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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 ???