This report is developed in the form of a business report. The main aim of the business report is to gain access in the specific business operation of a selected company. For such purpose, Toyota Motors has been selected as the target business organization. Toyota Motors is a Japanese automobile company which mainly deals in designing, assembling, manufacturing and distributing automotive products all over the world. This report is mainly objective to analyze whether the selected business operation of the company is effective enough in the light of the defined key objectives. The business operation of Toyota selected for this purpose is assembling operation of the auto parts (Toyota Motors, 2014). In the report, a clear overview of the organization is provided.
Along with this, the evaluation of the business operations are done in the light of the literature. Further, the main findings of the evaluation of the business process are provided in terms of critical evaluation of the business operation selected. The report has provided some significant recommendation on the basis of the evaluation of the business operation of Toyota Motors in order to make significant improvements in its operation process. This report will prove a significant piece of information for Toyota Motors to win competitive advantage in the long run.
Toyota Motors as an organization mainly operates in the automobile industry. The main business operations of the company include manufacturing, assembling and delivering the automotive products to the consumers. Toyota Motors mainly develops cars and other light motor vehicles. The company is mainly located in Japan but it operates its business in almost all countries of the world and has covered a great turnover in the recent years through its continuous sales. The annual sales of the company are counted as $255.64 billion (Forbes, 2014). This research is mainly applied in the operations department of the company. In the operations department of the company, assembling of the auto parts is the most crucial area of business operations and hence it is very important for company’s profits and sustainability.
In the following report, research method used is the primary data collection by interviewing the sample population of executive managers in the department of capacity strategy planning of Toyota Company (Cohen, Manion and Morrison, 2013). For the survey purpose, selection of the 10 sample size population will be done. In this method, different question is designed according to thematic analysis in which questions are designed according to different themes of the given topic.
The below discussion is divided different categories like performance assessment of Toyota Company, the traditional capacity strategy planning used by the company and the recommended capacity strategy planning for the Toyota company. This is the most appropriate sampling strategy as it avoids ethical issues of biases or discrimination. In this method, all the selected executive managers from the department of capacity strategy planning of Toyota Company will provide their views regarding the capacity strategy planning used by Toyota Company. The questions designed for the interview are:
1. The importance of using Capacity Strategy planning method?
2. What is the present Capacity Strategy planning method used by Toyota Company?
3. How this method useful for the company?
4. Suggest another capacity Strategy planning method that the Company can adopt?
5. What are the benefits of using any other method for Capacity Strategy planning?
The production system of Toyota aims at fulfilling the demands of the customers. Toyota production system is considered as the system that mainly focuses on providing the high quality of vehicles to the customers. Toyota production system mainly emphasizes to deliver great satisfaction among its employees (Toyota, n.d). Including this, Toyota production system also stresses on providing proper security to its workers and deliver fair treatment with each and every individual working in the organization. Toyota production system includes the elimination of waste and garbage. This results in increasing the effectiveness of the workers working over there. The main aim of the Toyota production system is to improve the standard process and adopt a safe method for the production and promoting the quality of the products.
Toyota production system is considered as the path of designing the things that also in some cases is recognized as the just-in-time system. The capacity planning strategy that is used by the Toyota Company in order to improve the productivity level is the just-in –time strategy. This strategy is adopted by the company for the continuous improvement. The aim objective of Toyota to implement this strategy is to make the vehicles as per the need of the customers in an effective way. The main purpose of this is to deliver the vehicles as soon as possible. Just –in-time is found as the major concept that the Toyota Company uses for the purpose of producing only that much products that are required in the next step of the production to maintain the continuous flow (Toyota Gobal.com, 2014). On the basis of the principles of the Just-In-Time strategy, Toyota production System can more effectively produce the vehicles at a time and fulfill the desires of the customers.
Just-In-Time is the strategy that is adopted by the Toyota production system. This strategy is quite effective in order to manufacture the product that is required. Moreover, it also emphasizes on producing the required product at a required time and the cost that is required for the purpose of manufacturing the product. This strategy has helped the company in order to produce the valuable product by eliminating all the waste and unwanted requirements on the production system (Toyota Gobal.com, 2014). The major benefit by implementing Just-In-Time is that the production of the vehicle can be done very successfully and even in the small time period.
Just-In-Time also helps in maintaining the continuous flow of the work by proper planning. This strategy plays a very significant role in the movement of goods and also reduces the cost of the materials and their capacity (Toyota, n.d). The Just-In-Time mainly based on the principle of demand and supply. This strategy helps in assembling the manufacturing parts and materials that are required in an appropriate amount at the time when it is needed. The distribution process is effectively managed by the Toyota and provides modified vehicle with in the process. By implementing Just-in time method, Toyota directly sends the finished products at the stock where they can be easily classified according to the region (Broyles, 2005).
This strategy has proved to be very effective and has reduced the delivery rates by two times. This strategy is used by the Toyota Company for enhancing the effectiveness of the productivity and in reducing the wastage. Jut-in-Time has helped the company in terms of delivering the right quality to the customers (Toyota, n.d). The orders are also prepared at the required time and assemble all the required manufacturing parts at the proper time. This strategy has also helped in maintaining the competitive position of Toyota in the market.
Capacity Planning is very useful for Toyota as it helps the company to properly plan the capacity in terms of supply and demand of the customers. Toyota believes that raw material must not be brought to the production department until they receive an order for it. This helps the Company to accomplish the correct future capacity requirement by evaluating the current status. Toyota uses Just in Time capacity planning strategy. Just in Time Capacity strategy planning is basically the plan for the right requirement including the right amount of production at the right time. Example: the automobiles companies have to assemble many large parts in a single system around 30,000. Therefore proper management of the resources in terms of their quantity and time is very important to avoid wastage and better productivity.
This plan helps the company to examine the production capacity to meet the demand of users. In simple words, it helps in proper coordination of demand and supply chain. In case the demand is too high then without capacity planning it becomes very difficult to take the correct steps needed to meet the high demand. If the company lacks in fulfilling the customer’s demand then the company will lose the trust of customers and it will also affect their reputations. In case the products produce are higher than the demand then it will lead to wastage of resources, money and time for the company. Therefore, JIT provides safety for the production. Mostly automobiles companies get to benefit from the concept of JIT capacity planning.
There are many theories that can be applied in Toyota for the management of different operation like total quality management (TQM), lean manufacturing (LM), supply chain management (SCM), six sigma (SS) and theory of constraints (TOC). The most general and beneficial theory among all is a theory of constraints. This helps in improving the process, quality and capacity of the system. But Toyota and all other automobiles companies prefer JIT capacity panning strategy method rather than any other.
Instead of using Just in Time capacity management, Toyota can schedule the capacity management by planning the way to meet the demands of the customer at the busy interval of time. The company should understand that the demand for their products will be high at the time of starting or new year or at the time when the company introduces new product and accordingly they should manage their capacity. They can analyze the past data to assume the level of demand during the year at different occasion and times.
The staff management will also help in better capacity planning. This will help the company to arrange their staff in the better way such that the company does not face any problem to get their work done at the time of high demand. The company can ask the employees to do over time at peak duration as it will eliminate the training and hiring cost of new employees.
Furthermore, the company can also use the Theory of Constraints to find the hindrance in the system that minimizes their production. By using this concept company can eliminate the reason that slow down their production. Once the Toyota Company notices and eliminates the constraints, they should find other constraints and eliminate them. Toyota can properly use their resources by reducing the amount of wastage. Capacity planning will also help the Toyota Company to compare the demand of their different automobile models. Then they can give more focus on producing the cars that are in high demand. The outcomes of this will be that Toyota Company can save money and time on producing the less demanding cars and invest more cars with high demand. All these recommendations will help the Company to achieve better reputations in the market and stay for long in the competitive world.
Toyota is an automobile multinational company with headquarters situated in Toyota City, Japan. On the basis of the above facts, it is depicted that the Just-in-Time is considered as the most appropriate strategy by Toyota Company for the purpose of producing right quality of products to the customers. This strategy is adopted by Toyota in order to reduce the issue related to the wastage and in maintaining the competitive position in the present world. There are many other capacities planning strategies that the company can adapt but as per the records, all automobiles Company does not want to adopt any other capacity management concept.
The business operations of the company related to assembly of the auto products are managed efficiently by the people involved in these operations. The company does consider the process of risk management and operational efficiency in order to keep the overall performance of the selected operations in at a good pace in the long run. The recommended strategy has been proved quite significant for the company in the present run, as well as, it will also render a sustainable business position to the company for making its operational functions realistic and meeting the demands of the consumers in the better way over competitors.
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Cohen, L., Manion, L., and Morrison, K. 2013. Research Methods in Education. London: Routledge.
Forbes, 2014. Toyota Motors. [Online]. Available at: https://www.forbes.com/companies/toyota-motor/ [Accessed on: 10 November 2014].
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