Toyota Essay

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In the automobile industry, it is very important to have a highly efficient process for achieving target quantities, exactly when they are needed. This concept is known as lean production and holds a key role to a sustainable competitive position. Lean production is most often related with elimination of waste generally held by firms as excess inventory to lighten the effect of inconstancy in supply, processing time or demand. Its association with superior performance and its competence to provide competitive advantage is well established. This report focuses on Toyota Motor Corporation, a Japanese automotive manufacturer which developed the concept of lean manufacturing to increase the efficiency of its production by reducing the stock holding level. The basis of Toyota Production System (TPS) is the sheer elimination of waste. TPS includes standardization of work, uninterrupted work flows, direct links between suppliers and customers, and continuous improvement based on the scientific method (Spear and Bowen, 1999). The four main concepts of TPS are Just in Time (JIT), automation, flexible workforce and capitalizing on workers suggestion. Also, Toyota uses the pull inventory control system where the orders come from the customers and the line reacts to the demand. Ohno (1988) formulated Kanban as a ‘medium to pull material from an upstream station and manage product flow’. This has given Toyota its competitive advantage through the years. TOYOTA PRODUCTION SYSTEM CONCEPT Jidoka As per TPS’s official website quality is deep-seated during the manufacturing process. If equipment flaw or a defective part is spotted, the damaged machine directly stops, and operators halt production and rectify the identified problem. It is essential ... ... middle of paper ... ...porate innovation, a continuous strive for improvement in its processes and its highly efficient asset utilization. The development and implementation of Toyota’s lean production system has set a benchmark in the automobile industry and inspired many other companies in the automobile industry and other industries as well to adopt it. Although, since the recall of more than 7.5 million Toyota cars in North America, Japan, China and Europe by the end of the year 2009 and the beginning of 2010 has because of malfunctioning accelerator pedals and floor mat problems has brought Toyota under severe criticism. Due to this Toyota had to stop production on certain lines for some time to check and coordinate activities. This gave a huge economic blow to Toyota as it was already struggling to cope up from the recession and had then suffered from an aftermath decrease in sales.

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