1 jidoka means that a machine safely stops when the

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1. Jidoka means that a machine safely stops when the normal processing is completed. It also means that, should a quality / equipment problem arise, the machine detects the problem on its own and stops, preventing defective products from being produced. As a result, only products satisfying quality standards will be passed on to the following processes on the production line. 2. Since a machine automatically stops when processing is completed or when a problem arises and is communicated via the "Andon" (problem display board), operators can confidently continue performing work at another machine, as well as easily identify the problem's cause to prevent its recurrence. This means that each operator can be in charge of many machines, resulting in higher productivity, while continuous improvements lead to greater processing capacity. Just-in-Time — Productivity improvement — - Making only "what is needed, when it is needed, and in the amount needed!" Producing quality products efficiently through the complete elimination of waste, inconsistencies, and unreasonable requirements on the production line. In order to deliver a vehicle ordered by a customer as quickly as possible, the vehicle is efficiently built within the shortest possible period of time by adhering to the following: 1. When a vehicle order is received, a production instruction must be issued to the beginning of the vehicle production line as soon as possible. 2. The assembly line must be stocked with required number of all needed parts so that any type of ordered vehicle can be assembled. 3. The assembly line must replace the parts used by retrieving the same number of parts from the parts- producing process (the preceding process). 4. The preceding process must be stocked with small numbers of all types of parts and produce only the numbers of parts that were retrieved by an operator from the next process. 46
Measurement CURRENT PROBLEMS CONFLICTING WITH CORE VALUES - Product recalls could affect brand image: Toyota has conducted a number of product recalls in the recent past, which could affect the brand image and overall sales of the company. For instance, in 2011, Toyota recalled 111,000 models of Toyota and Lexus brands’ vehicles due to the damage to elements of the substrate and potential shutdown of the hybrid system. Further in the year, Toyota recalled 181,000 vehicles in Japan in relation to abnormal noise and oil leakage that may have resulted from slack of bolts in the sub transmission and the rear wheel differential. In addition, the company was involved in government investigations related to product recalls. For instance, in February 2012, the National Highway Traffic Safety Administration initiated a preliminary investigation of a potentially faulty power window master switch in the driver-side doors in model year 2007 Camry and RAV4 vehicles. This could also result in significant penalties, which could affect the operational margins. 11 - Declining sales in key geographic segments: Toyota witnessed a decline in its sales in key geographic segments. In FISCAL YEAR 2012, the company witnessed declining sales across

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