEAMWORK being successful in doing their job and there buy in to the Key Elements of the TPS culture, which are as follows;  Selection  Ringi decision making  Common Goals  Cross-Trained TPS emphasize the point of its human infrastructure as a “COMMON GOAL” for all personnel in the corporation, which again is emphasize that its employees are its greatest assets as shown by the

The case describes the details about the production process of Toyota and the principles they are following, like JIT & Jidoka in Toyota Production System (TPS), heijunka & kaizen. How they have control the cost, maintain quality through process

The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry. Toyota as a name, a company, and as a brand has become synonymous with Quality.

In this project, we will be studying Canadian Tire Auto Services’ main supply chain strategies. Canadian Tire provides many automotive services for their clients with many locations across the countries. Our goal for this project will also be to look into Canadian Tire’s logistics operations, their process of supplier selection, and evaluation. We will also look to study their use of the latest IS/IT innovations. We will then conclude our project by realizing the importance of supply chain management integration, as well as, the challenges and practices within a global supply chain.

Making products ordered by customers in the quickest and most efficient way, in order to deliver the products as quickly as possible

Toyota first published the description for TPS in 1992, which served as an overview of the concepts, which underlined the company’s production system. Many companies that have tried to mimic this system without a clear understanding of the guiding principles have ended in failure. These principles referred to as the Toyota Way, include but are not limited to:

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

Just in time is focused on problem solving by reducing inventory and shining light on the quantity and output. Instead of having extra inventory on hand it is more cost effective to try and be prepared with only what the company is going to need to produce. The just in time layout is a way of reducing waste, in many different forms, and creating more flexibility and consistency.

In the past decades of the 70s and 80s, companies had the idea that the best way to get good pricing and service from a supplier, was to “beat up” on them. Then Toyota revolutionized the supply chain world with their lean manufacturing methodologies and total quality management systems that focused on eliminating waste to create value, while improving the quality of products. They also created a revolutionary corporate mindset– be nice to your suppliers and you will get more business. By working openly and closely with suppliers, and seeing them as true partners and collaborators, your business will operate better and more

Toyota uses processes that are both implicit and explicit. Toyota’s operations are enormously flexible and responsive to customer demand. According to ASHP Foundation (2007). Many credit Toyota’s success to aspects of the Toyota Production System, established by Taïchi Ohno and Shigeo Shingo from the late 1950s through 1970 (when it gained the name). It includes aspects of Jidoka, just-in-time production, and kaizen, reducing both inventories and defects. The system is used worldwide, but is only one of the reasons for Toyota’s success. The very rigidity of the operations that makes the flexibility possible. That’s because the company’s operations can be seen as a continuous series of controlled tests.

Chapter 1. Toyota Learning Principles and the v4L Framework Chapter 2. Comprehensive Overview of Supply Chain Chapter 3. Mix Planning Chapter 4. Sales and Operations Planning Chapter 5. Production Scheduling and Operations Chapter 6. Parts Ordering Chapter 7. Managing Suppliers Chapter 8. Logistics Chapter 9. Dealer and Demand Fulfillment Chapter 10. Crisis Management Chapter 11. The Toyota Way of Managing Supply Chains Chapter 12. How to Apply Toyota Way Principles to Nonautomotive Supply Chains Chapter 13. The Beer Game and the Toyota Supply Chain Chapter 14. Reflections of Supply Chain Participants Chapter 15. Reflections

Toyota orders the raw materials from all over the world and in the interest of maximizing their availability of raw materials; they maintain good relationships with their suppliers. Toyota uses Just-in-Time system to manage the supply of raw materials as well as optimizing the supply and production processes.

Lean manufacturing originated long before Toyota and Ford, however the thought that it originated with Toyota is flattering since they are the ones who perfected it. By creating the Toyota Production System (TPS), Toyota found a better way to produce large quantities of product efficiently with eliminating the waste factor and while cutting down cost. Taiichi Ohno a former Toyota vice president promoted the idea of JIT (Just-in-Time) which means “producing the necessary units in the necessary quantities at the necessary time.” (Monden) Which leads to Toyota’s ultimate goal in the TPS is to improve productivity for better return in investment. To have continuous flow in a production system Toyota sought out to achieve the concept of JIT and autonomation . Since the TPS is what creates the parts who monitors the JIT system? The kanban system which is an informational system that controls quantities being produce in each process. As the discussion carries on throughout this paper about Toyota and their use of the kanban system the topic

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

One of the most successful Partnership programs was developed by Toyota. Toyota is world renown for its Toyota Production System (TPS) that emphasizes empowered "shop floor" workers who utilize basic problem analysis methodology to continuously improve manufacturing processes through employee suggestions or proposals.