Toyota - Process Identification Essay examples

1690 Words Feb 21st, 2013 7 Pages
Process Identification

Signs of the impending recall crisis began as early as 2006 when the National Highway Traffic Safety Administration (NHTSA) initiated an investigation into driver reports of “surging” in Toyota’s Camry models. This investigation was closed the next year declaring that there were no defects. Known in the industry for their quality and reliability, Toyota would silently recall almost nine million Toyota and Lexus models due to the sudden acceleration problems. Because of the lingering reaction in dealing with these problems, Toyota’s leadership had been highly ridiculed, so now they had a big job in identifying the solution that would make sure of the safety of their vehicles and reinstate consumer
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If the process is not improved, it could cost Toyota more recalls in the future because of failed products and service; hence, losing more customers and revenue, not to mention the effect it would have on the shareholders. Media involvement could make or break the reliability.

The documents for Toyota described their production system. It states that the Toyota Production system (TPS) was established based on two concepts: The first is called “ji-doka” (loosely translated as “automation with a human touch”), which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; the second is the concept of “just-in-time,” in which each process produces only what is needed by the next process in a continuous flow.
Toyota still has the loyalty of their consumers that were not affected by the recalls of their products. Toyota’s challenges came from “their own inefficiencies” by beginning operation in a crisis mode and undertaking penny-pinching measures like turning down thermostats, curb in production, slashing management bonuses, and laying off thousands of temporary workers” (Greto, Schotter, & Teagarden, 2010, p. 9).

Toyota has, for the past few years, been expanding its business rapidly; at the pace at which may have been too quick. Toyota’s priority has traditionally been the following: First; Safety, Second; Quality, and Third; Volume. These priorities

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