Understanding key operations, logistics and supply chain management in Toyota Manufacturing Motor (U.K) Ltd (TMUK). - Essay Prowess

Understanding key operations, logistics and supply chain management in Toyota Manufacturing Motor (U.K) Ltd (TMUK).

Understanding key operations, logistics and supply chain management in Toyota Manufacturing Motor (U.K) Ltd (TMUK).

  

Introduction to Operations Management, logistics and supply chain management

Operations are specific ways in which certain ways in which optimal output is established from a broad range of input sources. This may either include offering various services or even manufacture of physical products. Therefore, these operations need to be managed as well and mastering their basis is essential in attaining business goals. Similarly, operation management (OM) entails supervision, organization, and planning of processes to establish a broad range of improvements to facilitate company’s profitability (Handfield &  Nochols 2010). The improvements carried out in a specific firm have to go hand in hand with the support of the firm’s strategic goals. OM has emerged as one of the multidisciplinary functioning areas in companies in combination with marketing and finance. 

OM must ensure that labor and materials or any other type of inputs are used effectively to maximize organizational output. OM goes along with a broad range of disciplines like equipment maintenance and general management (Handfield &  Nochols 2010). Operations managers have to be aware of the company’s production and control principles as well as being able to control industrial labor relations for proper results. Logistics entails all the activities that are carried out within a single organization. Some of these activities include; maintenance distribution, inventory management, procurement among other activities. In a nutshell, logistics entails getting that one appropriate product to the target market, in the right quality and quantity, in the right time and place. On the other hand, supply chain management refers to the entire network of firms that work together to deliver products in the markets. (Handfield &  Nochols 2010) Supply chain management (SCM) involves activities like customer service, financing, marketing as well as product development.

Introduction to the company and introducing the two chosen topics

This paper describes the Toyota Motor Manufacturing (UK) Ltd (TMUK). This is a United Kingdom’s manufacturing company. It is a locomotive industry that directly contributes to Britain’s earlier economic development and growth. TMUK was developed in December 1989 following Toyota’s decision to set up a manufacturing plant in  U.K. UK has two manufacturing plants and they both represent a total investment of € 2.5 billion (TMUK 2018). The two plants have about three thousand members and are both designated as the vehicle manufacturing plant and the engine manufacturing plant. The engine manufacturing plant is located at North Wales at a place referred to as the Deeside while the vehicle manufacturing plant is located in Derbyshire at a place referred to as Burnaston.

TMUK produced its first car Carina E in 1992. Generally, this company manufactures and designs vehicles and produces a variety of models like sedans, compact cars, and coupe. Also, the company manufactures HSD vehicles, Auris and Avensis for both UK markets and global exports as well (TMUK 2018). The company values social work and has contributed to the society promptly through its social contribution program. Therefore, it has donated more than €5.5 million to its locals, organizations, and charities.  This paper analyzes two areas; the first is the management of business relations in the TMUK’s supply chain the second is that of quality management at TMUK.

First choice of topic and corresponding theories/concepts.

Management of business relationships in supply chains.

Relationships often play significant roles in supply chains and if they are not managed well, negative consequences are expected to be attained all the way from suppliers to the clients. Relationships ought to be managed and at the same time kept at the center of the supply chain management. Observing proper relationships are as well important as they aid in establishing collaborations and effective dynamics (David, Philip & Edith 2011). Most importantly, buyers that are able to work well with their suppliers observe a significant step that ensures that new rules and regulations are complied with. In that kind of a relationship, transparency is enhanced because suppliers are always in a position of granting their customers access to more information. Another significant point to note is that TMUK was among the first European locomotive companies to be established and this places the company at a better place of being preferred by many suppliers (TMUK 2013).

TMUK has an effective procurement policy which relies on three primary criteria. First, the company observes fair competition within and outside the company. Fair competition is assured through the use of an open-door policy. Second, as part of relationships management, the company ensures that mutual trust is attained which leads to the establishment of mutual benefits in the long run (David, Philip & Edith 2011). The third criteria is that TMUK is always ready to work with the most competitive and the best partners like the BMW. Moreover, TMUK collaborates with other logistic partners to ensure that delivery of materials and all parts required in manufacturing is attained efficiently. Also, delivery is attained through a process called milk run where products are delivered in service picking up places through the use of multiple suppliers to enhance industrial production (TMUK 2013). The company has invested in supplier parts with it having about 260 parts and in addition to this; it has about eight hundred suppliers in both plants.

The company is committed towards the establishment of long-term and mutually beneficial relationships. The types of relationships found in this company must ensure that mutual trust is upheld. To ensure that trust is attained in the company, wide-ranging and close communications are encouraged to ensure that business knowledge is passed from one member to another. The company regards partnerships with its suppliers and through this, the company’s commitment to its stakeholders is confirmed (TMUK 2013). The company must be functional through the use of joint efforts that end up minimizing chances of producing superior quality products. TMUK is always committed to the provision of stable and fair working conditions to its workers and this focuses on establishing a potential relationship that leaves business performances enhanced. TMUK tries to provide a dynamic and harmonious working environment where none of the employees is discriminated and this fosters productive relationships. The company cooperates and values teamwork to attain objectives and tasks efficiently (TMUK 2013). Additionally, TMUK promotes local procurement and production and it is as well engaged in social activities

The company disregards business transactions with family members in other companies. Moreover, TMUK ensures that it remains independent from any other company perceived to have a contractual relationship with it and it ensures that it does not transact or invest with any company that has a close relationship with it. The company disregards any act of accepting favors and gifts as far as business transactions are concerned and it supports business transparency. Suppliers are often encouraged to implement and adopt socially responsible policies (TMUK 2013). Another aspect that makes relationships management in this company be at its best is the respect of each country’s history, customs, and culture. In this regard, the company acknowledges the interest of local residents and communities to ensure that they achieve their best.

TMUK’s primary aim is to become an internationally regarded corporate and trusted company. Thus, to ensure that this is achieved, it must ensure accurate information is passed and good relations are observed with the locals. A reputable organization is always at its best place to attain customers’ trust. The local communities are supposed to be involved in the company’s programs and events for them to share issues, raise critics as well as exchange ideas of solving problems (David, Philip & Edith 2011). The company stresses the use of discriminatory language and it always stresses on reviewing any post documented in media platforms to ensure that it expresses Toyota’s views. Finally, TMUK communicates with investors to promote mutual understanding and in a timely manner to ensure that business activities are well managed.

The second choice of topic and corresponding theories/concepts

Managing quality in TMUK

Quality management entails all the process that ensures that all the products and services are consistent. Quality management also focuses on how quality can be achieved and has four main components like quality control, quality assurance, quality improvement, and quality planning. In any given organization, quality must be overseen to maintain all the processes at their desired levels. Quality management (QM) is also referred to as the total quality management (TQM). QM must make use of short-term initiatives to implement and focus on its long-term goals. TQM claims that the long-term achievements of any firm must be directly associated with clients’ satisfaction.

TQM encourages all the stakeholders to work together to attain company, products, services and processes improvement (TMUK 2013). At TMUK, all the members are committed to building quality to every process of vehicle manufacturing. TMUK must ensure total quality control is attained and to achieve it, it must work together and at the same time, it uses visual controls that help in identifying significant problems and making it easy to spot them. The main thing that makes this company successful is that every member of the company takes it as their responsibility to ensure quality work is attained through choosing not to pass on poor quality to subsequent manufacturing processes. All the members of this company are well trained about quality observation and in cases where unusual occurrences are witnessed; workers have responsibilities of stopping the processes (Sainathan 2013). After manufacturing procedures, the manufactured products are scrutinized with great care for their functions and key features and this helps in confirming vehicle’s quality as well as the efficiency of production processes used.

TMUK Company is strict on quality and ensures its quality assurance is carried out based on three principles. The three principles help in defining the company’s policy. The first principle is that customer’s expectation acts as the determinant of the quality needed to be observed in the industry. The second principle is that quality must be observed at every manufacturing stage. The third principle makes use of the Kaizen strategy that argues that quality must be continuously improved. Moreover, the company has an effective quality policy bearing in mind that its primary aim is to attain customer satisfaction in the long run. The company ensures that quality is attained since it is directly proportional to customer satisfaction (TMUK 2018). Customer satisfaction is the significant strategy to attract a broad range of other potential customers as it also applies to other people that observe the results of the company’s efforts.  All this is attained through the mentioned quality principles whenever possible and have proved effective as they have been used over many years.

The first principle of customer expectation and determination of quality has been put into considerations in TMUK. This is because all the quality standards used in this company are directly linked to what a normal client would expect but not what manufacturers would expect or experience. The company seeks to satisfy its customers and in the process, it ensures that statutory requirements are met as well as minimum quality standards and at some point, it aims at exceeding them. Additionally, the company must measure its achievements and all this is done through the use of shipping quality audit. Second, the company must ensure that quality is observed in every step of manufacturing. To achieve consistent quality, the company used the TPS system (Sainathan 2013). Moreover, all the company’s stakeholders are required to observe the quality and remain responsible for their own processes. This means that members are supposed to remain on the lookout not to pass on poor quality to subsequent steps. Additionally, the company’s quality standards are reviewed frequently and reviews are solely dependent on customer’s experiences and feedback. Reviews are carried out to determine that customers’ expectations are identified and met.

Alternatively, TMUK makes use of the kaizen principles to identify the root cause of a problem if need be and to minimize the chances of a similar problem recurring. Also, kaizen assists in the constant improvement of the quality management system. TMUK attempts to attain new quality target through the use of teamwork and creativity as well as working together with the suppliers. TMUK is committed to the production of products that exceed customers’ requirements (TMUK 2018). Also, the company relies on its effective logistics system that ensures an efficient and reliable supply of high-quality materials and parts. Processes are as well confirmed by subjecting the vehicles in a test track circuit. Also, operational standards are as well revised and reviewed depending on the current situation.

Triple bottom line

Triple bottom line (TBL) is a type of business accounting framework that described three dimensions of performance. The three dimensions are financial, social and environmental. TMUK has kept the environment in check through the establishment of the 360 percent approach.  The 360 approach is to ensure that environmentally-friendly vehicles are produced beginning from its designing stage all the way up to end process where it can be recycled at the end. Also, the 360 approach ensures that vehicles are produced in sustainable and environmentally-friendly facilities. The final vehicle products are as well monitored in terms of positive environmental and social impact. The company minimizes the operation’s environmental impact through the use of minimal amounts of water, energy and a minimal amount of wastes is generated (TMUK 2018). Also, Toyota perceived global environmental protection as one of its first priorities. The Toyota production system has been used over the years and has proved to have positive consequences on the environment.

Economically, TMUK has is a prominent and successful company and this places it in a better position of penetrating and being involved in available business opportunities. All the economic trends in this company are meant to have an impact on organizational development. Also, Toyota basically benefits from large economies of sales both locally and internationally. In the future, TBL is supposed to consider some of the opportunities being presented by the developing economies (Hopp & Spearman 2009). Focusing on the social dimension, we find that TMUK is committed to ensuring that quality products are produced and this always have a direct impact on locals and to customers at large. The aspect of maintenance of proper relationships in the company is crucial as a social aspect. Moreover, the company has a public visit program that enables customers, locals, and businesses to visit the plants and learn more about the company.

Recommendations

TMUK is a recommendable automotive industry following the fact that it has significant strategies to keep the environment in check. Would recommend TMUK to continue observing environmental conservation which is essential for human, environment, and life at large. Another recommendation is that the company should seek to improve its operations and its market presence as well as trying to exploit a broad range of opportunities for economic benefits. Finally, the company should seek to establish collaborations with other automotive companies to enhance its market share and profitability.

Conclusion

TMUK is one of the U.K‘s most successful automotive plant and its success has been directly associated with the company’s regard of quality. The Company is committed to producing quality products through the use of its TQM programs and approaches as well as proper use of logistics approaches. Moreover, the company observes health relations with its stakeholders, suppliers and its employees and this has been one of the reasons behind its success in combination with employee’s responsibility and that are some of the reasons why it is most preferred as the best automotive company.

Reference list

David, Philip & Edith, 2011. Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. Irwin McGrawHill, 2011.

Guide Jr. & Jayaraman 2016. “Product acquisition management: current industry practice and a proposed framework,” International Journal of Production Research, vol. 38, no. 16, pp. 3779–3800, 2016

Hopp W.J. & Spearman M.L 2009. “Factory Physics: Foundations of Manufacturing Management”. Irwin, McGraw-Hill, 2009.

Handfield &  Nochols, 2010. Introduction to Supply Chain Management. Prentice Hall, 2010.

Sainathan 2013. “Pricing and replenishment of competing perishable product variants under dynamic demand substitution,” Production and Operations Management, vol. 22, no. 5, pp. 1157–1181, 2013.

TMUK 2018. Toyota Manufacturing UK. [online] from  http://www.toyotauk.com/environment/. On 5th Sep 2018. TMUK 2013. Toyota code of conduct. [online] form http://www.toyotauk.com/toyota-in-the-uk/our-people/code-of-conduct.html. On 5th Se