Toyota Case Study

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At the beginning, the author explains 3 chain managements of Toyota. First one is the supply chain management system. The lean manufacturing concepts are created by Toyota such as Kanban, Just-in-Time and Kaizen. Toyota’s production system has become so worldwide affective; lots of manufacturers are using Toyota’s lean system. Second component is, demand chain management which is coordination of information, material and financial flows in the distribution of vehicles. And the last component is service chain management, the goal of service chain is, to make customer loyal to Toyota after they buy the vehicle by providing service parts for repair, maintenance and providing good service. Toyota Way is the philosophy of the business belief in the company. It is supported by two main pillars as, “Continuous Improvement” and “Respect for People”. Continuous Improvement is based on 3 significant factors; Challenge, it purposes forming long term division and meeting challenges with courage and creativity. Kaizen targets improving business; creating and thinking innovation and evolution for the business. Genchi Genbutsu is about the analyzing problems and going to the source of it and try to make correct decisions by building consensus with best speed. Respect for People policy is formed by two components; Respect, try to understand other employees, respect their ideas and take responsibility and do the best to build mutual trust. Other component is Teamwork. Toyota applies Toyota Way to manage dealers, such as giving dealers independency to make free decisions and help them to invest right things if they need. Toyota can provide financial help to dealers when they have financial difficulties or assist them through knowledge transfer. As an example, Toyota helped its one of the largest dealerships called NTP (Japan). Toyota helped to streamline the layout of their Preparation distribution inventory and as a result their logistic flow improved and...
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