Marketing have a very important role to play in selling the cars that Burnaston manufacture because without this element then the customers wouldn’t know the cars existed therefore resulting in no sales. They present the cars to the public by advertising which is funded from the finance department & also checked by the admin department. The types of advertising vary according the specific market Toyota are trying to access & the product they are selling. When the advertising from the marketing & sales results in a sale from either there website or Showrooms, the order is passed on to the Admin department from which it will be processed to the production line. Marketing and sales are closely coordinated with production due to the fact that no car is made until it is ordered therefore enabling the customers to have what they won’t.
Administration Administration is the part of the factory that processes everything; it is really the heart of the factory where everything is run from. When an order is received from marketing & sales, the way in which Toyota Burnaston processes this order is very high tech. Each order is assigned with a special Identification number, which contains the cars specification & customer’s details that is sent to the production line to start production through a sophisticated I.T system that Burnaston have installed. This illuminates any human error which can case inaccurate results & also increases efficiently in the time that orders can get processed which makes this system very effective. The admin department also orders the raw materials needed for the next shift using the pull system which is dependent on the finance section to provide the funds for these raw materials as well as the finance to pay for all the wages & salaries that the admin department also deploys.
They are also in charge of “keeping the books” and recording information such as profits & cars manufactured which the information could be used for future development of the factory. The link between the 2 departments is critical to ensuring that everything is in place to make cars effectively. Production When the order is received from the admin section it contains the identification tag which stays on the car all the way through to the finishing stages ensuring that the car is built with the correct components & also the correct specification. This ensures total quality whilst also combining with Kaizan & Jidoka that eliminate any problems in the production line whilst also potentially improving the factory resulting in even better quality within there cars.
Production is also influenced by the “just in time” system ensures competitive pricing & also results in minimum delivery periods. The way in which this works is simple, The materials to produce the car ordered arrive in the next available shift, determined by the admin department, that will be utilized within the next 8 hours (shift time) so that the production line is not waiting for any materials.
Because Toyota keeps minimum stock, this enables them to reduce running cost of the extra space & employees required therefore bringing the price down. The TPS system ensures efficiently production along with automated production which speeds up the production time therefore reducing delivery times. Using the “pull system” at Burnaston guarantees that no waste or over production is generated because no car is made until it is sold. This contributes to Toyotas effort in “green strategies” that use up less energy.
Finance The finance has the main role to play in the factory mainly due to that this department has connections with every other department in the Burnaston Factory. The finance department controls & managers the budget that is received from the headquarters in Japan & allocates this money to the departments within Toyota as needed. This ensures that Toyota Burnaston achieve its aims & objectives by operating successful departments for which the Finance of these departments play a big role.
Administration – This department requires funding to pay the suppliers & all the wages. This ensures that the admin department has enough money to pay for the supplies of materials & that the workforces in Toyota are also paid. Marketing & sales – This department requires funding to launch any new advertising campaign or to do any market research to launch a new product line. This is vital for Toyota because they need to introduce new products, such as the Auris to keep in the public eye enabling Toyota to promote more efficiently. Production – This department is controlled via the admin section but still requires funding to enable the purchase of raw materials to product the cars that Burnaston manufacture. If no finance could be provided to this area then the Burnaston factory could be in serious trouble has if no cars are manufactured, then no money is coming into the factory causing Burnaston to run into dept.
The finance department are also is in charge of ensuring that all profits are collected which are recorded by the admin department & that all production cost are covered which include fixed & running cost. This calculations are processed using databases, spreadsheets etc that again illuminates human error which could cause there figures to be incorrect. This gives Toyota Burnaston an accurate images of there current financial status & capability. They also produce important calculations such as break even to determine when Toyota is going to break even. Although the factory is already producing profits, the finance department may have to perform this calculation quite often to determine the point of which they will make any profits for each month or year.
Toyota Management Toyota management is able to produce an overview on how efficiently & effectively the Burnaston plant is operating by coordinating key information from the functional areas within the factory. Marketing & sales provide information on how they are going to sell there cars & which types of advertising they are going to use. This is determined by the market segment & the product they are marketing.
Production provides information such as how many cars have been made & how fast they have been manufactured. Also, they can gather results from kaizan from workers working on the production line which Toyota can then evaluate and potentially making alterations to improve productivity & production. Admin provides information on the cars that have been sold & the production methods use. They also contain information on what the customers have ordered & may to improve the production are able to create faster production methods for a certain component that is significantly preferred, if any. The finance department is able to provide the figures such as profits & breakeven. This information highlights the success of Burnaston.
All this information from the different departments enables Toyota to evaluate any improvements that need to be made to either improve working conditions, productivity or profit. Cooperation of functional areas The cooperation between the functional areas can be illustrated by the recent release of the new production car, The Toyota Auris! This car was introduced to keep Toyotas product line alive whilst also offering new, modern, reliable cars to the public. The first step in developing a new car like the Auris Is Market research. The finance department provides funding to the marketing & sales to conduct market research which is then administrated to identify what type of car the customer’s wont & to determine a market segment & price bands for the car.
The project development team is again funded by the finance department as well as coordinated by admin to carry out the long & tidiest prospect of producing a prototype car. This is made in connection with production that would ensure that it works and they would evaluate the viability for mass production. Also, the financial viability is determined by the finance department that would determine break even & the cost of producing new product lines to manufacture this car. The overall viability of the project would be estimated by management finance and administration who would consider the costs and the benefits & therefore would decide the future of the car.
The costs that Toyota will have to pay are for the retooling production costs so bringing in more machines, also paying the employees the training of the employees and the recruitment of employees. They also have to pay the costs to the suppliers for the materials. Toyota has to also pay for the marketing like the website to keep that up and running it need to be paid for. The costs include: – Retooling of production lines to manufacture assemble new components, the Fixed Cost.
Wages & training for the staff that would operate the production line. The staff would require training so that they know how to successfully produce the car. – The suppliers might be at risk because they would have to invest in new machinery to product the required parts that Toyota need. – Toyota will have to pay for marketing to actually sell the car. The main benefit in introducing a new product line is that it keeps Toyota in the public eye & ahead of any competition. Also, the new product line might result in increased profit for Toyota & also helps to expend the company further.