PRODUCTION AND OPERATION MANAGEMENT

Presented by: Talha Bin Hassan 0003

Huda Shaukat 0005
Rafia Arooj 0029
Arbaz Butt 0053
 

Assigned by: Prof.Farooq qaiser

 
History
Indus Motor Company Limited (IMC) was incorporated in 1989 as a result of a joint venture
agreement among some companies of House of Habib of Pakistan, Toyota Motor Corporation
and Toyota Tsusho Corporation of Japan.
In its 27 years history since inception, IMC has sold more than 750,000 CBU/CKD vehicles and
has demonstrated impressive growth, in terms of volumetric increase from a modest beginning of
20 vehicles per day production in 1993 to 240 units daily at present through the development of
human talent embracing the ‘Toyota Way’ of quality and lean manufacturing.
After World War II, Japan experienced extreme economic difficulty. Commercial
passenger car production started in 1947 with the model SA. The company was on
the brink of bankruptcy by the end of 1949, but the company eventually obtained a
loan from a consortium of banks which stipulated an independent sales operation
and elimination of "excess manpower
Vision
“To be the most respected and successful enterprise, delight customers with a wide range of
products and solutions in the automobile industry with the best people and the best technology.”
Mission
Core values
 World class production quality
 Achieving the ultimate goal of complete customer satisfaction
 Being seen as the best employer
 Fostering the spirit of teamwork
 Inculcating ethical and honest practices
 Toyota’s Main Supplier
As the world’s second biggest car manufacturer, with more than six million cars sold as of
July 2018,
Toyota Motor Corp as a diverse supply chain to support its business operations. In Japan,
Toyota buys directly from 200 component suppliers.
200 suppliers account for 2 billion units of which 150,000 types are purchased monthly.
The total value of purchased components is pegged at $300 million a month.
spends approximately $32 billion per year on supplier parts and materials, goods and
services in the North American market.
. Magnuson Products, IPT Performance Transmission, Goodridge Fluid Transfer Systems,
MagnaFlow, Autometer, Impact Racing, Goodyear, Nitrous Supply and Optima Batteries.
Global hierarchy
Toyota maintains a global hierarchy with its headquarters in Japan.  The headquarters
take the final decisions on all the matters and is responsible for passing on judgment and
decisions on major issues.  If individual business units do not communicate well with each
other, then the Japan office can give the final say or verdict.
Geographic divisions
The company has 8 geographic divisions which are North America, Japan, East Asia,
Europe, Middle east, Africa, Oceania, China, Asia, Caribbean and Latin America. Each of
these regional centers and their heads must report to the headquarters.
Product-based divisions
  The company consists of 4 of these divisions and they are Lexus international, Toyota
no. 1 for operations in North America, Japan and Europe, Toyota’s no. 2 for operations in
all other regions and the Unit center
Target Market Strategy Of Toyota
 For success in the future, they have hired consultants to review its success.
The experts will evaluate Toyota’s target market and market positioning in
the global automotive industry. Target market will identify demographics,
and geographics where they are successful and what changes can be
implemented to achieve growth. Market positioning strategy will determine
consumer need.
Their production of vehicles is estimated at more than 10 million per year.
 Operations Management

Lean Manufacturing
Toyota is no stranger to operations management, and is responsible for coming up with the lean manufacturing
strategy, sometimes known as “Toyotaism.” Essentially this strategy deals with the elimination of superfluous
resources, particularly those which do not pertain to the value of the end product. Lean manufacturing also
involves only employing resources towards services, products or features that the customer wants, thereby
giving the customer the largest value with the lowest amount of resources.
Six sigma
The six sigma process ensures that there is a very low level of defect in the output product, and improves the
quality of the outputs. The six sigma approach also relies on the specialization of different aspects of the six
sigma approach, and this system works on a hierarchy of people.
Kiazen
Kaizen is to focus on carrying out small experiments and measuring their results rather than implementing
large sweeping changes, as small changes can be judged and quickly adapted accordingly. Kaizen also involves
an emphasis on self-discipline, teamwork, improved morale and suggestions for improvement from all levels
of the organization.
 Operations Management

Theory of constrains
This strategy relies on the premise that there are only at most a few constraints limiting
productivity and output, and that the most crucial step is to focus resources into minimizing the
constraint, which will produce the maximum improvement in the overall organization. This
strategy is employed by first recognizing and addressing the largest constraint, and then focusing
on other constraints in turn.
Hoshin Kanri
In this strategy, the focus is more on the overall goal rather than specific daily goals or short-
term goals. The important emphasis is on every level having its own specific piece to contribute
towards the goal, and each part being held responsible for the attainment of the goal laid out
for them by the initial policy.
 Production Scheduling
The production schedule is created once a month from the sales order and forecast. As discussed in
Sales and Operations Planning, sales divisions submit a rolling three-month order and forecast each
month. The Production Control division must create a daily production plan to execute the agreed
upon schedule.

Scheduling Inputs
For the purpose of this discussion, assume that the next production month “N” is being scheduled.
The “N” month is considered a firm order commitment, and “N 1” and “N 2” are considered
preliminary forecasts.
The forecast for months N 1 and N 2 do not prevent changes in volume or content. However,
because of the 80/20 rule of mix planning described in Toyota Mix Planning, the actual variation in
individual options from month to month will be somewhat muted when calculated on a daily rate
basis.
 Top 11 Toyota Competitors

1. Mercedes
2. Volkswagen
3. Honda
4. BMW
5. hyundai
6. Ford
7. Nissan
8. Audi
9. Tesla
10. Suzuki
11. Porches
 Brand and product line of toyota
A popular brand of automobiles, Toyota is an international company in the automotive sector. Its
innovative approaches for the design and production have led way for many vehicles plying on road
daily.
Toyota 2000GT
Toyota Camry
Toyota Carina
Toyota Celica
Toyota’s compact MPV models
Toyota Corolla
Toyota Hilux
 Brand and product line of toyota
Spare parts
Spark plugs, oil filters, wiper blades, disc pads, V belts, etc.
Maintenance Parts

Oils & fluids Engine oil, brake fluid, LLC, etc.

Bumpers, fender panels, headlights, etc.
Exterior & functional
parts
Accessories
Navigation systems, rearview monitors, rear-seat displays, etc.
AVN*products

Floor mats, side visors, aerodynamic parts, security products, air purifiers, aluminum
wheels, etc.
Other accessories
Five Main Principles of Toyota
 - Always be faithful to your duties, thereby contributing to the Company and to the overall

good.

 - Always be studious and creative, striving to stay ahead of the times.

 - Always be practical and avoid frivolousness.

 - Always strive to build a homelike atmosphere at work that is warm and friendly.

 - Always have respect for spiritual matters, and remember to be grateful at all times.
Toyota Production Scheduling and Operations

Production scheduling requires close coordination between sales and plant operations.
In Toyota Learning, we will explain how the production schedule is used to provide
consistent and continuous flow of materials and vehicles throughout the supply chain
 Assembly Plant Operations

Stamping shop. The stamping shop is where the body parts for a vehicle are stamped out of huge coils of
steel. Large stamping presses are arranged in a row connected by conveyors. At the start of one row of
presses, sheets of steel are cut from the coil and fed into the first press. After the first press stamps the basic
shape of the body part (for example, the hood or the door panel), it is routed to the next press, where the
press may create a curved shape.

Body shop. The body shop is where a vehicle is born where it gets its identity. At body start, each vehicle
gets a unique body number and is assigned a Vehicle Identification Number (VIN). The vehicles are started
in the planned line-off sequence, which is based on the production schedule and sequence.

Paint shop. Color is applied to the vehicle at the paint shop. The shop consists of multiple paint booths that
use robots to spray-paint the body shells coming from the body shop.

Assembly shop . The assembly shop is the most labor-intensive shop. Most of the parts are installed by
hand by team members working in small teams. Each team is responsible for the work performed during
one process cycle at one workstation
 Sales line
. The point at which a vehicle’s ownership is transferred from the manufacturing division to the sales
division is the sales line .Company covers over 1,300 acres of land and employs about 7,000 team
members. There are another 1,500 to 2,000 people employed by vendors working onsite, such as food
service, day-care workers, etc.
 SWOT analysis of Toyota

• strength • weakness
• Strong Human Resource
• Dependence on Suppliers
• Innovative Organizational Culture
• Not Grabbing Markets
• Strong Brand Image.
• Negative Publicity
• Strong Diversified
• Poor Brand Recognition
• Advanced Technology
 SWOT analysis of Toyota

• Opportunity • Threats
• The growth of Developing Nations
• Number of Competitors.
• Green Vehicle Technology
• High-priced Raw Materials.
• Growing Concern for Environmental
• Lower Profits
Pollution
 The Four Rules of Problem Solving at Toyota
This scientific method serves as one of the four rules that underlie Toyota's manufacturing process
.
The rules are:
Rule 1. All work must be highly specified.
Rule 2. Each customer-supplier relationship is direct. This applies to both  internal and external
customers and suppliers.
Rule 3. The pathway for each product and service should be simple, transparent, and direct.
Rule 4. Every employee uses what the company calls the "pragmatic" scientific method to solve
problems. The method entails defining specifications, establishing hypotheses, continually testing
them and measuring the outcomes
THE STRATEGIC PLANNING PROCESS:
Task 1 is about develop strategic mission and vision of the company, this can be explain as Toyota need
to inject sense of purpose into firms activity, provide long-terms direction, give firm strong identity’s
and decide who they are, what they do and where they were head. A strategic vision widely shared
among the employees function similar to how a magnet aligns iron fillings.
Task 2 is about setting objectives. The purpose of setting objectives is to:
 Convert mission into performance targets.
 Create yardstick to track performance.
 Establish performance goals requiring stretch.
 Push firm to be inventive, intentional, focused.
 Setting CHALLENGING but ACHIEVABLE objectives guard against:
 Complacency.
 Drift.
 Internal confusion.
  

Technology Use In Toyota

 2018  2015

 Visibility assist LED Array  Driver assist Intelligent

Adaptive High Beam System Clearance Sonar

 Driver assist Intelligent
2016  Driver assist Drive-Start
Clearance Sonar with Eight  2017 Control
Sensors
Driver assist 
Lane Departure Alert with 
 Visibility assist LED Visibility assist Adaptive
 Driver assist Intelligent Cornering Lamps Steering Control System High-beam System
Parking Assist 2
 Visibility assist Wide- Visibility assist Panoramic View  Driver assist Simple
Visibility assist Panoramic View Monitor with Cross Traffic
Monitor with Left and Right angle Color Backup Intelligent Parking Assist
Guide Monitor Detection
Visibility Support and See-
Through View Function  （ S-IPA ）

 Driver assist 
Lane Departure Alert
Visibility assist Rear Cross
   CONCLUSIONS:
The conclusion is Toyota need a strategic planning when run the business. The strategic
planning must start with realistic objectives and know the functions of each member. The
process can help Toyota to perform well and to regains the trust of consumer.
As the conclusion, strategic positioning and SWOT matrix are related and useful for Toyota to
achieve their organizational objectives. Toyota must appreciate their success with giving some
extra services to the environment and government.
As a conclusion, Toyota need to understand the concept of audit in order to improve their
performance then benefits the company and others parties. Because of the auditing, Toyota
have achieved the success as nowadays, having the branch in worldwide and produce the high-
standard quality products.