Toyota’s Transformation Process
Toyota’s Transformation Process stems from the market and the marketing information obtained from the products sold. A series of organizational devices collect sales information as carefully as possible and send it to the localities in the firm. Toyota uses different strategies and procedures in collecting information form the market. They range from minutely detailed analyses of orders and seasonal variation in them, categories of buyers, changes in interest rates or promotions for different models or different periods, opinion surveys of real potential clients.
The market information is then transformed into instructions for production. Toyota has an innovative technique of transforming information from the market into technical information, which, in turn, is instantaneously transformed into work methods. The transformation process at Toyota starts lower down the line to higher up. Through the use of kanban signals for orders and delivery, sales information is converted into technical information, or into a series of instructions concerning production and delivery from one work station to the next. This conversion is instantaneous and does not require an intermediary, since the line workers are trained and the lines prepared to automatically deal with the variety in the demand, and therefore with the production instructions (Coriat 2001).
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