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Operations Management of Toyota and Dynisco

University: LONDON SCHOOL OF MANAGEMENT EDUCATION

  • Unit No:
  • Level: High school
  • Pages: 6 / Words 1405
  • Paper Type: Essay
  • Course Code: LSME404
  • Downloads: 438
Question :

 This assessment will cover following questions:

  • Toyota is one of the largest auto mobile manufacturer in the world. Provide an operations process appropriate to a specific organisational context including the use of Just-in-Time and Total Quality Management principles.
  • Use knowledge of layout planning and work system processes in a business organisation.
  • Evaluate the importance of inventory management policies for controlling production costs
  • Prepare a plan for using operations scheduling techniques when organising work.

 

Answer :

INTRODUCTION

Kanban System

This can be referred to as the process of rationalization of a product cycle by setting up of supply and operational standards to achieve just in time production effectively (Fettermann and et. al., 2018).   

Just In Time

This is defined as operating the production cycle specifically for current demands and necessities in a frequent time period.

Total Quality Management

This is deciphered as the constant participation of each and every organizational representative in the production process to ensure the efficient quality of a product (Ivanov, Tsipoulanidis and Schönberger, 2017).

Topic Covered

The following essay is based on Dynisco and the manner in which the above-described systems are put to use within the manufacturing procedure of this organisation to achieve operational efficiency.

BODY

Identify and Discuss the key Elements in the Kanban’s Operation process

The operational procedure of Kanban consists of 6 elements as per the case study.  which are listed below:-

  • Production at every process is levelled with respect to volumes and specifications of products
  • Production line with shorter setup time
  • Minimising/ eliminating the production of defectives
  • Preventive maintenance
  • Observation of operation standards
  • Abnormalities can be easily identified

Out of these elements, 2 of the primary ones are described below as follows:-

Observation of Operation Standards:

One of the key components of Kanban system as applied within the confines of Toyota is gaining an insight into the operational standards as devised by the management of the organization. Operational standards are laid down so as to make sure that business practices are performed as per the requirements of corporation (Thürer and et. al., 2019). This element provides assistance in ensuring execution of performance as per the set standards.

Abnormalities can be easily identified:

Yet another crucial element pertaining to the Kanban system is quick determination of abnormalities as existent within the confines of a company such as Toyota. This renders aid to the organization in taking corrective actions through which these can be dealt with, in an effective and efficient manner.

Evidence of Application of Kanban system within  Dynisco

Overall production process

Dynisco is a well renowned and established firm engaged in execution of plastic extrusion processing along with the production of a mercury free pressure sensor. The company executes a number of stages with a view to carry out the process of plastic extrusion. The procedure is explained as follows:-

  • Raw plastic is put in to hopper together with additives as well as colours and all of them flow through the extruder.
  • The beads flow from hopper to feed throat down to the spinning crew inside a barrel.
  • The beads then flow via barrel and get heated at a specific heat temperature. Till the moment, it reaches the tip of screw, plastic gets properly mixed.
  • The extruded form of plastic then moves from a screen along with breaker plate. This makes the plastic ready for die.
  • The die makes the plastic flow smoothly from extruder to shape of profile.

How they use Kanban System to Improve Productivity of the Production System

Dynisco streamlined administration of their wide vendor networking through  execution of SyncKanban™, a pull based stock refilling framework from Synchrono which led to decrease in their active stock by approximately 40% within the organisational premises. In view of Lean and Just-in-Time (JIT) standards, SyncKanban programming enables producers such as Dynisco to react in a flash to alterations taking place in terms of demand at market while keeping up negligible stock. The system is able to do so through adjustment of stock levels with utilization in real time, imparting demand signs to providers for replenishment of parts in accordance with the requirement. Such signs are followed across the renewal cycle, facilitating visibility for producer as well as its vendor (Ketokivi and McIntosh, 2017). While executing this, SyncKanban enables the producers to fulfil extensive demands with the assistance of minimum inventory, thereby disposing off the expenses of overproduction and waste while diminishing administration overheads.

How they use Just In Time to Improve the Productivity of the Production System

Just In Time can be defined as an operations management technique that allows the manager to reduce time taken in a production capacity that increases the efficiency and product quality of company (Lee and Tang, 2018).  It is a manufacturing process that holds adequate level of inventory in order to eliminate the wastage and reduce inventory cost. The manager of Dynisco applies this strategy to maintain enough inventory according to the demand in the market to run the production operation smoothly. The main aim of this organisation is to increase the inventory turnover and reduce the inventory cost (Gibson and Parkman, 2018). Further, the respective retailer also emphasizes upon continuous improvement of merchandise which aids in winning the customer loyalty. As the entity maintains the minimum inventory, it faces the problem when there is huge order of stock as it leads to delay in delivery of finished goods. Through this, Dynisco reduces the chance of spoilage and saves the warehouse cost.

How they used TQM to improve productivity of the production system

Total Quality Management can be referred to as an ongoing process of reducing the errors to provide customers with satisfaction and also ensure that employees are trained. It is a management approach which focuses upon continual improvement of the merchandise that ultimately brings efficiency in business operation (Choi, Wallace and Wang, 2018). Dynisco is one of leading organisations functioning within the confines of plastic extrusion sector. TQM provides assistance to the corporation in decision making for timely accomplishment of organizational goals and objectives. Within the periphery of Dynisco, employees work towards the common goal of examining the quality of offerings and undertaking measures through which enhancement of quality can take place. Thus, TQM inflates the production capacity of the concerned company and enables it to render high quality offerings to customers to gain high satisfaction from them.

Also Read - The Integration of Innovation, Technology and Knowledge Management

CONCLUSION

On the basis of above discussion, it can be said that operations management is a crucial aspect for each and every corporation. In this regard, it is analysed that Toyota and Dynisco apply the Kanban system in order to ensure that work takes place as per the requirements of the company. Further, it has been determined that this system takes into account the approaches of TQM and Just In Time to execute it effectively within an entity, thereby attaining operational efficiency. Apart from this, it is recognised that there are certain elements of Kanban system which should be properly followed so as to implement the system effectually.

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