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London School of Science

and Technology
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

Assessor Name: Ashbel Ndewere

Internal Verifier: Dr. George Panagiotou

Issued on: 30th January 2017

Deadline: 26th May 2017

Submitted on:

Student Name: Tahir


Student ID:
Campus: Birmingham
Pearson Registration Number:

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Introduction:
To get effective business operations, it is necessary to have skilled manpower and efficient
planning. This report contains the relationship among different factors of the business-like
objectives, output, quality gateway, effective operational plan and so on. This report will also
cover different laws existing in UK to regulate safety and health in the workplace.

Operation management is process which converts inputs of an organisation into outputs.


(Jones, and Robinson, 2012)Labour, raw materials, resources are the inputs and good and
services are the outputs.

Input-Output business model at Toyota

Figure 1: Input-Output model of Toyota

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.

1.2. Justify the methodology adopted to map processes of Toyotas objectives


and goals

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.

Figure 2: Toyota process flow diagram (researchgate.net, 2009)


Engineering process needs full accuracy in the application. This process flow diagram of
Toyota ensures the highest possible quality product for the customers. Toyota develops
Kaizen system to improve continuously in their Toyota Production System.

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).

Figure 3: Quality Gateway

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-

1. Control of Co2 emission and


2. implantation of green technologies.
3. The economic performance of the company

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).

Figure 4: Management by Objectives

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).

Toyotas operational plan by using MBO

There are five steps of MBO and they are described below:

Objectives of Toyota

maximising the interest of stakeholders.

Establishment of Kaizen for continuously improvement in quality, products, skils and


cost management.

To provide friendly working place with great support

Proper use of resources and capabilities like capital capabilities.

Employee objectives

Ensure health and safety in workplace.

Increase efficiency in term of skills.

Diversity in performance.

Increase loyalty towards their duties.

Ensuring vigorous working environment.

Program monitor

Transferring the Toyota production system into a cost efficient system.

Establishing Kaizen for continuous improvement.

Ensuring JIT for short lead and response time.

Performance evaluated
Analysis KPI at least thrice in a year.

Provide training and development program for the employees.

Conduct performance assessment to analysis performance of the employees.

Achievers rewarded

Providing Intrinsic reward like recognition, training and so on.

Providing Extrinsic rewards like increment, incentives, bonus and so on.

Following are the SMART objectives of Toyota:

Specific: The objective of continuous improvement should be specific and clear in


description. Carefully setting specific task will ensure daily effective operational activities.

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).

2.3. Implement appropriate systems to achieve Toyotas objectives


Customer relationship management: Customer relationship management is a tools and
software that analyses information related to customer and helps to build long term
relationship. (Kincaid, 2003).

Effectiveness of CRM in Toyota

Its increase the communication with the customers.


CRM provides insights of customers orientation.
CRM does not focus on product development.
The security of customers information is more protective than before.
It establishes long term relationship with the valuable customers.
It sorts the valuable customer so that Toyota can provides incentive to them and take
special care of them.
It reduces lead time, ordering cost and processing time and other cost.
CRM increases the rate of retention rate of customers of Toyota.

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

To reduce the waste of resources by eliminating the unnecessary actions.


To increase the quality of the product and reduce the cost of productions.
Its establishes Kaizen techniques to ensure continuous improvement in Toyota
production system.
To increase the core competencies of production system and improve the activities of
manufacturing plant.
2.4. Define control and Toyotas monitoring and controlling methods
Control: This is a regulated process to achieve organisation goals by facilitating the
activities. (Griffin, 2007). It evaluates actual and planned performance of different activities.

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.

Figure 6: PERT diagram.

Advantages and disadvantages of PERT in Toyota

It shows the activities in sequences with completion period.


PERT helps reduce cost of different operation process of Toyota.
It discards useless operation from the process.
It defines critical path of task and bottleneck task also

CPM (Critical path method)

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

The role of quality concept in Toyota

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.

3.2. Describe how Toyota promotes and implement TQM

Toyotas quality culture

Total quality of management of Toyota covers following tasks-

Continuous improvement: it is necessary to believe by the employees that the


continuous development is possible if there is innovation.
Self-discipline and total optimisation: all the management level, top to bottom will
sher their common ideas and values for Toyota.

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

Following changes are needed to consider to ensure maximum quality management in


Toyota.

Manufacturing Trending hybrid car which has less or no pollution in the environment
and which is also fuel efficient.

Establishing knowledge management system for the employees to improve


continuously in operational process.

Encouraging the employees to be more creative in term of training and development


programs. Thus people will be more engaged in the operations.

Business process re-engineering

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

Toyota is being benefitted by the BPR by the following way

It reduces waste and useless activities.

Help to increase quality in every level of production.

BPR ensure customers satisfaction by completing their needs and demands and
responding with their feedbacks.

3.4. Report on the wider implications of proposed change within Toyota

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

Installation of Upgraded technologies to ensure quality of the hybrid cars.

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:

It detects the potential hazards of the company.


For this assessment, the rate of unexpected incidence are getting lower day by day in
Toyota. (Weekes, 2011)
Shows the proactive actions to prevent the hazards.
It also increases awareness among the employees about the protective measure during
hazards

There are several laws which can regulate the risk assessment of Toyota.

Among them, important are

1. The Management of Health and Safety at Work Regulations 1999


2. Control of Substances Hazardous to Health Regulations 2002
3. The Manual Handling Operations Regulations

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

The impact of risk assessment at Toyota

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

a) In case of newly joined staff


Encourage to read Health and Safety 1974 handbook.
Provides details instructions health and safety standards applied in Toyota Derby
Provide necessary precautionary training to face unwanted hazardous situations.
And provide hand to hand field drill so that employees can face real situation
effectively.

b) A new telephone system installed

Hazards:

Toyota also must follows legal obligations under the Electricity at Work Regulations 1989

It might be dead for long time


Preventing unnecessary calls
Disconnection of line due to environmental hazards.
Control of risk

Replacing dead phones if not working at all


Use restriction to prevent unwanted call.
Check properly the cable connection.

c) Dangerous waste product

Control of Substances Hazardous to Health (COSHH) Regulation 2002 regulates handling


and discharging the Dangerous waste product and medical waste products. (lives, 2014)

This provides sufficient information about harmful products.


develops more effective safety control and health policies in Toyota Derby.
This also refers the limit of exposure of radioactive and hazardous materials.

4.3. Review health and safety policy and procedures

Toyota derby provides following health and safety policies-

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.

Differences between hazards and risks at 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.

4.4. Power Point Presentation

1. Welcome to the presentation

2. This presentation is about Health and safety policies in Toyota.


3. Introduction

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

Providing better workplace in Toyota.


Increasing improvement
Ensuring ISO 14001 which regulates health hand safety
Preventing fatalities and causalities.
5. Benefits of health and safety policies

Work as motivation factors


Increase productivity
Increase efficiency of employees.

6. existing regulations related to health and safety.

The Management of Health and Safety at Work Regulations 1999


The Manual Handling Operations Regulations
Health and Safety 1972
Control of Substances Hazardous to Health Regulations 2002
7.Consequence of Hazards

Increase fatalities and injuries


Decrease confidence in workplace
Lower productivity
Suffered huge loss

8. Main factors of Health and safety in Toyota

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.

10. this hierarchy of health and safety controls is used by Toyota.


11. Risk assessment

This is process to find potential l hazards and risk within the workplace by collecting ,
evaluating and analysis of Data.
12. Hazard prevention

Need to identify the hazards


Take precautionary actions
Controlling hazards is very much important.

13. Health and safety training

This training will reduce injuries and fatalities.


Ensuring that everyone has proper knowledge about health and safety law
Provide hand to hand training to prevent hazards.
14 Recordkeeping

Keep documentation of activities


Records all the fatalities and injuries happened in workplace.
Provide preventive measure

15. thank you everyone


Conclusion
This report provides insights of operational process of Toyota production system and how to
increase its efficiency in terms of cost, time, quality and customers relationship. To ensure
continuous development, it is important to establish Kaizen and Total Quality Management in
Toyota production system. The health and safety law which regulates safety and health in
workplace has important role in productivity and efficiency.

References
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Health-and-Safety/risk-assessment
[Accessed 22 february 2017].

wikipedia, 2017. Hazard. [Online]


Available at: https://en.wikipedia.org/wiki/Hazard
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Kincaid, J. (2003) Customer Relationship Management. Prentice Hall Professional.

Komarova, M (2017) It is time for business process reengineering. [Online]. Available at:
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Robertson, J. and Suznne (2017) Ten tests for requirements. [Online]. Available at:
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