Sample Essay

In order to do this the Toyota Company has established the location of production which is closely located to the suppliers and the vendors of the company. This enables the suppliers to quickly provide the smaller components, the resources an the raw materials as and when required in the production process of the Toyota Motor Company. Moreover the design of the production process is such that only as much vehicles are produced, as are demanded in the market so standby inventory of finished goods is discourages,. As a result the vendors tend to pick the finished goods form the company and store them in their own warehouses for shipping to point of sale in location as well as international locations. “Toyotahas in fact inJapan, all around and within theToyotaCityarea, a quite unique concentration of production sites, surrounded by the plants of all its major suppliers and supported by a large population of stable and temporary workers who are highly experienced and skilful. Not only are these plants, on average, bigger than the overseas transplants, but they rely also on larger volumes per platform with lines which can manufacture and assemble different models simultaneously. When unplanned fluctuations in the production schedule occur in this context, Japanese plants can shift models across common platforms, can transfer workforce between factories, and in the worst cases, can fall back on their first-tier suppliers, who can also perform assembly operations of final vehicles.” (Pardi, 2007, p5-7)

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Essay: Toyota Company and TPS Process
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