Supply Chain Analysis: Toyota Supply Chain Analysis Of Toyota

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Supply Chain Analysis: Toyota revolutionized automotive supply-chain management by anointing certain suppliers as the sole source of particular components, leading to intimate collaboration with long-term partners and a sense of mutual benefit.
Toyota and its suppliers achieved made possible the “just in time” approach to delivering components to the assembly plant. Toyota’s JIT Revolution JIT was developed by Taiichi Ohno of Toyota in 1970. Taiichi Ohno is known as the father of JIT and his motivation to come up with JIT production system was to meet customer demands with minimum delays. This system focuses on reducing wastage of raw materials, lowering inventory and storage cost by producing goods at the time they are exactly required.
This system tries to eliminate the wastes resulting from any activity that adds cost without adding any value to the product. There is a lot of emphasis to build the product correctly in the first time. To achieve it, coordination, planning and execution has to be very accurate. JIT can be implemented in industries where the manufacturing process does not change such as automobile industry. Most of the automobile companies follow assembly line. Each workstation produces part that is based on the requirements of the next workstation. Hence this system is also a pull system. At each workstation only those parts arrive that are needed at that station and at the right time when they are required. This leads to savings in storage
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