ABSTRACT
Suppliers make up 80% of the cost to produce a vehicle compared to internal operations, which explains why interrelationships and interdependence are significant in Toyota Production System. One of the objectives of systems is to ensure that all subsystems work together and contribute toward the system’s objectives. Relationships within a system are structured depending on the type of problem and how the parts of the system are satisfied as a whole. A system is dependent when the goal achievement of system A is affected by system B’s actions. Research showed that cooperation promotes higher achievement and greater productivity than does competition in system effectiveness. Processes that suppliers are expected to replicate from Toyota are largely focused on daily management practices and the reliance on backup systems. International Organization for Standardization encourages self-protecting structures because it asks the supplier to develop a system on itself without advocating which variables or factors make the system effective.
