Assignment No.

04
Course: Introduction to Business
Course Code: ALD 110

Submitted to:
Sabrina Sharmin Nishat
Lecturer
Department of Management Studies
Faculty of Business Studies
Bangladesh University of Professionals

Submitted by:
Shakib Mohammad Rahat
19241132, Section B
Batch 04
Department of Management Studies
Faculty of Business Studies
Bangladesh University of Professionals

Date of Submission:
28 March, 2020
 Toyota takes 'just-in-time' production to another level

Toyota Motor Corporation, Japanese Toyota Jidōsha KK, Japanese parent company of the Toyota
Group. It became the largest automobile manufacturer in the world for the first time in 2008. Most
of its nearly 600 subsidiary companies are involved in the production of automobiles, automobile
parts, and commercial and industrial vehicles. Headquarters are in Toyota City, an industrial city
east of Nagoya, Japan.

The Toyota Production System fulfils customer demand efficiently and promptly by linking all
production activity to real marketplace demand. Just-in-time production relies on finely tuned
processes in the assembly sequence using only the quantities of items required, only when they are
needed.
Just In Time Manufacturing: The system designed to build parts only what is required by the
next operation. Uses kanban tools such as cards, containers, etc.

• JIT focuses on the identification and elimination of waste wherever it is found in the
manufacturing system.
• Aim of reducing waste and cost throughout the entire supply chain.
• JIT implementation involves the initiation of a "pull" system of manufacturing.
• The sequence of which vehicles to produce when, by color and model, is determined about
four days before the start of the assembly process, and suppliers make and deliver the
necessary materials accordingly.
• This method eliminates the need for suppliers to hold extra inventory, and does away with
a process at Toyota factories to rearrange materials in sequence.
• With the trial in Iwate, suppliers were able to cut inventory space for some parts by 90%.
Staging space for parts at the vehicle assembly plant was reduced by around 60%.
• Around 10 suppliers in Iwate Prefecture were capable of handling the new production
method.
• The company operates assembly plants in their own region.
• The benefits include, significant reductions of raw material, work-in-process, and finished
goods inventories and large decreases in the amount of space required for the
manufacturing process.