Toyota production system

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Toyotaproduction system

Why the management should adopt the system

Gorges Company was enjoying the market supremacy until 1998 whenthings went wrong. The business is currently operating on losses withcustomers going away due to poor services. The management of thecompany is poor since they do not have a clear policy on the companyorganization. However, after seeking the advice of a businessconsultant, he explained to us the need of adopting the Toyotaproduction system. We also liked the system because it has helpedmany companies in the developing and reaching higher businessheights. We agreed on the because it hasbeen successful in many organizations such as Toyota, and the systemis cheap to implement (Monden, 2003). Moreover, since our company isa cupcake organization, we will like to implement the Toyota businessmodel because it has proved thriving in the snack manufacturingindustry with many companies gaining booming profits through properimplementation of the policy. The isinstrumental in sensitizing the organizations the need for reducingwaste in the production system.

Most systems are known to lead the organization to poor utilizationof resources through wastages. With our business being on record forwasting resources through its production means, the Toyota productionmechanism will be important since it will sensitize us the need toutilize the available resources fully. Moreover, the system alsosensitizes the organization to reduce expenses through adopting themodern technology that will improve the rate of production and reducethe labor in an organization (Monden, 2003). Additionally, the TPS isappropriate for the company because it identifies the customers andspecifies a value. The starting point of the system is to recognizehow the minor we have been essential in satisfying the customers’needs. The system is well known for identifying the consumer needsand implementing it according to the consumer demands. For instance,we will produce munchies that will satisfy the consumer needs rightfrom low-class people to rich class in the society. Moreover, the TPSis appropriate since it will answer the production questions to theconsumers. For example, the approach will answer consumers’questions about the need to produce their products using theenvironmentally friendly approaches. Additionally, the systemsensitizes on the production of the final product that has a greatvalue to the consumers. Therefore, most companies have adopted thesystem because it encourages the recognition of the consumer needsand works towards satisfying them. The production approach isadvantageous because it promotes the increased productivity since itencourages on the need for the adoption of the latest technology thatmay increase the rate of production. Initially, our company usedmanual production means, which encouraged the use of many laborers inthe production process. For that reason, the organization wasoperating under losses due to the salaries it paid its laborers withtheir low rates of production (Monden, 2003). Moreover, theproduction system is crucial in promoting environmental conservation. Most nations have backed up the production approach because itpromotes the eco-friendly production criteria. The productionapproach is crucial since it will reduce environmental pollution. Thesystem also encourages the implementation of the lean productionapproach that demands a significant change in attitude among theworkers. The system encourages the adoption of the positive attitudethat may boost the production of the company. Additionally, apositive impression among workers may lead to an encouragingrelationship in an organization.

The effectiveness of TPS in reducing the financial costs of thecompany

The is effective since it encourages thereduction of the financials wastages in an organization through theadoption of the modern technology (Monden, 2003). The encouragementof the adoption of the innovation and creativity will reduce thefinancial wastage in Gorges Company. Additionally, the Toyotaproduction system is encouraging because it encourages the reductionof the number of employees in an organization. For instance, mostorganizations that have adopted the system have cut their financialspending by nearly half. The system also encourages the production ofhigh-quality products that may attract a large number of consumers tothe organization. The attraction of a large number of customers tothe company may increase the profits through huge sales that mayboost the finances of the organization (Monden, 2003). The reductionof the wastage through the TPS in the production process may reducethe financial wastage in the company. Therefore, the TPS will helpGorges company in reducing the financial wastages through encouragingthe hiring of the most productive workers in the organization.Additionally, the hiring of the productive workers will increase thevolume of production in the entity that may lead to the profitabilityof Gorges Company. Likewise, the TPS encourages the reduction of thelabor force through the elimination of the unproductive works fromthe company. Therefore, the move will help in reducing the company‘sexpenses through the reduction of salaries and wages.

The financial implications of the

` The is perceived the best for the companyto revive its operation, but it has some financial implications thatmay lead the entity into losses. For instance, the system encouragesthe reduction of the labor force and intensifies the use of machines.Mostly, machines are expensive to purchase and maintain as comparedto the labor force (Ōno, 2008). Currently, due to the adoption ofthe modern technology, the prices of machines have skyrocketed andreplacing them with labor will lead the company into financialimplications. Furthermore, the policy of replacing the human laborwith machines may discourage workers since they may feel theirwelfare is not part of the company’s agendas. Thus, this may leadto the reduction in the rate of production due to demoralization. Adecrease in the rate of production may register low sales for thecompany that may contribute to financial losses for Gorgesorganization. Additionally, the TPS does not recognize the hard workof the worker through rewarding them. For that reason, the attitudemay reduce the working spirit of the workers, which may lead to lowproductions in the company. The reduced productions may lead theGorges organization into financial losses.

Cascading the program throughout the company

The is important to any organization andimplementing it will be beneficial for the growth of Gorges Company(Ōno, 2008).The management team of the organization needs toinform the company’s labor force on the essence of implementing thepolicy in an organization. The realization of the essence ofimplementing the policy will lead Gorges Company into higherachievements (Ōno, 2008). Moreover, the plan of getting funds topurchase machinery meant to implement the strategy is crucial sincethe system is technology oriented. The TPS plan is machine oriented,and the purchase of the appropriate pieces of machinery forspearheading the plan may be beneficial for the company.


Monden, Y. (2003). : practical approach toproduction management. Engineering &amp Management Press.

Ōno,T. (2008). : beyond large-scaleproduction. Productivity press.

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