Operations management Essay Example | Topics and Well Written Essays - 2500 words

Operations management - Essay Example Some brands offer luxury other offers sturdiness. The presence of company in different countries also creates many problems. The operations of Toyota are susceptible to political and economic fluctuations. Because of the dispersed manufacturing the company faces different problems in different countries. The problem of competitors and safety issues rise regularly. The recent safety issues with Toyota cars caused significant financial issues to the company. There are issues regarding location of retail showrooms and supply chain management issues. The company follows Just in Time inventory system (JIT) in which management of supplies is extremely important. Also with different safety rules, manufacturing regulations, tax legislations and environment concerns in different countries Toyota faces many operational challenges and this paper will discuss these challenges with great detail. The strategies to address these issues will also be discussed in the paper. These possible solutions m ight help Toyota Motor Company solve its operational problems. Key Operational Challenges faced by Toyota The automobile industry all over the world is facing problems due to economic recession and environmental concerns. Toyota faces multifaceted problems due to its presence all over the world. Design issues, pricing and product development issues are the main operational challenges Toyota is facing today. ... 2005). Usually there are teams that work on new products as a whole but in Toyota teams work on subsystems like hardware, software and suppliers. Then all these subsystems are combined to form a new product. In this way the development process is speeded. The problem in this system arises with regards to the suppliers. Product development cannot be completed if suppliers are not equipped to supply different parts that are needed to develop the new product. For this reason supplier development is also necessary. This is an operational challenge for Toyota as it is very difficult for development teams and suppliers to be on the same page. Suppliers are to be trained and they should be equipped with proper technology in order to ensure that they are able to meet the demands of the newly developed product. This is a serious challenge for Toyota. Because of supplier issues inventories of Toyota are increasing and storage cost is also hiking even though Toyota is famous for its Just in Tim e inventory system (JIT). Toyota will have to rely on suppliers because it is not feasible to develop everything on their own but supply chain management issues are also a major challenge even for a big company like Toyota. Complexity Problems in Toyota The complex products of Toyota are a problem. The manufacturing units are dispersed all over the world and because of this sophisticated technology have to be made available everywhere. Alongside making complex products for its diverse clientele Toyota also has to manage its worldwide sale. The complexity problem becomes an operational issue when a car is developed and the technology used in the car is not available in some of the manufacturing countries. Now in order to make similar cars in those countries the technology is required