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Recommended: Background of Toyota
Jennifer Burgess
Prof. Jonathon Greer
10 September 2017
Toyota Paving the Manufacturing Road
The manufacturing industry is in constant motion all the time, each company striving to be better than its competitors. Manufacturers are continuously pushing to have the best product, at the lowest price, and on time. After all, it’s all about pleasing the customer’s demands, without them you are nothing. But, there is one company who has paved the path on manufacturing industry. They have made a permanent mark on the world and raised the bar for everyone one else around them, Toyota. Toyota has created an incredible manufacturing environment, that often has those around them wondering, “How do they do it?”. Their development on the Toyota Production
Initially the workers had only been required to do their own standardized work and had nothing to do with the problem-solving problems. Toyota decided to change that taught the workers how to improve their problem-solving skills by giving them the task to redesign their own work. “The workers were assigned a leader who trained them to frame problems better and to formulate and test hypothesis- in other words, he taught them how to use the scientific method to design their team’s work in accordance with the first three rules.” (Spear, Steven J. pg.
Their principles and practices are very simple and yet they are still evolving over 50 years later. I think that the fact that they could keep all their employees during the 2008 recession speaks to their ability to overcome any obstacle by adapting to their environment. Instead of immediately turning to layoffs they turned to re-training and education. There have been a lot of companies that have tried to duplicate what Toyota is doing, and yet not one of those companies have been able to recreate a success level as high as Toyota. I believe this is due to the length of time Toyota has been in business and practicing these Lean principles. Lean does not happen overnight, it is a company lifestyle. By creating the Lean principles Toyota has held everyone within their company accountable for its success and raised the bars for its competitors to do the same. We live in the 21st century, our world, especially technology is ever changing. There is a constant demand to upgrade and excel at the new latest and greatest product. If you can’t keep up and adapt you will be consumed and fail! Toyota has proven the ability to do this and withstand the harsh demands of the world around them, all while putting their employees
The new era of virtual to real manufacturing is under way which will increase productivity, efficiency and innovation, speed-to-market, and flexibility, resulting in a powerful new cycle of growth and value creation. The advanced manufacturing facilities of today and tomorrow are clean and replete with robots, computers, lasers, and other ultramodern machine technologies for example the most common tools carried on the new auto plants are not wrench or screwdriver instead it’s IPad (Ludwig & Spiegel,
For an assembly plant to be so productive materials must be on hand at all times. Every mustang begins with a truck; reels of raw steel weighing in at 30 tons a piece are delivered periodically. Now this raw steel is the moved to a machine that cuts i...
For over fifty years, Toyota has established over 50 bases in 26 different countries and regions. Their automobiles have found their way into over 170 countries across the entire globe. In addition, Toyota has design and R&D bases in nine locations overseas, with this they prove that they have achieved consistent globalization as well as localization. The most important part in any Toyota base is the quality assurance. They don’t stamp their product with “Made in the USA” or “Made in Japan”, but instead opt for one label for all: “Made by TOYOTA.” This shows that the product is made in the “Toyota Way.” To achieve this, the company minimized support that comes from Japan to let each of their foreign locations become self-reliant. For example, a Toyota plant recently began production in Texas has made maximum use of its sibling’s experience in Kentucky which has been cultivated over the past 20 years. Toyota believes that in order to reach their goals is through educating people. Multiple Global Production Centers have been built within Motomachi Plant in Toyota City, in United States, the United Kingdom, and Thailand to carry our corresponding activities in the Asia-Pacific, European, and North American regions. To promote the “Toyota Way”, the Toyota Institute established an internal human resources development organization in North America, Europe, Asia, Africa and Oceania. As you can see the pros of the globalization of Toyota are endless. This company alone has created millions of jobs across the world. Winners are not only the workers, but also the buyers, without globalization Toyota automobiles would only be available in Japan. Many people, including me, see globalization of this kind as a beneficial and advantageous result. Toyota companies have not only created jobs for thousands if not millions of people, but their
Toyota’s innovative nature allows them to produce quality products and maintain their brand image, even if it is at a higher cost. However, their customer base is also aware of their reliability, despite numerous recalls which dampened the organizations name, yet they are still willing to remain loyal customers.
Toyota is a pioneer of the LEAN manufacturing principle. Lean, as a process, is a way to add value to customers while minimizing waste (LEI, 2011). It can also be thought of in terms of flow, which is how Toyota likes to think of it. It is simply a process of decision making where the problems tend to be thought of in terms of flow, reducing starts and stops or unnecessary motion increases flow, reducing waste.
The management style at Frito-lay tends to involve a lot of needless procedure and personal that proves to make a simple problem complicated. The Toyota company with it’s keep it lean theory keeps the process of doing business as simple as possible. Where at Frito-Lay when there are a problem the sales person has to call the district sales leader who then in part has to get the need information from the people above him. At Toyota if there is a problem then the person who discovered the problem has the freedom to halt the procedure and do what is needed to correct the deficiency.
Toyota Motor Corporation is a very successful automobile manufacturer that is recognized globally. They have continued to obtain and retain a competitive advantage over their counterparts, despite recalls over many years. Regardless of recalls, Toyota has been quick to rectify their shortcomings and continue to lead within the automotive industry with their innovative measures. In this essay, I will discuss key internal factors for Toyota. Within those factors will include Toyota’s core competencies, which are what they do really well in comparison to their competition, three of their strength’s, which will include their posture within the automobile market and their heavy focus on research and development, and two of their
The HRM strategy in Japanese companies is supported by the six pillars of Japanese employment practice lifetime employment, company welfare, quality consciousness, enterprise unions, consensus management and seniority-based reward systems. Toyota is at the heart of global manufacturing, a company that has grown over 70 years to become the world's third largest vehicle manufacturer. (Toyota worldwide 2006) Toyota is the seventh largest company in the world and the third largest manufacturer of automobiles, with production facilities in 26 nations around the world employing more than a quarter of a million people. The decision to manufacture in Europe was based on a corporate policy of building vehicles where the customers are and The United Kingdom was chosen for many reasons including its history of vehicle manufacture, the large domestic automobile market, its components supply base and its excellent links with the rest of Europe.
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
• While making a methodology is challenging, executing it is considerably more troublesome. Numerous organizations comprehend Toyota Production System now, yet at the same time think that it is troublesome to execute and implement.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Supply Chain Digest, 2010. Supply Chain News: Is “Lean” to Blame for Toyota’s Recall Issues?
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.
In 1950s, Toyota has developed lean thinking. The Toyota Production System aspires to minimize waste and increase efficiency while at the same time enhances its product quality. From this initiative, Toyota managed to widen its competitive edge by employed fewer employees in the car production with a small number of flaw products.