...that Japanese firms, led by Toyota, have achieved the highest levels of manufacturing efficiency in the world automobile industry. Physical productivity, which reflects the “throughput” speed for completing products and the amount of labor required, has been significantly higher than in most U.S. plants (although differences vary by company and U.S. firms have made improvements in recent years).1 Japanese auto producers have also demonstrated rates of inventory turnover (sales divided by work-in-process and finished goods, or the cost of goods sold divided by work-in-process) several times those of U.S. firms.2 (Inventory turnover is a useful measure of efficiency, since it reflects how well firms manufacture to meet market needs rather than production schedules. It also reflects how effectively they reduce the number of parts and semifinished goods; these add to operating costs and often cover up inefficient practices or process errors.) High productivity and other aspects of process efficiency, such as rapid inventory turnover, help solve a problem as old as mass production itself: that the conventional factory tends to produce huge lots of standardized components, while consumer markets demand a variety of products at low prices. Looking for the reasons Japanese companies have managed this problem so well, many authors cite the contributions of Japanese workers and Japanese culture. However, the performance of Japanese firms in auto production depends not on the employment...
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...Lean production refers to a highly efficient manufacturing techniques mainly developed by Japanese companies in 1980s and beginning of 1990s (Rosen, 2011). The technique involved the combinations the flexibility and quality of the craftsmanship developed by Ford with low cost mass production (Rosen, 2011). In lean production system employees are organized in teams. In each team, an employee to do all the tasks required by the team and there is less specialization of the duties as was the case with the mass production (Rosen, 2011). The discussion below explores the application of lean production by Toyota Corporation, covering what they did, how they did it, and their success or failures with the project. The lean production as used by Toyota was to reduce redundancy, increase output and to save on the cost associated with the employee’s hiring cost (Rosen, 2011). Toyota employed lean production by bringing together into one working place all the employees of the same process of the vehicle assembling such as designers, sales and marketing people, this was to deliver the final product close to the point of sale, a process called just in time (Rosen, 2011). The process also put a lot of emphasis on keeping the level of inventory as low as possible. There should be little or almost no stocks to be kept in the ware houses, inputs are ordered when they are needed. This saves cost of holding stocks, cost of storage and insurance of the stored goods and minimizes the chances of...
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...BUS 330: Business Finance Toyota Motor Corporation (TM) F/S Ratio Analysis Case Prepared by Toyota Motors Corporation is a Japanese automotive manufacturer. Its headquarters are in Toyota, Aichi, Japan. Toyota was the largest automobile manufacturer in the 12th largest companies in the world by revenue. Furthermore, in 2012 Toyota was the largest manufacturer by production, of which, it was ahead of General Motors and Volkswagen Group. Toyota is a multinational corporation with a rough estimate of 330,000+ employees worldwide. A fun fact about Toyota is that, it is the world’s first automobile manufacturer to produce more than 10 million vehicles per year. In addition, Toyota was the largest listed company in Japan. This rank was taken by market capitalization and by revenue. It was worth more than twice as much as the second listed company. Toyota is not only in the automobile business, they have also ventured into other business areas like: Manufacture and sales of textile machinery, materials handling equipment, as well as into the logistics business. “Toyota Industries strives to enhance its corporate governance based on the belief that maintaining and improving management efficiency and the fairness and transparency of its corporate activities is of utmost importance” (Toyota). Toyota has a divisional organization system, with significant authorities delegated to each of the business divisions; furthermore, Toyota has established the BOC, which stands...
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...Toyota Toyota is a Japanese automotive manufacturer situated in Tokyo, Japan. In 1933 Toyota was started as a division of Toyota automatic Lomm Works. Founder of company is Kiichiro Toyoda. In 1937 company Toyota was officially introduced. Toyota began to expand in 1960s. In 1963 the first Toyota factory was build and opened outside Japan was in Melbourne, Australia. Nowadays there are 52 manufacturing companies operated by Toyota, not including Japan. Toyota’s vision is to be the most respected and admired company in the World. Mission is to produce and offer outstanding automotive products and services to customers and to enrich our community, partners and environment. And this is a list of company’s core values: customer first, respect for people, international focus, continuous improvement an innovation. In 2014 was considered the 14th largest company in the world by revenue. Reputation of Toyotas name was earned for high quality and integrity, as well as commitment to responsible management and environmental practices. Company’s goal is to keep their corporate reputation at all times. Ethical behaviour is important, especially honest, equity, social responsibility and integrity. Toyota’s Target Market is easily almost everyone. Younger people are buying Toyota Corolla. People that need trucks look for Toyota Tundra. Families favourites are Toyota SUV’s and older people favour minivans as Toyota Avalon. Results for the October / December fiscal third quarter of year 2013 show...
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...suppliers 9 C. Risk of governmental regulations 9 D. Risk of digital and information technologies 10 E. Risk of innovation competition 10 V. Benefits of ERM 10 VI. RISK ORGANIZATION 11 VII. Organizational Culture 13 VIII. Recommendations 14 Company Mission and Strategy The main source used for this work was the Toyota’s Annual Report. http://www.toyota-global.com/investors/ir_library/annual/pdf/2013/ Toyota, or officially Toyota Motor Corporation, is a car manufacturer based in Toyota City in Japan. The company operates in about 170 countries over the world. The company employs about 320.000 people and has production plants in every continent. This major company is the leader in the automotive industry with a turnover of more than $265 billion in 2012 and with about $4.7 billion of benefits. The major markets of Toyota are Japan, North America, Europe and Asia. The company sells its cars under its name Toyota, but it also owns subsidiaries like Lexus, Scion, Hino Trucks and Daihatsu. Toyota is also the creator of the Toyota Production System (TPS), which...
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...Objectives of the study 3 1.3 The Research Methodology 3 2.0 LITERATURE REVIEW 5 2.1 The Definition of JIT 5 2.2 The Purposes of Just In Time 10 2.3 The Importance Elements In JIT Implementation 12 2.4 Difficulties and Issues Associated with Implementation of JIT Components. 23 2.5 Main Issues and Difficulties of Managerial Nature in JIT 30 2.6 The Benefits of JIT 34 2.7 The Limitation of JIT 36 2.8 The Relationship Model and Supporting Activities of JIT, TQM AND TPM 41 2.9 The Relationship between JIT Production and Manufacturing Strategy and their Impact on JIT Performance 43 3.0 FINDINGS 50 4.0 CONCLUSION AND RECOMMENDATION 59 REFERENCES 61 APPENDIXES 64 INTRODUCTION The Importance of Just In Time (JIT) Nowadays, companies used Just In Time (JIT) systems control work flow by bringing in materials and sending out goods on demand which is ideally, just enough to provide what consumers want. JIT also is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. In just in time manufacturing system inventories are reduced to the minimum and in some cases they are zero. Companies typically hold inventory in three locations which are raw materials, work-in-process inventory of partially worked materials or sub-assemblies for workstations to complete, besides finished goods to be shipped out to customers. Mostly, fast food restaurants implement JIT system for...
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...oPRODUCTION SYSTEM A first possible distinction in production systems (technological classification) is between process production and part production. * Process production means that the product undergoes physical -chemical transformations and lacks assembly operations, therefore raw materials cant easily be obtained from the final product, examples include: paper, cement and nylon. * Part production (ex: cars and ovens) comprises both manufacturing systems and assembly systems. In the first category we find job shops, manufacturing cells, flexible manufacturing systems and transfer lines, in the assembly category we have fixed position systems, assembly lines and assembly shops (both manual and/or automated operations) Another possible classification[12] is one based on Lead Time (manufacturing lead time vs delivery lead time): Engineer to Order, Purchase to Order, Make to Order, Assemble to Order and Make to Stock. According to this classification different kinds of systems will have different customer order decoupling points (CODP), meaning that Work in Progress cycle stock levels are practically nonexistent regarding operations located after the CODP (except for WIP due to queues). The concept of production systems can be expanded to the service sector world keeping in mind that services have some fundamental differences in respect to material goods: intangibility, client always present during transformation processes, no stocks for "finished goods". Services can...
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...Ford Motor Company (Case Analysis) Group #6- TGAA TTH 1:00 Member 1- Taylor O’Neill Member 2- Knyra Ratcliff Member 3- Alex Perkins Member 4- Xu Han Member 5- Kevin Carter Member 6- Alex Dundon/ Nick Tran Presentation Date: 11/17/15 Introduction Our group has chosen Ford Motor Company as our case analysis subject. Ford is an American multinational automaker and was founded by Henry Ford in 1903. Ford Motor Company is the second largest automaker in the United States and is also the fifth largest automaker in the world. Throughout the paper we will be sharing background information of the company such as the vision statement, mission statement, company history, the industry, and our company’s strategy. We will also be sharing the elements of Ford’s internal and external environment (includes historical and competitor financial information), problem statements, possible alternative solutions to those problems, and our recommendations as to which alternative solutions would be best used in response to the problems at hand. Towards the end of our case analysis on Ford Motor Company there is a visual present for both the SWOT analysis and the grand strategy matrix. We have provided appropriate and significant content in completion of this case analysis. Background Vision Statement “To become the world's leading Consumer Company for automotive products and services. (Homepage, 2015)” Mission Statement “One Team. People working together as a lean, global enterprise...
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...Discuss the Role and Impacts of Transnational Corporations in the Global Economy (40 marks) Transnational Corporations (TNCs) are companies which are able to co-ordinate and control its production, in more than one country during economic globalisation, examples of which include Nike, McDonalds and IKEA. These companies use differences between a country’s cost of production, natural resources, labour and state incentives to their advantage. This allows them to spread their resources and production between locations globally to minimise cost to the company. In recent decades the increasing wealth of TNCs has led to more dominated roles in the global affairs this has many impacts on the economy, global population and environment both positively and negatively. Transnational corporations have a very large role to play in the global economy. With the economies of developing countries, such as China and Brazil, generally growing due to the exchange of information and goods (globalisation) companies are keener to invest in them to increase their turnovers and overall development. TNCs have globally increased new job opportunities and new tax revenues even for the poorest of countries, by doing so they have contributed in reducing the levels of world poverty and have improved infrastructure for developing countries. TNCs are also incredibly wealthy. Ford and General Motors are two companies which exemplify the wealth of TNCs. Their combined annual income is equal to the GDP of all...
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...Running Head: TATA MOTORS Comparison of Tata Motors with the value propositions of the competitor Table of content Introduction……………………………………………………………….. 3 Evaluation…………………………………………………………………. 3 Comparison……………………………………………………………….. 5 Tata’s Value proposition………………………………………………….. 9 Recommendations………………………………………………………… 12 References…………………………………………………………………. 14 Introduction I have selected Tata Motors. Tata Motors Limited can easily be labelled as India’s leading automobile company with annual revenues reaching Rs. 92,519 crores (USD 20 billion) in year 2009-10. The company has a competitive edge among commercial vehicles specializing in passenger cars along with some other vehicle segments. Tata Motors is a well renowned name in truck manufacturing along bus manufacturing, it is considered to be the 2nd largest bus manufacturer around the globe and worlds 4th in terms of truck manufacturing (tatacarsworldwide, 1, n.d). Evaluation This section of the report would discuss the nature of the industry and how well the company is positioned in the industry. The automotive companies are emerging on the world map very quickly, weather it’s related to parts manufacturing, designing components or any other aspect people are outsourcing their business operations. While on the other hand automotive Giants are consistently on the verge of increasing their businesses by entering into newer potential markets around the globe by setting up its...
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...Planning (MRP) Material requirements planning (MRP) is a computer-based inventory management system designed to assist production managers in scheduling and placing orders for dependent demand items. Dependent demand items are components of finished goods—such as raw materials, component parts, and subassemblies—for which the amount of inventory needed depends on the level of production of the final product. For example, in a plant that manufactured bicycles, dependent demand inventory items might include aluminum, tires, seats, and derailleurs. The first MRP systems of inventory management evolved in the 1940s and 1950s. They used mainframe computers to explode information from a bill of materials for a certain finished product into a production and purchasing plan for components. Before long, MRP was expanded to include information feedback loops so that production personnel could change and update the inputs into the system as needed. The next generation of MRP, known as manufacturing resources planning or MRP II, also incorporated marketing, finance, accounting, engineering, and human resources aspects into the planning process. A related concept that expands on MRP is enterprise resources planning (ERP), which uses computer technology to link the various functional areas across an entire business enterprise. MRP works backward from a production plan for finished goods to develop requirements for components and raw materials. "MRP begins with a schedule for finished...
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...Sciences Project: Toyota’s Business Environment and its Recall Policy Toyota Motor Corporation is Japan’s number one carmaker. Toyota has international presence in over 170 countries worldwide. It manufactures cars, pickups, minivans, and SUVs include models such as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the luxury Lexus line, and full-sized pickup trucks. It has huge financial strength, a sales turnover of 131,511 million for 1997 and sales growth of 29.3%. It is the second largest car manufacturer in the world, after General Motors. Some of the key reasons for its success include: Successful brand - Toyota has developed a trusted brand based on quality, good performance and for being environmentally friendly. Innovation - Toyota is at the forefront of car manufacturing innovation. It was the first car manufacturer to embrace lean manufacturing (known as Toyota Production System) which is a faster, more efficient process which leads to less waste compared to the traditional batch and queue method of manufacturing. It also applied JIT (Just in Time manufacturing) and smart automation. Product Development - Key to the success in the car market is new models which stimulate demand and loyalty to the Toyota brand. Toyota has reputation for producing cars which are greener, more fuel efficient, and of good performance. Toyota has sought to meet government requirements (for reducing the impact on the environment), economic changes (as prices of fuel - oil...
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... Mat Saman FKM Dr Zameri 1 TRANSFORMATION PERIOD EMPHASIS STRATEGY 60’S How to do more Mass Production p 70’s How to do it cheaper Automation 80’s How to do it better QC, TQM, QFD q 90’s How to do it quicker IE 2000’s How to do it with less ???? Dr Zameri 2 Options for Increasing Contribution Marketing Option Current Sales Cost of Goods Gross Margin Finance Costs Subtotal Taxes at 25% Contribution $100,000 $100 000 – 80,000 20,000 – 6 000 6,000 14,000 – 3,500 $ 10,500 Finance/ Accounting Option Increase I Reduce R d Sales Finance Revenue 50% Costs 50% $150,000 $150 000 – 120,000 30,000 – 6 000 6,000 24,000 – 6,000 $ 18,000 $100,000 $100 000 – 80,000 20,000 – 3 000 3,000 17,000 – 4,250 $ 12,750 Dr Zameri Lean Option Reduce R d Production Costs 20% $100,000 $100 000 – 64,000 36,000 – 6 000 6,000 30,000 – 7,500 $ 22,500 3 Changing of Mind Set Selling Price = Cost + Profit Profit = Selling Price – Cost g The focus should be on reducing cost g The best way to reduce cost is to remove the waste Dr Zameri 4 Value Price Price Price Profit Price Profit Cost Cost Traditional thinking T diti l thi ki Cost + Profit = Price Lean thi ki L thinking Price - Cost = Profit Dr Zameri 5 Lean Operations Developed by the Toyota Motor Company p y y p y To compete with highly industrialized cou t es, US a U countries, USA and UK ...
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...1|Page Company History Toyota is world's second-biggest auto maker after General Motors Corporation. Toyota primarily conducts business in the automotive industry but in the finance and other industries as well. The Toyota automobile company as it began, specialized in making cars, but now also forms a leading pioneer in bus, trucks, robot manufacturer, truck, auto and financial service providers. In 1933, Kiichiro Toyoda established an automobile division within an already successful Japanese company, Toyoda Automatic Loom Works, Ltd., a manufacturer of textile looms. In 1935, Toyota had established its first dealership and produced their first vehicle. In 1937, the division became an independent company within the group and became known as Toyota Motor Corporation (TMC). In 1957, they had imported their first passenger car from Japan into the United States. In1960’s, Toyota was clearly in the path to becoming a multinational corporation by opening a vehicle plant in Brazil and their first Asian vehicle plant in Thailand. In 1989, TOYOTA branched out by established a luxury line of vehicles with debut of LEXUS LS 400 and the ES250. In 1999, Total vehicle production reached 100 million in Japan. In 2003, they became the world’s number 2 in terms of annual sales, as they overtook Ford Motor Company and coming behind General Motor. In 2008-2010 sales of vehicles is the first in the world for 3 consecutive years. 2|Page Business Overview Toyota sells its vehicles in more...
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...service level. Why collaboration? There are many traditional companies in the industries that refused to collaborate with their suppliers being fear that information/ technology sharing might put their companies in risk of confidential information within the organization to being leak into competitor vicinity. Therefore, we must be able to convince those companies that collaborating with their suppliers have had many benefit in it. Not only proved to be improving customer satisfaction level but also able to provide quality control of the products. Delivery JIT The term "Just-in-Time" is a production strategy that originated from Toyota Lean Manufacturing. JIT mean reducing the lead time of a manufacturing process and facilitate faster turnover lead time for buyer by reducing inventory cost. In this process, supplier are able to eliminate wastage and identify problem during production process. Long term relationship between buyer and supplier must be established in order for JIT to be a successful program. Buyer will benefit from such process due to the lead time is short and when lead time is short, there will be more happy customer. JIT allow buyers to buy in small quantity through a fast lead time, minimize paper work; human errors and faster order processing time. With the use of Electric Data Interchange, buyer not only able to know the "real time" of their products status but also able to notify both user of their replenishment point hence not allowing a situation of...
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