Toyota As Number One

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The success of Toyota Motor Company is due to the unique reduction systems that focus on continuous improvement and just in time management. Toyota has created a decentralised structure that encourages employee participation and team working. Toyota incorporated concepts just as supply chain management and inventory management to create high quality automobiles and gain a competitive edge in the highly competitive global automobile market. Toyota’s success and its lean manufacturing philosophy have been widely studied. The Toyota manufacturing system is centred on achieving a high level of productivity. The company has a unique approach to problem solving and it continuously trains its employees.

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Running head: Sustaining Operations 1 Sustaining Operations 2Title Name School 5-2 Final Project Milestone Three: Sustaining OperationsTheories and Techniques Just in Time (JIT) Just in Time (JIT) is an inventory management system used to balance between the supplies of raw materials with production schedules. The process plays a vital role in improving efficiency by ensuring that raw materials are supplied only when needed. A key advantage of JIT is the reduction of waste. Since materials are provided when demanded, the risk of wastage is eliminated. Also, less space is needed to store materials when using JIT. Companies using JIT only order the requested production materials, and therefore less space is required for storage. Furthermore, businesses using JIT save money when purchasing stock. Such companies purchase small amounts of stock, which is essential for financial stability. One of the disadvantages of JIT is time consumption during planning. JIT requires efficient planning to align production schedules with the supply of production materials. Changes in production due to changing customer needs will force a company to alter its supply-chain plans frequently. Another issue is the risk of running out of production materials due to supplier issues. If Nissan adopts JIT, it may run out of stock whenever suppliers experience production and delivery problems. For instance, an earthquake in Japan can lead to supply chain problems due to its impact on distribution channels (Schmidt & Symchi-Levi, 2013). Toyota Production System (TPS) Toyota Production System (TPS) is a production management system used by Toyota Motor Corporation, and it is based on two concepts that are Jidoka and JIT (Dillon, 2019). Jidoka is a technique used by Toyota to detect and correct issues in the production equipment. The purpose of Jidoka is to prevent the production of defective vehicles or vehicle accessories. The use of TPS at Nissan can be advantageous in various ways. The company will be able to avoid the production of faulty automobiles through Jidoka. Through the system, the company will be able to reduce wastage of production materials. Also, the company will able to improve production quality. Adopting TPS in the company is expensive since Nissan will need to abandon its previous management system and adopt TPS. Lean The lean management system is a long-term management method based on continuous improvement. Companies use this method to enhance quality and efficiency in production continuously. The use of this method at Nissan will lead to improved productivity and quality. Also, the technique will help the company in reducing the wastage of production materials. However, it is necessary to note that the method can lead to production problems due to equipment error. The lean management method has a small allowance for errors. JIT, TPS, and Lean are meant to enhance production efficiency while minimizing wastage. The three methods have c ...

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