Lexus and Production Capacity Essay

818 Words Apr 25th, 2014 4 Pages
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Week 10 Toyota Production Team Assignment
Group Category Group Week 10
Group Name Hawks
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Team Assignment (W10TA): Planning Production for Toyota North America Lexus RX 350, Successor in 2007 to the RX 330
Photo courtesy of Toyota Motor Company Assignment Taskings Address the following four exercises: Exercise 1: Making a Critical Assessment of the Toyota Production System (TPS) Today
a. Demonstrate your team's basic understanding of the TPS by 1)defining in your team's own words any eight of the terms found athttp://www.toyotageorgetown.com/terms.asp, and 2) applying them to one or more of your team's own
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b. Using the scores from your team's weighted scoring model and working with regard to Ringo Sho and Nemawashi, make and support your recommendation for the RX 330 North American plant location - TMMC or a factory in the USA. Exercise 3: Determining Production Capacity Needed at Toyota Motor Manufacturing of Canada (TMMC)
Decision trees are another important if challenging world-class operations management method which operations managers should understand and with which other managers should be familiar.
This exercise illustrates how using a decision tree, determination of an "optimal" production capacity option can be made from among several possible capacity options based on the provided probable market demand and expected costs/payoffs of events that influence the options.
It is spring 2000, and TMMC has indeed just been chosen to produce the new Lexus RX 330 line, with the first units deliverable in 2003. Toyota must now determine the amount of annual production capacity it should build at TMMC.
Toyota's goal is to maximize the profit from the RX 330 line over the five years from 2003-2007. These vehicles will sell for an average of $37,000 and incur a mean unit production cost of $28,000 (here, $ =

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