Operations Management of Toyota

Introduction

Operations Management (OM) is a situation that occurs when a business is run in a different manner that helps its departments to enjoy efficiency use of available resources. In most cases, materials and labour costs are optimised towards attaining profits for the organisation. Toyota Company is a company that has employed the use of operations management strategies in a factor that led to its success in the motor industry (Liker & Morgan 10). This paper explains the different ways how OM is of high benefit to Toyota Company, the success of OM in Toyota and the additional strategies that ought to be implemented in its operations to make working smoother.

How Toyota used OM to achieve its Objectives

Ensuring of total quality production and the Lean management are some of the strategies employed for use by the Toyota management in attaining better quality products. However, there were different techniques of OM employed by Toyota Company that helped in improving the products quality, thus leading to increased sales across the globe. Adopting of the Lean Manufacturing philosophy spearheaded Toyota Company to become a leading manufacturing company in the globe. It is clearly evident that embracing the concept of Operation management in its operations has contributed towards its success in the manufacturing industry. The OM strategies used at Toyota are facilitating better operations of the company through the transformation of different inputs into the desired outputs. These outputs are supplied to different parts of the world; hence, the company makes gets high profits in return from its improved sales. The supplication of outputs helps in the satisfaction of customer needs whose desire to have quality products (Greasley 110). Toyota Company surveys its markets and strives hard to know its customers desire. Through doing this, the company makes products based on the desires of its customers who are given the highest priority. Surveying the market helps the company to identify the strength and weakness of its competitors; hence, make modifications where necessary.  The operational research method is used by the company as a way of making more innovations on how the company products ought to be modified. Any company that is very innovative will tend to use the latest technology in its operations and quality of its services will be improved accordingly. It is very easier for such a company to retain its loyal customer and get even more clients in the future. Quality products produced at Toyota Company remains long in the customers demand product line.

Success of OM use

Use of OM is very successful at Toyota Company. Improvements are evident in the production sector leading to high sales in the market.  At one point, the company produced vehicles, which had a deficit, thus they were all returned for correction despite being sold in different parts of the world. The deficit evident led to improvements in production quality as it is a key factor in success (Patton, Clegg, Hsuan  & Pilkington 120).  The company has enough measures put in place for the purpose of ensuring that there is an efficient supply chain for easy flow of goods and services to various destinations. In addition, the company products and services remain reliable to customers as they are currently satisfied with the quality measures employed for use. Toyota Company has the philosophy of’ just in time delivery’, which ensures an efficient delivery system for all its products. The company management values its customers very much and it not ready to disappoint them at any time. Use of OM is contributing to the success in the production sector of the company as it comprises of, both fixed and moveable assets of the business. In case there is an increased demand for the company products and services in future, the company will handle such effectively due to the measure put in place to increase future production. The company has the capacity of satisfying the demand level in the market due to OM strategies employed for use. The just in time concept helped the company to utilise its warehouse space and through doing this, it emerged more competitive as space was a limiting factor in the motor industry.

Additional OM strategies

There are some additional OM strategies that can be implemented for use in the company. The time that the company uses to manufacture extra products can best be used in the production of products ordered to best levels; hence, gain more and use lesser time. Putting efficient supply chain involving the distribution of products to the final destination is a strategy that would yield to give more credit to the supplication of products to customers (Mellat-Parast 2810). The managers ought to implement the strategy of altering the pricing systems depending on the demand level as a way of creating demand even in non-off peak periods. Such alteration mostly takes place when price influences the demand for certain products.  

Conclusion

There are additional OM strategies that can be used to improve production at Toyota Company. Toyota has successfully used OM strategies, which have proved to be of greater use towards its success. This paper has explained ways of how OM is of high benefit to Toyota Company and success of OM in Toyota.

 

Work Cited

Greasley, A, ‘Operations Management,’ Third Edition, John Wiley. ISBN 978-1-11997-854-1. 2013

Liker, J, & Morgan, J. ‘The Toyota Way in Services: The Case of Lean Product Development’, Academy Of Management Perspectives, 20, 2, pp. 5-20. 2006

Mellat-Parast, M, ‘Quality citizenship, employee involvement, and operational performance: an empirical investigation’, International Journal of Production Research, 51, 10, pp. 2805-2820. 2013

Patton, S, Clegg, B, Hsuan, J &  Pilkington, A, ‘Operations Management.’ McGraw Hill. ISBN 978-0-0771-2617-9. 2011

 

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