Toyotas expansion challenge

Toyotas expansion challenge Introduction Toyota’s massive recalls occurred towards the end of 2009, and the beginning of 2010. Monden (253) claims that 8 million cars were recalled because of sticky accelerator pedals, and floor mats that could trap accelerators. Another defect was anti-lock braking system software found in hybrid cars. Toyota’s tradition has been to pursue safety as the first priority. It is followed by quality, and volume. The pursuit to capture the largest market share did not match available resources.Advertising We will write a custom case study sample on Toyota’s expansion challenge specifically for you for only $16.05 $11/page Learn More Toyota’s success is attributed to the efficiency of its JIT (Just-in-Time) system and TPS (Toyota Production System) which rivals have found difficult to copy. Toyota responded in time to an emerging trend in the global market where people sought cars with efficient fuel consumption. Toyota’s q uality challenge emerged from its expansion into new locations where TPS may not have been fully understood. The strength created by TPS became a challenge to its own new regions. TPS requires many years to understand. According to the article, its strength includes the ability to capture a larger market share by its wide variety of products. They target each social class from low cost Scions to luxury Lexus. It is a good strategy to capture all market segments. However, it lays challenges to developing modifications because engineers have a wide area to cover. It may result to very few engineers being committed to a design. Reasons for higher growth rate than competitors According to the article, Toyota gives customers a wide range of choices. Ability to choose components that a customer would like to be added to his/her car. It captures almost every customer’s taste. The company gains competitiveness by offering over 40 customization elements. Toyota’s continuous inn ovation has been able to increase its competitiveness in the global market. Toyota integrates new designs and the latest software at lower costs which provide the capability to offer competitive prices that rivals fail to match. Toyota is also able to shift products and production where they are mostly needed. Toyota has a history of producing reliable and high quality cars. All these factors have contributed to its fast expansion. Standardization of processes is considered essential in the accumulation of knowledge. Toyota has a system of technical standard registration guidelines which enables the company to develop its own institutionalized knowledge (Hino 179). The company is able to develop unique standards through practice. Toyota’s efficient system has been working on a continuous improvement basis. Harvard Business Review (61) discusses that many companies have been unable to copy the TPS. The main reason is that Toyota’s production method has been developed ov er a long period of institutionalized knowledge.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Other companies cannot adapt them in a short period of time. It takes the company about 20 years to train a T-type manager (Harvard Business Review 26). New managers learn gradually by working at the company over a long period. The company has managed to beat competitors on â€Å"reliability, quality, cost reduction, and even sales and marketing† (Harvard Business Review 60). Its system of ongoing improvements makes it difficult to be copied. The system is learnt only through practice (Harvard Business Review 63). Toyota expanded through managing production costs. Shimokawa (207) explains that legacy costs are not the only causes of North American automotive companies’ failure. Legacy costs include items such as insurance, and retirement benefits. The companies faile d to respond to global trends such as energy efficient vehicles. The companies did not see the need to modify their engine technology to match consumer needs against rising fuel costs, and environmental concerns. Ford and GM relied on mass production for efficiency for a long period without seeing the need for modification. One model is manufactured for a long period to make inventories before shifting to another model (Shimokawa 207). According to the article, Toyota’s system allows for several models to be manufactured simultaneously. Toyota invented the Just-in-Time lean system. It reduces inventories by producing only what is needed, and when it is needed. Part of Ford and GM higher costs were associated with maintaining high inventories. Manufacturing a car brand for everyone Hino (176) discusses that Toyota was able to expand by adapting a product mix policy developed by Sloan who was the GM manager. The policies include a strategy to arrange products by price from low- priced cars to luxury cars. It also requires the automobile to avoid ultra-luxury cars that could not be produced in large volumes. The company was to maintain small gaps between product prices. The company was also to avoid manufacturing products with similar prices (Hino 176). Toyota was able to succeed mainly by applying these ideas more accurately than GM, the company for which they were developed. By producing a brand for each group, Toyota is able to compete with GM. It could not have made the same growth without applying Sloan’s theory. By reducing gaps between products arranged by price, Toyota hinders rivals from placing a product in between. When a rival launches a product in between the prices, it may be able to cut the upper and lower segments into halves.Advertising We will write a custom case study sample on Toyota’s expansion challenge specifically for you for only $16.05 $11/page Learn More However, by developing a car for each group, its engineers are spread over a wide range of products. It reduces attention to detail. Teamwork is also reduced to a few individuals working disjointedly to modify or design parts. Toyota on Porter’s five forces Toyota appears to be more competitive than rivals using Porter’s Five Forces. Using Porter’s Five Forces for analysis (Hill Jones 43), Toyota appears to have a close partnership with suppliers. Pressurizing them to reduce costs, and maintain high quality standards. Suppliers have weak bargaining power if the customer is large such as Toyota (Hill Jones 55). Customers’ strong bargaining power is reduced by Toyota’s ability to develop cars at the lowest cost possible, and applying the latest technology. Efficiency in fuel consumption came at the right time, when the world was facing high fuel costs, and a recession. By creating a car for each group, Toyota has reduced the effect of substitutes. Entry into the automobile industry is barred by the high cost of entry. TPS requires many years before it is understood. It has limited the ability of other firms to adapt to TPS. It provides Toyota with a competitive advantage. Toyota recognizes that its engineers are trained for many years to adapt to TPS. When competitors were trying to stick to economies of scale, Toyota was developing a system with absolute cost advantages (Hill Jones 44). Firms find it difficult to put into practice Toyota’s low cost structure. Moreover, Toyota is able to weaken competitive forces by its continuous improvement program. It responded to customer needs in a timely manner when competitors were rigid about the type of models they had designed. Toyota’s expansion rate higher than resources Toyota’s engineers sought to design compatible parts for multiple models. Cole (par. 3) analyzes that Toyota sought expansion at the same time pressurized engineers to reduce costs. One part design is used in many models. The ex pansion was also associated with a lot of new software integration. Monden (263) explains that developing software simultaneously with auto components makes it difficult to identify defects. The cause of quality failure can be associated with pursuing too many objectives in a short time. Toyota expanded production spreading its engineers over a wide range of products. Cole (par. 4) discusses that insufficient skilled labor in the engineering section was also a cause of quality failure. Fewer engineers were available to design and test models. The company was losing on the teamwork design. The company was also unable to recruit more engineers because of the amount of time it takes for an engineer to be fully capable of designing products in the automobile industry. Monden explains that â€Å"quick growth resulted in insufficient time for developing quality people† (246). It is estimated that an engineer might need to work for about 10 years to be fully integrated with the syst em. The expertise needed is gained through an accumulation of experience working in the industry or with the company. Toyota’s quality failure can be attributed to insufficient number of engineers to match the expansion.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The integration of software components to help run and drive vehicles also caused the quality failure. Cole states that â€Å"software specialists have low status compared to hardware engineers† (par. 4). As a result of this, automobile industries do not accumulate the high technical skills in the software section. Software engineers would rather work in other industries than in the automobile industry. Toyota’s quality failure can be associated with a high speed to integrate multiple software applications without attracting the technical skills required for the job. It needs plenty of time to integrate a new workforce in a new location into the TPS. Monden (24) discusses that Toyota Productions System (TPS) is unique in its operations. It would take a long period for the management to develop a workforce that can meet the requirements of the system outside Japan. Toyota’s expansion involves setting manufacturing plants outside Japan. Hino (7) describes that the tradition of the company is to give customers free repair in case a model develops problems. In the 1930s, the GI truck developed mechanical problems. Toyota offered free repairs which reduced the mechanical failures that were being reported frequently. Toyota has used the same solution again. Conclusion Toyota appears to have recovered from the negative publicity it experienced between 2009 and 2010 (see appendices). Production and sales are almost to the same level they were before the quality challenges were reported. Japan, North America, and Asia are the key producing areas (â€Å"Figures: Vehicle Production, Sales and Exports by Region† table). In 2012, Japan had resumed production of 8.7 million cars. It is higher than what it produced it 2008 which was at 8.2 million cars. In North America, it produced 1.7 million cars in 2012. It is higher than 1.4 million cars produced in 2008. Asia also shows an increase in production (see appendix 1). When it comes to sales, they have increased as well. In 2008, sales in Japan totaled 1.47 million cars. In 2012, the company sold 1.69 million cars in Japan. In North America sales were 2.44 million cars in 2008, and 2.27 million in 2012. The North American segment has not fully recovered but it has shown signs of recovery compared to 2009, 2010, and 2011 (â€Å"State of the U.S. Motor Vehicle Industry† table). Asia shows signs of complete recovery, from 1.44 million cars in 2008 to 2.34 million cars in 2012 (see appendix 2). From these figures, it appears the response through free repairs, acceptance of blame, and recalls have been effective in keeping the company back on track. Much of the speedy recovery can also be attributed to the company longstanding reputation of producing low cost and high quality cars. Customers find it easier to trust its products once again. The main challenge to Toyota’s expansion rate was the rate at which it could train and integrate engineers. Recommendations Toyo ta is doing well by providing a free repair scheme. It adheres to the lean philosophy of continuous flow of value addition (Sayer Williams 30). Breaking down is a stoppage which is mended by the repair. Sayer Williams recognize that after-sale service is a â€Å"function that creates long-term customer relationship† (286). It creates value for customers. Evans (8) describes quality in manufacturing perspectives as one which meets specifications. By meeting specifications, it means performing the functions it is designed to do without any problem. Toyota should slow down the pace of expansion unless it trains the right size of personnel to handle expansion in multiple dimensions. Toyota has failed to meet quality in the consumers’ perspective. Evans describes quality in consumer perspective as â€Å"meeting or exceeding consumer expectations† (9). Toyota had succeeded because it met and exceeded consumer expectation before the rapid expansion. Toyota should sti ck to its tradition of ensuring safety and quality before volume. Evans describes the situation as â€Å"no quality, no sales† (4). Maintaining high quality has the ability of attracting new customers, and maintaining a group of loyal customers. Toyota faces the challenge of exporting TPS to its new locations. TPS is also considered to be learnt through practice. For it to maintain the same standards, it requires Toyota to transfer part of the experienced personnel to its new location to integrate with new recruits. Cole, Robert 2010. Toyota’s Hyper Growth and Complexity Trap. Web. Evans, James. Managing for Quality and Performance Excellence, Mason: South Western Publications, 2013. Print. Figures: Vehicle Production, Sales and Exports by Region 2013. Web. Harvard Business Review. Harvard Business Review on Manufacturing Excellence at Toyota, Boston: Harvard Business Press, 2008. Print. Hill, Charles G. Jones. Strategic Management Theory: An Integrated Approach, Bos ton: Houghton Mifflin, 2010. Print. Hino, Satoshi. Inside the Mind of Toyota: Management Principles for Enduring Growth, New York: Productivity Press, 2006. Print. Monden, Yasuhiro. Toyota Productions System: An Integrated Approach to Just-in- Time, Boca Raton: CRC Press, 2012. Print. Sayer, Natalie, B. Williams. Lean for Dummies, Hoboken: John Wiley Sons, 2012. Print. Shimokawa, Koichi. Japan and the Global Automotive Industry, Cambridge: Cambridge University Press, 2010. Print. State of the U.S. Motor Vehicle Industry 2012. PDF file. Web.

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buy custom Leadership Skills essay The term leadership can be defined as process of social influence where a person enlists the aid and support of others to accomplish a common task or objective. Leadership can also be defined as the art of motivating a group of people to act towards achieving a common objective. Good leadership requires several attributes that are essential for one to become an effective leader such as integrity, honesty, ability to communicate effectively, and courage among others (Owen, 2007). Leadership as an element of social interaction is a complex activity involving the process of influencing both actors that is the leaders and the followers that has a wide range of possible outcomes for example achievements of goals, motivating the commitment of individuals to such goals, while enhancing group cohesion and reinforcing change within the organization to form lasting organizational cultures. Effective leadership is based on ideas which cannot happen unless those ideas are communicated to the followers in way that engages them. Good leaders are made through a series of process that involve application of skills and knowledge of a leader, through extensive research, study and practices .Leadership involves communicating, inspiring and supervising of the followers by the leader. According to Blake Mouton (1999) leadership requires one to have a set of principles for example being technically proficient, understanding oneself and seeking self improvement, ability to make sound and timely decisions, leading by example, understanding your job and having solid familiarity with your employees tasks among others. The success of a leader can be enabled by application of their knowledge and skills however their personal traits and attributes contribute greatly to their success for example positive beliefs, values, ethics and character are important determinants of ones success. For one to be termed as an effective leader some qualities are important to achieve success in these undertakings. The ability to communicat effectively is paramount in the success of a leader. Effective communication helps promote better human relations and interpersonal skills (Owen, 2007). As a leader one should be able to communicate the goals and objectives of the organization to the followers and thus making it possible to work toward a common goal and also win their trust and confidence. A leader should be able to motivate the followers. This can be achieved by exemplary leading, being a good listener to the views of the subjects in the context of an organization, and should be able to note and complement good work by others so as to motivate them to work harder .For example giving promotions to employees who produce impressive results. Churchill of Britain is hailed for his motivation as a leader and statesman due to his ability to inspire and motivate his people in the opening days of the war (Caroselli, 2000). Integrity is an important trait of an effective leader. Integrity gives one a higher moral standing as one is honest and has a sense of strong internal guidelines. A leader who encourages transparency, leads by example is bound to be successful in their role for they are able to win the respect and cooperation of the followers thus able to achieve their objectives. Being a professional in ones undertakings as a leader would also make one an effective leader. This entails being loyal to your followers, performing selfless services, having good character traits, commitment, integrity and courage among others are important traits in ensuring effective leadership. This helps create confidence in the followers and thus are able to follow the lead of the leader (Victor Philip, 2004). The above attributes of effective leadership help leader to attain the trust and confidence of their subjects. They promote employer and employee satisfaction within organizations. It also helps employees understand the overall business strategy, helping them to contribute effectiively to achieve the corporations objectives and thus acquiring overall success. The ability of a leader to communicate effectively, motivate his/her followers, practice integrity, and act professionally in conducting their roles not only gives then a competitive edge in their work but also earns the respect of the followers and thus are able to motivate them to work towards a common goal. Having learnt that leaders are made, one realizes that it is possible to acquire and develop effective leadership skills through learning effective communication skills and practicing to be an effective communicator so as to be able to be an effective leader. Virtues like integrity selflessness, honesty should be natured so as to train one to be an effective leader .The ability of one to lead by example is of paramount importance as one is able to achieve the respect and cooperation of the followers (Victor Philip, 2004). Understanding the whole concept of leadership is also vital in acquiring and developing effective leadership skills. The understanding that leadership is service to humanity which only succeeds through winning the cooperation of the followers and thus should be engaging and governed by mutual respect is vital to becoming an effective leader (Adair, 1998). Important effective leadership principles should be acquired and developed such as having the dream of leaving the world a better place than one found it, desire to achieve excellence, upholding ethics ,being persistent, understanding ones strengths and improving on them, would ensure success in developing leadership skills. In conclusion, leadership is a broad concept that requires any aspiring leader to work on their personal attributes and also improve on their knowledge and skills in order to be successful. (Zaccaro Banks, 2001). However we realize that leadership cannot be effective if it fails to win the respect of the followers thus leader should strive to win this trust of their subjects. Buy custom Leadership Skills essay

The Effectiveness of Training Care Home Staff on Management of Literature review

The Effectiveness of Training Care Home Staff on Management of Challenging Behaviour of Person with Dementia - Literature review Example As far as dementia is concerned, a recent study revealed that one of the best ways to equip nurses and other health professional with the basic skills and knowledge to carry out their duties effectively is by giving them training and education on how to give innovative and result oriented care to handle some of the most disturbing behaviors from dementia patients (Smithers et al, 2007). This section of the dissertation therefore reviews related literature that touches on some of the key innovative ways of addressing challenging behaviour through training in three major areas as reviewed below. 2.1 Non-Pharmacological Approaches to Managing Dementia 2.1.1 Psychosocial intervention for managing dementia Recent studies have actually pointed to the realisation that training in the use of psychosocial intervention for managing dementia is an effective way of handing challenging behaviour in dementia patients (Cohen-Mansfield, Libin & Marx, 2007). The singular reason for the effectiveness of the psychosocial intervention is in the fact that it is multi-active and thus makes use of several approaches that addresses multi-complexity issues about the patient. For instance as part of the psychosocial intervention, social, individual as well as environmental factors of the causes of the challenging behaviour may all be catered for in one pile (Davison, et al, 2007). In a very modern perspective, this intervention could be judged as highly viable because dementia as a cognitive problem does not associate its cause to just one risk factor. This means that the kind of interventions that are prescribed for its solutions must also well be varying in nature like psychosocial interventions. Indeed, practitioners who receive training and education in psychosocial intervention in managing dementia would come to the realisation that their patients are as much relevant in the solution as the caregivers themselves. This way, the practitioners would not see patients who put up challen ging behaviour as elements of problems that must be avoided but rather as companions for a common goal who should be aided to come to terms with how best they can play their part in the solution. 2.1.2 Individualized interventions for patients Even though most commentators have rooted for the use of standardised interventions for handling problematic patients who exhibit challenging behaviour as part of the dementia symptoms, there continues to be some modern researchers who believe interventions for catering for problematic dementia patients should be individualised (O'Connor et al, 2009). By individualised interventions, reference is being made to that kind of approach that sees each patient among the lot as a distinguishably different person who demands personalised approach to his or her problems (McCabe, Davison & George, 2007). Relating to this training and education for caregivers, it is said that the trainee should first and foremost possess an attitude that recognises the p eculiarity of each person and must have a very huge heart to accommodate all such differences. This means that the trainee ought to adapt him or herself in such a way that he or she would use a kind of communication that meets the understanding of the patient. There should also be practical management strategies that focus on the needs of the patient. Finally, it is important to recognise the need to have enough patience for patients to recover at their own rate. The later is indeed a major