Toyota Process Flow Analysis

6. Osama Alshehri. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-

Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use,

distribution, and reproduction in any medium, provided the original work is properly cited.

Global Journal of Management and Business Research:

Administration and Management

Vol

ume 16 Issue 5 Version 1.0 Year 2016

Type: Double Blind Peer Reviewed International Research Journal

Publisher: Global Journals Inc. (USA)

Online ISSN: 2249-4588 & Print ISSN: 0975-5853

yota Process Flow Analysis

By Os

ama Alshehri

Clay

ton State University, United States

Abs

tract

yota is a world class company that is known for its quality practices and the

production and supply chain is diligently managed so that it can meet its customer demand well

on time. The company strategies are well supported through comprehensive production process

so that it can manage cost efficiency, drive better quality output vehicles and to manage the high

class operational environment. Toyota can further enable Just-in-Time and Total Quality

Management practices so that it can help improve productivity, manage high quality standards

and able to meet customer demand well on time. Company can further develop predictive

metrics, drive transformation and

put high quality standards to further manage its production and

supply chain to meet competitive standards.

Toyota

Proc

ess

lowAnaly

sis

Strictly as per the compliance and regulations of:

GJMBR -

A Classification : JEL Code : M10

Index Terms: manufacturing, process flow, activities, inputs, output, TQM (total quality

management), TPS (toyota production system).

oyot

Flow

aly

sis

hri

stract-

Toyo

ta is a world class company that is known for its

quality practices and the production and supply chain is

diligently managed so that it can meet its customer demand

well on time. The company strategies are well supported

through comprehensive production process so that it can

manage cost efficiency, drive better quality output vehicles

and to manage the high class operational environment. Toyota

can further enable Just-in-Time and Total Quality Management

practices so that it can help improve productivity, manage

high quality standards and able to meet customer demand

well on time. Company can further develop predictive metrics,

drive transformation and put high quality standards to further

manage its production and supply chain to meet competitive

standards.

dex Terms: manufacturing, process flow, activities,

inputs, output, TQM (total quality management), TPS

(toyota production system).

pany

oyota is one of Japan’s top automobile

manufacturing company and known for its quality

products across the globe. Toyota motors was

founded in the year 1937 by Kiichiro Toyoda and has it’s

headquarter in Aichi, Japan. Toyota has around 338

thousand employees across the globe and has wide

range of vehicles offering to the customers. Toyota

mission statement is to provide “high valued products

and services to its customers” while vision statement is

to “be the most powerful and respected car company

across the globe”. The report is going to cover detailed

process flow adopted by Toyota to manage vehicle

manufacturing and able to further link it with business

strategies and define metrics to manage operational

strategies. The capacity analysis is to be linked with

business strategies and able to come up with improving

the process on given metrics.

a) Company’s Strategies

Toyota has following key company strategies

that are enabled at production so as to drive effective

operations. Those are as follows:

• Enabling cost effective approach so that production

can be done to drive value for money products to

customers.

• Able to manage high quality of product through

putting up comprehensive quality process in place.

• Ensuring optimum production is done to meet cus-

tomer demand so as to manage optimum inventory

level and to meet customer requirements.

e process flow of Toyota includes following

key segments while each process steps enable

company to well support its business strategies.

a) Inputs

The inputs for the Toyota manufacturing is

managed through inbound logistics. The raw material is

obtained through set of defined third party vendors. The

primary machineries and technology is obtained from

Japan central office while other daily raw material is

obtained from sourcing countries.

Toyota has put assembly system in place so

that its raw material can be further arranged as per need

and supplied to the plant from the warehouse. The

assembly system is done so that inventory piling can be

avoided and raw material can be made available as per

need. There are 12 full time workers deployed to

manage a plant inbound process while processing time

is 6 hours to manage the single consignment.

b) Activities – Key operational production activities

The key operational activities for Toyota

production include transforming input raw material into

final product. The material to flow through production

assembly line and to be managed through TPS (Toyota

production system) by which each assembly line help

create final product in form of vehicle.

The part sequencing and setting up schedule is

done so that right parts can arrive during the production

of vehicle and complete process is done through

enabling pull system. The processing time is around 3

days to manage production of 50 vehicles in one batch

and takes deployment of 35 full time employees.

c) Output

The final output from the Toyota plant is the

vehicle that is ready to get dispatched to dealers so that

customer can purchase them directly from retail outlets.

The output process goes through quality parameters

while ensuring logistic of vehicle is done through

providing proper safety measures to manage the similar

quality of vehicle till it reaches dealer location. The final

output i.e. vehicles are delivered through sealed

containers to the dealer location.

There is around seven full time employee

deployed to manage one consignment of 50 vehicles so

that quality control, dispatch of vehicle and

logistic

arrangements are done from the plant. Rest of the

activities once vehicle reaches dealer location are out of

scope for company.

16 Global Journals Inc. (US)

Global Journal of Management and Business Research Volume XVI Issue V Version I

Year

( )

2016

II. Deta

iled

Proce

Flow

Author

: Clayton State University, United states.

e-mail: osamah30@gmail.com

1 : P

III.

roce

eas

urement

rics

The various suggestive process measurement

metrics that can be deployed to track process

performance are:



JIT (Just in Time): The first key metrics is that

production should be able to meet the demand and

products are available through concept of JIT. The

JIT enable company to manage minimum inventory

level, able to manage customer demand without

wait time and help manage operations optimally.



Driving TQM (Total Quality Management): The

process can be measured through deploying TQM.

Each process steps need to have defined quality

standards and those standards should classify the

best quality output delivered to customers. The

TQM help reduces the defects and able to manage

the right output to customer without any variance.



Meeting product specification and deliverables:

Another key process measurement metrics is to en-

sure that product (vehicles) are able to meet their

product specifications and all deliverable are met

well on time. The right QC (Quality check) is put in

place to manage the

process.

IV.

ategies to

ddres

xpe

cted

tomer

and

The customer demand is uneven throughout

years while it is especially high during the peak seasons

like festivals, year-end inventory clearance sale and

during corporate bonus times. The Toyota need to

specially come up with following strategies so that it can

manage customer demand:



Demand forecast: Company can

do a demand

forecast for the year on basis of historical data and

also evaluating other external sources so that it can

adjust product accordingly.



Managing optimum inventory: company need to

also ensure that it manage inventory level in range

of 7-10% depend on production fluctuation. The

inventory level will help company to manage

meeting customer demand even if the production is

impacted due

to internal factors.



Getting coordination between plants: Company can

also ensure that each plant production capacity is

ascertained so that effective coordination can be

establishing to manage the customer demand at

any given point of time.

ossi

ble

rocess

rovements

Toyota has best in class practices to manage

its production and supply chain however the following

set of improvements can be adopted to further driven

performance. The key process improvements are as

follows:



Using transformation to further driven process

capacity: Toyota can further upscale its process

capacity through using advanced transformation to

improve assembly line, production and supply chain

process. The transformation includes minimizing

manual productivity, improving quality standards

and ensuring the product gets commenced within

less turnaround time.



Driving predictive metrics to manage production

and output: Company can further develop predictive

metrics so that it can well manage customer

yota Process Flow Analysis

Global Journal of Management and Business Research Volume XVI Issue V Version I

Year

( )

2016

6 Global Journals Inc. (US)1

thro

ut the

r a

The predictive metrics can

be developed through using “bid data” technology

and using comprehensive analysis of market.



Putting up quality standards: Company can further

drive improvements through raising quality stan-

dards so that there is minimum production waste,

product gets ready well on time and company able

to manage its brand image. The quality standards

include putting up effective QC parameters in place,

ensuring all manual check points are removed and

able to

drive high quality output.

erences

éfér

ences

erencias

Iyer A, Seshadri S, Vasher R (2013) Toyota Supply

Chain Management, Retrieved on 25th Jan’16 from,

http://course.sdu.edu.cn/Download/1f7c3a40-e2cf-

442b-a9cf-acbb456bdd3c.pdf.

Toyota (2015) Toyota Mission and Vision Statement,

Retrieved

on 25th Jan’16 from, http://toyota.

custhelp.com/app/answers/detail/a_id/7654/~/what

-are-toyotas-mission-and-vision-statements%3F.

Funaru M (2010) Toyota business strategies in

international markets,

Retrieved on 25th Jan’16

from, http://feaa.ucv.ro/annals/v3_2010/0038v3-

004.pdf.

Greimel, Hans. (2013) Will Toyoda transform

Toyota? Automotive News Vol. 87 Issue 1, pp. 3-34.

Marksberry, P (2012) investigating the way for

Toyota’s suppliers, a quantitative outlook on

Toyota’s replicating efforts for supplier

development, Emerald, Vol. 19 No. 2 pp. 277-298.

yota Process Flow Analysis

16 Global Journals Inc. (US)

Global Journal of Management and Business Research Volume XVI Issue V Version I

Year

( )

2016

This page is intentionally left blank

yota Process Flow Analysis

Global Journal of Management and Business Research Volume XVI Issue V Version I

Year

( )

2016

6 Global Journals Inc. (US)1