Read the case study and answer the question is paragraphs form (no plagiarism al
ID: 353422 • Letter: R
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Read the case study and answer the question is paragraphs form (no plagiarism allowed). Details explaination needed and the answer should be at least 200 in length.1) Do you think that the coorperation that Toyota has achieved with its supplier and employees in Japan can be replicated in its overseas manufacturing operations? Explain (5marks)
Case 16 Toyota In 2013: Lean Production and the Rise of the World's Largest Automobile Manufacturer Charles W. L. Hill the U.S. National Highway Transport & Safety Agency found no electronic fault with Toyota's "drive-by-wire" The growth of Toyota has been one of the great success throttle system, which was initially blamed for the issue. stories of Japanese industry during the last half cen and instead attibuted the problem to mechanical causes INTRODUCTION (including pedals caught under floor mats), and "driver tury. In 1947, the manufacturer producing around 100,000 vehicles a year. error." Irrespecti company was a little-known domestic ive of the failure to identify a clear In 2012 Toyota sold 9.4 million light vehicles globally, in 2012 Toyota agreed to pay $1.1 billion to settle a class making it the largest automobile manufacturer in the action lawsuit related to the issue. More importantly per haps, Toyota's legendary reputation for product quality world ahead of Volkswagen with 9.1 million units sold and GM with 7.7 million units. had taken a major knock. The question for Toyota For all of its success, however, the last few years had management now, was how could they reestablished the been challenging for Toyota. As a consequence of the cpany as the undisputed leader in quality, and how could they fend of stronger competitors in a rapidly global financial crisis, demand for vehicles fell sharply in 2008 and 2009, pushing most of the world's major au tomobile companies into the red. GM, one of Toyota's main global rivals, had to file for Chapter 11 bankruptcy globalizing marketplace? 200s. However, the GM that emenged fromTHEORIGINS OF TOYOTA er 11 2 years later was a leaner and more viable competitor to Toyota. At the same time, the South Korean The original idea behind the founding of the Toyota company, Hyundai-Kia, emerged from the financial crisis Motor Company came from the fertile mind of Toyoda in a strong position as the 4th largest automobile manu Sakichi. The son of a carpenter, Sakichi was an entre- facturer in the world and the most profitable. Volkswagen preneur and inventor whose primary interest lay in the too, has strengthening its position and closing in on textile industry, but he had been intrigued by automo- biles since a visit to the United States in 1910. Sakichi's Not only did Toyota face stronger global rivals than principal achievement was the invention of an automatic hitherto, its own position was damaged when a series of loom that held out the promise of being able to lower the product recalls, mostly in the United States, tarnished its costs of weaving high-quality cloth. In 1926 Sakichi set brand and corporate image. The most infamous of these up Toyoda Automatic Loom to manufacture this prod- was the "sticky accelerator pedal" issue that allegedly led uct. In 1930 Sakichi sold the patent rights to a British Toyota in terms of sales volume. to sudden uncontrolled vehicle acceleration and in some textile concern. Platt Brothers, for about 1 million yen. cases serious accidents. Toyota recalled some 9 million vehicles to in 2009-2010, the largest product recall in in- dustry history, and temporarily suspended some sales while Foster School of Business, University of Washington, Seattle. WA it tried to identify and solve the issue. An investigation by 98185, May 2013
Explanation / Answer
The Japanese model of establishing long term relationship between the suppliers and Toyota was the foundation of the Toyota’s production system and the establishment of ecosystem of suppliers wherein multiple parts were procured from many suppliers who are located near the Toyota plant and had excellent quality output at low costs. Also in terms of employee relationship, Toyota had inculcated the concept of long term employee relationship and more or less stable employment which encouraged the employee to focus on improving quality and reducing defects rather than just focussing on productivity.
To replicate similar model in others parts of the world, it would be difficult for the Toyota because of the following reasons:
Thus it may be difficult for Toyota to replicate its success story outside Japan but it is still possible with sufficient amount of capital investment and training to all the external stakeholders.
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