Toyota Motor Firm is the second largest developer of automobiles on earth. It has its head office in Japan and is present in a big volume of countries about the world. This multinational company was founded by Kiichiro Toyoda in 1937. It was formed as a result of an spin-off from a corporation known as Toyota Sectors which was had by his daddy. At present, the business leads an organization made up of 522 subsidiaries.
Toyota in addition has ventured directly into other areas of business like financial services and development of robots in addition to its automobile production operations. The business, in combination with its parent group-Toyota Business, forms one of the primary conglomerates of the world. It also has the honor to be the only car producer showing up in the top10 BrandZ name popularity ranking. The leading brands had by the company include Toyota, Lexus and Scion. They have many shareholding in Daihatsu Motors and has a share in Fuji Heavy Companies, Isuzu Motors, and the engine motor, motorbike and marine craft maker Yamaha Motors. The principles adopted by the company's management have been produced by its founders and also have played a substantial role in its success. These prices have emphasized the value of conditions like, "Lean Manufacturing" and Just in Time Development (JIT).
Toyota in addition has developed a distinctive strategy, popularly known as The Toyota Creation System (TPS) which forms the basis of its "Lean creation. " The TPS is a wonderful mixture of the values followed by the company and the techniques integrated by its management. The system is accountable for ensuring an effective coordination with the customers as well as the suppliers. Its preliminary business targets were to get profit from the technology offering potential to develop the customer experience through personalization and streamlining the internal processes in order to ensure a sustained profitability for the business enterprise (Liker, J 2004).
However, Toyota has always made advancements in its existing processes to preserve its current progress rate. As a result of this, the company can withstand the fierce competition experienced in the auto sector, for several decades.
Just WITH TIME (JIT)
Just with time is an efficient combination of lots of techniques that try to increase the return on investment of an business-activity. That is done by reducing the size of the in-process inventory, and various associated costs, related to it. It's been observed that this technique leads to remarkable improvement within an organization's profits on return, quality, efficiency and performance. In fact, JIT has been considered as an integral component of an organization's school of thought and not only as a development technique. (Ohno 1988)
JIT was initially developed and learned inside the making systems of Toyota by Taiichi Ohno in order to satisfy certain requirements of the clients without triggering any kinds of delays. Later on, Taiichi Ohno came to be known as the father of JIT. Thus, the credit for publicizing the technique is given to Toyota Motor Company of Japan. Toyota was successful in overcoming the increasing challenges for its lifetime through this system as it concentrated upon people, plant life and systems. (Toyota Highlander Crossbreed 2004)
The company was very quick to realize that the successful execution of JIT can be done only when every individual within the company contributed towards it. Toyota pioneered this idea to update its current making process to be able to contend with other major players. For a long time, the company was struggling to bear the expenditures of huge amounts of land used for keeping its finished products and spare-parts. Because of this, the economic whole lot size of the organization was reduced, which resulted in an extremely low return on investment for its creation systems. Thus, a need was noticed for making these products more flexible and eliminating the over head costs, that have been affecting the success.
With the assistance of regular research-work, the technical engineers at Toyota redesigned the production operations as a way to build up a commonality of tooling for various development processes. It also used flexible robotic systems for undertaking a majority of these operations. Because of this, common subassemblies were designed that may be used in several models, without losing enough time.
The development and execution of Just WITH TIME technique led to significant improvements for the business. As the work-in process inventory was sold soon after it was built, a rapid increase in the liquidity was seen. At exactly the same time, the response-time for the customer's requirements came down to about a day. The rate of customer satisfaction increased in no time as vehicles were delivered before their expected deadlines. Furthermore, the risk of warehousing the vehicles was completely eliminated as the company adopted the built to order policy on their behalf. (Just in Time- Toyota's Production Technique 2008)
The very dynamics of JIT emphasized seriously on the product quality aspect, which in turn resulted in the creation of high-quality vehicles with minimal issues. Finally, Toyota redesigned its whole manufacturing process to remove any type of tolerances, and put in place efficient statistical controls. Therefore, Toyota trained its suppliers to ensure a quality and timely delivery for the spare-parts.
JIT increased the inspiration levels of the individuals, who aimed to perform more challenging goals. In addition, it allowed Toyota to concentrate on group work, which led to talent-identification, posting knowledge, problem-solving skills, ideas and the achievement of an common goal. Each one of these helped the business to secure a competitive position for itself.
Automobile industry incurred high cost on safe-keeping of materials and components. Companies used to store bulk of materials and components. It's the Toyota Organization that invented just-in-time, a system of stock control. Toyota has followed JIT approach to purchasing inventory, for occasion it does not keep many assembled automobiles in its stock. Alternatively, it manages to assemble the automobiles in 4 hours after the order is placed. There are various plants of the business who deliver parts and components for making.
Wastage of energy is reduced through just-in-time stock control. Complete creation schedules were worked out by manufacturers to find the efficient making system. Card purchasing system 'Kanban' originated to reduce the area and cost fastened with large volumes. In Toyota, components were bought only following the teaching of 'Kanban'. Regarding to the plan, material that can be used in 1 hour is retained in the stock. But production of complete car seed would be discontinued if there is any delay greater than I hour. Initially, it had not been easy to handle the new system 'just-in-time'. Very soon, Toyota outperformed and developed effective creation system. (Hancock, Bolling & Pearce 2001)
Toyota production system is unusual and highly successful. The development system is valuable and useful because of its integration. Toyota production system focuses on removing waste. Slim developing specialist says 'just find and eliminate throw away' (Lean manufacturing, 2001). Looking for the waste material and reducing it contributes to constant improvement. Wastes are of many types such as organizational, subconscious and materialistic.
Bad design is one of the most bad and careless mistakes, which occurs anticipated to neglect. Bad design problem begins at the commencement of creation and have an effect on other functions. Planning not only includes the design of tools and parts but also the look of manufacturing process. It is expensive to repair the indegent design. (Low fat manufacturing 2001)
If there's a defect in any manufacturing phase, it falls the series. This defect contributes to losses that increase exponentially.
Toyota has quality control system, which stresses on finding defects. Quality of work within an organization can't be improved upon if labor feel shameful on the mistakes and also have fear in their head. (Lean making 2001) In Toyota, there can be an environment of pointing out of fault by the person who has dedicated it. The business has an efficient manufacturing environment, in which an employee is encouraged not to commit the fault again instead of being punishing for that mistake.
Employee training is of paramount importance in Toyota Development System. Speech of employees is listened by the management of company. Consumer demand is center of gravity in inventory management of Toyota production System. Employee feedback is also an important part of development system.
Strict actions are taken on management faults, because they are important and hazardous than the blunders determined by the employee. Management mistakes are taken really and proper attention is directed at them. Layout of creation floor reduces movement of personnel and assemblies.
Employees at Toyota have specialization in many duties, which is helpful when main skills of the employees are not required. In the time of low demand, strategies are set to hold the conferences and improvements are created in off time.
Inventory is highly low in development system. Toyota Development System stresses on consumer demand for material source planning. Inventory is not pushed from behind rather it is drawn forward through making chain. Major source of waste materials is overproduction, which is minimized.
The company will try to maintain associations with few trusted suppliers as much suppliers involve much time and paperwork. Processing process is standardized so that efficiency can be maintained. Design of the developing process is so that it is frontward looking as it can help in lowering the expenditures of changeovers.
Toyota Corporation has always been known for its active participation in the environmental protection work. It respect the cover of the environment as an integral concern for the continuous growth of an enterprise firm. In 2000, Toyota framed the Toyota Tsusho Group's Environment Insurance plan for guiding the actions of its managers and employees in accordance with the environmental issues. Inside the same year, the company set up the planet earth Environment Committee, to promote its environment-related initiatives. Actually, this committee created the basis for the existing Seminar on the Global Environment.
Another major work of the business in this course came in the form of Toyota Turkey Job. This task is allocated with the duty of financial development and improvement based on satisfactory principals of the ecological studies, for the coming decades. Since, high-quality products are manufactured in secure and hygienic working-environment; the task ensures that its operations strictly follow the global Toyota environmental procedures in product development, design and making techniques. (Environmental Factors 2008)
Toyota aims to attain its environmental coverage goals by making use of following processes-
- Manufacturing automobiles with minimum usage of natural resources, increased usage of renewable resources, low waste production, and creating less environmental impact by the discharge of hazardous substances and high levels of noise.
- By obeying the rules regarding the legal requirements associated with environmental issues and other environmental security legislatures to continuously determine its environmental performance.
- By increasing the consciousness about the environment issues among various parts of the society by training them.
- By starting open communication with customers and general public institutions in regards to environmental management system efforts and environmental security practices.
Thus, to constantly upgrade its environmental performance, Toyota sets gross annual goals and targets with regards to the environmental management system. Because of its responsible habit and exemplary work in this route, the company has been accredited with the ISO 14001 Environment Management System Qualification.
Nearly, 5. 644 m of the production section of the company is being lightened by the sun rays, in order to diminish the electricity ingestion. In the same way, the water-pipes constructed of steel are converted into HDPE pipes, to regulate the wastage of normal water. Toyota also motivates its business-partners to positively participate in the environmental protection promotions.
With the assistance of the trainings, people' acknowledgement about environmental concerns is increased. For this, the company celebrates the month of June as the 'Environment Month', every year. In this particular month, various programs are prepared for increasing the amount of environmental understanding among everyone from the company. On similar lines, the business has launched an environmental bulletin- Toyota Green, to complement its attempts in the given course.
In addition to the, the company undertakes detailed inspections prior to making further investments in business to find out its environment-related impact. It is interesting to notice these inspections derive from surveys aimed to safeguard the surroundings, before establishing any new developing units. For this, the company demands detailed inspection from its procurement sources to avoid any varieties of problems related to the surroundings. In addition to this, check sheets are designed for undertaking research and properly dispose off the waste materials, released because of this of the developing operations carried out at the given location.
It has been seen that the company has a solid presence in the auto market-segment. The company has an extremely impressive history and thinks in strong social principles. It lays a great emphasis on the facet of quality and efficiency to get the confidence of its customers. In addition, the company is convinced in making continuous changes in its existing functions to stay competitive. Actually, Toyota has always been known for the adoption of latest technologies and concepts to increase its work-efficiency and output every once in awhile.
This attitude of the company is recognized by the launch of modern ideas such as JIT, Kanban and Robotics, etc. At exactly the same time, Toyota is obviously prepared to test out the new ideas recommended by its employees, suppliers or customers. Due to this flexible approach, the company has been successful in maintaining its position in an exceedingly fierce competitive situation. At the same time, it's been able to satisfy and match the needs and requirements of its customers, in the most profitable manner. Thus, the business can support its current growth-rate and profitability, without facing any difficulty soon along with its mission to protect the surroundings from further deterioration. Additionally it is expected that the company would continue steadily to develop successful and innovative work-methods which would be of great energy for the whole industry. However, it must remain mindful of the frequent changes taking place in its external environment and its areas of operation.
- Environmental Factors 2008. Retrieved Apr 1, 2008, from test. toyotsu. co. jp/data/current/pdf-400-datafile. PDF
- Hancock G, Bolling, K & Pearce, B 2001, GCSE Graphic Products for OCR. Heinemann.
- Just in Time- Toyota's Manufacturing Technique 2008. Retrieved April 1, 2008, from www. japan-101. com/business/just_in_time. htm
- Lean Making 2008. Retrieved April 1, 2008, from http://systems. almyta. com/articles/Inventory_Management_History_6. asp
- Liker, J 2004, The 14 Concepts of the Toyota Way: An Exec Conclusion of the Culture Behind TPS, p. 37, Ann Arbor, Michigan: School of Michigan.
- Ohno, T 1988, Toyota Development System: Beyond Large-Scale Development, Productivity Press.
- Toyota Highlander Cross types 2004, Canadian Drivers Marketing communications Inc.
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