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Qualification - HND in Business

Unit Name - Management and Operations

Unit Number - Unit 4

Level - Level 4

Assignment Brief Ref - REF: 19-20-U4-A5.1

Assignment Title - Toyota's Operational and Managerial Success

Learning Outcome:

Learning Outcome 1: Differentiate between the role of a leader and the function of a manager

Learning Outcome 2: Apply the role of a leader and the function of a manager in given context

Learning Outcome 3: Demonstrate an appreciation of the role leaders and managers play in the operations function of an organization

Learning Outcome 4: Demonstrate an understanding of the relationship between leadership and management in a contemporary business environment

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Business scenario

Toyota Motor Corporation (TMC) is one of the leading automobile manufacturers in the world. The name itself inspires trust in the brand and for many people around the world, purchasing a vehicle manufactured by Toyota is also a sound investment. In 1933 Toyoda Automatic Loom Works, Ltd established the Automobile Department. In 1935 the first A1 prototype passenger car and the G1 truck were made at HI node Motors (Company, 2011).

In Toyota there is no boundary between thinkers (managers) and doers (operators). The ideal is that everyone works for ‘one Toyota', and continuously improves themselves and the company. Seen in that light, Kaizen and PDCA-cycles are not only for processes, but also for people.

Toyota's leadership model is based on teamwork, collaboration, and consensus. Roles and Responsibilities of Organizational Managers and Leaders Managers and leaders play significant roles and have huge responsibilities in creating and maintaining a healthy organizational culture. The role of an organizational manager or leader is to focus on fundamentals, what is a priority, and what works. Managers or leaders are also responsible for the focus on long-term issues, and the future of the organization. Managers and leaders are the barometer of the business.

In the same regard, Toyotas' Production System teaches a customer focus, emphasis on adding value through employee contributions that are developed through two-way trust and respect, and elimination of inefficiency and waste in the production process. In the 1970s and 1980s TPS was the system that Ford Motor Company emulated to improve their production and their bottom line. Recently, however, Toyota lay shame-faced, having paid $1 billion in fines from a four-year U.S. federal criminal investigation for covering up recalls in 2009 and 2010. They needed to improve their image and move on.

The system created in Toyota was 60 years ago and the precursor for lean manufacturing and just-Intime inventory management. The Toyota Production System was focused on the highest standards in attention to detail and economizing.

The TPS system, however, runs counter to this. Total Quality Management works towards reducing defects first in the design phase, second with its suppliers, then in the production stage, and only as a last resort, after it's reached the customer. Toyota has fallen out of step with its own Toyota Production System. In recent years, attention within the manufacturer has been on cost-cutting, rapid expansion, market share, and productivity gains over quality which had been deeply rooted in Toyota's culture. The company is stepping away from the long-term continuous improvement and zero defects values that made it such a powerful world model in the 1970s and 1980s. Traditions were put aside, with gains made in company size and the number of overseas plants and manufacturing facilities in Asia as well as North America and Europe. From 1995 to the end of 2009, Toyota doubled in size.

Toyota continued to promote itself as making a high-quality car, and for having reduced manufacturing costs which is seen as a competitive advantage. However, it went full steam ahead without stopping to look back. The Japanese manufacturer will have to revisit its traditions to overcome the lowering of standards from the renowned Toyota Production System.

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Assignment Brief

In a report (should include critical evaluation), you accomplish the following.

Part 1 - Define and compare different roles and characteristics of leader and manager in terms of effectiveness and efficiency.

Part 2 - Analyse and differentiate leading and managing roles by applicable theories of management and leadership keeping in view that in high performing work organization leading and managing are inseparable.

Part 3 - Examine and apply the theories and models of situational leadership, system leadership and contingency applicable to Toyota's operational excellence

Part 4 - Examine the strengths and weaknesses to appraise different approaches Toyota applied in within work environment to bring change on overall organizational level to improve system and processes.

Part 5 - Explain and Evaluate the key approaches and importance of leaders and managers in Toyota in managing operations management such as TQM, Lean production, Kaizen and Six Sigma in production system to achieve business objectives.

Part 6 - Assess the factors within the contemporary business environment that widely impact upon operational and managerial decision making in terms of:

- Core values, Ethics and corporate social responsibility
- Organizational culture
- Relationship with stakeholders

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