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Toyota Motor Manufacturing, U.S.A., Inc. – Case Solution

Doug Friesen, the manager of assembly for the Toyota Motor Manufacturing plant in Georgetown, Kentucky was facing a huge problem regarding its car seats. Several of their cars came up with either having defective seats or without any seat at all. It resulted in employees being engaged to work overtime to resolve the problem but the cause of the problem cannot be identified. Without identifying the cause, the company cannot come up with an appropriate solution.

​Kazuhiro Mishina Harvard Business Review ( 693019-PDF-ENG ) September 08, 1992

Case questions answered:

Case study questions answered in the first and second solutions:

• As Doug Friesen, what would you do to address the seat problem at the Toyota Motor Manufacturing, U.S.A. plant? Where would you focus your attention and solution efforts?
• What options exist? What would you recommend for the short-term and long-term? Why?
• Where, if at all, does the current routine for handling defective seats deviate from the principles of the Toyota Production System?
• What is the real problem facing Doug Friesen?

Case study questions answered in the third solution:

• What are the key principles that TPS incorporates? Which ones did they fail to follow?
• What is the cost of a chord pull resulting in a line stoppage of 1 minute? 30 minutes? 60 minutes? What is the value of a chord pull?
• How should Doug Friesen address the seat problem of Toyota Motor Manufacturing Inc.? As Doug Friesen, where would you focus your attention and solution efforts?

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Toyota Motor Manufacturing, U.S.A., Inc. Case Answers

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Q1. As Doug Friesen, what would you do to address the seat problem at Toyota Motor Manufacturing, U.S.A. plant? Where would you focus your attention and solution efforts?

The deteriorating quality of seats continued to be an issue at Toyota Motor Manufacturing, U.S.A., Inc. (T.M.M.) owing to the Just-In-Time policy followed at their end. The problems ranged from the delivery of defective seats to failure in seat replacement for the defective ones.

Changes and proposed solutions are as follows:

• The introduction of numerous variants led to issues in seat quality management as the operations at the end of KFS were initially streamlined and in line with T.M.M.’s goals. Postponement of customization of colors can lead to a reduction in the variants during the production stage and can be customized after the seats pass the quality check.
• Quality Control needs to be performed either at the outbound stage of KFS (as per T.M.M. standards) or at the inbound stage of Toyota Motor Manufacturing, U.S.A.

Instead of keeping the faulty seats on the assembly line, it is better to move to the Code 1 Clinic Area immediately so that the problems in the seat can be identified and rectified. It also helps in the company’s adherence to the Jidoka concept. Adoption of Just-In-Time in the Code 1 Clinic Area for seat reworks as well to reduce the delay in the rework process.

Proper seat assembly needs to be cross-checked at the Inbound stage itself by T.M.M. for special deliveries.

Q2. What options exist? What would you recommend? Why?

The alternatives are as follows:

• Review of available variants to identify if all of them are necessary or not. Reduction in slow-moving variants can streamline the process.
•   Toyota Motor Manufacturing, U.S.A. should take up the Quality Control process of KFS in association with KFS’s quality department by providing expertise and developing solutions to match the requisite standards.
•   Search for a new supplier who could deliver quality products on Just-In-Time. o Multi-Vendor Policy
• Trend analysis (Exhibit 10) shows an increasing number of Andon Pulls as the month progresses for Rear Seats. The underlying issues have to be identified and rectified.
• Safety Inventory needed to be maintained for Seats so that the delay from the supplier wouldn’t affect the T.M.M.’s production cycle.

Recommendation : Out of the alternatives mentioned above, we would suggest Toyota Motor Manufacturing, U.S.A…

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• Harvard Business School →
• Faculty & Research →
• September 1992 (Revised September 1995)
• HBS Case Collection

Toyota Motor Manufacturing, U.S.A., Inc.

• Format: Print
• | Pages: 22

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Home > Corporate  >  Manufacturing

Toyota’s U.S. Manufacturing Footprint: Impacting Communities with Innovation and Respect

For more than 60 years, Toyota has been a part of the cultural fabric in the United States, establishing communities centered around manufacturing in cities across North America. In fact, many of the people driving Toyota cars and trucks in these areas often have a good idea about who had a hand in assembling them.

“Our family members are the customers,” says Norm Bafunno, senior vice president of Unit Manufacturing and Engineering at Toyota Motor North America (TMNA). “And there’s nothing more rewarding than hearing feedback from them about the Toyotas they’re purchasing and knowing we had a part in that. It’s a source of great pride.”

Today, Toyota operates 14 manufacturing plants in North America, and employs more than 32,000 people to design, engineer and assemble almost half of the vehicles Toyota sells in the United States. By manufacturing in North America, Toyota supports regional suppliers and economies, fosters local communities and assembles high-quality cars and trucks for customers. Toyota’s commitment to assembling vehicles where they are sold not only benefits the areas surrounding local plants, but also helps the company better understand its customers.

“I think that pride in manufacturing resonates within our plants and creates products that will exceed customer expectations,” Bafunno says. “Manufacturing where we sell is what we need to do to be successful in the marketplace.”

Each TMNA manufacturing plant benefits the local economy directly by creating new jobs for people in the region. But according to Bafunno, throughout his career, he’s witnessed firsthand how the manufacturing plants establish and cultivate a sense of community spirit that employees carry with them well beyond the campus grounds.

“During my 24 years at Toyota, I’ve watched manufacturing evolve,” Bafunno says. “I was at the third assembly plant built. As I’ve watched us grow, what I’ve noticed the most is our impact on the lives of people.”

Creating Community

A Toyota plant creates a whole ecosystem within a region, according to Brian Krinock, senior vice president of Vehicle Plants, TMNA. Krinock, who has been with Toyota for 30 years, has spent time at almost every manufacturing plant built in North America. He says that when you factor in the size of each plant — between 400 to 9,000 employees — and include the families of each employee, contractor and supplier, it exponentially increases the number of people in a community impacted by Toyota.

“The impact we have in a community is huge,” Krinock says. “We want to be a good citizen wherever we do business, because we live there, our families are there, and it is important to us to be a part of our communities.”

Krinock believes that much of this attitude stems from Toyota’s company values, which each employee takes to heart both in the workplace and beyond.

“We’re all about our values, ‘Respect for People’ and ‘Continuous Improvement,’” Krinock says. “Having strong values is the most important part of a company culture, and we’ve really fostered that throughout Toyota.”

Toyota employees often volunteer to lead nonprofit boards that provide needed services, such as donating and delivering to food pantries and crisis centers. But while Toyota supports employee groups and fundraisers like Relay for Life and Susan G. Komen’s Race for the Cure, Bafunno says people are quick to help their fellow colleagues and families beyond those organized events — and he’s seen more examples than he can count.

“I find that the communities we are a part of recognize who we are not by some great commercial or someone’s great speech, but by the actions our employees take every day in the community,” Bafunno says. “When a family’s world gets disrupted by some terrible event, our employees step up to contribute. It makes you incredibly proud to be a Toyota employee.”

Continuous Improvement, Across the Board  

In addition to charitable work, when employees embrace Toyota’s values, it often leads to innovation, learning and discovery of new ways to get things done on the job. Both Bafunno and Krinock believe that everyone in the organization can embody the culture of “Continuous Improvement,” no matter what they do at Toyota.

“Part of the participation in Toyota goes well beyond the normal job,” Bafunno says. “It goes into using your knowledge and experience to make things better ­— and that goes for everybody in the organization. It’s a fundamental part of our process.”

For example, someone in manufacturing may assemble a nut and bolt in a way that makes it more efficient to grab on the line, or an engineer may improve the way a project is sourced to make it less expensive. Many employees’ proposals build off one another and become incredible innovations over time. Plus, some Toyota employees have even patented their great ideas.

“I want everyone to know that our people are the biggest asset we have,” Krinock says. “Ideas come from the floor, come from the middle to the top of the company all the time. Everyone at Toyota has the ability to change what we do each and every day.”

Building a Sustainable Way Forward

Many of the innovations and ideas that come from employees have to do with sustainability. As Toyota works to reduce waste and make improvements to reach carbon neutrality, its manufacturing plants are doing their part.

“Believing in sustainability is ‘Respect for People,’” Krinock says. “One, because we need to respect our communities. But also, we respect the people who come up with better ideas and empower them to make changes. Our best sustainability ideas come from someone on the floor who says, ‘Hey, why are we doing this this way? Why are we using cardboard? Can we deliver this differently?’”

There’s a misconception that manufacturing, an industry that assembles and creates things, isn’t focused on sustainability, but Bafunno thinks that people would be surprised about the processes that are already in place at each of Toyota’s plants. Almost all plants have established eco zones, which are on-site natural habitats. There are policies to lower water consumption, curb emissions and reuse plastics. In addition, Toyota has some of the first zero-landfill manufacturing facilities in the country. And that’s just the beginning.

“When it comes to sustainability, we have a lot of change coming,” Bafunno says. “It’s a big priority for us. Each of us has these strong pillars of responsibility because it creates job security. If we sit still, our competition is going to blow by us, and we’ll lose some of that stability if we’re not in a leadership role.”

Within the manufacturing team, there’s a strong understanding of the idea of “Continuous Improvement” and a push for more innovation. Both Krinock and Bafunno believe that within the automotive industry, the next few years are going to be transformative — and full of excitement.

“I’ve been in the industry for 36 years,” Krinock says. “The change we’re seeing in automotive right now is like we’ve never seen before. We’re changing the technologies and materials, electrifying our vehicles, updating structures of the vehicle itself and using more recyclable products. Going forward, it’s only going to continue to evolve — and Toyota will be a part of that.”

Tracing Toyota’s U.S. Manufacturing Journey

From its modest beginnings selling just 288 vehicles in 1957, Toyota has been etched into the U.S. cultural fabric for more than 60 years. Here in our backyard, Toyota contributes to world-class design, engineering and assembly of vehicles. Toyota continues to expand its U.S. operations and investment in local communities, while innovating for a better world.

10 U.S. manufacturing plants 1

Hover over the map to explore Toyota's U.S. manufacturing footprint.

Toyota Motor Manufacturing, Texas

Toyota Motor Manufacturing, Missouri

Toyota Motor Manufacturing, Indiana

Toyota Motor Manufacturing, Kentucky

Toyota Motor Manufacturing, West Virgina

Toyota Motor Manufacturing, Tennessee

Toyota Motor Manufacturing, Mississippi

Mazda Toyota Manufacturing

Toyota Motor Manufacturing, Alabama

Toyota Battery Manufacturing, North Carolina

Years manufacturing in the U.S. 2

Employees 3

Vehicles assembled and counting 4

Direct investment in the U.S.

Toyotas assembled 5 and exported to 40 countries

Funds donated to U.S. communities and causes

Vehicles sold in 2020

Vehicles assembled in 2020

Employee volunteer hours invested in 2020

Hybrid models sold in the U.S. 6

Gallons of water recycled or reused 7

Pollinator gardens supporting monarch butterflies' migration

Originally published October 5, 2021

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Toyota Motor Manufacturing, U.S.A., Inc.

By: Kazuhiro Mishina

On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are…

• Length: 22 page(s)
• Publication Date: Sep 8, 1992
• Discipline: Operations Management
• Product #: 693019-PDF-ENG

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On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy.

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.

Learning Objectives

Provide comprehensive knowledge on Toyota Production System,

Exercise advanced root cause analysis, and

Demonstrate the totality of manufacturing, especially the link between production control and quality control.

Sep 8, 1992 (Revised: Sep 5, 1995)

Discipline:

Operations Management

Harvard Business School

693019-PDF-ENG

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Toyota Motor Manufacturing, U.S.A., Inc.: Operational Excellence Case Study

Toyota Motor Manufacturing, U.S.A., Inc. is widely renowned for its operational excellence and pioneering manufacturing practices. The case study of Toyota's operational excellence is not just an insightful exploration into the company's success, but also a compelling testament to the power of lean manufacturing principles, just-in-time production systems, total quality management, and a relentless dedication to continuous improvement.

This case study offers valuable insights into how Toyota has consistently maintained its position as a leader in the automotive industry, and it presents an opportunity to dissect the operational strategies that have propelled the company to the forefront of innovation and efficiency.

Toyota Motor Manufacturing, U.S.A., Inc. Overview

Toyota Motor Manufacturing, U.S.A., Inc. is a renowned subsidiary of Toyota Motor Corporation, specializing in the production of high-quality vehicles with a focus on operational excellence and continuous improvement.

Operational efficiency is at the core of Toyota's production processes, which are designed to eliminate waste and maximize productivity. The company has implemented the Toyota Production System (TPS), which is renowned for its lean manufacturing principles. By emphasizing continuous improvement and waste reduction, Toyota Motor Manufacturing, U.S.A., Inc. has optimized its production processes to achieve exceptional efficiency and quality.

The company's operational excellence is evident in its commitment to streamlining processes, reducing lead times, and enhancing overall productivity. Through the use of innovative manufacturing techniques and a relentless pursuit of efficiency, Toyota has set the benchmark for operational excellence in the automotive industry.

The company's production processes are meticulously designed to ensure that every aspect of vehicle manufacturing is optimized for efficiency and quality. From just-in-time production to rigorous quality control measures, Toyota Motor Manufacturing, U.S.A., Inc. has established itself as a leader in operational excellence within the automotive sector.

Lean Manufacturing Principles

With a focus on operational efficiency and continuous improvement, the implementation of lean manufacturing principles has been pivotal in Toyota Motor Manufacturing, U.S.A., Inc.'s pursuit of exceptional efficiency and quality. Lean principles, derived from the Toyota Production System, emphasize the elimination of waste to streamline operations. The core tenets of lean manufacturing include identifying and reducing eight types of waste: overproduction, waiting, transportation, unnecessary motion, over-processing, excess inventory, defects, and underutilized skills.

By systematically addressing these sources of waste, Toyota has been able to optimize production processes, reduce costs, and improve product quality.

Toyota's commitment to waste reduction through lean principles has led to significant improvements in operational efficiency. By eliminating non-value-adding activities and optimizing workflows, Toyota has been able to enhance productivity and responsiveness to customer demand. Moreover, the focus on continuous improvement embedded within lean principles has enabled Toyota to foster a culture of innovation and adaptability, ensuring that the company remains at the forefront of manufacturing excellence.

Through the application of lean manufacturing principles, Toyota Motor Manufacturing, U.S.A., Inc. has established itself as a benchmark for operational excellence within the automotive industry.

Just-in-Time Production System

The Just-in-Time production system is a manufacturing strategy that aims to minimize inventory levels and production lead times by synchronizing production with customer demand. This approach helps in reducing waste, optimizing efficiency, and enhancing overall productivity. One of the key components of the Just-in-Time system is the concept of just in time inventory, which involves receiving goods only as they are needed in the production process, thereby minimizing inventory holding costs and waste.

Total Quality Management at TMM

Building upon the principles of just-in-time production, the Total Quality Management (TQM) system at TMM emphasizes a comprehensive approach to quality control and continuous improvement throughout the manufacturing process.

TQM at TMM integrates various quality control techniques to ensure that defects are minimized or eliminated. This includes the extensive use of tools such as statistical process control, quality function deployment, and Six Sigma methodologies.

Statistical process control enables TMM to monitor and control the production process through statistical analysis, ensuring that any variations that could lead to defects are identified and addressed promptly.

Quality function deployment is utilized to translate customer requirements into specific production requirements, aligning the entire manufacturing process with customer needs and expectations.

Additionally, TMM employs Six Sigma methodologies to systematically improve processes by identifying and removing causes of defects and minimizing variability in manufacturing and business processes.

These techniques are supported by a culture of continuous improvement, empowering employees at all levels to engage in problem-solving and contribute to TQM efforts, ultimately driving operational excellence and customer satisfaction.

Continuous Improvement and Kaizen Mindset

Emphasizing a culture of continuous improvement and a Kaizen mindset, Toyota Motor Manufacturing, U.S.A., Inc. (TMM) instills a relentless commitment to incremental enhancements and efficiency gains across its operations. This approach enables TMM to continuously improve its processes, products, and overall performance, driving sustainable productivity enhancement.

Key aspects of TMM's continuous improvement and Kaizen mindset include:

• Employee Involvement: TMM actively engages employees at all levels to identify opportunities for improvement, leveraging their valuable insights and frontline experience to drive meaningful enhancements in processes and operations.
• Data-Driven Decision Making: The company relies on data analysis and performance metrics to identify areas for improvement, facilitating informed decision-making and targeted interventions to enhance productivity and operational efficiency.
• Iterative Process Refinement: TMM embraces a philosophy of iterative refinement, continuously seeking small, incremental improvements in every aspect of its operations, from manufacturing processes to supply chain management, to achieve sustained productivity gains.

This relentless pursuit of continuous improvement and the ingrained Kaizen mindset enables TMM to adapt to evolving market demands, optimize resource utilization, and maintain a competitive edge in the automotive manufacturing industry.

In conclusion, the case study of Toyota Motor Manufacturing, U.S.A., Inc. highlights the successful implementation of lean manufacturing principles, just-in-time production system, total quality management, and continuous improvement.

The company's commitment to operational excellence and the kaizen mindset has allowed it to achieve high levels of efficiency and quality in its production processes.

Toyota's approach serves as a symbol of the power of continuous improvement and operational excellence in driving success and competitiveness in the automotive industry.

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Manufacturing

Toyota’s manufacturing facilities are the heart of all we do. It’s where our design, engineering, research and development are realized.

Toyota’s manufacturing facilities are the heart of all we do

 Located throughout North America are thousands of Toyota’s highly skilled and dedicated production and support employees producing component parts and assembling vehicles, all with precision, innovative focus and a customer-first mindset.

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Toyota Motor Manufacturing, Texas (TMMTX)

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Our North American operations reach far and wide. Click below to enter our interactive guide to learn more about how we’re working together across the U.S. A fast facts sheet is also available for download below.

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This is where beauty meets brains. At our Calty Design Research facilities in Ann Arbor, Oakland and Newport Beach, some of the most innovative minds in the automotive industry are creating bold and innovative exterior and interior designs for everything from cutting-edge Lexus concept vehicles like the 2012 Lexus LF-LC to our halo 2020 Toyota Supra.

While the Ann Arbor, Michigan design studio works closely together with engineers at the Toyota Technical Center on North American production trucks and cars like the rugged 2016 Tacoma and the all-new 2021 Sienna, the California’s Newport Beach studio works on advanced and experimental designs such as the exciting 2014 FT-1, the futuristic 2017 Concept-i and the expressive 2018 Lexus LF-1 Limitless. The Oakland, California studio called the Toyota Innovation Hub focuses on improving the human mobility experience. Calty Design Research has contributed to the design of 55 production models – from the 1978 Celica to the 1997 Prius and on to the 2021 Sienna. With more than 100 team members and a $7.9 million investment, Calty designers have helped to create over 125 production, concept and NASCAR vehicles.

Where technology meets passion

For  50 years, Toyota Motor North America Research and Development (TMNA  R&D),  has led engineering for several of the best-selling Toyota vehicles on U.S. roads. Headquartered in York Township, Michigan, TMNA R&D  is now creating both next-generation vehicles and new and advanced mobility concepts that can better move people, goods and information. Toyota’s innovation has produced more patents from the United States Patent and Trademark Office than any other automaker for the past 8 years (2,753 in 2021). TMNA R&D is also pursuing Toyota’s mission to “Produce Happiness for All” by making life safer, easier and more enjoyable. Globally, Toyota spends approximately $1 million per hour on R&D to ensure that Toyota rapidly and continuously develops cutting-edge, high-quality, and appealing vehicles.

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The heart of all we do

We're always looking for ways to do things better, and that begins with engineering and manufacturing. Throughout North America, tens of thousands of our team members continually strive to improve not just our cars but everything we do. The reason? Our customers are counting on it.

Driving success since 1957

Based in Plano, Texas, Toyota Motor Sales, U.S.A. Inc. (TMS) supports nearly 1,500 Toyota and Lexus dealerships in the U.S., ensuring that the needs of both driver and dealer are accommodated throughout the sales process.

Every vehicle sold in the U.S. depends upon this extensive network of dedicated professionals who align sales and marketing resources for our dealers nationwide.

With our ten regional offices and two private distributors across the U.S., we’ve strengthened and localized our operations so that we can make decisions closer to our customers and respond faster than ever before.

Helping millions of people drive our quality vehicles home

As our finance arm, Toyota Financial Services (TFS) has helped millions of people get to a very good place: into the driver’s seat of one of our vehicles. Working with participating Toyota dealers, TFS offers a full range of lease, purchase and protection plans, and, of course, the friendly, attentive service our customers deserve. Headquartered in Plano, Texas, TFS serves customers and dealers with 3,300 associates among three customer service centers, three regional offices and 30 dealer sales and service offices throughout America. 3

Dedicated to helping you go places

We’re proud of our dealer teams working at nearly 1,500 Toyota and Lexus dealerships across North America. As professionals, they work hard to help their customers have the most satisfying, most reliable and enjoyable experience possible. As human beings, they work to help their environment, their communities and people in need. 3

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• 0 . Includes all dealers and suppliers.
• 1 . Data as of 1/31/23.
• 2 . Represents "Outside-Company-Time" for CY 2020.
• 3 . All data as of December 2021, except where noted.
• 4 . Toyota vehicles and components assembled using U.S. and globally sourced parts (CYE2022).
• 5 . Parts, materials and components (CY2021). Goods and Services (CY2021).
• 6 . Represents direct dealer and Toyota-dedicated supplier employees (CYE2021).
• 7 . Includes U.S. (not HI) and Puerto Rico.
• 8 . As of CYE2023.
• 9 . Includes direct, dealer and supplier employees and jobs created through their spending.
• 10 . All data as of December 31, 2021, except where noted. All figures are rounded and reported as U.S. dollars, except where noted. State and location investment figures are based on different parameters; therefore, figures may vary.
• 11 . CY 2020.
• 12 . Cumulative to Date.
• 13 . As of December 31, 2020. May represent more than one location. Canada dealer totals include Lexus and Toyota dealers.
• 14 . Represents only a selection of parts purchased.
• 15 . As of August 2023.
• 16 . Figure is projected.
• 17 . As part of the brand transition beginning in August 2016, model year 2019 Scion vehicles will be rebadged as Toyotas.
• 18 . Based on Toyota data. Includes direct employees and dealer employees.
• 19 . Shown in U.S. dollars to reflect investment from US based operations of TEMA.
• 20 . As of CYE2021.
• 21 . Including our joint venture plant in Alabama.
• 22 . 2015 Center for Automotive Research Study. Includes direct, dealer and supplier employees, and jobs created through their spending.
• 23 . Employment and Investment are reflective of the combined TMMMO and TMMTN numbers.
• 24 . Data is CYTD as of 2/6/23.
• 25 . Data is CYTD as of 1/31/23.
• 26 . As of March 1, 2022. Includes on-site suppliers.

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Toyota Motor Manufacturing, U.S.A., Inc.

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Product Description

Publication Date: September 08, 1992

Source: Harvard Business School

On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy. This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.

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Question: Case STudy - Toyota Motor Manufacturing, U.S.A., Inc.(HAVARD BUSINESS PUBLICATION EDUCATION ) 1. The case synoposis (a brief summary of the case background and key issues) 2. What are the possible causes of the seat problem? What is the real problem facing Doug Friesen? 3. What are the key elements of TPS? Where, if at all, does the current routine for

Case STudy - Toyota Motor Manufacturing, U.S.A., Inc.(HAVARD BUSINESS PUBLICATION EDUCATION )

1. The case synoposis (a brief summary of the case background and key issues)

2. What are the possible causes of the seat problem? What is the real problem facing Doug Friesen?

3. What are the key elements of TPS? Where, if at all, does the current routine for handling defective seats differ from the principles of TPS?

4. As Doug Friesen, what would you do to address the seat problem? Where would you focus your attention and solution efforts?

The case synopsis: The case study revolves around Toyota Motor Manufacturing, U.S.A., Inc. and highli...

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TOYOTA MOTOR MANUFACTURING, U.S.A., Inc. Harvard Case Solution & Analysis

Home >> Management Case Studies >> TOYOTA MOTOR MANUFACTURING, U.S.A., Inc.

1. What are the principal elements of the Toyota Production System? What capabilities must an organization possess in order to implement TPS effectively?

The Toyota production system is comprised of two main guiding principal elements that will prove helpful in the facilitation of critical processes. The first principal element that was of great importance in Toyota production system was the adoption of Just in time approach under which the cars were only  produced at the time when they were needed and the material that has to be used was also specified in this process in order to avoid any problems with regards to wastage.

Moreover, this principle also focused on the wastage that was related to the transportation as well as the wastage from production. Despite this, the second most important principal element of Toyota production system is Jidoka which is mainly focused over taking care of the quality at the source before the product has been delivered to the customers.

In addition, this is among the major JIT principles because it entails the correction as well as the identification of hurdles at the time of production in order to avoid the loss of customers and revenues. Jidoka also includes the quality control and inspection of the manufacturing process and the responsibility with regards to quality is placed on everyone inside the organization.

Furthermore, in order to implement TPS effectively an organization will have to maintain strong and long lasting relations with its suppliers because under the JIT approach the production only started at the time when the customer places an order. Hence, after the placement of an order an organization should have the capability to have a backup at the organization in order to avoid any problems with regards to the loss of sales. It should also possess the latest technology and an experienced staff at the organization in order to retain the level of quality that they were able to maintain for so long. On the other hand, an organization must have the capability to have sufficient amount of financial resources in order to carry out manufacturing effectively.

2. As Doug Friesen, what would you do to address the seat problem? What options exist? Where would you focus your attention and solution efforts? What would you recommend? Why?

First of all the point that is to be addressed is to find an actual reason behind the existence of the problem. Hence, by taking account of the defect data from exhibit 8 which involves the identification of 5 seat defects that is constituted of almost 87% of the rejected seats from 14 th April up to 30 th April.

So Doug Friesen should undertake the option of gathering the cross-functional team of KFS and TMM employees from several disciplines in order to address the seat problem as well as ascertaining the number of And on pulls that was related to the rear seat selection on the right and left side that is almost more than 3 to 6 times higher in some of the cases.

Moreover, after identifying the problematic areas like material flow, seat bolsters broken and the missing part as well as the seat back broken will prove helpful in addressing these issues. Therefore, Doug Friesen will have to keep his attention and the solution efforts on the rear seat installation station as compared to the front seat installation and this may also be linked to the prospective team members who are rotated into the area at the start of April.However, the reason behind recommending this approach is based upon the determination of the root cause of the defect that took place because this will be the only way which will prove beneficial for accurately addressing these issues so they do not occur again in the future. TOYOTA MOTOR MANUFACTURING, U.S.A., Inc. Case Solution

3. Can an operating system like TPS lead to sustainable competitive advantage? How easy or hard would it be for another organization to copy TPS?

Yes, the operating system like Toyota production system can lead to the sustainable competitive advantage because, beyond merely the reduction of costs and bringing improvements in the efficiency this production technique includes the introduction of systems as well as the development of skills with the staff that will provide support with regards to the changes in the work place.

Hence, if Toyota will be able to maintain its performance in the long term and can keep its customers satisfied, then it can rule over the market by being a market leader.Despite this, the imitation of the Toyota production system may or may not be easy for another organization which is operating in the same industry sector...............................

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