Case 17: Toyota in 2009: The Origin and Evolution of the World’s Leading Automobile Manufacturer
1-Compare and contrast Toyota’s manufacturing system with a conventional mass-production system. What are the advantages of Toyota’s system?
Toyota’s manufacturing system is better than the conventional mass production. In the conventional mass production process, the company has to contain an immense inventory, which seems costly. In the current system of Toyota, the Kanban system has been introduced. Just in Time entry has been initiated to bring the inventory efficiency, improve inventory quality, and get the right thing at the right time in the right place. It is one of the top benefits or advantages of Toyota’s manufacturing system.
2-Describe the essential difference between the way supplier relations are managed at Toyota and how they were managed at the typical U.S. auto manufacturer. What are the consequences of these differences?
The big difference between United States auto manufactures and Toyota is also the supplier relations. Toyota has maintained or managed the supplier relationship by organizing them effectively. More than 10,000 individual parts are to be manufactured at other supplier’s facilities. On the other hand, US automakers intend to own the whole production process, and therefore, they usually have low bargaining power. Thus, the best way to manage good relations with the supplier is organizing them for a long run
3-How does Toyota’s approach to customer relations influence its design and production planning process? What are the implications?
Toyota’s approach to customer relationships is unique. This approach created an impact on the planning and production process. The sales and distribution process of the company started evolving in the 1950s and 1960s. Later, the company integrated with customer and automobile market trends to come up with pertinent outputs. For Instance, customers wanted fuel-efficient cars in the competitive market, and Toyota did it to sustain good relations with them. The pertinent design and production planning is triggered by the increase in sales and customer satisfaction, and these are some key implications.
4-Do you think that the cooperation that Toyota has achieved with its suppliers and employees in Japan can be replicated in its overseas manufacturing operations?
Yes, I think the cooperation that Toyota has achieved by suppliers and employees in the country can be replicated in the other country. For Instance, the firm can integrate with the latest auto industry trends such as electric cars developments and different sustainability measures. Overseas manufacturing operations of the company are in the limelight in different countries. However, focusing on the concentrated suppliers to sustain the best supplier relationship is the best approach. To sustain the business in the competitive market, it is imperative to build a strong relationship with these stakeholders in the competitive global automobile market.
5-Will Toyota be able to sustain its competitive advantage over the next decade?
It seems tough for Toyota to sustain the competitive advantage over the next decade. However, due to the excellent, efficient measure, pass production, and remarkable sustainability measure, the firm can have the edge over other rivals in the global automobile industry.
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