Toyota

HERGUAN UNIVERSITY |

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

Case Writeup |

Prepared ForProfessor Fernando GarciaPrepared by |

Munjal Adhvaryu |

4/7/2014 |

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Executive Summary:

Given that Toyota was walking such a precarious line with their production, they had absolutely no tolerance for quality errors – they couldn’t afford to. From this, and from the supplier relationships forged while establishing JIT, Toyota developed the fanatical quality control system that they are now famous for today. Each of the TPS initiatives of lean manufacturing, waste reduction, and quality improvement were born out of the necessity to produce in the demanding environment of post-war Japan. After its production began, Toyota Motors Manufacturing (TMM) faced increasing problems with its seat supply.  TMM’s single seat supplier, Kentucky Framed Seat (KFS), was responsible for the majority of the problems with material flaws and missing parts as the major encountered defects.  These problems were increasingly occurring with an increase in varieties of and demand for the seats.  Toyota addressed these problems offline; however, this was 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.

Background:

In post war Japan, resources were scarce and the auto industry faced a number of problems. The domestic market was tiny and demanded a wide range of vehicles, the Japanese work force was not willing to be treated as a variable cost or as interchangeable parts, the Japanese economy was starved for capital and foreign exchange, and the outside world was full of huge motor-vehicle producers, ready to defend their markets. Toyota needed a system that could be flexible and scalable. They could not afford to have one production line dedicated to a single line of cars – they only had a few lines...