This structure is also linked to the traditional organizational structures used in Japanese businesses. The effectiveness of Toyota in maintaining a strong global presence shows its ability to use its organizational structure to maximize efficiency and capacity utilization. This structure underwent significant changes in This was seen as a response to the safety issues and corresponding product recalls that started in
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 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. 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. 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.
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.
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. 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. 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. 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 Defining an information structure to analyse resource spending changes of operations management decisions.This case study analyzes the global mindset at Ford Motor Company, a leading multinational manufacturer of cars and trucks.
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