Evaluation of strategic objectives of operations management within toyota Essay


Toyota was founded in 1937 by Kiichiro Toyoda in 1937 and is headquartered in Aichi, Nagoya and in Tokyo.

Slowly Toyota Motor Corporation became the largest and the most successful car maker in Japan. Today It is the universes largest car maker catching Chrysler and Ford and cervix to make out with General Motors. As per Fortune Magazine, Toyota is the universes 5th largest publically traded company. As a comparing, General Motors is 9th largest!

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In 2009, Toyota ‘s employee base numbered upwards of 350,000 across the universe. Quite big as compared to the 2nd largest General Motors, with its employee base of 250,000.

Amongst of the corsage of its offering, Toyota offers, autos, pickups, minivans, and SUVs along with industrial cars such as forklifts and heavy trucks. Its trade names such as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the luxury Lexus line, the Scion trade name, and a full-sized pickup truck, the V-8 Tundra are virtually household names.

Toyota besides holds a bulk keeping interest in Daihatsu Motors, and minority shareholdings in Fuji Heavy Industries Isuzu Motors, every bit good as Yamaha Motors. Toyota Motor Corporation today has 522 subordinates.

Toyota besides offers consumer fiscal services through Toyota Financial Services and besides creates automatons. Toyota Industries and Finance divisions form the majority of the Toyota Group, one of the largest pudding stones in the universe.

Toyota became large thanks to its consciousness of the increased competition in recent times. Toyota ‘s ability to offer quality merchandises to its trade name loyal consumers has been the basis of its success.

Toyota has developed many schemes to guarantee non merely this end is reached one time, but its reached over and over once more. In chase of this aspiration, Toyota has created first-class quality and direction systems.

“ Quality is a “ predictable grade of uniformity and dependableness, at low cost and suited to the market ” ”

– Gitlow, 2001

This assignment offers an penetration into the direction policies and systems of Motor vehicles maker Toyota to command their end product quality.


Undertaking 1: Evaluation of strategic aims of operations direction within Toyota

a ) Role and Importance of effectual operations direction

Operations direction is a procedure that is a apogee of assorted input variables in a production/service unit with the aim of supplying an end product in footings of goods or services in a standardised mode as defined by the merchandise or service specification.

Hence Operations map is cardinal to any concern, irrespective of whether the concern is into fabricating or service sector and without mention to any industry since operations is responsible to for guaranting the quality and the seasonableness of the end product with mention to




And Cost.

“ The procedure of pull offing the operation unit activities with an purpose of obtaining quality end product of an organisation ‘s merchandises or services is referred to as operation direction ”

– Panneerselvam, 2006

Clearly, operations direction is of import because in industries where customisation is required, operations and quality direction ensures individualised attending to supply client satisfaction. Furthermore, it takes into consideration the velocity of fabrication or proviso of services to guarantee that deadlines are met. Any class corrections can be made with lower lead times and guarantee that scarce resources are non wasted.

Hence effectual and efficient operations and quality direction can supply the cutting competitory border to companies coercing extreme attending on their nucleus competences.

Therefore, Operations direction is a cardinal basis of overall quality and direction systems in any concern entity in any industry.

Strategic Objectives of Toyota and analysis of aims with appropriate tools

Strategic aims of Toyota are bred out of its purpose at being competitory in the car market. This aims are supplemented by clear operational and quality guidelines.

Objective 1: Expanded production over big geographical country.

Toyota ensures planetary presence by guaranting decentralized production for specific markets. These are complemented by individual sourcing form to supply optimal costs and at the same clip lower cargo costs for bringings. This is made possible by senior degree directors who uphold standard operating processs and standardization of fabrication procedures in line with quality systems to guarantee that the end product is optimized in footings of clip, cost and quality. This is the ground why Toyota is the taking trade name that it is today.

Objective 2: Social duty

Toyota focuses its operations to guarantee that client safety and environmental safety is cardinal to its cars. Toyota makes certain that these are taken into consideration for every theoretical account regardless of the car ‘s value or the trade name. Hence this nonsubjective cuts across its merchandise lines every bit long as they are a Toyota merchandise. Even the cheapest theoretical accounts has built in strengthened crumple zones, airbags and phonograph record brakes over and above what is mandated by jurisprudence. In fact, merely earlier this twelvemonth, Toyota had to remember its Prius theoretical account ( a loanblend auto ) due to failed safety criterions, it did so wholly over the universe, as a remedial action to guarantee that the societal duty of supplying safety to its merchandise users is invariably upheld. A gigantic undertaking of world-wide callback of its merchandises is non treated as a secondary undertaking following to gain devising and hence ensuring that the Toyota trade name is treated with regard in the long tally.

Objective 3: Fuel Economy

Toyota ensures that it manufactures cars with high fuel economic system. Toyota are hence innovators of use of intercrossed engineering to fabricate engines that are fuel efficient and hence cost effectual for the consumers. This opens up possibilities and markets such as developing markets so that the trade name has an image of holding low running costs. Of class, common sense suggests that cheaper a vehicle to run, the more will be the mass entreaty. This scheme works brightly in economic systems where the composing of in-between category and lower categories is high.

Objective 4: Low Cost – High Value merchandises

Toyota has streamlined its operations to guarantee that cost optimisation takes topographic point. This cost optimisation is done with the aim of go throughing on nest eggs to its consumers in the signifier of lower monetary values for its cars. By holding a cardinal point of sourcing for natural stuffs and negociating with providers for better monetary values, Toyota has reduced its costs. Enterprises such as production being decentralized and sourcing from low cost states such as China and India. This has helped the trade name to be cost effectual and enhance trade name trueness

Designation of public presentation operations aims of Toyota and effectivity of operations in run intoing strategic aims

One of the public presentation operations aims of Toyota is to bring forth quality vehicles acceptable all over the universe. A Toyota civilization has been developed where the senior executives set specific quality result of a vehicle and direct their study managers to implement and the result will be used in their fillips finding. The studies received will so be used by the frailty presidents of Toyota to develop programs, set marks and execution. The executives will care of nil every bit long as set consequences are achieved ( Liker, Hoseus & A ; Center for Quality People and Organizations, 2007, P. 453 ) . The developed program will so be used by operational directors to bring forth the vehicles.

The quality of a vehicle is non merely the conformation to the laid down specifications but it includes other parametric quantities. These include basic public presentation facts such as whether the vehicle can execute its primary map, any excess characteristics that is fitted, how good the vehicle will be used without proficient failures, the life span of the vehicle before being written off, the ability to service, the beauty and comfort every bit good as client perceptual experience of its quality ( Neely, 2007, P. 68 ) . The amount of all these indexs being of good criterions will give a suggestion of a good quality merchandise from Toyota. Thus we can corroborate that this public presentation aim on quality will enable the company achieve the strategic aim of bring forthing quality vehicles.

Second public presentation operations objective of Toyota is on cost of bring forthing a vehicle. Toyota uses cost benefit analysis in production operation. The directors will analyse the cost of utilizing a line of production and if it meets the company demands, the option is used. However if it does non run into the cost demands, the option would be dropped and other options are considered iteratively. This procedure continues until the cost effectual manner of bring forthing certain merchandise is achieved ( Rother, 2009, P. 53 ) . Thus the strategic aim of Toyota of bring forthing low priced vehicles is achieved through this public presentation operation aim. Therefore it is the duty of Toyota directors to guarantee that all their production processes is within the cost budget and failure will intend that they will go on prosecuting options to the point of meeting set cost bounds.

Speed is another operation public presentation aim that encompasses the clip taken from production to bringing of a Toyota merchandise to a client. The shorter the clip taken indicates high velocity public presentation at the company. The velocity will mention to the continuance it takes for obtain citation, the clip taken for a client to have the merchandise, the figure of times at which bringings can be made to clients, the clip taken in production and the continuance of developing a new merchandise for the market ( Neely, 2007, P. 68 ) . The overall velocity will guarantee that a batch of bringings every bit good as high production. This is really of import in guaranting that the strategic aim of increased volume of production and gross revenues is achieved by the company.

The 4th operation public presentation aim is the dependableness. This refers to the ability to lodge to put out agenda of operation. This is to intend that a merchandise will be developed within a criterion required process without divergence to guarantee its quality is maintained every bit good as velocity. The dependableness will besides include the bringing aim on whether the Toyota merchandise is delivered in required quality and on clip while maintaining the monetary value depression ( Neely, 2007, P. 68 ) . This public presentation aim will back up the overall strategic aim increasing client assurance on Toyota merchandises.

The other public presentation aim of Toyota is flexibleness. This will come in signifier of scope and response flexibleness. The scope flexibleness is a state of affairs where Toyota is able to run into a diversified scope of demands in a merchandise. The response flexibleness of a company is its ability to alter every bit shortly as possible in state of affairss which demand so. There have been extra flexibleness demands that go good in guaranting strategic aims of the company are achieved. These include the ability to cover with natural stuffs of different qualities, end product of diverse quality, changed merchandises, altered bringing times, different production measure, diverse production blend and ability to set to different input mix in production ( Neely, 2007, P. 68 ) . These are normally the unanticipated state of affairss that a company may undergo. Therefore a company being flexible plenty will set consequently in any scenario. This is an of import public presentation aim of Toyota that ensures that all its strategic aims are achieved.

Undertaking 2

Design and monitoring of appropriate systems to guarantee quality of nutrient points

Resources, Tools and Systems required to back up concern procedure in betterment of quality of merchandises

Resources are the needed demand of any company before the start of any operation. A resource is an input demand which when mixed with other resources and utilised gives the coveted result of any company. As for Toyota, the coveted result is choice vehicle production whereas all resources utilized perform specific undertakings. One of the major resources utilized by Toyota is people. There are executive determination shapers, ordinary people and thin Zealots ( Liker, 2004, P. 269 & A ; 260 ) . The thin Zealots are those that have led the cost cutting docket of Toyota to accomplishable criterions. For any company to accomplish thin aim in its processs, there must be employees who consider thin budgets a really of import component and travel to the length of supporting.

The other people are executive determination shapers of Toyota. These are the people who know small about the procedures involved in doing Toyota merchandises but they are acute consequences. They are of import for guaranting coveted aims and consequences are met by the company. There are besides the ordinary people at Toyota. These are the normal directors and operational staff. They know the whole procedure of production to the point of sale and they carry out the proficient operations of the company. They usually do their occupation without seeing the flow thereof or how it translates to profit Toyota ( Liker, 2004, P. 270 ) . Their concern is to work and acquire paid and they follow instructions to the later.

Other resource used by Toyota is the engineering. This has given a batch of benefits to Toyota because it has enabled it to be efficient in production. The usage of engineering to bring forth fuel economical engines is a great use of engineering resource ( Vaghefi & A ; Huellmantel, 1999, 381 ) . This is an efficient use of engineering to guarantee that the strategic aims of Toyota were achieved.

The systems and tools used mean those developed plans specifically to be utilized by Toyota in order to run into its concern procedures. These tools are of import because they guarantee that accurate consequences are achieved and that production capacity is enhanced. An illustration of a tool used by Toyota is Quality Function Development ( QFD ) . This is a client centered method of direction scheme because it focuses on anything that concerns a client ( Denton, 1991, P. 61 ) .The QFD helps in measuring the client demands in order to concentrate all the attending on a client while bring forthing any merchandise. Another illustration of a system being used is Toyota production system. This system has ensured minimum wastage during production and therefore maintaining the cost of production every bit low as possible. The system encourages entire quality production using engineering. The tool has helped Toyota to develop acceptable vehicles in the market and as such lead to a successful concern procedure.

Quality Audit Systems/practice to pull off and supervise quality to criterions specified by Toyota and procedure operated.

Quality audit is a procedure whereby an analysis of a system is carried out to look into on its truth degrees, operation and effectivity in transporting out the needed undertakings. The procedure of reappraisal is the act of corroborating whether a system is executing needed undertakings as per set criterions. Harmonizing to Mills ( 1989, P. 17 ) , a quality system reappraisal is a formal rating by direction of the position and capableness of a system in relation to quality policy and new aims happening from altering state of affairss.

A system used by Toyota is called Toyota production system. The procedure starts from natural stuffs transmutation to the point of finished merchandises. The good quality audit should be able to analyze the procedure analysis every bit good as operation analysis. The procedure analysis is the scrutiny of the motions of natural stuffs or merchandises from one point to the following. The operation analysis examines the occupation done by people and machines ( Shingo, ShingA? and Dillon, 1989, P. 4 ) . Thus a good quality audit system should be able to reexamine all the procedures involved in Toyota production system.

The Toyota production system is based on thin fabrication. Therefore an effectual audit should be aimed at run intoing thin fabrication demands. It includes an audit system which focuses on guaranting that the merchandises meet the value expected by the client. The audit should be able to place countries where value is compromised and disciplinary steps recommended instantly ( Russell, 2005, P. 237 ) . The audit system should besides be able to supervise the value watercourse. This is the procedure where the audit tests the value of the merchandise as it passes through the assorted production procedures and should be able to observe any discrepancy every bit shortly as possible.

The audit system should besides be able to supervise the merchandise motion in the Toyota production system. There should be a uninterrupted flow without arrest and the audit should be able to observe any such breaks and recommendations suggested. In add-on appropriate quality audit system should guarantee that clients are supplied with the merchandise merely when they need to avoid dumping procedure which may do inordinate supply hence drawing the monetary values down ( Russell, 2005, P. 237 ) .

The other of import factor for quality audit system appropriate is a system that ensures flawlessness is achieved by Toyota production system ever. The system should guarantee a uninterrupted trial procedure to guarantee lone betterments are accepted and any retrograde occurrences corrected instantly ( Russell, 2005, P. 237 ) . The quality audit system should be able to guarantee a normal operation of Toyota production system as expected and any proficient mistakes detected should be corrected.

The quality system described above is of import because is ensures the fight of Toyota by guaranting that it achieves its strategic aims without being affected by mistakes that may impact their system. This is because effectual quality audit ensures that such mistakes are limited as possible. The system can be adapted by engaging experts who can develop such a system and so set in topographic point at all times. This quality audit should be able to run at the same time with production procedure at all times for it to be effectual in guaranting that Toyota production system achieves its public presentation aims.

How to present a civilization of quality consciousness to guarantee uninterrupted monitoring and development of the procedure.

A choice civilization is defined as behaviour that encourages trust and regard among persons, shared belief of rank of an organisation and a belief that changeless betterment is for a common good to all ( Dale, 2003, P. 184 ) . Harmonizing to Dale ( 2003, P. 184 ) , choice civilization in an organisation is where all members portion a common position of uninterrupted betterment aimed at client satisfaction. The alteration of civilization in many organisations has been hard but it is an of import portion in guaranting that all members have similar desires to accomplish.

The civilization of Toyota has been uninterrupted preparation and betterment of its employees over clip with the purpose of guaranting that they offer first-class service to clients ( Liker and Hoseus, 2007, P. 112 ) . They have been taking its employees to classrooms for farther preparations. Although, Toyota has a batch of employees it is of import for it to develop elaborate policies that encourages client focal point and changeless betterment of employee public presentation. The demand for a civilization is of import for future continued success of the company.

Undertaking 3

Bettering organisational public presentation

Monitoring of systems and work activities in Toyota and designation of jobs and chances for betterment.

Toyota has had its systems in topographic point and has been developed over clip. However, there have been jobs which have caused losingss to happen in 2009. Although it has been affected by economic crisis which hit universe economies the system was non able to react suitably to avoid the loss. Therefore Toyota production system failed every bit indicated by recent activities of remembering faulty vehicles. The intended intent of the system was to observe and make over on several parts as it carries fixs to guarantee what goes to the market is fault cogent evidence. Therefore the nucleus strategic aim of bring forthing quality and safe vehicles has been severely affected by recent activities of the company.

The major job impacting the system is failure to present on its nucleus intent of observing mistakes. This has led to failure to extinguish detective merchandises and has caused wastage of clip and resources in remembering the faulty vehicles. This has caused loss of gross revenues and concentrate therefore cut downing net incomes and possibly forced to state of affairss of loss. The work force used to mend faulty vehicles has been diverted from its core responsibilities of fabricating to mend therefore cut downing the measure produced.

The chance that Toyota can avail to better its concern procedure is to work on acquiring back the client assurance on its merchandises. This calls for systems betterment to do it error cogent evidence in the hereafter and therefore no jobs pass without the notice of the company. The move to remember all the faulty vehicles was wise in demoing Toyota ‘s concern on safety. The system should be focused more on safety betterment to extinguish serious mistakes like brake system failure which puts off prospective clients.

Recommendation of betterments to aline with Toyota aims and ends

Based on the strategic aims of Toyota the recommendations are directed toward accomplishing these ends. The safety should be prioritized by Toyota by all agencies possible. This is portion of the nucleus objectives that the company should do vehicles of high safety. The job that has befallen the company is because of safety. Therefore I recommend that the company prosecute experts in bettering the safety of all produced theoretical accounts.

Another nucleus aim of Toyota has been low cost production. This has been affected by globally lifting monetary values which may do it impossible for Toyota to keep low cost. I would urge that Toyota better the quality criterions of accoutrements so that clients will detect appreciating quality of the vehicle and may non react negatively to upward monetary value accommodation but instead appreciate added quality. This may be a good option to keep both market portion and do net income to prolong its hereafter growing and development chances.

The company should take to utilize its flexibleness public presentation nonsubjective efficaciously to be able to set to the altering concern environment to avoid being found in scenarios where it can non shrive itself from losingss out of declining market environment. They should utilize their variegation techniques to seek new markets in the universe through aggressive selling which may bear fruits. They may travel an excess stat mi by offering after sale service care for excess continuance or stat mis covered. This will raise their image and will work good to accomplishing their nucleus aim of bring forthing and selling the highest figure of vehicles. This accomplishment will interpret to high net income borders.

The system should be integrated to be able to suit above recommendations so as to be able to incorporate the whole costs and procedures involved. The chances available for Toyota is to transport out farther research on its system of production to enable it transport out available accommodations in order to go on being competitory in the motor vehicle fabrication industry. Thus the company should put on farther research activities on it concern processes.

The recommendations will be possible to be implemented by the company because it is an already established in the sector and bettering on available systems will be a success. The executions and farther battle in research as the system is improved will turn the company to its profitableness position as it was and client satisfaction achieved. The nucleus vision of the company will be attained in the long tally.

Wider deductions of proposed alterations within Toyota

Development of an Implementation Plan for the evaluated recommendations and possible alterations that may be required within Toyota


An appropriate program for implementing executable recommendations is first to guarantee that the quality of the vehicles is achieved in footings of safety. All the quality analysis should be in done in order to accomplish the client assurance on the merchandises. Once that is achieved, the company should ship on a selling scheme as they include improved after sale services and other luring attractive forces to their vehicles. Finally a continued research should be done on an on-going procedure to guarantee that flexibleness of the company is achieved at all times. The possible alterations after execution is that the company will likely return Toyota back to its profitableness position. Continuous research will propose alterations on a little footing as the company continues in its twenty-four hours to twenty-four hours production.


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