...Planning/Assessing Production for Toyota North America Executive Summary The Toyota Production System (TPS) is an integrated approach to work design that was developed and implemented by Toyota. The key characteristic of this system is that it takes into account the interactions that occur between technology and the human counterparts, which include employees, suppliers and customers. At its core, the TPS is a direct reflection of Toyota's management style and practices. The following summary will examine the TPS, including key terms that form the framework for the TPS, a comparison of the two most optimal locations, through the use of the weighted scoring model, for the selection of the North American plant which will be responsible for the production of the new Lexus RX330 line, an exploration of the production capacities through the use of decision trees, and provide an overall assessment of Toyota's current production strategy. I. Critical Assessment of the Toyota Production System (TPS) Today TPS Terms 1. Genchi Genbutsu- In essence means one has to observe a problem to fully understand it. One cannot simply rely on their second hand experience and second hand accounts of their experiences. For example, during hurricane Katrina, the Federal Emergency Management Agency (FEMA) initially heard second hand accounts of the damage and devastation experienced by residents of Katrina. FEMA was unable to thoroughly assess the state of emergency and issues at...
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...REDUCING TURNOVER IN PRODUCTION AT TOYOTA SAN ANTONIO, TEXAS Prepared for: Toyota Motor Manufacturing Texas (TMMTX) Prepared by: N. Robertson, Assembly Group Leader TMMTX October 5, 2014 [pic] Modified CommunityLink, Business & Industry Image REDUCING TURNOVER IN PRODUCTION 10/01/2014 Brad Nye, General Manager of Production Toyota Motor Manufacturing Texas 1 Lone Star Pass San Antonio, TX 78245 Brad, I am writing to express my concern over the high turnover rate we are experiencing in production, specifically in assembly. With nine years in the company, five years as a group leader, I have seen many good team members choose to leave Toyota and find employment elsewhere. I am confident that I have a solution that will help reduce the amount of voluntary terminations by our full time Toyota employees and our Aerotek variable workforce. My proposal, which I have enclosed for your review, contains research, factual data, statistics, and educated opinions on how to resolve the crisis we face on the floor. I look forward to the opportunity to meet with you to discuss these proposed improvements. N. Robertson Assembly Group Leader, Frame 2/Final 1 Toyota Motor Manufacturing Texas 1 Lone Star Pass San Antonio, TX 78245 My safety commitment is to always follow up on team member HYP concerns within 24 hours. TABLE OF CONTENTS LIST OF ILLUSTRATIONS……………………………………………………………4 EXECUTIVE SUMMARY.....................
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...competencies is their production system which is known as Toyota Production System (TPS). This is consists of Lean manufacturing and Just-In-Time (JIT) Production. Lean Manufacturing is the production practice in which it is focusing on the elimination of waste and continuous improvement over long-term. Lean Manufacturing has been proven to be successful in improving productivity and reducing cycle times. On the other hand, Just-In-Time production is the production practice in which it is focusing on synchronizing the material flow so that when one item moves out from a work station, another item is ready to move in. It allows Toyota to keep their inventory to the minimal levels and this can help the company to reduce the cost significantly. Toyota Production System has enable Toyota to gain competitive advantage over their competitors. Many companies viewed Toyota and argued that many of those companies which have studied Toyota Production System for decades and try to imitate their production system but not many companies have not been proven to be successful in imitating their production system. It requires long-term commitment, determination and discipline to make all the process work. Furthermore, another Toyota's core competency is their brand management. Toyota has been successful in their marketing strategy in which their brand has been recognized in all over the world. Toyota has outsourced 70% of its vehicle content. It means Toyota did not manufacture many of their...
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...SUMMARY In 2008, Toyota was ranked the world’s number one in motor vehicle production volume with more plants opening in Canada, USA and Mexico. Due to the worldwide recession, Toyota sales dropped tremendously, thereafter. Beginning in early 2010 Toyota’s sales, and stock price dropped again due to accelerator and brake problems with a number of their cars. People were afraid to drive and purchase the 2010 Prius as the brake problems occurred mainly in this line of car. Toyota was no longer ranked number one in motor vehicle production due to the problems the company faced in 2010. Currently in 2011, Toyota is concerned about how well the Lexus RX 330/350 has done in the North American market? Due to this matter, the operation management team has produced a report that concerns the Toyota Motor Company’s North American Lexus production decision made a few years ago and the production of Toyota’s strategy for North America. This report includes a critical assessment of the Toyota Production System (TPS), which will be used to demonstrate the basic understanding of the TPS and describe the TPS as a total entity. This report also includes a grid analysis which will be used to help make the North American plant location decision for the Lexus RX 330 Line by listing the key factors as either exogenous or endogenous, stating any relevant assumptions or constraints, and assigning two scores to each factor: one for production of the Lexus RX 330 at the Toyota Motor Manufacturing...
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...Exercise 4: Assessment of Toyota’s Current Regional Production Strategy; North America During the 1960’s the United States began to place stiff taxes on imports which caused a stir among European automobile manufacturers. This heavily impacted their market. In order to manufacture cars locally and avoid U.S. import tariffs, Toyota built its first manufacturing facility in North America in 1972 in Long Beach, CA. Following in 1985, a second facility was erected and opened in Canada. It wasn’t until 1988 however that manufacturing facilities were built to both manufacture and sell cars. The first two facilities opened in 1988 and were located in Ontario, Canada, and Kentucky respectively. Currently there are two facilities located in Canada, ten in the United States, and in 2002 Toyota opened their first manufacturing facility in Mexico (Toyota, nd). The Japanese exchange rate was a major factor that needed to be considered when moving production facilities to North America. During the 1970’s, the YEN was at an all-time low following the 1973 oil crisis. During the 1980’s the YEN failed to climb, but in the 1990’s the YEN reached its peak in 1995. An evaluation of the production facilities currently located in North America finds the TMMC (Canadian manufacturing facility) to be among the top 5 global manufacturing plants. They produce over 500,000 vehicles annually. Next the North American facilities combine to produce 1,644,661 vehicles last year, and have 10 operating...
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...5/16/2015 3 Reasons Why Toyota Is On A March In North America (/) Micheline Maynard (http://www.forbes.com/sites/michelinemaynard/) Contributor I look at all the ways we get around Opinions expressed by Forbes Contributors are their own. AUTOS (/AUTOS) 3/28/2012 @ 10:44AM 7,631 views 3 Reasons Why Toyota Is On A March In North America Comment Now Follow Comments Just a few years ago, Toyota’s world was Total Recall – not the movie that’s being remade, but the neverending wave of bad news about its cars. It lost its spot as the world’s best-selling car company to General Motors (http://www.forbes.com/companies/generalmotors/), and some people wondered if Toyota could ever get back its sterling reputation. What Pure Michigan Means to Business Leaders But this year, Toyota has been on an (Image credit: Getty Images North America via @daylife) investment march, and Canada and the United States are reaping the benefits. On Wednesday, Toyota announced http://www.forbes.com/sites/michelinemaynard/2012/03/28/3-reasons-why-toyota-is-on-a-march-in-north-america/ 1/3 5/16/2015 3 Reasons Why Toyota Is On A March In North America (http://toyotanewsroom.com/releases/toyota+canadian+manufacturing+operation+increase+rav4+volume.htm? view_id=30039)its latest move, involving its newest Canadian plant. The Japanese carmaker will invest $80 million (Canadian) in its factory in Woodstock, Ontario, about two hours west of...
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...which is aim towards the Toyotas customer oriented and quality driven operations and production process has grown in reputation over the years. This presentation intends to analyze this system alongside other aspects of the company’s business operations in regards of its Facilities in North America Toyota production system This presentation is aimed to illustrate a four exercise approach in analyzing the Toyota Manufacturing Corporations and the TPS it adopts. We analyzed Toyota production system based on our understanding of what it represents in terms of its Concepts. We also define TPS as an entity, furthermore we discuss its purpose in Toyota Manufacturing Corporation as well as its production in North America. To better illustrate its value to the company we also describe the advantages and limitations of the system. Weighted Scoring Model Using a the weighted scoring model we would critically assessing the potential Lexus RX 330 North American Plant location decision between TMMC or any of Toyota Manufacturing Corporation U.S factory plants. In doing so we would identifying the factors the company would need to consider. Decision Tree We would be applying the decision tree tool to adequately recommend a production capacity for TMMC to utilize in the production of the new Lexus RX 350 line in order to achieve optimal quality and maximize profit. First we explain the decision tree process, then recommending the production capacity for the North American and lastly its...
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...TOYOTA, INC. A Case Study in Communicating Bad News Written by: Alex Mezey Scott Hamilton Kevin Kuwahara Courtney Sandlin Dr. Robyn Walker Faculty Advisor Center for Management Communication Prepared for: Case Study Initiative Center for Management Communication 2013 Page 1 of 12 INTRODUCTION In 2005, Lupe Lee bought a new Toyota Camry from a local Sunnyvale, California, Toyota dealership, donating her immaculate Camry bought in 1990 to a local charity. Going from an older Camry model to a newer one, it was obvious that Lupe not only liked Camry cars, but she liked Toyota and its business model. However, this was all about to change on September 9, 2011. On this day, Lupe and her daughter were on their way to Berkeley for a niece’s wedding. They planned to stop in Burlingame to pick up Lupe’s sister, Rose. They arrived at the sister’s apartment early, so Lupe and her daughter went inside. After visiting in the apartment for a time, the three of them went out to get into the Camry to continue on to Berkeley. Lupe would have to make a U-turn to head back towards the freeway. Instead, she decided to maneuver into a nearby driveway to turn around. This is when things began to go horribly wrong; as they started up the driveway, the car began accelerating. Rose exclaimed “Lupe! What are you doing!? Why are you going so fast!? Push on the brake!” Lupe had no control of the car; she was terrified. She tried desperately to press the brake, but nothing happened. She quickly...
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...Assignment 3. Planning/Assessing Production for Toyota North America Lexus RX 350, Successor in 2007 to the RX 330 Photo courtesy of Toyota Motor Company Assignment Taskings As part of a team, address Part 1 a and b of the following four exercises. Exercise 1: Making a Critical Assessment of the Toyota Production System (TPS) Today a. Demonstrate your basic understanding of the TPS by 1) defining in your own words any eight of the terms found at http://www.toyotageorgetown.com/terms.asp, and 2) applying them to one or more of your own companies or other organizations. For example, Pokayoke can be defined as an approach to avoid production mistakes through use of devices that detect or prevent errors. At a software development firm, pokayoke might be applied through use of a modular development process that includes extensive software module testing before proceeding to module integration and total system testing. b. Describe the TPS as a total entity. What are its purposes? Its advantages? Its limitations? How is it now evolving? Is it getting better – or not? Has it been successfully copied by other motor vehicle manufacturers? Why or why not? Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding among two or more competing plant location options, various decision factors (which can typically be characterized as exogenous - in the environment...
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...the Production System at Toyota David Osborn Ebenezer Ogoke Lamar Pryor Loretta Inoni UMUC AMBA 640 9042- Dr. Wende Huehn-Brown Table of Contents Exercise #1: 3 Exercise #2: 9 Exercise #3 14 Exercise #4 20 References 24 Exercise #1: Executive Summary Since the early 1950’s Toyota has been in the business of manufacturing automobiles as a family operated company. Much of Toyota’s success has come from their ability to adapt to an ever changing market place, in both good times and in bad, while honoring its commitment to product safety and quality. This commitment has allowed them to consistently produce cars that meet or exceed that of their competition, while taking into consideration the impact on our environment. Through the years many types of cars can be associated with the Toyota brand, but it is the introduction of the Lexus line of cars in 1989 that has helped to keep Toyota at the forefront of innovation and design. Early in 2000 Toyota took on the daunting task of deciding where to manufacture the Lexus RX300. Through careful analysis it was decided that the Toyota Motor Manufacturing of Canada (TMMC) would get this task. How this decision was derived came from the efforts of an independent consulting firm called the Hawks. They utilized production analysis and concepts derived and refined out of Toyota’s Production System (TPS) from Andon to Yokoten, as well as, Grid Analysis and Decision tree to assess how best Toyota should expand its production...
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...Toyota, Inc. A Communication Breakdown TOYOTA, INC. A COMMUNICATION BREAKDOWN Careful examination of the internal and international communication operations of Toyota, Inc. will prove that there is an immediate need for innovation when handling consumer complaints. HISTORY For over fifty years Toyota has been a brand its consumers considered to be trustworthy, and reliable. The first Toyota dealership opened within the United States on October 31, 1957 in Hollywood, California. This would become its headquarters and a mere 288 vehicles were sold this first year. Since this time Toyota has expanded across the United States currently operating a total of ten plants which assembles more than a million vehicles per year. The company currently has nearly 39,000 employees. It prides itself on extending its managerial hand to other corporations such as Apple and Google, contributing more than 700 million dollars towards the American economy. Specifically focusing on safety, education, and the environment within the United States. In 1961 Toyota ceased the manufacturing of the Toyota Toyopet, making the Land Cruiser the companies golden goose until 1965 when the Toyota Corona was developed. This caused the companies sales to increase in the upwards of twenty thousand vehicles per year by 1966. By 1972 Toyota had sold a million vehicles, and in 1975 it took the title of “No 1. Imported Vehicle “from Volkswagen. Over many years Toyota pitched many campaign slogans such as:...
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...A Lesson in Communicating Bad News: The Toyota Recall Crisis: Missteps, Miscommunications, and Missed Opportunities Mari E. Friedrich MGT 460 June 24, 2015 Abstract The paper will serve to examine the corporate leadership failures of the Toyota 2009-2010 defective acceleration recalls. Focusing specifically, on a case that occurred in the state of California in 2011, resulting in a massive recall by Toyota, and nearly 30 percent of all U.S. vehicle recalls in 2010. This study will center on Toyota’s response on the case facts and its internal and external communications with Toyota North America, the Toyota owners, and the National Highway Traffic and Safety Administration (NHTSA). It will also address key stakeholder issues and risks to the Toyota brand. Finally, desirable outcomes will be outlined for resolving the ethical challenges by Toyota, as well as possible solutions that could have been implemented and recommendations for the future. A Lesson in Communicating Bad News: The Toyota Recall Crisis: Miscommunications, Missteps, and Missed Opportunities Case Introduction There has been an unprecedented period of corporate crises over the past decade. Effective crisis management has been a key element in whether a company can ride the storm and come out the other side. There is a constant presence of crises in the world of business and global business today that the public has seen firsthand. A crisis can happen to any company, large or small in every...
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...methods using Supply Change Management models in North America was successful to eliminate lag and waste, However, adopting this methodology in North America was risky regarding currency fluctuations. A recommendation that Toyota consider the financial aspects dealing with currency prior to additional construction and already risky adoption of lean methods in North America distribution centers. These currency fluctuations could confound the bottom line when working with analytics for input and output. as well as the This statement regarding a choice to expand production in North America was made by Coca-Cola 10K (2010) financial assessment. “Our international operations are subject to certain opportunities and risks, including currency fluctuations and government actions. We closely monitor our operations in each country and seek to adopt appropriate strategies that are responsive to changing economic and political environments and to fluctuations in foreign currencies. We use approximately 60 functional currencies. Due to our global operations, weaknesses in some of these currencies are often offset by strengths in others. In 1999, 1998, and 1997, the weighted-average exchange rates for foreign currencies, and for certain individual currencies, strengthened and weakened against the U.S. dollar (Coca-Cola 10K, 2010). Using Just in Time (JIT) inventory management methods, as current Toyota Distribution Centers do in North America and globally, means that the a state of the...
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...President of Toyota Motor Industries: Rizaburo Toyoda (1937–1941) Kiichiro Toyoda (1941–1950) Taizo Ishida (1950–1961) Fukio Nakagawa (1961–1967) Eiji Toyoda (1967–1981) President of Toyota Motor Corporation: Eiji Toyoda (1981) Shoichiro Toyoda (1982–1992) CEO of Toyota Motor Corporation: Dr. Tatsuro Toyoda (1992–1995) Hiroshi Okuda (1995–1999) Fujio Cho (1999–2005) Katsuaki Watanabe (2005–2009) Akio Toyoda (2009–present) Chairman of Toyota Motor Corporation: Shoichiro Toyoda (1992–1999) Hiroshi Okuda (1999–2006) Fujio Cho (2006–present) Toyota is publicly traded on the Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo exchanges under company code TYO: 7203. In addition, Toyota is foreign-listed on the New York Stock Exchange under NYSE: TM and on the London Stock Exchange under LSE: TYT. Toyota has been publicly traded in Japan since 1949 and internationally since 1999.[10] As reported on its consolidated financial statements, Toyota has 540 consolidated subsidiaries and 226 affiliates. Toyota Motor North America (100% – 2004) Toyota Canada Inc. owned via Toyota Motor North America Toyota Tsusho – Trading company for the Toyota Group Daihatsu Motor Company (51.2% – March 31, 2006) Hino Motors (50.1% – 2001) Lexus 100% (1989) Scion 100% (2003) DENSO (24.74% – September 30, 2006) Toyota Industries (23.51% – March 31, 2006) Aisin Seiki Co...
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...Chrysler, it was a major setback when Daimler decided to withdraw its partnership and give its 80 per cent stake to Cerberus for less than 1/4th of the price they bought it for. Chrysler was doing badly, and although known as the “Number Three” car in North America, it was not able to keep up and had to declare bankruptcy and was told to form a strategic alliance with a company as a part of the Obama Administration rescue plan. Fiat has had its own share of ups and downs, but in the European market it has proven to be successful. It withdrew itself from the North American market in the nineteen eighties as it could not keep up there. But now, with its strategic alliance with Chrysler, it can benefit by entering into the North American market without having to push too much as Chrysler is already a well-known brand there. The Strategic Alliance was definitely very important for Chrysler as it had huge losses in 2006, had to lay off over 13000 people, and was going bankrupt. It could not keep up with the turbulent economy and needed to be bailed out. For Fiat it made sense over GM, Toyota or Volkswagen to form an alliance with Chrysler, as it fit in the long term plans of the new CEO, Sergio Marchionne of re-entering the North American market. For Fiat...
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