As the purpose of the paper is to depict how the concept of the Toyota Production System can be applied to the supply chain management in the automobile industry, instead of taking into account any specific organization for establishing the background,
we have taken into account the background and profile of the global automobile industry with the market leaders and their practices being highlighted. The rest of the companies in the industry follow the market leaders in terms of their structure and operations therefore the focus on the industry would provide a holistic view of operation in the automobile sector.
The automobile industry is one of the oldest developed industries of the world whose initial players are still active in the market today. The concept of the automobile was introduced in the 17th century but due to the lack of the resources available and the skills required for manufacturing automobiles on a level to create a demand for the product in the market and then satisfy this demand, the industry was unable to take shape at the time. Over the years however the notion of automotive mobile transport became of much importance amongst the, market which created a need for such products. The automobile industry as we know it today came into being in the early 20th century with the mass manufacture of cars by Henry Ford on his revolutionary assembly line. “In 1914 Henry Ford began to mass produce cars using assembly lines. In addition, his practice of providing loans to consumers to buy cars (1915) made the Model T affordable to the middle class. In the 1920s, General Motors further changed the industry by emphasizing car design. The company introduced new models each year, marketed different lines of cars to different income brackets (the Cadillac for the rich; the Chevrolet for the masses), and created a modern decentralized system of management.” (‘Industry History’)
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