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  • Essay / Toyota Company Review

    Founded in 1937 by Toyoda Kiichiro, Toyota is a Japanese multinational automobile manufacturer. Of course, Toyota didn't become a leading automaker overnight, it took time to grow. However, the manufacturing system implemented by the company has given it certain advantages. A conventional mass production system involves manufacturing large quantities of standardized products, frequently using assembly line technology. Toyota, on the other hand, had a different approach. They took major parts of the mass production system and implemented changes based on their observations and goals. Their system promotes efficient work while reducing inventory costs and producing more based on demand. They also produced the auto parts in small batches to reduce costs and find a way, through trial and error, to reduce stamping changeover time. This made it possible to produce on demand, thereby reducing overhead costs. Another element of Toyota's process was that workers worked together and were responsible for finding their own errors instead of finding the error at the end of the line; this would make correcting the error more expensive. Overall, Toyota's manufacturing system is profitable and efficient in terms of production, accompanied by better employee relations, quality products and, perhaps most essential for a company, more profits. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay Another tactic that set Toyota apart was its approach to customer relations. The attitude was that of “equal partners”; this attitude influenced the design and production process. Toyota and its partners, suppliers and dealers have a resilient relationship, which allows the company to maintain a dignified relationship with customers. Toyota listens to the wants and needs of its customers. They are so in tune with wants and needs. In fact, they have a database that compiles all the customer's input; The database contains everything from style preferences to car color to car features. By reaching out to the customer and getting their feedback, Toyota is changing the way the industry does things. However, they must ensure that they carry out comprehensive research and development to ensure accuracy. As mentioned briefly above, Toyota has a resilient relationship with its suppliers, with this relationship being essential to their business. Usually, American manufacturers believe that a company is more efficient when it is not dependent on other companies; they tend to keep a large number of parts produced in-house. For parts they can't produce in-house, a series of contracts come in and the company usually places an order at the lowest price. This way of proceeding makes the relationship extremely impersonal. Looking now at Toyota, yes they initially followed this way of thinking due to their limitations. After a few years, Toyota adopted a different way of working because it believed that the initial way of working in a "bidding war" was self-defeating for the company and would not be suitable in the long term. They wanted to avoid the capital expenditures of expanding their manufacturing capabilities, reducing risk, lowering wages, and offering a high-quality product at a lower cost. The result of these decisions led to improved productivity.