The Effective Operations Management of Toyota - Research Paper Example

Effective Operations Management Effective Operations Management Production processes in organizations require time and efficiency. This ensures that all aspects of output are catered to, thus; ensuring the optimal production of goods and services. Effective management of operations means supervising, designing, and even controlling all factors of production to suit an organization’s immediate needs. In most companies, the issue of competitive advantage largely revolves around four areas, namely; cost, time, reliability, and flexibility. These four aspects pose a challenge to most companies as they strive to provide the right formula to effectively deal with their consumers, and profit through the sale of their products and services (Lowson, 2003). Toyota is an example of a company that uses operations management in order to have an edge over its competitors. This paper will examine how Toyota has, over the years, implemented exceptional management skills to increase their competitive advantage, and how this has helped them expand their global reach. Toyota is a brand recognized worldwide by most individuals. This advantage is brought on by the fact that their products are cheaper as compared to others, and at the same time, the company provides products that everyone is comfortable with in terms of desires and needs. At the outset, Toyota and its success can be attributed to the fact that they continuously improve on their products and services. This is while also catering to the aspect of time. These two highly crucial aspects of operations can only be possible if there is involvement on the part of employees and consumers. There is a high level of employee participation in the company, which allows all parties to get involved in the creation of new and improved products and services for their consumers (Williams, 2011). Through their production and just-in-time production systems, Toyota places emphasis on high quality products at all possible low costs. For effective management operations, Toyota incorporates consumer services, which allow Toyota to start projects that their consumers want or desire. These services aid Toyota in solving some of its problems. Feedback from their consumers creates an avenue for Toyota to evaluate any and all issues that come up with regards to their automobiles, hence; addressing any future problems based on past experience. In the highly competitive automobile industry, it is vital for companies to improve customer relations, which endears most of their consumers to their brands. Toyota’s approach to effective operations management has led to the empowerment and motivation of employees and customers. Loyalty is the main thing that Toyota relies on, and among countless developing nations, it is clear Toyota has loyal employees and customers (Williams, 2011). The establishment of Toyota centers in most regions is proof of this loyal customer base. Furthermore, Toyota has inclined manufacturing techniques that allow the company to capitalize on low cost production, and at the same time, provide high quality products. These techniques revolve around Toyota’s supply chain and inventory management, which allow it to increase profitability and efficiency. The techniques implemented are crucial for Toyota since they concentrate on certain areas that promote the company’s growth, for example; customer relations, supply systems, and even product design. Toyota’s supply systems constitute a large percentage of its effective competitive advantage. The company’s management has become rather efficient when it comes to the supply and distribution of its products as is seen with the integration of suppliers and buyers when it comes to decision-making (Mahadevan, 2010). This allows for the passing of some of the most crucial decisions in the company, giving them time to address other issues. Toyota has production systems that are characterized by their long-term objectives and planning, which allow them reach further into the automobile industry for the longest time. Moreover, the production systems allow the company to minimize or eliminate the waste that other companies have to deal with regularly. This is especially in high-value streams where most companies lose consumers, capital, or even both. This production system has defenses that are controlled at different areas, which in turn, allow Toyota to become a major player in the automobile industry worldwide by giving it an edge. To aid in the issue of time, there is the presence of the just-in-time systems, which make the company more efficient (Gitman & McDaniel, 2007). Since time and quality production are what Toyota is all about, these production systems play a herculean role in the growth and development of the company in terms of profit maximization and low-cost production practices. The techniques in their operations allow them to come up with new ideas that are always welcome by their consumers. The company’s manufacturing system is designed in a way that is characterized by a continuous production flow. This assists Toyota to be flexible enough to rise to global demand. That being the case, the JIT systems allow Toyota to acquire only the required materials necessary for production at that particular time. These techniques aid in the reduction of excess inventories, thus; leading to reduction in costs. The total quality management processes in Toyota allow the company to capitalize on the resources present, hence; lowering the costs and improving quality in the automobile’s products. The use of less material and fewer employees means that the costs are lowered significantly, but the efficiency of the company goes higher. Effective operations management requires quality at all times. Employees are trained on what exactly to do in order to attain the intended targets set by the company. This is what Toyota demands from its workforce, creating a highly competitive automobile environment (Fischer, 2012). In conclusion, the effective operations management of Toyota ensures that resources are allocated efficiently, on time, and adequately to ensure the company maintains a competitive edge over its competitors. Each aspect of Toyota’s output is operational. Toyota’s continuous evolution means that customer demands are met at every turn. Effective operations management has allowed Toyota to reduce on all factors of production, thus; ensuring maximum profits after the sale of their automobiles globally. This is what makes Toyota an automobile giant that has its sight on every available market in the world, making it a rather tough player to beat in the automobile industry (Kachru, 2009). References Fischer, L. (2012). Delivering competitive advantage: Real-world business process management. Chicago: Future Strategies Inc. Gitman, L., & McDaniel, C. (2007). The future of business: The essentials. Oxford: Oxford University Press. Kachru, U. (2009). Production & operations management. New York: Hart Publishing. Lowson, R. H. (2003). Strategic operations management: The new competitive advantage. London: Routledge Publishing. Mahadevan, B. (2010). Operations management: Theory and practice. London: Macmillan Publishers. Williams, C. (2011). Effective management. New York: American Printing Press. Read More