REPORT ON BUSINESS RESEARCH METHOD IMPACT OF COMMERCIALS ON CROCIN.

GITAM SCHOOL OF INTERNATIONAL BUSINESS

Submitted to: Prof.R.Venkateshwarulu, Prof.Dr.B.Padmanarayan, submitted by, Dipinthi chakrabarthy,(1226112116), A.Shanthi (1226112106), Jay Krishna(1226112122), ` G.Sampath kumar(1226112149).

Acknowledgment
It is a great opportunity for me to write about subject like study on supply chain management of Toyota company. At the time of preparing this term paper I am gone through different books and websites which help me to get acquainted with new topics. I am actually focusing on those topics which are important for us to understand about this subject easily. I acknowledge with gratitude to Professor P.R.S.SHARMA B.Tech, MBA (Ph.D.) my teacher who was always helpful to me to complete this term paper & make me understand about the supply chain management. I have tried hard & soul to gather all the information and relevant documents about this subject.

Thanking you, G. Sampath kumar.

Introduction:
Toyota Motor Corporation is currently one of the model companies worldwide in many aspects of conducting a successful business practice, including supply chain management. They principles of Just in time, Kanban, lean manufacturing, Kaizen and others provides competitive edge for Toyota and provide efficiency in many business functions along with supply chain management. Other companies willing to increase their productive efficiency need to look at these principles above, and if the need arises, implement them into their own business practices. Supply-chain management at Toyota is an element of companys operations strategy which is thoroughly based on the Toyota Production System (TPS). It was developed in the 1940s by Shigeo Shingo and Taiichi Ohno. As Toyotas 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 Current situation of Toyota motors:

The logic behind every point of Toyota's supply chain, along with both the tactics and strategies you can use to build an outstanding system of your own. Toyota Supply Chain Management explains how to achieve balance and efficiency by focusing on:

Variety: Determine your variety of offerings based on operational efficiency and market demand Velocity: Maintain a steady flow through all processes of the supply chain Variability: Manage inconsistencies carefully to reduce cost and improve quality Visibility: Ensure the transparency of all processes to enable continuous learning and improvement.

Principles: Lean manufacturing skills Kanban Just in time Kaizen & other providers

Lean manufacturing skills: Lean manufacturing is the concept created by Toyota to make production development and the production system more efficient and remove waste from the process. It consists of three building blocks creating continuous process flow, the pull system, and leveling out the workload. 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 on pull system where the elimination of waste seen as a primary objective. Just in time inventory management allows a company to gain a competitive edge by not having to have a large amount of inventory in their warehouses, but only to order parts when they are actually needed. According to just in time philosophy new material will be produced only when old stock of that material has finished. The first building block for implementing lean manufacturing is to create continuous process flow to bring problems to the surface. Most business processes are 90%waste, and 10% value-added work . Firms can conduct a process mapping

to find the non-value-adding activities, and remove them. Shortening the elapsed time from raw materials to finished goods will lead to the best quality, lower cost, and shortest delivery time. The goal of lean environment is to create one piece flow

Kanban system: 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 restock this part. Kanban is well integrated in Toyotas production system, because in Toyota there is 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. Toyotas 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.

Just in time: A system that organizes the resources information flows and decision rules that enable a firm to realize the benefits of JIT principles. JIT is the system in manufacturing only what is needed when it is needed, in just in time. Basic operating principles: Pull system Continuous flow processing Take time. Total system from vehicle order up to delivery: Product order up to production planning Production sequential plan with various product by heijunka (leveled production) delivery with shortening lead time

. Part order, production and logistic system: _ Flow of Part Order to Supply _ Shortening Lead time of part order to supply KAIZEN PROCEDURE: kaizen , Japanese for "improvement", or "change for the better" refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, and business management. It has been applied in healthcare, psychotherapy, life-coaching, government, banking, and other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to eliminate waste (see lean manufacturing).

Effect of supply chain on the company: Toyota takes responsibility for procuring parts from supplier which increases reliability on inbound logistics. Suppliers are categorized as clusters based on geographic location and single truck picks up part from the cluster increasing the efficiency of supply chain.. By effective demand forecasting , production and supply chain activities are managed effectively . By leveling out production (heijunka) and synchronizing with demand and supply has helped to maintain stability in supply chain. Considering suppliers and dealers as partners, sharing profits with them. ABOUT SUPPLIERS: Returnable containers flow in reverse route After the parts are unloaded, the truck is reloaded with the corresponding empty returnable containers. At cross dock, parts are unloaded and staged for each assembly plant and then loaded to trucks which take parts directly to each plant .Parts are picked up from those suppliers by trucks on a milk route and delivered to regional cross dock. Company organizes many of its suppliers into clusters based on geographic location. Company establish partnership with third party logistic providers Since Toyota relies on JIT it has fewer but reliable tier 1 suppliers. Eg : Denso, Bridgestone etc ,Inbound Logistics : Supplier chain contains several levels tier 1,tier 2,.and so on. Parts and components are received from Tier 1 suppliers through inbound logistics. Suppliers provide thousands of parts and components that go into the vehicle.

Whole supply chain management of Toyota:

Enhancing Customer Satisfaction &Business Competitiveness: 1. On time delivery (D-1 until D > 99%): Fulfill various customer order in term of model, color & destination. Quick response to customer request (by swapping, delivery advice). Implementing Firm Order system by making accurate forecast, retail & stock plan, and keep appropriated standard stock (by model & color at Dealers / Branches). 2. Flexible order and operation: Reducing vehicle production lead time (3 days _ 1.5 days) Establish minimum & reasonable stock control system Optimum component/parts stock (1 day _ average 4 hours) 3.Best quality & competitive price: Provide good quality : one by one production & build-in quality. Cost reduction in inventory, logistic handling, and production. Reduce other waste in production activities (eq. repair, etc.) Increase employee awareness for quality, productivity & c

CONCLUSION: This paper discussed about lean manufacturing and Toyota production system. Several automotive companies and other industries have attempted to study and implement these concepts, with a high return on investment. Yet their effort is still considered as the implementation of only the surface core concepts. Therefore, this paper argues for introducing the concepts of lean manufacturing and Toyota production system in product development as well as manufacturing. Such reforms will improve the financial health of the industry at large. As mentioned earlier, the automotive industry is presently in a period of transition. It is useful to see the picture and the problems of the automotive industry as a whole. This paper assembles weak points and suggestions on how to solve them. These suggestions have been implemented by different automotive companies and other industries. Many papers state that the current practice in the automotive industry lies in between build to forecast and build to delivery, and build to order. However, none have been completely transferred to the complete build to order process. Therefore, it is argued here that the concept of build to order is considered the key reform of the current automotive industrys supply chain.