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Organisational Performance - Assignment Example

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This paper “Organizational Performance” will briefly explore the strategies that Toyota employed to achieve this operational excellence. Many observers have cited this as the “The Toyota Way” or the “Toyota Production System” which would be the focal point of the paper…
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Organisational Performance
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Download file to see previous pages Competitors, business managers, academicians, researchers and other observers constantly kept on asking the same question that what is the secret being Toyota’s impeccable success? The fact is that consistency and quality in Toyota’s vehicles, which also make it as the most trusted and reliable vehicle all over the world, is a direct result of the operational excellence that the company has achieved in the past few decades. In fact, Toyota has intelligently converted that operational excellence into their strategic weapon to outclass the competitors (Liker and Franz, 2011, p. 510).  Partly, this operational excellence is a result of frameworks, tools and approaches that it introduced in the manufacturing world, such as Kaizen, just-in-time manufacturing, once piece flow, Jidoka, Heijunka and others. These techniques also ended up providing Toyota a unique lean manufacturing system, which is discussed latter in the paper. Important here to understand is that mere application of these frameworks and techniques is not what makes Toyota great but it is its continued success at employing these principles is what makes the difference. Toyota has indeed made them a part of its business philosophy, which also places great deal of importance on understanding their workers and their motivational dynamics (Simons, 2011, pp. 390-392).  This paper will briefly explore the strategies that Toyota employed to achieve this operational excellence. Many observers have cited this as the “The Toyota Way”.  ...
s that mere application of these frameworks and techniques is not what makes Toyota great but it is its continued success at employing these principles is what makes the difference. Toyota has indeed made them a part of its business philosophy, which also places great deal of importance on understanding their workers and their motivational dynamics (Simons, 2011, pp. 390-392). This paper will briefly explore the strategies that Toyota employed to achieve this operational excellence. Many observers have cited this as the “The Toyota Way” or the “Toyota Production System” which would be the focal point of the paper. Discussion Much of the success that Ford and General Motors enjoyed in the US market during the early 1920s until the late 1950s was primarily because of their ability to use mass production system and leverage the economies of scale by producing as much as possible. On the other hand, Toyota emerged in the small Japanese market after the Second World War where it could not employ the small techniques (Magee, 2008, p. 545; Shingo, et al., 1989, pp. 20-21). Instead, in order to satisfy the customer and their demands, the organisation had to be more flexible by creating the different automotives on the same production lines. This is where Toyota learned and made it its core flexibility to keep lead times shorter and be as flexible as possible. Furthermore, by watching the American counterparts and their mass production systems closely, Toyota realized that the system has the inherent disadvantage of providing too much waste, extra inventory and early wear and tear of the machines, all of which lead to greater costs and lesser efficiency (Vidler, 2001, pp. 226-228; May and Roberts, 2011, 52-53). When Toyota started penetrating into the American market, ...Download file to see next pagesRead More
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