Operations Improvement Plan Implementation

Executive Summary

Mr. Kiichiro Toyoda founded Toyota Motor Corporation in 1933 under a division of Toyoda Automatic Loom Works. The company introduced its first passenger car, the Toyota AA in 1936. It wasn’t until 1957 that Toyota Motor Sales, Inc (TMS) was established as its first sales, marketing, and distribution subsidiary in the United States. Greto et al (2010) Toyota was built upon traditional standards, values and long lasting philosophies that business scholars praised. Its massive expansion into global markets and its ruthless pursuit of excellence began to cause a decline in its infrastructure. Toyota began to overextend its operations and the humble beginnings upon which it had been founded became a back drop to new ideals and quests.

The Toyota Way was adopted as the “way of life” for Toyota. Its beliefs and principles pushed employees to strive for perfection from the assembly line to the boardroom. This Operations Improvement Plan will attempt to show how the abandonment of The Toyota Way lead to catastrophic financial loses, poor public relations and unfounded damages to both consumers and Toyota. In defining the problem, its causes and its improvement processes one will be made aware of exactly how Toyota diabolically opposed its own views. The Toyota Way was to highlight problems instead of concealing them. Toyota did not foster a culture that instilled a self critical environment that cultivated relentless, persistent improvement. Instead they underhandedly master minded a web of deceit by defrauding the public while reaching fiscal benchmarks that were unmatched. Greto et al (2010)

The fraud and cover up came with a price that was far too steep for even the auto giant Toyota to undertake. When the Japanese leadership chose to act without prudence in placing production and profitability before quality and safety human lives were lost. The recall crisis, unprecedented consumer complaints, lawsuits and astronomical civil...