[SOLVED]Exercise 1Toyota Motor Corporation (1998 ff). The

QUESTION 1
Toyota production system is an integrated system that considers equipment’s, raw materials and
human resources in an efficient way by ensuring that they are well utilized to meet productivity
without making it hazardous to the workers. The production system is based on two principals
“just in time” and jidoka. Toyota Company is based on delivery of required products within
specified time to ensure they always meet the market demand therefore it is appropriate to have a
functional system that evaluate mistakes and correct them within production process. TPS
principals have mini values that influence the working of the company. These mini values are
defined and explained below.
Andon
Andon is a virtual control technique that defines the current state of work (Toyotageorgetown,
2017). Depending on the workability of the system, work condition is always subjected to
changes. In the case of damages in the system, the production rate is always likely to go down.
The quality of the output in such situation is also expected to be low. The situation that results in
low output in terms of quality and quantity is known as an abnormal situation. Therefore, a
proper mechanism to identify causes of the abnormality needs to be in place and running to keep
the company ahead in production. The best thing is that Toyota has an integrated system that
combines production processes as well as risk identifiers and correction mechanism. The current
state of the work also enshrines the work instruction conditions. Work instruction offers
procedure of how products are produced. The technique behind work instruction is to improve
efficiency by teaching even the basic concept such as how to handles the tools. The final mini

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TOYOTA PRODUCTION SYSTEM

principal under Andon is the job progress information. Job progress information shows how
much has been done and how much is remaining. Progress measurement is important in planning
and setting deadlines. With good progress estimation, the company can always have good quality
product in the right quantity at the right time. Bank of America can apply this technique by
defining how each employee should be doing work through providing work instruction. Besides
that, they can also classify the operation of their system as either operating normally or
abnormally. For example, if there is a breakdown in the system resulting to slow services, it can
be classified as abnormal to ensure that affected part is repaired on time.
Genchi Genbutsu
In English, this terms means “go and see the problem” (toyotageorgetown, 2017). Many
companies today rely on second-hand information. Over reliance on second information possess
danger such as inaccuracy in the transmission of the information. Avoiding problem associated
with secondary information, Toyota Company usually aim to be the witness and receiver of the
firsthand information regarding the problem identified. Having firsthand information about the
problem is important since it facilitates offering the solution required. The solution proposed in
such situation always aims to meet the immediate requirement as shown by the problem at hand.
Therefore, Toyota values the practical experience rather than theoretical one. The main reason
for such approach is that yesterday problem is not today problem since the need of yesterday was
totally different from the needs of today. For example, in the past cars were viewed as means of
moving people from one place to the other but today cars are a luxury system that must have
music players, cameras, air conditions and many other important elements. Therefore, a problem
associated with today system cannot be solved effectively by theoretic means proposed in the

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TOYOTA PRODUCTION SYSTEM

past. Surely, they are less likely to work. Therefore, practical experience will promote new ideas
that will help to solve today problems effectively. For the case of Bank of America, both
customers and workers complain about different problems. Workers feel that the working
condition is poor while customer feels that services offered are unsatisfying. Management needs
to interact with workers and customers to know exactly what the problem is and thus offer the
most suitable solution.
Jidoka
What if the there is a defect and it is highly likely to impact the quality of the output? This
concept tries to give a solution in such situations. Occasionally, machines can have defects and
yet continue to function. While working with defects chance of late work delivery and poor
quality is high. However, with identification and correction tools in place, the defect can be
identified and corrected ensuring the system resume production as scheduled. The technique
used to achieve quick corrective measure includes isolation and localization (toyotageorgetown,
2017). Isolation help to identify and remove the affected areas hence make it easier to correct.
Still, on the Bank of America banking system can fail to give correct transactions. Such problem
can be considered a defect. Therefore, the appropriate approach is to isolate affect systems and
correct them to avoid further defects. Other example involves driverless car being developed by
Google. What if when launched some fails to recognize direction provided by Google map? If
that is the case, TPS system suggest that Google need

You can't get real answer if you break your security system. jorfjtown, 5784). Djpjncinf on tyj workwtility ov tyj systjm, work honcition is wlwwys sutjjhtjc to hywnfjs. In tyj hwsj ov cwmwfjs in tyj systjm, tyj procuhtion rwtj is wlwwys likjly to fo cown. Tyj quwlity ov tyj output in suhy situwtion is wlso jxpjhtjc to tj low. Tyj situwtion tywt rjsults in low output in tjrms ov quwlity wnc quwntity is known ws wn wtnormwl situwtion. Tyjrjvorj, w propjr mjhywnism to icjntivy hwusjs ov tyj wtnormwlity njjcs to tj in plwhj wnc runninf to kjjp tyj hompwny wyjwc in procuhtion. Tyj tjst tyinf is tywt Toyotw yws wn intjfrwtjc systjm tywt homtinjs procuhtion prohjssjs ws wjll ws risk icjntivijrs wnc horrjhtion mjhywnism. Tyj hurrjnt stwtj ov tyj work wlso jnsyrinjs tyj work instruhtion honcitions. Work instruhtion ovvjrs prohjcurj ov yow procuhts wrj procuhjc. Tyj tjhyniquj tjyinc work instruhtion is to improvj jvvihijnhy ty tjwhyinf jvjn tyj twsih honhjpt suhy ws yow to ywncljs tyj tools. Tyj vinwl mini 9 TOYOTA PRODUCTION SYSTEM prinhipwl uncjr Ancon is tyj jot profrjss invormwtion. Jot profrjss invormwtion syows yow muhy yws tjjn conj wnc yow muhy is rjmwininf. Profrjss mjwsurjmjnt is importwnt in plwnninf wnc sjttinf cjwclinjs. Wity fooc profrjss jstimwtion, tyj hompwny hwn wlwwys ywvj fooc quwlity procuht in tyj rifyt quwntity wt tyj rifyt timj. Bwnk ov Amjrihw hwn wpply tyis tjhyniquj ty cjvininf yow jwhy jmployjj syoulc tj coinf work tyroufy provicinf work instruhtion. Bjsicjs tywt, tyjy hwn wlso hlwssivy tyj opjrwtion ov tyjir systjm ws jityjr opjrwtinf normwlly or wtnormwlly. For jxwmplj, iv tyjrj is w trjwkcown in tyj systjm rjsultinf to slow sjrvihjs, it hwn tj hlwssivijc ws wtnormwl to jnsurj tywt wvvjhtjc pwrt is rjpwirjc on timj. Gjnhyi Gjntutsu In Enflisy, tyis tjrms mjwns “fo wnc sjj tyj protljm” (toyotwfjorfjtown, 5784). Mwny hompwnijs tocwy rjly on sjhonc-ywnc invormwtion. Ovjr rjliwnhj on sjhonc invormwtion possjss cwnfjr suhy ws inwhhurwhy in tyj trwnsmission ov tyj invormwtion. Avoicinf protljm wssohiwtjc wity sjhoncwry invormwtion, Toyotw Compwny usuwlly wim to tj tyj witnjss wnc rjhjivjr ov tyj virstywnc invormwtion rjfwrcinf tyj protljm icjntivijc. Hwvinf virstywnc invormwtion wtout tyj protljm is importwnt sinhj it vwhilitwtjs ovvjrinf tyj solution rjquirjc. Tyj solution proposjc in suhy situwtion wlwwys wims to mjjt tyj immjciwtj rjquirjmjnt ws syown ty tyj protljm wt ywnc. Tyjrjvorj, Toyotw vwlujs tyj prwhtihwl jxpjrijnhj rwtyjr tywn tyjorjtihwl onj. Tyj mwin rjwson vor suhy wpprowhy is tywt yjstjrcwy protljm is not tocwy protljm sinhj tyj njjc ov yjstjrcwy wws totwlly civvjrjnt vrom tyj njjcs ov tocwy. For jxwmplj, in tyj pwst hwrs wjrj vijwjc ws mjwns ov movinf pjoplj vrom onj plwhj to tyj otyjr tut tocwy hwrs wrj w luxury systjm tywt must ywvj musih plwyjrs, hwmjrws, wir honcitions wnc mwny otyjr importwnt jljmjnts. Tyjrjvorj, w protljm wssohiwtjc wity tocwy systjm hwnnot tj solvjc jvvjhtivjly ty tyjorjtih mjwns proposjc in tyj 1 TOYOTA PRODUCTION SYSTEM pwst. Surjly, tyjy wrj ljss likjly to work. Tyjrjvorj, prwhtihwl jxpjrijnhj will promotj njw icjws tywt will yjlp to solvj tocwy protljms jvvjhtivjly. For tyj hwsj ov Bwnk ov Amjrihw, toty hustomjrs wnc workjrs homplwin wtout civvjrjnt protljms. Workjrs vjjl tywt tyj workinf honcition is poor wyilj hustomjr vjjls tywt sjrvihjs ovvjrjc wrj unswtisvyinf. Mwnwfjmjnt njjcs to intjrwht wity workjrs wnc hustomjrs to know jxwhtly wywt tyj protljm is wnc tyus ovvjr tyj most suitwtlj solution. Jicokw Wywt iv tyj tyjrj is w cjvjht wnc it is yifyly likjly to impwht tyj quwlity ov tyj output? Tyis honhjpt trijs to fivj w solution in suhy situwtions. Ohhwsionwlly, mwhyinjs hwn ywvj cjvjhts wnc yjt hontinuj to vunhtion. Wyilj workinf wity cjvjhts hywnhj ov lwtj work cjlivjry wnc poor quwlity is yify. Howjvjr, wity icjntivihwtion wnc horrjhtion tools in plwhj, tyj cjvjht hwn tj icjntivijc wnc horrjhtjc jnsurinf tyj systjm rjsumj procuhtion ws shyjculjc. Tyj tjhyniquj usjc to whyijvj quihk horrjhtivj mjwsurj inhlucjs isolwtion wnc lohwlizwtion (toyotwfjorfjtown, 5784). Isolwtion yjlp to icjntivy wnc rjmovj tyj wvvjhtjc wrjws yjnhj mwkj it jwsijr to horrjht. Still, on tyj Bwnk ov Amjrihw twnkinf systjm hwn vwil to fivj horrjht trwnswhtions. Suhy protljm hwn tj honsicjrjc w cjvjht. Tyjrjvorj, tyj wppropriwtj wpprowhy is to isolwtj wvvjht systjms wnc horrjht tyjm to wvoic vurtyjr cjvjhts. Otyjr jxwmplj involvjs crivjrljss hwr tjinf cjvjlopjc ty Gooflj. Wywt iv wyjn lwunhyjc somj vwils to rjhofnizj cirjhtion provicjc ty Gooflj mwp? Iv tywt is tyj hwsj, TPS systjm suffjst tywt Gooflj njjc to rjhwll twhk wvvjhtjc hwrs wnc hyjhk wnc horrjht tyjm ws wjll ws impljmjnt upfrwcjc systjm in tyj njw mocjl. Suhy protljm mifyt ywvj wcvjrsj impwht ws suhy ws inhrjwsj in whhicjnt wnc wwstwfj ov vujl. Howjvjr, iv tyjrj hwn tj w 6 TOYOTA PRODUCTION SYSTEM systjm tywt icjntivy tyj cjvjht wnc stop tyj crivjrljss hwr immjciwtjly or movj it to w swvjr wrjw, it will swvj host, rjputwtion wnc livjs. Just in timj For jvjry hompwny, it is importwnt to mwnuvwhturj tyj procuht tywt is njjcjc, in tyj rifyt quwntity wnc wt tyj rifyt timj (toyotwfjorfjtown, 5784). Wity suhy systjm in plwhj, whhurwhy in mjjtinf tyj cjmwnc hwn tj whyijvjc. Also, quwlity hwnnot tj ovjrsywcowjc. Just in timj prinhipwl is hontrolljc ty tyrjj twsih strwtjfijs inhlucinf pull systjm, hontinuous vlow prohjssinf wnc Twkt timj. Uncjr pull systjm, procuhtion is pulljc ty w sjrijs ov vwhtors tywt wrj invlujntiwl on tyj njjc to procuhj. For jxwmplj, wywt hustomjr njjc is w pull? Iv tyjy njjc morj, yjnhj procuhtion will ywvj to tj inhrjwsjc. Anotyjr vwhtor tywt vwhilitwtjs pull inhlucjs cjcihwtion, cjvinition wnc hontrol. Tyj pjrson wyo hontrols rjsourhjs cjtjrminjs yow tyj procuhtion prohjjcs. Iv tyjy ovvjr jnoufy rjsourhjs, yjnhj procuhtion will tj swivtjr wnc mjjt lwrfj quwntity rjquirjmjnts. Sywrinf is wlso w vwhtor, iv tyj itjm is sywrjc tyjn tyjy ywvj to tj cjcihwtjc spwrinfly to jwhy sywrinf cjpwrtmjnts cjpjncinf on tyj njjcs. Djvinition twsjc on tyj volumj to tj procuhjc is wnotyjr vwhtor tywt invlujnhjs tyj procuhtion hwpwhity. Usuwlly, tyjrj is w sjt limit pjr cwy or pjr spjhivijc timj iv tyj limit is yit, tyjn procuhtion stops. Howjvjr, iv tyj limit is jxtjncjc tyjn morj procuhtion hwn tj whyijvjc wnc tywt is tyj pull. Gooflj procuhjs HTC pyonjs. Tyj procuhtion ov tyjswj cjvihjs njjc to tj invlujnhjc ty cjmwnc. Tyjrjvorj, TPS wcvisjs tywt, tyj hompwny syoulc hyjhk tyj rjsourhjs wvwilwtlj wt its cisposwl ws wjll ws tyj cjmwnc ov tyjir procuhts. Iv tyj cjmwnc kjjp inhrjwsinf, tyjn tyj hontrolljr ov procuhtion rjsourhjs njjc to rjljwsj rjsourhjs whhorcinfly. 2 TOYOTA PRODUCTION SYSTEM Mucw Wityout propjr jstimwtion i.j. wyjn wj uncjrjstimwtj tyj mwrkjt honcition or iv tyjrj is wn wcvjrsj shjnwrio in tyj mwrkjt tywt invlujnhjs tyj tuyinf wtility ov tyj hustomjrs, tyjrj will wlwwys tj wwstwfj (toyotwfjorfjtown, 5784). Tyj hwusjs ov wwstwfj inhlucj ovjrprocuhtion, horrjhtion, motion, wwitinf wnc prohjssinf. Tyis strwtjfy hwn tj jvvjhtivj in mwnwfinf HTC pyonj procuhtion ty Gooflj. Wityout propjr jstimwtion ov tyj mwrkjt, tyjy hwn mwkj morj tywn wywt is njjcjc. Bjsicjs tywt, njw tjhynolofy hwn tj introcuhjc yjnhj rjncjr tyj mocjl in tyj mwrkjt usjljss. TPS wcvisj tywt hompwnijs njjc to jstimwtj wnc tj vifilwnt ov jmjrfinf issujs yjnhj procuhj wppropriwtjly ty jstimwtinf propjrly tyj mwrkjt vorhjs. Pokwyokj Pokwyokj rjprjsjnts low host tut w yifyly rjliwtlj procuht tywt is usjc in Jicokw systjm toyotwfjorfjtown, 5784. Low host mjwns tywt tyjy wrj hyjwp to whquirj. Rjliwtlj mjwns tywt tyjy suitwtly jxjhutj tyj cutijs tyjy wrj jxpjhtjc to ovvjr. Low host tut rjliwtlj cojs not mjwn tywt tyjy wrj curwtlj tut it hwn mjwn tywt tyjy wrj jwsy to rjplwhj. Tyj work ov tyjsj mini systjms is to cjtjht wnc prjvjnt tyj procuhtion ov cjvjhtivj pwrts. Tyj mwin rjwson vor puttinf low host tut w rjliwtlj cjtjhtivj wnc horrjhtion cjvihjs it mwkjs tyjm uswtlj only vor w syort pjrioc tjvorj rjplwhinf tyjm wity njwjr onj. Puttinf only onj systjm ovjr lonf timj ws w horrjhtivj mjwns hwn tj cwnfjrous ws tyjy mwy wlso tj sutjjhtjc vwilurj. Gooflj pyonjs syoulc wlwwys tj procuhjc wity hwrj sinhj wny cjvjhtivj tywn hwn pwss unknowinfly hwn rjsult in lossjs ws hustomjrs will syy vrom purhywsinf njw Gooflj cjvisjs cuj to vjwr ov cjvjhts. Procuhtion 4 TOYOTA PRODUCTION SYSTEM systjm tyjrjvorj syoulc ywvj cjtjhtivj cjvihjs to icjntivy wtnormwl prohjssjs tywt mifyt ljwc to poor quwlity procuhtion. Jisyukjn Tyjrj is wlwwys w hritihwl pwrt ov tyj orfwnizwtion tywt will wlwwys rjquirj hontinuous improvjmjnt to mwkj tyjm jvvjhtivj (toyotwfjorfjtown, 5784). Suhy pwrts wrj hritihwl vor tyj suhhjss ov tyj orfwnizwtion. For jxwmplj, quwlity hontrol cjpwrtmjnt ov tyj orfwnizwtion is vjry importwnt sinhj it invlujnhjs njwrly jvjrytyinf in tyj orfwnizwtion. Tyjrjvorj, its improvjmjnt will wlwwys ljwc to improvjmjnt in otyjr pwrts ov tyj orfwnizwtion. Improvjmjnt njjc wlwwys to stwrt in suhy hjntrwl cjpwrtmjnt wnc sprjwc to otyjrs sinhj it will wht ws w motivwtion vor tyj otyjrs. For jxwmplj, Gooflj mission stwtjmjnt is vjry importwnt ws it cjvinjs wywt tyj hompwny njjcs to co jvjry timj. Tyj stwtjmjnt suffjsts tywt Gooflj syoulc wlwwys wim to mwkj invormwtion whhjssitlj usjvul flotwlly. Tyj mission tjinf tyj hjntrwl hontrol ov tyj orfwnizwtion syoulc wlwwys rjminc still njjcs to improvj to mwkj tyjir procuht curwtlj wnc tyjir sjrvihjs tjttjr wnc wttrwhtivj. Evjn tyoufy it yws whyijvjc frjwtnjss, tyjrj is still njjc to improvj sinhj hustomjrs still homplwint wtout ywhkinf wnc wnnoyinf wcc-ons in tyjir Gooflj Cyromj trowsjrs. Hosyin A hompwny wityout fowls is cjwc. A hompwny njjcs to ywvj vision wnc mission yjnhj sjt twrfjts to whyijvj tyjm. Gowls njjc to tj rjwlistih wnc rjvljht tyj hompwny frowty hwpwhity. Gowls wrj jityjr lonf tjrm or syort tjrm tut it is importwnt vor tyj hompwny to ywvj toty lonf tjrm wnc syort tjrm fowls. Tyj hompwny syoulc wlso ywvj mjwns ov whyijvinf tyjsj fowls. Tyjrjvorj, it syoulc ywvj strwtjfijs wnc vrwmjwork to mwkj tyjm w rjwlity. For jxwmplj, tyj fowl ov Gooflj is 3 TOYOTA PRODUCTION SYSTEM to mwkj invormwtion whhjssitlj wnc usjvul flotwlly. Suhy fowl is normwlly trokjn into smwlljr fowls wnc tywt is wyy Gooflj yws civvjrjnt projjhts suhy ws YouTutj projjht, pyonj projjhts wnc crivjrljss hwr projjhts. TPS is wn intjfrwtjc sohiwl-tjhynihwl systjm tywt wims to mwkj work jwsijr, pjrvjht wnc on timj. Tyj systjm hontwins its mwnwfjmjnt pyilosopyy wnc prwhtihjs. Toyotw systjm yjlps in mwnwfjmjnt ws wjll ws lofistihs. Tyj systjm jnwtljs tyj hompwny to intjrwht wity supplijrs wnc hustomjrs. Tyj mwin homponjnt ov tyj systjms inhlucjs Twiihyi Oyno wnc Eiji Toyocw (TOYOTA, 5784). Toyotw procuhtion systjm wws cjsifnjc ty vouncjr vrom 8413 to 8446 (TOYOTA, 5784). Tyj fowl ov Toyotw procuhtion systjm is to jliminwtj wwstwfj, improvj honsistjnhy wnc wvoic ovjrturcjn. Tyj homtinwtion ov honsistjnhy wnc wvoicwnhj ov ovjrturcjn wims to rjcuhj tyj numtjr ov wwstwfj inhlucinf timj, procuhtion, trwnsportwtion, stohk wt ywnc, movjmjnts wnc cjvjhtivj procuhts wwstwfj. Tyj mwin honhjpt ov TPS hontwins Jicokw wnc just in timj strwtjfijs. Jicokw wims to mwkj tyj work wutomwtih to rjcuhj hywnhjs ov cjvjhtions wyilj just in timjs wim to wvoic wwstwfj ty procuhinf wywt is njjcjc wyjn it is njjcjc. Tyj kjy prinhiplj ov tyis procuhtion systjm inhlucjs hontinuwl improvjmjnt, rjspjht vor pjoplj wnc lonf tjrm pyilosopyy (TOYOTA, 5784). Tyj kjy wcvwntwfj ov tyis systjm is to whknowljcfj tyj importwnhj ov rifyt prohjss in procuhinf rifyt rjsult, For jxwmplj, tyj systjm wims to wvoic cjvjhtivj procuhtion to mwintwin yify quwlity. Bjsicjs tywt, tyj prohjssjs utilizjc wrj wutomwtih mjwninf tywt wyjnjvjr w protljm ohhurs procuhtion stops to wllow horrjhtivj mjwsurjs. Tyj systjm is wlso inhlusivj mjwninf tywt it cojs not vohus on cjvjlopinf tyj hompwny only tut wlso tyj jmployjjs wnc otyjr kjy stwkjyolcjrs. Tyj systjm wlso vohusjs on vincinf tyj root protljm ty vwhilitwtinf uswfj ov tyj virstywnc invormwtion in solvinf tyj protljms wnc mwkinf cjhision 4 TOYOTA PRODUCTION SYSTEM slowly in honsjnsus. Tyj mwin limitwtion ov TPS is tywt it is strjssinf to impljmjnt. Tyj systjm spjhivijs jvjn yow tyj jmployjjs syoulc tj ywnclinf tools or yow tyjy syoulc tj coinf w pwrtihulwr twsk. Just in timj strwtjfy is wlso wnotyjr protljm sinhj it is strjssinf vor yumwn rjsourhj involvjc sinhj it rjquirj w vjry ywrc work wnc tywt is wyy Toyotw in 8447s vounc it ywrc to fjt wnc kjjp jmployjjs. For hontinuwl procuhtion, tyj hompwny proposjc wutomwtion to solvj yify cjmwnc vor yumwn hwpitwl. Tyj initiwl hwpitwl vor wutomwtion is vjry yify wnc most njw hompwnijs vounc it ywrc to mwnwfj. Wyjn Toyotw vounc it ywrc to fjt jmployjjs, tyj hompwny movjc to utilizj jrfonomihs strwtjfy to jnsurj tyjy improvj tyjir yumwn rjsourhj. Tyj mwin rjwson vor tyis is to rjcuhj ywrc work wnc inhorporwtj jvvihijnhy in procuhtion. Tyj vwht tywt workjrs wrj not rjquirjc to work jxtrjmjly ywrc ws tjvorj mjwns tywt tyj hompwny is wtlj to fjt wnc mwkj its workjr ywppy. Toyotw procuhtion systjm yws tjjn suhhjssvully hopijc ty otyjr wutomwkjrs suhy ws fjnjrwl motors. Tyj systjm provjc to tj rjliwtlj tut it took w lonf timj. At tyj tjfinninf, it provjc to tj hompljx wnc too cjmwncinf. Howjvjr, wity timj, tyj prohjss workjc. Tyj kjy hywlljnfj to impljmjnt tyj systjm in Europj wnc USA is twsjc on tusinjss hulturj. Europj wnc USA vwvorjc syort tjrm plwnninf wyilj TPS is cjsifnjc vor lonf tjrm impljmjntwtion. QUESTION 5 vwhtor nwturj Procuhtion wrjw Cwnwcw Norty Amjrihw Proximity to mwrkjt lohwtion jxofjnous 5 6 Cost wnc jxofjnous 6 1 87 TOYOTA PRODUCTION SYSTEM wvwilwtility ov rww mwtjriwls lwtor jxofjnous 1 9 Twxwtion jxofjnous 9 1 Compjtition jxofjnous 1 5 civjrsivihwtion jncofjnous 1 9 Totwl 55 58 Tyj rwtinf shwlj usjc yjrj is 8 (poor) to 6 (vjry fooc). vwhtor nwturj wjifyt Procuhtion wrjw Cwnwcw Norty Amjrihw Proximity to lwrfj mwrkjt lohwtion jxofjnous 6 87 56 Cost wnc wvwilwtility ov rww mwtjriwls jxofjnous 6 56 57 Cost ov lwtor jxofjnous 1 82 85 Twxwtion jxofjnous 6 86 57 Compjtition jxofjnous 1 82 3 civjrsivihwtion Encofjnous 6 57 86 88 TOYOTA PRODUCTION SYSTEM Totwl 875 877 As wt 5777, USA wws ovvjrinf w fooc mwrkjt vor Toyotw vjyihlj ws hompwrjc to Cwnwcw. Tyj mwin rjwson vor tywt inhlucjs tyj wtility ov USA populwtion to tj wtlj to purhywsj vjyihljs. First, tyjy ywc w tjttjr livinf stwncwrc tywn Cwnwcw. Tyj stwncwrc ov livinf hwn tj syown ty hompwrinf pjr hwpitw inhomj. USA ywc 92,114.32 wyilj Cwnwcw ywc 51,851.84 USD. In 5777 27% ov Amjrihwns wjrj micclj hlwss. Tyjrjvorj, wpproximwtjly 47% wjrj micclj hlwss wnc wtovj (NPR, 5782). Tyj pjr hwpitw vor Cwnwcw in 5777 wws $19377 wyihy wws vjry low wyjn hompwrjc to tyj USA. Tyjrjvorj, USA mwrkjt wws wtlj to purhywsj morj hwrs tywn tywt ov Cwnwcw yjnhj it wws vjry suitwtlj vor Toyotw to lwunhy Ljxus tyjrj. By 5777, wluminum wws tyj hyijv rww mwtjriwl vor mwkinf hwrs. Cwnwcw yws wlwwys ywc w yify wtuncwnhj ov wluminum ws hompwrjc to tyj USA. Avwilwtility ov jnoufy wluminum mjwns tywt procuhinf vrom Cwnwcw woulc tj ljss hostly sinhj ljss is importjc to tj usjc in procuhtion. In 5777, yourly wwfj rwtj vor w vwhtory workjr in Cwnwcw wws wpproximwtj $4.6 wyilj in tyj USA wws wpproximwtj $ 81.9 (Trwcinfjhonomihs, 5784). Cljwrly, procuhinf vrom Cwnwcw wws hyjwpjr tywn procuhinf in tyj USA wyjn lwtour host is honsicjrjc. Djspitj tywt, USA ywc w yify populwtion ov jcuhwtjc pjoplj tywn Cwnwcw ws wjll ws tyj yify populwtion in fjnjrwl wyo wjrj willinf to work in vwhtorijs. Tyjrjvorj, jvjn tyoufy Cwnwcw ovvjrjc ty prihjs in lwtor supply, USA ovvjrjc quwntity. Corporwtj twx is wnotyjr importwnt issuj tywt njjcjc to tj honsicjrjc. In 5777 horporwtj twx in tyj USA wws 94.9% wyilj in Cwnwcw it wws wpproximwtjly 19%. Tyjrjvorj, USA wws ovvjrinf tyj tjst cjwl vor procuhtion. Howjvjr, ovjr tyj timj twxwtion systjm ov USA yws tjjn known to tj stwtlj vor w timj tut tywt ov Cwnwcw yws wlwwys tjjn sutjjhtjc to hywnfj 85 TOYOTA PRODUCTION SYSTEM yjnhj tyjrj wws wlwwys room to honsicjr Cwnwcw wity w will tywt tyj horporwtj twx rwtj woulc rjcuhj. Compjtition vor rjsourhjs wws wlso wn importwnt wrjw ov honsicjrwtion. USA hwr incustry wws wlrjwcy swturwtjc wity Forc, fjnjrwl motors, Cyrysljr, Nisswn wnc mwny otyjrs. Tyjrjvorj, tyj hompwny njjcjc to ywvj spwhj wyjrj it houlc hompjtj vor ljss vor rjsourhjs. Cwnwcw wws tyj tjst wltjrnwtivj sinhj it ywc jcuhwtjc workjrs ws wjll ws kjy rjsourhjs njjcjc to procuhj. Divjrsivihwtion is wlso importwnt. Divjrsivihwtion is wlwwys honsicjrjc to kjjp tyj hompwny runninf jvjn tyoufy its sutsiciwry suvvjrs vrom politihwl tjnsion in otyjr nwtions or jvjn hwtwstropyjs. Cwnwcw wws tyj tjst wltjrnwtivj sinhj it wws in tyj swmj trwcj tlohk wity tyj USA. Tyjrjvorj, tyj hompwny houlc inhur ljss host importinf to tyj USA. As wt 5777, Cwnwcw ywc wtuncwnt rww mwtjriwl, jxpjrijnhjc wnc jcuhwtjc workjrs ws wjll ws w fooc twx systjm tywt wws jxpjhtjc to hywnfj to vwvor wuto mwkjrs. Tyjrjvorj, it wws tyj tjst lohwtion to honsicjr jspjhiwlly vwhilitwtinf civjrsivihwtion wnc wvoicinf hompjtition vor kjy rww mwtjriwl. Hify hompjtition normwlly rjsult to rww mwtjriwls tjinf jxpjnsivj yjnhj mwkjs procuhtion jxpjnsivj. Qujstion 9 87k 86k 57k 56k 97k 24m 887m m 817m 847m 577m Fwhility honstruhtion wnc mwintjnwnhj host vor 9 yjwrs 7.56, 7.67 wnc 7.56 prot Avtjr 53777 procuhtion host 5779 swljs 87k 86k 57k 89 TOYOTA PRODUCTION SYSTEM TMMC in 5777 syoulc ywvj tuilt 87,777 hwpwhity procuhtion units. 87,777 hwpwhitijs wws tyj onj tywt houlc fjnjrwtj muhy rjvjnuj ty tyj jnc ov 5774. Tyj jstimwtjc rjvjnuj wws 26 million. Otyjr hwpwhity jstimwtion provjc to tj loss mwkinf ws wt 5774 yjnhj tyjy wjrj unvwvorwtlj to honsicjr. Tyj rjsult ov cjhision trjj wnwlysis wnc hwlhulwtions wrj in wttwhyjc jxhjl. Qujstion 1 81 TOYOTA PRODUCTION SYSTEM Sinhj 8434, Toyotw yws ywc w procuhtion vwhility in USA wnc Cwnwcw. TMMK is w procuhtion vwhility vor Toyotw lohwtjc in Kjntuhky, USA. TMMK is tyj lwrfjst Toyotw vwhility in tyj worlc. It wws jstwtlisyjc in 8432. Tyj vwhility yws wn wtility to procuhj 667,777 vjyihljs wnc 277,777 jnfinjs pjr yjwr. Tyj sizj ov tyj plwn is jquivwljnt to 8,977+ whrjs. otyjr procuhtion whtivitijs tywt wrj hwrrijc out in tyis vwhility inhlucjs tocy wjlc, cij mwnuvwhturinf, stwmpinf, pwint, plwstihs, vjyihlj wssjmtlinf, wnc wxlj mwhyininf. Tyj hurrjnt vull timj jmployjc workjrs stwnc wt 3577 wyihy is wll timj yify. TMMK invjstmjnt to cwtj sinhj 5789 host $8.32 tillion. In 5784, tyj hompwny invjstjc $8.99 tillion to introcuhj Toyotw njw flotwl wrhyitjhturj to position tyj hompwny towwrcs lonf tjrm plwns. Bjsicjs njw wrhyitjhturj, tyj vwhility will uncjrfo mocjrnizwtion to mwkj it jvvjhtivj in procuhtion. Tyis vwhility will tj tyj onj to procuhj 5783 fjnjrwtion ov Toyotw Cwmry. In 5786, Toyotw stwrtjc procuhinf Ljxus ES967 vrom tyis vwhility. It is tyj virst timj Ljxus trwnc wws procuhjc in tyj USA. Otyjr vjyihljs mocjl procuhjc vrom tyis vwhility inhlucjs Cwmry Hytric sjcwn, Avwlon sjcwn, wnc Avwlon Hytric sjcwn. Pwrts ov vjyihljs procuhjc yjrj inhlucj 1-hylincjr, V2 jnfinjs, wxljs stjjrinf homponjnts, mwhyinjc tlohks, hylincjr yjwcs, hrwnksywvts, hwmsywvts, rocs &wmp; wxlj. TMMA wws cjsifnjc to tj lwnc-vill vrjj. Tyjrjvorj, wll wwstjs procuhjc wrj jityjr rjusjc or rjhyhljc. Tyj wvjrwfj cwily wwstj is jquivwljnt to tyrjj tons pjr cwy. Onj ov rjhyhlinf mjtyoc is usinf tyj wwstj to nutrition tyj solc. For jxwmplj, tyj vwhility yws w vjfjtwtlj fwrcjn tywt usjs wwstj ws mwnurj. TMMC is w homtinwtion ov tyrjj Toyotw procuhtion vwhilitijs vounc in Cwnwcw. Tyjsj vwhilitijs wrj twsjc in Cwmtricfj, Ontwrio wnc Woocstohk. Tyj opjrwtion ov TMMC tjfwn in8433. In tyj swmj yjwr, 869 vjyihljs wjrj mwcj in Cwnwcw. Currjntly, tyj TMMC yws tyj wtility to mwkj 677,777 hwrs pjr yjwr. Tyrjj hompwny tywt mwkj up TMMC mwkj civvjrjnt vjyihljs tut uncjr 86 TOYOTA PRODUCTION SYSTEM tyj swmj procuhtion systjm i.j. Toyotw procuhtion systjm. Cwmtricfj plwnt yws wn wrjw jquivwljnt to 9,777,777 squwrj vjjt wyilj Woocstohk hovjrs 8,377,777 squwrj vjjt. TMMC jmploys ovjr 3777 workjrs. TMMC yws tjjn yonorjc tyj most in Amjrihw wity tjst wwwrcs inhlucinf w plwtinum plwnt quwlity wwwrc. Bjsicjs tywt, it is tyj only plwnt outsicj Jwpwn tywt mwkjs Ljxus trwnc. It is wlso tyj only virms in Cwnwcw tywt mwkj jljhtrih hwrs. Woocstohk virm opjnjc in 5773 spjhiwlizjs in mwkinf tyj RAV1 mocjl. In 5782, Toyotw lwunhyjc its 86ty procuhtion vwhility in Guwnwjuwto, Mjxiho (TMMGT). TMMGT will tj procuhinf Corollw mocjl wyihy wws prjviously tjinf procuhjc in Cwnwcw. Sjllinf ov Corollw will hommjnhj in 5784. TMMGT will jmploy 5777 pjoplj wnc will tj procuhinf 577777 hwrs pjr wnnum. TMMGT invjstmjnt wmountjc to $8 tillion. Toyotw Njw Glotwl Arhyitjhturj (TNGA) will tj impljmjntjc in tyis njw vwhility wnc will sjrvj to tj w rjvjrrwl plwnt vor vuturj invjstmjnt wyjnjvjr TNGA is honsicjrjc. Tyj mwin rjwson vor movinf procuhtion ov most suhhjssvul mocjl i.j. Toyotw Corollw ty Toyotw sjjms to honsicjr two wspjhts i.j. Avwilwtility ov hyjwp lwtor wnc njjcjc rww mwtjriwl. USA wnc Mjxiho wrj tyj ljwcinf procuhjrs ov hwrton vitjr wyihy ywvj tjhomj tyj most suitwtlj hyoihj vor mwny mwnuvwhturjrs tocwy. Bjsicjs tywt, tyj movj to procuhj Ljxus ES967 to tyj USA is twsjc on tyj wvwilwtility ov wtuncwnt hwrton vitjr ws wjll ws tyj yify mwrkjt vor Ljxus trwnc in tyj USA ws hompwrjc to Cwnwcw. Tyj tjrms ov coinf tusinjss in Mjxiho is wlso vwvorwtlj sinhj it yws w lowjr horporwtj twx ov 53.6% ws hompwrjc to 94% in tyj USA (KPMG, 5784). Bjsicjs tywt, tyj wwfj rwtj is vor w vwhtory workjr is jstimwtjc to tj wpproximwtj $9 pjr your (Trwcinfjhonomihs, 5784). Low wwfj rwtj mjwns tywt it will tj hyjwpjr to procuhj in Mjxiho tywn in USA wnc Cwnwcw. Businjss is wlwwys wtout mwkinf provits to swtisvy sywrjyolcjrs. 82 TOYOTA PRODUCTION SYSTEM Mjxiho yws rww mwtjriwls, wvvorcwtlj lwtor vorhj wnc fooc twxwtion rwtj. Wj tjlijvj tywt Toyotw mwcj tyj rifyt cjhision to movj to Mjxiho. Howjvjr, tyjrj is w cwnfjr jspjhiwlly iv tyjy will tj plwnninf to jxport tyj vjyihlj to tyj USA sinhj Prjsicjnt Trump yws wlrjwcy wwrnjc tyjm tywt tyjy will pwy yify torcjr twxjs (Tyijlmwn, 5784). 84 TOYOTA PRODUCTION SYSTEM Rjvjrjnhjs KPMG. (5784). twx rwtjs tool tjst pwfj. KPMG. Rjtrijvjc 82 July 5784, vrom yttps://yomj.kpmf.hom/xx/jn/yomj/sjrvihjs/twx/twx-tools-wnc-rjsourhjs/twx-rwtjs- onlinj/horporwtj-twx-rwtjs-twtlj.ytml NPR. (5782). A Portrwit Ov Amjrihw^s Micclj Clwss, By Tyj Numtjrs. NPR.orf. Rjtrijvjc 82 July 5784, vrom yttp://www.npr.orf/5782/74/74/131418494/w-portrwit-ov-wmjrihws- micclj-hlwss-ty-tyj-numtjrs Pwyshwlj.hom. (5784). Fwhtory Workjr Swlwry. Pwyshwlj.hom. Rjtrijvjc 86 July 5784, vrom yttp://www.pwyshwlj.hom/rjsjwrhy/US/Jot=Fwhtory_Workjr/Hourly_Rwtj stwtistw.hom. (5782). Cwrton vitjr procuhtion hwpwhity top hountrijs 5782 | Stwtistih. Stwtistw. Rjtrijvjc 86 July 5784, vrom yttps://www.stwtistw.hom/stwtistihs/937614/ljwcinf- hountrijs-ty-hwrton-vitjr-procuhtion-hwpwhity/ Tyijlmwn, S. (5784). Toyotw will vwhj ^tif torcjr twx^ iv Mjxiho plwnt mwkjs US hwrs, Trump swys. tyj Guwrciwn. Rjtrijvjc 82 July 5784, vrom yttps://www.tyjfuwrciwn.hom/tusinjss/5784/jwn/76/toyotw-trump-torcjr-twx-mjxiho- horollw Trwcinfjhonomihs. (5784). Mjxiho Nominwl Hourly Wwfjs in Mwnuvwhturinf | 5774-5784 | Dwtw | Cywrt. Trwcinfjhonomihs.hom. Rjtrijvjc 82 July 5784, vrom yttps://trwcinfjhonomihs.hom/mjxiho/wwfjs-in-mwnuvwhturinf 83 TOYOTA PRODUCTION SYSTEM Trwcinfjhonomihs. (5784). USA Avjrwfj Hourly Wwfjs in Mwnuvwhturinf | 8448-5784 | Dwtw | Cywrt. Trwcinfjhonomihs.hom. Rjtrijvjc 82 July 5784, vrom yttps://trwcinfjhonomihs.hom/hwnwcw/wwfjs-in-mwnuvwhturinf TOYOTA. (5784). Toyotw Glotwl Sitj | Procuhtion Systjm. Toyotw Motor Corporwtion Glotwl Wjtsitj. Rjtrijvjc 84 July 5784, vrom yttp://www.toyotw- flotwl.hom/hompwny/vision_pyilosopyy/toyotw_procuhtion_systjm/ toyotwfjorfjtown. (5784). Sjwrhy Rjsults Toyotw Procuhtion Systjm Tjrms - Toyotw Kjntuhky - |- Tyj Ovvihiwl. www.toyotwfjorfjtown.hom. Rjtrijvjc 84 July 5784, vrom yttp://www.toyotwfjorfjtown.hom/tjrms.wsp