Operations Management at Toyota
Toyota is among the leading automobile manufacturers of the world selling almost 9 million models at all the five continents. Toyota has been awarded a position in the top 10 fortune global 500 enterprise and the company was ranked among the most renowned automaker and it have the dedication towards providing complete customer satisfaction. And the company has also tended to provide and shape up the effective set of values and principles which have become the roots of the company since its inception.
Toyota is producing products globally and therefore should implement effective strategies in order to achieve the requirements of the customer. The operation management of Toyota is properly designed and developed. The operations are analyzed on timely basis and it is significance towards the improvement which particularly involves the Just-In-Time system. The system is also renamed recently as the Lean manufacturing system. They have developed a very unique and attractive strategy out of this system that can be placed into five groups known as the five zeros.
The five zeros include the zero inventories, zero paper, zero defects, zero downtime and zero delay. The five zeros are related to maintain the inventory and plans at a minimum level also visible
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In order to achieve these objectives there are two more components which should be involved in the JIT system and it includes the Total People Involvement and Total Quality . This could only be achieved through effective quality planning, quality control and most important quality improvement. The operation system of Toyota is very useful and has provided many benefits to the company. The operational team is very motivated towards their work and responsibilities and effective planning is developed through complete participation of all the team members.
They have changed the traditional systems and are implementing new tools and techniques in order to maintain the success and satisfy the needs of the market. Being a leading brand the company has many responsibilities and their operation management is key area of the business. The JIT system cannot work without MRP working together at a degree of work. The Toyota management has eliminated the fact and they have not used the traditional push systems and they are using the Kanban pull system which very much beneficial for the operational system. The basic purpose of using the Kanban system is to control the production flow.
Kanban means card or sign. The system will work upon the assembly line and there are stations developed that the first station towards which the work is appointed it has to accept it provide with the receipt of acceptance so will be done by the second station towards which the task has been diverted. The Kanban pull system will help effectively to identify the gap and problems that might occur during the execution of the process. The problems should be detected on time in order to avoid heavy loses in the future and continuous improvement can be executed along with the elimination of the waste.
The involvement of the entire team member is very important because it creates a special bonding amongst the team members and more ideas can be generated. Kanban system also helps in maintaining the useful inventory and it automatically reduces the amount of inventory that has been used among the work stations. This has enabled Toyota to form a symbolic war against waste and this created the efficiency of the operations and increased the process effectiveness. The Toyota management also implemented the production system that helped in decreasing the chances of breakdown.
Skilled operators are hired and teams are developed accordingly and some analytical processes were also developed and executed. Toyota management also emphasized upon team building and team work for the execution of operation management and also encouraged the decision making process in which all the team members should be involved. Conclusion The operation management is the area of management which is concerned with the designing, overseeing and the redesigning of the operations of the business in the production of service and product .
It also involves to ensuring the operations are effective and efficient while using less resource that is reducing the cost. Toyota Company is world’s renowned manufacturing firm and it has proved itself also in the market. The operation management they are focused upon is very effective as they have adopted the change of the market and they know very clearly that what the requirement of the customer is. The involvement of the company employees in the decision making process is also visible.
The quality management department is also very much focused upon the better quality of the product. The processes that are adopted by the company are also very efficient and they are always in the process of adopting the change. The process building the finished goods involves the suppliers that provide the raw material Toyota has used the JIT system to complete the task with high quality, low cost and on time. Case: Southwest Airlines
Operation Management Background: Southwest Airlines are one of the largest airlines of the world. It is also known as the discount airline as compare to its competitors. Southwest airlines were founded by Rollin King and Herb Kelleher in 1971. The airline has developed the strategy “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. ” Southwest is serving around 60 cities with almost 71 million passengers and with the revenue of $6. 5 billion. Southwest publicly is traded as ‘LUV’ symbol.
The Key Competitive Advantages are as follows: •Low Operational costs / High Operational Efficiency •Award winning customer service •Organizational work culture/ Practices of Human Resources Analysis of operation Management: The corporate strategy of the Southwest airlines has the advantage over the competitors through the execution of the efficient and effective operational strategy.
The operational processes that have lead towards the success are listed below: •Operational Costs and Efficiency •Customer Service •Employee and Labor Relationship •Technology Operational Costs and Efficiency The southwest Airlines have many effective operation strategies through which it has achieved success and has fulfilled the requirements of the customers. It has the lowest costs and rich balance sheet. The major operating costs of the Airlines are two which includes the Labor cost and the fuel costs.
There are some more aspects through which Southwest has kept the operating cost low in the industry and it includes the following: •flying point-to-point routes •choosing secondary (smaller) airports •carrying consistent aircrafts maintaining high aircraft utilization •encouraging e-ticketing Employee and Labor Relations The Southwest has primarily focused upon the relationship of the management; the airlines have very effective and very innovative management styles through which it has developed many strong bonding among the workers. People involvement is very important in any industry and especially for the operation management team work is very important. Quality management can be only achieved when the goal and objective of the company is clearly communicated to all the team members of the company.
The customer requirements and developing the plans in order to smoothly execute the functions proper planning is very essential. Customer Service The Mission of Southwest Airlines The mission statement of the Southwest Airlines has focused upon the dedication to the pure and high quality of the Customer Services that should be delivered through a sense of friendliness, warmth, individual pride and true spirit. The president of Southwest Airline has said that “We are in the business of Customer Services and we provide airline transportation”.
The unique and effective customer service can be distinguished through a Positive Outrageous service which indicates the fulfilling the customer requirement with great care is very important. Southwest Airlines have many efficient workers and they work on the operations of the company, the operation management includes the proper planning of handling the customers, providing them uninterrupted service, sales forecasting in different seasons when the travelling is high or low, capacity planning is also done very analytically and the operations management team is involved in all the process of planning and execution very dedicatedly.
The business of Southwest airlines has revolved around providing the reliable, safe and short duration air service at the possible lowest price. It has the average trip of about 400 miles and the bench marks of the company it against the cost ground transportation. But it is also believed by the Southwest management that in order to decrease the cost the services quality should not suffer. Technology Southwest has a set up of technology which fulfills the objectives of the business and helps in maintaining efficient operations.
The productivity of the airlines equals the technology they have introduced the ticketless travelling through which the passengers can travel without ticket. Southwest has set the benchmark of the customer excellence in the industry and it has demonstrated the pure example of commitment towards the core competencies, efficient operations which drives through the low cost structure, outstanding delivery of the customer service and innovation in the Human Resource practices. Recycling & Waste Reduction
Southwest Airlines has also dedicated its services towards the waste reduction. The suppliers also participate in providing value to the environment. They have developed plans to recycle the materials in order to reduce the waste. They have also introduced the onboard recycling program and Recycling Services Inc. is the co-partner. Employee Involvement In order to avoid the environmental issues they have also established the Green team which comprises of the volunteer employees of the company.
The main objective of the company is to identify the efforts that will environmentally responsible, find areas for improvement, provide recommendations and put a green filter upon the decisions of the future. Load Planning The load planning process has substantial improvements in order to balance the cargo loads effectively. The processes of load planning have resulted in better loading of bag removal, fuel savings, productive operations of ground and improved timely performance.
The company management is also focused upon the Low-Cost leadership through efficient and effective procurement, fuel management, project management practices and the facilities of the construction. The suppliers are also involved in the evaluation and selection process. The selection processes are in many shapes which depends upon the requirements of the company operations and the conditions of the supply market. All the selection processes are completely focused upon the efficiency of the results and the combination of reliability, quality and service at the lowest possible cost.
Conclusion Operation management enables any kind of company to complete the process and provide the finished good to the customer. The Southwest airlines have many efficient operations and they have proven that the operation processes are very important for the company. The input, process and output are three simple steps but require proper planning and involvement of the management. The complete involvement of the employees is also required and the processes of operations are executed according to the plans that were developed.
The customer services based company has to be focused upon the requirement of the customer and the company should be careful about the execution of the plans. Operation management is a very essential function for any business and it helps the business in planning and implementing the useful processes to achieve the desired results. The operations development should also help in reducing the level of harm upon the environment. Companies should be careful about the waste management also because it is very important to save the environment also. All the functions of the operations management should be implemented effectively.