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operations management

operations management - Operations Management(Case study of...

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Operations Management (Case study of an Automobile company) Automobile companies all over the world have very specific operations and supply chain network. Their supply chain consists of managing vendors and suppliers for the raw material and semi processed inventory. In the competitive world, to get the edge over the competitors, companies try to innovate at supplier different level and get the competitive edge. One way to get the competitive edge is to innovate at the supplier level. In doing this innovation, automobiles companies have to help their suppliers and vendors to innovate at their end. Here we are discussing the case of Toyota Automobile (Japanese Automobile manufacture) and will see how they manage their supply chain and other operational activities to get the edge over the competitors. Toyota is global auto company with many markets and products. Toyota Motor Corporation’s were laid by Kiichiro in 1937. It holds a significant share in the automobile market approximately more than 50%. Toyota has had one simple yet important business philosophy - “putting customer first”. They firmly believe in meeting their customers’ expectations by providing them with quality products and services through the efforts of its team members. TOYOTA’S PRODUCTION SYSTEM Toyota has always believed that best way to serve society is to ensure the safety and development of employees. Toyota maintains equilibrium between the human resources and advanced robot technology to produce high quality and reasonably cost products. Source: www2.toyota.co.jp Just in Time means making “what is needed, when it is needed, and in the amount needed.” Supply according to this production plan can eradicate waste, unreasonable requirements,
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inconsistencies resultant improved production capacity. In the TPS, a unique production control method called the "kanban system" plays an important role. In Kanban system, material will be issued from store to assembly line and the kanban card attached, will be moved to Kanban post. Respective buyers/cell member will collect the Kanban cards and give trigger once a day usually between 1PM to 2PM to supplier by E – mail. Kanban cards are returned to Kanban Post.
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