Advantages And Disadvantages Of Toyota

Que1) Where should plants be located, what degree of flexibility should each have, and what capacity should each have?

Ans 1) Toyota is the 7th largest company in world. In the field of automobile, it is the 2nd largest manufacture. Toyota markets vehicles in more than 170 countries. Toyota imports all the raw material from third party. This results in involvement of huge cost for production. In ordre to prevent this, Toyota Plants should be located at such a place from where they can easily get all the raw material required. Apart from this location factor, Toyota faced a major problem in the design of global production methods and distribution network. Due to this Toyota plants were redesigned so that they can also provide the product to

The Plant should be able to satisfy the local need of market which is allotted to it. They need to be able to satisfy the market in which they are built in. This reduces the logistics cost required for production and also results in more flexibility in plant to respond to the uncertain changes in market. The plants should have the capability of producing not only for the demand of regional market but also be able to produce the common parts which are required by all kind of markets. Also it should be the responsibility of each plant to complement or support the production of one or more other plants. This results in support to other plant when the market is down. It also results in proper functioning of all the plants and does not lead to shut down of plant due to market changes. Also the work load is equally distributed over all the plants. But this allotment is not static in nature. It needs to be revised periodically. Adjustments are needed when necessary. This re-allotment can be either done in a year or during the gap of six months. It also depends upon other factors like disruption in supply chain or due to some natural disaster, political instability and technological

The needs are uncertain and growing at quick rate. With this the production rate has been increased but without the proper distribution system, this increment is of no use. The distribution system should be well connected with the local market and as well as from the production unit. It should be distributive in nature. This system should be optimized enough in between the factories and the supply parts units. In order for the development of distribution system, Toyota must analyze the capability of every of its own factory. It should know that what a factory can produce in bulk and then decide the distribution system of its parts across various other manufacturing plants. No doubt it is time consuming but once developed and analyzed, it is very much productive for the distributive system. This is very much necessary for a good distributive and efficient distribution