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Global Operations Strategy - Toyota

This solution is focused on operations management questions. It explores the relationships between lean manufacturing and business strategy and the importance of both while using Toyota and a case study called "Toyota: The Accelerator Crisis" as its basis for consideration. Other study material used and referenced in this solution are:

Porter, M. E. (1996). What is strategy? Harvard Business Review, 74(6), 61-78.

Toyota: The Accelerator Crisis (2010) by Greto, Schotter, and Teagarden

Chapter 6: Russell, R. S., & Taylor, B. W. (2011). Operations management: Creating value along the supply chain (7th ed.). Hoboken, NJ: John Wiley & Sons.

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GLOBAL OPERATIONS STRATEGY AND PROCESS SELECTION IN TOYOTA
Review the library article "What Is Strategy?" by Porter (1996) and the case study Toyota: The Accelerator Crisis (2010) by Greto, Schotter, and Teagarden (You've already read this one.)

Describe the four basic types of production processes defined in Chapter 6 of your Operations Management: Creating Value Along the Supply Chain textbook. What are the advantages and disadvantages of each? When should each be used?

PROCESS SELECTION Pg 229-230 Chapter 6

The four basic types of production process are:
1-Projects, 2-Batch production, 3-Mass production, and 4-Continuous production.

Projects are generally very long in duration, cost a lot of money. This is the type of process that would be used in areas such as new plant or process start ups, construction, etc...

Batch production is a process in which multiple things are occurring throughout the production cycle to lead to a desired outcome such as meeting a customer order for a specific product. Batch production can be very complex and may not be the best method to use for just in time orders or other streamlined and time constrained processes. This process should be used where greater flexibility exists.

Mass production is based on the principle of producing a large and massive amount of a specific product that is in demand by consumers. Generally there is little variation and a lot of stability in the process and this consistency allows for long, sustained, large volume runs. This is idea for use in a repeatable process that is done in mass quantities.

Continuous production is used for sustaining extremely high volume production runs with very little variability and generally very standardized. This type of production is typically heavily automated and runs 24/7/365 to meet a heavy demand for the product. Food, chemicals, water, etc.. are examples of where one would use a continuous production process.

Porter (1996) claims that "operational effectiveness" is not a strategy. Why was operational effectiveness such a focus at Toyota? What are the downsides of "lean manufacturing?"

For Toyota, their culture has long been rooted in cutting costs and gaining competitive advantage through challenging the norm and seeking out operational effectiveness or improvement. Improvements to Operational effectiveness are derived through making improvements at specific areas in ...

Solution Summary

This solution is focused on operations management questions. It explores the relationships between lean manufacturing and business strategy and the importance of both while using Toyota and a case study called "Toyota: The Accelerator Crisis" as its basis for consideration.

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