Operation Management at Toyota

Having a well-managed system in an organization is usually the difference between performing and failing organizations. Operations management refers to all the practices that are designed to monitor and manage all of the activities and processes in an organization involving production and distribution of products and services. This means that the primary obligations of operation management are product creating and service development with an emphasis on how efficient the two are distributed. This allows the analysis of the organizations internal processes involving product and service creation. Toyota operations management dwells upon a number of decisions relating to productivity so as to ensure that the operations are efficient and effective. With the operations scaling to a global level, its automobile automobile business necessitates the implementation of decisions that integrate both local and regional automotive market conditions.

In order to remain relevant and well placed in the market, Toyota employs a strategy that involves adept design of goods and services. This is addressed through avid advancement of both technology and quality. There is a lot of investment in research and development so as to ensure that the features are well advanced with the incorporation of all the stakeholders for an all-round development process that has the aftersales amongst other services facing frequent upgrades. Quality management is also an important part of operations management. In order to ensure that quality is maximized, Toyota employs a Toyota Production System (TPS) that mainly addresses the strategic decision making part hence ensuring there is continuous improvement which is important for maintaining competitiveness.

Process and capacity design is an important part of Toyota’s operations management. Toyota employs a lean manufacturing that is also a part of the Toyota Production System and ensures there in minimization of waste through the maximization of the process efficiency and better capacity utilization hence ensuring the whole business is efficient in both the process and capacity design. Operation management also necessitates the inclusion of profound market selection and product definition for particular markets. In order to ensure that the market is covered strategically, Toyota employs global, regional and local location approaches that culminate at the dealership level. This ensures that Toyota is able to collect adequate information on the product preference through the dealerships. Depending on the regions, Toyota employs a mixture of strategies to ensure the region is well covered. Most of the places at the global level have dealerships except for Mongolia, Middle East and Africa.

Layout design and strategy also form an important part of the operation management process. At Toyota, the main approach involves the use of lean manufacturing principles. For this strategic area of operation management, the company mainly focuses on approaches that aim at maximizing efficiency of work flow. The company also lays emphasis on streamlining the Toyota dealership design so as to ensure that it satisfies the standards set while at the same time ensuring that it also incorporates the decisions from the dealers for an all-round inclusive approach.

The strategy and design layout is another important decision that needs to be made. The layout design in the manufacturing plant of the Toyota Company shows the use of lean principles of manufacturing. This is one of the strategic decision are of operations management where the company seeks to maximize the workflow efficiency of their workers. Contrary to that, the Toyota company dealership has a design layout that seeks to satisfy the standard set for the company, which they also take into consideration the suggestions, and decisions made by the dealers.

Human resources and the job design is another part of the strategic decision that needs to be made. The TPS and The Toyota Way are two principles that the company applies when it needs to made a strategic decision in their operations management area. The Toyota Company stresses the need for respect for all persons in The Toyota Way, and this is included and fused with the human resources policies and programs that are found in the company. The Toyota Company design their training programs based on the TPS and this ensures that they are practicing lean manufacturing in the company.

Toyota company practices lean manufacturing for their supply chain management system. The company automates its systems for adjustments in real time in this operations management area, which is a strategic decision. This method allows the company to lower the effect of bullwhip in the supply chain of their products. The company has developed a good supply chain in which

The inventory management is another part of the strategic decision making process that needs to be addressed by Toyota company. The company seeks to minimize the size of the inventory, which in turn will lower the costs that are associated with it. The production system in Toyota Company covers this approach of inventory management. The services in the company lead to less usage of the inventory compared to the manufacturing operations that the company partakes. This translates to the low costs of handling the inventory. This is best for the instances where the service is provided based on demand as they are different from the products, which can be stored.

As with all other companies, Toyota Company has manufacturing principles that dictate their scheduling and they follow this religiously. The goal of the company based on this decision area that is strategic to the management of the operations of the company in order for them to minimize the costs of operations in the company. The human resources and the scheduling of resources that are subject to change due to the changes in the conditions of the markets maintain the minimization of costs processes. The inputs uniformity in the company subjects the service operations of the company to a high variability of their inputs. This is because every client and situation needs unique flexibility and assessment.

Toyota Company over the years seeks to develop network facilities that are located strategically in order for them to support their global business. Toyota Company has established a human resource network that is global which supports the business resilience and flexibility. In this operations management area of a strategic decision-making, the company will use its business reach globally in order for them to ensure that there is a stable and optimal stability in their business operations.


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