[pic] SUPPLY CHAIN MANAGEMENT OF TOYOTA MOTORS INTRODUCTION [pic] Toyota Motor Corporation Founded 1937 Founder Kiichiro Toyoda Headquarters Toyota City, Japan; Industry Automotive, Robotics Financial services and Biotechnology Products Economy/mainstream/luxury vehicles Revenue USD $203.26 billion (2009) Employees 316,121 MISSION OF SUPPLY CHAIN Minimizing supply chain costs while keeping a reasonable service level customer
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As we can see clearly, the plant had a problem with defective seats in its production of Toyota Camry. The run ratio was down to 85% from 95% in one month. This 10-point drop meant that too many cars had to be made up with overtime and needed off-line operations of one type or another before they could go on to shipping. Toyota Production System (TPS) has two guiding principles: 1. Just-In-Time (JIT) production 2. Principle of jidoka The plant insisted on “produce only what was needed
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96 ARTWORK BY AMY NINC The Toyota story has been intensively researched and painstakingly documented, yet what really happens inside the company remains a mystery. Here's new insight into the unspoken rules that give Toyota its competitive edge. Decoding the DNA of the Toyota Production System by Steven Spear and H. Kent Bowen long been hailed as the source of Toyota's outstanding performance as a manufacturer. The system's distinctive practices -its kanhan cards and quahty circles
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Toyota Case Operation Management Optional Case #1 Optional case 1 1. What would you do to address the seat problem? Where would you focus your attention and solution efforts? We would focus on a series of actions: • We would first collect data on seats defect issue and try to find out what is the cause of the problem using the 5 Why's analysis. On the other hand we would ask KFS management to do the same thing. Then arrange a meeting with people involved in QM and come up and agree on a
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don't really want to work. The idea, for example, that a worker in the plant would have the power to stop the line in order to eliminate a problem was heresy. Wouldn't such permission lead to widespread line-stoppage for every whim? Not, according to Toyota, if you instituted a system of worker responsibility and accountability. American companies might think they had a tight rein on employees, but with little responsibility resting directly in the workers' laps, there was also little accountability
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from her associates on the plants’ general productivity, quality performance, and environmental regulatory compliance. Further, she hired consultants to compare Honda’s U.S. environmental practices to those of their main U.S. transplant competitor, Toyota. Upon Investigation, the standards appeared to be fairly flexible in their implementation. Nonetheless, issues of concern remained. ISO 14000 was designed to focus on environmental
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Toyota Production System How does a company simultaneously meet its customers’ demands on time while maintaining the best quality levels at the lowest cost? Sounds like conflicting business goals? Where huge companies with deep pockets failed, one company stood out and faced the challenge of trying to meet these goals. This company was Toyota. The post-WW2 period was trying for the Japanese economy. The country was ravaged by the atomic bombings and the drain on resources from the war time activities
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Case #5 (Optional) Bohuan Yu Toyota Motor Manufacturing Co. 1. As Doug Friesen, what would you do to address the seat problem? Where would you focus your attention and solution efforts? If I was Doug I would look at when the seat problem began. When Toyota introduced the new wagon model along with eight other seat variations compared to the original five. Also, volume increased significantly as demand did. Now the plant was producing for the world market, Europe and Japan/Middle East added
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Toyota Motor Corporation, Ltd. I. Viewpoint The viewpoint of the CEO of Toyota will be applied. II. Time Context Present Year III. Objectives Toyota Motor Corporation’s objective is to identify ways to keep up and adapt with the foreign business cultures to successively expand by at least 10% before 2020. IV. Statement of the problem Minor Problems: • Strategies to adapt with foreign cultures and anticipate its possible
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Supplier Development at Honda, Nissan and Toyota: Comparative Case Studies of Organizational Capability Enhancement* Mari Sako Professor of Management Studies Said Business School University of Oxford Park End Street Oxford OX1 1HP, UK Email mari.sako@sbs.ox.ac.uk October 2002 * This study was funded by the International Motor Vehicle Program (IMVP), the UK Economic and Social Research Council, and the Japan Foundation. I am grateful to the interviewees at the three automakers and suppliers who
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