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Pearson BTEC Level 5 HND
MBA
Diploma in Business
Unit 15: Managing Business Activities
to Achieve Results
Assignment Title: Managing Business
Activities to Achieve
Results
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The Japanese renowned motor vehicle company Toyota uses vehicle design, raw materials,
labour, management and finance as their Input. This inputs transfer into output by the TPS
process. The assembled vehicles are the output of Toyota.
Purchasing, quality control, accounting, finance, marketing, distribution are the key
operations of Toyota. Purchasing refers buying raw materials whereas production is
converting input into output vehicle. TPS of Toyota Production system ensures the
operational function. Finance is functional department which ensure the cash flows and
accounting deals with past transactions. Marketing and distribution deal with the customers
and built long term relationship.
The input stage is covered by the functional department. Finance department collects finance;
marketing department collect market information and HRM manages skilled employees so
that all the departments can work together. This stage manage raw materials.
The process stages Toyota try to achieve competitive advantages. The mission, vision and
objectives are formulated to achieve competitive advantages which has interrelation with
different process and functions of Toyota. Without these factors one cannot achieve their
organisational goal in future. For example, ensuring highest quality with affordable price is
the top most priority of Toyota. Without this there might be accident and may cause harm in
human life. That is why Toyota developed Kaizen, just in time (JIT) and other integrated
system to ensure quality and to achieve Toyotas mission, vision, goals and organisational
objectives.
In the output stage Toyota ensures the products is well served to the market and is achieving
target sales and goals. The logistics department is responsible for the activities.
The Process Flow Diagram is a graphical flowchart which shows the interrelations of main
activities of manufacturing plants (Turton et al, 2012). This process flow diagram sues to
understand quality, control process, optimal efficiency, identifying bottleneck and necessity
of personal development.
Toyota considers the environment friendly packaging in their process flow diagram. The
process flow diagram is segmented into three part that are Input phase, Activities phase and
output phase . In the first phase, there are mainly raw material production phase, material
forming and module assembly phase. Toyota does not outsource its any production.
Activities stages is the main operational stage of the Toyota productions system. In this stage,
Toyota transform, raw materials into products and services. TPS (Toyota production system)
is maintain the work sequences and processing to enable pull system for the customers.
Generally, TPS (Toyota production system) manufactures 50 vehicles in one batch.
after activities phase, output phase starts with the distribution of the motor vehicles to the
customers (Boddy, 2005). This phase includes relationship with supplier, packaging, spare
part delivery to vehicle sales point and installing of parts. The final and third phase is end of
life which covers package recycled, package separation, energy recovery and package land
filled.
1.3 Evaluate and purpose of the Toyotas process and quality gateway
There is a big difference between effectiveness and efficiency. Effectiveness means getting
the output from the activities of employees whereas efficiency means performing the actions
with least time and inputs in an affordable way.
Key performance indicator helps to measure the performance of the operations and helps to
evaluate with business goals (Scheer, Jost and Kronz, 2006). Key performance Indicator or
KPI of Toyota shows the process plan and duties of employees. It helps to develop Toyota
production system and Kaizen techniques for Toyota. KPI helps to achieve cost leadership
strategy for the automobile companies like Toyota.
Quality Gateway is process of ensuring all the requirement that need to be passed to ensure
quality (Robertson and Suzanne, 2017).
KPI formulates checklist with quality control, proper description and purpose of the actions
so that Toyota can ensure the highest quality product for their customers. KPI also helps to
fulfil the organisation goals and mission in various method. This how Toyota finds their error
in the production system and takes crucial strategies to remove all the error in the Toyota
Production system.
Toyota has three main key performance indicators and they are-
Toyota always consider environmental sustainably first and that is why TPS established green
technologies in the company. (Toyota, 2017)
Management by objectives: this is integrated process in managerial system which performs
key management actions in an organised way (Karthikeyan et al, 2007).
Planning hierarchy: this is illustration of different level of an company from upward and
downward direction.
Figure 5: Planning Hierarchy
Planning process model: this is set of plan that accelerate to achieve the organizational goal.
(Grimsley, 2017).
There are five steps of MBO and they are described below:
Objectives of Toyota
Employee objectives
Diversity in performance.
Program monitor
Performance evaluated
Analysis KPI at least thrice in a year.
Achievers rewarded
Measurable: the objective of the Toyota should be measurable. Because planned and actual
output will be measure to ensure the productivity of Toyota. Toyota has planned to
manufacture environment friendly vehicles.
Achievable: Toyota does not set any objective which is not achievable to impossible to
perform. SMART objectives refer to achievable goals in a specific time. Toyota is developing
electric cars to reduce pollution.
Realistic: Toyotas goals are real in nature and adopting more advanced technologies to
achieve realistic objectives. Designers of Toyota developed advances tech that ease motor
vehicle experiences.
Time: Toyota will achieve its goals within 35 years if the gloabal issues remains same.
(Hower, 2015).
The Quality System: The quality system is a set of strategies and plan to run the business
operation in a planned manner to ensure quality (Duggan, 2017). The quality system
establishes connection among the factors related to the production system ensuring
effectiveness.
Effectiveness of QS in Toyota
Types of controls and control process that enable Toyota to meet its objectives
PERT: Program Evaluation and Review Technique, in short PERT, illustrates the time
required to complete each activities and operations. PERT chart provides information about
the time bound and a-objectives of each task.
Critical path method is a sequential technique of project management for operation process
which shows critical nad no critical path with useless task and bottleneck process. CPM suits
with complex project management activities.
Fig: Critical path Method.
The Toyota Production System (TPS) was established "jidoka" and "Just-in-Time,". Jidoka
refers to process if any problem occurs in the productions system, the production
automatically stops. This is an automated process. It helps to identify defected and
malfunctioned equipment
The second concept is "Just-in-Time," which refers to process to providing products when it
is needed. Kaizen is another concept of Toyota which means continuous improvement. The
reduces waste, increase quality control and ensure maximum productivity,
Total Quality Management
TQM integrates the features of the production and services that satisfies the express and
implied quality needs and expectations of the customers (Mukherjee, 2006). TQM
emphasises on the quality in every level of operational activities to satisfy customers.
Total quality management or TQ is philosophy of the production process that shows the
implied needs customers and expectation the customers (Mukherjee, 2006). It ensures quality
of product in every level of operational process.
Figure 7: Total Quality Management
Toyota is a global and renowned brand always looking at the quality of its products and
services. The company is well-known for strict quality management. The roles of quality at
Toyota are given below:
Ensuring high quality management has brought a reputation of very high quality
vehicles all over the world.
Top quality products and services highly satisfied customers and bring them back
again to Toyota products.
Toyota Production System, Kaizen and JIT improve the performance of employees,
teamwork and company performance.
Toyota is global brand with vison to provide low cost environment friendly role of quality
motor vehicle. The company is famous for its Kaizen and Toyota production process. The
role of quality of Toyota is given below:
The high quality of management provides a very good quality of the products across
the globe.
The quality products fulfil the needs of the customers and recycle back to Toyota.
Toyota Production System (TPS), Kaizen and Just In Time techniques will improve
the performance of employees and company.
Customer oriented attitude: Converting the production system customer oriented not
the product oriented.
Quality Circle
Toyota uses the Quality circle from 1963. The main purpose is to solve problems arises in the
company to establish control over the activities. The Quality circle report of Toyota covers
title, background, current condition, counter parts, reason of the problem, implementation
plan, further scope, result and conclusion.
ISO 9001:2015
ISO 9000 series provides the regulations about quality management of an organisation.
Toyota is ISO 9001:2015 series certified company because the Toyota production system,
Kaizen and JIT are fulfilling the condition of ISO 9001:2015. ISO 29000 ensures the quality
management of oil and gas industry.
3.3. Recommend improvements that links with Toyotas goals and objectives
Manufacturing Trending hybrid car which has less or no pollution in the environment
and which is also fuel efficient.
Business Process Re-engineering is developing new task plan which is related with process
planning and design activities. Installation of advanced technologies are also part of BPR.
(Komarova, 2014).
Figure 8: Business Process Re-engineering
BPR ensure customers satisfaction by completing their needs and demands and
responding with their feedbacks.
The proposed changes are being made to win over the competitors in the market. Every motor
vehicle companies are upgrading their systems so they can grab more customers than the
rival. Along with Toyota, there are few companies who are manufacturing hybrid cars in
response of current demand and to support the environmental changes.
To implement the proposed change, following thing are need to be implicated first. They are
The satisfaction of the customers is very much important. The feedback regarding
new project like Hybrid car will help to design as per the choice of the customers.
Toyota should be careful about new entrants company and activities of existing
competitors. This trending global vehicle market is dynamic in nature.
Toyota should increase its business in new market segment to attract potential
customers before competitor get them.
Risk assessment must be carried out by the Toyota for following cause:
There are several laws which can regulate the risk assessment of Toyota.
Hazards is situation which can harm the human life, produce threats to property and
environment. It can be potential land dormant in nature (wikipedia, 2017). Form a hazardous
incident anything can damaged or anyone can be injured. That is why risk assessment is
necessary to find these potential hazards and take proactive precaution to prevent these.
Keep record of every activities happened in the Toyota can shows the potential hazard. By
evaluating the information Toyota can review assessment and update it.
Fig- Risk assessment circle
This report provides the existing practices of health and safety law in the workplace of
Toyota.
This assessment protects the company suffering from huge losses due to hazards.
Toyota management will be updated about the practices of law.
The Health and Safety Executive (HSE) provides five steps of workplace risk assessment.
1. Identify hazards- Toyota is responsible to identify the potential s the health and
safety risks in the workplace.
2. Decide who may be harmed, and how- after the identifications, Toyota must find
the persons or equipment which is might be damaged or affected.
3. Assess the risks and take action- this is step where Toyota will decide how ot reduce
the risk factors and eliminate it.
4. Make a record of the findings- keep documentation of the acitons.
5. Review the risk assessment- this the most important part where Toyota will review
the final output of the actions. (Grimsley, 2017).
Following situations can be handles if Toyota Derby apply health and safety legislation
Hazards:
Toyota also must follows legal obligations under the Electricity at Work Regulations 1989
Toyota ensures mandatory training on health and safety to every employee. They
consider these training as part of continuous development.
It ensures that health and safety facilities are providing till the termination of job.
Toyota Derby awareness training on Hazard in their way (Toyota, 2013).
Ensuring proper practise of Health and safety law along with, The Management of Health and
Safety at Work Regulations 1999, Control of Substances Hazardous to Health Regulations
2002, The Manual Handling Operations Regulations will ensure best practices to identify and
assessing the risk of Toyota Derby.
Hazard is something that may cause harm whereas risk is caused due to hazard.
Hazard will actually cause harm but risk is the possibility high or low.
Example, some hazards are chemicals, electricity or some heavy works. Some risks
are falling in accidents, damage life or arms etc.
Hazard cause harm to anything and anybody whereas risk is created from hazards.
Hazard is the actual condition but risk is the possibility to happen.
Example is due to explosion in factory, everything burns into ashes. This is hazards
and risk is that factory may not start production again.
Ensuring Health and safety of employees in workplace of Toyota is most prioritize task. They
are committed to protect their resources by any means from unwanted hazards and risk.
4. Objectives
This is responsibility of Toyota to ensuring proper health and safety to their employees.
Employees are bound to receive health training till the termination of job .
Helath and safety concern are the primary factors of Toyota.
9.diagram of hazards, we can see that there are 6 kinds of hazards.
This is process to find potential l hazards and risk within the workplace by collecting ,
evaluating and analysis of Data.
12. Hazard prevention
References
lives, h. w., 2014. Risk Assessment. [Online]
Available at: http://www.healthyworkinglives.com/advice/Legislation-and-policy/Workplace-
Health-and-Safety/risk-assessment
[Accessed 22 february 2017].
Goh, G. (2013) The difference between effectiveness and efficiency explained. [Online].
Available at: https://www.insightsquared.com/2013/08/effectiveness-vs-efficiency-whats-the-
difference/ (Accessed: 14 February 2017).
Grimsley, S. (2017) What is the strategic planning process. [Online]. Available at:
http://study.com/academy/lesson/what-is-the-strategic-planning-process-model-steps-
examples.html (Accessed: 14 February 2017).
Hower, M. (2015) Toyota sets goals for better cars, manufacturing and communities.
[Online]. Available at:
http://www.sustainablebrands.com/news_and_views/new_metrics/mike_hower/toyota_sets_g
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Komarova, M (2017) It is time for business process reengineering. [Online]. Available at:
https://www.comindware.com/blog/bpm/time-business-process-reengineering/ (Accessed: 22
February 2017).
Mukherjee, P. (2006) Total Quality Management. New Delhi: PHI Learning Pvt Ltd.
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http://www.volere.co.uk/ten-tests-for-requirements (Accessed: 22 February 2017).
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