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Supply chain management case study of toyota

With the global scale of its automobile business and facilities around the world, Toyota uses a wide set of strategies for the 10 decisions of operations management, integrating local and regional automotive market conditions.

Toyota’s Operations Management, 10 Decisions, Productivity

Toyota is an example of successful operations management at a global scale. These 10 decisions indicate the different areas of the business that require strategic approaches.

Toyota also succeeds in emphasizing productivity in all of the 10 decisions of operations management. Design of Goods and Services.

  • For example, the company has localized manufacturing plants in the United States, China and Thailand, as well as official dealerships in all markets except Mongolia and some countries in the Middle East and Africa;
  • Toyota is an example of successful operations management at a global scale;
  • Toyota also integrates dealership personnel needs in designing aftersales services.

Toyota addresses this strategic decision area of operations management through technological advancement and quality. Toyota also integrates dealership personnel needs in designing aftersales services.

Quality is one of the key factors in TPS. Process and Capacity Design.

  • Also, customers will expect more service from the navigation system;
  • In addressing this strategic decision area of operations management, Toyota minimizes inventory levels through just-in-time inventory management;
  • Thus, in this strategic decision area of operations management, Toyota uses its global business reach to ensure optimal and stable productivity;
  • Toyota also has this sort of problem and has to find out the solution by getting new and competitive supplier.

For this strategic decision area of operations management, Toyota uses lean manufacturing, which is also embodied in TPS. The company emphasizes waste minimization to maximize process efficiency and capacity utilization.

Case Study on Supply Chain Management

Thus, Toyota supports business efficiency and cost-effectiveness in its process and capacity design. Toyota uses global, regional and local location strategies. For example, the company has localized manufacturing plants in the United States, China and Thailand, as well as official dealerships in all markets except Mongolia and some countries in the Middle East and Africa.

Thus, Toyota addresses this strategic decision area of operations management through a mixed set of strategies. Layout Design and Strategy. In this strategic decision area of operations management, the company aims for maximum efficiency of workflow. Job Design and Human Resources. The firm emphasizes respect for all people in The Toyota Way, and this is integrated in HR programs and policies. Also, Toyota has training programs based on TPS to ensure lean manufacturing practice.

Inderscience Publishers

Toyota uses lean manufacturing for supply chain management. In this strategic decision area of operations management, the company uses automation systems for real-time adjustments in supply chain activity. In this way, Toyota minimizes the bullwhip effect in its supply chain. In addressing this strategic decision area of operations management, Toyota minimizes inventory levels through just-in-time inventory management.

The aim is to minimize inventory size and its corresponding cost.

Toyota Material Handling gets green supply chain honor

This inventory management approach is covered in the Toyota Production System. Toyota follows lean manufacturing principles in its scheduling. Cost-minimization is maintained through HR and resource scheduling that changes according to market conditions. For decades, Toyota developed a network of strategically located facilities to support its global business.

  1. Moreover, its employees should be well-trained and maintain the relationship with Toyota. For this strategic decision area of operations management, Toyota uses lean manufacturing, which is also embodied in TPS.
  2. In this assignment, I will use supply chain theory to analyse how Toyota has managed its relationship with Denso and how Toyota can manage its supply chain better.
  3. Denso employs 85,000 people in 27 countries worldwide.
  4. The company also has a global HR network that supports flexibility and business resilience.
  5. In addition, Denso, as a supplier, must be able to deliver its products to its buyer, Toyota, at the right time. Toyota addresses this strategic decision area of operations management through technological advancement and quality.

The company also has a global HR network that supports flexibility and business resilience. Thus, in this strategic decision area of operations management, Toyota uses its global business reach to ensure optimal and stable productivity.

Case Study: Toyota Canada

For instance, some of these productivity measures are as follows: Number of product units per time manufacturing plant productivity Revenues per dealership Toyota dealership productivity Number of batch cycles per time supply chain productivity References Kachwala, T. Operations management and productivity techniques.

Expert systems for strategic planning in operations management: Toyota Motor Corporation 2015. Defining an information structure to analyse resource spending changes of operations management decisions. A generic accounting model to support operations management decisions. Copyright by Panmore Institute - All rights reserved. Educators, Researchers, and Students: