This is advantageous for the automotive manufactures as they are able to increase the knowledge about the market as well as their profit share from the sale and services of their vehicles. However the dealers and the distribution agents lose out on the deal as their share of the revenue passes on to the manufacturer.
For a realistic and proper Toyota Production System to be implemented into the automotive industry through lean operations and just in time approach, it is crucial to have adequate information system and communication technology set up in place on the supply china management system. this is because the vendors, the suppliers, the manufactures, the logistic service providing companies as well as the dealers and distribution agencies need to contact with each other on the status of the shipments and the scheduled deliveries that need to be made on the just in time, need by need basis. The lack of integrative information technology leads to discrepancies sin the operations of the different parties on the supply and value chain which can lead to increased costs and no efficiencies from the approach taken for lean operations.
Another issue that has been faced by the automotive industry in the recent past has been the shortage of the highly skilled workers in the market. The Toyota Production System requires presence of highly skilled workers. Where such are not present the companies are to train and develop their workforce to be specialized and skilled in terms of their specific jobs. However, if this is being followed by only a few companies in the industry, then this leads to high level of employee turnover. The solution that has been derived for the resolution of this problem is the use of highly technical artificial intelligence based robotics at the production level. This tends to reduce the need for the highly skilled workforce for the automotive companies.
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