For any organization to strive very hard and achieve its desired goals, it is imperative that such an organization should develop some management strategies and methodologies through which it can be able to realize its dreams. Based on this fact, some factors or evaluation principles have been identified to assist companies to survive or withstand their shortcomings and changes that might arise during the course of their production processes.
The duty or function that Logistic and operation Management is required to perform within an organization is to ensure that the right goods and service are produced. Other functions of logistics and operations management within an organization are to ensure that the goods produced get to the final consumer on time, and not just that but to also make sure that the right people are assigned the right duties and as a result maximum output is obtained from the service of the employees. In general Logistic and Operations Management encompasses all the processes that are carried out in order to produce goods and services.
The Toyota Company
The Toyota manufacturing company is a company that is acknowledged for its remarkable achievements in almost all areas of organizational management. It is a company whose manufacturing processes are so efficient that it is at the top of the competition in the industry. It is a company that is known for its complete and useful utilization of available materials or resources for its production processes. Over the years the company has worked very hard in building its reputation and as a result anything that is likely to destroy this hard earned reputation is totally avoided. In as much as most of the companies around the globe have allowed some limitations to cripple their systems, since this limitations are considered by them to be basic in nature, the Toyota company leave no stone unturned by ensuring that, their problems are vividly tackled (Samuel,2007).
As demand increases considerably, the company’s management board through proper evaluation, has foreseen the need of incorporating other expert hands into their production process in order to meet up with the excessive demands from the masses. Based on this nagging situation, the company’s management has decided to engage the services of Lean Production Company. The basic job of the Lean Production Company is to enhance the production of Toyota products in large quantities of some particular brands of the Toyota products, since the Toyota Company alone cannot meet up with the demands of the masses at the required time. The Lean Company operating under the Toyota Company, also follows its trend and basic objectives by ensuring only products that are synonymous with the quality of Toyota products are sent in to the market (Singh et al, 2008).
Lean, in its strive to maintain the standard of the base company, took into cognizance the important factors that could help sustain the quality and standard of the base company by ensuring proper cost control measures which are known to constitute the basic elements that make a company have an edge over the others in the labor market or competitive environment. Since the labor market is known to be highly competitive, it is therefore the task of the Lean Company as well to assist the Toyota Company in maintaining their standard and meeting up with the other competitors. Based on the above responsibility handled by the Lean company, one would be in no doubt that the company has a lot of benefits to offer to the base company ( i.e. Toyota company).some of the benefits rendered by the Lean company includes
- Enhanced level of manufacturing.
- Advancement in the quality of goods.
- Changes positively the rate of turnover.
- Enhanced taste of the consumers.
- Better distribution network.
- Better staff-company relationship.
- Increased profit margin
For every company to sustain its relevance and to remain in the pipeline of operations, there is every need or tendency for that company to be continually updating its technology which it employs in carrying out its production processes. This entails bringing up new initiatives into the production process that can help it compete favorable with the competitors in the market (Sarah, 2009).
Some of the process technology innovations include: the production of products that are personal i.e. products that can only be accessed by the customer for whom the product is been designed for. Also other process technology techniques which can be of paramount importance is, ensuring that the communication link between the company and the customers is continuous. This can be achieved through the global connection of the company through the internet so that customers can have access to the company easily and at their own convenience. Also, since the target customers are globally distributed all over the world, provisions should be made in such a way that sales and purchase of the company’s products can be effective through the internet.
Based on the issue of the provisions of internet services, the system should be made in such a way that it can be accessed by all the customers. In view of achieving this goal, communication companies can also be of help in tackling this problem. This communication firms can achieve this goal through the combination of their network services and the usage of some electronics gadgets like the modem. Arrangement can be made with these communication firms relating to how the billing process can be evaluated so that both of them can’t be operating at a loss.
The inventory management is another factor of utmost importance which must be considered for the proper management of the Toyota company manufacturing process. It incorporates both the production and retail sectors. This aspect of production process entails the control of products been manufactured in the company. It is basically concerned with the monitoring and regulation of products been kept in the stores (Doowuese, 2003).
This is made possible through manufacturer-retailer network, in this process, the retailer who is closer to consumers than the manufacturers, carries out the necessary assessment of the market and adequately informed the manufacturers about the nagging situation. Been informed about the present market condition, the manufacturer now device means of controlling its production process, and at this point knows the quantity of products to be released to the market, thereby minimizing the rate of damage that would have been imposed on the products. This operational principle is also very important in that, it provides the company with adequate potentials in classifying the various brands of products that are toping the chart in terms of profit making through which the company is able to identify hierarchy of product sales.
The term logistics operations can be defined to mean or entail different things depending on the context under research or study, but considering our research work, logistics operations can be defined to be basically concerned with the planning, organization and control of ideas of the management and their subsequent implementation. In order to maintain the standard of the Toyota Company, there are a lot of huddles which are needed to be crossed in order to achieve the company’s basic aims. One of such challenges is to ensure that, all the members of staff of the company that are involved in field operations and those been newly recruited in the various departments had acquired the basic training or experience needed to carry out such jobs.
Another important factor which must not be left out is to ensure that the policy makers of the company had better policies to render so that the urge of the company achieving its goals can be realized. For global organizations like Toyota, treating the issue of logistics and operations on a shallow bases will not be healthy enough for the company’s foresight and thrive, based on this fact, a detailed analysis and concern of this subject have to be taken into utmost consideration. Various factors have been identified to be important in giving a detailed discussion on the subject matter; some of the factors include the following:
Logistic Control of Cost
The logistic control of cost is a very vital tool that must in employ in the analysis of the Toyota’s company’s product. This is justified based on the fact that, in as much as attention is been given to the aspect of trying to minimize products been stocked in the company and enhancing the supply channels, producers are still spending a lot of money and resources in conveying and maintaining these products. Based on this effect, it has become necessary for the company to device means of controlling cost.
For the company to achieve its goals, the cost of some sensitive areas of the company have to be controlled, areas like initial plan schedule of production of production and re-construction requirements of the product will be of paramount importance. When the initial plan schedules of the company are appropriately implemented, greater output is obtained against fewer resources been input into the production process. Various schools of thought in this related field under study had conducted researches and revealed that, the initial plan schedule of production is the period during which the first product is been manufactured and the changes that accompanied its production process. Companies like Toyota which are globally connected, would want to reduce cost by all means so that the company can be at greater advantage in terms of its profitability margin (Attia, 2004).
Rigorous Security Techniques
Another important factor that can be of utmost importance in carrying out logistical operations is ensuring rigorous security measures. When this logistic operational technique is employed, it tends to minimize the waste that is usually associated with the distribution process and increases the assurance of goods been secured.
Establishing Cordial Relationship with Suppliers
Another strategy is by establishing a cordial relationship with the suppliers, through this means; the company can be able to develop strategies that will help them convince their suppliers so that a reasonable percentage of money can be deducted for every purchase made, and by so doing, cost can be drastically minimized (Luter,1998).
Good Transportation and Supply Network
Another vital point or factor which is considered by the company in reducing cost is ensuring good transportation and supply network. Through this means, the company is able to supply out to his customers the product been produced and by so doing, the company’s turnover is greatly enhanced which leads to it achieving its target or desired goal. The above goal cannot be achieved without some factors been put into consideration, one of the factors includes proper arrangement, this is necessary so that provisions are been made to deal with unforeseen circumstances that might emanate during the course of operations (Nabem, 2005).
Importance of quality
Before we will go into stating the importance of quality, it will be imperative for us to have a basic understanding of the concept or the key word. Various researchers from the various schools of thought had conducted researches in this related field and came up with the definition of the word quality to mean the general standard or grade of something. It is obvious that, it is not easy to come up with products and services that are of high quality, therefore in order obtain high quality products and services, it is imperative to put into place proper quality control measures that can be used to ensure that products and services obtained are of the desired quality.
When the aspect of quality is adequately tackled, it is seen that the company stands to benefit a lot as it enhances its turnover rate since most of their customers now discovers that the products from that company are of higher quality whose reliability is certain, and as a result increases its profit margin as well. In striving to achieve products and services of higher quality, Toyota succeeded in higher minimizing their production time and cost at the same instance (Aza, 2002). As a result of the achievement obtained above, they were able to make waves in the world economy and this help them a lot by raising their profile in the labor market and this also assisted the company in becoming one of the biggest company in the universe to be reckon with.
It is presently one the companies having the largest number of turnover and is known to be the world leading manufacturer of cars in this recent dispensation. The Toyota company ,through its profitable innovations, it has succeeded in impacting positively on other companies whose production line is quite different from theirs , in essence , it now portrays itself as a model or a kind of consultant to other companies, thereby increasing its chances of becoming the best company in subsequent dispensation (Moses,2009).
Based on the analysis of the various companies’ management practices, it can now be stated that, most of the companies that indulge into business in this present dispensation carry out their operations on an agitated and constantly changing platform. This platform onto which companies carry out their plan executions is known to be constantly changing as result of the dynamic variations associated with the technical approaches or techniques been employed, a lot of operators in the labor market who are fully prepared to run the race with other operators, taste of consumers, and other factors too numerous to mention.
In order to remain in the pipeline of operations, it is imperative that ,companies develop some strategies in view of adapting to the strict and harsh condition prevailing in this recent times and provisions should be made so that when such situations arises, they can still be able to advance to the next level. Operations relating to product and services of the company should be strictly placed under supervision and amendment if the need arises. This is aimed at ensuring good quality while operations and other services sustain their continuity.
Another basic factor which have to be considered for a successful business operation is to ensure an organized distribution channels through a proper and accurate management practice. The distribution channels or the supply chain should be made up of an organized collection of the human labor, techniques employed and manufacturing stages that ensure the processing of materials into finished goods.
In the actual sense, the supply chain entails the processes of production right from the utilization of materials, usage of workers, machineries, and other business ideas that help achieve desired goods and ensuring that they conform to the customer’s specifications ( Terder, 1997).
This is of paramount importance because, any deviation from the desired quality or set standard will render the whole of the production sections useless and this will in turn have some harmful effects on the company. Therefore, in order to avoid this undesirable outcome , it is very important to make sure that proper supervision of all the resources and stages of production are been closely checked so as to avoid discontinuity of supply along the line.
In the same vein, the rapid increment in the cost of conveying and supplying products is not a condition that cannot be tackled, in dealing with this kind of problem, proper methods of cost minimization and the entire organization of ideas of the system should be higher utilized. These principles cannot be achieved except the board of management implements ideas and strategies that can positively contribute to the growth of the company.
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