Importance of Effective Operations Management in Achieving Organizational Objectives of Toyota
Toyota Motor Corporation is an automobile manufacturer originally from Japan. The company's headquarters is located in the city of Toyota. For the first quarter of 2012, it claims to have sold more vehicles than any other manufacturer. Toyota builds different vehicle models. Toyota work is divisible into four periods corresponding to four areas of activity. Specifically, from 1985 to 1989 Toyota worked in the automotive field, then from 1990 to 1995 Toyota has launched new means of transport (marine, aerospace). The main objective of operations management in Toyota is to improve the efficiency of operations, reduce the reject rates in production and reduce the cost of production. The company has used various quality initiatives such as the following:
Six-Sigma
Total Quality management
Statistical Process Control
All these methods aim at continuous improvement and to measure and monitor the cause of the defects. In this case we discuss about the importance of operations management and the various quality tools used by Toyota Company.
Operations Management
Operations management is the designing, operating and improving of the systems of a company which create, as well as, deliver the primary services and products of a company (Garcia, pp.37-38, 2009). It is not a simple but a unique set of complex activities which are the heart of the management functions of planning, organization, leading and controlling, as well as, monitoring. Operations management is involved in the management and business of the company right from the process of production, till the time the product or the services reach the hands of the customers.
The Six Sigma Core Process: DMAIC
The Six Sigma methodology that the company use and is implemented in the company is the "DMAIC "cycle (Define - Measure - Analyze - Improve - Control). This is a project-and-loop approach. The DMAIC core process is used in already existing processes to make them measurable and lasting improvements (Mishra & Sandilya, 2009).
Six Sigma Yellow Belt
This training provides a good overview of the Six Sigma methodology and its tools. The Yellow Belt training is a qualification scheme for employees and team members to improve team and for entrepreneurs who want to develop a comprehensive understanding of the structure of Six Sigma. Six Sigma Yellow Belts feature an overview of the approach and Six Sigma DMAIC projects according to the method.
Experts are called from different parts of the world that provide the training. They make sure that the employees and managers of the company receive the best possible training that can make them increase the quality in the company and help in maintaining their position in the market.
Short-term and long-term benefits are in any style of management. Total Quality Management gives some short-term benefits, however, most of the advantages of this approach are long-term, and their effect is noticeable only after their safe implementation (Kemp, 2006). In large organizations, it may take several years before the long-term benefits will be given ...