4/10/2017 WAC – Toyota Motor Manufacturing Operations and Production Management Submitted By: Syeda Shahammah Rizvi (01006 )
1985: TMC unveiled its plan to open an $800 million greenfield plant in Kentucky 1988: TMM USA began volume production on a 1,300 acre site in Georgetown 1992: TMM was expected to supply 240,000 of the all- new Camry Background Toyota is a Japanese automobile manufacturing company and is popularly known for its efficient manufacturing process. In 1985 TMC (Toyota Manufacturing Corporation) unveiled a great plan to open a $800 million greenfield plant in Kentucky, USA. This was to be the first Japanese car manufacturer in USA however expectations for the success of this plant were high. Production at the plant began in July 1988 where an annual capacity of 200,000 Camry sedans was expected. In order to trace the timeline of important events a timeline is made below highlighting important milestones. Core Competency Focus The vision at Toyota Motor Company read, “better cars for more people”, this phrase therefore laid the foundation for the companies competitive and therefore operating strategy. As highlighted in the matrix below, Toyota’s focus included Cost Efficiency and Quality Maintenance . F
Problem Identification By the year 1992, Toyota Motors Manufacturing (TMM) began to face immense problems with their car seat supply. This resulted in a growing number of cars sitting off the line with defective seats or no seats at all, thereby hampering the manufacturing process. Overtime for lost production had to be paid therefore the line was below target utilization rate. Majority of the problems with regards to material flaws and missing parts were a root cause to the issues. These reasons were contributing to majority of the encountered defects and both could be traced back to Kentucky Framed Seat (KFS). The impact of these problems further increased as a higher variety of seats were demanded, and the increasing demand of cars only added fuel to the fire. Currently these issues were being addressed offline; however, this is a deviation from the policies and procedures under the Toyota Production System (TPS). As TMM ramped up for the production of the Camry Wagon, it seemed essential to address the seat issue before seriously impacting production performance. Winning Strategies at Toyota Toyota took great pride in its TPS as it helped the manufacturer meet diverse customer preferences with flawless quality, at an affordable price and with perfect timing. In a nutshell the TPS allowed TMM to achieve its core competencies. The aim therefore of this system was to reduce cost by thoroughly eliminating waste. TPS defined “needs” and “value” from the viewpoint of the next station down the line, that is, the immediate customer.
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- Fall '17