supply chain

Topics: Lean manufacturing, Toyota Production System, Kanban Pages: 9 (2370 words) Published: March 20, 2014

The operation plays key role in firms because it affects operation managers understand their customers and translate their customers' needs into performance objectives. "In turn, the performance objectives (and especially the relative importance of each one) influence the overall operations strategy of the business". (Slack et al., 2010,) The reason is that managers can based on performance objectives to do decision because it is reflection of corporation strengths and weaknesses. This essay will describe the Toyota Motor Corporation performance around five-performance objective: quality, speed, dependability, flexibility and cost. Then following discussion of how Toyota uses techniques in operation management to achieve the five objectives. Based on analysis, some suggestions for this firm will shows in the conclusion.


As most successful car manufacturer in the world, Toyota is a few automobile companies that able to be stockless production system by its unique operational management systems, the most famous Toyota Production System (TPS) and Just-In-Time (JIT). Further, in terms of five performance objectives, which Toyota did quite well in the overall circumstances, especially in the cost, speed and flexibility areas. Toyota cooperation was chosen to analysis because its significant performances and great operations management. Organizations can respond to the performance objectives, but the real challenge is to offer better quality, speed, dependability and flexibility at lower costs than the competition. (Slack et al., 2007) Also, the aim and objective of Toyota is making low-cost, high-efficiency, high-quality production to maximize customer satisfaction and keeping strong competitiveness. (Toyota, 2011)


Quality can be defined as "specification" of a product or service, also meaning high specification and must satisfy your customers by providing error-free goods and services, which are "fit for their purpose". (Pycraft, 2000) The external affect of good quality within in operations is that the customers without (or less) complain leading to customers more likely to consume again because the customer feel has received real value for money. This brings in more revenue for the company. For internal influence, conformance quality is high that generally means that cost is saved, dependability increases and speed of response increases. If an operation is continually correcting mistakes, it finds it difficult to respond quickly to customers' requests. (Slack et al., 2010)


Speed indicates the time between the beginning of an operation process and its end. (Greasley, 2010) "More specific, that means the elapsed time between a customer asking for a product or service and getting it with a satisfactory condition". (Slack et al., 2010) Externally affect of speed is important because it helps to respond quickly to customers and resulting customers return with more business. The internal side have much to do with cost reduction. Usually, faster throughput of information (or customers) will mean reduced costs via reduces the need to manage transformed resources as they pass through the operation and helps to overcome internal problems by maintaining dependability.


In terms of dependability, is usually means "being on time", in other words, keeping delivery promised to the customer that receive their products or services on time. (Slack et al., 2010) Also, dependability is other half of total delivery performance along with delivery speed and always linked in some way. In externally influence, dependability as good thing for customers also enhances the company product or service in the market, or at least avoids customer complaints. Internally dependability has affect on cost via saving time, saving money directly and giving an organisation the stability that allows it to improve its efficiencies. Moreover, it prevents late...
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