PU E
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OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
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2.1: GOODS AND SERVICE DESIGN
2.1.1 Collier and Evans (2021:107) note that companies use some type of
structured process to design and improve goods and services. Exhibit 5.1
provides a generic summary of these steps. For Toyota car assembly, these
steps can be understood as follows:
Structured Process of Designing and Improving Goods and Services: The Case
of Toyota Car Assembly
According to Collier and Evans (2021, p. 107), organizations typically use a structured,
stepwise process to design and enhance their goods and services. This process
integrates strategic thinking with customer insights and operational capabilities to
ensure offerings are aligned with both market demand and organizational resources.
For Toyota, one of the global leaders in automotive manufacturing, this process
reflects a sophisticated blend of strategy, customer-centricity, innovation, and process
excellence. Exhibit 5.1 from Collier and Evans (2021) provides a generic roadmap of
this design process, which can be unpacked in the context of Toyota's car assembly
practices.
Step 1: Define Strategic Mission and Vision
The first step in designing a product begins with aligning the design process with the
organisation’s strategic mission and vision. For Toyota, this entails adhering to a
long-term philosophy that focuses not only on profitability but also on quality,
sustainability, and customer satisfaction (Liker, 2004). Toyota’s mission—rooted in the
Toyota Way—emphasises continuous improvement (kaizen), respect for people, and
a relentless pursuit of value creation.
Historically, Toyota has prioritised manufacturing excellence through practices like
Just-in-Time (JIT) production, lean operations, and total quality management. In recent
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years, the company has increasingly integrated sustainability and digital
transformation into its strategic mission, embracing hybrid and electric technologies,
smart manufacturing, and decarbonisation efforts (Toyota Motor Corporation, 2023).
Strategic decisions regarding what types of vehicles to produce, in which regions, and
with what features, are therefore shaped by a mission that balances market
competitiveness with social responsibility.
Step 2: Conduct Strategic Analysis and Determine Competitive Priorities
The second step involves conducting a comprehensive analysis of the external
environment, customers, and competitors to determine the competitive priorities
that should guide product and process design. This includes assessing
macroeconomic trends, environmental pressures, technological advancements, and
consumer behaviour.
Toyota gathers customer data using a wide range of tools such as customer
satisfaction surveys, ethnographic research, social media analysis, and dealership
feedback. Through this, it identifies key customer requirements such as fuel
efficiency, safety, affordability, technological integration (e.g., infotainment,
autonomous features), and environmental friendliness.
Competitive priorities—such as quality, cost, flexibility, time, and innovation—
emerge from this strategic analysis. Toyota’s production systems are then tailored to
support these priorities. For instance, by employing flexible manufacturing systems
(FMS) and cross-trained workers, Toyota enhances design and demand flexibility—
allowing it to respond rapidly to market shifts while maintaining high levels of quality
and operational efficiency (Slack et al., 2022).
Step 3: Customer Benefit Package (CBP) Design and Configuration
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