Toyota Strategy essay

This method has resulted in reduced stocks which have made it possible for Toyota to respond to customer demands, and produce quality products more efficiently. Kodak – auto activation is aimed at delegating the responsibility of the production to the factory workers to ensure the highest quality of service when manufacturing an automobile. It is Toast’s believe that their T AS system allows them to flexibility respond to changing customer demands with product efficiency and low production cost.

Introduction Toast’s global vision is to achieve quality assurance by leading the way into he future through innovation and corporate responsibility. Utilizing their self-developed system Toyota Production System, the overall objective is to eliminate waste while improving productivity and efficiency of their manufacturing plants. For over fifty years, Toyota vehicles have found their way to over 1 70 countries and regions throughout the world (Toyota- globalization. Com, 2014).

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After doing necessary research online or otherwise, document and evaluate the current distribution of Toyota production facilities in North America. Toyota believes in order to maintain its highest level of quality; their vehicles would be produced where the demand exists with the same level of quality no matter where the manufacturing plant is located. Among the hurdles that must be overcome is quality assurance. To maximize the revenue of from sales of manufacturing plants in North America, the selection of the production site is important.

The location must be in proximity of its supplier to allow Toyota to bring its products quickly into the market. Toyota has implemented a lean production environment which reduced manufacturing time, lower cost, increased revenue, increased customer satisfaction, increased work culture, and increase productivity. Using its TAPS system, Toyota has presented itself as a formidable competitor as this system has advantages by reducing the manufactures time, lower costs, increased earnings, decreased space requirements, increased productivity, waste elimination, customer satisfaction, and strong organizational culture.

Toyota intends on increasing its manufacturing plants in North America adding additional products to its core vehicle line that roll off of the assembly lines in the U. S. , Canada, and Mexico (www. The attributed . Com, 2012). Why does the team believe Toyota has chosen to produce its cars for the North American market in the current manner? Toyota announced that it would add 3,500 jobs in North America in addition to increasing its capital investments to 1. 6 billion.

This move is Toast’s attempt to deal with exchange rates which have played a critical part in their strategy. The U. S. Dollar value dropped slightly and has recovered somewhat however, this can make it costly to import vehicles from the home market as well as dealing with disasters like the tsunami that struck China in 201 1 These setbacks had a direct impact on Toast’s ability to meet the customer demand as these areas are responsible for many of the parts and components used by various automakers.

Toast’s profitability margins dropped during this time causing the automakers raking to fall. Toyota established 63 dealerships in Mexico in 2001; all supplied by one manufacturing plant which accounts for 800 employees and 2 billion pesos. This move is likely an attempt to capture market shares from its competitors GM, Ford and Honda. Establishing dealerships in Mexico allows Toyota to cake advantage of tariffs and taxes as they are within the borders of North America. Although Toyota has a vast fleet of automobiles, over 70 percent are manufactured in North America.

Manufacturing plants are spread out among three countries which have aided in Toast’s product diversification and profit. Producing cars in North America provides Toyota with increased efficiency and cost effective initiative as resources are readily available versus obtaining resources from other countries such as Canada and Japan. This also keeps down the dependency on these products as cost can be high to import icicles. Recommend any changes that the team believes appropriate in the distribution of Toyota production facilities in North America.

Establishing additional manufacturing plants in Mexico will benefit Toyota as they currently have plants in Texas which is a neighboring country. Toyota already has employees in establishments in both countries which equips them with the ability to freely move products without penalties according to NONFAT (2015). Increasing productivity in Mexico would benefit Toyota as they could use their facilities in Texas to aid the in overall development while ultimately saving in cost associated with importing and exporting.