Essay About Famous Cars And Seat Supply

Toyota Motor Manufacturing Usa Case Study
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03/17/2016Group Name: TERCourse Name:BA452/M Operations ManagementGroup Members: Tu Thi Thanh Tran       150105012 Hui Fen Chen                  150105005 Roisin Gonsalves           150105009Case Study: Toyota Motor Manufacturing, U.S.A.,Inc.Introduction Toyota Motor Corporation (TMC) is one of the most famous cars manufacturing in the world, which produces automobile with good quality and meets customers’ requirement in terms of the diversity preference with reasonable price. In 1988, Toyota Motor Manufacturing attempted to expand the business area to build cars in North America and began producing in Georgetown with a yearly capacity of 200,000 Toyota Camry Sedans. During this period, the new Camry occupied 1/3 of the total American Car market and had 17% earning before tax margin due to more than 20 % sales growth in 1992. However TMM was facing problems regarding to the seat supply and the line utilization rate was below target as increasing number of cars with defective seats or no seats in the line as well as the growing demand in varieties.Toyota Production SystemTo identify the waste in the process by two principles:           Just In Time (JIT) production                      jidokaConsistent with true production needs Otherwise: WasteValue-additionEmphasis on qualityStop producing when problems were defectedOtherwise: WasteAdvantage: Reduce cost & avoid overproductionAdvantage: Avoid further damage as the production line will stop when pulling and on cordProblems:1. Seats need to be matched with each particular car; however, stock parts cannot be used in manner time.There is an option to stop the line until the replacement seat is available that lead to the massive productivity losses. Moreover, KFS delivers seat replacements twice a day, but sometimes, they still send incorrect seat replacement. As a result, the replacement seat cannot be installed in a timely manner that leads to several four –day old vehicles in the overflow parking area.           Let’s look at the Run Ratio Changing affecting to “ Lost Cars Per Shift “. On April 27th the run ratio was down from 95% to 85%. ( 10%)Stations on conveyor line 353Team members769Average wage$17/hourOvertime $17+17×50%=25.5/hourShift duration525 minsCycle time 1.05 cars/min A line cycle time of 57 secondsProductive shift mins525-45-15×2=450Run Ratio 100%473 (1.05×450=472.5)95%  (450/473)45085% (402/473)402(0.85×473=402.05=402)Shortfall of cars Per shift450-402=48Cost per hour for overtime 769×25.5=19609.5Time required for additional car 50mins( 1.05 x 48 cars)Cost for producing for additional car 25.5/60x50x769=16341.25