FREE ESSAY ON TOYOTA

TOYOTA

Let's start with a Japanese introduction...
JIT: Short, for just in time, JIT is manufacturing process aimed at getting the right
quantity of quality parts to the assembly line at the exact time they are needed for
production.
KAIZEN: The Japanese word for "improvement", kaizen techniques target and eliminate waste
in production processes.
KANBAN: The Japanese term for "sign", kanban uses standard lot sizes and often,
returnable containers with a card attached. These kanban cards, which are pulled as
assembly-line workers use parts, alert suppliers that part levels need to be replenished.

POKA-YOKE: Loosely translated from Japanese as "mistake-proof", this process involves
establishing standardized work procedures, such as assembly activities, to prevent errors
from occurring.
THE FIVE S's: Representing sort, stabilize, shine and sustain, the five S's aim to bring
order and conformity to the plant floor.
1.) As Doug Friesen, what would you do to address the seat problem? Where would you focus
your attention and solution efforts?
In April 1992, Toyota Motor Manufacturing, USA (TMM) had problems in the run ration of
the plant. The run ration was down to 85% from 95%. It meant a shortfall of 45 cars per
shift, which had to be made up with overtime. Consequently, too many cars needed off-line
operations of one type or another before they could go on to shipping. The main source of
the problem was the seats defects in the cars. 
In case of the cars with seat problems, the car went through the assembly line with the
defective seat in it. Then the car was driven to the Code 1 clinic area to see if the
problem was correctable there. If the problem called for a replacement seat, the car was
moved to the overflow parking area where the car waited for new seat to be delivered from
the supplier. 
This routine is in fact an exception given the quality control process in TMM. In TMM,
Toyota Production System (TPS) principles would make any production problems instantly
self-evident and stop producing whenever problems were detected. 
In case of the defective seats, the reasons for exception were:
a) The final assembly people already knew of the problem.
b) It was possible to finish building the car without seat assemblies
c) It was felt that stopping the line was too expensive given how long it took to obtain
the replacement seat.
The seat set was the most expensive of all the purchased parts. TMM's sole seat supplier
was Kentucky Framed Seat (KFS), which teamed up well with TMM's operations until TMM
proliferated its products, the seat styles increasing from 3 styles with 4 colors up to
18 styles. Even though the supplier tried to adapt the cars with seat defects became the
major concern of the assembly plant in 1992. 
In fact, the manager of the assembly, Dough Friesen should focus mainly on the legitimacy
of the exception in the case of the defective seats and the coordination between the
plant and the seat supplier. 
? It is reported that KFS responded with a special delivery of replacements twice a week.
But still, there were cars waiting for the new seats for more than 4 days. 
? Occasional incidents of cross threading, that is, when a team member shot a bolt at an
angle were fixed easily by team leaders. 
? There were very few incidents, which could damage the seat covering with hand tools.
? The hook breakage problem reported by one of the group leaders might also derivate
assembly process.
Consequently, the manager of the assembly should first identify those processes needing
improvement. Second, he should gather more data about the problems by interviewing the
personnel in details. Finally, he should analyze this data in order to figure out gaps
between the standards and the current outputs.
2.) What options exist? What would you recommend? Why?
We note that the signs of problems appear after TMM proliferated the number of seat
styles from 3 to 18. Even though KFS operated as a part of the assembly line, all the
seat parts being detected through the line from the beginning to the end, the cars have
seat defects. In fact, it is not reported that the seats are delivered defective to the
plant. The seats are damaged during the assembly. 
Hence, one of the options that the manager has is to revise seat assembly team. 
Another issue is to redesign or improve off-line operations in case the manager decides
to continue correcting seats off-line. 
Also, the manager should think through the overwork that the plant has after TMM became
the sole source of the Camry wagons fro the first time for Toyota worldwide. 
? Revision of the seats design in order to control assembly defects
? To have multi-suppliers to lighten the burden of the only supplier who works for 18
different styles
? Revision of the off-line operations in order to avoid overtime work
These are the possible recommendations that may be useful for the manager of the plant.
Since the high level of off line vehicle inventory affects negatively the sales and most
importantly the just-in-time principle of TMM. 
In addition, it is important to note that maintaining the quality in the long run is
closely dependent on the efficiency of each step of the production process. 
3.) Where, if at all, does the current routine for handling defective seats deviate from
the principles of the Toyota Production System?
The current routine for handling defective seats deviates from the two guiding principles
of TMM.
First, high level of the defective cars inventory does not apply to the just-in-time
principle. It is considered a deviation of the true production, which is hence a waste
given the Toyota Production System's principles. 
Second, the current application is against Jidoka principle, which insists on building
quality in the production process and on stopping production whenever a problem is
detected. 
Also, two strong attitudes created within the organization - stick to the facts and get
down to the root cause of the problem - are ignored. A typical discussion of a problem
would start with "let's go see it" and then converge on the five whys exercise until the
root cause was identified and determined. 
Contrarily to these principles, the plant currently tries to handle defective seats with
off-line operations. In case of the cars with seat problems, the car went through the
assembly line with the defective seat in it. Then the car was driven to the Code 1 clinic
area to see if the problem was correctable there. If the problem called for a replacement
seat, the car was moved to the overflow parking area where the car waited for new seat to
be delivered from the supplier. 
This creates the need for overtime in order to fix waiting cars. 
It is obvious that the handling is not suitable to the design of the production in the
plant. 
4.) What is the real problem facing Doug Friesen?
The real problem of the plant is the identification of the problem, which disturbs all
the production operations. It is mostly concentrated on the off-line operations, which
are not suitable to the overall design of the plant. 
He should first decide whether the problem comes from the seats and the supplier or from
the way the problem is solved through off-line operations. 
The team leaders of the plant report separately different problems such as supplier's
delay in delivering the replacement seats, occasional incidents of cross threading or the
hook breakage while seat assembly. 
In fact, all these incidents may be linked to the need of redesigning some parts of the
production since the plant is overloaded and workers suffer of overtime.
Bibliography
References
? Harvard Business School Case Study # 6-692-049: "Toyota"; Harvard Business School
Publishing, 1986