The Mission of Ben Jerrys

The Mission of Ben Jerrys Ben Cohen and Jerry Greenfield founded Ben Jerrys Homemade Ice Cream in 1978. Back in 1966, when they were working out in a school gym, they both realised that they hated running but loved food. Years later in 1978, Ben had been fired from a series of jobs while Jerry had failed for the second time to get into medical school. So, they decided to do a $5 correspondence course in ice cream making and later opened their first scoop shop in a dilapidated gas station in Burlington, Vermont. They soon became popular in the local community for the best all natural ice cream. By 1979, they began wholesaling pints of ice cream out of Bens VW campervan.Over the years, Ben Jerrys evolved into a socially-oriented, independent-minded industry leader in the super-premium ice cream market.All Ben Jerrys frozen dessert products are being manufactured in the companys three plants located in Vermont. The company distributes ice cream, low fat ice cream, frozen yogurt, sorbet and other novelty produ cts (1). While the majority of corporate managers were under constant pressure to meet their shareholders demands, Ben and Jerry were quite the opposite; they were only interested in short-term gains and large profits. In fact, at first they panicked by their quick business growth, as they thought about severing ties with the fast growing company. They did not place any emphasis on cash, equipment and inventories which are considered to be the tangible assets of the firm. Instead, their focus was on intangible` assets such as reputation, quality of life, joy, social concerns; all of which they considered to be as valuable as material assets- and as Jerry put it ‘if its not fun, why do it?. Recently, Unilever, a multinational food and personal products company acquired Ben Jerrys in spring 2000. The Ben Jerrys Board of Directors approved Unilevers worth  £ 230m. Under the terms conditions of the agreement, Ben Jerrys will function separately from Unilevers existing ice cream business. There will be an independent Board of Directors and their main role would be to maintain Ben Jerrys social mission and brand integrity. Both co-founders will keep on working with Ben Jerrys, and the company will continue to be Vermont-based (3).So, although it is under Unilever but it still continues to maintain its individual identity. Ben Jerrys Mission The underlying mission of Ben Jerrys is to search for new and innovative ways of addressing all three parts (social, product and economic), while holding a profound respect for the community of which they are a part and also to the individuals inside and outside the company. Their mission consists of three interrelated parts shown below. â€Å"To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally and internationally† (2). â€Å"To make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment† (2). â€Å"To operate the company on a sustainable financial basis of profitable growth, increasing value for the stakeholders and expanding opportunities for development and career growth for the employees† (2). There has been an increasing demand for indulgent ‘treats in the British diet. Around  £1.3 billion ice cream market is tapping into this demand with rising sales in luxury and premium ice creams at the expense of standard varieties. About 14million adults buy ice cream as a treat. The growing demand for indulgent desserts has helped grow the sales of ice cream. Since 2007, value sales of ice cream have grown by 8% (4). All these statistics show that Ben Jerrys have great potential in the U.K. market. Strategic Analysis Political factors There had been rumours accusing Ben Jerrys of supporting the defence ofMumia Abu-Jamal, who was convicted in 1982 of killing Philadelphia Police officerDaniel Faulkner. Misunderstanding stemmed from the fact that Ben Cohen, one of the co-founders, joined hundreds of other people in signing a petition in 1995 asking that American justice should be followed fully in the case. Apart from these reports, there had been allegations that Ben Jerrys had introduced an ice cream flavour whose name is connected to this case.As a consequence of this alleged support, the National Fraternal Order of Police had publicly called for a boycott of all Ben Jerrys products (6). Again in 2006, Ben Jerrys had to apologise to Irish consumers for launching a new flavour â€Å"Black and Tan† evoking their worst days of British military oppression. Black and Tans was the term used for recruiting an irregular force of British ex-servicemen during the Irish war of independence and renowned for their brutality (9). Ben Jerrys were again in news when PETA sent them a letter asking them to use breast milk instead of cows to prevent cruelty to the dairy cows (5). Moreover, ever since Ben Jerrys have been taken over by Unilever, the Vermont firm, famous for donating part of its profits to charity, has been criticised for having changed their commercial focus. Economic factors The high costs related to manufacturing each different unique flavour. Ben Jerrys primary marketing goal is to create products that cannot be reproduced but the technological developments of the company has not allowed them to launch the products within a realistic time limit. It takes them many years to come up with a new different flavour. Even after that there is no surety if the product would be successful or able to penetrate in the market. Not only this, it also gives the competitors a chance to take over their place in the market. Back in 1994 also, sales dropped, profits went down, and the companys stock prices fell to half its value. Cost of sales increased approximately $9.6 million or 9.5% over the same period in 1993, and the overall gross profit as a percentage of net sales decreased from 28.6% in 1993 to 26.2% in 1994. This loss might have been a result of several reasons, such as high administration and selling costs, a negative impact of inventory management, and start up costs associated with certain flavours (8). The company realising its fall in sales, quickly responded to the changes in consumer demands and introduced Ben Jerrys ‘Lite. The line failed miserably. It looked like that Ben Jerry failed to forecast and acknowledge the changes in consumer tastes, and was faced with increasing competition with Haagen-Dazs, which introduced its ‘low-fat Ultra Premium ice-cream. Social factors Partnershops are Ben Jerrys scoop shops that are independently owned and operated by community-based non-profitable organizations. These organizations use the funds generated to train and counsel disenfranchised youth who are in need of a helping hand to get back into the work environment. Other than this, they are working on sustainable dairy farming programme and fair-trade (which is the premium they pay for the ingredients which enables the farmer to take positive steps towards providing basic needs for their families, such as healthcare, education and safe housing) (1). Such efforts had been made to attract over ‘like-minded consumers, however its debatable as in to what extent this will have an impact on appealing the hearts of their consumers. The question then arises as to how much their social unique image gets affected by their consumer behaviour. Environmental factors U.K. experienced poor weather in the summer of 2007 in comparison to that of 2006, with an average temperature of 14.10C compared to 15.80C in 2006. This had a negative effect on the ice cream market, especially in the impulse sector, and value sales went down 1.5% compared to 2006. In the last two years (2008 and 2009), summer temperatures appear to have picked up, reaching approximately 14.70C in 2009 (4). UK Mean seasonal temperature ( °C), 2004-09* January-August Seasons: Winter=Dec-Feb, Spring=Mar-May, Summer=June-Aug, Autumn=Sept-Nov Data are provisional from December 2008 and Winter 2008/09 Source: Met Office/Mintel Technological factors In order to improve the companys infrastructure and with the aim to automate their production to keep up the intense competition, they invested a lot of money in property and equipments in 1994 increasing their long term debts by almost 45%. SWOT analysis Strengths Prestigious, established and recognized brand name and successfully operating in many countries. Ben Jerrys make a yearly contribution of minimum $1.1 million from pre-tax profits to charitable foundation. It also sponsors Partnershops, Ben Jerrys scoop shops, which are operated by non-profitable organizations. These organizations help the disenfranchised youth to get them back in the working environment. They also have a long term partnership with Fairtrade foundation which works toward paying farmers the premium that enables them to fulfil the basic needs of their families. Till now, they have launched four Fairtrade certified ice cream flavours. Product differentiation- the use of natural, good quality ingredient, different flavours and the strategic use of quirky flavour names such as Wavy Gravy, Chubby Hubby, Phish Food and Chunky Monkey gives them a competitive edge over other conventional ice cream products of other companies. Ben Jerrys have also introduced other products like sorbets and frozen yoghurts along with their ice cream range for targeting customers demanding for healthy desserts. Ben Jerrys acquisition by Unilever in 2000 has provided the company with greater financial backing allowing them to be even more productive and socially active in the ice cream business. Thermoacoustic refrigeration- Ben Jerrys company developed the first prototype eco-chilling unit which recycles and re-uses the energy used to maintain the ice surface. Advertising support- introducing flavours with clever names in order to promote them. For example, ‘Yes Pecan referring to the Barack Obamas winning the presidency elections (7), ‘Hubby Hubby in order to support the cause of marriage equality for same-sex couples (11). Weaknesses: Limited target market as Ben Jerrys is a super-premium brand and is seen as a special treat by consumers and depends on their level of indulgence. Too much focus on charity work which has added up to the unnecessary costs and has caused them to neglect the upcoming changes in trends. Lack of professionalism in management and due to their employee oriented approach has made them to suffer a great loss in 1994. In order to fulfil their mission statement of providing consumers with ice creams of innovative flavour, they take a really long time to come up with a new flavour which is absolutely unnecessary as even after that there is no guarantee if the product would be successful in market. In fact, it gives the competitors a chance to take over their market share. High cost involved in transportation as most of their suppliers are scattered throughout the world. For example, nuts from South African rain forests, peaches from Georgia, etc. Opportunities As people are becoming more and more health conscious, Ben Jerrys should launch more variety in fat-free ice creams and even greater range in healthy alternatives like frozen yoghurts. They should work towards globalizing their product to compete effectively in the market. Their geographical reach is limited to North America and Western Europe mainly. Environment friendly freezers- In 2009, they have announced the plans to roll out (Hydrofluorocarbons) HFCs-free freezer which is a major step towards saving the planet as HFCs are one of the major factor responsible for ozone depletion (10). Ben Jerrys are currently working on using bio-gas digester to convert the waste produced during the manufacturing of ice creams into energy (1). Packaging- Ben Jerrys ice cream tubs are presently made from 90% renewable paper stock but to prevent it from leaking, they coat it with polyethylene which makes it difficult to recycle them. So, they should work on making tubs which are fully recyclable. Threats Consumers tend to change their product preferences based on their discretionary income and the extent to which they want to indulge in these fattening dessert products. There are many substitute products available within the desserts and frozen food industry. Therefore, they not only suffer competition from other ice cream brands but also from other desserts such as chocolates, cookies, pies, etc. Slow product development- the duration during which a new flavour is launched is really long which gives competitors a chance to take over the market during that time. Their major competitor is Haagen dazs as can be deduced from the table below which gives the take-home sales from 2007 to 2009 (4). Haagen dazss ‘low fat ultra-premium ice cream range is extremely popular. Moreover, they have a competitive edge over Ben Jerrys as it is geographically more spread than Ben Jerrys as the brand is marketed by two multinational companies- Nestle and General Mills. Take Home sales 2007-09 2007 % 2008 % 2009 % % change  £m  £m  £m 2007-09 Unilever 242 40 263 42 285 43 17.8 Walls (Heart) 116 19 125 20 139 21 20.2 Carte DOr 39 6 44 7 46 7 19.2 Viennetta 30 5 26 4 24 4 -20 Ben Jerrys 36 6 43 7 50 8 38.3 Other 21 3 25 4 26 4 23.3 General Mills Hà ¤agen-Dazs 30 5 38 6 40 6 32.8 Fredericks Dairies 49 8 44 7 46 7 -5.1 RR 55 9 50 8 53 8 -3.4 Skinny Cow 6 1 6 1 7 1 10.7 Other brands 61 10 39 6 40 6 -34.4 Own-label 139 23 156 25 159 24 14.3 Total 606 100 625 100 664 100 9.6 Source: Mintel Recommendations Recent acquisition by Unilever could create a negative image in public which need to be cleared by ensuring them that even after being taken over by Unilever, their missions have not changed and they would continue to produce new innovative flavours of ice creams. They should maintain a balance between their social and product mission. Instead of focussing more on social causes and adding up the unnecessary costs, they should rather study the upcoming change in trends and launch new flavours to maintain or increase their share in the market. Since it is now owned by Unilever, they have the financial support required for them to expand their production globally. They should decrease the duration of product development process so that they can launch a new flavour every month or so to keep the customers engaged on a regular basis. They should continue to implement their recycling programs in order to lower down the production costs. They should develop additional manufacturing plants and distribution centres outside of Vermont to cut down on the transportation costs. They should change the consumer perception of having the ice cream only in summers or spring time to anytime dessert i.e. they should work towards deseasonalising their sales. Conclusion Ben Jerrys even after acquisition by Unilever in 2000 has continued to maintain its own identity. Their strong product differentiation gives them a competitive edge over their competitors. The only need is to expand globally to compete effectively with other brands. The innovation factor in their ice creams distinguishes them from the conventional flavours of other brands. Their efforts in becoming green e.g. by planning to launch environment friendly freezers which would reduce green house gases emission sets them apart from other companies. All they need to do is to remain focussed on their missions with equal emphasis on all of them keeping in mind the customers demands.

Effects of Caffeinated Beverages on Attention Performance

Effects of Caffeinated Beverages on Attention Performance Caffeinated Beverages and their Effects on Attention Performance Tasks Cory Jones Methodology As per the requirements of the study, we will try to understand how the consumptions of energy caffeinated drinks affect the Attention Task performance for participants. We will conduct this test on 20 participants (10 male and 10 female) selected randomly from the University of Michigan- Flint campus. Since the participants in the experiment will be college students, we expect them to be within the age range of 18-25 years. From the initial group, participants will be screened to meet the requirements of the test. The selected 20 participants will be asked to take the Conner’s Continuous Performance Task (Conners, 2004). The Continuous performance test is considered one of the best ways to measure attention and vigilance behavior of participants. This test is also used to identify patients with Attention Deficit and Hyperactivity Disorders. The Continuous Performance Task measures the attention and impulsivity level of the participants. In this particular experiment we will use the computerized version of the Conner’s Continuous Performance Test III. We will use 20 computers and run this test twice to ensure all participants undergo the process. In this version of the test letters of the alphabet are presented in front of the participants for 250ms, the respondent will be instructed to press the keyboard every time they see the letter ‘X’. There will be six blocks for this test; each of these blocks will contain three sub blocks with 20 letters in them. Therefore there will be eighteen sub blocks and the inter stimulus intervals (ISI) for each sub block will vary from 1-4 seconds, so that the participants will not get used to the pattern of the test. The order of the ISI will be mixed and participants will have no inkling about the order in which the letters will appear. The letters presented to the participants will be large and approximately 1 inch in size. The instructor will ask all participa nts to read through the test procedure on the computer screen. A small trial of 20 letters will run twice to help participants get used to the procedure. The test will take approximately 15 minutes per participant; therefore we will collect the baseline data for 60 participants in one hour. In the next phase of the experiment, the participants will be asked to consume 300ml of a caffeinated energy drink that will be given in an unmarked opaque plastic cup. Participants will be given the drinks separately, so that they do not discuss or try to guess the contents of the drink. 30 minutes after consumption of the caffeinated drinks the participants will be again asked to take the Conner’s Continuous Performance test. All subjects will be paid for participating in the experiment. The data collected from the 60 participants will be on two aspects, the test performance score on Inattentiveness and omission, and reaction times. The data collected will be the dependent variable, while the presence or absence of caffeine in the system will be the independent variable or the repeated measures for the related groups. Analysis We will first run normality tests on the data obtained from the study using IBM SPSS v 22 software. Since the sample size is above 50, we will use the Shapiro Wilk test to understand the distribution of the data since we have sample size of less than 50 individuals. If the data has a single peak, we will use parametric tests like paired sample T-test or repeated measures ANOVA to see how the test scores differ between the two conditions. On the other hand, if the data is not normally distributed, we will use Wilcoxon Signed Rank test to see if there is a difference between the attention performances scores before and after caffeine consumption from the baseline. Participant screening The participants will be asked to fill up an information questionnaire; they will be selected based on the results of the questionnaire. Participants who have a history of psychological disorders and who are presently or have in the last few months consumed psychotropic medication or medication that affects CNS will be excluded. Participants, who have a familial history of violence, domestic abuse, divorce or mental disorders, will also be excluded. Participants will be asked if they are presently feeling depressed or stressed due to any circumstances, those who respond in the affirmative will be removed from the experiment. The remaining participants will be asked to stay away from alcohol or caffeine (tea, coffee, chocolates, ice cream etc.) for 48 hours and the experiment will be performed on the second day of screening. This will be done because serum caffeine has a half-life of 5-6 hours (Statland Demas, 1980). All participants will be asked to consume the same recipe of salad and water before appearing for the experiment. On the day of the experiment participants will be allowed to ease into the experiment setup for 5 minutes and after a brief instruction video the study will commence. Data Collection The responses of the participants will be measured in terms of accuracy and response times. Accuracy will be measured in the percentage of ‘X’ detected vs. presented, so the participants will be exposed to different number of ‘X’s at each computer in both trials. The reaction time will be automatically measured by the computer in milliseconds. Data will be generated for each of the 20 partcipants, which will be presented in the form shown in figure 1 and figure 2. The numerical scores as shown in figure 1 will be copied into SPSS software and exploratory and frequentist statistical analyses will be run. Hypothesis For this experiment, we hypothesize that the caffeine trials will improve the test performance of the participants (n=20). The null Hypothesis for this study (Ho) is that there will be no significant difference in test performance between the two trials. Predictions Over the course of years, a number of studies have tried to ascertain the effects on caffeine on bodily functions. Studies show that in subjects exposed to small amounts of caffeine, the level of alertness increased(Zwyghuizen-Doorenbos, Roehrs, Lipschutz, Timms, Roth, 1990). Various other studies also looked at the effects of caffeine on the driving alertness of the subjects(Brice Smith, 2001). There is a significant corpus of literature that exists on the effects of caffeine on the alertness level of human subjects; however we plan to conduct the tests in a more controlled environment. Based on the existing literature review we can predict that the test group will show significant improvement in attention task performance compared to the control group. References Brice, C., Smith, A. (2001). The effects of caffeine on simulated driving, subjective alertness and sustained attention. Human Psychopharmacology: Clinical and Experimental, 16(7), 523–531. Conners, B. C. K. (2014). Conners ’ Continuous Performance Test III ( CPT III V . 5 ). Michael, N., Johns, M., Owen, C., Patterson, J. (2008). Effects of caffeine on alertness as measured by infrared reflectance oculography. Psychopharmacology, 200(2), 255–260. Statland, B. E., Demas, T. J. (1980). Serum caffeine half-lives. Healthy subjects vs. patients having alcoholic hepatic disease. American Journal of Clinical Pathology, 73(3), 390–393. Zwyghuizen-Doorenbos, A., Roehrs, T. A., Lipschutz, L., Timms, V., Roth, T. (1990). Effects of caffeine on alertness. Psychopharmacology, 100(1), 36–39. Supporting Information In the below figure we see that in a study by Michael, Johns, Owen, Patterson, (2008) it was found that the reaction time of participants treated with caffeine dropped within 30 minutes of consumption and stayed lower than the control group even 4 hours after the treatment. Therefore we can see that the caffeine increases alertness and reduces latency in behavior response times in subjects. Budget .

Determination of Man?s Role in Latin America Essay -- essays research

Determination of Man’s Role in Latin America   Ã‚  Ã‚  Ã‚  Ã‚  How society describes what is meant by a man’s role is an important definition in every culture. What is right or wrong for men to do in terms of behavior depends on each community, and on people’s own perceptions. Latin American culture has a strict set of values on sexual issues, reflecting a man’s role in society. For all of the communities in Latin America there exists a relation between a man’s role and machismo. The exaggerated sense of manliness that machismo stands for is evident by parents when raising their male children, and by communities and their expectations. Machismo represents a culture of traditions indeed, but how does machismo define the role of a man in his society? XY is the chromosome formula for a male. Providing these two chromosomes will give the sexual differentiation that causes a man to be a man instead of a woman. However, psychological, social, and cultural factors that have nothing to do with genetics are important to determine man’s role, and to cultivate the sense of masculinity. Masculinity is a process of learning. No child is born a man, so children learn to become men. One example of this are the â€Å"wild children† of the nineteenth century whose sexual preference was ambiguous. Victor de l’Aveyron and Gaspar Hauser grew up without any human contact. For them there was no difference between men and women. A simple definition for masculinity could be the opposite of femininity. What is meant by this simple definition expresses what is demanded for being a man. It must be proof of that sense of masculinity, it â€Å"must be acquired, and at a high price† (Badinter 2). Characteristics such as success, power, control and strength are demanded for masculinity. Masculinity in Latin America goes further than just demanding it. The symbol of masculinity and male sexuality comes from the definition of machismo. Labels and categories are used in order to understand masculinity. Christian Krohn-Hasen in his essay Masculinity and the Political among Dominicans describes masculinity as â€Å"that of the hombre valiente, the spirited, courageous, and brave man† (112). The symbol of a brave man for many is also considered the symbol of masculinity. Another idea involves man showing his masculinity in public. Physical movements represent his capacity for being a man. The m... ... lower class populations. There might be exceptions in which machismo also affects the upper class population, but the percentage is minimal. In fact, when referring to machismo, it’s more likely to influence low income inhabitants. Machismo is the heritage of Latin communities, and it’s inherited through the culture in every Hispanic man. How machismo influences a man’s role; however, depends on each individual. Bibliography Baca Zinn, Maxine. â€Å"Chicano Men and Masculinity.† Men’s Lives. Ed. Michael Kimmel. Boston: Allyn and Bacon, 2001. Badinter, Elisabeth. XY on Masculine Identity. New York: Columbia University Press, 1995. Berryman-Fink, Cynthia. â€Å"Communication and Sex-Role Socialization.† New York: Garland Publishing, 1993. Krohn-Hansen, Christian. â€Å"Masculinity and the Political among Dominicans: ‘The Dominican Tiger’.† Machos, Mistresses, Madonnas. Ed. Marit Melhuus. New York: Verso, 1996. â€Å"Physical abuse against women by an intimate partner.† United Nations Statistics Division. 2003. United Nations. Nov 27 2004. http://unstats.un.org/unsd/demographic/products/indwm/table6c2x.htm Random House Webster’s Electronic Dictionary and Thesaurus, College Edition. 1994.

Expansion On The Recent Discoveries Concerning Nitric Oxide :: essays research papers

Expansion on the Recent Discoveries Concerning Nitric Oxide as presented by Dr. Jack R. Lancaster   Ã‚  Ã‚  Ã‚  Ã‚  Nitric Oxide, or NO, its chemical representation, was until recently not considered to be of any benefit to the life processes of animals, much less human beings. However, studies have proven that this simple compound had an abundance of uses in the body, ranging from the nervous system to the reproductive system. Its many uses are still being explored, and it is hoped that it can play an active role in the cures for certain types of cancers and tumors that form in the brain and other parts of the body.   Ã‚  Ã‚  Ã‚  Ã‚  Nitric Oxide is not to be confused with nitrous oxide, the latter of which is commonly known as laughing gas. Nitric oxide has one more electron than the anesthetic. NO is not soluble in water. It is a clear gas. When NO is exposed to air, it mixes with oxygen, yielding nitrogen IV dioxide, a brown gas which is soluble in water. These are just a few of the chemical properties of nitric oxide. With the total life expectancy of nitric oxide being from six to ten seconds, it is not surprising that it has not been until recently that it was discovered in the body. The compound is quickly converted into nitrates and nitrites by oxygen and water. Yet even its short-lived life, it has found many functions within the body. Nitric oxide enables white blood cells to kill tumor cells and bacteria, and it allows neurotransmitters to dilate blood vessels. It also serves as a messenger for neurons, like a neurotransmitter. The compound is also accountable for penile erections. Further experiments may lead to its use in memory research and for the treatment of certain neurodegenerative disorders. One of the most exciting discoveries of nitric oxide involves its function in the brain. It was first discovered that nitric oxide played a role in the nervous system in 1982. Small amounts of it prove useful in the opening of calcium ion channels (with glutamate, an excitatory neurotransmitter) sending a strong excitatory impulse. However, in larger amounts, its effects are quite harmful. The channels are forced to fire more rapidly, which can kill the cells. This is the cause of most strokes. To find where nitric oxide is found in the brain, scientists used a purification method from a tissue sample of the brain. One scientist discovered that the synthesis of nitric oxide required the presence of calcium, which often acts by binding to a ubiquitous cofactor called calmodulin. A small amount of calmodulin is added to the enzyme preparations,

Analysis of Out, Out by Robert Frost :: Out, Out Robert Frost Poems Poetry Essays

Analysis of Out, Out by Robert Frost "Out, Out--" by Robert Frost is a poem about a young boy who dies as a result of cutting his hand using a saw. In order to give the reader a clear picture of this bizarre scenario, Frost utilizes imagery, personification, blank verse, and variation in sentence length to display various feelings and perceptions throughout the poem. Frost also makes a reference to Macbeth's speech in the play by Shakespear called Macbeth which is somewhat parallel to the occurrences in "Out, Out-." Frost begins the poem by describing a young boy cutting some wood using a "buzz-saw." The setting is Vermont and the time is late afternoon. The sun is setting and the boy's sister calls he and the other workers to come for "Supper." As the boy hears its dinnertime, he gets excited and cuts his hand on accident. Immediately realizing that the doctor might amputate his hand, he asks his sister to make sure that it does not happen. By the time the doctor arrives, it is too late and the boy's hand is already lost. When the doctor gives him anaesthetic, he falls asleep and never wakes up again. The last sentence of the poem, "since they (the boys family and the doctor) were not the one dead, turned to their affairs" shows how although the boys death is tragic, people move on with their life in a way conveying the idea that people only care for themselves. Frost uses different stylistic devices throughout this poem. He is very descriptive using things such as imagery and personification to express his intentions in the poem. Frost uses imagery when he describes the setting of the place. He tells his readers the boy is standing outside by describing the visible mountain ranges and sets the time of day by saying that the sun is setting. Frost gives his readers an image of the boy feeling pain by using contradicting words such as "rueful" and "laugh" and by using powerful words such as "outcry". He also describes the blood coming from the boy's hand as life that is spilling. To show how the boy is dying, Frost gives his readers an image of the boy breathing shallowly by saying that he is puffing his lips out with his breath. When talking about the saw, Frost uses personification and repetition. Personification is seen when he says that at times it can run light and at others it has to "bear a load", talking as if the saw was a person which had to carry something.

Adhering to various articles of the uniform code of military justice Essay

Today’s Articles of the Uniform Code of Military Justice is the result of a long history of advances in the rights of military personnel in which duty, obligation, and consequences are spelled out. It is the responsibility of every member of the armed services to keep this in mind and to embrace the Articles of the Uniform Code of Military Justice as a guide for appropriate behavior. The precursors to the Articles of the Uniform Code of Military Justice (UCMJ) include the Articles of War (1912-1920), The Elston Act (1948), and The Morgan Draft of 1949, each of which significantly furthered the rights of military personnel while securing the equitable application of justice (Articles of War; Elston Act; Uniform Code of Military Justice). Given the long history of the UCMJ, and the number of revisions that have taken place in order to create the modern Articles of the Uniform Code of Military Justice, military personnel should remember and respect the efforts that were put forth to ensure their protections while serving in the military. All personnel should value the efforts of their predecessors by acting in accordance with the Articles of the Uniform Code of Military Justice. As a dedicated soldier in the Military of the United States of America, it is my duty to adhere to the Articles of the Uniform Code of Military Justice so that I might best represent myself, my Company, and my Country, and I failed in this duty on October XX, 2006 when I did not report to a special work detail. This was an unfortunate event that I should have avoided, and having reflected on the situation, I see that I erred in several respects. In the future, I shall avoid repeating such actions as it is not my intent to perform or reflect poorly on the military, my fellow soldiers, or myself. Although I failed to report to the special work detail, and violated a number of the Articles of the Uniform Code of Military Justice, it was not my intent to ignore my duties or act in a manner that, in retrospect, might be viewed as a lack of effort and dedication on my part as well as, perhaps, being viewed as a general disrespect for my fellow officers. I offer no excuse; however, it is my hope that a brief explanation of the situation will show that I did attempt to fulfill my obligations and that I now understand that my actions should have been different. On October XX, 2006, I made an error by arriving to the designated special work detail location one hour in advance of the actual starting time; this error on my part was due to a simple miscommunication. While the miscommunication itself was an event that was primarily out of my control, my actions following my early arrival could have been different. Instead of making every effort to assure that I was at the correct location and had reported at the correct time, I simply returned home. This was not the best choice, and I regret having erred in this way. I compounded this initial error in judgment by assuming that shortly after leaving the special work detail site that I would be contacted via telephone and informed about where and when I was actually to report. This phone call never came, and I made yet another poor choice in not following up on this on my own. Having thought my actions over, I see clearly that as a member of the armed services, I may be faced with occasional miscommunications. I am aware, now, that it is my responsibility to (when possible and appropriate) confirm my assignments with my fellow soldiers to avoid such miscommunications, and if faced with a situation as was the case on October XX, 2006, it is my duty to do everything in my power to ascertain what my obligations are. The Uniform Code of Military Justice can be viewed as â€Å"the foundation for the United. States military justice system,† and as a member of the Armed Forces, it is important that I respect and follow the Code’s Articles without fail (Index & Legislative History of the UCMJ). I showed poor judgment and an overall lack of respect for myself and my fellow soldiers on October XX, 2006 when I failed to report for a special work detail. This was a failure on my part that occurred as a result of a series of poor choices that I made, and I regret having acted in this manner. When I did not appear for the special work detail on October XX, 2006, I violated several Articles of the Uniform Code of Military Justice, and in so doing, I did not do my best in representing myself, my Company, or my Country. I am well aware that there are no valid excuses for my actions, and I intend to do my best not to exhibit further incidents of poor judgment. It is my goal to perform my duties at all times to the best of my abilities, and in a manner that reflects positively on me, my Company, and the United States of America. Violating any of the Articles of the Uniform Code of Military Justice contradicts my intentions, and I regret my actions. Missing the special work detail on October XX, 2006 means I failed to appear at my appointed place of duty at the appointed time which was a violation of Article 86 of the Uniform Code of Military Justice: Absence Without Leave (Powers, Article 86). This action was not appropriate, and I should have made every effort to ascertain when and where I was to have reported. Special work details are a regular part of a soldier’s responsibilities, and by not reporting on October XX, 2006, I let myself and my company down. Obviously, my not being present meant the other members of my work detail had to take up the slack for my not being present: they became responsible for performing my share of the work. This is contrary to my training, and it is contrary to my duties as a soldier. I realize that as a member of a team, my role is one that I must take seriously, and I cannot let the other members of my team down or threaten my team’s ability to succeed by failing to uphold my portion of any given task. This is what happened on October XX, 2006, when I failed to report to the special work detail. This was an action I regret, and one I hope not to repeat. The United States Military relies on each and every one of its members to report to duty fully prepared to perform and in a manner timely enough to perform as required, and because each soldier depends on his fellow soldiers, it is important that no one be absent without leave. It is also possible that one soldier’s failure to report makes more difficult or prevents the ability of other members of his Squad, Platoon, or Company to perform their assigned tasks, and this could create a number of negative consequences that do not reflect well on anyone. I understand that my failing to report where I was required to do so and when I was required to do so on October XX, 2006 when I missed the special work detail was a violation of Article 86 of the Uniform Code of Military Justice: Absence Without Leave, and that this showed a lapse in judgment which should not be repeated in the future. I intend to avoid further violations of this Article as I understand that this failure reflects poorly on the United States of America, the Military, my Squad, Platoon, or Company, and myself. Special work details are often assigned as part of my obligations as a soldier, and by choosing not to report on October XX, 2006, I failed to obey the order of a superior commissioned officer which is a violation of Article 90 of the Uniform Code of Military Justice: Willfully Disobeying a Superior Commissioned Officer (Powers, Article 90). This was disrespectful, and I regret my actions. I am well aware of the importance of following orders, and it was not my intent to fail to do so. The importance of the Chain of Command cannot be over-emphasized. Each member of a Squad, a Platoon, or a Company must know his role and fulfill it without fail. The Chain of Command provides an easy means by which individuals can work together towards a shared goal while avoiding undue confusion whether completing tasks that are simple or completing tasks that are extremely complex. Superior officers give orders to those under their command to ensure that shared goals are met based on the appropriate and necessary actions of their subordinate personnel. I did not fulfill my role, and in failing to do so, I let myself and those who depend on me down, and I may have cast doubt on whether or not others can rely on me in the future. In addition, my inaction in this situation most likely created a hardship on the other members of my Squad, Platoon, Company by requiring that they do extra work. I understand that my failure to follow the orders of a superior was inappropriate, and not in the best interests of myself or my fellow soldiers, and that further violations of Article 90 of the Uniform Code of Military Justice: Willfully Disobeying a Superior Commissioned Officer are not in my best interest. Having thought about this, I see clearly that I should have done everything in my power to fulfill my obligations and to avoid the appearance of disrespecting my superior officer by failing to report as ordered. I failed to appear at my appointed place of duty when I missed a special work detail on October XX, 2006. This was a violation of Article 92 of the Uniform Code of Military Justice: Failure to Obey an Order or a Regulation (Powers, Article 92). This was an error on my part that I regret and intend to avoid in the future. As a proud and dedicated member of the United States’ Armed Services, I do not have the luxury of deciding whether or not I will abide by an order or a regulation. My job is not to decide whether or not I want to do something; my job is to do what I am ordered to do when I am ordered to do it. It is my responsibility to understand that I play a role in a team, and that my failing to perform my part of a task assigned to the team I am a part of puts all members of that team at risk of failing. In failing to report to the special work detail on October XX, 2006, I let myself and my fellow soldiers down, and I showed poor judgment. Every Company needs order, and the surest way to ensure that individuals come together to form a cohesive group is to establish regulations that must be followed. By failing to report to my special work detail on October XX, 2006, I jeopardized the cohesion of my group, and I brought into question the degree to which I might be relied upon in the future. After thinking about my actions and the effect that my lack of following through had, I regret not having done more to ensure that I knew where and when I was supposed to report on October XX, 2006. I understand that my failure to report to the special work detail on October XX, 2006 was equivalent to failing to obey an order and reflected poorly on myself and my fellow service members, and that violating Article 92 of the Uniform Code of Military Justice: Failure to Obey an Order or a Regulation does not cast me in a positive light. Because it is my desire to perform all of my duties to the best of my abilities, I regret my actions and hope not to repeat a similar error. My failing to report to the special work detail on October XX, 2006 was in flagrant disregard of good order and discipline and was detrimental to the overall well-being of the command with which I am associated. This was a violation of Article 133 of the Uniform Code of Military Justice: Conduct Unbecoming an Officer and a Gentleman (Powers, Article 133). I now see clearly that missing my assigned task was an error in judgment on my part, and I intend to do everything in my power to avoid a repeat of this error. As a dedicated representative of the United States of America, it is my duty, my responsibility, and my desire to conduct myself in a manner that represents me, my command, and my country in the most positive light possible. When I missed the special work detail on October XX, 2006, I shed negative light on all facets of the Military, and I regret this. Military Units function best when all of their members work in unison towards a common goal, and my missing the special work detail on October XX, 2006 reflects a lack of discipline and an unwillingness to keep good order, both of which are detrimental to my well-being and that of the members of my Company as well as violating Article 133 of the Uniform Code of Military Justice: Conduct Unbecoming an Officer and a Gentleman. It is not my intent to tarnish the image of the Military of the United States of America, and as a representative of the Armed Forces, my failing to report to the special work detail on October XX, 2006 did just that. This is an action I regret. I neglected my duty to the prejudice of good order and discipline in the Armed Forces when I chose to miss the special work detail on October XX, 2006. This action constituted a violation of Article 134c of the Uniform Code of Military Justice: Disorder and Neglect to the Prejudice of Good Order and Discipline (Powers, Article 134c). It also created a hardship to my fellow soldiers and threatened the proper, timely completion of the task at hand. This discipline of a soldier is only truly challenged when he is faced with a duty he does not want to perform. Because the good order of a Squad, a Platoon, or a Company often depends on the discipline of each of its individual members, it is imperative that every single soldier practices good discipline at all times, especially when circumstances challenge what he wants to do with what he must do. When one soldier fails to put his personal desires aside, it shows a lack of respect towards his fellow soldiers, and it may have the additional adverse effect of tempting others to disobey orders as well. Having thought about my actions, I see that my failing to report on October XX, 2006 did just this, and I regret my actions and the effect they may have had on others. I understand that my actions do not reflect well on my desire to uphold good order or discipline, that they cast a negative light on me and my Company, and that further violations of Article 134c of the Uniform Code of Military Justice: Disorder and Neglect to the Prejudice of Good Order and Discipline are not in my best interest. It is my intent to keep this in mind and in the future, to act with a greater degree of appropriate decision-making. I fully appreciate the historical significance of today’s Uniform Code of Military Justice, and my responsibility as a proud and dedicated member of the United States Armed Services to adhere to its Articles. I understand that my actions on October XX, 2006 when I failed to report to my special work detail appears to be an indication on my part of a lack of respect for the UCMJ, the basis of the military justice system, and that in skipping my special work detail on October XX, 2006, I violated Article 86 of the Uniform Code of Military Justice: Absence Without Leave; Article 90 of the Uniform Code of Military Justice: Willfully Disobeying a Superior Commissioned Officer; Article 92 of the Uniform Code of Military Justice: Failure to Obey an Order or a Regulation; Article 133 of the Uniform Code of Military Justice: Conduct Unbecoming an Officer and a Gentleman; and Article 134c of the Uniform Code of Military Justice: Disorder and Neglect to the Prejudice of Good Order and Discipline. Having taken time to reflect upon my actions, I see clearly that regulations are in place to assist me, as a soldier, in performing my duties in the manner that best suits me individually and my fellow soldiers as a whole, and that in failing to report to my special work detail on October XX, 2006, I let myself and those who count on me down. This lapse in judgment reflects poorly on me, on my Company, and on the United States of America, and I intend to avoid any similar events in my future, so that I might reflect the attitude of the proud, dedicated soldier that I am to those with whom I serve. R eferences Articles of War (1912-1920). , The In Military Legal Resources.Library of Congress. U. S. Govt. Retrieved August 29, 2006, from http://www. loc. gov/rr/frd/Military_Law/AW-1912-1920. html. Elston Act (1948), The. In Military Legal Resources. Library of Congress. U. S. Govt. Retrieved August 29, 2006, from http://www. loc. gov/rr/frd/Military_Law/ Elston_act. html. Index & Legislative History of the UCMJ (1950). In Military Legal Resources. Library of Congress. U. S. Govt. Retrieved August 29, 2006, from http://www. loc. gov/rr/ frd/Military_Law/index_legHistory. html. Pound, Edward T. (2002, December 16). Creating a code of justice. History. U. S. News & World Report. Retrieved August 30, 2006 from http://www.usnews. com/usnews/ news/articles/021216/16justice. b. htm. Powers, Rod. Punitive Articles of the UCMJ: Article 86—Absence without leave. Retrieved August 29, 2006, from http://usmilitary. about. com/od/punitivearticles/a/mcm86. htm. Powers, Rod. Punitive Articles of the UCMJ: Article 90—Assaulting or willfully disobeying superior commissioned officer. Retrieved August 29, 2006, from http://usmilitary. about. com/od/punitivearticles/a/mcm86. htm. Powers, Rod. Punitive Articles of the UCMJ: Article 92—Failure to obey order or regulation. Retrieved August 29, 2006, from http://usmilitary. about. com/od/punitivearticles/ a/mcm92. htm. Powers, Rod. Punitive Articles of the UCMJ: Article 133—Conduct unbecoming an officer and gentleman. Retrieved August 29, 2006, from http://usmilitary. about. com/od/ punitivearticles/a/mcm133. htm. Powers, Rod. Punitive Articles of the UCMJ: Article 134—General article. Retrieved August 29, 2006, from http://usmilitary. about. com/od/punitivearticles/a/134. htm. Uniform Code of Military Justice; Text, References and Commentary Based on the Report of the Committee on a Uniform Code of Military Justice to the Secretary of Defense [the Morgan Draft] (1949). In Military Legal Resources. Library of Congress. U. S. Govt. Retrieved August 29, 2006, from http://www. loc. gov/rr/frd/Military_Law/morgan. html.

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/