Operations Management is very important for taking care of large organizations and running them successfully. Operation management is principally related to production of goods and services within an organisation. The primary reason for the operations management is to perform the business functions successfully, easily and effectively by using the minimum resources and achieving customer prospects. Thus we can say that businesses management is the procedure of converting bare minimum input like recycleables, labour to produce maximum outcome like products, goods and services. Functions Management is very essential factor in order to increase company's income. Operations management is not only responsible for producing goods but also take control of distribution of services. Procedure management is just not related to organizations it can be seen in our daily activities of life also. The following quotation talks about how procedures management is found in our day to day life
'Operations management is approximately the way organizations produce goods and services. All you wear, eat, take a seat on, use, read or knock about on the sports field involves you thanks to the operations managers who arranged its development. Every book you borrow from the catalogue, every treatment you receive at a healthcare facility, every service you expect in the shops and every lecture you attend at university - all have been produced. ' (Slack et al, 1995)
Some examples of procedure management can be like
A carpenter who uses a piece of real wood, cuts and planes it, and then polishes it to make a piece of furniture
When u want to book a holiday a visitor operator finds and provide information for you and helps giving tips on places to go to and stay.
ROLE AND NEED FOR OPERATIONS MANGEMENT WITHIN AN ORGANIZATION
Operations management takes on a very crucial role in organisations as they produce professional managers which are capable of achieving organisation's tactical goals in a precise period of time. Functions management is the center of any company as it control buttons the whole procedure system of the business. Operations management grips issues like design, procedure, and maintenance and improvement of the systems used to create company's vital products and services. Procedures management has clear management duties like in marketing and fund. Businesses management is very necessary in an organisation to control the activities. By using Operations management an company can make good use of their resources like individual labour and inputs are being used as required. Businesses management helps an organization to achieve its definitive goal of making profit and maximising its shareholders through its activities. Cost of development is reduced to ensure that tangible and intangible possessions aren't over stretched or wasted in an organisation. Organisations make good use of its product and services management through Operations management. Product management includes an array of activities starting from the point whenever a new idea for the product is developed to eventually provide customer care to those people who have purchased the merchandise. Every organisation conducts product management no matter it is performed intentionally or unintentionally.
Another important aspect of Procedures management is quality management. Every organisation is very much indeed concerned about the products which are manufactured or developed for the clients in the market. Quality management is vital to have effective functions management, mainly if it is for constant improvement in order to go with the consumers tastes and preferences. Lately benchmarking and quality management, outsourcing and reengineering has used functions management to an advanced level to create high quality. Adoption of reengineering and benchmarking by the organisation helps them to be always a head in their category of products in the market. Benchmarking is recognized as the best interior auditing process which the company uses to recognize its weaknesses and then changing them into power to be able to increase its customers in the market.
One cannot think of Operations management in an company without Management control and Coordinating function. Management control and coordination includes different types of activities to make certain that the company's goals are constantly being fulfilled in a powerful and reliable way. Organizations mainly use organizational coordination and control in order to adopt a systematic method of figure out if it is actually doing what it wanted to be doing or not. A number of the major methods to the business's organizational control and coordination include product analysis, product syndication, advertising and advertising, sales and service and product development. Organizations use adverts as a most important instrument to reach the client and reorient the knowing of customers about its products. In such a fast expanding and competitive software industry, the company make sure its products and services are significantly in the imagination of their customers and clients. This occurs because of this of ongoing advertising and advertising by the organization. Facilities management is also a required function and is of great importance in operations management. Effective functions management in the business's activities highly will depend on significant amounts of effective management of facilities, such as buildings, personal computers, signage, lighting and crops and machinery. In a situation of high demand which could call for higher or mass creation, facilities must be monitored in producing large levels of products which must be standardized to meet up with the market demand at specific period. Well managed facilities like vegetation and equipment in the business help in creation quickness, lower per device cost, simple manufacture and control and the efficiency in the business's production process
Task 19. 1. b
The strategic targets of Toyota are
Quality and Innovation
Image and reputation
SWOT ANALYSIS OF TOYOTA
A SWOT evaluation is a straightforward but widely used tool that helps in understanding the talents, weakness, opportunities and threats involved with a project or business activity. It starts off by defining the aim of the task or business activity and identifies the inner and external factors that are important in order to attain the goal. Internal factors can be divided into advantages and weakness and opportunities and dangers can be determined as external.
Toyota is the world's largest automobile machine by sales.
Toyota also owns and manages Lexus and Scion brands and has a majority shareholding stake in Daihatsu and Hino motors.
Toyota also provides financial services through its Toyota Financial Services and also builds robots.
Toyota Motor Organization (including Toyota Financial Services) and Toyota Industries form the majority of the Toyota Group, one of the major conglomerates on the planet.
Should increase their shareholdings in Fuji Heavy market sectors, Isuzu Motors, Yamaha motors, and Mitsubishi Aircraft Corporation
On May 8, 2009, Toyota reported a record annual net lack of US$4. 2 billion, rendering it the latest automobile maker to be significantly damaged by the 2007-2010 financial crisis
Manufacturers need to make certain that it's their models that consumers want versus competitor's.
Sales has been affected by the financial crisis
Failure of Toyota production system predicated on the existing recalls.
Company needs to cautiously keep producing cars in order to maintain its operational efficiency, especially in the case of the Prius, that your case study claims that it requires reprogramming of its Abs system.
In January 2010, Toyota announced it was recalling up to 1 1. 8 million automobiles across Europe, including about 220, 000 in the UK, following issues with faulty accelerator pedals
Many Toyota models were included, within the 2007-2010 model years. Toyota eventually recalled the Prius model for reprogramming of its Abdominal muscles system.
The U. S. Sales Chief, James Lentz, was questioned by the United States Congress committees on Oversight and Investigations on Feb 23, 2010, therefore of recent recalls
On 6 Apr 2010, The US government sought an archive charges of US$16. 375 million from Toyota because of its delayed response in notifying the National Highway Traffic Safe practices Administration regarding the faulty accelerator pedals
The company said the recalls may cost the business up to US$2 billion (GB1. 25 billion) in lost outcome and sales
TASK 19. 1. C
A company main aim should be to gratify its customers' requirements for fast and reliable services at affordable price, as well as aiding its own suppliers to improve services they provide. You can find five basic performance aims and they sign up for all types of procedure:
Cost (Slack, N. et al, 2001).
These businesses performance objectives are analysed within compliance to Toyota.
Toyota's record has prevailed all around the world as it has been chosen by different market research and examination for the car of the year for many years. Toyota's success continued growing due to high quality which in that way contributes to the largest machine of the cars predicated on the sales across the world. Toyota also have produced cars which are of better qualities which are suspended and do not release unlikeable smoke cigars. For instance more than 40 emission- managing systems and accessories which has enhanced traveler car protections. (Ahmed, A. , 2003, ).
Another main job is speed which signifies to lessen the time between the instruction and ease of access of the merchandise and services which in that way causes the velocity benefits for the customers. Toyota performance is targeted on tasks by using small and simple machines which reduce issues which are adaptable and vigorous. By rescheduling the strategies and the stream to improve ease and the swiftness of making. In the later 1980s, it is shown in the statistics that the productivity per employee set alongside the US and Western plants is as much as several times higher than them.
The third display aim is dependability which means completing the tasks in time for the clients so that they receive their products and services on the time frame and time as been promised. The 'Just -in-Time' (JIT) creation system allows the engineers to provide products of finest quality through their 'Kanban' control system. Toyota needs to improve its efficiency and quality as it's important for managers, technicians and employees and b repeating this customers will feel more reliable about the merchandise of the Toyota.
A clear result of giving an answer to a strong environment is the fact company change their products and services and changes the way they do business. This performance purpose is known as 'overall flexibility'.
(Peters, T. , 1998) argues that people must learn to love change and develop versatile and responsive organizations to cope with the energetic business environment.
In the Toyota seed it means the ability to adopt its making resources so that it can launch new models. The coursework analyses that, Toyota was able to achieve advanced of versatility, producing relatively small batches of the latest models of with little or no loss of productivity or quality. Toyota during the years has provided a range of options that customers are able to choose.
One major functions objective, especially where companies contend with prices is 'cost'. Low price is a common attractive goal to customers, that can be achieved by producing goods at lower costs. In order to 'do things cheaply', Toyota seek to affect the price tag on goods and services, so for the future Toyota has designed to shift their creation of multipurpose vehicles and pick-up pickup trucks on different countries about the world (e. g. Argentina, South Africa). Also, internally, cost performance is helped by good performance in the other performance aims that Toyota has managed to produce high quality vehicles at a reasonable prices.
By using and increasing quality, speed, dependability, versatility and cost operations performance, TMC has seen a global growth and raised percentage of client satisfaction. Due to the success of the operation performance objectives Japanese style (Toyotism) of developing and product advancements has become analyzed and emulated surrounding the world. TMC is world head in supply chain management, and keep its production at the high quality, maximum quickness, on time delivery, flexibility and at the cheapest cost TMC works together with its suppliers to be sure that they are also the best suppliers in the industry. Shifting its operation in various countries searching for cheap inputs (row materials and labour) helps it be better to produce products at a lower cost and good quality. Functioning continentally also gives dependability advantage to its customers by rendering it easy to deliver its production in the market place. Using these operation performance targets TMC has managed to keep its customers happy and compete effectively with others companies in global market.
Task 19. 2. a
Toyota uses 'low fat' production system to create constant goods and services. Tools like just with time, cellular developing, total profitable maintenance, solo minute exchange of dies. Lean manufacturing system arrived to Japan after World War II when these were go out of materials, financial and human resources. This technique is also known as Toyota Production System which is now recognized all over the world. The essential ideas behind lean manufacturing system are misuse elimination, cost lowering, and employee empowerment.
Employee empowerment of Toyota can be seen through the fact that the company employs roughly 320, 000 people worldwide. The trim manufacturing system aspires to work atlanta divorce attorneys aspect of the worthiness stream by eliminating waste to be able to reduce cost, generate capital and generate more sales and stay in competitive in a growing global market which can be seen through the actual fact that Toyota is the largest automobile maker by sales.
Task 19. 2. b
As identified by the Praxiom Research Group, an audit is "an data gathering process". The main purpose of the Quality Audit is to determine maximum evidence to be able to find out whether or not the company is in charge of its techniques and documents. This sort of evidence is accumulated through observations, interviews, and demands for paperwork. Full training is provided to auditors so they can exactly find out if corporate quality management systems are in compliance with preset expectations. Toyota's recall problems reveal that there has been an over-all quality defect because of poor decision making and offer chain management. In my own view Toyota should have third part audit which is performed by an exterior because I believe as company has some breakdown in their production system so it is way better if a professional company do their audit so next time there must be no flaws in the models which are going to be developed and it could be guaranteed that the recycleables and products that are produced are safe.
Task 19. 2. c
Quality culture generally means inclusion of quality in the overall system of a business which creates a positive inside environment and provides guarantee customer satisfaction. An excellent decision making at all levels of management is very necessary for preserving such quality culture in the organization which is often attained by personal realization at the top level or by trainings and workshops or pursuing of benchmark organizations.
Toyota's quality culture is to create best products in the 1st attempt. Creativity also forms an essential part of quality culture in Toyota and meet obstacles with courage and creativity for the continuous improvement. Client satisfaction is also a very important facet of quality culture in Toyota. Another important aspect of the product quality culture is keeping track of consumer grievances and analysing them for quick fix. In my own view Toyota should not bargain with quality of the product and present development more importance over quality. Inside a set you back make more products they aren't presenting 100% in the creation with their products. To be able to achieve their development targets and to end up being the world's largest motor vehicle maker Toyota lost look of the main element values that offered company the reputation to begin with.
Task 19. 3. a
Toyota Motors Firm all throughout its record - from Kaizen to Toyota Creation System to further Kaizen - has strived not and then maintain its market position, but to improve it as well. The engineers should ensure that they make best products in the 1st attempt. The company should not make haste in manufacturing the products just in order to raise the growth.
Task 19. 3. b
In Toyota Motors Corporation's 2008 Annual report, the business said that "As the auto industry faces a turning point in its record, Toyota aims to accomplish sustainable growth because they build a more flexible and stronger commercial structure to meet the challenges forward" (p. 1). The true question remains. That is, what specific strategies shall Toyota adopts to be able to build a more adaptable and stronger commercial composition when time and business environment dictate that it is 'Kaizen', Further 'Kaizen', and Toyota Creation System are no more enough for the current and future demands of industry?
Blue Ocean Strategy
In the preface of their book, Blue Sea Strategy, W. Chan Kim and Renee Mauborgne, succinctly published that "there are no entirely excellent companies, equally as there are no entirely excellent industries" (2005, p. x). Hence, no subject how successful Toyota Motors Organization has ended its 70 years existence will not guarantee the same success in the next 70 years. The writers, therefore, proposed a new management theory - blue ocean strategy. The Blue Ocean Strategy is, regarding to Kim and Mauborgne,
"Blue sea strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space which makes the competition irrelevant. Instead of dividing up existing-and often shrinking-demand and benchmarking opponents, blue ocean strategy is about growing demand and breaking from the competition" (2008, p. x)
The most startling summary of the blue sea strategy is well depicted by the authors' summary on Cirque du Soleil's circumstances: the circus company "succeeded because it noticed that to earn in the foreseeable future, companies must stop contending with one another" (Kim & Mauborgne 2005, p. 4). In Toyota's history it is clear that its management has not arrived at the same realization. This can be ascertained from the Chairman's, Fujio Cho, meaning in Toyota Motors Corporation's 2008 Total annual Record: "Toyota aims to achieve sustained, long-term growth by providing high-quality vehicles to people everywhere you go, and by contributing to the realization of any bountiful and nurturing population" (2008, p. 6). What's not aligned with the blue sea strategy in this key phrase is that each other auto company - Ford, GM, Honda, etc. - are also saying the same thing or the likes of it. Clearly this strategy is not going to work in the long run at all if Toyota would like to remain as one of the top in Fortune Global 500.
In comparison, the blue sea strategy goes out of just mere providing high-quality vehicles that happen to be what everybody else is providing. As shown in the shape below blue oceans possess the most effect on earnings though least effect on revenue in comparison to red oceans.
Figure 1 Blue Oceans vs. Red Oceans
Source: Kim & Mauborgne 2005, p. 7
The changing environments as offered by Toyota in its presentation because of its financial results for 2008 so when discussed in the earlier part of the paper, and as reported by the Blue Ocean Strategy reveals several "driving forces behind a increasing imperative to create blue oceans" (Kim & Mauborgne 2005, p. 8). These driving a car forces, unfortunately, won't vanish, hence Toyota must act now and create its undisputed market in the auto industry. To fully realize the benefits of the blue ocean strategy a technique canvas must be created. The canvas is "the central diagnostic and action platform for creating a compelling blue ocean strategy" (Blue Ocean Strategy 2008).
Total customer experience is currently the "new differentiator" (Mascarenhas, Kesavan & Bernacchi 2006, p. 397) which is strictly the point in the blue ocean strategy. Toyota Motors Corporation, in its current and future business environment, must deliver total customer experience. However, there is a need for health care in interpreting each customer's total experience: "Certainly, by meaning, TCE is customer-dependent and hence, is different for every single customer. Weighed against service outlet stores such as restaurants, hotels or banking companies, there is prospect of great variety in customer experience, because the client may seek a wide variety of different services or products. Each stage of the consumption-journey involves an experience that the service provider must try to optimize and the customer must [capitalize]" (Mascarenhas, Kesavan & Bernacchi 2006, p. 415). The main element therefore is to realize an accurate understanding.
Task 19. 3. c
More than ever before, the human source of information strategies, objective, systems and techniques of the business must be integrated and synchronized with the entire Toyota Motors Corporation's strategies, objective, systems and techniques and all of those other organization. Human reference among the key success factors in utilizing the blue ocean strategy must have the ability to support rather than detract the company from it. Hence, the personnel selection, training and development, and performance appraisal techniques should be seamlessly built-into the complete organizational structure advertising systems to ensure that all these systems will work into the same goal: creating uncontested market space and making the competition irrelevant.
Mondy & Noe identified recruitment as the "procedure for attracting individuals on a well-timed basis, in sufficient figures, and with appropriate qualifications, and stimulating them to apply for careers with an [business]" (2005, p. 199). The objective of the selection process for just about any kind of [organization] is choosing the right "individual fitted to a specific position and the business" (Mondy & Noe, 2005, p. 162). Hence, for TMC the purpose of the organization's selection process should be choosing the right individual fitted to the vacant position and have the necessary capacity to help the company in its quest in making your competition irrelevant.
On the other hands, the performance appraisal system is a "formal system of review and evaluation of individual or team process performance" (Mondy & Noe, 2005, p. 252) "to ascertain who should be marketed, demoted, transferred, or terminated (Anthony, Kacmar & Perrewe, 2002, p. 354). Many of the factors that impact the effectiveness of an appraisal system are job-related conditions, performance expectations, standardization, trained appraisers, constant open communication, performance reviews, and anticipated process (Mondy & Noe, 2005, pp. 270-272). Handling staff performance is one of the more difficult and sophisticated activities in a business. Unlike the other resources of a company, the human source is not so easy to regulate: people think and take action accordingly.
Anthony, Kacmar & Perrewe composed that an efficient performance appraisal system are "not only tools for analyzing the task of employees but also for growing and motivating employees" (2002, p. 351). These benefits are central to why the performance appraisal system was developed in organizations: employees have to be motivated and developed to be able to execute their jobs effectively and effectively. Furthermore, the appraisal system of an organization may also be used to "determine who needs formal training and development opportunities" (Anthony, Kacmar & Perrewe, 2002, p. 354). In the end, many of these will lead to a better prepared human learning resource. Hence, for Toyota Motors Organization its performance appraisal system must be redesigned to fit the blue ocean strategy of the business. As a vital component in motivating its employees, the human being tool performance appraisal system of TMC should not operate in vacuum pressure, alternatively it must support the purpose of expanding organizational competencies to make the competition irrelevant.
What possessed Toyota Motors Firm done for its worldwide human reference management is admirable - it developed HRM techniques to preserve the Toyota Production System (Winfield 1994, p. 41). However, today it is no more enough. It is time that Toyota models its individual resource management routines to sustain the blue ocean strategy. The researcher is convinced that TPS is an element of blue sea strategy; hence it will not be the end goal in designing the company's individuals tool management system and its other systems. The four goals as advertised by the business's existing human source management tactics are "employee commitment, workforce flexibility and adaptability, quality" (Winfield 1994, p. 50) in the blue ocean strategy perspective are just several of the factors needed in creating an uncontestable market instead of the current practice (these four goals are the key goals).
Task 19. 3. d
As competition are more and more intense, companies such as Toyota Motors Organization which are leaders in their companies can not find the money for to become complacent. Rather they must again pioneer advancements in their areas. These companies have to assimilate almost all their resources, use these resources proficiently and effectively to attain organizational goals.
As the workforce becomes varied and as competition within establishments becomes more powerful, the need to effectively and proficiently manage human resources to get, develop and preserve competitive advantages is now more important. In integrating the blue sea technique to its overall strategy, Toyota Motors Organization must not ignore that the most important element in order for such strategy to do well is its human resource.