Sample Essay

Unfortunately, most of these efforts represent limited, piecemeal approaches–quick fixes to reduce lead time and costs and to increase quality–that almost never create a true learning culture. We outline and illustrate the management principles of TPS that can be applied beyond manufacturing to any technical or service process. It is a true systems approach that effectively integrates people, processes, and technology–one that must be adopted as a continual, comprehensive, and coordinated effort for change and learning across the organization” (Liker & Morgan, 2006)

Therefore it is very much evident that a purely Japanese model of the Toyota Production System cannot be applied to the other automobile companies and their business process pertaining to supply chain. However a modified and customized approach towards the Toyota Production System can yield better results for the companies by improving the efficiencies and resolving their incompatibility issues of the structure and the organizational culture and tradition with the Toyota Production System. “Externally purchased materials account for 60% to 70% of the manufacturing costs of a new car made by the Big Three U.S. automakers. They are increasingly outsourcing non-core activities and relying on upstream first-tier suppliers to deliver competitive advantages. A variety of SCM practices have been implemented, such as developing suppliers, building closer buyer-supplier relationships, and just-in-time (JIT) purchasing processes.” (Scannell, Vickery & Dodge, 2000)

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Essay: TPS applying JIT
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