How can other companies implement Toyota's approach to process op

Other companies can implement Toyota's approach to process optimization by first analyzing their current reality and constraints, just like Toyota did after the 2011 earthquake in Japan. This involves building a comprehensive database of all components linked to their suppliers. Companies should then ask their major suppliers to keep a significant amount of supply on hand, enough to last for several months. This approach requires a proactive mindset and the willingness to invest in stockpiles to ensure smooth operations even in the face of disruptions.

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Toyota had already experienced supply chain disruptions after Japan's 2011 earthquake, which caused it to confront this issue earlier than other automakers. After its suppliers were disrupted, Toyota built a database of 400,000 components linked to their suppliers. Before 2020, Toyota was able to ask its major suppliers, such as Denso or Renesas Electronics, to keep up to 50 days worth of supply on hand. By July of 2021, that increased to stockpiles with four-months-worth of supplies. Without an analysis of its current reality and constraints back in 2011, it wouldn't have been ready for the challenges of 2020.

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Process Optimization Methodologies

Have you ever wondered if effort or time is being wasted on outdated processes? Are you struggling to balance production demand with clunky workflows...

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