In this era, most of the companies are working on product innovation in the automobile sector. The company now focus on improving the working structure of the company. Many of the companies are working on this direction. Company like Toyota are recognized for the creativity in the products for getting more consumers attractive on this way. There is the need to make the new and innovative products s that company can have core competence in the products. This is also helps to make them salable(Jeston and Nelis, 2014). The automobile sector is one of the largest manufacturing industry in the world by volume, capital, employees and annual turnover. Toyota is a brand which recognized as a global one so that company can take the competitive advantages over the others. Company’s operation in more than 170 countries, which producing above than 5.5 million vehicle per year as company has broken the traditional contra
1.1 key functions and processes of Toyota and evaluate the dependencies and interrelationship:
Toyota company brings the innovation and creativity in the products what they offered to the prospective consumers. Now the company emerged a trend in the auto-mobile industry to invent new things in their products so that more and more consumers can attracts to their products. General motors is the first big company which covers almost 1/3rd auto-mobile industry stake in the passenger car segment. Toyota emerged itself a new revolution in the passenger segment and now company add new edition in cars to make them environmental friendly. As company's main policy is to give a innovative and eco-friendly products that produce least emits. Company main policy is consumer oriented. The company production system is to people and consumer directed, this is followed since many years in their routine work(Zairi, 2012). Toyota production system has bas basically three desired results which are mentioned hereunder:
Toyota's main aim is to give a consumer vehicle which contains highest safety standard features, at reasonable price, within a short time frame delivery.
Company also provide a great atmosphere for their employees, and give them job security and also keep in minds the employees safety standards at workplace. So that they can feel associated with the organisation.
Company's production system also give flexibility to react to the market. Company also get the profits by limiting the cost via cost limiting techniques and sustainable prosperity.Company continues to keep going in a direction where it can eradicate the waste, overburden for providing the consumers a smooth and effective workplace(Achtenhagen, Melin and Naldi, 2013). The base of the Toyota production system are framed on status to ensure a hassle free method of operation and a regular approach to quality. Toyota quality management team is required to enhance the standard procedures to get the supreme quality and romve waste. This is known by the name 'Kazian', and this is used in every departments of the company.
1.2 the methodology applied to map processes on the organisation’s goals and objectives:
Process is the term which is used to transform the input to output. The company's main task is to convert inputs effectively into outputs. Inputs covers- labor, machines, equipment, land, buildings, raw materials. While output is the final products which is made after processing the inputs. Company's processing system is also used to evaluate how the organisation make final products which are required to meet the consumers desire. It is not relevant whether a company is for profit oriented or for the social welfare, entire firms main motto is to increase the quality of their transformation process. Company map all the processes which is ultimately connected to the attain the long term goals and objectives of the firm.
1.3 Critically examine the output of the process and the purpose of a quality gateway in the Operations department of Toyota:
Company's outputs are prepared after taking the due and reasonable care in the processing activities. Toyota main aim is to make in their output best feature which is considered after taking the large overview in the projects from the general public. Company is continuously striving very hard to get the industry best mileage in their vehicle this will also give the competitive advantages among the competitors(Closs, Speier and Meacham, 2011). Now, consumers are very choosy, and majority of consumers selects the vehicle which is safe from the environmental points of view. Some companies accept the change via enlarging their small car businesses and expanding into the generation of hybrids electric motor vehicle. Toyota's working culture is to provide the better outputs that will ultimately providing quality assurance to them.
2.1 Develop an operational plan to promote collective goals and objectives by applying MBO:
Management by objective is framed to enhance the management processes which is ultimately aimed to achieve the long terms goals and objectives. This is also concentrated on assisting team members to know the individual roles and responsibilities they perform and how their work contribute to the firm success. Management by objectives concentrates to assist the team members to evaluate and priorities efforts to make clear those efforts which are focused on the bottom line and firm value. The MBO process also assists company's team to know what the firm doesn't value and what may not need to do anymore. This activity is called as “Activity trap”. It is like when company is so hectic doing things that company did not remember to ask whether what company is doing is the right thing. This is crucial thing for everyone in the firm to know. Supporting to clear hoe the activity trap occurs and how MBO is framed to aid company's employees to know the target of making work which the team members do efficiently(Closs, Speier and Meacham, 2011).
2.2 Five SMART (Specific, Measurable, Achievable, Realistic and Time-based) objectives:
Company's goals setting is one of the most toughest task ever for such individuals who did not contribute in make objectives. The with the help of S.M.A.R.T. Tool, company can set company's long term objectives. This has been defined in details:
- S for specific: there are various key components which should be included in the objective framing. Objectives must be specific.
- M stands for measurable: This is required to be specific in details. With the help of review process, company would able to use the objectives. It must be very clear whether the individual get the objectives or not.
- A for achievable: the next key factors to fix the objectives in such a way that they can attain.
- R for realistic: realistic objectives are the objectives which identify factors that can not be managed. As, they are so challenging but can be achieved.
- T for time based: this is the last component of goal setting. This is used in management by objectives setting. The impressed date is the date for future review. When the employee will be responsible for the commitments which they have created for their objectives(Davenport, 2013).
2.3 Use appropriate systems to attain goals in the most effective manner:
There are basically many systems which are used in the Toyota to to attain goal and objectives effectively. Management information system is the system which totally has altered the physical structure of Toyota to meet local networks and divisional integrated systems. It is also make the procedures to give company's management at every levels and in entire works with adequate information from the appropriate source and to make them to take effective and efficient decisions for planning, directing, controlling and evaluating the tasks for which they are responsible. There a key task for the management is to make the effective planning by which the quantity and quality of information gathered would be appropriate to satiate its requirements.
While on the other hands, financial accounting system is the key component of the entire management information system framework. As, this is only focusing on the internal balancing books to create ledger and other financial accounting system. Like- accrual arrangement reconciliation and rectifying entries used to rectify the financial accounting systems to the general ledger does not always get into the other management information systems.Company's one department can able to get the information with the help of automation which may lead to save the time of the departments for searching and all. With the help of management information systems every department is interconnected to each other, this is also help the company to boost the efficiency of their employees. With the help of such systems company is able to improve the efficiency of their departments and due to this they can achieved the set objectives of the company.
2.4 Types of organizational controls as well as the control process:
Control is the process to mange the thing in a most effective manner. Control can concentrates on events or incidents before the process, during the process and after the process. Like- a local automobile vendor can concentrates on the the certain tasks before, during and after sales process(Zang, 2011). A detailed investigation of new cars and careful opting of sales representatives are the certain ways or manner to ensures high quality and profitable sales even before those sales take place. Similarly, Toyota also need to have eyes on the activities which had occurred before the company operational processes, during the processes and after the processes. A close monitoring of sales people activities during the sales activities. Such kinds of monitoring are called feed forward, concurrent, and feedback.
3.1 The theory of ‘Total Quality Management (TQM)’ philosophy by stating how this TQM philosophy:
Total quality management is the regular process of limiting or eliminating the errors in manufacturing, smooth running supply chain management, enhancing the consumer experience and securing the employees are up to speed with their training. Total quality management purpose is to hold entire parties including in the production process which are responsible for the entire quality of the final outcome or service. The quality management tools could be applied to entire divisions in an organization. It also assist entire company's members who are working towards the set objectives and goals of the organization and enhancing roles in each department. Covered departments can cover management, marketing, production and members training(Hope and Fraser, R., 2013). With the help of total quality management, company can improve the performance of the organization.
There are six ways by which company can improve the performance of Toyota. These are mentioned here under:
1). Commitment: Entire employees of the company is required to have the improvement commitment. If a better TQM culture is to be emerged in the firm then quality efficiency should become a regular part of each job.
2). Culture: The firm need to emerge and opt a new culture for the quality improvement on continues basis. Training is must in the firm for making changes in the culture and attitudes.
3). Consistent improvement: There is also need to have the regular development in entire policies, procedures and activities which had been made by the top level authority for the company.
4). Cooperation: For enhancing performance, company need to follow the cooperation policies among employees.
5). Consumer: for the sustainable development of the firm, there is need to concentrate on consumers desires.
6). Control: There is need of powerful control fro monitoring and evaluating the genuine performance of the firm. Documentation, processes and alertness of present best practices are the important aspects if TQM functions properly.
3.2 Promotes and implements a Total Quality Management culture in Toyota businesses:
In last few years, firms efficiency has pull specific attention in practical and theoretical areas. Apart from the total quality management, there are so many areas, which have contributed to the emergence of available knowledge, namely organizational theory,finance, strategic management, project management, operation management. Organizational effectiveness is the most searched subject from the previous phase of emergence of Organizational theory(Reich, Gemino, and Sauer, 2012.). Firms efficiency and performance evaluation are the inner parts of entire management processes and has covered management accountants via use of budgetary control and growth of financial signals like return on investment. TQM is a platform for firms to increase their competitive advantages. However, there so many firms which are not happy to the extent to which TQM has been connected with the continuous growth in the firm efficiency. Performance management systems are the foundation of human resource management policies and also are the base for emerging system oriented approach for firm efficiency. Performance management system offer a connection between firms and employee set objectives via goal setting process and later on connect employee goal action to diversification of HR management decisions via performance management process .
3.3 Recommend improvements which align Toyota’s objectives and goals:
Toyota company need to make the improvements in the company's goals and objectives. Business Process Re-engineering is the model by which Toyota can make the changes in their strategies, operations, and system to perform better financial results and consumers satisfaction. As, this assist the company to restructure the production and operation process for providing better product or service in a least amount of period of time, swiftness, quality and cost. BPR can only be done by the previous incremental and analytical methods. BPR model is the success factors which lead to successful results for the re-engineering plan, if these are adequate then they will assure competitive growth for the firm. BPR components are confirmly linked to the aim and strategic goals of organization and project(Stahl and et. al., 2012). While the mission and goals are completely based on the purpose and what need to be attained, BPR components completely focus the crucial factors.
3.4 Wider implications of proposed changes within Toyota company:
Toyota has made Kaizan which is the heart of the company's production system. Such as entire mass production systems, the Toyota procedures needs all works operations to clearly explained and standardized to assure utmost quality, get rid off waste and enhance efficiency. Toyota employees are having an accountability for not adopting strictly these standardized work directions, along with that there is also need to evaluating their consistent improvements. It is clearly a basic thing – as this is clear that inherent deficiencies or troubles in any procedure would be obvious to those closest to the process. The routine improvements which members make to their working activities and equipments are recognize as Kaizen(Agha, Alrubaiee and Jamhour, 2012). The term Kaizan has a broad meaning is as a regular efforts for improvement at each practices of the company from the common manufacturing process to serving the consumers and the broader community.
From the basis of above-mentioned research, it has been found that the company need to make the dynamic strategy so that it could be changed or replaced during any contingency events. Company also point out the operational plan so that company can get their goals and objectives. Toyota company also emphasis to control or measure the performance of the production processes. So that company could overlook all production related issues. Company also apply the proper risk assessment tools and techniques so that firm can make the solution to face out the risk in the company.
- Jeston, J. and Nelis, J., 2014. Business process management. Routledge.
- Zairi, M., 2012. Measuring performance for business results. Springer Science & Business Media.
- Achtenhagen, L., Melin, L. and Naldi, L., 2013. Dynamics of business models–strategizing, critical capabilities and activities for sustained value creation. Long range planning. 46(6). pp.427-442.
- Closs, D.J., Speier, C. and Meacham, N., 2011. Sustainability to support end-to-end value chains: the role of supply chain management. Journal of the Academy of Marketing Science. 39(1). pp.101-116.
- Zang, A.Y., 2011. Evidence on the trade-off between real activities manipulation and accrual-based earnings management. The Accounting Review. 87(2). pp.675-703.
- Davenport, T.H., 2013. Process innovation: reengineering work through information technology. Harvard Business Press.
- Hope, J. and Fraser, R., 2013. the Budget. Budgetierung im Umbruch?. 1. p.71.
- Reich, B.H., Gemino, A. and Sauer, C., 2012. Knowledge management and project-based knowledge in it projects: A model and preliminary empirical results. International Journal of Project Management. 30(6). pp.663-674.
- Stahl and et. al., 2012. Six principles of effective global talent management. Sloan Management Review. 53(2). pp.25-42.
- Agha, S., Alrubaiee, L. and Jamhour, M., 2012. Effect of core competence on competitive advantage and organizational performance. International Journal of Business and Management. 7(1). p.192.