Free Essay Example. MRP and MPS Processes

Toyota’s MRP system organizes the manufacturing and logistics for the company, including interaction with customers and suppliers. It aims at designing out the overburden and inconsistency and eliminating waste in the production system. The raw materials needed for their products include aluminum, steel, glass, copper, rubber, and special fibers. Toyota outsources its raw materials from the USA among other countries (Shih, 2018). When doing business with the US, foreign companies should understand that they are subjected to parallel systems of law that vary from state to state (TMF Group, 2018).

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Some of the acceptable ethical standards in purchasing supplies include transparency, confidentiality, fairness within the commercial and legal constraints, and payment to the agreed terms (cips.org, 2018). However, is not acceptable to use power inappropriately or enhance corruption when choosing a vendor, or materials to produce. The MPS process uses the sales order and forecasts data to establish individual records and unique reference numbers for each vehicle. The Heijunka process is used in Toyota company to schedule the vehicles by day, by plant, and by line (Sokidin et al., 2018). The capacity requirements for both MRP and MPS schedules is to establish the lower and upper limits of their operations rate for each product.

“Grey parts” may result in higher production costs, incomplete production activities, or the production of low-quality products. This may alter the company’s ethical guidelines and deprive the Japanese people of jobs they would otherwise have (Sugimori et al., 2007). From a legal perspective, the company takes the liability of the product’s defects and any disputes from the contract and confidentiality. Some regulations, like liability exclusions, provide standard legal contract language that covers them.

References

Cips.org (2018, Aug 07). Ethical business practices in purchasing and supply management. Cips.org. https://www.cips.org/Documents/About%20CIPS/Ethical_Bus_Prac%20printed.pdf

Shih, W. (2018, Apr 17). Inside Toyota’s giant Kentucky factory: Japanese production techniques, made in America. Forbes.com. https://www.forbes.com/sites/willyshih/2018/04/17/inside-toyotas-giant-kentucky-factory-japanese-production-techniques-made-in-america/#5ac04a5533e4

Sokidin, I. et al. (2018, May). Design of Toyota production system based on Hiejunka principles to increase human work productivity. Researchgate.net. https://www.researchgate.net/publication/326342063_Design_of_Toyota_Production_System_Based_on_Heijunka_Principles_to_Increase_Human_Work_Productivity

Sugimori, S. et al. (2007, Mar 28). Toyota production system and Kanban system materialization of just-in-time and respect-for-human system. The International Journal of Production Research. https://www.tandfonline.com/doi/pdf/10.1080/00207547708943149

TMF Group (2018, May 21). Requirements for doing business in the US. Tmf-group.com. https://www.tmf-group.com/en/news-insights/articles/2018/may/requirements-for-doing-business-in-the-us/