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Tesla VS Toyota Comparison Essay

It is easy to make a case for Toyota Motors saying that Toyota is the world’s best automaker. Toyota’s focus on manufacturing best cars have delivered brilliant quality and worth for years and has the loyal following award from all over the world.

The methods of Toyota Motors are so well designed and operated that the system of Toyota Manufacturing has become the standard of manufacturing all over the world. But there are some people who say that Tesla has the sleek car design, electric car technology and the most revolutionary design and manufacturing process. Which is ready to disturb Toyota’s ranking in the world’s leading automobile maker.

Inventory management System

The inventory management system of Toyota has Just in time inventory management, which is known as JIT inventory management, it is also termed as lean manufacturing. Just in time is the process of ordering and delivering inventory for the purpose of manufacture and customer sales only if it is required and not earlier. So it is clear that this company is not holding any stock in their hands and is operating in the low levels of inventory. This process requires the customer to make demand first, once the order is placed the Toyota manufacturing plant start making the product for the end user according to his requirements.

Just in time inventory management method is cost-effective method, because only those things will be produced which are required by the market customers. By doing this, there is no waste or no excessive manufacturing; things are according to demand which makes it a cost-effective method.

The inventory management system of Tesla based on the operations management principles that focus on the quality of the production. The inventory decisions for production of the cars are taken in the decision area. In Tesla, the managers require that holding the inventory does not affect the quality of tools and materials used in the making of the product. But for some materials Tesla uses Just in Time approach, they make things according to the market demand.

Capacity Policy

Toyota Motors automobile production system makes materials or cars as per the demand which is also referred to as Just in time system. This production system is developed after years of continuous improvements, now if there is a demand for a car or a customer order the car with specific details, the company just make the car as ordered by the customer, make it, and just deliver it at once, this does not need any need to store the car at some location, but the car is built and delivered at once. Based on Just in Time approach the best quality of the car is produced, that fully meets the requirements of the customer.

Whereas if we talk about Tesla, the manufacturing plant of Tesla is 32 miles away from the Tesla’s headquarter is large enough to handle automobiles around 500,000. Tesla, on the other hand, produces one-fifth of the plant’s capacity.

Manufacturing Process

The manufacturing process of Toyota Motors is known as jidoka which means automation with a human touch. It means that the working machine safely stops when the normal processing is completed. When there is a problem detected in the automobile, the machine detects it and stops; this prevents defective products from being produced. Resulting in the production of best quality of product that meets the customer’s expectations to the satisfactory level.

On the other hand, Tesla also uses the same technology “jidoka.” If any problem is detected in the main body or frame, the machine stops and do not allow the car to move further into the production phase.


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