Supply Chain Management Of Toyota Essay

3385 words - 14 pages

Supply Chain ManagementIntroductionMany researchers have pointed out the importance of Supply Chain ( SC ) and Supply Chain Management ( SCM ) in competitive environment. In this report, we will discuss about ( i ) Toyota Mortor Manufacturing North America ( TMMNA ) which is located in Erlanger, Kentucky, current supply chain position and one of its suppliers, TAC manufacturing, located in Jackson, Michigan, supplies steering wheels and air bags for TMMNA, current supply position by drawing supply chain diagram, ( ii ) the possible operational and supply chain strategies which could be used to enhance TMMNA's future performance to take competitive advantage over other firms and ( iii ) the ...view middle of the document...

Let us discuss TMMNA and TAC current supply chain position and their contracts.( i )Defective partsInbound Operations Outbound Marketing and Logistics Logistics Sales, ServicesP R I M A R Y A C T I V I T I E SFig : TMMNA's SC diagramDefective partsInbound Operations Outbound Marketing and Logistics Logistics Sales, ServicesP R I M A R Y A C T I V I T I E SFig : TAC Manufacturing's SC diagramThe reason why TMMNA and TAC Manufacturing is similar is TAC follows Toyota Production System ( TPS ). TMMNA get raw materials from TAC and then store it in inventory for a few days. Then, it is assembled. After assembling, if defective parts are found by quality control department, it is sent to the assembly and re-assembly again. The qualified parts are stored in inventory and then it is sent to customers by using TLS. TAC also adopt this same process. But the main differences are TMMNA adopt mass assembly line and TAC follows one by one assembly and single piece work flow rather than batches. If defective parts are found, TAC immediately take action within 24 hours. TAC more rely on visual management control but TMMNA more rely on its SIS. TAC prefers team based culture but TMMNA adopts both individual and team based.Fig : Differences between TAC and TMMNA( ii )Let us discuss about operational and SC strategies which could be used to enhance TMMNA's future performance and achieve competitive edge on other firms. " Operations Strategy is the total pattern of decisions which shape the long term capabilities of an operation and their contribution to overall strategy " ( Lowson, ). SC strategy is a long-term plan with goals and objectives. It is about using all of elements involved in the SC to produce better results for the company. Monczka ( 2003 ) describe it consists of improving the use of technology, reducing costs and cycle times. In short, operational strategy is the planning of day-to-day activities and a part of SC strategies. SC strategy is a long term and a part of corporate strategy. Operational strategy supports SC strategies and again SC strategies provide corporate strategy to achieve company's objectives by linking SC strategy and business strategy. Many researchers describe there are many operational and SC strategies. We will discuss all possible operational and SC strategies which is being used by TMMNA.( a ) Material Requirement Planning ( MRP, Push Strategy )MRP is a widely used production scheduling technique in manufacturing industry to plan the requirements of raw materials by using bills of material, inventory, open order data, lead time and master production schedule. Nagendra ( 2001 ) describe it aim is to reduce the inventory cost while demand relationships are met. It supports to plan for effective production and control the materials. One of the useful software which help for MRP is Enterprise Resources Planning ( ERP ). ERP helps manufacturers to better control the time, raw materials and resource requirements to fulfill...

Find Another Essay On Supply Chain Management Of Toyota

Supply Chain Management of Amazon Essay

2052 words - 9 pages This paper reviews the supply chain management practices of Amazon.com (AMZN) and highlights findings in the framework of a Strengths – Weaknesses – Opportunities – Threats (SWOT) framework. AMZN opened its virtual doors on the World Wide Web in July 1995 as a web based bookseller and today offers Earth’s Biggest Selection according to the company’s 2012 annual report to shareholders. AMZN’s vision statement is to be Earth’s most customer

Comparison of Supply Chain Management Practices

5906 words - 24 pages This report provides a comparison of the supply chain management practices of Wal-Mart and Toyota. Comparison was done after researching, examining, and analysing each company’s supply chain management practices, in relation to each company’s values and philosophy. Comparison was done in five sections, by examining strategic alliances, procurement and outsourcing, challenges and risks, sustainable strategies, and efficient supply chains in

The Strategic Importance of Supply Chain Management

2046 words - 8 pages 420122139420122139SYNOPSISThis report illustrates the concept of logistics and supply chain management and how supply chain management is gaining more importance in the competitive environment. The first section of the report briefly explains the development of the concept of supply chain management. The second section highlights the main reasons for the importance of supply chain management in aspects of historical reasons, cost concern

Emerging Field of Green Supply Chain Management

707 words - 3 pages environmental and social sustainability towards operations management and the supply chain. Manufacturers in the late 1980’s went beyond what was required in the legislation and went for a greener approach in their operations systems. The purpose of this paper is to briefly review the literature of the green supply chain management (GrSCM) over the last twenty years. The key themes that came out of the literature are: green operations, green design, green

Supply Chain Management: The Heartbeat of Dell

1671 words - 7 pages A human heart is a great example of an effective supply chain management system. To the unsuspecting owner, it transparently replenishes the blood supply by providing red oxygen-rich blood into circulation, and retrieving. When demand for oxygen to the muscular system increases, the heart rate increases as well, furiously pumping through four chambers each with a series of valves and flaps which restrict blood flow in one direction. When demand

Legal Aspects of Supply Chain Management

2683 words - 11 pages Legal Aspects of Supply Chain Management Internet has definitively changed the relationships of the company with the different business partners of the supply chain. E-Commerce/E-Business is any ‘net’ business activity that transforms internal and external relationship to create values and exploit market opportunities driven new rules of the connected economy.”(Damanpour 2001). It refers to all forms of business

Supply Chain Management

541 words - 2 pages organizations are developing and implementing better systems, which can forecast the demand and supply in a flexible way to the changing needs. The changing business market has forced the organizations to employ highly skilled people on a better infrastructure and to develop supply chain mechanisms, which is flexible to the changing market conditions and demand. IN this document, we will discuss the various aspects of supply chain management in

Supply Chain Management

5464 words - 22 pages Supply Chain Management Introduction Supply chain management is emerging as one of the most powerful business practices. It is transforming the way manufactures operate and work with partners - even the way they think about business. Why all the sudden interest? Mere observation of industrial practice brings to light a simple truth; very few materials remain in the constant ownership of one person, persons or company from their

Supply Chain Management

668 words - 3 pages “Supply chain management is the flow of goods, services, and information from the initial sources of materials and services to the delivery of products and activities occur in the same organization or in other organizations”(Horngren695). This approach enables Regal Marine (R.M) to be highly effective, efficient, and profitable. More over supply chain management effectively manage your supply chain by synchronizing the demand for your products

Global Supply Chain Management

822 words - 3 pages consists of all stages involved in fulfilling a customer request. It is a network of facilities and distribution options that performs the function of acquiring materials, transformation of these materials into finished products, and the distribution of these finished products to customers.With these definitions, the supply chain management is the integration of key business processes from end user through original supplier that provides products

Supply Chain Management

1711 words - 7 pages Supply Chain Management Supply chain management lets an organization get their products of raw goods to the place they are needed at the right time, the right place, and what exactly they have ordered, and at a reasonable cost. It moves from parts supplier to manufacturers to wholesale to retailer then consumer. Supply chain management plays an important role supplying the manufacturers all the way down to the consumer, so they can satisfy

Similar Essays

Toyota And Volkswagen Supply Chain Management

4885 words - 20 pages Abstract:This assignment gives the overview of the Toyota and Volkswagen. It also explains about their supply chain relationship of those manufacturers. It also gives the advantages and disadvantages of those companies. I have also compared the strategies of Toyota and Volkswagen. I have collected some details regarding the future scope and threats for both the manufacturers. I have given some general statistics of both the companies. Then I

Toyota Supply Chain Essay

2838 words - 11 pages having a superior supply chain. However recent events, specifically the 2010 recall of some of its major models, indicated that there are some issues affecting its supply chain. It is therefore important to analyze and evaluate this organization’s supply chain and thus provide recommendation for the way forward (Krivda 2004; Aqua Management Consulting Group 2009). Toyota Supply Chain Management For years Toyota has been considered to be having

Analyzing Of Supply Chain Drivers On Example Of Toyota Company

1981 words - 8 pages 1. Introduction.In order to understand how Toyota Company have improved its supply chain performance in terms of responsiveness and efficiency, we should examine four supply chain drivers: inventory, transportation, facilities and information. Above-mentioned drivers not only determine the supply chain's performance in terms of responsiveness and efficiency, they also determine whether strategic fit is achieved across the supply chain.Consider

Toyota Lean And Agile Supply Chain

1947 words - 8 pages define supply chain as the integration of key business processes from end-user through original suppliers that provide products, services, and information that add value for customers and other stakeholders' (Lambert et al. 1998, 2006).The lean system was first adopted by the Toyota Production System in (Ohno, 1988).The focus of lean supply chains is the elimination of all waste, including time, to enable a smooth schedule to be established (Naylor