Briefing paper on Palestinian refugees in Lebanon

Dialectical Behaviour Therapy

Dialectical Behaviour Therapy Dialectical Behaviour Therapy (DBT) is a multimodal treatment model developed by Marsha Linehan, an American clinical psychologist, in the early 1980s (Palmer, 2002; Neacsiu, Ward-Ciesielski, Linehan, 2012; Linehan, 1993a).Advertising We will write a custom research paper sample on Dialectical Behaviour Therapy specifically for you for only $16.05 $11/page Learn More DBT is based on the principles and strategies of an early treatment known as cognitive-behavioural therapy (CBT) and was originally intended for individuals presenting with suicidal symptoms (Linehan, 1993b). DBT replaced CBT in the treatment of suicidal individuals because the latter’s strategies had failed since most clients responded to treatment by withdrawing or attacking the therapist. Moreover, counselor experienced a variety of difficulties with the use of CBT in treating suicidal clients, especially, the competing priorities concerning the need to decrease suicidality, teaching the clients new behavioral skills, and managing distress among the clients (Neacsiu et al., 2012; Linehan, 1993b). DBT is designed to provide a comprehensive approach to treating suicidal clients, such as people who are suffering from borderline personality disorder (BPD). The treatment is based on theoretical premises and the principles of validation, acceptance, and mindfulness (Feigenbaum, 2007; Swales, 2009; Wix, 2003). Apart from borderline personality disorder (BPD), DBT has also been used in the treatment of anxiety, posttraumatic stress disorder (PTSD), self-destructive behaviors, impulsive behaviors, and alcohol/drug problems (Feigenbaum, 2007). This paper summarizes different aspects of DBT the major concepts and premises, means of assessment, goal setting, processes, and applicability. The Philosophical Elements of DBT There are three major philosophical elements that underlie DBT including dialectics, Zen Buddhism, and behavioural science (Palmer, 2002; Neacsiu et al., 2012). The basic element of DBT in relation to behavioural science is cognitive-behavioural therapy. DBT is based on the therapeutic techniques of CBT, which emphasize on self-monitoring and collaborative efforts from both the client and the therapist (Palmer, 2002). However, it is important to note that some aspects of CBT are not effective in addressing the problems present among suicidal clients. In order to address the challenges associated with behavioural science approaches such as CBT in the treatment of individuals with BPD, the DBT approach incorporates the principles of Zen.Advertising Looking for research paper on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More Here, the Zen philosophy encourages people to forego their ideas regarding their view of reality, and focus on the current moment through acceptance, self-validation, and tolerance. From the Zen perspective, the world is perfect as it is and each moment of reality should be accepted without judgment (Robins et al., 2004). This principle is incorporated into the mindfulness component of DBT, which emphasizes on the need for patients to intentionally live in the present moment without judging, rejecting, or getting attached to the moment (Linehan, 1993b). On the other hand, counselors and their BPD clients will recognize that putting acceptance and change together in any treatment session is very difficult. Therefore, DBT incorporates the dialectical element, which emphasizes on the importance of synthesizing opposites. Here, dialectics is a very important component of DBT, especially in dealing with multi-problem clients, because it allows them to initiate behavioural change by means of acceptance and self-validation (Neacsiu et al., 2002). The dialectical philosophy encourages clients to take a holistic look at different perspectives, encapsulate opposites, and move on continuously. Dialectical Behaviour Therapy Assumptions Alongs ide the philosophical elements of DBT identified in the foregoing discussions, the treatment involves a number of assumptions about the client and the counselor. On the part of the client, DBT assumes that the clients are capable of doing their best to solve their problems. Furthermore, the therapist assumes that the clients cannot fail in the DBT treatment. Additionally, there is the assumption that the clients may not be the source of all the problems they are facing, but they must be willing to solve them either way. Most importantly, the therapy assumes that the lives of people suffering from BPD are unbearable, and therefore, the clients must be motivated to change their lives for the better (Neacsiu et al., 2012; Kliem, Kroger, Kosfelder, 2010). About the therapist and the therapy itself, it is presumed that the counselor has a responsibility in caring and helping the clients to change their ways and achieve their goals in life. Moreover, the therapist must conduct DBT with u tmost clarity, precision, and compassion while ensuring that the therapeutic relationship with the clients exemplifies a real interaction between equals.Advertising We will write a custom research paper sample on Dialectical Behaviour Therapy specifically for you for only $16.05 $11/page Learn More Further, it is presumed that the principles of behaviour apply to the therapist in the same way they apply to clients. On the other hand, the therapist needs support in caring and helping the clients suffering from BPD. Other overarching assumptions imply that the therapist can fail in delivering DBT and the treatment can fail even without the therapists fault (Linehan, 1993a; Miller, Rathus, Linehan, 2007). Theoretical Foundations of DBT The biosocial theory of borderline personality disorder informs the dialectical behaviour therapy. The theory hypothesizes that BPD arises when an emotionally-vulnerable person interacts with an invalidating environment (Lineha n, 1993a; Swales, 2009; Palmer, 2002). Emotional vulnerability refers to instances where an individual reacts excessively to less harmful stressors and takes long time to regain baseline emotions after the stressor is removed (Swales, 2009). When a growing child is exposed to an invalidating environment, it is probable that s/he will not have the opportunity to understand his/her personal feelings and experiences. Besides, this child may not be able to relate his/her responses to particular events in the real world as he/she lacks the support of the others in solving or coping with difficult/stressful situations, most especially when none acknowledges the problems associated with such situations (Huss Baer, 2007). Consequently, the child turns to the immediate environment for answers regarding his/her problems, but the environment may limit the demands that she makes on the significant others. In the long run, the child may begin hoping to gain acceptance from others as well as dev elop extreme emotions to make others to acknowledge her experiences. An obvious consequence of this erratic emotional response is that it prevents the child from understanding and controlling specific emotions. Furthermore, the child may not achieve emotion modulation because the situation does not allow her to acquire the necessary skills (Crowell et al., 2009). Overall, the child slips into a state of emotional dysregulation, which upon interacting with the invalidating environment, leads to Borderline Personality Disorder (BPD). Therefore, based on this theory, DBT is designed to help borderline patients to recover emotional control under validating environments.Advertising Looking for research paper on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More Means of Assessment/BPD Diagnosis Emotional dysregulation in a growing child can interact with the invalidating environment to cause BPD. As a result, emotional dysregulation is a central feature in the development of BPD (Neacsiu et al., 2012; Linehan, 1993a; Linehan, Bohus, Lynch, 2007). From a DBT perspective, emotions are considered as complex involuntary responses to both the internal and external environments. In DBT, such emotional responses are categorized into various subsystems, important to treatment because they are the main targets of different emotion regulation processes of DBT. These subsystems include emotional vulnerability to cues, triggers, response tendencies, nonverbal and verbal expressive actions/responses, and secondary emotions, which interact in different ways to produce a particular pattern of emotions. Therefore, one can assess emotion dysregulation by examining the way an individual alters or controls various subsystems of responses under average or no rmal conditions. Emotion dysregulation is characterized by excessive negative affect, irrational thoughts, impulsive emotional behaviours, dissociation under stress, and difficulties in controlling physiological arousal and in undertaking non-mood-dependent activities (Linehan et al., 2007). Various self-destructive behaviours, dysfunctional behaviours, and maladaptive responses are important indicators of emotion dysregulation. Goal Setting in DBT In DBT, goals for treatment are set through collaborative efforts involving both the therapist and the client. However, the therapist plays a major role in modifying the clients’ goals to fit into the treatment model. Here, a treatment target hierarchy is used in determining the problem focus in each treatment session. In most cases, the therapist gives the highest priority to addressing suicidal and self-injurious behaviours among the clients. These behaviours are commonly referred to as out-of-control and usually categorized into life-interfering, life-threatening, and severe quality-of-life-interfering behaviours. Once a client has achieved stability and control over these dysfunctional behaviours, then the therapy focuses on activities aimed stabilizing the clients’ emotions and alleviating trauma. Further, the therapy moves to activities that increase the clients’ self-respect and decreasing problems that cab interfere with the clients’ ability to achieve personal goals. Finally, the therapy proceeds to resolving the clients’ experiences and feelings of incompleteness (Koerner Linehan, 1992; Kliem et al., 2010). Moreover, it is imperative for the therapy to address various secondary targets, such as inhibited behavioural patterns, which may interfere with the progress made in treatment. Processes and Specific Techniques in DBT The main objectives of DBT are to enhance the clients’ capabilities and motivate them accordingly achieved by increasing the clients’ set of skilled behaviors, generalizing the learned behaviours to the natural environment, improving the clients’ motivation, reducing dysfunctional behaviours and eliminating their reinforcements, reinforcing effective behaviors and increasing the therapists’ motivation and capabilities. These functions of DBT are further supported by four major modes of treatment, which include individual psychotherapy, skills training group therapy, consultation teams, and phone coaching. On the other hand, DBT focuses on problem-solving by means of validation and dialectical strategies. Therefore, the treatment involves specific techniques such as change strategies, validation strategies, dialectical strategies, communication strategies, and case management strategies (Neacsiu et al., 2012). Moreover, these broad categories involve more specific processes and techniques of handling borderline clients. There are many treatment techniques borrowed from CBT, such as targeting, attention t o in-session behaviours, chain analysis, opposite action, and observing limits (Linehan, 1993a; Dimeff Linehan, 2001). Applicability DBT is the most widely investigated psychosocial model of treatment for BPD. A myriad of studies have tested the efficacy of DBT in resolving different symptoms associated with BPD in a variety of populations and settings. In studies involving highly suicidal patients, the researchers found out that DBT was effective in resolving a number of dysfunctional and maladaptive behaviours such as suicide including some cases of severe suicidal behaviors and self-jury among the participants as compared to treatment as usual (TAU). Furthermore, it has been shown in these studies that the tendency to use psychiatric facilities was less among BPD clients who had been treated using the DBT approach (Neacsiu et al., 2012; Bedics, Atkins, Comtois, Linehan, 2011; Pistorello et al., 2012; Harned et al., 2009; Iverson, Shenk, Fruzzetti, 2009). On the other hand, the effectiveness of DBT has been investigated in the treatment of other psychosocial issues, and there are promising results, particularly in treating anxiety, substance abuse, eating disorders, ADHD, and treatment-resistant depression (Rizvi, Steffel, Carson-Wong, 2012). References Bedics, J. D., Atkins, D. C., Comtois, K. A., Linehan, M. M., (2012). Treatment differences in the therapeutic relationship and introject during a 2-year randomized controlled trial of dialectical behaviour therapy versus nonbehavioural psychotherapy experts for borderline personality disorder. Journal of Consulting and Clinical Psychology, 80(1), 66-77. Crowell, S. E., Beauchaine, T. P., Linehan, M. M. (2009). A biosocial developmental model of borderline personality: Elaborating and extending Linehan’s theory. Psychological Bulletin, 135, 495-510. Dimeff Linehan, M. M. (2001). Dialectical behaviour therapy in a nutshell. California Psychologist, 34, 10-13. Feigenbaum, J. (2207). Dialectical be haviour therapy: An increasing evidence base. Journal of Mental Health, 16(1), 51-60. Harned, M. S., Chapman, A. L., Dexter-Mazza, E. T., Murray, A., Comtois, K. A., Linehan, M. M. (2009). Treating co-occurring Axis I disorders in recurrently suicidal women with borderline personality disorder: A 2-year randomized trial of dialectical behaviour therapy versus community treatment by experts. Personality Disorders: Theory, Research, and Treatment, 5(1), 35-45. Huss, D. B., Baer, R. A. (2007). Acceptance and change: The integration of mindfulness-based cognitive therapy into ongoing dialectical behaviour therapy in a case of borderline personality disorder with depression. Clinical Case Studies, 6(1), 17-33. Iverson, K. M., Shenk, C., Fruzzetti, A. E. (2009). Dialectical behaviour therapy for women victims of domestic abuse: A pilot study. Professional Psychology: Research and Practice, 40(3), 242-248. Kliem, S., Kroger, C., Kosfelder, J. (2010). Dialectical behaviour therapy for b orderline personality disorder: A meta-analysis using mixed effects modeling. Journal of Consulting and Clinical Psychology, 78(6), 936-951. Koerner, K., Linehan, M. M. (1992). Integrative therapy for borderline personality disorder: Dialectical behaviour therapy. In J. C. Norcross (Ed.). Handbook of Psychotherapy integration (pp. 433-459). New York, NY: Basic Books. Linehan, M. M. (1993a). Cognitive-behavioural treatment of borderline personality disorder. New York, NY: Guilford. Linehan, M. M. (1993b). Skills training manual for treating borderline personality disorder. New York, NY: Guilford. Linehan, M. M., Bohus, M., Lynch, T. (2007). Dialectical behaviour therapy for pervasive emotion dysregulation: Theoretical and practical underpinnings. In J. Gross (Ed.), Handbook of emotion regulation (pp. 581-605). New York, NY: Guilford. Miller, A. L., Rathus, J. H., Linehan, M. M. (2007). Dialectical behaviour therapy with suicidal adolescents. New York, NY: Guilford. Neacsiu, A. D., Ward-Ciesielski, E. F., Linehan, M. M. (2012). Emerging approaches to counseling intervention: Dialectical behaviour therapy. The Counseling Psychologist, 40(7), 1003-1032. Palmer, R. L. (2002). Dialectical behaviour therapy for borderline personality disorder. Advances in Psychiatric Treatment, 8(1), 10-16. Piatorello, J. Fruzzetti, A. E., MacLane, C., Gallop, R., Iverson, K. M. (2012). Dialectical Behaviour therapy (DBT) applied to college students: A randomized clinical trial. Journal of Consulting and Clinical Psychology. Advance Online Publication. Rizvi, S. L., Steffel, L. M., Carson-Wong, A. (2012). An overview of dialectical behavioral therapy for professional psychologists. Professional Psychology: Research and Practice. Advance Online Publication. Robins, C. J., Schmidt, Linehan, M. M. (2004). Dialectical behaviour therapy: Synthesizing radical acceptance with skillful means. In S. C. Hayes, V. M. Follette, M. M. Linehan (Eds.), Mindfulness and acceptance: Expanding t he cognitive-behavioural tradition (pp. 30-44). New York, NY: Guilford. Swales, M. A. (2009). Dialectical behaviour therapy: Description, research and future directions. The International Journal of Behavioral Consultation and Therapy, 5(2), 164-177. Wix, S. (2003). Dialectical behaviour therapy observed. The British Journal of Forensic Practice, 5(2), 3-7.

Leopard and human conflict in India Essay Example | Topics and Well Written Essays - 750 words

Leopard and human conflict in India - Essay Example Following the drastic reduction of human activities in the Chilla Range of Rajaji National Park in India, a highly populated tiger species is affecting the existence of leopards (Harihar, Pandav, & Goyal 1366). Therefore, the latter brings up a reason to investigate some of the mechanisms of niche partitioning mainly in the leopard (panther pardus) inhabited areas of India. Based on assumptions of scholars, they opted to research on the possibility of an overlap between the tiger and leopards species. Assumptions directed that optimal habitats would now have tigers as the dominance therefore forcing leopards to move to the periphery of the protected areas (Harihar, Pandav, & Goyal 1365). Leopards’ encroachment in the Indian protected areas inhabited by humans is highly rising and causing drastic effects. Attempts to minimize the effects of human –wildlife conflict in the area have proven futile and it has become necessary to understand the mechanisms by which the conflicts appear (Pradhan, Dar, Rather, Panwar & Pala, 916). The latter is the only way to find a lasting solution for the problem. In addition, in a densely populated state like India, protected areas are minimal. In this case, large carnivores are very many, therefore, humans use landscapes as important habitats required for gene flow to occur between protected areas. Besides, humans in these landscapes possess domestic animals, which appear as easy prey for the leopards that roam around. Consequently, leopards frequent the protected areas in search of prey such as livestock and dogs. Therefore, it is arguably very vital to take care of these protected areas for the good of the human species (Athreya, Linnell, Krishnaswamy & Karanth, 2013). In India, wild cats such as leopards, tigers and lions when captured along human protected areas, do not face lethal measures due to cultural affiliations but translocated to a faraway place (Athreya, Odden Linnell, &

World Water Wars Essay Example | Topics and Well Written Essays - 1000 words

World Water Wars - Essay Example It all starts with rain pouring down on soil, the soil soaking some of it to replenish the plants and trees and some to replenish the ground water supply. The leftover rain water is drained back into the sea which again is heated by the sun creating water vapors which again turn into heavy clouds that provide rain. So where did it all go wrong? Why the never ending cycle is not enough to supply famine regions of Africa with fresh drinking water? These are the questions that actually change our perception about water because now water is not a natural resource available for one and all by God but a valuable commodity, privately owned and exploited for corporate profit. Further on, the perception that building more and more dams would solve our problem after watching the documentary is completely reversed. Dams are nothing but elements choking the river nutrients from flowing further. 2) Blue Gold: World Water Wars The documentary (Bozzo, â€Å"Blue Gold: World Water Wars†), ske tches a realistic picture of what the world is beneath the veil of glamour, advance technology and looming structures of corporations. It creates awareness regarding the importance of water and the depletion of it as our most important resource. Not visible to the common eye, water is going to be the reason of potential conflicts and the United States has already created a new world map defining the conflict regions. These conflicts will turn into World Water Wars. Ninety seven percent of our planets water is salt water and only three percent of it is fresh. The conflict is between those regions who own that three percent and those who wished that they could own it. Wishes do come true. The government decides to privatize water and in the process creates giant water firms that are now influencing from water prices to foreign policies. The documentary (Bozzo, Blue Gold: World Water Wars†) is a wakeup call for all of us who are still under the illusion that water is the last thi ng that could trouble us, since we have all the pools, fountains and lakes around; how could we possibly be having a water crisis? 3) The crisis At first like in the Mayan civilization, civilizations prospered around water and strategically populated around areas that would fulfill their water requirements. However, as the world advanced the system was reversed and water was adjusted to according to where we lived instead of us adjusting to where it was. This has developed a huge problem for us and for the generations to come. We have polluted the water to such an extent that no matter what huge water corporations say; even the bottled water that we drink is polluted. Poisonous water of Mexico full of wastage flows to landscapes that grow crops sold back to us; in short our daily food intake includes the poisonous water whether we like it or not. Increasingly, dangerous water diseases are more deadly than any other disease. The fact that our fresh water source is depleting at a fast er pace has forced us into obtaining ground water at a faster rate not giving it enough time to be replenished. Natural disasters are also a reason of our increasing dependency on aquifers. Excessive pumping of aquifers may lead to disastrous events such as giant sinkholes forming in Florida. The fact that we pump billions of gallons of water every day is decreasing our ground water reserves and is putting more pressure on sea; the result of it is tsunami and earthquakes. Also now more rain does not permeate in the ground because it is covered with paved roads therefore again creating pressure on the ocean. 4) Creation of water company giants Suez, Veolia, RWE, Thames, Coca Cola, and Nestle are powerful water companies who have privatized vast volumes of water that was at first a

Cola Wars Case Study Example | Topics and Well Written Essays - 2000 words

Cola Wars - Case Study Example In the 21st century, Coke and Pepsi face the new era trying to ascertain if the wars would still continue on the ‘cola’ products and ultimately discern the location of their future battlefield. External scanning of Coca-Cola and Pepsi Cola The case is designed to specifically address the following concerns: a) Why, historically, has the soft-drink industry been so profitable? A discussion of the US soft drink industry revealed that the soft drink industry was actually pioneered with the invention of Coke in 1886 and Pepsi in 1893. Both companies captured the taste of the American public in their ability to quench the thirst of their target markets through the innovatively concocted carbonated drinks. These companies’ product life cycles rationalize the profitability during their historical growth, from the introductory stage, to growth and maturity. During the introductory to growth stages, more and more people who were able to try their CSDs recognized the abilit y of the product to satisfy consumers’ needs: quenching thirst, building relationships, sharing moments, and socializing, among others. Case facts revealed that the historical consumption of CSD have continued to exhibit increasing trend since the 1970s when 23 gallons were consumed by the Americans annually and rose substantially to 52.3 gallons per year by 2004 (Case facts: Exhibit 1, p. 16). The increase in consumption reveals continued increase in demand for CSDs that validate and rationalize the profitability of the soft drink industry. In fact, due to the prolific demand for Coke during its introductory stage, several trademark infringements were legally tried in court attesting to the lure of high profit potentials of the CSD business. Further, expansion into other countries significantly contributed to financial success and enhanced brand awareness and recall on a global scale. Other factors that contributed to the profitability of the soft drink industry were the reg ular updates and design of strategies that innovate the images of both Coke and Pepsi. By designing new product alternatives, advertisements and promotional campaigns, and distribution outlets and strategies, more varieties were offered to the consumers and price off discounts enabled more people to avail of the products at cheaper prices. By offering product alternatives, such as the diet sodas, consumers were receiving benefits in terms of consuming less sugar in their sodas. In addition, the strategies of working to improve â€Å"system profitability† by concerted efforts of concentrate makers and bottlers enabled the soft drink industry to revitalize and retain financial success. Finally, when the demand for CSD reportedly reached a plateau in the US market, both Coke and Pepsi scanned international markets for their products. As emphasized in the case, â€Å"waging the cola wars in non-U.S. markets enabled Coke and Pepsi not only to expand revenue, but also to broaden t heir base of innovation† (Case Facts: Internationalizing the Cola Wars, p. 15). The secret to the profitability of the soft drink industry therefore lies in innovating the 4Ps in marketing: product, price, promotion and place and ensure entrenched leadership on a global scale. Further, the application of strategies in their respective advertising campaigns has

Operations Management Analysis of Asda

Operations Management Analysis of Asda Introduction: Every function of the business has its significance, importance and place in the business organizations. Not a single department, function or activity can be declared as sole vital for the life of a company. It is the combined effort of all the departments and joint work of function involved, which brings success, revenues and business development. However, the key factor of the business, are divided in some shapes; to get a clear and visible picture of the overall business activities, being carried out by the organization. Operations management, financial management, marketing, sales, customer service, quality assurance, information technology and research and development are largely the main functions of a business entity in 21st century. No one can declare any of these functions as the sole guaranteer for the corporate success of the company, every function has its competitive and comparative advantages and also everyone has some unique characteristics which help in making that particular function more important. However, there is a function which is quite visible in all of these functions, or we can say that it is a facilitator of all the departments and functions in any organization. That particular function is called operations. Whatever may be the department or function, there will be a process and procedure involved in the work flow of that particular unit. Operations are everywhere, whichever department we select; we will see a line of operations and standard operating procedure. This indicates how important and integral it is, to have a transparent and effective operations management system. Operations management not only gives insight about the efficient and effective workflow of a particular department but also helps in getting a smooth workflow all over the organization. The process and strategic planning is quite imperative for the success of the business, but the effective execution of that particular plan is far more important than that. Effective operations management can help in achieving the group, departmental and organizational goals achievement in an effective, efficient and less costly way. So we can declare that, operations management ensures the life of the company. This report is a case study of ASDAs operations management mechanism and is purely dedicated to find out the rights and wrongs in the operations of ASDA. Operations Management: Operations management is a management function and subject, which is largely concerned with supervision, design, and redesigning of the business operations in the making of goods and services.  [1]  It has two dimensions, one is company dimension and the other one is customers dimension. The company dimension of the operation management is dealing with the operations in a cost effective, efficient and less costly ways, while the customer requires the greater quality of the product and service. So in business operations, an organization has to ensure, not only its own circumstances and financial position but also the customers demand. In simple words, the operations management is an organizational function, aimed a smooth flow of the processes to convert the input into the required output, in an efficient and cost effective way. So the quality assurance of the product offerings and their cost, are the key points of studying the operations management. Operations management usually refers to the production of goods and services independently, even though the difference between these two central types of operations is ever more difficult to make as producer convinced to combine product and service offerings. More commonly, operations management targets to increase the satisfaction level of value-added actions in any of the given processes.  [2]   The fundamental objective of the operations management departments attempt to create the desired balance between the costs and revenue to  get the maximum net operational profit, but at the same time to ensure the quality of the product and service. Operations management includes the activities that are involved in the process of production and distribution of the goods and services. Normally, the small companies do not involve in the operations management processes but major businesses stress upon properly keeping up with the operations management processes and normally they do not change the processes rapidly. Company Overview: ASDA is a British superstore chain which retails food, clothing, toys and general commodities. It also has a mobile telephone network, ASDA Mobile. It has its head office in the ASDA House in Leeds, West Yorkshire.  [3]  ASDA became a subsidiary of the American retail giant Wal-Mart, the worlds largest retailer, in 1999. And today, it is the third largest chain in the UK after Tesco and Sainsburys. In December 2010, 16.5% of UK grocery stores used ASDA for their major shop, with special offers the most bragged motive for its reputation.  [4]   Asda Stores Limited was established with the name of Associated Dairies Farm Stores Limited in year 1949. However, the approval of the Asda name occurred in 1965 with the merger of the Asquith chain of three supermarkets and Associated Dairies; Asda is an abbreviation of Asquith and Dairies, often capitalised. As Asda is subsidiary of Wall-Mart, so the focus of its marketing promotions have frequently been centred only on price, with Asda kept on promoting itself under the slogan of Britains Lowest Priced Supermarket, 13 Years Running. Because it is a wholly owned division of Wal-Mart, so, is not necessary for Asda to announce quarterly or half-yearly earnings. ASDA employs more than 150000, working on its more than 375 locations. The operating income of the company has been declared around  £638 millions last year. Andy Clarke is the chief executive officer of ASDA and Andy Bond is chairman. Asda helped wall-mart getting success and market share in British market.  [5]   Under the leadership of strong people, ASDA has been pretty successful in competing with its rivals in the last many years. Today, although it is ranked on 3rd in terms of market share after Tesco and Sainsbury, still its reputation and public relations have been out standing. Objective: The objective of this study is to analyse the central operational functions of Asda and their associated factors, problems and deficiencies. In this regard, we will discuss the fundamental operations management theories and their application at Asda. We will also try to focus on the operational problems being faced by Asda currently because of increasing competition and financial crisis as well. In this regard, the key operational and functional matter of the company will also come under discussion. Problems and Issues: We have been observing a very sharp decline in the sales of the grocery store and shrinking growth for the last 3years or so, due to the financial crisis. In this scenario, the major problem for the companies is to sustain. For surviving and sustaining in this environment, there are two ways to be adopted. The first one is of increasing the revenues and the other one is of cutting the cost of doing business. In both of matters, the operational management capacity of the organization is challenged and the team is under strict pressure. Competition has also increased and the competitors are trying very hard to gain the market share, in order to retain Asdas market share, so here the company needs to have implemented effective operation management system and tools so that the production of goods and services will be maintained smoothly and customers demand is fulfilled quickly So the focus of this report will not only be on the operations management of the company but also be on the dealing with the aftermaths of financial crisis with the help of operations management theories and practices. Operations Management and Value Chain: The concept of value chain is very important from the perspective of operations management. It is the fundamental concept on the basis of which all the operations building, is erected. Michael Porter is considered as the father of the value chain philosophy. He coined the idea of value chain in his book Competitive Advantage: Creating and Sustaining Superior Performance (1985). This idea brought about a very positive change in modern day strategic management and marketing. Nowadays all successful companies give due importance to the concept of value in service delivery. Value means a mental perception of a product/service by the customer for which he is paying the price. A person estimates the value by a simple equation; Value = Benefit/cost.  [6]  The concept of value is understood to be a core idea in marketing and strategic management. Many theories revolve around this concept of value; like value chain analysis and profit value chain etc. The concept of service value chain is pretty similar to the Porters value chain idea. There is just a slight difference between them in terms of their practical implementation. For getting the true insight about these two models; fist we should understand the Porters value chain model. Porter argued that the customer; when he pays the price for the product or service, he is not basically paying for the product or services. He is paying the price of the perceived value which is delivered to him by the provider. If his benefits estimation exceeds the cost of the product or service, he will be satisfied and vice versa. So the core area of concentration in marketing must be to enhance the value so that the customer may be satisfied and come back again for the same value.  [7]   Value is not added on the corporate level. It is added from the operational level and with the efficient interlinks of the various functions. An organization is involved in two sorts of functions; the primary and core functions and the support functions. With the proper integration of the functions it can achieve the superior value. This diagram will further elaborate the Porters value chain model. The primary functions include inbound logistics (Warehousing raw material), operations (Process of converting raw material into finished goods), outbound logistics (finished goods inventory packaging), marketing and service (selecting a target market and fulfilling its demand and after sales service provision etc.) While the support functions include the firm infrastructure, (its design, polices and procedures) HRM (hiring people, firing and training them etc.) Technology (technology enabled management to deliver quality and value), and procurement (purchase and warehousing). Now we look at these main operations management functions separately, along with their complete reference to the organization of our concern. The Value Chain of ASDA: Inbound Logistics: The Inbound logistics operations of Asda are presented in its totally inclined and agile form and also show the commitment of the overall low price strategic management o. As the company is among the major market players so it has the place and economies of scope which are considered as the key bargaining powers, it helps to achieve low costs through the suppliers of the company. The up-gradation of the IT and other functions of the company is a routine matter and with the improved order-taking system, the company has made it among leaders. Out bound Logistics: Asda is also working with all retail segments, physical ones, online and offline ones. As it is a subsidiary of Wall-mart, so it has to operate directly with all of the operations included in outbound logistics. The companies is always keen to of develop processes and tools to produce and distribute the goods and services effectively and efficiently. Asda has designed a variety of formats and types related to the stores, it will be implemented strategically with the aim of maximum exposure of the customer. The formats include the Express, Superstores, Metro, Extra and Homeplus, these ranges are divided and segmented according to the target customers  [8]  . Marketing and Sales Programs: Asda has also introduced incentives and various schemes for the benefit of the customers. Issues related to the environment, climate changes, public awareness, reduction of waste and the carbon footprint involved in the preparation of the meals. The company is always striving to satisfy the customers and makes them happy. This indeed has helped it gain greater respect in the eyes of the customers. Services: Asda is following what wall-mart is doing; the price leadership. The famous slogan of always low price depicts the philosophy of wall-mart. It is also implementing the strategies related to cost leadership and differentiation, the aim is to improve the customer service. The focal point of the value chain here is, is to create a valuable service which may result in a high degree of value as compared to the other service providers. Asda has some very efficient strategies that are streamlined to apply the useful services in order to keep the customers. The main focus here is to reduce the cost of production and operations and hence gain a leadership position. There are some problems in the system, but can be resolved with the proper research and development. Technological Factors: In todays globalized world, the leadership in the business can only be achieved through leadership in technology. Technology is an effective way to make the business more efficient, effective. It may happen that sometimes extra efficient use of technology may produce negativity, however this can be minimized. Asda has to take into consideration lots of matters related to technology, but as the technology is among major macro-environmental variable and it has influenced development of the Asdas products and services. Few years back when Wall-mart invested around $6 billion in its IT function to introduce RFID, they also introduce the same in Asda as well. This has increased service orientation of the business and customers are delighted. So we can say that technology is very important ingredient in gaining advantage over competitor in the operations management. Information Technology and Integration: Innovative technology has helped companies and the customers, in various functions and ultimately the rate of customer satisfaction has increased. Now the desired products and goods are available easily. Companies have individualized their services to make the customer happy, and hence the grocery shopping has become pretty suitable with easy access. Asda works on the Customer is Always Right policy to improve its service orientation and has installed various IT gadgets to make the system more efficient. Here is a list of those technology gadgets, which are being used by Asda in its business operations to make the customer more satisfied. Self Check-out machines. Wireless Devices. Electronic Shelf and Labeling Electronic Tracker Electronic Fund Transfer System Radio Frequency Identification (RFID). These technologies have increased the value of these activities being performed in stores and making it more efficient. Now you have all kinds of solutions available under one roof of Asda. I.T. Integration: In this challenging time, the corporations are facing a rapidly increasing rivalry with changing environment and business tendencies. For long term survival in the business, the companies have to predict the change and adopt it as well. To endure and compete in this modern world it is compulsory to innovate in the technology, operational processes and improvement in the products and services. When you are in the business of retailing, you have to keep these things in your mind. You have to ensure; Proper Implementation of the systems to control and record all the stock. Arranged record of all the previously delivered products. Analysis of every business transactions properly. The above mentioned are some factors that should be analyzed properly, as IT has many solutions that are beyond the traditional support role. Asda should also have adequate execution of extranet service it will be beneficial for the company. Here the internet will help to create customers circle and flow of customized information among the business partners and the company. Asda has taken an initiative to introduce the extranet system. The system can provide connection with the business partners online and provides the opportunity to build relationships with the partners and delivering the easiest way of accessing the retailing services of Asda. There are many technological advances and systems that can support business operations. Asda has implemented some which includes like wireless devices, intelligent scale, electronic shelf labeling, self checkout machine and radio frequency identification systems. These systems can help the company in achieving its long term and short term goals and also the target to control the cost of operational processes and provide proper control upon the volume of the products and services. Store and Inventory Management: The inside store inventory management system of Asda is very effective because of the RFID technology used to store the information of the inventory and dealers information is also available with them which helps in making the process much reliable. Channels management system: The way it deals with its suppliers and other business partners that is really recommendable. As we discussed early that, value chain means to take care of not only your own value but he value chain of your network partner. Asda is working with a vast variety of suppliers across the world, being a major retailer with a diverse range of products and employed employees from very different ethnic groups and cultures. It is included in the policy of the company that it should maintain very healthy relationships with the suppliers and work with mutual concerns. The addition of technology in controlling the work pattern with the suppliers can improve the communication of the company with the suppliers. Asda has a good network of communication with the suppliers because of Wall-mart but still it need to improve and add a technology that will be easily accessible by the suppliers and understandable also at the same time. The communication network should be very clear and effective between the supplier and the company. The record of all the required products should be clearly mentioned by the company to the supplier it will help in building a long term business. The contractors in the loop will be able to promote the orders and it will improve the conditions and steps included in the supply chain. However, we see some loop holes in trade union relationship. In August 2005, the manager of a depot in Wakefield spoke out what were called foreign-sounding names over the communal address system ordering them to report instantaneously to the managers office. At least one was threatened with the sack unless he produced his passport the next day. The highly public initiative by management, which came within weeks of the 7 July bombings in London was followed by a flurry contempt for Muslims and their religion.  [9]   Loop Holes in the System: In December 2007 Asda, Sainsburys and other retailers admitted to price fixing dairy products between 2002 and 2003. Asda commented, Everyone at Asda regrets what happened, particularly as we are passionate about lowering prices. Our intention was to provide more money for dairy farmers, who were under severe financial pressure at the time. So far in total these retailers have been fined  £116  million. Apart from this, we can see some of these problems Asda is leader brand and has massive business around the world. The strategies to control the business and increase the customer satisfaction and maximize the revenues are the ultimate goal of the company. There are some issues that are found within the company that are follows: Lack of expertise. No record maintenance of the stock. Slow delivery to the customers Logistics deficiency No proper control of distribution channels. Recommendations: On the basis of the secondary data it has been proved that Flexibility in the work place is required because than the change will be adopted easily. The cost structure is varied at multiple places. In order to implement some efficient functions following steps should be taken: Customer Service Strategic Procurement Supplier Connectivity and Order Fulfilment Manufacturing Flow Portfolio Management Sales Cycle Efficiency Reduction in unproductive time Long term plans should be made related to technology The above mentioned factors are at the initial level in the Asda company and can be handled very easily as Asda has many excellent and efficient ways to solve major problems. Asda also always takes care of its systems and processes but the only problem is the adoption of change which is very slow. Asda is a very large company which includes a large number of technological systems that are developed for the benefit of the company. Company also believes in fast transactions but the delivery process is still very slow in many areas, the customer order is sometimes ignored also due to lack of a communication tool. Approach to Operations Improvement Effective operations and processes allow a business to maximize its efficiency as well as revenues. It is necessary to understand the optimizing and streamlining the business activities and processes so that the output can be maximized. The processes should be built purely for the purpose of maximizing the customer satisfaction, profitability and increase effectiveness in the output. To deliver the right good at the right place on the right time is the ultimate goal of the company but deeply requires the integration of the supply chain management and business processes and the contribution of buyers and suppliers, also joint product development, common systems within the company franchises and frequently shared information with the customers, suppliers and vendors.

History of Andersonville Prison Essay -- Andersonville Prison Civil Wa

History of Andersonville Prison When one turns on the television today they are made witness to all the crimes that are present in society. It is impossible to sit through thirty-five minutes of news without anger and rage becoming aroused. This is because society is bothered by infinitesimal paraphernalia. Society also believes in human rights and punishment for those who violate such rights. Yet what constitutes humanity? Ever sit there and watch the news and wonder just how far humanity reaches? When is it time to say this is a human rights violation? Every wonder when someone’s morals and ethics begin to effect their ability to do their job? Ever wonder why in every news story the â€Å"bad guy† always become caught? Ever wonder how many people on death row might not be guilt? Some of them could have even been used as scapegoats. Yet how does one become a scapegoat? Could someone out there have that much hatred and anger to blame one person for the faults of many? Is the need for blame significant ? Does desire lead to more hatred and evil? What does it feel like to be blamed for something that might not be wrong, and to be put on trial knowing that the jury wants to blame someone? In society and in the United States since its founding, there has been a need to place blame. Imagine how the person being blamed would feel. Henry Wirz did not have to image it; he lived through it and died for it. Someone is always to be blamed, even if they were just following orders. Orders which can only go so far until humanity takes effect. Henry Wirz was used as a scapegoat for war crimes committed during the Civil War at Andersonville Prison, however that does not justify his acts or make him an American hero. Ever take a midnight train to Georgia? No, well ever drive through Georgia? When driving through Georgia on State Road 49, there is a little town called Andersonville that is very easy to miss. To many it is just another town. Yet this town has its own trail. The Andersonville Trail is a small brown dirt road that leads visitors to the Andersonville National Historic Site (Roberts xi). This National Historic Site looks like a â€Å"well- tended† national cemetery. On closer examination, this cemetery is nothing like Arlington (Roberts xi). â€Å"In this national cemetery, the marble headstones are so close together, they almost touch. The markers appear to be one long head... ... Confederacy should face the truth as did Eliza Frances Andrews, who wrote of Andersonville: â€Å"it is horrible, and a blot on the fair name of our Confederacy† (Futch 122). That is exactly it, Andersonville was a blot on the Confederacy not on just Wirz, yet Wirz was blamed. Does this seam fair? Hardly. What happened at Andersonville was a repercussion of the Confederacy’s inability, not on the inability of Henry Wirz. Bibliography Denny, Robert. Civil War Prisons and Escapes. New York, New York: Sterling Publishing Company, 1993. Futch, Ovid. History of Andersonville Prison. Indiantown, Florida: University of Florida Press, 1968. Hillstrom, Kevin. American Civil War Biographies. Michigan: The Gale Group, 2000 Levitt, Saul. The Andersonville Trial. New York, New York: Random House, 1960. Murphy, Richard. The Nation Reunited. Canada: Time-Life Books, Inc. 1987 Roberts, Edward. Andersonville Journey. Shippensburg, PA: Burd Street Press, 1998 Robertson, James: Tenting Tonight: A Soldier’s Life. Canada: The Time-Life, Inc. 1984. Shaw, William B., et al. A Photographic History of the Civil War. Six Volumes. New York, New York: The Blue and Grey Press, 1987.

An Analysis of Toyota’s Strategic Procurement and Supply Chain Management

Purchasing & Materials Management| | Strategic Procurement & Supply Chain Management| Introduction The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry.Toyota as a name, a company, and as a brand has become synonymous with Quality. At the heart of its success, lie family values that have been passed down; a norm that has become the Organizational Culture of Toyota – The Quest for Excellence, and The Passion to Lead. Toyota’s achievement of excellence stems from implementing lean production, or which they refer to as ‘The Toyota Way’. The most visible product of Toyotaà ¢â‚¬â„¢s quest for excellence is its manufacturing philosophy, called the Toyota Production System (TPS).We have selected to apply this topic to Toyota, because to perfect their way of lean production, they work on it from the root; i. e. their suppliers, and purchasing strategy. Scope of Project Analyzing the strategies of Toyota, and how they implement it in their purchasing and procurement policy. Also, analyzing how Toyota selects it suppliers and what selection processes do they go through; and also conducting an analysis of Toyota’s supply chain and its supply chain management. Limitations This study was really difficult to attain, as personal interviews or nteractions with Toyota’s direct employees was beyond our budgets to conduct. This study is a result of hard work and extensive internet and textual or written research from more than ten websites and three books. Also, the study of Toyota was too large and very difficult to summarize into the limited requirem ents of this paper. Company Background The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the world's leading manufacturers of weaving machinery. The Toyoda Automatic Loom Works was then headed by Japan's â€Å"King of Inventors† Sakichi Toyoda.The patent rights to one of his machines had been sold to Platt Brothers (UK) and provided the seed-money for the development and test-building of Toyota's first automobiles. August 2007 marked the 70th anniversary of TMC. The fledgling company founded by Kiichiro Toyoda, Sakichi's son, has since blossomed into the leader that it is today. In 1950 the company experienced its one and only strike. Labour and management emerged from this stoppage firmly committed to the principles of mutual trust and dependence, and that corporate philosophy still guides T0oyota’s growth today.Production systems were improved in the late 1950s, culminating in the establishment of the Ã¢â‚¬Ë œToyota Production System. ‘ It became known as TPS in 1970 but was established much earlier by Taiichi Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the system is a major factor in the reduction of inventories and defects in the plants of Toyota and its suppliers, and it underpins all of Toyota’s operations across the World. Toyota launched its first small car (SA Model) in 1947.Production of vehicles outside Japan began in 1959 at a small plant in Brazil, and continued with a growing network of overseas plants. Toyota believes in localizing its operations to provide customers with the products they need where they need them; this philosophy builds mutually beneficial long-term relationships with local suppliers and helps the company fulfill its commitments to local labour. Over and above manufacturing, Toyota also has a global network of design and ‘Research and Development' facilities, embracing the three major car markets of Japan, North Am erica and Europe.In every community in which the company operates, Toyota strives to be a responsible corporate citizen; close relationships with people and organizations in the local community are essential contributors to mutual prosperity. Across the world, Toyota participates enthusiastically in community activities ranging from the sponsorship of educational and cultural programmes to international exchange and research. Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while competitors typically require two to three years.Toyota is benchmarked as the best in class by all of its peers and competitors throughout the world for high quality, high productivity, manufacturing speed, and flexibility. Toyota automobiles have consistently been at the top of quality rankings. Strategic Analysis To better understand a firm and its placement of its strategies, we must conduct an analysis of factors that might affect its selection of strategies. SWOT Analysis Strengths * Toyota Motor Corporation is the world’s largest vehicle manufacturer by production and sales. * Toyota is best known for environmentally safe, quality, reliability, durability and value for money. Toyota’s Camry and Corolla have been the top-selling cars in their respected categories; in the past eight out of nine years. Also, Toyota produces the globe’s best selling hybrid car, the Prius – which by 2010 had surpassed two million sales worldwide. * Strong distribution and marketing efforts focused on meeting diverse needs, high quality sales and services, and close involvement with customers. * Low cost, high quality factory operations guided by just in time. * Toyota maintains long-term partnerships with suppliers, and strategic partners. Toyota holds the competitive edge of being the undisputed quality leader in automotive marketing. * Strong brand equity. * Diversified product portfolio (Lexus, Daihat su, Hino) leading to increasing customer base. * Toyota’s success allows it to invest heavily in Research and Development and in the future. Weaknesses * From the last quarter of 2009 through to the 1st quarter of 2010, Toyota had recalled more than 8 million cars and trucks globally in numerous recall campaigns, and temporarily stopped production and sales. * Toyota was badly hit by the 2008 financial crisis, and declared its first annual loss in its 70 years history. Toyota does not have detailed customer segmentation * Customers are not involved in the process. * Toyota places a very high level of responsibility on employee shoulders. * After the 2009-2010 recall crisis, Toyota was criticized for not having or employing enough PR staff, and that it was not able to manage its Customer Relations. Opportunities * Joint ventures with French motoring companies Peugeot and Citroen has provided various opportunities for the company to produce cars in France. * North American cons umers have shifted to more fuel-efficient and higher quality products of the European and Japanese automakers. Produce fuel-efficient, higher quality and smaller automobiles that can attract the consumers in developing and poor countries. * There is a growing demand for hybrid electric cars. Threats * Rising oil prices and other car maintenance costs, leading to decrease in car ownership. * Encouragement from governments and pressure from environmentalists to turn to more environmental friendly methods of transportation (e. g. cycling and public transportation) * Escalating competition in the low priced car market by the entrance of several newly industrialized countries. Continuing trade frictions due to trade imbalances between Japan and other countries and the lack in openness of the Japanese market to import. * Declining economic growth on a global scale. * Major producers, including the Big Three of U. S (G. M, Ford and Chrysler) offered significant discounts across their lineu ps. PESTLE Analysis Political The auto-industry is being pushed into a socio-politico-economic corner. Carmakers are regularly being restricted with new laws or policies or requirements; that they must adhere to. Toyota likewise is linked closely to the policies of the government.Not only this, but emerging countries, that are keen to develop an auto sector are putting political pressure on Toyota, so as to protect it and develop it. Economic Toyota Company is a pillar company in the auto mobile business, a flag of economic progress. The Toyota Company has been a core company, a unique phenomenon, which has dominated the twentieth century. However, the automobile industry, including Toyota Company has suffered a series of structural problems and has become riddled with contradictions and economic discontinuities; including the recent financial crisis. SocialAs part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs milli ons of people directly, and tens of millions others indirectly. Its products have transformed society, bringing unbelievable levels of mobility and changing the ways people live and work. Nearly since its startup, Toyota has been a model of social discipline, control and improvement and it is not just the auto sector, where it has left a mark. Toyota is considered a role model in millions of organizations and institutions worldwide. It has with its culture been the example that professors use in every business school.Technological Toyota works on a brilliant scale and has such a vast influence that it is impossible to miss. Due to continuous improvement in demands, the level of technology that Toyota has to implement is increasing, and this adds to the challenges of heavy investment burdens on its R&D, and increases its uncertainties and risks in developing the technologies. Technologically, the automotive industry is becoming increasingly competitive. Legal Toyota is subject to a m ultitude of rules and regulations, as well as laws and legislations of a more legal nature.These laws and legislations cover areas such as competition law, intellectual property law, taxation, consumer protection law and emissions. Environmental Transportation through automobiles consumes a lot of the earth’s precious resources. Also to include as environmental issues are the network of roads that are made for the running of automobiles. The forests or ecosystems that are destroyed to make those roads are also environmental issues. Also, the extraction of oil as a usage of fuel; all are environmental costs. Another environmental cost is the extraction of raw materials that go into the making of these automobiles.Indirectly the automotive industry brings people congestion, pollution, traffic accidents and fatalities and a wave of other environmental troubles. Due to this, Toyota needed to establish R&D centres to take advantage of research infrastructure, human capital and tec hnical and technological knowledge, so they can develop vehicles to satisfy the requirements of the environmental and safety regulations more effectively. Toyota’s Core Competencies Toyota has several core competencies which they could utilize to further gain advantage over their competitors. In January of 2009, Toyota overtook the U.S. auto giant General Motors, to become the market leader in the automotive industry. One core competency of Toyota is their brand management. The strength of their automotive marketing has been such that their brand is known even in the parts of the world where cars are not the common medium of transportation. Another core competency is their supply chain management, which shows their ability to maintain a steady stream of raw material coming in for production, because of their long-term good relationships with their steel, glass, plastics and other raw material suppliers.Another thing that forms part of their core competencies is their highly c oordinated logistics system, which is outsourced; and leads to excellent inventory management and always on schedule production activities. Another major core competency of Toyota is their ability at the moving assembly line. Not only this; The Toyota Way of lean production, its JIT and TQM approach; all are part of its core competencies. Being the pioneer of such mass production and waste elimination system, they were able to get ahead of the competitors manufacturing process-wise and were also able to save on cost and time.Yet another core competency is Toyota’s focusing on its product development technology under a single product-information-management program through standardizing and incorporating them; thus highlighting Toyota’s work and effort on the development of sustainable production, and their commitment to perform environmentally. Toyota and its suppliers Toyota has basically 14 management principles, which combine to make ‘The Toyota Way’. Of those 14 principles, Principle 11 states that: â€Å"Respect your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve†.This is merely a small sentence, but is more than enough to illustrate the importance of its suppliers to Toyota, and how it sees them as strategic partners and a part of its organization. Toyota in its early days was very small, and didn’t have a lot of business or production. It didn’t have the resources, capital or equipment to design and make the myriad of components that go into the making of a car. Toyota’s offer to its suppliers was small. It was the opportunity for all partners to grow the business together and mutually benefit in the long term.So, like the associates who work inside Toyota, suppliers became part of the extended family who grew and learned the Toyota Production System. Even when Toyota became a global powerhouse, it maintained its supplier partnerships. One way that Toyota has honed its skills in applying TPS is by working on projects with suppliers. Toyota needs its suppliers to be as capable as its own plants at building and delivering high-quality components just in time. Moreover, Toyota cannot cut costs unless suppliers cut costs, lest Toyota simply push cost reductions onto suppliers, which is not the Toyota Way.Since Toyota does not view parts as commodities to be sourced on the market through open bidding, it is critical that it works with highly capable suppliers that are following TPS or an equivalent system. Toyota’s purchasing department has its own quality and TPS experts to work with suppliers when there are problems. Toyota pays careful attention to its suppliers and their performance. It provides ample hands-on assistance and monitoring to avoid problems; or in the case of an occurrence of a problem, to correct it as soon as possible.If problems do occur, Toyota sends a team of its experts to address the problem and to create the ac tion plan. Whereas other companies would threaten problem suppliers—â€Å"Fix the problems or we will drop you†Ã¢â‚¬â€Toyota nurses them out of their â€Å"sickness† in a very holistic way. There are several advantages for Toyota in treating suppliers as strategic partners or part of the Toyota family. First of all Toyota’s JIT system is a practiced specimen, of how important and beneficial supplier relationships truly are. This system would have never been truly effective if successful integration with suppliers had not taken place.Parts and components arrive just when they are needed and hence Toyota saves on storage and warehouse costs. Toyota’s suppliers are integral to the just-in-time philosophy, both when it is working smoothly and when there is a breakdown in the system. Toyota also saves money on its logistics, and this as well roots from careful integration with suppliers. Also the TQM system of Toyota can be traced back to Toyotaâ€℠¢s supply chain management. Toyota outsources almost 70% of the components that go into its cars, and it maintains close relationships with its key suppliers, so as to procure quality parts and components.Toyota has been rewarded time and time again for its serious investment in building a network of highly capable suppliers that is truly integrated into Toyota’s extended lean enterprise. Much of the award winning quality that distinguishes Toyota and Lexus results from the excellence in innovation, engineering, manufacture, and overall reliability of Toyota’s suppliers. Toyota’s Purchasing Strategy Toyota’s Purchasing/Procurement Policy The ultimate objective of Toyota is to produce vehicles that fully satisfy the customer.To this end, Toyota has developed three basic principles that guide its relationship with suppliers with a view to optimizing its purchases in a global context. These principles are the following: i) Fair competition based on an open d oor policy Toyota is open to any potential supplier, regardless of nationality, size or whether this company is a first-time supplier or not. Toyota’s co-operation with suppliers is solely based on business considerations, which include an assessment of the overall economic and technological capacities of the potential supplier.Critical parameters of this evaluation are quality, cost, technological capabilities and reliability regarding the on-time delivery of the required quantities of inputs, as well as the entrepreneur’s ability to implement a kaizen strategy, which means the continued improvement and enhancement of products, services and management. ii) Mutual benefit based on mutual trust Toyota believes in developing mutually beneficial, long-term relationships with suppliers based on trust and confidence. Close and wide-ranging communication with them is considered a key factor in building and maintaining trust. ii) Contribution to local economic development thr ough localization and good corporate governance As part of the on-going globalisation efforts, Toyota is relocating a larger part of its production to other countries. It is its objective to contribute to the host country’s economic development in line with Toyota’s market presence by purchasing parts and other inputs from local suppliers. This is a Flowchart of the Toyota’s Purchasing Process Toyota’s Supply Chain Management Toyota’s Supplier Consideration and the Selection Process At Toyota, choosing a supplier is a long, drawn-out process that involves erifying whether the supplier will mesh with the supply network. In some cases, suppliers are selected because they have innovations that improve processes or decrease costs. Both new and existing suppliers are expected to share their innovations with other suppliers that supply similar products. As a basic rule, Toyota expects its suppliers to excel in quality, cost, delivery, and engineering, in cluding technology, and management. These are the five key areas that shape competitive entrepreneurs and make them successful in a competitive environment.Thus, Toyota requires suppliers to maintain consistently high quality levels which can be measured in terms of the number of defect parts per million. In addition, suppliers need to build and to maintain a strong position regarding unique designs or special technologies, while being cost- competitive. They also need to follow and to monitor trends in information technology and be able to harmoniously amalgamate state-of-the-art technology with their business organization. It is often necessary that potential suppliers undergo a preparatory process before entering a business partnership with Toyota.During this period, the management should attach particular emphasis on the following issues: * Encouragement of an enterprise culture of creativity, continuous learning and improvement; * Particular attention on R & D, which should go beyond technological issues to include an analysis of both customers’ needs and competitors’ competitive potential; * Improvement of employees’ satisfaction in order to promote creativity and strengthen organizational development; * Strengthening the management information system to help executives to take informed and effective decisions.Toyota views new suppliers cautiously and gives only very small orders. They must prove their sincerity and commitment to Toyota’s high performance standards for quality, cost, and delivery. If they demonstrate this for early orders, they will get increasingly larger orders. Toyota will teach them the Toyota Way and adopt them into the family. This is a model of what Toyota expects from its suppliers. Toyota’s suppliers have to show excellence in areas that Toyota sees as critical. These areas are cost, delivery, engineering, management and quality.Toyota’s philosophy is that suppliers have to excel in thes e areas if they wish to stand out amongst other suppliers and to be successful with global competitiveness Tiered Supplier Organizations Toyota like many auto carmakers is a network of suppliers. Tier 1 suppliers are Toyota’s direct suppliers, which is followed by Tier 2 suppliers and so on. Lastly, there are the Tier 4 suppliers. These are generally small in size, but are critical to the suppliers that are supplying Toyota. Toyota, to maintain the smooth flow in its supply chain, even handles when problem exist in these Tiers.An example of this can be a situation in which a government regulation required a change in antirust coatings. More than 4,000 parts were impacted by this change, but there were only a small number of suppliers that supplied the coating materials. Thus, Toyota was able to focus attention on a few suppliers to develop the new coating materials to be provided to suppliers that coated the 4,000 parts. Working with these lower-tier suppliers was the key to making the necessary changes in a timely and efficient manner. Toyota chooses suppliers across multiple tiers so as to guarantee availability of innovative solutions across the supply chain.Pressure on Suppliers to Perform Toyota’s suppliers are always at their toes. They do not get complacent or feel that they can ease-out, even if they are considered as Toyota’s trusted suppliers and have been supplying Toyota quality materials for a number of years. Even suppliers who have acquired long-term contracts from Toyota, for supplying specific components for a model or set of models have to prove that they are worth the trust to have been given the contract. Otherwise they would jeopardize their opportunity of continuing as Toyota’s suppliers or risk not acquiring such a contract in future models.The depth of Toyota’s Supplier Relationship Toyota’s suppliers suggest that Toyota’s processes have a few characteristics that enable their success, na mely: * Pervasive collaboration tools that have common standards and are compatible with one another * Visibility and visual control not fogged by analysis * Trust to share intellectual property without fear of abuse * Modular view of teams and processes and flexible planning to keep goals aligned with customer needs * Encouragement of teams as a vehicle to solve problems Assisting and Helping SuppliersA key feature of Toyota’s supply chain is the automaker’s role in supplier capability development. This point has already been addressed earlier in this project, how Toyota provides assistance to its suppliers and helps them learn. Supplier Location Decisions Toyota’s planning for assembly plant sites assumes that most suppliers will be located at a reasonable distance from the assembly plant and that their delivery schedules will permit efficient operation of the assembly plant to produce vehicles based on the final vehicle mix and sequence.The low lot sizes of a ssembly plant parts orders imply that suppliers need to be located close to the assembly plant. Many suppliers choose to be located close to an assembly plant. In Japan, 85 percent of the volume comes from suppliers located within a 50-mile radius of a plant (i. e. , within a one-hour drive). In North America and Europe, the goal is for 80 percent of the parts to be delivered within three to five days lead time. The Toyota Target Value System The Toyota Target Value System is a complex system that is continuously applied in Toyota-supplier relationships.Under this system, Toyota and a supplier agree on a number of long-term issues and objectives to strengthen the supplier’s competitiveness. In the course of intense consultations, the long-range objectives are scaled down to annual targets, the so-called â€Å"target values†. On this basis, the supplier undertakes appropriate steps and measures to reach these goals as agreed. Progress is regularly evaluated in terms of organization, effort and achievement and the assessment is communicated to the supplier. Suppliers that succeed in raising their levels of competitiveness receive awards.In case suppliers experience difficulties in their efforts to attain the agreed targets, Toyota provides expertise to analyze the problems and to design measures to remedy the situation. The continuing circle of improvement, attainment and further improvement enables suppliers to improve their competitive edge, while laying the foundation for a stable and long-term business relationship with Toyota, as well as for a broadened range of business opportunities. This long-term approach also helps to overcome problems emanating from economic recession and turmoil.Environmentally-Friendly Products Based on â€Å"Green Procurement† In order to produce environmentally-friendly products, Toyota aims to procure parts, materials and equipment that have low environmental impact from suppliers that always give sufficient consideration to the environment. Toyota’s Supplier Strategies: Strengths and Weaknesses Strengths Suppliers are considered part of Toyota’s value chain. Having strong relationships with partners provides Toyota with certain advantages. Its lean production methods are directly integrated with the efficiency of suppliers.The advantages that Toyota acquires of its supplier strategies include the inventory that Toyota receives JIT from its suppliers. Toyota’s suppliers work hand in hand with Toyota to improve processes and the quality of its products. These supplier strategies also help Toyota shed its costs. The work that Toyota has done with its suppliers has helped the suppliers in eliminating waste from their factory floors; shedding cost and getting the best out of the least. All these savings and reductions in costs are passed on to Toyota as low priced – high quality parts and components.These supplier strategies have also increased Toyota’s qu ality, and have decreased defects to a bare minimum. Another visible advantage of Toyota’s supplier strategies is that the company has decreased its time-to-market for its new or developing products. Suppliers respect Toyota and share common interests and mutual benefits with Toyota. These strong ties also help improve Toyota’s insight on the occurrence of problems and avoiding them, as it goes beyond just handling its direct suppliers; in fact it also deals with its Tier 2, Tier 3 and Tier 4 suppliers.Also, Toyota’s decision to select most of its suppliers that are geographically located near to it, also helps solve logistics problem and brings a large reduction in the cost of transporting the parts or components to its plants. Weaknesses (Toyota has a very studied and planned organizational structure. Its departments are perfectly set and planned. We as students did not have the ample resources to conduct a study on the weaknesses of Toyota – so what we mention here are just assumptions. ) Recent recalls that Toyota has suffered, have been to some extent blamed on its suppliers and Toyota’s Supplier Management.There is a wide speculation that since Toyota, after overtaking GM as the largest auto manufacturer set its goal to increase its market share from 11% to 15%. Due to this Toyota lost sight of its core philosophies, and grew complacent in its supplier selection process. Thus, summarizing that Toyota is only as good as its network of suppliers. Denso, a core supplier of Toyota, which conducts more than 30% of its business with Toyota is said to be somewhat frustrated with the closeness that Toyota maintains with it. This is due to the reason being that Denso also supplies to other customers which are also car manufacturers.These customers are namely Honda, Nissan and Mazda etc. and are considered by Toyota as its main competitors; especially Honda and Nissan. These deviating relationships might possibly hurt or damage T oyota in the long run; if corrective measures are not taken. Also, some suppliers complain that although Toyota is their best customer, it doesn’t let go of its bargaining power; meaning that Toyota keeps an upper hand over everything. It can also be argued that having low inventories, if not managed well can cause problems in the production line.Corrective Actions Required Knowing how Toyota works, if these problems come into existence; Toyota will have a carefully planned approach to solving them. To begin with Toyota would first clarify the problem and see the comparison between the current and the ideal or required state. Then as second step, it would grasp the actual situation and see the gaps, which have caused the problem to occur. A third step would be to break down the problem and set targets to correct them bit by bit. Finally, it would conduct an analysis of the underlying causes.What Toyota should do to prevent the problems mentioned in the (Weaknesses) section ab ove is that Toyota must improve its supplier management process and make some corrections to its supply chain. Conclusion Japanese carmakers have always been considered the benchmarks in their industry, and Toyota is the best among the Japanese car manufacturers, establishing it as the benchmark of benchmarks. Toyota has excellence embedded deep in its core and has helped and developed its suppliers to do the same, by integrating and applying a scope of mutual learning and development.Fun Fact As a full stop to this project, we would leave you with a fun fact to think over. Today, Toyota is the world's largest manufacturer of automobiles in unit sales and in net sales. It is by far the largest Japanese automotive manufacturer, producing more than 10 million vehicles per year, equivalent to one every six seconds. In the time it has taken you to read this paragraph, Toyota would have produced at least another three or four cars! Resources Books 1. TOYOTA SUPPLY CHAIN MANAGEMENT: Anant h V. Iyer, Sridhar Seshadri and Roy Vasher 2.THE TOYOTA WAY – 14 Management Principles from the World’s Greatest Manufacturer: Jefferey K. Liker 3. THE TOYOTA LEADERS – An Executive Guide: Masaaki Sato Online Resources and Websites 1. http://www. economist. com/node/15576506 2. www. toyota-industries. com 3. http://www. strategicsourceror. com/2011/04/toyota-supply-of-cars-will-be-impacted. html 4. www. toyota-global. com 5. http://blogs. gxs. com/morleym/2010/02/improving-visibility-across-toyota%E2%80%99s-supply-chain. html 6. http://thethrivingsmallbusiness. om/articles/what-can-we-learn-from-the-toyota-crisis/ 7. www. businessweek. com 8. http://www. toyota. co. nz 9. www. toyotasupplier. com 10. http://www. industryweek. com/articles/toyotas_real_secret_hint_its_not_tps_13432. aspx 11. http://www. autoweek. com/article/20060818/free/60816004 12. www. inc. com 13. http://www. businessweek. com/bwdaily/dnflash/content/jan2010/db20100128_907800. htm 14. http:/ /www. bnet. com/blog/mba/lessoned-learned-from-toyotas-crisis/1939 15. http://findarticles. com/p/articles/mi_m0KJI/is_10_118/ai_n27023150/ An Analysis of Toyota’s Strategic Procurement and Supply Chain Management Purchasing & Materials Management| | Strategic Procurement & Supply Chain Management| Introduction The topic selected is (Strategic Procurement & Supply Chain Management). For this study, we have selected Toyota Motor Corporations as our company of choice. Toyota is without doubt the best in the world, with its many philosophies and principles on how to make the best out of the least; JIT, lean production and elimination of waste and the desire for continuous improvement are just a few ways how Toyota has become the best in the auto industry.Toyota as a name, a company, and as a brand has become synonymous with Quality. At the heart of its success, lie family values that have been passed down; a norm that has become the Organizational Culture of Toyota – The Quest for Excellence, and The Passion to Lead. Toyota’s achievement of excellence stems from implementing lean production, or which they refer to as ‘The Toyota Way’. The most visible product of Toyotaà ¢â‚¬â„¢s quest for excellence is its manufacturing philosophy, called the Toyota Production System (TPS).We have selected to apply this topic to Toyota, because to perfect their way of lean production, they work on it from the root; i. e. their suppliers, and purchasing strategy. Scope of Project Analyzing the strategies of Toyota, and how they implement it in their purchasing and procurement policy. Also, analyzing how Toyota selects it suppliers and what selection processes do they go through; and also conducting an analysis of Toyota’s supply chain and its supply chain management. Limitations This study was really difficult to attain, as personal interviews or nteractions with Toyota’s direct employees was beyond our budgets to conduct. This study is a result of hard work and extensive internet and textual or written research from more than ten websites and three books. Also, the study of Toyota was too large and very difficult to summarize into the limited requirem ents of this paper. Company Background The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyoda Automatic Loom Works, one of the world's leading manufacturers of weaving machinery. The Toyoda Automatic Loom Works was then headed by Japan's â€Å"King of Inventors† Sakichi Toyoda.The patent rights to one of his machines had been sold to Platt Brothers (UK) and provided the seed-money for the development and test-building of Toyota's first automobiles. August 2007 marked the 70th anniversary of TMC. The fledgling company founded by Kiichiro Toyoda, Sakichi's son, has since blossomed into the leader that it is today. In 1950 the company experienced its one and only strike. Labour and management emerged from this stoppage firmly committed to the principles of mutual trust and dependence, and that corporate philosophy still guides T0oyota’s growth today.Production systems were improved in the late 1950s, culminating in the establishment of the Ã¢â‚¬Ë œToyota Production System. ‘ It became known as TPS in 1970 but was established much earlier by Taiichi Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the system is a major factor in the reduction of inventories and defects in the plants of Toyota and its suppliers, and it underpins all of Toyota’s operations across the World. Toyota launched its first small car (SA Model) in 1947.Production of vehicles outside Japan began in 1959 at a small plant in Brazil, and continued with a growing network of overseas plants. Toyota believes in localizing its operations to provide customers with the products they need where they need them; this philosophy builds mutually beneficial long-term relationships with local suppliers and helps the company fulfill its commitments to local labour. Over and above manufacturing, Toyota also has a global network of design and ‘Research and Development' facilities, embracing the three major car markets of Japan, North Am erica and Europe.In every community in which the company operates, Toyota strives to be a responsible corporate citizen; close relationships with people and organizations in the local community are essential contributors to mutual prosperity. Across the world, Toyota participates enthusiastically in community activities ranging from the sponsorship of educational and cultural programmes to international exchange and research. Toyota has the fastest product development process in the world. New cars and trucks take 12 months or less to design, while competitors typically require two to three years.Toyota is benchmarked as the best in class by all of its peers and competitors throughout the world for high quality, high productivity, manufacturing speed, and flexibility. Toyota automobiles have consistently been at the top of quality rankings. Strategic Analysis To better understand a firm and its placement of its strategies, we must conduct an analysis of factors that might affect its selection of strategies. SWOT Analysis Strengths * Toyota Motor Corporation is the world’s largest vehicle manufacturer by production and sales. * Toyota is best known for environmentally safe, quality, reliability, durability and value for money. Toyota’s Camry and Corolla have been the top-selling cars in their respected categories; in the past eight out of nine years. Also, Toyota produces the globe’s best selling hybrid car, the Prius – which by 2010 had surpassed two million sales worldwide. * Strong distribution and marketing efforts focused on meeting diverse needs, high quality sales and services, and close involvement with customers. * Low cost, high quality factory operations guided by just in time. * Toyota maintains long-term partnerships with suppliers, and strategic partners. Toyota holds the competitive edge of being the undisputed quality leader in automotive marketing. * Strong brand equity. * Diversified product portfolio (Lexus, Daihat su, Hino) leading to increasing customer base. * Toyota’s success allows it to invest heavily in Research and Development and in the future. Weaknesses * From the last quarter of 2009 through to the 1st quarter of 2010, Toyota had recalled more than 8 million cars and trucks globally in numerous recall campaigns, and temporarily stopped production and sales. * Toyota was badly hit by the 2008 financial crisis, and declared its first annual loss in its 70 years history. Toyota does not have detailed customer segmentation * Customers are not involved in the process. * Toyota places a very high level of responsibility on employee shoulders. * After the 2009-2010 recall crisis, Toyota was criticized for not having or employing enough PR staff, and that it was not able to manage its Customer Relations. Opportunities * Joint ventures with French motoring companies Peugeot and Citroen has provided various opportunities for the company to produce cars in France. * North American cons umers have shifted to more fuel-efficient and higher quality products of the European and Japanese automakers. Produce fuel-efficient, higher quality and smaller automobiles that can attract the consumers in developing and poor countries. * There is a growing demand for hybrid electric cars. Threats * Rising oil prices and other car maintenance costs, leading to decrease in car ownership. * Encouragement from governments and pressure from environmentalists to turn to more environmental friendly methods of transportation (e. g. cycling and public transportation) * Escalating competition in the low priced car market by the entrance of several newly industrialized countries. Continuing trade frictions due to trade imbalances between Japan and other countries and the lack in openness of the Japanese market to import. * Declining economic growth on a global scale. * Major producers, including the Big Three of U. S (G. M, Ford and Chrysler) offered significant discounts across their lineu ps. PESTLE Analysis Political The auto-industry is being pushed into a socio-politico-economic corner. Carmakers are regularly being restricted with new laws or policies or requirements; that they must adhere to. Toyota likewise is linked closely to the policies of the government.Not only this, but emerging countries, that are keen to develop an auto sector are putting political pressure on Toyota, so as to protect it and develop it. Economic Toyota Company is a pillar company in the auto mobile business, a flag of economic progress. The Toyota Company has been a core company, a unique phenomenon, which has dominated the twentieth century. However, the automobile industry, including Toyota Company has suffered a series of structural problems and has become riddled with contradictions and economic discontinuities; including the recent financial crisis. SocialAs part of the development in automotive industry, the Toyota Company actually affects the society as a whole. It employs milli ons of people directly, and tens of millions others indirectly. Its products have transformed society, bringing unbelievable levels of mobility and changing the ways people live and work. Nearly since its startup, Toyota has been a model of social discipline, control and improvement and it is not just the auto sector, where it has left a mark. Toyota is considered a role model in millions of organizations and institutions worldwide. It has with its culture been the example that professors use in every business school.Technological Toyota works on a brilliant scale and has such a vast influence that it is impossible to miss. Due to continuous improvement in demands, the level of technology that Toyota has to implement is increasing, and this adds to the challenges of heavy investment burdens on its R&D, and increases its uncertainties and risks in developing the technologies. Technologically, the automotive industry is becoming increasingly competitive. Legal Toyota is subject to a m ultitude of rules and regulations, as well as laws and legislations of a more legal nature.These laws and legislations cover areas such as competition law, intellectual property law, taxation, consumer protection law and emissions. Environmental Transportation through automobiles consumes a lot of the earth’s precious resources. Also to include as environmental issues are the network of roads that are made for the running of automobiles. The forests or ecosystems that are destroyed to make those roads are also environmental issues. Also, the extraction of oil as a usage of fuel; all are environmental costs. Another environmental cost is the extraction of raw materials that go into the making of these automobiles.Indirectly the automotive industry brings people congestion, pollution, traffic accidents and fatalities and a wave of other environmental troubles. Due to this, Toyota needed to establish R&D centres to take advantage of research infrastructure, human capital and tec hnical and technological knowledge, so they can develop vehicles to satisfy the requirements of the environmental and safety regulations more effectively. Toyota’s Core Competencies Toyota has several core competencies which they could utilize to further gain advantage over their competitors. In January of 2009, Toyota overtook the U.S. auto giant General Motors, to become the market leader in the automotive industry. One core competency of Toyota is their brand management. The strength of their automotive marketing has been such that their brand is known even in the parts of the world where cars are not the common medium of transportation. Another core competency is their supply chain management, which shows their ability to maintain a steady stream of raw material coming in for production, because of their long-term good relationships with their steel, glass, plastics and other raw material suppliers.Another thing that forms part of their core competencies is their highly c oordinated logistics system, which is outsourced; and leads to excellent inventory management and always on schedule production activities. Another major core competency of Toyota is their ability at the moving assembly line. Not only this; The Toyota Way of lean production, its JIT and TQM approach; all are part of its core competencies. Being the pioneer of such mass production and waste elimination system, they were able to get ahead of the competitors manufacturing process-wise and were also able to save on cost and time.Yet another core competency is Toyota’s focusing on its product development technology under a single product-information-management program through standardizing and incorporating them; thus highlighting Toyota’s work and effort on the development of sustainable production, and their commitment to perform environmentally. Toyota and its suppliers Toyota has basically 14 management principles, which combine to make ‘The Toyota Way’. Of those 14 principles, Principle 11 states that: â€Å"Respect your Extended Network of Partners and Suppliers by Challenging Them and Helping Them Improve†.This is merely a small sentence, but is more than enough to illustrate the importance of its suppliers to Toyota, and how it sees them as strategic partners and a part of its organization. Toyota in its early days was very small, and didn’t have a lot of business or production. It didn’t have the resources, capital or equipment to design and make the myriad of components that go into the making of a car. Toyota’s offer to its suppliers was small. It was the opportunity for all partners to grow the business together and mutually benefit in the long term.So, like the associates who work inside Toyota, suppliers became part of the extended family who grew and learned the Toyota Production System. Even when Toyota became a global powerhouse, it maintained its supplier partnerships. One way that Toyota has honed its skills in applying TPS is by working on projects with suppliers. Toyota needs its suppliers to be as capable as its own plants at building and delivering high-quality components just in time. Moreover, Toyota cannot cut costs unless suppliers cut costs, lest Toyota simply push cost reductions onto suppliers, which is not the Toyota Way.Since Toyota does not view parts as commodities to be sourced on the market through open bidding, it is critical that it works with highly capable suppliers that are following TPS or an equivalent system. Toyota’s purchasing department has its own quality and TPS experts to work with suppliers when there are problems. Toyota pays careful attention to its suppliers and their performance. It provides ample hands-on assistance and monitoring to avoid problems; or in the case of an occurrence of a problem, to correct it as soon as possible.If problems do occur, Toyota sends a team of its experts to address the problem and to create the ac tion plan. Whereas other companies would threaten problem suppliers—â€Å"Fix the problems or we will drop you†Ã¢â‚¬â€Toyota nurses them out of their â€Å"sickness† in a very holistic way. There are several advantages for Toyota in treating suppliers as strategic partners or part of the Toyota family. First of all Toyota’s JIT system is a practiced specimen, of how important and beneficial supplier relationships truly are. This system would have never been truly effective if successful integration with suppliers had not taken place.Parts and components arrive just when they are needed and hence Toyota saves on storage and warehouse costs. Toyota’s suppliers are integral to the just-in-time philosophy, both when it is working smoothly and when there is a breakdown in the system. Toyota also saves money on its logistics, and this as well roots from careful integration with suppliers. Also the TQM system of Toyota can be traced back to Toyotaâ€℠¢s supply chain management. Toyota outsources almost 70% of the components that go into its cars, and it maintains close relationships with its key suppliers, so as to procure quality parts and components.Toyota has been rewarded time and time again for its serious investment in building a network of highly capable suppliers that is truly integrated into Toyota’s extended lean enterprise. Much of the award winning quality that distinguishes Toyota and Lexus results from the excellence in innovation, engineering, manufacture, and overall reliability of Toyota’s suppliers. Toyota’s Purchasing Strategy Toyota’s Purchasing/Procurement Policy The ultimate objective of Toyota is to produce vehicles that fully satisfy the customer.To this end, Toyota has developed three basic principles that guide its relationship with suppliers with a view to optimizing its purchases in a global context. These principles are the following: i) Fair competition based on an open d oor policy Toyota is open to any potential supplier, regardless of nationality, size or whether this company is a first-time supplier or not. Toyota’s co-operation with suppliers is solely based on business considerations, which include an assessment of the overall economic and technological capacities of the potential supplier.Critical parameters of this evaluation are quality, cost, technological capabilities and reliability regarding the on-time delivery of the required quantities of inputs, as well as the entrepreneur’s ability to implement a kaizen strategy, which means the continued improvement and enhancement of products, services and management. ii) Mutual benefit based on mutual trust Toyota believes in developing mutually beneficial, long-term relationships with suppliers based on trust and confidence. Close and wide-ranging communication with them is considered a key factor in building and maintaining trust. ii) Contribution to local economic development thr ough localization and good corporate governance As part of the on-going globalisation efforts, Toyota is relocating a larger part of its production to other countries. It is its objective to contribute to the host country’s economic development in line with Toyota’s market presence by purchasing parts and other inputs from local suppliers. This is a Flowchart of the Toyota’s Purchasing Process Toyota’s Supply Chain Management Toyota’s Supplier Consideration and the Selection Process At Toyota, choosing a supplier is a long, drawn-out process that involves erifying whether the supplier will mesh with the supply network. In some cases, suppliers are selected because they have innovations that improve processes or decrease costs. Both new and existing suppliers are expected to share their innovations with other suppliers that supply similar products. As a basic rule, Toyota expects its suppliers to excel in quality, cost, delivery, and engineering, in cluding technology, and management. These are the five key areas that shape competitive entrepreneurs and make them successful in a competitive environment.Thus, Toyota requires suppliers to maintain consistently high quality levels which can be measured in terms of the number of defect parts per million. In addition, suppliers need to build and to maintain a strong position regarding unique designs or special technologies, while being cost- competitive. They also need to follow and to monitor trends in information technology and be able to harmoniously amalgamate state-of-the-art technology with their business organization. It is often necessary that potential suppliers undergo a preparatory process before entering a business partnership with Toyota.During this period, the management should attach particular emphasis on the following issues: * Encouragement of an enterprise culture of creativity, continuous learning and improvement; * Particular attention on R & D, which should go beyond technological issues to include an analysis of both customers’ needs and competitors’ competitive potential; * Improvement of employees’ satisfaction in order to promote creativity and strengthen organizational development; * Strengthening the management information system to help executives to take informed and effective decisions.Toyota views new suppliers cautiously and gives only very small orders. They must prove their sincerity and commitment to Toyota’s high performance standards for quality, cost, and delivery. If they demonstrate this for early orders, they will get increasingly larger orders. Toyota will teach them the Toyota Way and adopt them into the family. This is a model of what Toyota expects from its suppliers. Toyota’s suppliers have to show excellence in areas that Toyota sees as critical. These areas are cost, delivery, engineering, management and quality.Toyota’s philosophy is that suppliers have to excel in thes e areas if they wish to stand out amongst other suppliers and to be successful with global competitiveness Tiered Supplier Organizations Toyota like many auto carmakers is a network of suppliers. Tier 1 suppliers are Toyota’s direct suppliers, which is followed by Tier 2 suppliers and so on. Lastly, there are the Tier 4 suppliers. These are generally small in size, but are critical to the suppliers that are supplying Toyota. Toyota, to maintain the smooth flow in its supply chain, even handles when problem exist in these Tiers.An example of this can be a situation in which a government regulation required a change in antirust coatings. More than 4,000 parts were impacted by this change, but there were only a small number of suppliers that supplied the coating materials. Thus, Toyota was able to focus attention on a few suppliers to develop the new coating materials to be provided to suppliers that coated the 4,000 parts. Working with these lower-tier suppliers was the key to making the necessary changes in a timely and efficient manner. Toyota chooses suppliers across multiple tiers so as to guarantee availability of innovative solutions across the supply chain.Pressure on Suppliers to Perform Toyota’s suppliers are always at their toes. They do not get complacent or feel that they can ease-out, even if they are considered as Toyota’s trusted suppliers and have been supplying Toyota quality materials for a number of years. Even suppliers who have acquired long-term contracts from Toyota, for supplying specific components for a model or set of models have to prove that they are worth the trust to have been given the contract. Otherwise they would jeopardize their opportunity of continuing as Toyota’s suppliers or risk not acquiring such a contract in future models.The depth of Toyota’s Supplier Relationship Toyota’s suppliers suggest that Toyota’s processes have a few characteristics that enable their success, na mely: * Pervasive collaboration tools that have common standards and are compatible with one another * Visibility and visual control not fogged by analysis * Trust to share intellectual property without fear of abuse * Modular view of teams and processes and flexible planning to keep goals aligned with customer needs * Encouragement of teams as a vehicle to solve problems Assisting and Helping SuppliersA key feature of Toyota’s supply chain is the automaker’s role in supplier capability development. This point has already been addressed earlier in this project, how Toyota provides assistance to its suppliers and helps them learn. Supplier Location Decisions Toyota’s planning for assembly plant sites assumes that most suppliers will be located at a reasonable distance from the assembly plant and that their delivery schedules will permit efficient operation of the assembly plant to produce vehicles based on the final vehicle mix and sequence.The low lot sizes of a ssembly plant parts orders imply that suppliers need to be located close to the assembly plant. Many suppliers choose to be located close to an assembly plant. In Japan, 85 percent of the volume comes from suppliers located within a 50-mile radius of a plant (i. e. , within a one-hour drive). In North America and Europe, the goal is for 80 percent of the parts to be delivered within three to five days lead time. The Toyota Target Value System The Toyota Target Value System is a complex system that is continuously applied in Toyota-supplier relationships.Under this system, Toyota and a supplier agree on a number of long-term issues and objectives to strengthen the supplier’s competitiveness. In the course of intense consultations, the long-range objectives are scaled down to annual targets, the so-called â€Å"target values†. On this basis, the supplier undertakes appropriate steps and measures to reach these goals as agreed. Progress is regularly evaluated in terms of organization, effort and achievement and the assessment is communicated to the supplier. Suppliers that succeed in raising their levels of competitiveness receive awards.In case suppliers experience difficulties in their efforts to attain the agreed targets, Toyota provides expertise to analyze the problems and to design measures to remedy the situation. The continuing circle of improvement, attainment and further improvement enables suppliers to improve their competitive edge, while laying the foundation for a stable and long-term business relationship with Toyota, as well as for a broadened range of business opportunities. This long-term approach also helps to overcome problems emanating from economic recession and turmoil.Environmentally-Friendly Products Based on â€Å"Green Procurement† In order to produce environmentally-friendly products, Toyota aims to procure parts, materials and equipment that have low environmental impact from suppliers that always give sufficient consideration to the environment. Toyota’s Supplier Strategies: Strengths and Weaknesses Strengths Suppliers are considered part of Toyota’s value chain. Having strong relationships with partners provides Toyota with certain advantages. Its lean production methods are directly integrated with the efficiency of suppliers.The advantages that Toyota acquires of its supplier strategies include the inventory that Toyota receives JIT from its suppliers. Toyota’s suppliers work hand in hand with Toyota to improve processes and the quality of its products. These supplier strategies also help Toyota shed its costs. The work that Toyota has done with its suppliers has helped the suppliers in eliminating waste from their factory floors; shedding cost and getting the best out of the least. All these savings and reductions in costs are passed on to Toyota as low priced – high quality parts and components.These supplier strategies have also increased Toyota’s qu ality, and have decreased defects to a bare minimum. Another visible advantage of Toyota’s supplier strategies is that the company has decreased its time-to-market for its new or developing products. Suppliers respect Toyota and share common interests and mutual benefits with Toyota. These strong ties also help improve Toyota’s insight on the occurrence of problems and avoiding them, as it goes beyond just handling its direct suppliers; in fact it also deals with its Tier 2, Tier 3 and Tier 4 suppliers.Also, Toyota’s decision to select most of its suppliers that are geographically located near to it, also helps solve logistics problem and brings a large reduction in the cost of transporting the parts or components to its plants. Weaknesses (Toyota has a very studied and planned organizational structure. Its departments are perfectly set and planned. We as students did not have the ample resources to conduct a study on the weaknesses of Toyota – so what we mention here are just assumptions. ) Recent recalls that Toyota has suffered, have been to some extent blamed on its suppliers and Toyota’s Supplier Management.There is a wide speculation that since Toyota, after overtaking GM as the largest auto manufacturer set its goal to increase its market share from 11% to 15%. Due to this Toyota lost sight of its core philosophies, and grew complacent in its supplier selection process. Thus, summarizing that Toyota is only as good as its network of suppliers. Denso, a core supplier of Toyota, which conducts more than 30% of its business with Toyota is said to be somewhat frustrated with the closeness that Toyota maintains with it. This is due to the reason being that Denso also supplies to other customers which are also car manufacturers.These customers are namely Honda, Nissan and Mazda etc. and are considered by Toyota as its main competitors; especially Honda and Nissan. These deviating relationships might possibly hurt or damage T oyota in the long run; if corrective measures are not taken. Also, some suppliers complain that although Toyota is their best customer, it doesn’t let go of its bargaining power; meaning that Toyota keeps an upper hand over everything. It can also be argued that having low inventories, if not managed well can cause problems in the production line.Corrective Actions Required Knowing how Toyota works, if these problems come into existence; Toyota will have a carefully planned approach to solving them. To begin with Toyota would first clarify the problem and see the comparison between the current and the ideal or required state. Then as second step, it would grasp the actual situation and see the gaps, which have caused the problem to occur. A third step would be to break down the problem and set targets to correct them bit by bit. Finally, it would conduct an analysis of the underlying causes.What Toyota should do to prevent the problems mentioned in the (Weaknesses) section ab ove is that Toyota must improve its supplier management process and make some corrections to its supply chain. Conclusion Japanese carmakers have always been considered the benchmarks in their industry, and Toyota is the best among the Japanese car manufacturers, establishing it as the benchmark of benchmarks. Toyota has excellence embedded deep in its core and has helped and developed its suppliers to do the same, by integrating and applying a scope of mutual learning and development.Fun Fact As a full stop to this project, we would leave you with a fun fact to think over. Today, Toyota is the world's largest manufacturer of automobiles in unit sales and in net sales. It is by far the largest Japanese automotive manufacturer, producing more than 10 million vehicles per year, equivalent to one every six seconds. In the time it has taken you to read this paragraph, Toyota would have produced at least another three or four cars! Resources Books 1. TOYOTA SUPPLY CHAIN MANAGEMENT: Anant h V. Iyer, Sridhar Seshadri and Roy Vasher 2.THE TOYOTA WAY – 14 Management Principles from the World’s Greatest Manufacturer: Jefferey K. Liker 3. THE TOYOTA LEADERS – An Executive Guide: Masaaki Sato Online Resources and Websites 1. http://www. economist. com/node/15576506 2. www. toyota-industries. com 3. http://www. strategicsourceror. com/2011/04/toyota-supply-of-cars-will-be-impacted. html 4. www. toyota-global. com 5. http://blogs. gxs. com/morleym/2010/02/improving-visibility-across-toyota%E2%80%99s-supply-chain. html 6. http://thethrivingsmallbusiness. om/articles/what-can-we-learn-from-the-toyota-crisis/ 7. www. businessweek. com 8. http://www. toyota. co. nz 9. www. toyotasupplier. com 10. http://www. industryweek. com/articles/toyotas_real_secret_hint_its_not_tps_13432. aspx 11. http://www. autoweek. com/article/20060818/free/60816004 12. www. inc. com 13. http://www. businessweek. com/bwdaily/dnflash/content/jan2010/db20100128_907800. htm 14. http:/ /www. bnet. com/blog/mba/lessoned-learned-from-toyotas-crisis/1939 15. http://findarticles. com/p/articles/mi_m0KJI/is_10_118/ai_n27023150/