Operational Processes And KPIs In Toyota: A Case Study Essay.

Describe Kaizen is the heart of the Toyota Production System.. Like all mass-production systems, the Toyota process requires that all tasks,both human and mechanical, be very precisely defined and standardized to ensure maximum quality, eliminate waste and improve efficiency.

Toyota Members have a responsibility not only to follow closely these standardized work guidelines but also to seek their continual improvement. This is simply common sense - since it is clear that inherent inefficiencies or problems in
any procedure will always be most apparent to those closest to the process.The day-to-day improvements that Members and their Team Leaders make to their working practices and equipment are known as kaizen. But the term also has a wider meeting: it means a continual striving for improvement in every sphere of the Company's activities - from the most basic manufacturing process to serving the customer and the wider community beyond.

1. Based on the corporate philosophy of 'customer first' and 'quality first' since its founding, Toyota Motor Co., Ltd. won the Deming Application Prize in 1965 and the Japan Quality Control Award in 1970, following the introduction of statistical quality control (SQC) in 1949, and has conducted Total Quality Management (TQM) based on the unchanging principles of 'customer first', kaizen (continuous improvement), and 'total participation'.

2. In addition, since the launch of the Creative Idea Suggestion System in 1951,the number of suggestions made has steadily increased, and the system has supported flexible responses to changes that involve monozukuri (conscientious
manufacturing), making substantial contributions to the company's development.5. As a result, the basic concepts of TQM and problem solving as well as kaizen (continuous improvement) through creative innovation spread throughout
the company and took root, contributing to higher product quality and work quality at all levels and ranks and improving the vitality of individuals and organizations. 

Operational Processes in Toyota

Operational management is necessary to be for the development of the strategic business. These strategies are used to offer a plan for designing and managing the different functions of operations in a way to assist business production. In this aspect, the operational process is one of the ways in which business operates functionally. The main purpose of operational management, in particular, is to provide a competitive advantage to the organisation. Therefore, this specific ability of the company to gain success in the market is often known as competing priorities. It is by the way of providing excellence in business the company makes it possible to place itself as the winner in the particular market.

In this context, the assignment presents the operational processes of Toyota with respect to the key performance indicators and the total quality management effort taken by the company.it has been seen in the case study that Toyota faced several challenging issues while growing its business. However, it is the operational manager of Toyota who determined to enhance the process of production within the company through years of the trial as well as mistakes. The company’s hidden weapon of success is lean manufacturing that is a revolutionary initiative towards business. It has helped the company to balance the duties of the employees within the company while valuing the continuous improvement of the company.

Discussion

Answer 1

Balance score card through the aspects of Key performance standards

Answer 2

Performance

In the case of performance, Toyota is known as the most successful company in the world. The performance of Toyota is linked to the objectives set by the company. The company aims to produce fuel effective cars to satisfy the consumers. It is the management that improves the sales proves to speed up the operational processes. In order to provide customer oriented service they maintains the product quality, Toyota also maintains a Japanese method of operation known as the principle of Kaizen that mostly focuses on the procedure of continuous improvement of processes

Characteristics

In the case of business features, they have introduced several efficient processes that help the company records the information while offering them to the consumers. These specific steps taken by the company have been analysed that assists the management to take effective steps. Therefore, using the operations the company limits waste usage thereby improving quality encouraging learning and growth opportunities.  In case of employee management the company pays a comparatively high salary to the Japanese workers for maintaining reputation (Elmes & Barry, 2017).

Key Performance Indicators in Toyota

Dependability

In case of reliability, Toyota has more than 38 most reliable models that lasted over for 15 years. The system of production used by the company is the most innovative approach that dominated the process for almost 10 years. It is the lean process of manufacturing that helps the company to provide customer value and quit in production without any disruption.

Conformity

In case of conformity measures the performance of the staffs and analyses the improvement that has to be made to confirm the outcome of the product. The company appoints a performance-related task to the employees (Duffield & Whitty, 2015). Through this process of the company successfully analyses the performance quality of the employee and progress towards the development of the products along with investing ideas on innovative products.

Durability

Toyota is one of the most successful companies that aim to sell high-quality products to the customers from across the world. Durability and dependability are the most necessary components that are related to the organisation (Psomas & Antony, 2015). Therefore, for enhancing the processes of production the company started to develop durable plans that will help the company to enhance its sales. The management unit of the company has managed the functional process for reducing the costs that are associated with the activities of productions.  Most of the products of Toyota are durable as they intend to provide the customers with huge benefit and satisfaction.

Serviceability

The strategy used by the company helped the, to manufacture quality products by reducing the use of waste and useless production (Influenced by Su, Baird & Schoch).  The company maintains the consistent flow of task as per the planning. The members of Toyota have the inherent duty to follow the guidelines for continuous improvement of the products.  For enhancing the service of production and employees the company aims to make regular production in support of the members and team leaders of the company. Based on these factors the company maintains the philosophy customer-oriented service that gives the first priority to quality.

Aesthetics

The aesthetic quality of the company is to retail customer from various markets by delivering quality and cost-efficient services to the target customers. Toyota is through this service takes the effort to retain customers and offers the service by manufacturing hybrid cars that consumers reduced the number of fuels (influenced by Fidel, Schlesinger & Cervera, 2015).

These are the process that makes them unique amongst the competitive market. These factors have helped them to raise their sales from the group of rivals in the market. For the customers, the company delivers huge value for cars at an affordable price thereby fulfilling the health and safety needs of the employee. However, employee’s creativity is getting lost owing to the unnecessary movement occurring due to overproduction and imbalances in delivers from the potential suppliers. These processes are required to be noted by the company. 

Total Quality Management in Toyota

Observed quality

In order to enhance and increase the quality of the product as well service Toyota works collaboratively with the system of management to enhance the supply chain system. Through the technique, the company intends to obtain the competitive edge over the rival companies and tries to provide the best services to the customers (Duffield & Whitty, 2015). 

However, there are certain defective areas in production that concern for repair and replacement of manufacturing and time. Focusing on these issues, Toyota aims to establish a supply management system that will help them in distributing the proper products to the clients. However, the company has shown some process of overproduction that called for overwork and delay in service provision due to the lack of stocks. They are, therefore, required to improve the process of production to retain back customers.

Answer 3

Kaizen is a Japanese method of operational process of management that is usually based on the principle of Kaizen. These purposes of the method are incremental in nature that helps in continuous change (Bryson, 2018). The initiative of the method is related to the lean process of production that basically intends to reduce the production of waste resources that do not give any value to the products. In this process the idea of continuous change on daily basis to deliver human needs within the workplace and to fulfil the needs of total quality management. Toyota uses Kaizen management system to reduce the cist, and to increase the involvement of the employees by fostering a workplace with high value and motivation. The company has consistent encouragement for implementing innovation in the organisation.

Toyota benchmarks its business in case of efficiency. To maintain the philosophy of kaizen Toyota invites their team to think about the operations in a timely manner to keeps its process run in a smooth way (Duffield & Whitty, 2015). They have continuously improved the company by creating innovation throughout and by contributing high-quality production at all the levels of the organisation. The company introduced and total quality management the statistical quality to adhere to the principle of customer’s first service.

Conclusion

Therefore, it can be concluded from the study that performance management and quality are necessary components of operations management that allow Toyota to contribute towards the successful business. Drawing from the aspects of Balanced score Card of Toyota it is evident that the company has a high marketing investment for sustaining the quality of the product and to maintain the satisfaction of the customers. In this procedure of management, the company aims to evaluate the problems and challenges that present in their system of inventory and production.

In this course of time the company drafts down the best methods that are suitable for the company and the tasks that can be effectively archived. Meanwhile, they regularly supervise the performance of the employees and try to fulfil the demands made by the customers in the process of production. This component helps Toyota to manage the quality of service that is offered to the customers.

Reference list

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