Submitted by: Submitted by after10
Views: 1292
Words: 692
Pages: 3
Category: Business and Industry
Date Submitted: 08/01/2011 10:20 AM
Introduction
Toyota Motors Corp. is one of the world’s largest automobile manufacturing companies. Toyota was able to globalize efficiently and quickly as compared to its competitors with the use of outsourcing. Toyota’s Kanban System was adopted by the suppliers via training and this made them focus on quality. The strength of Toyota’s Production System, paired with improved quality and productivity, allowed them to gain market share in the automobile industry. The company strives to maintain its position of profitability and growth by constantly improving areas of their business worldwide.
Toyota’s production process has helped differentiate them from their competitors. They have applied several methods that are efficient and help reduce costs. In the long-run this is passed on to their customers. I’ve identified some of the methods used by Toyota that have strengthened and in some instances weakened their position within the automobile industry.
Strengths
Toyota’s use of their Kanban System has allowed them to use resources effectively and maximize production. This system has eliminated unnecessary storage and production costs.
The suppliers provide the parts only when they are needed via their integrated supply chain system. Toyota’s lean manufacturing system also eliminates storage and production costs, as well as, increasing the inventory turnover, which assists in speeding up production. This system has set Toyota apart from other companies in the industry.
Toyota has also created strong relationships with its suppliers to benefit the overall production process. The suppliers are an important part of the Kanban System. It’s essential to have good relationships with their supply chain in order to keep them informed of any changes within Toyota. Most companies have vertical integration but Toyota took the horizontal integration route and it has proved successful.
Weaknesses
The Just-In-Time inventory system used by Toyota has been...