OPERAATIONAL MANAGEMENT

FINAL REPORT

PROJECT REPORT
TOYOTA COMPANY

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ACKNOWLEDGEMENT

“Praise to be ALLAH, Lord of the worlds, the Beneficent, the Merciful”

We would like to thank our respected teacher Sir. Tauseef Iqbal forgiving us this
opportunity to work on this project. In this project welearnt a great deal about the
Operational Management and Objective that we havestudied in our class.

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CONTENT
S.no Topic Page no

1 Introduction 4

2 Vision and Mission 5

3 Operational Manager Responsibilities 6

4 Strategic Areas 7-8

5 Recommendation & Conclusion 9

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INTRODUCTION
Indus Motor Company Limited (IMC) was incorporated in 1989 as a result of a
joint venture between the House of Habib, Toyota Motor Corporation and Toyota
Tusho Corporation of Japan. The Company assembles and markets Toyota brand
vehicles in Pakistan. The manufacturing facility and offices are located at a 105
acre site in Port Qasim, Karachi, while the product is delivered to end customers
nationwide through a strong network of 45 independent 3S Dealerships spread
across the country. Over the years, IMC has made large scale investments in
enhancing its own capacity and in meeting customer requirements for new
products. Today, Corolla is the largest selling automotive brand model in Pakistan
and it also has the distinction of being # 1 in Toyota’s Asian market. The Company
has played a major role in the development of the entire value chain of the local
auto industry. As of 2017, Toyota is the world's second-largest automotive
manufacturer. Toyota was the world's first automobile manufacturer to produce
more than 10 million vehicles per year which it has done since 2012, when it also
reported the production of its 200-millionth vehicle.

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VISION STATEMENT
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 STATEMENT
Provide safe and sound journey. Toyota is developing various new technologies
from the perspective of energy saving and diversifying energy sources.
Environment has been first and most important issue in priorities of Toyota and
working toward creating a prosperous society and clean world.

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OPEREATIONAL MANGER’S
RESPONSIBLITIES

• Provide inspired leadership for the organization.

• Make important policy, planning, and strategy decisions.
• Develop, implement and review operational policies and procedures.
• Assist HR with recruiting when necessary.
• Help promote a company culture that encourages top performance and high
morale.
• Oversee budgeting, reporting, planning, and auditing.
• Work with senior stakeholders.
• Ensure all legal and regulatory documents are filed and monitor compliance
with laws and regulations.
• Work with the board of directors to determine values and mission, and plan
for short and long-term goals.
• Identify and address problems and opportunities for the company.
• Build alliances and partnerships with other organizations.
• Support worker communication with the management team.

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STRATEGIC AREAS
  Design of Goods and Services:
Toyota addresses this strategic decision area of operations management through
technological advancement and quality. The company uses its R&D investments to
ensure advanced features in its products. Toyota also integrates dealership
personnel needs in designing aftersales services.

Quality Management:
To maximize quality, the company uses its Toyota Production System (TPS).
Quality is one of the key factors in TPS. Also, the firm addresses this strategic
decision area of operations management through continuous improvement, which
is covered in The Toyota Way, a set of management principles.

Process and Capacity Design:

For this strategic decision area of operations management, Toyota uses lean
manufacturing, which is also embodied in TPS. The company emphasizes waste
minimization to maximize process efficiency and capacity utilization. Thus,
Toyota supports business efficiency and cost-effectiveness in its process and
capacity design.

Location Strategy:
Toyota uses global, regional and local location strategies. For example, the
company has localized manufacturing plants in the United States, China and
Thailand, as well as official dealerships in all markets except Mongolia and some
countries in the Middle East and Africa. Thus, Toyota addresses this strategic
decision area of operations management through a mixed set of strategies.

Layout Design and Strategy:

Layout design in Toyota’s manufacturing plants highlights the application of lean

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manufacturing principles. In this strategic decision area of operations management,

the company aims for maximum efficiency of workflow. On the other hand,
Toyota dealership layout design satisfies the company’s standards but also includes
decisions from the dealers.

Supply Chain Management:

Toyota uses lean manufacturing for supply chain management. In this strategic
decision area of operations management, the company uses automation systems for
real-time adjustments in supply chain activity. In this way, Toyota minimizes the
bullwhip effect in its supply chain.

Job Design and Human Resources:

The company applies The Toyota Way and TPS for this strategic decision area of
operations management. The firm emphasizes respect for all people in The Toyota
Way, and this is integrated in HR programs and policies. Also, Toyota has training
programs based on TPS to ensure lean manufacturing practice.

Inventory Management:
In addressing this strategic decision area of operations management, Toyota
minimizes inventory levels through just-in-time inventory management. The aim is
to minimize inventory size and its corresponding cost. This inventory management
approach is covered in the Toyota Production System.

Scheduling:
Toyota follows lean manufacturing principles in its scheduling. The company’s
goal for this strategic decision area of operations management is to minimize
operating costs. Cost-minimization is maintained through HR and resource
scheduling that changes according to market conditions.

Maintenance:
For decades, Toyota developed a network of strategically located facilities to
support its global business. The company also has a global HR network that
supports flexibility and business resilience. Thus, in this strategic decision area of
operations management, Toyota uses its global business reach to ensure optimal
and stable productivity.

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RECOMMENDATIONS
& CONCLUSION
In conclusion, therefore it is strongly recommended that highly competitive global automobile industry
as well as scarcity of resource has leaded to development of an innovative and effective manufacturing
system, which is very flexible and responds to the changing need of the customers. The operations
management system of Toyota has helped in reducing cost and improved the overall production system.
it can be implied that the Toyota production system is customer focused for achieving competitive
advantage. Toyota Motor Corporation improves on the quality check processes of its products in order
to ensure that defective products can be identified and modified before being sent out to the market.
The major aim of the Toyota Production System is minimize defect and reduce cost of production.
Toyota has already achieved higher productivity through implementation of different operational
management approaches. Image and brand loyalty is big advantage for Toyota Corolla large number of
loyal customer they trust on Toyota corolla due to its performance reliability and comforts. Toyota
corolla is one of best car in world who meets 40 million units sold all over the world since its production
that this is proof of customer loyalty and various awards achieved.