| Toyota Production System is built on three factors: | | | | suppliers and suppliers also prefer this organization |
| enhancing production process, logistics management | | | | because of its standards maintained in handling them |
| and employee loyalty. Procedure of manufacturing is | | | | were good and they service offered is satisfactory. |
| planned and a step by step process is planned called | | | | Focusing on production process is first done by |
| short plans where all the resources are assembled | | | | Toyota where started a new philosophy of |
| well in advance before the next step begins. Logistics | | | | implementing a step by step procedure for |
| management describes about the supplier | | | | production to minimize errors and totally eliminate |
| relationships with the organisation. It also focuses on | | | | waste during shaping of the product. Elimination of |
| the delivery of goods to the customer. Employee | | | | waste completely during manufacturing of product is |
| loyalty is the important factor which is implemented | | | | the aim of Toyota. Short plans are encouraged |
| successfully where employees are given freedom and | | | | because long planning with high durations consumes |
| responsibility to perform work according to the | | | | lot of time, resources and machinery. All the |
| defined procedures. Toyota follows a procedure | | | | machinery is engaged with one activity and it results |
| where every employee is asked for suggestions and | | | | in lapse in time. It increases idle time of man and |
| most of these suggestions are implemented in the | | | | machinery. Also the machine stops working whenever |
| organization process. This increases commitment and | | | | a problem is encountered protecting from producing |
| confidence in the employee's capability and the | | | | defective products. As soon as the machine stops |
| efficiency of the workers is calculated high. | | | | working the problem is identified and the cause of |
| Logistics management is another factor where the | | | | the problem is known and rectified immediately. After |
| relationships of suppliers and product delivery system | | | | rectifies the problem the machine functions normally |
| are redefined. The importance of relationship | | | | and a thorough analysis is done to understand the |
| between the supplier and the organization is | | | | root cause of the problem. Thus, Toyota Production |
| improved which resulted in timely delivery of quality | | | | System and its defined procedures contributed in |
| materials. Supply chain management is a different | | | | producing world class products in the automobile |
| subject which gained lot of importance over a period | | | | industry. It is today is one of the successfully |
| of time. Delivery of raw materials in time and the | | | | implemented philosophies in quality management and |
| task of assembling of new parts of the machinery is | | | | it became the first organization to emphasize on |
| done with the help of good suppliers. Toyota is also | | | | quality than quantity. |
| known for maintaining good relationships with | | | | |