Toyota sets itself apart from its competitors by capitalizing on reliability. With this objective, the Japanese company has developed a rigorous management style, which aims for "zero defect". It is this force that drives the brand. It is therefore not surprising to find Toyota consistently topping both the consumer satisfaction and reliability surveys in Japan, Europe and USA.
We may recall in this connection that Toyota offers a five-year warranty on its vehicles, which almost none of its competitors can do; the brand is sure of its reliability. Supported by a strategy of vigilance, it might be described as "obsessive" and continues to remain so. Production is made optimal at each step, and this applies to the U.S. production lines, as well as those found in Turkey or France. We can note that the Toyota production system has emerged globally as a benchmark in the management and organization of production.
We will present the essential principles of the "Toyota production system" which is based on an idea: the total elimination of waste. These principles, which focus on organization and workflow management, numbering 14, are attached. Among the two pillars of TPS is the JIT model or the Just-in-time production model.
JIT refers to the model developed in Japan by Kiichiro Toyoda and Eiji (successive presidents of the group) followed by Taiichi Ohno (the chief engineer, who finished his career as Vice-Chairperson) and finally Shigeo Shingo (who worked for Toyota from 1995 to 1981 as a quality management consultant). The beginning of the implementation process dates back to 1950 and led to the system that we know today. The system remains subject to the passage of constant small improvements: due to the spirit of perpetual questioning of knowledge acquired, one of the bases of the corporate philosophy of Kaizen as we will explain in the next few paragraphs. This system was hugely successful in the late 70s.
JIT is a mode of production control. By definition, this kind of production must be carried out in response to a specific request from a client, not in advance or in anticipation of future demand. JIT therefore implies a strong reduction of inventory, and even allows the removal of stockpiles. Ultimately, the logic of the JIT shift from "push production" flow to "by customer demand" production.
The TPS ensures optimum quality of production and all stages of this process are important and designed for optimum efficiency itself. It actually goes through simplified processes. One recognizes here the values advocated by "lean" production, a word that is now part of the jargon of any business manager or executive producer; the term "Lean" means a production (literally) which leads to zero stock & zero defects.
This system is based on five basic principles:
- Observe the value chain of each product to eliminate waste (inventory, defects, transportation, additional operations, overproduction)
- Strive for perfection in a process of continuous improvement.
- The TPS applies a principle of continuous flow for a small production series.
[...] The strategy was therefore focused on the areas of research and development, and the production system (TPS). The expansion strategy of the group is generally quite slow. Caution is preferred in a rapidly expanding non-reflective and confident market. However, to go to the number one position, the group had to adopt a fairly aggressive stance in recent years in the U.S. market, and was thus able to absorb the market share of its direct competitors, General Motors and Chrysler, in a very short time. [...]
[...] market) to the point based on Kaizen that Toyota is likely to face the policy stimulus of a national manufacturer. The management system of the Toyota Group always appears as a model. However, with the reissue of the novel "Toyota factory of despair" in France in 2008 by Satoshi Kamata, which describes the almost inhuman working conditions of workers of the company in the 70s, the debate about working conditions in group was re-opened. According to some critics, the years have not changed practices as much as we might think. [...]
[...] standardize and become increasingly complicated to manage. of the request from the consumer proves hard to organize and is increasingly disparate. After conducting a competitive analysis of the market and after taking an internal and external analysis of Toyota, and concluding with an analysis of its environment, we now have tools to develop recommendations to establish Toyota as a consultant Final analysis: Our recommendations Our Findings and Recommendations: DIAGNOSTIC RESULTS The production system The Production System is The production system is good and effective reflected in the respect of but unsustainable in the long term for the concepts such as: Kaizen + + workers. [...]
[...] • Toyota factories pay the dealers for any repairs on vehicles that leave the house, and provide 3 years of warranty. The driving force behind Toyota's production system: The elements of performance that we have just described is not at the production line, and we will qualify our remarks by stating that zero defects is a management strategy initiated in pre-production, and that the factory has built this "philosophy" of business that permeates every member of staff. The whole group turned to the concept, and the management is the body which controls its implementation. [...]
[...] In return there are several conventions adopted for employees and suppliers, including lifetime employment for its staff, and the guarantee of a level of orders to suppliers and other subcontractors. This policy of profit will be maintained even when Toyota finds the opportunity to gain market share and increase sales volumes, producing better quality, and then selling at higher prices. Toyota combines two sources of profit margins related to quality, growth in volumes and lower costs. II. Analysis 1. Competitive Analysis A. [...]
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