Toyota Mortors assignment

Topics: Management, Toyota, Toyota Production System Pages: 20 (6869 words) Published: December 13, 2013
Operation Management

Team P.A.L
Minchul Seo (M66310)
Altanzul Puntsagdorj (M66326)
Table of Contents


Industries and Company Information4

Explanation of OM Capabilities6

How Company Uses OM7

Comparison with one of the competitors, Hyundai Mot9

Identify Problems11

SWOT Analysis14

Regarding Toyota Crisis18

Areas to use for improvements of Critical Business activities in OM 23

Provide Multiple Solutions25


Toyota Motor Corporation is one of the leading automobile manufacturers in the world by not only its models but also its management. We can say that the principles that Toyota Motor Corporation uses are the way to their success. For instance, they do not only want to be successful by themselves but also they respect their partners and suppliers by challenging them and helping them improve. Toyota wants to be reliable to the customers, suppliers and to the organization. For this reason, they use some operating management technologies such as Just In Time (JIT), Quality Management (QM), Total Quality Management (TQM) and so on1. Using these technologies they could reduce to time they spent on manufacturing, shipping, ordering, receiving, forecasting and many others. It also affected to their quality and the overall mission to be succeed. They do not try to hide their weakness and problems in the organization so that they can fix them easily by using simple visual indicators to help people determine their problems immediately whether they are in standard condition deviating from it. Toyota Motor Corporation is used to listen to their employees, managers and executives. By letting every employee in the organization using their knowledge and sharing them on improving the quality and design of the products, they found some great importance, which were the quality improvement, the product living and its reputation. The overall result is that they could achieve their team management. Similar to this there is a saying that “a single wood can not make good fire and a single person can not make a good family”. This report looks at how operations management techniques such as supply chain management and inventory management have led to efficiency and profitability at the Toyota Motor Company. Industries and Company Information

Automobile industry in the United States led the world in total automobile production for many decades. In 1929 before the Great Depression, there were 32,028,500 automobiles in use all over the world, and the US automobile industry produced over 90% of them. At that time even in the U.S. the car usage was one car per 4.87 persons. After WWII the U.S. issued 3/4 of world's auto production. In 1980 the U.S. was overtaken by Japanese automobile manufacturers but became world's leader again in 1994. In 2006, Japan had almost passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units produced. Chinese automobile producers were in first place by producing 18.4 million units in 2011 which ranked twice the number of automobiles made by the U.S. in second place with 8.7 million units, while Japan was in third place with 8.4 million units produces2.

Toyota Motor Corporation, the biggest automobile company not only in Japan but also among all other Asian motor companies, has expanded its demand for affordable and reliable automobiles during the past 40 years. The Toyota Motor Corporation started its business not directly. The owner Kiichiro Toyoda visited the United States and some other automobile plants in 1933 and returned to Japan and started an automobile division in his father’s loom factory. At that time General Motors and Ford had already established their automobile plants in Japan but Toyoda did not give up and Toyota Motor Corporation was founded in August 28th, 1937. The Toyota Motor Corporation faced with trouble...

References: 1. Gallup (2010). Americans, Toyota Owners Still Confident in Toyota Vehicles. March 2, 2010.
2. N. Roland (2011). Toyota Doesn’t Go Far Enough on Safety Management Changes, Panel Says. Automotive News, May 23, 2011.
3. C. Jensen (2010). Toyota’s Image Falls in J.D. Power Survey. New York Times, June 18, 2010.
4. Christopher Ludwig (2013). Toyota’s total supply chain vision. Automotive Logistics, July 01, 2013.
5. Ovidijus Jurevicius (2013). SWOT analysis of Toyota. Strategic Management Insight, Fed 25, 2013.
6. Robert E. Cole (2010). No Big Quality Problems at Toyota? Harvard Business Review, March 9, 2010.
7. Tim (2010), Troubles in Toyota City. Business Theory, Feb 10, 2010.
8. Hunter, S. L. (2008). The Toyota Production System Applied to the Upholstery Furniture Manufaturing Industry. Mississippi, 2008.
9. Lee, H. B., & Jo, H. (2007). The mutation of the Toyota Production System: adapting the TPS at Hyundai Motor Company (Vol. 45), 2007.
10. D. Barkholz (2010). Fixing Cars’ Brains Saves Ford Millions. Automotive News, May 11, 2010.
11. N. Shirouzu (2010). Inside Toyota, Executives Trade Blame Over Debacle. Wall Street Journal, April 13, 2010.
13. Peter Whoriskey (2010). Toyota unsure how to solve safety issues. Washington Post, Fed 24, 2010.
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