In some cases the Toyota Company is also known to provide its suppliers with financial assistance in order to enable them to technologically and in terms of quality controls, along their production and supply process with that of Toyota Company. In terms of managing its risk, the Toyota Company keeps contracts with multiple suppliers in order to reduce over dependence on any one supplier and encourage the suppliers to have better relationships by having a portfolio of diverse contrast with other purchasers. This provides mutual benefit for the Toyota company as well as the suppliers who can leverage form their long term agreement and can also make use of other suppliers and purchasers in circumstances where one supplier is unable to provide the required resources or the purchaser is unable to buy the goods from the supplier due to financial constraints or inventory already in use in the production system.
In the advanced form of Toyota Production System being utilized the production strategy if the company revolves around the new JIT system. The New JIT system is a combination of digital engineering, quality assurance, process management and business administration activities which results in careful monitoring of supplies and inventories through systems technology. The aim of the JIT employed by the Toyota Production System is to realize customer as well as employee satisfaction by increasing the quality of the products and decreasing the time taken to produce.
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