Question

Need Toyota information by topic

-pull-push strategy , just-in-time

-production

-outbound and inbound logistic

Answer 1

The Termoil in every industry brought huge impact to the economay at large , the most affected one is the Automotive Industry which is fluctuating day by day, Global motor-vehicle production continues to fluctuate, a dramatic declining growth rate in 2011 upturned slightly in 2012 but is significantly lower than 2010. Overcapacity in Europe has increasing shifted production out of Western Europe. Meanwhile Asia, led by China, has gradually expanded its global production share, as has North America, where vehicle production almost doubled during the last 4 years.

In 2012, commercial vehicles production growth rate, driven mostly by North America, trailed passenger cars, but analysts expect commercial vehicle production to bounce back in 2013. Moreover, global production of motor vehicles is expected to be less volatile in coming years even if growth rates will be more moderate given anticipated upward trends in oil prices.

In all this scenario still we are hoping to see the splurge in Automotive Industry which required new age strategies and something out of the box ideas. Maximizing profits in today’s business world can prove to be a tedious task, especially when the logistics of the Companies / Supplier/ OEMs aren’t fully up to par. When considering the demand for certain products in the market, it is pertinent to understand that projected demand often does not correspond with the actual or consumed demand. Push vs pull, two models of manufacturing which should be taken into consideration with utmost planning and srategy for making out profit.

In a push system, companies manufacture their products based on predicted demand which can often fail to correspond with the actual or consumed demand, this inaccuracy can cause a huge impact on the company’s budget. An excess in inventory, and the associated required storage space would might create havoc for this.  However there are some advantages to a push method. A business which implements a push method will only in rare cases have to worry about a lack of inventory and some time customer discontent in terms of standard, nature and calibre. Under a push system, businesses and their retailers have the advantage of predictability in their supply chain. This sense of predictability allows the retailers to plan ahead of time as of how to store the product and organize the merchandise accordingly.

A pull method which was implemented by Toyota eliminates the theory of Push mthod, An excess in inventory is not possible since the manufacturing process is only put into work when pull signals are given. These signals are given when actual demand occurs, a customer purchasing a car for example sets the manufacturing chain back into motion so that stock can be replenished accordingly. A pull strategy, like implemented by Toyota, also allows for a single piece flow or a one piece flow system. A one piece flow system eliminates the bulk production, the need for batch sizes, and lot production since only one product at a time is being worked on. This of course is an unrealistic model for manufacturers that produce low cost products such as foods or toys and so forth, however for car manufacturers such as Toyota this can prove to be a quite lucrative and time saving procedure. The single piece flow system additionally cuts unnecessary expenditures such as the need for space caused by excess inventory due to overproduction. This lean manufacturing model also allows a company to reduce the costs of labor associated with space acquirement, and stock handling significantly.

Just in time method = Toyota began using the Just-in-Time method from 1938, the founder of the Toyota Kiichiro Toyoda, founded this concept , the objective of this method is basically" “making only what is needed, when it is needed, and in the amount needed.”

By using this method Toyota produces vehicles based on the orders they received, in this production process the company uses its supply chain in such a manner that only the parts that are needed to manufacture vehicles are received on time. Thus, the manufacturing and transportation of parts take place simultaneously. This allows Toyota to minimize its inventory of vehicle parts.

Now a days this production process has been widely used by many large Industries which is quite successful in its implementation and overall application which saves transportation cost and inventory cost.

Inbound and Outbound logistics =   

Being the big player in its industry Toyota has its certain norms of planning and manufacturing all the parts.

In inbound logisctics , Toyota doesn't manufacture smaller parts like tool, light, head lamp, Tail lamp, handle, steel parts, and many more , they basically rely on the third party supplier or 2 tier / 3 tier companies but when it comes to peculiar machines its is dependet on Japan for quality point of view and to maintain the standard it has set.

Outbound logistics - under this Toyota manufactures the vehicles and directly sent to the dealter either based out of inland or any region.