Toyota's UK Burnaston operation has considerable strengths. These include the support of Toyota's corporate finance strategy (keiretsu) & the fact that Burnaston fits into Toyotas long term global strategy. This means that Toyota Burnaston has a long term financial support enabling Toyota Burnaston to make a substantial loss. Toyota knows that Burnaston is going to be a success so Toyota is happy to do this to access the European market within the EU.
Burnaston has benefited from the specialising in a limited product range, the Avensis & corolla allowing for maximum quality & to expand on economies of scale from suppliers giving Toyota the best buy which will reflect in there final product: The Avensis & Corolla. Also, with Toyota being a very powerful company, they can negotiate the best deals with there "just in time" suppliers as many of them only supply & depend on Toyota Burnaston, therefore meaning the suppliers have to co-operate with Toyota's prices to essentially stay in business. Burnaston is proving to be a very effective car producing plant.
The TPS (Toyota production system) works very efficiently & the "pull system" ensures that all cars manufactured are sold. Production, productivity, sales & profits are all improving which reflects on Burnaston making profit in 2004 for the first time. Toyota has a strong relationship with its "just in time" suppliers enabling a very efficient system whereby parts for the next working 8 hour shift arrive 1/2 way in between the previous shift. This strengthens Toyota Burnaston as no large storage space is need because they only stock enough parts to keep the factory running for 8 hours.
The quality that Toyota build into there cars is assured by the structured systems Toyota Burnaston have in place – Jidoka & kaizan. These two systems operate in the Factory & are for potential problems & further improvement & development of the factory. Jidoka – It refers to the ability to stop production lines, by man or machine, in the event of problems such as equipment malfunction, quality issues, or late work. Jidoka helps prevent the passing of defects, helps identify and correct problem areas using localization and isolation, and makes it possible to "build" quality at the production process.
Kaizen – The Japanese term for improvement; continuing improvement involving everyone: managers and workers. In manufacturing, kaizen relates to finding and eliminating waste in machinery, labour, or production methods. Also, the success of Burnaston depends on these "just in time" suppliers to feed there "Pull System" which is essentially pulling the cars through the factory when they have been ordered.
Toyota Burnaston is considered to be very successful although in 2004 was only 24th in car manufacturing plants in the European, But Toyota Burnaston sold 211,00 cars in 2003 whilst increasing there production by 13.7% in 2004 where they sold 240,000 which increased there European market share by 0. 3% (5. 4 – 5. 7)
The Aim of Burnaston. Also Toyota Burnaston was ranked 8th in 2002 for productivity, even though Burnaston as a workforce of only around 5,000 (which is ranked 33rd in the European Car Manufacturing Plants) they still manage to produce productivity levels of 81, just 19 behind the leader, Nissan. But the success of Burnaston can be showed below in Table A & B as both cars manufactures at Burnaston, the Avensis & corolla are in the Top 10 of European cars.