Supply-chain management at Toyota is an element of company’s operations strategy which is thoroughly based on the Toyota Production System (TPS). It was developed in the 1940’s by Shigeo Shingo and Taiichi Ohno. As Toyota’s success gained world-wide coverage, at was followed by interest by other companies in TPS, the principles of which is expressed by the term of “lean manufacturing” Liker (2005, p.16) lists following components of Toyota Supplier Partnering Hierarchy: mutual understanding and trust, interlocking structures, control systems, compatible capabilities, information sharing, joint improvement activities, and Kaizen and learning. “JIT system – a system that organizes the resources information flows and decision rules that enable a firm to realise the benefits of JIT principles”. (Krajewski, Ritzman & Malhotra p.349) The elements of just-in-time system are being pro-active in exposing problems, pull production based in Kanban, Total Quality Management, elimination of waste, reducing inventory through involving suppliers in planning process, continuous improvement, improving machinery and focusing on co-operation. According to Kanban each part travels with a card. New stock will only be required when that part has been used, the card is removed, using signals to re-stock this part. Kanban is well integrated in Toyota’s production system, because in Toyota there are limited number of parts with stable demand for them. Also, product mix is low and exchanges are infrequent. Capacity planning in any company is part of a supply-chain management for that specific company. Toyota’s way to capacity planning is that it strives to eliminate inventory. In achieving this objective Toyota relies heavily in pull system. Generally, the main objective is continuous improvement. Another operational excellence pioneered in Toyota and later adopted by other companies worldwide is a “Lean Concept”. Lean philosophy aims to achieve are the elimination of all waste, superior customer care, and Lean is based…
Defining logistics and quality within supply chain management Supply chain management. According to Wilton (2005, p.22 ), the term logistics has originated around 1930’s from the French word “logistique”, which is taken from the word “loger” meaning dividing troops. Nowadays, the term logistics is used in different spheres, bearing different meanings. The Council of Supply Chain Management Professionals (CSCMP) define logistics as “the plans, implements and controls that effectively and efficiently forward and reverse the flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer’s requirements”(CSCMP – online, 2010). Alternative definition of logistics is provided by Webster’s dictionary as “the procurement, maintenance, distribution, and replacement of personnel and material”(Webster’s Dictionary – online, 2010) Mentzer et al. define supply chain as a “set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer” (2001, p.4) The quality within supply chain management is defined by the author of present essay as the measure of supply chain in terms of reducing costs of supply chain and increasing its efficiency. Houlinah (1998, p.14) lists the following differences between supply chain management and traditional manufacturing materials control. Firstly, supply chain is seen as a single process. Second, supply chain requires strategic approach and decisions making. Third, supply chain requires a different approach to inventory. And, fourth supply chain requires integration rather than interfacing for system approach. The objective of managing supply-chain, according to Stevens (1989, p.5), is to synchronise the requirements of the customer with the flow of materials from suppliers with the aim of effecting the balance to achieve high customer service, low inventory management and low unit cost. Companies in any…
Attitude is of primary importance for Kuyumi (2007, p.27), who insists that whatever leadership traits and abilities a person has, their successful application depends on a leader’s attitude to his work and workers. One of the most respected and experienced leadership scholars Posner (2002, p.27) claims, that in almost every survey he has conducted since the early 1980’s, although with varying percentages, honesty has topped the list Lutz (2005, p.44) believes integrity to be the cornerstone of leadership traits and insists that most effective leaders have a code, according to which they live, and they do not waver from it. Many authors have singled out passion as one of the compulsory ingredients of leadership characteristics. Davies (2007, p.16) believes passion to be seen in terms of passion for social justice, passion for learning and passion to make a difference. And he highlights the passion to make a difference as a key instrument to turn believes into reality and as the mark of sustainable leadership. Stressing the importance of vision Kumuyi (2007, p.9), reminds about the vulnerability of the vision and warns that ‘vision can’t be held sacrosanct’. The importance of the ability to have a vision and communicate the vision to all stakeholders of the company has been highlighted by many authors including Pockell and Avila (2007) and Parks (2005). The authors state that the ability to formulate and communicate the vision and making sure that the vision is shared by each member of the workforce can be considered as a cornerstone of effective leadership because it will result in increased level of motivation and performance among workforce. Effective communication skills, Frank (1993, p.386) argues, is the hallmark of an effective leader, and he clarifies, that this particular skill can be developed through education and practice. Northouse (2007) also considers communication skills…
Personal development objectives The author of the dissertation has identified a set of personal development objectives to be achieved during the research which consist of following points: 1. To get equipped with skills required to critically analyse academic work through undertaking literature review for the dissertation 2. To learn about the methodology of conducting research and primary data collection methods. 3. To improve communication skills and self-confidence by arranging and conducting interviews with five marketing professionals 4. To improve time management skills by adhering to research timetable and making amendments in the timetable whenever it is necessary to do so. 5. To improve analytical skills through analysing and discussing primary data collected through semi-structured in-depth interviews. 6. To improve writing skills by critically analysing and reviewing each sentence several times until the desired format is achieved. Achievement of Personal Development Objectives The personal development objectives to be achieved as results of the research specified by the author at the beginning of the dissertation have been achieved at the following extend: The author of the dissertation has acquired critical thinking and critical analysis skills by reviewing and critically analysing a vast amount of literature concerning the research topic, small amount of which was mentioned in the literature review section; The author of the paper has learned the methodology of conducting a research extensively, gaining a deep knowledge about issues which can be faced at each staged of the research, and more importantly how to overcome them. Moreover, the author has learned about advantages and disadvantages of each primary data collection method, forming an ability to allocate them with different kinds of researches. Communication, self-confidence, and interpersonal skills of the researcher have been improved as a result of organizing meetings with and interviewing five marketing professionals for primary data collection purposes.…
By John Dudovskiy
Category: Personal reflection & development
The jobs of managers consist of getting things done by others. Their efficiency can increase significantly if employees respect them and follow their order not because employees have to do it, but because they trust their manager and are motivated by them. Such a scenario can take place only when managers are leaders at the same time. Wesley (2007, p.48) provides a simple and comprehensive definition of leadership as ‘the art of persuading other fellow to do what we want him to do’. Another definition of leadership is proposed by Fred Smith, recited by Pockell and Avila (2007, p.83), who defines the leadership as the ability of getting people work for us when they are not obliged to. Harvey (2001, p.37), defines a leader as an individual, who facilitates the movement of a group of people by his actions toward a common goal. The scientific study of leadership is divided by Heilbrunn (1994, p.65) into three phases: 1900 – World War II. Researchers attempt to identify traits of leaders in order to study charisma. World War II – 1970s. Main focus of leadership researches are behaviour of leaders. 1970’s – present (date of publication).Interaction between leaders and followers are being studied. According to Burns (1978, p.142) transformational leadership is a relationship of shared stimulation and elevation, and that relationship can change followers into leaders and leaders into moral agents. Bass and Avolio (1990, p.88) specify four principles of Transformational leadership as: Idealised influence Inspirational motivation Individualised consideration Intellectual stimulation References Bass, BM. & Avolio, BJ, 1990, “The Implications Of Transactional And Transformational Leadership For Individual, Team, And Organizational Development”, Research in Organizational Change and Development, Vol. 4 pp.231-72. Burns, JM, (1978), ‘Leadership’, New York: Harper/Row Harvey, M, 2001, ‘The Hidden Force: A Critique of Normative Approaches to Business Leadership’, SAM Advanced…
Johnson & Johnson. In order to get employees motivated and to create positive image for the company many companies try creating common values and ideas for all employees in form of guidelines, this is then widely promoted internally and externally. In most cases such common values are interconnected with the type of the business. For instance, for over two thousand Facebook employees such an idea is sharing and openness in the workplace due to the fact that the nature of the business is connected with its customers sharing their personal information on that social networking website. Another example is Apple Corporation, where innovation in any form is celebrated and employees are encouraged to experiment with new ideas and innovate. Moreover, the company has made a cliché for itself to be one of the most innovative companies in marketplace and its promoted company culture helps it tremendously. However, not many companies succeed in creating a common set of such guidelines for employees and getting them adhering to it. Johnson & Johnson is one of the companies which have succeeded in that aspect. For Johnson & Johnson such a guideline is the official Company Credo. It includes the main principles of the company and it has featured in numerous business case studies because of its efficiency and its ability to create competitive edge for Johnson & Johnson in the marketplace. Analysis of the case The case is official Johnson & Johnson company credo available on company web-site. The following are analysis of rationale behind each part of the Credo together with comparison of officially announced Johnson & Johnson company credo to the actual facts on the basis of published materials. “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services.…
Differences between inter-industry and intra-industry trade. International trade is one of the key factors of macroeconomic prosperity for any country. Today with the increasing force of globalisation international trade has become very complex with multi-billion transactions taking place every year. Yet, some of the aspects of international trade are still not fully researched and even existing theories related to the international trade need to be submitted to critical analysis taking into account ever-changing global economic environment. Difference between Inter-industry and Intra-industry trade Although their wording is very similar the terms ‘inter-industry’ and intra-industry’ trade have a very different meanings. Inter-industry trade is a trade of products that belong to different industries. For instance, the trade of agricultural products produced in one country with technological equipment produced in another country can be classified to be an inter-industry trade. Countries usually engage in inter-industry trade according to their competitive advantages. Intra-industry trade, on the other hand, is a trade of products that belong to the same industry. As it has been noted, “intra-industry trade (IIT), that is trade of similar products, has been a key factor in trade growth in recent decades. These trends have mostly been attributed to the fragmentation of production (outsourcing and offshoring) as a result of globalisation and new technologies” (Handjiski et al, 2010, p.15). Explanation of Intra-Industry Trade by Economic Theory It first sight it may seem strange that countries do engage in importing and exporting same type of products with their international partners. However, there are a range of benefits intra-industry trade offers businesses and countries engaging in it in general. The benefits of intra-industry trade have been explained by various business researchers, and all of these benefits can be summarised into three points that which is illustrated by Johnson and Taylor (2009) in…
By John Dudovskiy
Category: International Business
Today there is a fierce competition in every industry in the marketplace. Therefore companies are striving to gain competitive edge whenever and wherever it is possible, by increasing productivity, improving service, and ensuring that the company can adapt to ever-changing business conditions. And in almost all cases the ultimate successes of the company in many fronts depend on company employees. HRM plays a crucial role in maintaining the competitive workforce in the company by being involved at the strategy, policy and decision making processes. The HRM team achieves these objectives by recruiting and selecting the right and qualified staff to ensure the goals and objectives of the organization are achieved. Human resource managers form a clear understanding of the talent pool the company possesses or whether they need to recruit from outside. New challenges businesses are facing in the 21st century require new approaches from business leaders. And solutions for these challenges are found by the workforce though increasing their qualifications and knowledge, sharing the knowledge and by developing and implementing new ideas. All of these indicate that the role HRM will be ever increasing in the 21st century. However, company HRM should function on a new level in order to respond to the challenges of the 21st century and to use the new business environment to the benefit of the company, to increase the marketshare. The following recommendations are aimed at making company’s human resources to function in a cost effective and value added manner. 1. The status of HRM should be increased in senior management view. Unless senior management consider HRM function of the company to be an important and integral part of the company overall operations by financing it accordingly and acknowledging its contribution, the true potential of HRM to create competitive advantage for the company would…
By John Dudovskiy
Category: HRM
Outline the main principles of human resource planning. Human Resource Planning also called Manpower planning deals with the identifying the needs of the company for skills, knowledge and labour, and initiating programs and actions to satisfy those needs. It is the process of planning and implementing the movement of employees into, within or out of the company in order to achieve the correct number of workers with relevant skills needed for the company to achieve its objectives. In other words, the human resources planning has to ensure that the required amount of employees with required skills are available whenever needed by the company. The objectives of Human Resource Planning are the following: • Deciding Goals: Human Resource Planning helps to achieve individual and organizational goals • Evaluating future organizational structure and human resource requirements • Auditing Human Resources on a constant basis in order to prevent overstaffing and understaffing • Undertaking Job Analysis through analysing the descriptions and responsibilities of specific jobs in order to hire the most suitable candidate for the position The Human Resource Planning is essential for a company for following reasons: • To use the human resources of the company in a most efficient manner to gain maximum benefits. This task would be easier if information regarding the various aspects of human resources are collected and arranged in an organised manner by HR • To forecast future requirements for human resources numbers and skills. This is especially important for companies that are planning expansion of operations. • To help the companies to better adjust to changes in political, economic, social, and technological environment, where HR plays an important part in mergers, relocation of plants, downsizing, closing of some operations, etc. • To determine the levels and standards of recruitment and induction. • To devise training and…
By John Dudovskiy
Category: HRM
Introduction Tourism has been one of the biggest and the most profitable industries in 20th century and this industry is moving towards the new level in 21st century with new variations and services included. Ecotourism is one of the variations of tourism that has been attracted mixed opinions from business academics and practitioners alike. Ecotourism can be defined as “travel to enjoy the world’s amazing diversity of natural life and human culture without causing damage to either” (Tickell, 1994, p.ix) On one hand, there are authors who argue that ecotourism is beneficial to tourists and local society in many levels pointing to learning opportunity for tourists and economic benefits to ecotourism destinations along with a range of other perceived benefits. On the other hand, there are others who point to the occasions were people were misplaced, local nature damaged, as well as socio-economic inequalities as the negative effects of ecotourism. Wearing and Neal (2009, p.6) mention two main facets of inequality as travelling to unspoilt natural environments and experiencing natural environment as the purpose of the travel. Emerging around 1980’s, ecotourism is believed to be related to nature-based, environmental education and sustainable development. However, there are some people who are highly sceptical about the benefits of ecotourism, and claim that it produces socio-economic inequalities. The Benefits of Ecotourism Development Ecotourism offers range positive impacts for tourists, host destinations, and the science and environment in general. The impact of ecotourism on the designated areas where ecotourism has been promoted is not only a marginal activity to finance the protection of the environment, but is also a major industry of the national economy. Tuohino and Hynonen (1991) mention the fact that due to rapid growth of the ecotourism in areas like Costa Rica, Ecuador, Nepal, the local communities are also benefiting…