TOYOTA MANUFACTURING - CASE STUDY#2 TOYOTA MOTOR MANUFACTURING OPERATIONS MANAGEMENT 6100 INTRODUCTION Toyota Motor Manufacturing faces a big challenge

TOYOTA MANUFACTURING - CASE STUDY#2 TOYOTA MOTOR...

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CASE STUDY #2TOYOTA MOTOR MANUFACTURINGOPERATIONS MANAGEMENT- 6100
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INTRODUCTIONToyota Motor Manufacturing faces a big challenge with its seats installed in the plant for Camry’s in Georgetown. The seat supplier is Kentucky Framed Seat which is responsible for thismajor problem being the sole supplier for Toyota Motor Manufacturing This is because of the material flaws and parts which were missing and considered as the major encountered defects. Inaddition the problems are frequently occurring with an increase in demands for the seats. Due to this production level is decreasing, resulting in an overtime works and is considered as addressing the issue offline which is not as per company standards. PROBLEM STATEMENTMajor problem is the increase in number of defective seats for Camry’s. This results in company’s deviation from its normal production plan due to lack of planning and decision making as it doesn’t have alternatives to recover. KEY FACTORS-On April 27ththe Production Run ration dropped from 95% to 85%. -This resulted in production of less cars which were close to 45 to 50 which is a decrease in production per shift. This also resulted in overtime of workers. -The number of cars which needed offline operations increased before they went on shipping. -The production of missing cars by the staff in the overtime will cost TMM an excess amount of $16000 per shift. -This would totally come around $8.4 million per year if it has two shifts, where staff work for 5 days in a week. DECISION CRITERIA/MEASURE OF EFFECTIVENESS-Currently TMM had 353 stations with 769 employees-The wage per hour is $17.00-Overtime wage is $25.50
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-Cycle time is 1.05 cars per minute-Total shift is 525 minutes out of which production minutes are 450-Cost per hour of production overtime is $19610-Cost to produce additional cars $16215ALTERNTIVES AND ANALYSISBasically the production line is a bit complex. The defects of the cars are corrected on the
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