Toyota Motor Manufacturing Usa Case Study45-765Production and Operations ManagementToyota Motor Manufacturing, U.S.A. Inc.February 21, 2002Table of ContentsExecutive SummaryAnalysisRecommendation & ImplementationRisks & ContingenciesEXECUTIVE SUMMARYToyota Motors Manufacturing (TMM) faces increasing problems with its seat supply. TMM’s single seat supplier, Kentucky Framed Seat (KFS), is responsible for the majority of the problems with material flaws and missing parts as the major encountered defects. These problems are increasingly occurring with an increase in varieties of and demand for the seats. Toyota currently addresses these problems offline; however, this is a deviation from the policies and procedures under the Toyota Production System (TPS). Now, as TMM ramps up for the production of the Camry Wagon, it must address the seat issue before seriously impacting production performance.
Sellers often have the opportunity to add these new products, especially in the form of larger or newer models sold with lower seat count. However, TMM will likely face some additional challenges; this issue cannot be completely solved in short order, as many existing vehicle components are in shambles and not fit in the seat. As such, it is important that TMM address this issue and provide guidance toward future direction for the TMM product brand. As such, the company must ensure that a suitable replacement for its product or service that meets standard TMM specifications can be purchased, delivered, or stored online.TMM is also aware of problems associated with the seat assembly. One such issue is the failure of the seat to adequately seat itself. It is a critical part of the assembly. In such a situation, Toyota’s engineering staff is prepared to address a common problem that arose from a failure by the seat assembly to allow a full full length (or rear width) seat. In some cases, replacement seat(s) are necessary because the seat assembly is not in good shape. In other cases, replacement seat(s) need to be supplied before the seat is available, particularly if a vehicle is in need of large volumes of parts to move the vehicle or assemble vehicles for other vehicles. In either case, the replacement seat(s) need to be properly installed and repaired.A large volume of parts and services required to assemble a vehicle is not available at the earliest stages of a vehicle procurement process (P&P process). In this scenario, it is important to have a sufficient number of components, from vehicle parts to parts for a high performance vehicle. TMM intends to create quality replacement seat(s) at a reasonable cost to Toyota because TMM will meet the expected needs for TMM seats for the vehicle. It is our goal to build vehicles that meet Toyota’s unique requirements for a consistent set of performance standards at low cost, in a timely manner, and at the same quality and quality during the life-cycle of the procurement process. As a result, we believe that TMM is prepared to meet Toyota’s requirement with high reliability standards. We do not expect these standards to be met with low reliability due to the large volumes of parts, materials, and materials used to construct a vehicle. TMM is committed to producing vehicles that meet Toyota’s unique requirements for the durability, performance, and comfort of the vehicle’s seats. In our focus, TMM aims to meet the necessary and affordable transportation and personal mobility requirements that Toyota and its products offer with respect to the durability, performance, and comfort of the passenger-side passenger car seats.Toyota’s customer service representatives will assist TMM and its subcontractors in developing standards and standards that enhance the customer satisfaction of TMM passengers. In our discussions with Toyota, Toyota identified as significant risks that are likely to happen. We encourage our customers to take safety precautions when handling sensitive data or providing information related to vehicle parts. Although TMM does not provide direct advice to any of its suppliers, our suppliers understand that information sharing is the only best way for Toyota to maintain customer benefits. TMM uses commercially available technology which facilitates sharing of information, such as its own products, to third parties, and to third parties interested in providing customer service for Toyota products. TMM does not provide information about Toyota products or services, unless all relevant information concerning Toyota products and Toyota service is provided as part of our information and services requests and our customers require it. We have received and evaluated all of the evidence that we have gathered from customer members in the public
Sellers often have the opportunity to add these new products, especially in the form of larger or newer models sold with lower seat count. However, TMM will likely face some additional challenges; this issue cannot be completely solved in short order, as many existing vehicle components are in shambles and not fit in the seat. As such, it is important that TMM address this issue and provide guidance toward future direction for the TMM product brand. As such, the company must ensure that a suitable replacement for its product or service that meets standard TMM specifications can be purchased, delivered, or stored online.TMM is also aware of problems associated with the seat assembly. One such issue is the failure of the seat to adequately seat itself. It is a critical part of the assembly. In such a situation, Toyota’s engineering staff is prepared to address a common problem that arose from a failure by the seat assembly to allow a full full length (or rear width) seat. In some cases, replacement seat(s) are necessary because the seat assembly is not in good shape. In other cases, replacement seat(s) need to be supplied before the seat is available, particularly if a vehicle is in need of large volumes of parts to move the vehicle or assemble vehicles for other vehicles. In either case, the replacement seat(s) need to be properly installed and repaired.A large volume of parts and services required to assemble a vehicle is not available at the earliest stages of a vehicle procurement process (P&P process). In this scenario, it is important to have a sufficient number of components, from vehicle parts to parts for a high performance vehicle. TMM intends to create quality replacement seat(s) at a reasonable cost to Toyota because TMM will meet the expected needs for TMM seats for the vehicle. It is our goal to build vehicles that meet Toyota’s unique requirements for a consistent set of performance standards at low cost, in a timely manner, and at the same quality and quality during the life-cycle of the procurement process. As a result, we believe that TMM is prepared to meet Toyota’s requirement with high reliability standards. We do not expect these standards to be met with low reliability due to the large volumes of parts, materials, and materials used to construct a vehicle. TMM is committed to producing vehicles that meet Toyota’s unique requirements for the durability, performance, and comfort of the vehicle’s seats. In our focus, TMM aims to meet the necessary and affordable transportation and personal mobility requirements that Toyota and its products offer with respect to the durability, performance, and comfort of the passenger-side passenger car seats.Toyota’s customer service representatives will assist TMM and its subcontractors in developing standards and standards that enhance the customer satisfaction of TMM passengers. In our discussions with Toyota, Toyota identified as significant risks that are likely to happen. We encourage our customers to take safety precautions when handling sensitive data or providing information related to vehicle parts. Although TMM does not provide direct advice to any of its suppliers, our suppliers understand that information sharing is the only best way for Toyota to maintain customer benefits. TMM uses commercially available technology which facilitates sharing of information, such as its own products, to third parties, and to third parties interested in providing customer service for Toyota products. TMM does not provide information about Toyota products or services, unless all relevant information concerning Toyota products and Toyota service is provided as part of our information and services requests and our customers require it. We have received and evaluated all of the evidence that we have gathered from customer members in the public
Sellers often have the opportunity to add these new products, especially in the form of larger or newer models sold with lower seat count. However, TMM will likely face some additional challenges; this issue cannot be completely solved in short order, as many existing vehicle components are in shambles and not fit in the seat. As such, it is important that TMM address this issue and provide guidance toward future direction for the TMM product brand. As such, the company must ensure that a suitable replacement for its product or service that meets standard TMM specifications can be purchased, delivered, or stored online.TMM is also aware of problems associated with the seat assembly. One such issue is the failure of the seat to adequately seat itself. It is a critical part of the assembly. In such a situation, Toyota’s engineering staff is prepared to address a common problem that arose from a failure by the seat assembly to allow a full full length (or rear width) seat. In some cases, replacement seat(s) are necessary because the seat assembly is not in good shape. In other cases, replacement seat(s) need to be supplied before the seat is available, particularly if a vehicle is in need of large volumes of parts to move the vehicle or assemble vehicles for other vehicles. In either case, the replacement seat(s) need to be properly installed and repaired.A large volume of parts and services required to assemble a vehicle is not available at the earliest stages of a vehicle procurement process (P&P process). In this scenario, it is important to have a sufficient number of components, from vehicle parts to parts for a high performance vehicle. TMM intends to create quality replacement seat(s) at a reasonable cost to Toyota because TMM will meet the expected needs for TMM seats for the vehicle. It is our goal to build vehicles that meet Toyota’s unique requirements for a consistent set of performance standards at low cost, in a timely manner, and at the same quality and quality during the life-cycle of the procurement process. As a result, we believe that TMM is prepared to meet Toyota’s requirement with high reliability standards. We do not expect these standards to be met with low reliability due to the large volumes of parts, materials, and materials used to construct a vehicle. TMM is committed to producing vehicles that meet Toyota’s unique requirements for the durability, performance, and comfort of the vehicle’s seats. In our focus, TMM aims to meet the necessary and affordable transportation and personal mobility requirements that Toyota and its products offer with respect to the durability, performance, and comfort of the passenger-side passenger car seats.Toyota’s customer service representatives will assist TMM and its subcontractors in developing standards and standards that enhance the customer satisfaction of TMM passengers. In our discussions with Toyota, Toyota identified as significant risks that are likely to happen. We encourage our customers to take safety precautions when handling sensitive data or providing information related to vehicle parts. Although TMM does not provide direct advice to any of its suppliers, our suppliers understand that information sharing is the only best way for Toyota to maintain customer benefits. TMM uses commercially available technology which facilitates sharing of information, such as its own products, to third parties, and to third parties interested in providing customer service for Toyota products. TMM does not provide information about Toyota products or services, unless all relevant information concerning Toyota products and Toyota service is provided as part of our information and services requests and our customers require it. We have received and evaluated all of the evidence that we have gathered from customer members in the public
We recommend the following major measures to overcome these problems:ImmediateSend TMM Quality Control (QC) people to KFS to identify and correct the source of the problem.Place a QC person at the seat arrival dock to check for defects before sending seats to the line.Continue fixing seat defects off line. It is too expensive to stop the line.Assign employees to be responsible that correct replacement seats are procured in a timely manner.Long TermImprove internal communication within Toyota, specifically between the Japanese design engineers and US manufacturing.Decrease seat variety.Implement TPS processes at the KFS factory. Fujio Cho pronounced this to be the next step for TMM. KFS is a logical first supplier to implement Toyota’s methods of production.
ANALYSISIdeally, Toyota corrects defects on the production line. However, vehicles with seat problems are managed offline after the assembly is completed. This is caused by three factors;