Toyota Operations Management

Company Introduction

            In Australia, Toyota Motors has established a manufacturing plant in Altona which is based in Melbourne. The Altona manufacturing plant is the only plant within the whole of Australia (AP 1991, p. 31). The Altona manufacturing plant has been dedicated to producing an array of Toyota models such as Camry Hybrid, Camry and Aurion. The Australia plant undertakes its manufacturing operations in a state of the art setting that integrates a synchronized process of machinery. From painting shops to assembly shops which are designed to produce motor vehicles customized for the Australian local market (AP 1991, p. 23). 

The Altona manufacturing plant has the ability to produce numerous units of motor vehicles and meet the demand in the local market. For instance, in the year 2011, Toyota Australia recorded a total production of 93,617 vehicles and 54,206 engines from the Altona manufacturing plant. Toyota has proven to be a roaring giant in the automobiles manufacturing world.

The plant produces approximately 100,000 Cambrid, Cambrid Hybrid and V6 Aurion cars widely known for having high quality standards as well as superior performance every year. The Camry and Aurion brands are the most sorts after by clients from overseas with half of their production every year being shipped to 13 markets in the Middle East, New Zealand and the pacific Islands. This is credited to improved designs and improved performances of these engines. Teams that design these engines have dedicated themselves in producing reliable cars that are high performing, delivers driving pleasure, fuels economy and with low emissions (Steele, Wysk & Ferreira 2008, p. 46). For instance, in the year 2010 Toyota Australia built it is first locally designed hybrid vehicle, the Hybrid Camry. This successful design marked a significant breakthrough in the Australian automotive market being the first of its kind in more than a quarter of the century. This design has boosted morale of the Altona engineering team and plans to a build a hybrid version of every model across its range. After engines are manufactured, the head to the assembly point ready for mounting in the bodies which are also internally manufactured.

The Altona plant handles most of its assembling manually though they also use robotics. Robotics mostly handles the lifting and welding parts though some of them welding require outright attention by people (Cusumano 2011, p. 49). The company has 145 welding workers on dayshift and the same number of them on night shift. This plant has provided employment to many people across the country and internationally hence the massive number of production. In the year 2011 alone, it was able to manufacture 93,617 vehicles and 54206 engines. These statistics, this plant has proved that it has been successful, economic friendly car.

Concepts of operations management are applicable in to service and manufacturing oriented industries (Steele, Wysk & Ferreira 2008, p. 51). There is no better company that would serve as a good example in the maximization of productivity for Toyota other than the Hard Rock café. This company has branches in more than 40 countries and enjoys more than 100 joints in these countries. The company has come up with strategies and evaluation techniques that enable them to evaluate what their consumers’ needs through all their outlets. Had rock has been able to collect data at their outlets and determine the optimal capacity of products to hold in their stores (Haig 2011, p. 96). They have been able to maximize on quantity discounts by using forecasting tools to determine their customers’ arrival times. They also initiated a project aimed at harmonizing their relationship with their manufactures intended to reduce operational costs and still be able to give their consumer exceptional quality at the right time. If Toyota came up with such an initiative in reducing their operational cost and determine when their cars would be on demand, they can be able to maximize their productions others than finishing their orders just on time.

Toyota’s Mission and Core Competencies

Since its foundation in 1937, Toyota has been committed to manufacturing cars and other robotics (Shingō & Dillon 2004, p. 46). In general, the vision of the Toyota Corporation is to provide the safest as well as means of transportation the world through constant innovative developments with respect to the world’s course of nature. The mission of the Toyota Corporation is to produce reliable and effective vehicles in respect with their demand quantity and quality wise.

Operation strategies

Toyota Motors Corporation has recently embarked on expansion strategies in other regions where they are targeting new markets and factories. The corporation has targeted more European markets, North America and also in Australia (Haig, 2011 P. 72). Other than vehicles manufacturing, it is hoping to introduce other services like issuance of credit cards for easy and quick pay for their products in order to counter excess liquidity by banks nowadays. With the wide range, of cars and world class engineering capabilities that Toyota has to offer Schild, K, & (Bussmann, 2007, p. 47). It stands to gain even in areas where its competitors have gained ground.

Competitive advantages of Toyota

Toyota Motors Corporation has managed to build its popularity and build a large customer base through different unique qualities which I will now address. It has managed to sponsor different events across the globe including involving itself in the motorsports world. This has been attainable through different unique capabilities that the company finds pride in like; diversification in the products that the company has to offer, hybrid engineering technology used in its productions and markets awareness in the international market.

This however does not rule out the opportunities Toyota has in its expansions projects. With its plans in building hybrids for every model they have within their range, they have a chance of become the world market leaders since the world is now moving with growth in technology. The company also has a well organized distribution and servicing network that can be extremely efficient in its plans of penetration the world markets if well coordinated. With this network in place it means they can be able to introduce and market new products in the world market with ease.

Every expanding company whether small or consequential faces some factors that threaten its day to day operations and Toyota Motors Corporation is no different. It is fairy challenged by the presence of new entrants in the car manufacturing business with better features in designs and at substantially lower prices. There is also massive competition among car manufacturers in the world market leading to saturation. Some of these competitors are also offering better innovative features in the market at relatively low prices cutting on their gains for the same.

Having analyzed this company’s expansion strategies and strengths outlined above, I think this company stands in a better position in becoming the world leaders in this business other than any other of their competitors.

References

AP 1991, company NEWS; Toyota Australia', New York Times, 27 July, Academic Search Premier, EBSCOhost, viewed 4 October 2012.

'Along the Road with Toyota' 2010, Time, 175, 7, pp. 28-29, Academic Search Premier, EBSCOhost, viewed 4 October 2012.

Bayari, C 2012, ‘Australian economy and neo-liberalism: manufacturing, trade and bilateral links with Japan in the post-Keynesian age’, Berlin, Lit.

Cusumano, MA 2011, 'Technology Strategy and Management Reflections on the Toyota Debacle', Communications Of The ACM, 54, 1, pp. 33-35, Academic Search Premier, EBSCOhost, viewed 4 October 2012.

Drysdale, P & Farrell, R 2002, ‘Japanese multinationals in Australia: employment policies and industrial relations’, 1990-97. Geneva, International Labour Office.

Shingō, S & Dillon, A 2004, ‘A study of the Toyota production system from an industrial engineering viewpoint’, Cambridge, Mass, Productivity Press.

Schild, K, & Bussmann, S 2007, 'SELF-ORGANIZATION IN MANUFACTURING OPERATIONS', Communications of the ACM, 50, 12, pp. 74-79, Academic Search Premier, EBSCOhost, viewed 4 October 2012.

Steele, J, Wysk, R, & Ferreira, J 2008, 'A resource-oriented tolerance representation scheme for the planning of robotic machine tending operations in automated manufacturing systems', International Journal Of Advanced Manufacturing Technology, 38, 7/8, pp. 741-756, Academic Search Premier, EBSCOhost, viewed 4 October 2012.