1. Introduction
The main idea of this work is to examine the importance of the integrated production system and its implementation in the manufacturing industry. This can be applied in Toyota Motor Corporation a multinational corporation in automotive manufacturing industry operating all over the world.
In the area of production and operation management system, various researchers and experts (Groover, 2007; Metaxiotis, et al., 2001; Lejtman, et al. 2002) have researched the notion of integrated production system over a long period of time, thus it has achieved an extensive attention all over the world, especially in the manufacturing industry. For instance, Groover explained the integrated production system as the combination of both vertical and horizontal manufacturing and production techniques to improve the production process and capabilities of the firm (Groover, 2007).
Additionally, Metaxiotis, et al., 2001 and Lejtman, et al. 2002 have presented a detail analysis of production system and its importance in the manufacturing firms to improve the productivity of the company and create a competitive advantage. It has been accepted by all the manufacturing organizations that the concept of integrated production system ensures long term success of the firm and the detail knowledge about the vertical and horizontal integration of production facilities has become a prime source to create competitive advantage over the competitors.
According to the point of view of various authors (Chary, 2006; Jin Vonderembse and Ragu-Nathan, 2001) concentration of the technological resources and flexibility to execute integrated production system would require greater financial cost and experts in the field of operations and production for i...
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With the objective of manufacturing the vehicles in the most effective way and supplying the vehicles to the customers on time. The Toyota Production System (TPS) governs on two theories, namely "Jidoka" implying humanized automation that discovers process glitches and product shortcomings so that the equipment stops straight away averting further flawed production. The second concept of "Just-in-Time"(JIT) shows in a continuous flow, each procedure will only yield the fixed quantity as required by the succeeding process. During the commencement of Toyota, the market demand was at the peak. They touched a limit where they couldn 't meet these escalating demands. In a conventional way, they positioned all the machines together. However, after the implementation of production simulator with all the support from the people and management, they altered the layout of the entire plant as per their process flow. This made their work easier in terms of carrying parts back and forth in between the processes. With the vision of multi-tasking, each worker was executing on more than one machine. These lead to the
The tool essentially shows the chain of activities required to develop and deliver the products. The effectiveness of the organization vastly improves when all the key activities such as customer, vendor, suppliers and partner within the value chain working smoothly. The value chain used to reduce operational and production cost using low-cost producer strategy. If two service or products are delivery by two separate divisions for two different markets, there are functionality and process that can be integrated to save cost.
With this differentiation, Toyota Motor is able to compete with its competitor in term of price, because Toyota’s production system leads to efficiency and low-cost production. This manufacturing system has created the differentiation of Toyota, which it produced the vehicle with high quality and low prices. Some concepts that Toyota has been adopted are Lean Manufacturing concept, Just In Time, Kaizen and Six Sigma. This competitive advantage is something that no other automaker can do it as well as Toyota
Ownership and control of production ; vertically integrated manufacturing operation to enable its constant introducing of new items and also ensure short lead time
The basic premise for JIT is fairly simple: a company only produces an item when there is a need, or just-in-time for a company or individual to purchase it (Manoocherhi, 1988). The theory of JIT also accepts that there may be a need for an item at another work station and this would also create the need for production. Rather than utilizing the common practice of mass production and attempting to sell and distribute the products after they are created, JIT waits until there is a defined need that must be met. By doing this, JIT systems allow companies to decrease the level of production, decrease the necessary manpower hours utilized in mass production modes of supply, and eliminates the waste inherent in over-production. These techniques are especially effective for small companies, who are far less able to absorb the impact of unsold products. JIT has been shown to significantly impact reductions in overhead costs that reduce re-investments, and encourage stabilizing business practices(Manoocherhi, 1988).
According to Toyota, they have undertaken a manufacturing revolution that has fundamentally changed established practices; all the way back to the product development and design. They have done this by integrating four areas: design, production engineering, procurement, and component supply. They have achieved higher quality at lower costs by creating standardized, multipurpose components. Also the reduction in cost has heightened the value and fortifies the competitiveness of product. To do this, Toyota has required intensive coordination with its suppliers. Another factor of their Integrated Low Cost is that Toyota steadily feeds cost improvements back into the product to raise their value along with the fact that four Toyota’s seven corporate auditors are outside corporate auditors.
This report focuses on Toyota Motor Corporation, a Japanese automotive manufacturer which developed the concept of lean manufacturing to increase the efficiency of its production by reducing the stock holding level. The basis of Toyota Production System (TPS) is the sheer elimination of waste. TPS includes standardization of work, uninterrupted work flows, direct links between suppliers and customers, and continuous improvement based on the scientific method (Spear and Bowen, 1999). The four main concepts of TPS are Just in Time (JIT), automation, flexible workforce and capitalizing on workers suggestion. Also, Toyota uses the pull inventory control system where the orders come from the customers and the line reacts to the demand. Ohno (1988) formulated Kanban as a ‘medium to pull material from an upstream station and manage product flow’. This has given Toyota its competitive advantage through the years.
Since more than 40 years, Toyota Company was thinking how to develop the traditional process costing system and the production system. Some of the companies believe that the increasing of the production is a big profit, while Toyota proved the opposite. The more you increase the products out of the need of the market, the more losses you are going to gain. This kin...
In 1950s, Toyota has developed lean thinking. The Toyota Production System aspires to minimize waste and increase efficiency while at the same time enhances its product quality. From this initiative, Toyota managed to widen its competitive edge by employed fewer employees in the car production with a small number of flaw products.
Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota
Today, mass production still reigns supreme. Products move along an assembly line much the same way, being assembled in a formulaic manner by unskilled workers. Modern businesses have developed strategic operations in order to provide higher volumes with more customer choice, such as mass
In order to facilitate the growth of assets a firm must control its assets by matching production and sales. To manage sales and productions, organizations “employ level production methods to smooth production schedules and use manpower and equipment efficiently at a lower cost” (Block & Hirt, ...
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
In manufacturing process there are different steps and jobs needs to be done in specific ways and time such as sourcing the parts we need in the production, make the items, and shipping it for the customers.
Toyota’s core competencies seem simplistic, yet they are very powerful. There are two in which they focus on which is continuous improvement and respect for people. These core competencies are a part of their production system, better known as the Toyota Production System (TPS). The TPS is based on the philosophy “completely eliminating all waste”. Excess inventory, defective products, and unnecessary processing steps are all inclusive when discussing excessive waste, which eventually negatively effects the corporation as a whole. In 1924, Sakichi Toyoda created the Toyoda Automatic Loom, which improved productivity and work efficiency by eliminating wasteful practices and defective products. Kiichiro Toyoda believed that “the ideal conditions for creating things are more successful when machines, facilities, and people work together to add value without generating any waste.” (The orgin of the toyota production system,