toyota- hbs case
TRANSCRIPT
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welcomeToyota Motor Manufacturing; USA Inc.
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Group 2• Dipawita Dey 120305• Priyanka Hui Chowdhury 120316• Nusrat Jahan 120329
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Content• Company Overview• Case summary• Identified problem• Consequence of problem• Causes of the problem• Solution of the problem• Alternative recommendations
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Company overview
A Japanese automobiles manufacturer which was founded by Kiichiro Toyoda in 1937.
Produces about 200-millionth vehicles under 5 brands: Toyota Hino Lexus Ranz Scion
The largest listed company in Japan by market capitalization
The eleventh largest company in the world by revenue.
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Case summary Toyota’s Georgetown, Kentucky, plant was established with the
aim of providing flawless & high quality at low cost in 1985. Toyota Production system (TPS) aimed at cost reduction by
thoroughly eliminating waste. TPS maintained two principles for facilitating the critical process:
The principle of Just-In-Time (JIT) production. The principle of jidoka.
They followed Kaizen (continuous improvement) in pursuing production system’s goals continuously
In Georgetown, assembly operation were performed along 353 stations consisting of several connected line segments.
Every station on the assembly line embodied jidoka & kaizen tools.
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Case summary • A standardized work chart was posted to Show -• The cycle time of each work station• The sequence of work tasks• The timing to perform them within one cycle
• The mission of the production control (PC) department to feed necessary parts into TMM operation just-in-time.• The planning process of PC reflected JIT in two ways:• The practice of hejinuka (balancing the total order).• The use of kanban card (related with part production).
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Case summary • TMM’s quality control (QC) department pursued a mandatory
routine of tough quality standard.• QC served two major functions :
• Providing instant feedback to direct operations.• Preventing problems from occurring in the first place.
• TMM’s purchasing departments concentrated on managing cost over the long haul. • In the Georgetown’s plant TMM found some severe problems which
they wanted to work out:• Less productivity.• Low line utilization rate than projected target.• The seat problem.
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Identified problem Toyota Motor Manufacturing
(TMM) face problem for defected seats in Camry’s at their Georgetown plant
Kenturcky Framed Seat (KFS) was TMM’s only one seat supplier
KFS had problem in their seat manufacturing with missing parts
Seat problem increased with the increase demands by introducing various car models
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Consequences of the problem
• Defective product with defective seats• Production plan failed to meet target • Run ratio dropped 95% to 85% (45 less cars in per shift)• Offline production increased• Production cost increased
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Causes of the problem• TMM did not followed TPS philosophy but only matched
their tools• KFS seats matched the TMM capacity but did not
implemented TPS philosophy in production• TMM identified problems and tagged them in storage for
rework• TMM did not provide real time solution rather increased
work load for rework
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Solutions of the problem
• TMM need to participate the KFS QC department• Placing own personnel• Providing production guideline
• Defective items need to resolve at real time in assembly line • Review the seat designs for new models
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Alternative Recommendations
• Close relation should be maintained between KFS, TMM and TMC • TMM should be inspected all seats properly in KSP before they are shipped It will encourage them --------
To improve qualityTo remove problematic seats before they are shipped
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Alternative Recommendations
• TMM should share quality review report with KSFIt will make the firm able to analyze areas with
fundamental defect problems• TPS integration will benefit the Toyota supplier network• TMM should recommend a reduction in the variety of seats with TMC
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Questions ???