Toyota - Importance of Operations Management

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The wings were expanded in countries such as Australia and the United States, India and the United Kingdom, South Africa, Poland and the other is one of the world's leading automakers, and they maintain passenger safety as a top priority. (Toyota, second) even in the fiscal year 2011, there was no significant increase that was observed in the company's net revenues, but there was an increase in the operating income increased by 217.4% General Company and Toyota, the net income increased by 94.9%. The positive thing to note that auto sales abroad increased by 6.3%. (Annual Report 2011)

Identification of current organisational operations practices

Process Technology Strategy

The planning process is a format in which clubbed teams and functions are similar to each other and perform operations according to the pre-defined sequence. And product planning is a way where it is the order of operations involved in manufacturing a product in a sequence to make the best results.

Group technology maintenance of a group of machines is similar in action to work on products that have similar shapes and center sizes. Planning in a fixed position, the product in one place, machines and processes required for the production of this product to move this product is maintained.

Standardized systems are followed working at Toyota so that counsellors and senior management are able to identify gaps and growl immediately and take steps to improve arrangements. Represented below is a Toyota Motor Corporation factory in the Miata, which deals with casting planning, welded parts, and bench press and assembly.

All are located to reduce waste in the product design process. The explanation of the product design process in Toyota Motor Corp. companies below.

Capacity Management

Managers should recognize the broader effects capacity decisions have on the entire organization. Common strategies include leading capacity, where capacity is increased to meet expected demand, and following capacity, where companies wait for demand increases before expanding capabilities. A third approach is tracking capacity which adds incremental capacity over time to meet demand.

Finally, The two most useful functions of capacity planning are design capacity and effective capacity. Design capacity refers to the maximum designed service capacity or output rate and the effective capacity is the design capacity minus personal and other allowances. These two functions of capacity can be used to find the efficiency and utilization. These are calculated by the formulas below:

Efficiency = Actual Output/ Effective Capacity x 100%

Utilization = Actual Output/ Design Capacity x 100%

The ability to indicate the potential of the system to produce goods or provide services over a specified period of time. This includes planning capacity and long-term short-term considerations. And long-term considerations related to the overall level of capacity, and short-term considerations in relation to changes in capacity requirements as a consequence of seasonal fluctuations, random, irregular demand.

The excess capacity creates when the actual production is less than the one obtained or optimized for the company. Often this means that the market demand for the product is lower than the company likely to offer in the market.

Excessive energy inefficiency will lead manufacturers to incur additional costs or lose market share. And capacity can be divided into two categories: skill and ability to design effectively: refers to the maximum design capacity for the provision of services or the rate of production.

The effective capacity is the ability to calculate less personal and other discounts. Agents products and services capacity tremendous impact.

Toyota Motor struggled without any problems when the space redesigned and began to use the manufacturing system "just in time". They used the concept of manufacturing system U and make the most of space utilization and available capacity. They could not produce a large batch size, but the small batch manufacturing system is used. This would allow Toyota to overcome the space problem, but take advantage of other capacity available to the maximum. (John Lee, 2002)

Toyota lines were used to produce a joint operation where it was common to use machines for many of the product lines. But after that began to use and deal with multiple multi-process machine. Here worker and machine alike to deal with the operations of more than one set to reduce delivery times.

The concept is more important than the ability to plan is to find a way between the organization and the long-term supply capacity and the level of demand expected in the long term. Organizations are also planning real changes in capacity and changes in consumer demand and wants, and technology, and even the environment.

When evaluating alternatives in capacity planning, managers have to look at the quantitative and qualitative aspects of the company. These aspects include the economic and public opinion factors and the personal preferences of the managers.

This chapter describes the ability to plan as a key factor in system design. Decision of strategic and long-term capacity in nature. They describe how the ability to plan and organizational capacity at the game level expects that demand in the future. Many organizations interested in the ability to become planning due to changes in demand, and technology, the environment, etc. Organizations have the capabilities or limitations that can address your system.

Organisation and Systems development

Toyota used only system in time and wanted to eliminate the waste at all and use and produce only the amount that is needed. It was deeply rooted in the concept of JIT in the assembly line of Toyota systems that know exactly how many vehicles of different colors and types and accessories are assembled in a single day.

And just in time, the concept of the company helps minimize the loss of time and resources in waiting, and waste of resources in the fields of transportation and waste treatment, loss of stock and movement, loss of re-defects And the waste process that is produced as a result of overproduction. They use a one-piece continuous flow production system.

Lean Production

Poor or adjusted production data, often simply "poor",