FRANKLIN ABARA

MBA CLASS

NEXFORD UNIVERSITY

OPM 6090

MODULE 4

PROF MARK McCoy

AUGUST 1, 2024

Value-based Decision-making in Technology Operations

Companies try to mimic but Based on the assertion of (Helmond et al, 2022) the Toyota production system otherwise known as
rarely achieve the efficiencies
of Toyota. Why? TPS is a broad socio-technical system that is created by Toyota, which embodies its management

principles and procedures for organizing manufacturing and logistics. Many Companies find it so

tough implementing the Toyota Production System because they often fail to realize that the whole

system, and not just few elements of it, is necessary to achieve the same level of cultural and

process improvement which we have witnessed at Toyota (Morgan, 2020).

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The limitations of easily A study by (Flinn, 2019) has opined that the successful implementation of the Toyota Production
adapting TPS in each
organization? System in industrial operations can lead to an improvement in employee morale and overall value

creation. When the TPS is carefully planned and accepted by all staff and members of a firm, it can

improve the efficiency of processes. Resistance tends to arise when there is a lack of acceptance of

the TPS idea. Some hiccups associated with implementing TPS include:

Huge Training Cost: TPS as a tried, and tested methodology and management approach requires

leaders within a firm to receive fundamental training in TPS tools and practices to effectively use

this management idea. The firm should be willing to invest more in training and certification for

stakeholders. Although this may initially cost more, the return on investment will not only cover

the training expenses but also lead to enhanced financial outcomes in the long run.

Huge Implementation Cost: Oftentimes to enforce TPS in companies, there is a need to establish

new infrastructure or change the existing ones. This advancement increases the firm’s expenses,

but there will be minimal to no cost involved in the planning process.

Highly Time sapping for small scale industry: Small scale firms do not involve in many

operations and manufacturing processes. These processes can be managed with general methods

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 and computations. Activities that do not add value can also be minimized with the use of general

training and practices. In small scale industry, TPS implementation is long and consumes time.

There is a Character Problem: There is a likelihood for some persons to revolt to learning new

things and adopt new practices, so that they can have a value-based experiences. Such character

can be a major impediment in enforcing TPS within the firm (Course Sidekick, 2023).

Not Embraced by Staff or Partners: Often because of bad leadership, lack of know-how, and

concealed advantages of TPS, staff and partners do not accept the idea to enforce TPS within the

firm (Course Sidekick, 2023). It is preferable for leaders to inform the partners about the positive

outcomes of similar firms who have embraced TPS. The staff sometimes want to continue the use

of archaic means of operation and do not want to accept new ones (Course Sidekick, 2023).

5 TPS Practices
TPS Practice #1: Grooming leaders who really comprehend the job, live ideas and pass it to others

A leader must really have a great comprehension of his job description and daily work routine to the latter to be able to pass the

company’s ideas. This is the reason leaders should be trained from within the organization rather than be sourced externally. The

work of a leader should not just be seen as completing a task and having great people management knowhow (Course Sidekick,

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2023). Leaders of organizations should be looked up to as propagators of the company’s ideas and ways of doing business (Course

Sidekick, 2023).

TPS Practice #2: Have regards for larger network of stakeholders and distributors by countering them and assisting them

get better: It is important to have regards for stakeholders and distributors and treat them like an adjunct of the business. Counter

the business partners outside to grow and improve. This depicts that they are valued. Also set tough targets and assist stakeholders

in achieving them (Course Sidekick, 2023).

TPS Practice #3: Keep the workload at a steady level, should neither be rising nor falling. Otherwise called ‘HEIJUNKA’ in

Japanese which means (To do a job like the Tortoise and not the Hare): Taking out waste is just a common fraction of the sum

of making the TPS a success. Taking out overburden to persons, equipment, and taking out inequality in the production schedule is

highly significant, working to keep the workload of all manufacturing and service processes at a steady level as another method

which is an alternative to the start/stop approach of working on projects in batches that is distinctive in most firms is also important

in the process (Course Sidekick, 2023).

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TPS Practice #4: To build a culture where we stop to fix issues. In view of achieving quality right at the first instance: It is

the quality of a commodity or service that push customer loyalty and the business value proposition that is why it is important to

utilize all modern quality assurance medium available. Also, utilizing visually automated equipment has the ability of detecting

issues and stopping itself and alerting the team or project leaders that a machine or process needs assistance. Utilizing machines

with human intelligence is the beginning of building in quality. It is also important to build into the organization support systems

to quickly resolve the problems and put in place counter measures (Course Sidekick, 2023).

TPS Practice #5: Regulating tasks are the beginning of perpetual improvements and staff empowerment: Utilizing stable,

repeatable ways everywhere to keep the predictability, standard timing, and standard output of the processes which is the beginning

for the flow and pull (Course Sidekick, 2023). Capturing the accumulated learning about a process up to a point in time by

standardizing today’s best practices and allowing creative and personal expression to improve upon the standard and then

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embedding it into the new standard so that when an individual moves, the learning is passed on to the next individual

References

 Flinn, P. (2019). Toyota Product Development System 13 Principles and their cross-

referencing.

 Helmond, M. Yilmaz, A. Flouris, T. Winner, T. Cvetkoska, V. & Dathe, T. (2022). Toyota

Production System. Lean Management. Kaizen, Kata, & Keiretsu. 73-84.

 Course Sidekick. (2023). Value-based Decision-making in Technology Operations.

Overcoming.1-1.

 Morgan, J. (2020). The Toyota Product Development System. Integrating People, Process,

& Technology.

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