Theories and Techniques
Just-in-time (JIT) is a manufacturing and inventory strategy that companies use for increasing efficiency and decreasing waste by receiving goods only when they are needed in the process of production (“Just in time – JIT,” n.d.a). Toyota Production System (TPS) is based on making vehicles that customers order in the most efficient way for delivering them as quick as possible (Toyota, 2017).
TPS aligns with the ideas of just-in-time inventory and lean. Lean manufacturing is an approach that is based on finding the most efficient approach for removing any wasteful steps that do not add value to the end product (MT Team, 2017). All three concepts are related in a way that they enable manufacturers to focus on efficiency and removal of waste without compromising the quality of the end product. On the bright side, JIT, TPS, and lean reduce inventory costs; on the downside, it requires manufacturers to be extremely accurate when forecasting demand.
With regards to Toyota, just-in-time, TPS, and lean encouraged the company to pull materials forward when they were needed, with components produced and received in small lots. On the other hand, the overall system was not risk-free (Schmidt & Simchi-Levi, 2013). For instance, if there were disturbances in the information or material flow, the manufacturing stages can be significantly undermined.
Sustainability
Triple Bottom Line (TBL) is an accounting framework that includes tree performance dimensions: social, environmental, and financial (Slaper & Hall, 2011). Three Ps are the dimensions of the TBL: people, planet, and profits (Slaper & Hall, 2011). To enhance operations management in Toyota, the management should address its three dimensions.
First, there should be a shift of focus on the fair treatment of employees by enacting favorable practices. Second, Toyota should implement sustainable practices and reduce its environmental impact. Such practices can range from recycling programs to the usage of only sustainable materials (“Triple bottom line,” n.d.). Third, the company should align its financial bottom line with the sustainable practices and social responsibility since the largest consumer demographic is willing to pay for sustainable goods (“Triple bottom line,” n.d.).
The ISO 14000 standards provide manufacturers with measurements for dealing with their environmental impact by integrating the environmental considerations into the production process. With regards to Toyota Motor Corp., the company identified hundreds of substances and chemicals that the suppliers must not use in their manufacturing process (Gilbert-Miller, n.d.). The alignment with the ISO 14000 standards allows the company to follow the Triple Bottom Line framework to promote the agenda of sustainability and social responsibility to show customers that Toyota cares about reducing the environmental impact associated with the process of vehicle manufacturing.
Integration of corporate social responsibility in a technology-oriented company comprises of knowledge exchange with customers, maintaining sustainable agreements with suppliers, developing employee code of conduct concerning ethics and knowledge dissemination, protecting the interest of the company with regards to protecting the corporate government decisions, and creating a social action plan to benefit local communities (Guadamillas-Gomez, Donate-Manzanares, & Skerlavaj, 2010).
Among the mentioned principles, exchanging knowledge with suppliers and customers is the most effective since it will allow the company understand the demands of the public with regards to vehicle manufacturing and get an idea about what suppliers can and cannot do to adhere to the practices of environmental sustainability and social responsibility.
References
Gilbert-Miller, S. (n.d.). ISO 14000 becomes a prerequisite for suppliers to stay in the game. Web.
Guadamillas-Gomez, F., Donate-Manzanares, M., & Skerlavaj, M. (2010). The integration of corporate social responsibility into the strategy of technology-intensive firms: A case study. Proceedings of Rijeka School of Economics, 28(1), 9-34.
Just in time – JIT. (n.d.). Web.
MT Team. (2017). Lean manufacturing: Working more efficiently. Web.
Schmidt, W., & Simchi-Levi, D. (2013). Nissan Motor Company Ltd.: Building operational resiliency. Web.
Slaper, T., & Hall, T. (2011). The triple bottom line: What is it and how does it work? Web.
Toyota. (2017). Toyota production system. Web.
Triple bottom line. (n.d.) Web.