The Potential Treatment of Alzheimers Disease Through CRISPR-Cas9 Genome Editing - Free Essay Example

Sample details Pages: 6 Words: 1821 Downloads: 1 Date added: 2019/04/12 Category Medicine Essay Level High school Tags: Alzheimer's Disease Essay Did you like this example? Named after Dr. Alois Alzheimer who discovered the disease in 1906, Alzheimers disease is the progressive deterioration of the brain that slowly destroys cognitive function. While some treatments exist to alleviate the symptoms of Alzheimers disease, there is no cure. Don’t waste time! Our writers will create an original "The Potential Treatment of Alzheimers Disease: Through CRISPR-Cas9 Genome Editing" essay for you Create order Considering that researchers have studied the disease for over 100 years, making steps toward finding a cure is urgent. With evidence for the potential risk and protective factors of Alzheimers disease, dementia, and cognitive decline, researchers are now looking at gene editing as a solution. The CRISPR-Cas9 system, is an inexpensive, yet powerful, tool used by researchers to alter DNA sequences and gene function that has already shown promise in other neurological disorders. Through gene editing, the CRISPR-Cas9 system would go beyond the temporary lessening of Alzheimers diseases symptoms and potentially prevent or stop the depreciation of the brain by targeting associated genes and correcting genetic defects. When examining the applications of CRISPR-Cas9, however, it is important to factor in both the ethical concerns of using this biotechnology, including the extent to which CRISPR should be permitted and who should have access to this technology, and concerns of not using it. While the system presents many ethical concerns and lingering questions, CRISPR-Cas9 provides a revolutionary and much-needed potential solution to Alzheimers disease. In researching potential treatments for Alzheimers disease, it is necessary to examine both types: early onset and late onset.1 Early-onset Alzheimers disease, also called familial Alzheimers disease (FAD), occurs in people between the ages of 30 and 60 and represents less than 10% of all cases. FAD has a strong genetic component caused by mutations on chromosomes 1, 14, and 21.6 Mutations on chromosome 1 lead to the formation of amyloid precursor protein (APP), and those on 14 and 21 lead to the formation of abnormal presenilin 1 (PSEN1) and abnormal presenilin 2 (PSEN2) respectively. Late onset Alzheimers disease occurs in patients over the age of 60 and represents over 90% of all Alzheimers cases. In addition to genetic factors, lifestyle and environmental factors such heart and metabolic conditions also contribute to this type of Alzheimers disease. The apolipoprotein E (APOE) gene, particularly the APOE e4 allele is associated with increased risk of developing Alzheimers. Theref ore, in order to cure Alzheimers disease, these genes should be targeted specifically, yet there is no guarantee this will be a solution given the impact of environmental factors. Plaques and tangles are the two neurobiological markers of Alzheimers disease as opposed to dementia. Plaques are clumps of amyloid beta protein, which is derived from APP cleaved by beta secretase and gamma secretase, that breakdown brain cells by disrupting cell communication. Brain cells use an internal support and transport system that transports essential nutrients and materials. This system requires the normal structuring and function of a protein, tau. In Alzheimers Disorder, tau protein threads tangle abnormally inside brain cells, damage the transport system, and contribute to the death of brain cells. The problem, however, is that the presence of plaques and tangles, to confirm Alzheimers disease, can only be observed in an autopsy after death. Despite this, the accumulation of the Amyloid Beta protein can now be seen in PET scans as early as 15-20 years before symptoms are present, leaving a large potential therapeutic window.4 In order to properly treat the neurobiologica l markers of Alzheimers, and take advantage of preventative and disease reversal treatment, the ability to diagnose plaques and tangles is essential. Symptomatic treatment drugs are divided into two main categories: cholinesterase inhibitors and NMADA receptor antagonists. The first mechanism is used in classical drugs called cholinesterase inhibitors, prescribed for mild to moderate cases, that attempt to slow down the Alzheimers disease by inhibiting the enzyme that breaks down acetylcholine. Donepezil, galantamine, and rivastigmine are three cholinesterase inhibitors.8 The drug Memantine is a NMDA (N-methyl-D-asparte) receptor antagonist and is used for moderate to severe cases. Memantine protects brain cells against excess glutamate, a chemical messenger released by damaged Alzheimers cells that usually attaches to NMDA receptors and results in a cell-damaging over-exposure of calcium. Despite much research and efforts, there remain no options for the prevention and treatment of Alzheimers disease. There are currently three common gene editing tools available, including Zinc Finger Nucleases (ZFNs), transcription activator-like effectors nucleases (TALENs), and the clustered regularly interspaced short palindromic repeats (CRISPR). In particular, CRISPR-associated nuclease 9 (CRISPR/Cas9) is the most attractive option because it is faster, cheaper, more accurate, and more efficient than any other existing methods. CRISPR technology is adapted from naturally occurring defense mechanisms of bacteria and archaea. Organisms use CRISPR derived RNA and Cas proteins like Cas9 to stop the attacks of invader viruses by chopping up their DNA. These components are then transferred into another organism to perform gene editing by cutting DNA and tricking a cells natural DNA repair mechanisms to complete a desired change. In particular, Cas9 is directed to cut a region of DNA, fusing crRNA, that is specific to the DNA target, and tracRNA to create a single guide RNA that consists of a small pre-designed RNA sequence. The cells natural repair mechanisms introduce changes in the genome and repair the Cas9 induced double strand breaks. Insertions and deletions (INDELS) may be introduced to disrupt gene function. Science is now turning towards using CRISPR-Cas9 for Alzheimers disease after successful trials for Huntingtons disease, a different neurological disorder. Researchers were able to successfully edit out the faulty region of the mutant HTT gene in an in vivo mice model using cells derived from patient samples using the technique. There is clear potential for the use of CRISPR-Cas9 in correcting the autosomal-dominant mutations of PSEN1 and PSEN2 in early-onset Alzheimers disease models. This is supported by the fact that CRISPR-Cas9 was recently used to correct the PSEN2 autosomal mutations in iPSC-derived neurons. In addition, CRISPR/Cas-9 was used to knock out the Swedish APP mutation in patients. There is also evidence that CRISPR/Cas9 is a useful technology in treating late-onset Alzheimers. A recent, although not formally published study, shows proof that CRISP/Cas9 can be used to control the amyloid pathway attenuating cleavage and A production, while up-regulating the neuroprotective a- cleavage. This APP editing, by targeting the C-terminus region, was proven to be effective in various human neurons and mouse cells. Lastly, research shows that CRISP/Cas9 can be used to convert the APOe4 allele, which is associated with an increased risk of developing Alzheimers disease, to an APOe3 allele to lower this risk. Ethical and social issues regarding the use of CRISPR in people are centered around philosophical and safety dilemmas. The philosophical arguments question whether or not CRISPR should be used to alter germ-line cells, in human embryos, that would be passed on to the next generation. In addition, there is a fear that this technology will lead to the creation of designer babies. Recently in a 2015 Napa Valley meeting, a leading group of CRISPR-Cas9 developers, scientists, and ethicists met to discuss the ethical limits of CRISPR systems. Shortly after, a multidisciplinary committee of the National Academies of Sciences, Engineering, and Medicine published a report that favored somatic genome editing, but not for any kind of enhancement. In terms of safety, CRISPR is a relatively new technology and much of its effects continue to be unknown. Some are worried that the technology could still be more accurate and that unknown genetic changes could be occurring with unforeseen consequences . For example, it is important to ensure that the disruptions of the DNA occur in the mutant gene and not in the wild-type allele. While accuracy could be considered an issue, CRISPR technology is advances at such a rapid pace that technical limitations should be of minimal concern. The consequence of editing a gene in germline may be unclear and unpredictable because the interaction of genetic information and biological phenotypes is not clear, however. And, considering that Alzheimers has many environmental factors adds to this concern. Another moral and ethical consideration, however, is not engaging in genome editing considering the tremendous social and economic cost of Alzheimers. Alzheimers disease currently affects 5.5 million Americans and this number is expected to triple by 2050 due to a growing and aging population. In addition, it is the third leading cause of death among Americans only trailing heart disease and cancer. $259 billion are going towards managing Alzheimers in the United States today, and this cost is expected to reach $1.2 trillion in 2050 which would bankrupt the entire health care system. Therefore, Alzheimers disease not only affects a large portion of the population due to the large number of those diagnosed, but is an economic burden to everyone. As a result, some may consider not using CRISPR unethical because continuing without a solution is detrimental to everyones health. In addition to Alzheimers as a social challenge due to economic cost, the progression of symptoms presents a social challenge to both those diagnosed and those around them. Mild Alzheimers disease is characterized with symptoms such as wandering and getting lost, trouble managing expenses, repeating questions, taking a longer time to complete everyday tasks, and personality changes. Moderate Alzheimers disease damages areas of the brain that control language, reasoning, sensory processing, memory, and conscious thought, causes patients to have hallucinations, delusions, and paranoia, and makes them unable to recognize friends and family.1 Patients with severe Alzheimers cannot communicate with others and are completely dependent another person as their bodies completely shut down.1 These changes may frustrate the patient and be hard to comprehend for others. Tasks that were always handled by the diagnosed, will now have to be taken care of by someone else. The slow deterioration of b odily function can be difficult to watch especially when so much assistance is required, causes emotional pain, and tension from economic burden making any solution worth it. The CRISPR/Cas9 system has the ability to target just about any gene and can do so more efficiently and effectively than any other current gene-editing mechanism. In doing so, however, there needs to be both clear cut guidelines reflecting the ethical use of CRISPR/Cas9 as well assufficient research regarding a disease in order to ensure that gene-mutation has an effective outcome. In the case of Alzheimers disease, there needs to be an accurate method of diagnosis, considering that a significant number of diagnosis are mistaken as Alzheimers disease instead oftreatable conditions such as depression, vitamin deficiencies, and hypothyroidism.3 In addition, the particular genetic risks leading to both early and late onset Alzheimers disease need to be made clear.Regulations need to be put in place protecting the life-saving aspect of CRISPR, rather than its cosmetic potential, and should require deep reasoning especially when consideringgremlins gene editing. Despite risks, urgency mus t also take precedent. Whether CRISPR-Cas9 gene editing realizes itself as a therapeutic tool in treating Alzheimers is in the hands of researchers, this kind of treatment, with sufficient regulation, will prove revolutionary as these symptoms not only impair the person with the disease, but also disable the lives of their family and friends.

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Emily Bronte s Wuthering Heights - 1283 Words

Emily Brontà «Ã¢â‚¬â„¢s Wuthering Heights is told from a complicated point of view. The narrator of the past is Nelly Dean, while the present time narrator is Mr. Lockwood. Set as a story within a story, Nelly tells Lockwood an eyewitness account of her dealings with the Earnshaws and the Lintons, while Lockwood is the outsider who records in his diary Nelly’s stories of Wuthering Heights and Thrushcross Grange. From the novel’s beginning, Lockwood proves himself to be objective, while Nelly is subjective as she is able to recall details from many years ago in order to tell the tale of Wuthering Heights. Lockwood’s curiosity brings the reader into the Emily Brontà «Ã¢â‚¬â„¢s world, but it is Nelly who is most reliable as she is the first hand witness to the two generations of Wuthering Heights. The novel begins with the first person narration by Lockwood, who is a sophisticated city gentleman, telling of his â€Å"inhospitable treatment† at Wutherin g Heights (Brontà « 7). 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Should Sports Be Banned - 1085 Words

Football is known as a contact sport, but now people are seeing the true harm it can do to your body. For the past decade, there has been a debate forcing football to be banned without the proper equipment. Although there are many dangers to the sport the NFL does not compensate for the players who have been injured. Banning football would be unethical but it is for the greater good of the players. When you are hit by the opponent during a game your brain is being pushed against your head and it never fully recovers. One never knows the impact or realizes the force. There have been more than 200 deaths caused by the lack of equipment and medical attention to these players. There is a 58 percent of college players and high school†¦show more content†¦When you play this sport you are more prone to ankle sprains, hamstring injuries and meniscus tears and that, not even the worst injuries that can be caused. 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Media Communication The Fundamental Changes

Question: Discuss about theMedia Communicationfor the Fundamental Changes. Answer: Introduction In this paper, the author discusses some of the fundamental changes that have shaped and characterized the world of communication. It is true that the sphere of communication and media encompasses various aspects and minor elements that are always changing. The current media and communication platforms are very different from the past ones, thus the need to investigate the causes in the shift of the changes. We are currently living in a digital era where communication amongst and between people is done using many devised forms, and that communicating does not need to be done by word of mouth. Just to note, even taking a selfie photo and posting it on social media platforms such as Twitter and Facebook is also a form of communicating. While discussing this, the paper will expound much on the effects of these new forms of communication on the media perception. Background Information According to the definition provided by Kind (2010), media convergence refers to a continuous process that should not be perceived as a substitution of the old forms of media, but as a close interaction between various media but seen as an interaction between media platforms and forms (Senft, 2008, p. 10). One interesting area of great concern while looking at positive versus negative outcomes of media convergence is digital media proprietorship (Van Dijck, 2008, p. 65). In the current age, the capability to curb media industry is packed in the hands of private investors and proprietors as well as moderately little number of dominant big media firms. For better illustration, some organizations including Warner Bros Inc, which formerly used to concentrate much on the film industry, in the contemporary society, they have control over a variety of media outlet. Such include PC games, books, magazines, sites and toys, which are considered as a player during the time spent media convergen ce (Barakat, 2014, p. 23). Dominance of Digital Media Convergence Outcomes of digital media convergence trend are perceived as both positive-oriented and negative-oriented. From one major viewpoint, this trend triggers a considerable reduction in the basic qualities of content offered in a propensity that voices who lack financial force and are not be considered. Additionally, it can be argued that industry-driven media controlled by big global media enterprises 'have the potential to effectively enhance the expected estimation underlying the administration, the primary adaptability of themes as well as the capability of the involved contributors' (King, 2010). Apart from empowering innovative improvements, it can bring transformation in the elitism of media personnel and trigger broad mindfulness. Another important concept of media convergence that can be conceived as its significant disadvantage is what is known as the 'investment gap' (Klinenberg, 2005, p. 55). This conception alludes to the manner in which media convergence compels various grou ps of people to undertake an active part in content creation, as it stipulates extended accessibility to cutting edge advancements, commonality with differently new forms of media, and contributing to the build-up of specific aptitudes. Subsequently, certain fragments of the media audience have a tendency to fail and unable to completely partake in the new media culture (Emmerson, 2000, p. 15). King (2010) contends that one of the methods of understanding media convergence lies in terms of collaboration amongst old forms and new forms of media. This conception can be made possible through accurate utilization of the case of television industry as well as gaining improvement throughout always. Transitioning from simple media to progressive media remains centrally important in the realms of media convergence face off. The term "analogue" gives a depiction of something 'that takes after something else' (Meikle, 2011). In this manner, it therefore signals that are transmitted via television can be seen as being closely resembling the light or sound of the genuine scene (Vivienne Burgess, 2013, p. 9). Speaking of analogue media, every inbuilt structure was particular and differently independent from the rest because of the greater need to effectively utilize diverse 'media content, properties and mechanical assemblies'. Following the manifestation of computerized code, the situ ation transformed immediately, opening new conceivable outcomes and paving way for media creation and media convergence. Resultantly, it sparked off new types of connection amongst makers and shoppers (DOrazio, 2014, p. 9). Selfies: Shaping the New Digital Media We currently live in the age of selfie. A selfie is known as a fast self-portrait that is made with a phones (smartphone) camera and instantaneously inscribed into a network. It has become an instant visual communication of where we currently live, what we love doing, how we think, and who we think is watching and following us. Lasn Gmez-Cruz (2009, p. 210) document that selfies are eventually shaping and transforming aspects of self-awareness, body language, social awareness, privacy, humor, public behavior, and altering temporality. Having become a new visual genre, selfies pose their own structural autonomy. Digital media analysts have sought to know why selfies existed in the first instance. The primary purpose of having selfies is that everyone posting a selfie does so with the mindset of being seen here, immediately, by other people, mostly on social networks. One thing that must be remembered is that the act taking selfies is never accidental. Whether completely casual or car efully staged, the sender has to start by first approving any selfie before embedding it on a network (Meikle, 2011, p. 31). Relationship Between Media and Music May Hearn (2005, p. 196) informs that the commodity form of music has greatly undergone some transformation, just as social media does. In the past, music was once dominated by recordings done on physical media including tapes, compact discs, and LP records. Sheet music characterized a sizeable portion of the market, same to reproduction rights, mechanical rights, and payment for live performance (Suhr, 2012, p. 27). In the present day reality, the worlds biggest music store deals only in the sale of digital files. Further, sale of recordings on CD have fallen and the trend has caused a great financial slack. Looking at the current conjecture, globally, it is apparently trues that more recordings are nowadays circulating through channels that do not carry the desirable official sanction of recording states or industries. Scholars and artists of music and art have also expanded their concept of from a formal concern to one of physical, economic, or cultural form. In this regard, the matter and form of music remains closely bound in the current age, especially in consideration of the ways in which recordings move across milieus and formats (Rettberg, 2014, p. 30). Basic Applications/Examples of Media Convergence Some keen media observers expect that we will in the long run get to all media content through one gadget, or "black box". In that capacity, media business practice has been to distinguish the following "black box" to put resources into and produce desirable media. This has triggered a variety of issues (Turkle, 2013, p. 30). Firstly, as "secret elements" are created and surrendered, the individual is left with various gadgets that can play out the same errand, as opposed to one devoted for every assignment. For instance, one may possess both a PC and a computer games console, in this manner owning two DVD players. This is in opposition to the streamlined objective of the "discovery" hypothesis, and rather makes a lot of mess. Also, technological convergence has a tendency to be exploratory in nature. This has prompted shoppers owning technologies that extra capacities that are harder, if not illogical, to utilize more than just one particular gadget. Numerous individuals would just watch the TV for the span of the feast's cooking time, or while in the kitchen, yet would not utilize the microwave as the family television. These illustrations demonstrate that much of the technological convergence is pointless or unneeded (Brandt, 2014, p. 33). In spite of the fact that purchasers principally utilize a particular media gadget for their necessities, other "black box" gadgets that play out the same errand can be utilized to suit their present circumstance. In spite of the making of "black boxes", proposed to play out all assignments, the pattern is to utilize gadgets that can suit the shopper's physical position (Yoo Kwon, 2011, p. 38). Because of the variable utility of convenient innovation, convergence happens in high-end cell phones. They consolidate mixed media administrations, GPS, Internet access, and versatile communication into a solitary gadget, proclaiming the rise of what has been named the "smart phone," a gadget intended to evacuate the need to convey numerous gadgets (Rugg, 2014, p. 36). Convergence of media happens when different items meet up to shape one item with the advantages of every one of them, otherwise called the black box. This thought of one technology has ended up being termed as a fallacy as a r esult of the failure to really put every single specialized piece into one. For instance, while individuals can have email and Internet on their telephone, they would still want Internet and email as well. Cellular telephones are a decent case, in that they integrate advanced cameras, mp3 players, voice recorders, and different gadgets. This sort of convergence is well known. For the buyer out there, it implies more elements in less space; while for media aggregates it implies staying focused (Balance, 2012, p. 140). Problems of Media Convergence in the Society Media convergence has a drawback. Especially in initial structures, converged gadgets are often less reliable and functional as compared to their component parts (for instance, a cellular telephone's web program may not render some site pages accurately, because of not supporting certain rendering strategies, for example, the iPhone program not supporting Flash content). As the quantity of capacities in a solitary gadget heightens, the capacity of that gadget to serve its unique capacity diminishes. As Yoo Kwon (2011) declares, mechanical union holds huge potential for the "change of life and freedom in some ways and could debase it in others". Ardvol Gmez-Cruz (2012) trusts that this same innovation can possibly be "utilized as both a weapon of social control and a method for resistance". Since innovation has developed in the previous ten years or somewhere in the vicinity, organizations are starting to unite advancements to make interest for new items. This incorporates telephone organizations coordinating 3G and 4G on their telephones. In the mid twentieth century, TV focalized the advancements of motion pictures and radio, and TV is presently being united with the cell telephone industry and the Internet. Media convergence consolidate various advances into one. More up to date cell telephones highlight cameras, and can hold pictures, recordings, music, and other media (Steenson, 2006, p. 9). Makers now incorporate more propelled elements, for example, video recording, GPS beneficiaries, information stockpiling, and security systems into the customary cellphone. (Aldridge Harden, 2014, p. 23) Summary of the Discussion Convergence culture is a piece of participatory society. Fans and buyers can take an interest in the creation and flow of new substance. A few organizations exploit this and quest for input from their clients through online networking and sharing destinations, for example, YouTube. Other than promoting and stimulation, merging society has additionally influenced the way we collaborate with news and data. We can get to news on numerous levels of media from the radio, TV, daily papers, and the web. The web permits more individuals to have the capacity to report the news through autonomous communicates and accordingly permits a huge number of viewpoints to be advanced and accessed by individuals in a wide range of territories. Adoption of media convergence would permit news to be accumulated on a much bigger scale. References Aldridge, G., Harden, K. (2014, March 23). Selfie addict took two hundred a dayand tried to kill himself when he couldnt take perfect photo. Daily Mirror. Retrieved from https://www.mirror.co.uk/news/real-life-stories/selfie-addict-took-two-hundred-3273819 Ardvol, E., Gmez-Cruz, E. (2012). Private body, public image: Self-portrait in the practice of digital photography. Revista de Dialectologia y Tradiciones Populares, 67, 181208. Balance, C. B. (2012). How it feels to be viral me: Affective labor and Asian American YouTube performance. WSQ: Womens Studies Quarterly, 40(12), 138152. doi:10.1353/wsq.2012.0016. Barakat, C. (2014, April 16). Science links selfies to narcissism, addiction, and low self-esteem. Adweek. Retrieved from www.adweek.com/socialtimes/selfies-narcissism-addiction-low-selfesteem/147769 Brandt, R. (2014, June 25). Google divulges numbers at I/O: 20 billion texts, 93 million selfies and more. Silicon Valley Business Journal. Retrieved from https://www.bizjournals.com/sanjose/news/2014/06/25/google-divulges-numbers-at-i-o-20- billion-texts-93.html DOrazio, F. (2014, June 26). The visual social media lab launches. Pulsar. Retrieved from https://www.pulsarplatform.com/blog/2014/the-visual-social-media-lab-launches/ Emmerson, S. (2000). Music, electronic media, and culture. Aldershot: Ashgate. King, D. D. (2010). The convergence of gambling and digital media: Implications for gambling in young people. Journal of Gambling Studies, 26(2), 175-187. Klinenberg, E. (2005). Convergence: News production in a digital age. The Annals of the American Academy of Political and Social Science, 597(1), 48-64. Lasn, A., Gmez-Cruz, E. (2009). Digital photography and picture sharing: Redefining the public/private divide. Knowledge, Technology, and Policy, 22(3), 205215. May, H. Hearn, G. (2005). The mobile phone as media. International Journal of Cultural Studies, 8(2), 195211. Meikle, G. . (2011). Media convergence: Networked digital media in everyday life. New York: Palgrave Macmillan. Rettberg, J. W. (2014). Seeing ourselves through technology: How we use selfies, blogs and wearable devices to see and shape ourselves. New York, NY: Palgrave Macmillan. Rugg, L. H. (2014). Picturing ourselves: Photography and autobiography. Chicago, IL: University of Chicago Press. Senft, T. (2008). Camgirls: Celebrity and community in the age of social networks. New York, NY: Peter Lang. Steenson, M. (2006). Mobile space is womens space: Reframing mobile phones and gender in an urban context. New Haven, CT: Yale School of Architecture. Suhr, H. C. (2012). Social media and music: The digital field of cultural production. New York: Peter Lang. Turkle, S. (2013). Alone together: Why we expect more from technology and less from each other. New York, NY: Basic Books. Van Dijck, J. (2008). Digital photography: Communication, identity, memory. Visual Communication, 7(1), 5776. Vivienne, S., Burgess, J. (2013). The remediation of the personal photograph and the politics of selfrepresentation in digital storytelling. Journal of Material Culture, 18(3), 279298. Doi: 10.1177/1359183513492080. Yoo, J. K., Kwon, K. N. (2011). Self in selca, self-portrait photography, as a model, photographer, and consumer. Advances in Consumer Research, 39, 660661. Retrieved from https://www.acrwebsite.org/volumes/1010248/volumes/v39/NA-39

Effects Of Dividend Changes Emerging Market -Myassignmenthelp.Com

Question: Discuss About The Effects Of Dividend Changes Emerging Market? Answer: Introduction: This report has been prepared to identify and evaluate the position, performance and worth of the Almarai Company. For evaluating the worth of the company, various financial tools and non financial tools have been analyzed. Firstly, the stockholder analysis has been done to evaluate the position and management style of the company. For this analysis, it has been evaluated that why the people are investing into this project. Further, it has been evaluated that who are the marginal stockholders of the company and how the corporate governance of the company is working. Further, it has been evaluated that what is the risk of the company in concern of the investment and how much return would be offered by the company to its shareholders (Zhang, 2012). In addition, investment return of the company has been measured and the study has been conducted on the long term and short term projects of the company. Further, capital structure choices of the company has also been evaluated and to analyze the debt and equity level of the company. Further, the optimal capital structure has been evaluated to identify the solvency risk of the company and a better balance among the stock of the company. Various theories have also been read to evaluate and identify the optimal capital level of the company. Lastly, dividend policy of the company has been evaluated and it has been analyzed that through which trend the dividends are offered by the company to its shareholders. A dividend framework of the company has been evaluated and lastly, a valuation study has been given which expresses about the total worth of the company and the position of the investment funds of the company (Thanatawee, 2013). Further, it also explains that how much earnings would be earned by an investor against his investment money in the company. Stockholder analysis: Firstly, the stockholder analysis has been done to evaluate the position and management style of the company. For this analysis, it has been evaluated that why the people are investing into this project. The annual report of the company expresses that the corporate has invested 63.74% in the company whereas 36.26% of stock has been owned by the individuals. Individuals have invested in the company to reduce the level of the tax burden (Tucker, 2011). Further, the mutual fund companies have invested 52.4% of total investment in the company. Government has invested 4% and the rest amount has been invested for the individual and the corporate to enhance the invested amount. The following table explains about the total investment in the company. investor type Number of investors Number of Shares Percentage of ownership Corporate 254 509957679 63.74% Individual 49472 290042321 36.26% Total 49726 800000000 (Investors, 2018) Further it has been analyzed that who are the marginal investors of the company and handling the business of the company on the behalf of other stakeholders of the company. Further, it explains that how the other people of the company are looking on the market position and the performance of the company (Travlos, Trigeorgis and Vafeas, 2015). Through the study on annual report of the company, it has been found that the HH Prince Sultan bin Mohammed bin Saud Al Kabeer is the main marginal investor of the company. He handles all the business and the activities of the company n the behalf of other shareholders of the company. More to it, it has also been found that the mutual fund companies are also involving into the activities of the company to look over the profitability position of the company. It has been expected from the marginal investor of Almarai Company to work with dignity and the stockholders benefits must also be considered (Shao, Kwok and Guedhami, 2013). Marginal investors must be the person who is a well diversified investor and must have knowledge about the stock market. Since, the marginal investor of Almarai Company is well diversified and working with dignity in the market, it could be said that the performance of the company is better and this company would offer a great dividend to its stockholders and the associated risk of the stock of the company would also be lesser. Risk and return: Further, for evaluation the position of the company and the investment opportunity in the company, risk and return of the company has been evaluated and it has been analyzed that how the company and its stock is operating in the market. Firstly, the risk profile of the company has been calculated and it has been found that overall systematic risk of the company is 0.67 (Bloomberg, 2018). Further, the unsystematic risk of the company could not be calculated but the annual report and financial analysts report explains that the company is managing and performing the activities and operations in a good manner. Further, the performance profile of the company has been evaluated and it has been found that the position and the performance of the company have been better. The risk of the company is 0.67 which express about a lower level of risk. The companys report explains that the stock of the company is out performed. The resources of the company have been utilized by the company in a prop er way (Naser, Nuseibeh and Rashed, 2013). Further, for performing this study, various subsidiary companies of Almarai limited have been evaluated and it has been found that how much stock and the capital of the company is owned by the people and what is weight of the company, how much the systemic risk of the company and what is the risk and return of the company. According to the stock price of the companies, the best of the companies have been calculated and the weight has been calculated through dividing the total market capital of each company with the total market capital of Almarai limited. According to the calculations and the measurements, following data has been calculated: Business Estimated value Unlevered beta Division weight Weight * Beta Western Bakeries Limited 588005395 0.63 73.50% 0.46305 International Banking services co 55497757 1.25 6.94% 0.08672 Almarai Bahrain co 33479206 1.5 4.18% 0.06277 Markley Holdings co 45082982 1.1 5.64% 0.06199 Almarai investment co 23592877 0.7 2.95% 0.02064 Almarai baby food co 54341783 1.25 6.79% 0.08491 800000000 100% 0.78008 (Gulf Base, 2018) Further, the financial statement of the company expresses that the total equity of the company and total debt of the company is as follows: Price Debt 10,54,31,25,000 Equity 12,93,92,83,000 23,48,24,08,000 It explains that the debt level of the company is bit lower than total equity of the company. Further, the risk free rate of the market has been evaluated and it has been found that the total risk free rate is 6.08% and the market premium of the company is 6%. At the same time the best of the company is 0.67 (Masum, 2014). The tax rate of the company is 36% and the interest rate on debt of the company is 8%. It explains that the cost of equity of the company is 6.03% and the cost of debt of the company is 5.12%. Calculations are as follows: Calculation of cost of debt Outstanding debt 10,54,31,25,000 interest rate 8% Tax rate 0.36 Kd 5.12% Calculation of cost of equity (CAPM) RF 6.08% RM 6.00% Beta 0.67 Required rate of return 6.03% Further, the total cost of capital of the company has been evaluated on the basis of cost of debt and cost of equity of the company and it has been found that the total cost of capital of the company is 5.62% which explains that the company should invest in those projects which would offer it more than 5.62% of internal rate of return. Calculation of WACC Price Cost Weight WACC Debt 10,54,31,25,000 5.12% 0.44898 0.02299 Equity 12,93,92,83,000 6.03% 0.55102 0.03321 23,48,24,08,000 Kd 5.62% (DEEPTEE and ROSHAN, 2009) Measuring investment returns: The typical project of the company has been evaluated for further study and it has been found that the main typical project of every subsidiary company of Almarai limited is different. Through the analysis on every subsidiary company, it has been found that all the companies are working on long term as well as sort term typical project. Further, the annual report of the company explains that the main typical project of the company is Davidson creek hub project. It is a short term project of the company and the company is working on this project from last 9 months. This project is related to minerals and it expresses that this project has helped the company to enhance the stock price as well as the financial performance of the company has also been enhanced. The cash flow patterns of the company have also been changed due to its new project, Davidson Creek Hub Project (Annual Report, 2018). The current book value of the investment of the company is SAR 9,480,000. It depicts that the short term investment position of the company has been enhanced from last years in current year. It explains that the company is focusing on investment in the new projects and the stocks to enhance the financial position and the performance of the company. The future trends of the investment and the current projects of the company explain about the great performance of the company which is way better than the past trends of the company. Further, it has been investigated that the position of the company in terms of investment and the return from the investment is higher (Davies and Crawford, 2011). Through the study on the return on investment of the company from last 3 years, it has been found that the return on investment of the company in current year is 0.45% which is quite higher than the position and the performance of 2016 and 2015. Investment 94,80,000 46,80,000 34,38,000 Net profit 2,11,11,44,000 2,01,50,91,000 1,91,56,91,000 Return on investment 0.45% 0.23% 0.18% It explains that the current project of the company has helped the comapny to enhance the net profit of the company and that is why the return of the company has also been enhanced. Capital structure choices: For further study, the funds of the company have been analyzed through which the funds have been raised. Through the study, it has been found that the company has used the short term debt, long term debt, retained earnings, equity and various other ways to raise the funds of the company (Breuer, Rieger and Soypak, 2014). Following are the ways of the company and the accounting figure of each fund of the company: 2017 2016 2015 2014 2013 Short-term debt 2258988000 1484416000 2039057000 1821342000 1682970000 Taxes payable 272906000 Other current liabilities 3239215000 3308904000 2767579000 2221592000 2037493000 Total current liabilities 5771109000 4793320000 4806636000 4042934000 3720463000 Non-current liabilities Long-term debt 10543125000 10134730000 9343435000 7737026000 8288900000 Deferred taxes liabilities 48060000 56492000 67123000 84394000 119985000 Pensions and other benefits 540143000 472186000 408073000 340045000 Minority interest 396867000 421250000 559783000 744080000 621718000 Other long-term liabilities 652315000 41212000 63427000 45556000 46389000 Total non-current liabilities 11640367000 11193827000 10505954000 9019129000 9417037000 Total liabilities 17411476000 15987147000 15312590000 13062063000 13137500000 Stockholders' equity Retained earnings 1998246000 2796393000 3659639000 2569564000 1714303000 Treasury stock -453156000 -378994000 -330699000 -146386000 -146386000 Accumulated other comprehensive income 12939283000 10618194000 8729505000 8463674000 8574553000 Total stockholders' equity 14484373000 13035593000 12058445000 10886852000 10142470000 Total liabilities and stockholders' equity 31895849000 29022740000 27371035000 23948915000 23279970000 (Morningstar, 2018) Through the analysis, it has been found that the debt and equity which has been enhanced by the company in terms of raising the funds are as follows: Price Debt 10,54,31,25,000 Equity 12,93,92,83,000 Total funds 23,48,24,08,000 (Morningstar, 2018) It explains that the total quantity of debt has been enhanced and it explains that the debt amount has been enhanced by the company to reduce the level of the cost. In terms of quantity, the debt amount has been enhanced by the company to manage the cost and in terms of quality; the debt amount would lower the level of ownership in the company. Further, it explains that the debt amount is used by the companies to manage the risk and return level and it also assists the company to manage the lower level of cost of capital of the company (Correria, 2013). The below calculations express that the cost of debt of the company is lower than the cost of equity and thus the debt amount would reduce the level of the cost of capital of the company : Calculation of WACC Price Cost Weight WACC Debt 10,54,31,25,000 5.12% 0.44898 0.02299 Equity 12,93,92,83,000 6.03% 0.55102 0.03321 23,48,24,08,000 Kd 5.62% Further, it has been found that the debt amount has some cons as well. The debt amount enhances the borrowings of the company and it directly burdens on the balance sheet of the company (Breuer, Rieger and Soypak, 2014). Further, the debt amount increases the risk of the company as it is required for the company to pay the debt amount to the debt holders after a period of time. In addition, it has been found that the level of debt has been enhanced by the company lot in current year in comparison with the past 2 years. Further, it has been found that the current debt ratio of the company is 54.59% which explains about the company that current debt amount of the company is moderate it is not too much nor it is too lower (Bradford, Chen and Zhu, 2013). The following table explains about the debt amount of the company: Total liabilities 17411476000 15987147000 15312590000 Total assets 31895849000 29022740000 27371035000 Debt ratio 54.59% 55.08% 55.94% (Brealey, Myers and Marcus, 2007) Optimal capital structure: Further, the optimal level of the capital structure of the company has been evaluated and the current debt financing of the company is 44% debt and the 55.10% of equity. This debt amount includes only long term debt of the company which has maturity of 5years. Further, the entire debt is floating as long term debt. Following are few of the factors which have been considered by the company in managing the performance of the company: Price Weight Debt 10,54,31,25,000 0.44898 Equity 12,93,92,83,000 0.55102 23,48,24,08,000 It explains that the debt of the company is quite lower than the cost of equity of the company (Bodie, 2013). For the optimal capital structure of the company, following calculations have been done: Debt Equity Cost of debt Cost of equity Cost of capital 0% 100% 5.12% 6.03% 6.03% 10% 90% 5.12% 6.03% 5.94% 20% 80% 5.12% 6.03% 5.85% 30% 70% 5.12% 6.03% 5.75% 40% 60% 5.12% 6.03% 5.66% 50% 50% 5.12% 6.03% 5.57% 60% 40% 5.12% 6.03% 5.48% 70% 30% 5.12% 6.03% 5.39% 80% 20% 5.12% 6.03% 5.30% 90% 10% 5.12% 6.03% 5.21% 100% 0% 5.12% 6.03% 5.12% (Barman, 2008) It explains that the cost of capital would be lower when the entire funds are raised by the company through debt, but in that case the risk of the company would be higher. Optimal capital structure must be the point where the risk and the cost, both of the company would be lower so the optimal capitals structure of the company should be 40% of debt and 60% of equity of the company (Baker and Weigand, 2015). Further, it has been evaluated that the current debt ratio of the company is 44% and 55%. It explains that the company would reduce the level of the debt to manage the optimal capitals structure. The optimal capitals structure of the company has been evaluated in context with the sector optimal capitals structure and market capitals structure and it has been evaluated that the current debt structure of the company is according to the sector ratio but the decrement in the debt ratio would assist the company to manage the risk and cost both of the company (Schlichting, 2013). The agro industry of Saudi Arabia explains that the debt structure of the company has been enhanced in 2017 from last year to manage the debt structure of the company and reduce the cost of the company. Mechanics of moving to the optimal: From the above study, it has been found that the current debt ratio of the company is 44% and 55%. And according to the optimal capital structure equation and study, the debt ratio of the company must be the point where the risk and the cost, both of the company would be lower so the optimal capitals structure of the company should be 40% of debt and 60% of equity of the company It explains that the company must reduce the level of the debt to manage the optimal capitals structure (Phillips and Stawarski, 2016). The current scenario of the company explains that the debt level of the company must be altered by the company with time. The sudden changes into the debt structure of the company would affect on the stock price and financial performance of the company. Further, it explains that the company should buy back retiring the debt to reduce the level of the debt in the company (Palicka, 2011). It would help the company to manage the optimal capital structure as well as the risk and cost factor of the company would also be better. Further, it has also been found that the current amount has been invested by the company in projects. So, it would be difficult for the company to administer the financial position and reduce the debt level of the company (Madhura, 2014). So, it is recommended to the company to enhance the funds through equity when the new funds are invested into the new project. Dividend policy: The dividend policy of the company has been evaluated and it has been found that the company is paying a good amount of dividend to its stockholders from last 4 years. It explains that the dividend amount of the company has been enhanced in 2017 from last years. Dividend paid -717905000 -687721000 -598542000 -598275000 Further, it has been found that the company not only offers the dividend to the stockholders, it also returns the cash to the stockholders through buy back the shares. Form last 4 years the buyback report of the company is as follows: Common stock repurchased -75533000 -75414000 -260530000 Further, the dividend yield of the company has been evaluated to determine the debt level of the company and it has been found that the dividend yield of the company is 3.98% which explains that the dividend of the company is modest (Krantz, 2016). Dividend yield Annual dividend / current stock price 0.039813 Annual dividend 2.13 Current stock price 53.5 (Kurth, 2013) Further, for evaluating the performance of the company, it has been found that the various stocks have been bought back by the company. It has been found that the company has paid the following cash amount to its stockholders in last 4 years: Year FCFE Dividend + Stock Buybacks 2014 458314000 598275000 2015 306984000 859072000 2016 -769690000 763135000 2017 1099507000 793438000 Further, through the above analysis it has been found that this company is paying a great amount of cash to its stockholders. The evaluation on the market and the literature explains that the cash return to the stockholders is not good for the financial performance of the company (Kinsky, 2011). If the company has a great amount of cash than this cash amount must not be paid back by the company to its stockholders rather than the company must invest this amount into new projects so that the financial and market performance and position of the company could be better. A framework for analyzing dividends: Further, the study has been done to manage a framework for the company to evaluate and analyze the dividend. Firstly, it has been analyzed that the following amount has been returned by the company to the stockholders in last few years: Year FCFE Dividend + Stock Buybacks 2014 458314000 598275000 2015 306984000 859072000 2016 -769690000 763135000 2017 1099507000 793438000 According to the study and the evaluation on total cash which has been paid by the company to the stockholders, it is recommended to the company to reduce the level of cash payment and must invest this amount to the new projects and proposal (Elton, Gruber, Brown and Goetzmann, 2009). The company has a great amount of cash currently so this cash amount must not be paid back by the company to its stockholders rather than the company must invest this amount into new projects so that the financial and market performance and position of the company could be better. The comparative study has been done on the stock by back and dividend amount of the company with its competitive company and it has been evaluated that the competitive company and the industry explains that the no company is currently buying back the shares. All the companies are just giving the dividend amount to the company in terms of cash. Valuation: Lastly, the valuation study has been done on the company and it has been found that the net cash flow from operating activities of the company is continuously increasing. The following table explains that the current increment trend in the operating activities of the company is 5.02% (Baker and Nofsinger, 2010). On the other hand the financial analyst report and the industry trend explain that the operating income of the company would definitely increase in near future due to the new operations and old loyal customers of the company. 2017 2016 2015 2014 Net cash provided by operating activities 4614147000 4393591000 4931941000 3198763000 Trend 5.02% -10.92% 54.18% (Jadwa, 2018) Further, it has been found that the current growth rate of the company in the industry is quite better. Still, it would take around 10 years for the company to be leader in the market and to set the industry trend. Through, the annual report of the company explains that the growth rate of the company is 5.79% which explains about better position of the company. Still, there is a lot time to go for the company to become a leader in the market and manage the performance of the company (Ackert and Deaves, 2009). Lastly, the equity worth of the company has been evaluated and it has been found that the intrinsic value of the company is 50 whereas the current stock price of the company is 53.3. It explains that the stock price of the company is overvalued and the stock of the company must be sold. Dividend Discount Model Dividend expected 2.50 Growth rate 3.00% Discount rate 8.00% Intrinsic Value 50.00 Share Price 53.30 (Infront analytics) Overvalued References: Ackert, L. and Deaves, R. 2009. Behavioral Finance: Psychology, Decision-Making, and Markets. Cengage Learning. Annual Report. 2018. Almarai Limited. Viewed Jan 31, 2018, https://www.almarai.com/wp-content/uploads/2016/12/Annual-Report-2016-EN-new.pdf?x11237 Baker, H.K. and Nofsinger, J.R. 2010. Behavioral Finance: Investors, Corporations, and Markets. John Wiley Sons. Baker, H.K. and Weigand, R., 2015. Corporate dividend policy revisited.Managerial Finance,41(2), pp.126-144. Barman, G.P., 2008. An evaluation of how dividend policies impact on the share value of selected companies. Bloomberg. 2018. Almarai Limited. Viewed Jan 31, 2018, https://www.bloomberg.com/quote/ALMARAI:AB Bodie, Z., 2013.Investments. McGraw-Hill. Bradford, W., Chen, C. and Zhu, S., 2013. Cash dividend policy, corporate pyramids, and ownership structure: Evidence from China.International Review of Economics Finance,27, pp.445-464. Brealey, R., Myers, S.C. and Marcus, A.J., 2007.FundamentalsofCorporate Finance. Mc Graw Hill, New York. Breuer, W., Rieger, M.O. and Soypak, K.C., 2014. The behavioral foundations of corporate dividend policy a cross-country analysis.Journal of Banking Finance,42, pp.247-265. CORREIA, C. 2013. FinancialManagement.7thEdition. Cape Town: Juta andCompany Ltd.2. Davies, T. and Crawford, I., 2011.Business accounting and finance. Pearson. DEEPTEE, P. and ROSHAN, B. 2009. Signaling Power of Dividends on firms futureProfits A Literature Review. Evergreen Energy- Interdisciplinary Journal, pp.1-9. Elton, E.J., Gruber, M.J., Brown, S.J., and Goetzmann, W.N. 2009. Modern Portfolio Theory and Investment Analysis. John Wiley Sons. Gulf Base. 2018. Almarai Limited. Viewed Jan 31, 2018, https://www.gulfbase.com/subsidiaries-almarai-co-almarai-486-5-39 Hillier, D., Grinblatt, M. and Titman, S., 2011.Financial markets and corporate strategy. McGraw Hill. Infront Analytics. 2018. Almarai Limited. Viewed Jan 31, 2018, https://www.infrontanalytics.com/fe-en/30073GS/Almarai-Co-Ltd-/Beta Investors. 2018. Almarai Limited. Viewed Jan 31, 2018, https://www.almarai.com/en/investors Jadwa. 2018. Almarai Limited. Viewed Jan 31, 2018, https://www.jadwa.com/en/download/saudi-economy-2017/research-13-1-1-1-1 Kinsky, R. 2011. Charting Made Simple: A Beginner's Guide to Technical Analysis. John Wiley Sons. Krantz, M. 2016. Fundamental Analysis for Dummies. John Wiley Sons. Kurth, S. 2013. Critical Review about Implications of the Efficient Market Hypothesis. GRIN Verlag. Madura, J. 2014. Financial Markets and Institutions. Cengage Learning. Masum, A.A., 2014. Dividend policy and its impact on stock priceA study on commercial banks listed in Dhaka stock exchange. Morningstar. 2018. Almarai Limited. Viewed Jan 31, 2018, https://financials.morningstar.com/balance-sheet/bs.html?t=2280region=sauculture=en-US Naser, K., Nuseibeh, R. and Rashed, W., 2013. Managers' perception of dividend policy: Evidence from companies listed on Abu Dhabi Securities Exchange.Issues in Business Management and Economics,1(1), pp.001-012. Palicka, V.J. 2011. Fusion Analysis: Merging Fundamental and Technical Analysis for Risk-Adjusted Excess Returns. McGraw Hill Professional. Phillips, P.P. and Stawarski, C.A. 2016. Data Collection: Planning for and Collecting All Types of Data. John Wiley Sons. Schlichting, T. 2013. Fundamental Analysis, Behavioral Finance and Technical Analysis on the Stock Market. GRIN Verlag. Shao, L., Kwok, C.C. and Guedhami, O., 2013. DIVIDEND POLICY: BALANCING SHAREHOLDERS'AND CREDITORS'INTERESTS.Journal of Financial Research,36(1), pp.43-66. Thanatawee, Y., 2013. Ownership structure and dividend policy: Evidence from Thailand. Travlos, N.G., Trigeorgis, L. and Vafeas, N., 2015. Shareholder wealth effects of dividend policy changes in an emerging stock market: The case of Cyprus. Tucker, J.W., 2011. Selection bias and econometric remedies in accounting and finance research. Zhang, D., 2012. Managerial dividend-paying incentives. Erasmus University Rotterdam.

Favorite Painter free essay sample

Write a short post discussing your favorite painter born before 1900. Explain in detail what it is exactly that you like about their work. Use the knowledge you have learned about the Elements of Art and Principles of Design to discuss what you like about their work. , about the medium they use or the content they explore? minimum 200 words My favorite Painter born before 1900 is Vincent Van Gogh. I love the paintings done by Van Gogh because they are very expressive of what was going on around him and his personal experiences. He uses lines freehandedly in his paintings which makes them all very unique compared to many other painters. Even though his use of lines seemed to be chaotic, there was always strong consistency. A lot of Pat Steirs work was influenced by Vincent Van Gogh. Pat Steir widely utilized Van Goghs style of painting using lines, and tapping into her emotions much like Van Gogh did whenever he painted. We will write a custom essay sample on Favorite Painter or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The feeling of painting in this manner was compared to being on a merry-go-round by Steir. Van Goghs paintings exhibited a strong cry of anguish, this is due to the way he utilizes his lines. This is especially evident in his painting of Starry Night. There is one artwork in particular that draws my attention when I think of Vincent Van Gogh. This particular work of art is The Sower, which was produced on the medium of oil on canvas. It took Van Gogh a great deal of time to complete this piece. He faced numerous difficulties, the biggest of which was finding the right color to set the painting off. He adjusted this artwork until he got the focal point where he wanted it. He did this by using a variety of different lines, straight, wide, narrow and curved. In the final product of The Sower, Van Gogh eliminated the house and tree which gave allowed the viewer to focus more on the sower himself. All the different lines used gives the artwork a sense of direction and flow. Van Goghs works were even considered to be autographic because of his style of painting.

Toyota Production System free essay sample

. Vilas-Boas Afonso Taira, n? 61793, GEB1 Diogo Bustorff-Silva, n? 54746, GEB1 Manuel Trincao de Oliveira, n? 54730, GEB1 Pedro Neves, n? 38415, GEB1 Afonso Taira, n? 61793, GEB1 Diogo Bustorff-Silva, n? 54746, GEB1 Manuel Trincao de Oliveira, n? 54730, GEB1 Pedro Neves, n? 38415, GEB1 Index * Introduction The Automotive Industry History The History of Toyota * Case Study Question 1 Question 2 Question 3 * Conclusion What does the TPS mean, both industrially and culturally Mass amp; Craft Production The Toyota System Support Centre Automotive Industry History The  history of the  automobile  begins when European engineers began experimenting with motor powered vehicles in the late 1700s. By the late 1800’s steam, combustion, and electrical motors had been experimented. The combustion engine continually beat out the competition, and the early automobile pioneers built reliable combustion engines. Automotive production on a commercial scale started in Europe in 1890 but it was the USA who were the global leaders in total automobile production for many years. In 1929, before the Great Depression, the world had around 32 million automobiles in use (over 90% of them were produced by the US automobile industry). We will write a custom essay sample on Toyota Production System or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page After World War II the USA produced about 75% of worlds automobile production. But in 1980 the U. S. was overtaken by Japan and became the world leader again in 1994. In 2006, Japan narrowly passed the US in production and continued leading until 2009, when China claimed the first place with 13. 8 million units. In 2011 China produced 18. 4 million units which is more than twice the number of automobiles made by the US (second place with 8. million units) which is followed by Japan (third place with 8. 4 million units). History of Toyota Toyota’s history started in 1897 when Sakiichi Toyoda entered the textile machinery business. In 1902 he founded Toyota, the Toyoda Group. The Toyoda Model G Automatic Loom was invented in 1924,  and in 1929 the patent for this machine was sold in order to generate the capital for the automobile development to start. The Automobile Department was started in 1933 as a division of Toyoda Automatic Loom Works (TALW) devoted to the production o f automobiles under the direction of the founders son,  Kiichiro Toyoda. In 1936, Toyodas first passenger car, the Model AA, was completed and the price was 400 yen cheaper than Ford or GM cars. In September 1936, the company presented its new logo and the name Toyota was chosen. The newly formed word was trademarked and the company was registered in August 1937 as the Toyota Motor Company. By the early 1960s, the US had begun placing stiff import tariffs on imported vehicles. In response Toyota,  Nissan Motor Co. and  Honda Motor Co. began building plants in the US in the 1980s. Due to the 1973 oil crisis, consumers in the US market began turning to small cars with better fuel economy. Toyota received its first Japanese Quality Control Award at the start of the 1980s. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with  General Motors  called the New United Motor Manufacturing, Inc,  (NUMMI), operating an automobile-manufacturing plant in Fremont, California. In the 1990s, Toyota began to diversify from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup. Toyota also began production of the worlds best-selling hybrid car, the  Prius, in 1997. Toyota was also present in Europe and so, the corporation decided to set up Toyota Motor Europe Marketing and Engineering,  TMME, to help market vehicles in the continent. In 1999, the company decided to list itself on the  New York  and  London Stock Exchanges. In 2002, Toyota managed to enter a  Formula One  works team and established joint ventures with French motoring companies  Citroen  and  Peugeot  a year after Toyota started producing cars in France. In 2005 Toyota ranked eighth on Forbes  list of the worlds leading companies  but fell to 55 in 2011. The company was number one in global automobile sales for the first quarter of 2008. Lately the company has found success with its smaller models (like the Corolla and the Yaris) as gasoline prices have increased rapidly in the last few years due to the oil crisis. Toyota  reached 200 000 000 vehicles as of July 2012 (after 77 years of production) but in October 2012, Toyota announced a recall of 7. 43 million vehicles worldwide to fix malfunction, showing Toyota’s pursue for perfection. QUESTION 1 The TPS was one of the most efficient manufacturing systems in the world. Describe the various elements of the TPS. What was Ohno’s contribution to the development and implementation of the system? Toyota Production System – TPS The  Toyota Production System  (TPS) is an integrated  socio-technical system that includes Toyota’s management philosophy and practices. Also known as â€Å"Lean Manufacturing† or a Just-in-Time system, the TPS has become well known and frequently studied around the world. The TPS, which s a production control system, was based on many years of continuous improvements with the objective of eliminating all â€Å"waste† and defects of the production line â€Å"making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible  with high quality and low cost. The Toyota Production System (TPS) was established based on four concepts: The f irst is called Just-in-Time (JIT), the second is called Kaban (the Japanese word for Signboard), the third is called Kaizen and the fourth is Jidoka (which can be roughly translated as automation with a human touch). Based on the philosophies of JIT, Kanban, Kaizen and Jidoka, the TPS can efficiently and quickly produce vehicles of confirmed quality, one at a time, that fully satisfy customer requirements. Concepts of TPS Just-in-Time Just-in-time  (JIT) is a production strategy that strives to increase a business  return on investment  by reducing in-process  inventory  and associated  carrying costs. JIT is considered the foundation of Toyota Production System and was created by Taiichi Ohno who was inspired by the functioning of the US supermarkets. The main principle of JIT is to produce â€Å"only the necessary products at the necessary time and in the necessary quantities† and the main objective of JIT is to eliminate waste of all kinds by producing or supplying materials only when they are needed and not earlier. The adoption of the JIT strategy allowed Toyota to cut out the costs related with inventory and stores. JIT’s objective was to make the production process smoother by avoiding or eliminating unnatural peaks and gullies in production which could later create inventory problems. One of Ohno’s beliefs was that a smooth and continuous process would make all the production and quality problems float to the surface and these could then be corrected. Ohno’s motto was â€Å"speed without continuity is meaningless†, this means that a production line too fast or too slow will create inventory problems later on. JIT was based on reverse reasoning and the working of the production line started at the point of customer demand. This implied that when there was a demand for a certain model of car, its assembly began at the factory. When the assembly was ready to begin, the needed parts were delivered by the preceding process in the production line and when the parts had to be delivered to assembly, the supplier supplied the raw materials for their manufacture. In brief, the demand pulled the factory’s workflow. This concept is based on the Pull System of manufacturing which is the opposite of the regularly used Push System (where each process manufactured components to its highest potential and pushed them down the line creating excess inventory and blocking of the production line). In an ideal scenario, if JIT was achieved throughout the organization, inventory would be completely eliminated and the factory would have no need for stores or warehouses, thereby eliminating their costs. However, for factories like Toyota, which required thousands of parts to manufacture one car, achieving JIT in all processes automatically would be very difficult. The high complexity of the system would make it difficult for the previous process to correctly anticipate the exact quantities demanded by the subsequent processes. To surpass this difficulty the Kanban System was developed. Kanban Kanban is the pillar of JIT and helped Toyota achieve a high level of outsourcing. Kanban (meaning Signboard in Japanese) is a tool to effectively control production quantities that looked at the production flow contrarily. Workers of a process in the need of components wrote the details about the kind of units and the quantity which they needed on a card called Kanban. Another worker then took the Kanban card to the antecedent process and withdrew the amount required from it. This system was made up of a fixed number of containers, each holding a specific fixed number of parts. Every container had a set of kanbans attached to it which comprehended two types of kanbans: a withdrawal kanban and a production kanban. The withdrawal kanban detailed the kind and quantity of product that the subsequent process should withdraw from the previous process and the production kanban specified the same information about the parts that must be produced by the previous process. And so, all the processes in the production line were connected to each other through kanbans. The total number of containers and the number of parts each container should hold were calculated through Ohno’s formula. This formula showed the maximum amount of inventory that could be present in the system to â€Å"hold the process together†. By the early 200’s, the Kanban process had evolved into a sophisticated inventory management tool that ensured production in the required quantities at the exact right time in all manufacturing processes within the factory. Kaizen Kaizen is another important part of TPS. It meant ‘Continuous Improvement’ and required all employees to participate in eliminating all activities that were classified as ‘waste’. Kaizen was a continuous process, not periodic like in other companies and therefore, all activities that would improve productivity and safety fell under its scope. In this process all supervisors and team leaders had to be on the constant lookout for problems and resolve as many as possible on the spot. But they also looked for ways to improve productivity even when things were running smoothly. Kaizen involved a great deal of observation of workers and their work processes but the changes were usually small and incremental. Ohno believed that observation was the best way to spot problems and the constant observation would reveal problems that would otherwise escape one’s notice. He also emphasized the importance of people being in touch with ‘gemba’ or the place where the action was (in our case the factory). He would advise and urge managers to go to factories every day and come back with at least one idea for Kaizen. Ohno insisted that people asked ‘Why’ five times when confronted with any problem in order to reach the essence of the problem so it would not occur again. The focus of Kaizen was not only the identification of a problem and the development of a solution but the understanding of the problem and all of its alternatives thoroughly. Another important element of Kaizen was the Poka-Yoke or error proofing. This included the creation of processes that moved smoothly from step to step, without giving room for errors to appear in. This tool was also used to control the assembly line, sometimes by using cameras to find more efficient solutions or spotting minor wastes. Due to the extensive nature of Kaizen activities, support and commitment from the management was indispensable for a successful implementation and performance. Some analysts claimed that Toyota’s employees were trained to look for possible enhancements even in efficient processes, and it surprised many to see the improvements that were possible even in the best of systems. Some analysts even felt that Kaizen was the main reason why Toyota achieved its global success. Jidoka The human element played an important role in TPS and Toyota made an effort to promote their employee’s flexibility, teamwork and empowerment. This could be seen as most of Toyota’s worker were cross trained and could be shifted between different production lines. This flexibility of the production process, known as â€Å"Shijinka†, was a huge advantage because the company could adapt to the demand and had no need to recruit new workers when a demand for a certain product increased. Jidoka was the manifestation of Toyota’s commitment to empowerment of their workers. Jidoka was a philosophy that motivated and allowed workers to stop the equipment or operations whenever an unusual or defective situation was found in the line. The workers were also given the responsibility of improving their workstations as any employee at any level of the hierarchy had the right and almost obligation to make improvements in processes if he would see fit. This process was called â€Å"visible control† and all the workers took positive steps to improve or eliminate any waste that they identified. The priority order of the parts were also transmitted to the workers allowing each shop to conduct production activities without orders from the control department. This compensated the monotony of mass production and helped improve the production rates and the morale in the factories. The thought behind Jidoka was it was men who operated the conveyor and not the other way around and the confirmation of this was the trust that Toyota placed on their employees. Whenever a worker detected a defect or abnormality in the production line or even if he found himself unable to keep pace with the line, he could stop the operation simply by pulling a cord called the ‘andon’ cord. When pulled, the ‘andon’ cord would set off an alarm system and illuminate the color coded andon electric light board. This would alert all the workers and supervisors to the presence of a problem or defect in the line and if it was not rectified within a specific length of time, then the entire line would stop. This system helped direct attention to the problems as soon as they were discovered and that prevented a great deal of further complications. Usually the problem could be corrected immediately by directing attention to it and to the worker that had sounded the alert. Identifying the problem as soon as it occurred prevented the line from producing a complete lot of defective goods therefore this process helped Toyota achieve high levels of quality. This also showed the faith in Toyota’s workers ability as thinkers. To facilitate the spotting of deviations or defects, Ohno called for the work to be as standardized as possible with specific work instructions being given for every job. Stopping a line hundreds of time in one shift was a common practice at Toyota’s factories. Taiichi Ohno 1912 – Taiichi Ohno was born in Manchuria, China 932 – Joined the Toyoda Automatic Loom Works (TALW) 1943 – Moved to the Automotive Business as an Assembly Manager Late 1940’s – Started experimenting with different ways of setting up equipment to produce items needed in a timely manner Early 1950’s – Expanded on the ideas of Kiichiro Toyoda on JIT inventory systems 1956 – Visited the USA to study t he manufacturing processes used by American Companies 1975 – Was made Vice President of Toyota 1978 – Retired but remained associated with Toyota until 1982 1990 – Died at Toyoda City Ohno’s Contribuition to TPS Although the TPS was not Ohno’s work alone, he was the prime mover of its creation and is considered to be the father of TPS. Ohno streamlined and developed the TPS concepts into a formal and practical system. He was responsible for training a number of Toyota’s engineers in how to use and implement the system. Since Ohno was a great believer in the importance of people, he treasured values like respect, loyalty and lifetime employment and was accountable for developing the lifetime employment concept at Toyota which made workers more committed to the company. Ohno also initiated the practice of supervisors wearing the same uniforms as workers, creating the feeling of flat, non- hierarchical structure. He realized that the efficiency of manufacturing processes depended on the timely availability of raw materials therefore he gave a lot of importance to suppliers He also stressed the importance of observation to reveal problems that would otherwise escape one’s notice. Some analysts said that the systematic and continuous development and implementation of the TPS was due to Ohno. The evidence of Ohno’s importance and influence in Toyota could be seen when, in later days, employees began to ask themselves â€Å"What would Ohno have said or what would Ohno have done† when they faced a difficult problem Toyota’s advantages by adopting TPS The Toyota Production System and its concepts are the main reason why Toyota is one of the major automobile makers in the world. All the concepts behind the TPS were a great aid for Toyota’s development making it the company it has become today. While JIT allowed Toyota to eliminate costs related with inventory, warehouses and stores, the Kanban process facilitated the movement of inventory between different processes in the production line and ensured production in the required quantities at the right time and the concepts like Kaizen and Jidoka ensured that high levels of quality were maintained. Jidoka was not only a benefit in terms of quality as it, combined with other HR tools, resulted in high morale amongst the workers, who knew they were valued at Toyota. TPS conferred a great amount of flexibility and productivity therefore enhancing capabilities at Toyota. The flexibility provided by the TPS allowed Toyota to make the best use of its resources for greater productivity and quality. QUESTION 2 The TPS gave as much importance to people as it did to technical systems. What was Toyota’s HR philosophy? How do you think it benefited the company? The Toyota Production System is very much dependent on its Human Resources. Workers and their working time are one of the most-valued resources in a Toyota production line, maybe the most precious, and for this to be improved the workers need to be not only technically evolved but mentally available. The continuous improvement and eliminating of waste are based on workers’ experience, sight, and trained perfectionism. All the improvement to be made is based on workers’ experience in the working line. This happens because the worker is in the best position to spot errors, helping the development and improving techniques, and makes good contact with his supervisor. Due to their position in the working line, workers are the only ones with true sight of what is happening in their work place, also tracked by others, by the Kaizen observation. Following up the â€Å"Shijinka† ideal, it was possible for workers in a Mass Production factory to change between production lines, shifts, team positions, and the choice was given to choose to the employees according to their characteristics workers were the decision makers in this task. The â€Å"soft† aspect of TPS, also known as the respect for the humans/workers, cared for by the Human Resources, was a ‘new’ trend when it was implemented; until the day Taiichi Ohno took the lead of Toyota no one had ever worried about worker satisfaction and development before. The TPS showed concerns for work safety and the improvement of workers’ responsibility and authority, making them more productive and helpful to the TPS. Productivity was a constant goal, but means to an end were important, and sacrificing safety for an increase in productivity was not embraced. Jidoka’ a rope used to stop a production line; a symbolism to a process with the intention of improvement, and learning, without being disregarded by other colleagues and also improving the production rates and the morale of all workers, is part of the integral Human Resources ideal of valuing the worker. â€Å"Man operates the conveyor, not the other way around†. â€Å"Ji doka†, as well as helping Toyota achieve high quality, proves that a worker may as well be a â€Å"thinker†, and not just an input as the general industry considered them until Ohno proved them wrong. Because training and development of human resources were elemental in the Toyota Production System, the company invested substantially in developing the full potential of workers. Apart from the company’s aim for each new recruit, the company only allowed him to start his functions when he felt completely comfortable and confident, not one day earlier. In accordance to their Human Resource ideals, relations between Toyota and its suppliers were also carefully driven. As mentioned before, Toyota had a technical need for products and raw materials provided by suppliers. The understanding of urgency by the suppliers could be attempted by force and imposition, as was normal in the Western competitors, or could be achieved by a close trait, with strong cooperation and mutual help. Lastly, loyalty, and an expectation of a lifetime employment, gave the workers a sense of commitment to the company, and legitimate interest to help improving Toyota and themselves as workers in the Toyota Motor Company. Toyota’s mentality started on Ohno himself and went down even to the most standard technician. Question 3 What were the main advantages and challenges related to the TPS? What were the primary differences between Japanese companies and their western counterparts in terms of industrial culture? Like any other production system, the TPS is not immaculated as a whole. In terms of facts and figures, we may believe that such as system, that is able to combine both mass and craft production, is therefore the Pandora of production systems. In fact, we come across a number of advantages – some are just ‘better than the competitors’ factors, some we can call pioneer values in the industry. Speed, the most eye-catching characteristic in this industry, is one where Toyota definitely proved to be a few steps ahead of its major competitors, since the 5 days needed to complete a car is no less then 6 times faster than their closest competitor General Motors. Another valued asset in the industry is the flexibility of the workforce and the production process, something that allows for rapid response to either production inefficiencies. Not only is the TPS an extremely agile system, it proved to be the first ever to be prepared to assemble two different models f cars in the same assembly line. Another factor that comes into play when contemplating the highly efficient nature of the TPS is one of the major values of the company: Kaizen. As explained before, Kaizen made workers look at the bigger picture, growing in them a sense of constant dissatisfaction, a sense that even when things run smoothly, there is room for improvement. This, together with the strengths mentioned befo re (speed and flexibility) are features of the TPS which allow the company to deliver a high quality product, at extremely competitive prices, the motherload of any market. Furthermore, in complete contrast to their worldwide competitors (GM, etc), their human resources policy and Jidoka value springs high morale amongst the workforce, pushing towards the two last levels of Maslow’s Hierarchy of Needs, with greater worker input. The relationship established and meticulously kept with Toyota’s suppliers further exploits the JIT methods, and boosts flexibility, to respond to almost any shock in demand, in quantity and in tendency standards. On the other hand, we have hostile relations with their workers, and suppliers kept at a distance; both representations of the industrial culture in the West – the sense of power is very much enjoyed by those in administrative positions in the West, it is part of a culture not only displayed in the industries, but in matters of everyday life. This means the hierarchical feeling and the extremely vertical display is hard to dismantle, proving to be the major difference with their counterpart in Japan. Being coherent with my opening statement, the TPS has several challenges that it must face. It is obvious that Toyota fits just right into the philosophy followed by the system, hence it seems flawless at first sight. Following attempts at its implementation in other realities, we come across that the time it requires for it to be put in practice is often the reason for several companies to have dropped it halfway: it needs years to reformulate and retrain the thinking ways of both the administrators and the workforce, hence calling for a reform in the company’s organizational culture – the case is that the company values must be altered to fit into the TPS and not the other way around. As a result, we have a reality where things first become worse before getting better; the TPS requires sustainability, since it is an ‘n’ year programme, ‘n’ being the years the company wishes to work under its matrices. Conclusion What does the TPS mean, both industrially and culturally? Mass amp; Craft Production. The Toyota System Support Centre The final stage of our case study is to find the relevance of the TPS in the worldwide industry over the years, as the world advances and evolves. The TPS is unlike any other logistics programme. The analysis we have presented shows that is not bound to analyze a production process and improve on its weaknesses; it means retraining and restructuring a whole company, from its production methods to every worker and administrator in terms of mentality. We can hereby conclude that the TPS is a whole philosophy, meaning it is no ‘1-year programme’ that lasts for life, it is an infinite year programme that requires constant implementation and therefore a committed leadership to the philosophy. Culturally, having on opposing ends the highly efficient modus operandi of the far-east Asian world and the much valued status and power feeling of the West, we have the main reason why TPS works wonders in some companies, and is a total disaster in others. It is not about the System, it is about the mentality. A company ruled in an autocratic manner, with little responsibility given to the workforce, old-fashioned leadership styles and alienisation of the employee – a reality in the Western culture – are the basic requirements for mass production. On the contrary, a highly creative and focused group, with little rule and hardly any concept of responsibility is the core of craft production – typical of artists and designers. In the middle lies the TPS, a system that combines the speed of an assembly line and the flexibility of a focus group, the peculiarity being the focus group is in fact the whole workforce, in which every employee participates in the production planning and production process. Lastly, bringing the Toyota group to the industrial world of now-a-days, we can get a sense of the impact the company and the System devised by Taiichi Ohno had had on the industry throughout the World. Toyota and its TPS have become objects of study throughout the industrial business, as seen in the ‘Additional Readings amp; References’ section of the case study. On practical terms, the TPS has become a benchmark for companies around the World, accounting for Fujitsu’s turnaround plan and Japan Post’s privatization in Japan, and various brands in the US, such as General Mills, helping these companies take a leap forward in the early years of the new millennium. Furthermore, following through with the statement that the true essence of Toyota and its success with the TPS is the mentality, we must highlight the TSSC. The TSSC (Toyota System Support Centre), headquartered in Kentucky in the 1990s, was set up with the aim of aiding companies implement the TPS. That alone shows Toyota’s open minded approach, additionally Toyota charges no fee whatsoever for its services. Toyota, with its philosophy, is not satisfied if they are the best amongst the worst; they are happy to let everyone ‘step up their game’ to increase competitiveness. Toyota production system free essay sample Toyota incorporated concepts just as supply chain management and inventory management to create high quality automobiles and gain a competitive edge in the highly competitive global automobile market. Toyota’s success and its lean manufacturing philosophy have been widely studied. The Toyota manufacturing system is centred on achieving a high level of productivity. The company has a unique approach to problem solving and it continuously trains its employees. The Toyota Production Systems is based on the lean manufacturing philosophy that seeks to minimize wastages and centres on cost reduction. The Toyota manufacturing philosophy emphasises on quality management through a process of continuous improvement. This report looks at how Toyota created its manufacturing system and the role of operation management techniques to enhance efficiency. This report examines the production processes and philosophy and Toyota to assess how the company has achieved a competitive advantage globally. The lean manufacturing philosophy pioneered by Toyota has become a benchmark for all manufacturing companies around the world. We will write a custom essay sample on Toyota production system or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The lean manufacturing philosophy includes concepts such as customer relations, product design, supplier networks and operations. The lean manufacturing practices have made Toyota achieve low cost production and allowed them to manufacture high quality cars at lowered costs. This report looks at how operations management techniques such as supply chain management and inventory management have led to efficiency and profitability at the Toyota Motor Company. 2. 0 Operations Management The study of operations management looks at the production of quality goods and service. The aim of this discipline is to create efficient and effective business operations. Operation management seeks to ensure the efficient management of resources along with the distribution of goods and services. Operation management seeks to enhance manufacturing performance and this study has proposed various techniques and a heoretical framework to achieve this goals. These techniques include quality management (TQM), just in time (JIT) or Leaning manufacturing. Other concepts in the field of operations management include six sigma and supply chain management. The competitive pressure for improved product quality has led to numerous operations paradigms emerging/ the most significant ones include Just in Time, Total Quality Management (TQM) AND Supply chain management (SCM). JIT seeks to eliminate waste and recue setup times, it also controls the material flows and focuses on effective resource utilisation. The TQM philosophy looks at developing a corporate culture that is customer focused empowers employees and seeks continuous improvement. The supply chain management integrates buyers and suppliers decision-making to improve the flow of materials in the supply chain. The JIT, TQM and SCM approaches improve the effectiveness and efficiency of the operations function (Kannan Tan, 2005). 3. 0 Toyota Production System (TPS) The TPS lead to the lean production movement that emphasises on eliminating waste from value streams. This production system is highly standardised. The production systems have buffers that are controlled through various pull signals. The lean production is very efficient and greatly improves quality that has given Toyota an edge in the global automobile markets. Toyota’s success as an automaker in the world is based on its expertise in creating a unique production system. This TPS is based on the principles of continuous improvement also known as Kaizen. The Toyota company has a highly decentralised workforce which is highly trained and takes part in the decision making process. The TPS consists of most successful Japanese production and work practices. This approach was developed by SakichiToyoda the founder of Toyota who pioneered the TPS. It was Taciichi Ohno that created the Just in Time (JIT) production systems. The JIT approach made Toyota more efficient and these techniques also incorporated total quality control, statistical process control and quality circles. The Toyota manufacturing system is characterised by a continuous flow of production that allows the company to be flexible enough to adapt to the demand conditions. The JIT ensures that only the required materials for the production are acquired at the right time. The JIT systems also include human resources in the cost and production systems . Toyota has also streamlined its production processes through implementing Total Quality Management (TQM) process to lower costs and enhance quality (Amasaka, 2002). The TPS is linked externally and to the entire production system, the main TPS practices are focused on detecting, assessing and eliminating sources of the entire production system. The sequential relationship amongst the external and internal links includes three types of interaction; the first is upstream integration which is between the external suppliers and internal suppliers within the firm. The internal integration is between the firm actors that own successive process stages as either internal suppliers and internal customers. The downward integration is between the internal suppliers that own the last process stage and firm’s external customers (Jayaram et al, 2012). Figure 1 Structural links internal and external to the organization Source Jayaram et al (2012) The problem solving framework at Toyota constantly evaluates the performance of the TPS by detecting any variance on the production process. The variance assessment includes part of product, people or personnel, procedure or method and equipment or machine. The system variation can result from product variation, poor quality or inputs, flawed design or misaligned processes (Jayaram et al, 2010). Figure 2 Toyota’s problem solving framework. Source Jayaram et al (2012) The employees can also lead to variations in the systems and performance owing to lack of proper training or motivation. Toyota has implemented a decentralised problem solving approach that empowers the works to make decisions. The principle of Kaizen is made possible with standardisation in the company. Toyota has standardised technical skills to ensure a flexible taff in the company (Jayaram et al, 2010). 4. 0 Just in Time Inventory Management The Japanese automakers have been very successful in improving their productivity and efficiency by focusing on continuous improvement. JIT has evolved from continuous improvement paradigm. The JIT creates a flexible environment in which the whole organisation is responsible for eliminating waste. Toyota Motor Company pioneer ed the just in time (JIT) production system during the mid-1970s the JIT production system is also known as the zero inventory production system. JIT manufacturing is a production philosophy that is based on three fundamental principles that include elimination of waste, continuous quality improvement, and a participative work culture. The JIT systems become more efficient and used the Kanban as an information exchange tool for different production lines. Through using the JIT the wastages in the production process are minimised and the defect prevention system enhance the quality of the products. To improve quality and automobile exports Toyota implemented Total quality controls in the company (Dahlgaard Dahlgaard-Park, 2006) . 0 Lean Manufacturing The lean production techniques have also be termed as the post Fordism system of work that is more efficient, humane and democratic. A central tenet of lean production is the concept of kaizen that is continuous improvement in the production process. The concept of lean manufacturing originates in the Toyota Motor Corporations; resulted from scarcity of resources and intense domes tic competition in automobile market in Japan. The lean philosophy incorporated the JIT production system and the Kanban method of pull production. Toyota also introduced the concept of respect for employees and team working (Hines et al, 2004). Lean manufacturing involves inventory and quality control, industrial relations, labour management and supply chain management. Studies show that lean manufacturing reduces human effort by 50% along with the manufacturing space, tool inventory and improved financial performance. This manufacturing system also includes lean logistics that is the ability to administer systems to control the movement of materials, work in process and finished inventories at the lowest cost. To ensure long term competitiveness a manufacturing firm has to develop capabilities of JIT production and delivery. The suppliers have to be able to respond to the increasing needs of the customers. The lean production system requires rapid flows of information along the value chain. Toyota uses the Kanban system to achieve this along with computerised information that can be exchanged with the suppliers to reduce lead times (Wu, 2003)6. 0 Supply Chain Management The supply chain management (SCM) is a key strategic factor for enhancing organisational effectiveness and achieving organisational goals. With the globalisation of the markets and increase in outsourcing companies use supply chain and logistics techniques to manage their operations. Toyota’s supply chain management approach focuses mainly on resources that were of critical importance. Toyota created a Keiretsu structure comprising of the dependent suppliers that worked in close proximity to the Toyota factories. The company outsourced aspects that were not critical to the ability of maximising the shareholder value. Toyota was able to create such a supply chain because the supplier was relatively dependent on them in highly contested markets. Toyota created an assembly based systems that was demand pull and JIT based, it had dominant power relationships with the suppliers. This allowed the company to be innovative and create a customised supply chain. Toyota also implements effective controls over quality, cost and innovation. The supply chain at Toyota can be described as entrepreneurial (Cox 1999).