Week 4 Homework

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BUSN 5000 TX
Business
Prof. Johnathon Boyd
Week 4 Homework
Surendra Kumar Moka
ID: 4285608
Webster University
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1. How Have TPS, JIT, Kanban, and the Andon Cord Helped Toyota Improve Quality and
Productivity?
By using the Toyota Production System (TPS), Just-in- Time (JIT), Kanban, and Andon cable,
Toyota has greatly raised its efficiency, quality, and worker productivity. TPS was meant to cut
waste in the manufacturing process, thus enabling Toyota to focus on making just what is needed
when it is needed, so avoiding overproduction. JIT lowers inventory costs and storage needs
even further by ensuring that supplies and components arrive exactly as needed for production.
This method helps to reduce resource waste and allows a more flexible production process, so
increasing general output.
Alerting when new components need to be ordered helps Kanban, a card-based tracking system
ensure a flawless flow of parts and supplies. Acting as a precursor to contemporary barcodes, it
helps Toyota to have a real-time view of the production process. This guarantees fast resolution
of any delays or shortages, hence maintaining efficiency.
Workers' capacity to quickly correct errors enables them to pull the Andon Cord, a rope designed
to stop the production line. This approach ensures that errors are not carried forward, therefore
generating superior products and less need for costly rework. It also motivates employees to own
their work, therefore raising output and job happiness. All things considered, these innovations
have enabled Toyota to rapidly produce premium vehicles, so separating the company as a leader
in both quality and output in the global automotive market.

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2. Why Did Toyota Change Its Inventory Control Strategy?
To help with inventory control, Toyota historically applied JIT ordering just the components
needed for immediate manufacturing. This approach reduced capital tied in inventory and saved
storage costs. But during the past 15 to 20 years, Toyota has altered its approach by stockpiling
some important parts particularly microchips and electronic components to help build This
change came from numerous factors.
First, especially in electronics, automotive technical advancements have made some parts more
essential and challenging to obtain. Shortages of some components might totally stop production,
leading to costly delays and closing of facilities. As current technologies in cars grow more
sought for, global supply systems have also been under strain. For example, various industries,
including automotive manufacture, were greatly influenced by the CPU shortage of late years.
To reduce this risk and stop production delays, Toyota increased its inventory of these important
components.
Two more factors are Toyota's growing supply chain's complexity and globalization of it. The
company gets components from a wide range of suppliers all over, which increases the risk of
disruptions brought on by economic change, geopolitical instability, or natural disaster. To
manage these risks, Toyota developed a contingency planning system called RESCUE
(REinforce Supply Chain Under Emergency); it enables the identification and resolution of
potential shortages before they affect production. Toyota has been able to maintain
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manufacturing efficiency even in times of global supply chain interruptions by means of this
preventive approach.
3. Would Toyota’s Methods Work in Other Types of Businesses?
Beyond manufacturing cars, other industries could gain from Toyota's strategies—especially
those requiring complex supply chains, continuous manufacturing, or assembly-line processes
particularly TPS, JIT, Kanban, and the Andon Cord. For example, companies in the electronics
manufacturing sector such as Intel have embraced similar approaches to improve efficiency and
quality control. Globally relevant concepts of waste minimization and continuous development
can assist industries needing process simplification and reduction of unnecessary costs.
Still, the kind of business will define the degree of success these approaches provide. In
industries with irregular demand or those largely dependent on customizing (e.g., luxury
products or service sectors) a JIT method could not be as successful since these businesses must
retain larger degree of flexibility. Moreover, industries where product defects have less impact
on overall performance could not benefit as much from systems like the Andon Cord, which are
supposed to be quickly fixed on the manufacturing line.
Having said that, the more general concepts of Toyota's approach stressing efficiency, waste
reduction, and staff empowerment can help a lot of different types of companies. TPS concepts
could be used by the service sector to streamline procedures, reduce wait times, and improve
customer satisfaction among other things. Designed to manage production in the IT or creative
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industries, Kanban ensures correct resource allocation and efficient completion of projects. All
things considered, even if Toyota's production procedures are rather successful, they might
increase productivity, quality, and efficiency in many other corporate situations.

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Prof. Johnathon Boyd

Surendra Kumar Moka

increasing general output.

of any delays or shortages, hence maintaining efficiency.

in both quality and output in the global automotive market.

2. Why Did Toyota Change Its Inventory Control Strategy?

change came from numerous factors.

disruptions brought on by economic change, geopolitical instability, or natural disaster. To

3. Would Toyota’s Methods Work in Other Types of Businesses?

those requiring complex supply chains, continuous manufacturing, or assembly-line processes

supposed to be quickly fixed on the manufacturing line.

increase productivity, quality, and efficiency in many other corporate situations.

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