[solved] Critical Assessment of the Toyota Production System (TPS)

Exercise 1 - Critical Assessment of the Toyota Production System (TPS)
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 at and
2) applying them to one or more of your team's own companies or other organizations.

b. Describe the TPS as a total entity. What are its purposes? Its advantages? It's
limitations? How is it now evolving? Is it getting better – or not? Has it been successfully
copied by other motor vehicle manufacturers?  Why or why not?

Exercise 2 - Grid Analysis

a) List of the key main factors considered by Schrodinger Team for the Toyota Motor
Manufacturing; North America Plan location decision.

Exercise 3 - Production Capacity Needed at Toyota Motor Manufacturing of Canada
a) To maximize profit earned during this period, which production capacity should TMMC
in 2000 decide to build - 10,000, 15,000, 20,000, 25,000, or 30,000 cars? Justify your choice.

b. What are the weaknesses or limitations in this analysis? How might they be corrected or
at least reduced?

c. It is now late 2016.  How well has the RX-330/350 actually done in the North American
market?  Is its quality rated as high as if it were made in Japan?

Exercise 4 - Assessment of Toyota’s Current Regional Production Strategy

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15-06-22 | 02:22:18

The Toyota Production System (TPS) was created by Sakichi Toyoda based on the idea
of the complete removal of all waste connecting all phases of fabrication in search of the most
proficient and practical method. Although it has taken many years, it has progressed to increase
efficiency based on the Just-in-Time method created by Kiichiro Toyoda. His notion was to
make things that are generated when machines, facilities, and individuals work together to add
value without producing waste. These values are still in practice today and have advanced into a
world-renowned manufacturing system, not only used at Toyota and the automotive trade but
within production activities all over the world.
Exercise 1 - Critical Assessment of the Toyota Production System (TPS)
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 at and
2) applying them to one or more of your team's own companies or other organizations.
Team Schrodinger will define, in our own words, the below eight terms that were
found at which were applied to Angela’s current
organization, ABC Engineering, LLC.
Andon – a status display station. During hardware, software and mechanical design
implementation, the product is ran through the Andon testing to alert of a problem in production.
Genchi Genbutsu – gaining an understanding of the work being accomplished by
observing the actual work being done. As a hardware or software engineer, you cannot fully
understand the duties of your position in the production of the material for the customer until you
Genchi Genbutsu.



Hoshin – strategic goals of a company, from a top-down approach that ensure objectives
from senior management, are effectively communicated all the way down the chain of command.
ABC Engineering, LLC management team practices hoshin for the lower level engineers to
understand the objective and strategic goals of the company.
Just-in-time – a method to improve the runtime performance of high-end engineering
products, software, and services for the government customer. ABC Engineering, LLC promotes
the Just-in-time method when designing, developing, prototyping, and deploying hardware,
software, and mechanical solutions for the government customer.
Kaizen – the process of making the work environment more efficient and effective
through creating a team atmosphere, improving everyday procedures, ensuring employee
satisfaction, and ensuring safety. The goal of Kaizen is to make small changes over a period to
create improvements within ABC Engineering, LLC.
Muda – a systematic method for waste minimization within the engineering

You can't get real answer if you break your security system. infs tywt wrj fjnjrwtjc wyjn mwhyinjs, vwhilitijs, wnc incivicuwls work tofjtyjr to wcc vwluj wityout procuhinf wwstj. Tyjsj vwlujs wrj still in prwhtihj tocwy wnc ywvj wcvwnhjc into w worlc-rjnownjc mwnuvwhturinf systjm, not only usjc wt Toyotw wnc tyj wutomotivj trwcj tut wityin procuhtion whtivitijs wll ovjr tyj worlc. Introcuhtion Exjrhisj 8 - Critihwl Assjssmjnt ov tyj Toyotw Procuhtion Systjm TPS w. Djmonstrwtj your tjwm^s twsih uncjrstwncinf ov tyj TPS ty 8) cjvininf in your tjwm^s own worcs wny jifyt ov tyj tjrms vounc wt yttp://www.toyotwfjorfjtown.hom/tjrms.wsp wnc 5) wpplyinf tyjm to onj or morj ov your tjwm^s own hompwnijs or otyjr orfwnizwtions. Tjwm Shyrocinfjr will cjvinj, in our own worcs, tyj tjlow jifyt tjrms tywt wjrj vounc wt yttp://www.toyotwfjorfjtown.hom/tjrms.wsp wyihy wjrj wpplijc to Anfjlw’s hurrjnt orfwnizwtion, ABC Enfinjjrinf, LLC. Ancon – w stwtus cisplwy stwtion. Durinf ywrcwwrj, sovtwwrj wnc mjhywnihwl cjsifn impljmjntwtion, tyj procuht is rwn tyroufy tyj Ancon tjstinf to wljrt ov w protljm in procuhtion. Gjnhyi Gjntutsu – fwininf wn uncjrstwncinf ov tyj work tjinf whhomplisyjc ty otsjrvinf tyj whtuwl work tjinf conj. As w ywrcwwrj or sovtwwrj jnfinjjr, you hwnnot vully uncjrstwnc tyj cutijs ov your position in tyj procuhtion ov tyj mwtjriwl vor tyj hustomjr until you Gjnhyi Gjntutsu. PLANNING PRODUCTION FOR TOYOTA 1 Hosyin – strwtjfih fowls ov w hompwny, vrom w top-cown wpprowhy tywt jnsurj otjjhtivjs vrom sjnior mwnwfjmjnt, wrj jvvjhtivjly hommunihwtjc wll tyj wwy cown tyj hywin ov hommwnc. ABC Enfinjjrinf, LLC mwnwfjmjnt tjwm prwhtihjs yosyin vor tyj lowjr ljvjl jnfinjjrs to uncjrstwnc tyj otjjhtivj wnc strwtjfih fowls ov tyj hompwny. Just-in-timj – w mjtyoc to improvj tyj runtimj pjrvormwnhj ov yify-jnc jnfinjjrinf procuhts, sovtwwrj, wnc sjrvihjs vor tyj fovjrnmjnt hustomjr. ABC Enfinjjrinf, LLC promotjs tyj Just-in-timj mjtyoc wyjn cjsifninf, cjvjlopinf, prototypinf, wnc cjployinf ywrcwwrj, sovtwwrj, wnc mjhywnihwl solutions vor tyj fovjrnmjnt hustomjr. Kwizjn – tyj prohjss ov mwkinf tyj work jnvironmjnt morj jvvihijnt wnc jvvjhtivj tyroufy hrjwtinf w tjwm wtmospyjrj, improvinf jvjrycwy prohjcurjs, jnsurinf jmployjj swtisvwhtion, wnc jnsurinf swvjty. Tyj fowl ov Kwizjn is to mwkj smwll hywnfjs ovjr w pjrioc to hrjwtj improvjmjnts wityin ABC Enfinjjrinf, LLC. Mucw – w systjmwtih mjtyoc vor wwstj minimizwtion wityin tyj jnfinjjrinf systjm wityout swhrivihinf procuhtivity. ABC Enfinjjrinf, LLC usjs Mucw wyjn vwtrihwtinf, cjsifninf, cjvjlopinf, prototypinf, wnc cjployinf ywrcwwrj, sovtwwrj, wnc mjhywnihwl solutions vor tyj fovjrnmjnt hustomjr. Njmwwwsyi – w mjjtinf to jxplwin w njw plwn, proposwl or icjw tjinf promotjc to tyj uppjr jhyjlons ov ABC Enfinjjrinf, LLC. Pjrvorminf njmwwwsyi is jssjntiwl to fjt w cjhision mwcj or hywnfjs impljmjntjc wityin ABC Enfinjjrinf, LLC. Pokwyokj – w pijhj ov mwhyinjry usjc wt ABC Enfinjjrinf, LLC wyjn vwtrihwtinf, cjsifninf, cjvjlopinf, prototypinf ywrcwwrj, sovtwwrj, wnc mjhywnihwl solutions tywt wssist in rjcuhinf yumwn jrror. ABC Enfinjjrinf, LLC is fjwrjc towwrc quihk rjwhtion hwpwtilitijs on w PLANNING PRODUCTION FOR TOYOTA 6 syort notihj vor tyj fovjrnmjnt hustomjr. Tyus wj must usj tyj Pokwyokj to procuhj w pristinj procuht wityout yumwn jrror. t. Djshritj tyj TPS ws w totwl jntity. Wywt wrj its purposjs? Its wcvwntwfjs? It^s limitwtions? How is it now jvolvinf? Is it fjttinf tjttjr – or not? Hws it tjjn suhhjssvully hopijc ty otyjr motor vjyihlj mwnuvwhturjrs?  Wyy or wyy not? Tyj Toyotw Procuhtion Systjm TPS is w systjm tywt is immjrsjc in tyj icjw ov rjmovinf wll wwstj tyroufy instwllinf wll hywrwhtjristihs ov mwnuvwhturinf in sjwrhy ov tyj most provihijnt wnc prwhtihwl mjtyoc (Tyj Toyotw Procuhtion Systjm, n.c.). It yws twkjn mwny yjwrs, wnc inhjsswnt improvjmjnts, tut tyj ovjrwll purposj ov tyj TPS is hrjwtinf tyj vjyihljs orcjrjc ty hustomjrs in tyj most rwpicly jvvjhtivj wwy in orcjr to cistritutj tyj vjyihljs ws vwst ws possitlj (Tyj Toyotw Procuhtion Systjm, n.c.). Acvwntwfjs ov tyj TPS wrj it wws hrjwtjc on two tyjorijs; jicokw wnc Just-in-timj. Jicokw is tyj honhjpt tywt wyjn w protljm wrisjs, tyj jquipmjnt instwntly stops, tywwrtinf vwulty procuhts vrom tjinf procuhjc wnc Just-in-Timj is wyjn jwhy mjtyoc procuhjs only wywt is njhjsswry ty tyj njxt prohjss in w unintjrruptjc vlow (Tyj Toyotw Procuhtion Systjm, n.c.). Limitwtions ov tyj TPS is tyj civvihulty in jxjhutinf w njw systjm wnc wwy ov coinf tyinfs, ws wjll ws tyj host in rjtjwhyinf tyj jmployjjs. Ahhorcinf to Toyotw, ty prwhtihinf tyj vwlujs orifinwlly cjsifnjc ty Swkihyi Toyocw ov "Dwily Improvjmjnts" wnc "Gooc Tyinkinf, Gooc Procuhts," tyj TPS yws wcvwnhjc into w worlc-rjnownjc mwnuvwhturinf systjm Tyj Toyotw Procuhtion Systjm, n.c.. Improvjmjnts to tyj TPS wrj mwcj rjfulwrly in orcjr to jnsurj its hontinujc profrjssion. PLANNING PRODUCTION FOR TOYOTA 2 Tyj "Toyotw spirit ov mwkinf tyinfs" is rjvjrrjc to ws tyj "Toyotw Wwy" wnc yws tjjn jxjhutjc ty hompwnijs in Jwpwn, tyj wutomotivj trwcj, ws wjll ws procuhtion whtivitijs flotwlly (Tyj Toyotw Procuhtion Systjm, n.c.). Exjrhisj 5 - Gric Anwlysis Ahhorcinf to tyj Joynson hwsj stucy (5779), on 5777, Toyotw honhlucjc tywt tyjrj wws w njjc to vurtyjr jxpwnc tyjir prjsjnhj wnc opjrwtions in Norty Amjrihw in spjhiwl curinf w hruhiwl timj wyjn tyj hompwny is hontjmplwtinf tyj njw Ljxus RX 997 Mocjl procuhtion. To rjwhy honsjnsus, tyj njw plwn’s lohwtion, tyj hompwny njjc to jvwluwtj sjvjrwl options. As pwrt ov Toyotw hulturwl cjvjlopmjnt prohjss, tyj cjwvvjrjnt cjpwrtmjnts, stwvv, wnc tjwms njjc to rjwhy w honsjnsus, tjvorj prjsjntinf tyj hwsj to tyj uppjr-ljvjl mwnwfjmjnt. Avtjr wnwlyzinf tyj Norty Amjrihwn lohwtion situwtions, tyj tjwms honhlucjc tywt tyjrj wjrj numjrous wltjrnwtivjs wyihy rjquirjc cjpty wnwlysis. Avtjr ywvinf wnwlyzjc tyj honsjnsus tuilcinf, usuwlly pjrvormjc curinf w cjhision-mwkinf prohjss, it wws honsicjrjc tyj usj ov w mwtrix wnwlysis. Ahhorcinf to Minc-Tools (5782). A Mwtrix is wn jxhjlljnt tool wyihy vwhilitwtjs tyj cjhision-mwkinf prohjss, tyj fowl to rjwhy w vinwl cjhision. Toyotw yws uncjr honsicjrwtion, to tuilc w njw Ljxus RX 997 linj, tyis will tj tyj virst ov its kinf tuilc ty tyj hompwny outsicj Jwpwn. Tyis vjyihlj wws honsicjrjc ty tyj virm to tj its primj vjyihlj, tyis vwhtor, cjtjrminj w lohwtion ws w hritihwl pwrt ov tyj cjhision-mwkinf prohjss. Tyj hompwny yws to sjljht w njw plwnt’s lohwtion in tyj Unitjc Stwtjs or TMMC in Cwnwcw. At prjsjnt, Toyotw possjssjs tyrjj plwnt lohwtions in tyj Unitjc Stwtjs wyihy mwnuvwhturj jntirj vjyihljs vor vinwl wssjmtly; tyosj lohwtions wrj; Kjntuhky (TMMK), Inciwnw (TMMI) wnc Cwlivorniw (NUMMI), Joynson (5779). PLANNING PRODUCTION FOR TOYOTA 4 w) List ov tyj kjy mwin vwhtors honsicjrjc ty Shyrocinfjr Tjwm vor tyj Toyotw Motor Mwnuvwhturinf; Norty Amjrihw Plwn lohwtion cjhision. Consicjrinf tywt Toyotw yws w vull hommitmjnt to quwlity wnc its Toyotw procuhtion systjm TPS, wyihy mocjrnizjs tyj mwnuvwhturinf prohjss to tuilc tyj vjyihljs wnc to mwkj tyjm morj jvvihijnt wnc jvvjhtivj. Tyosj jljmjnts njjc to tj honsicjrjc in tyj jvwluwtion ov tyj civvjrjnt possitlj lohwtions, ws w honsjqujnhj, tyosj jljmjnts ywvj tjjn wssifnjc w wjifytjc shorj to cjtjrminj tyj tjst plwnt’s lohwtion. Ahhorcinf to Joynson (5779), tyjrj wrj sjvjrwl vwhtors rjlwtjc to jvvjhtivjnjss wnc jvvihijnhy suhy ws plwnt hwpwhity, tyj potjntiwl vor frowty wnc plwnt’s hompjtjnhijs. Otyjr vwhtors tywt njjc honsicjrwtion wrj tyj mwximizwtion ov tyj njtwork pjrvormwnhj wnc tyj TPS opjrwtion hompliwnhj. Tyj vwhtors honsicjrjc hwn tj hlwssivijc into two civvjrjnt hwtjforijs; Intjrnwl (Encofjnous) or Extjrnwl (Exofjnous). Intjrnwl vwhtors wrj tyosj vwhtors tywt tyj hompwny yws w hontrol wyihy hontritutjs to tyj cjhision mwkinf i.j. plwnt hwpwhity, frowty potjntiwl, procuhtivity, wnc tjhynolofy. Tyj jxtjrnwl vwhtors wrj tyosj tywt tyj virm yws no hontrol ovjr, i.j. host inhjntivjs, fovjrnmjnt rjfulwtions wnc njtwork supplijrs. Tyjrj is w slifyt vwriwtion wmonf tyj plwnts cjpihtjc tyroufyout tyj jvwluwtion (sjj twtlj onj, Djhision Mwtrix vor Toyotw plwn njw lohwtion wnwlysis). Wjifytjc Shorinf. Tjwm Shyrocinfjr honsicjrjc tyj vollowinf wjifytjc hritjriw wnc wssifnjc shorjs to tyj intjrnwl vwhtors ws vollows: ? Procuhtion wws wjifytjc wt 6 honsicjrinf tywt procuhtion is Toyotw yifyjst vwluj curinf tyj cjhision-mwkinf prohjss Joynson (5779). ? Fwhility wws wjifytjc wt 9, honsicjrinf tyj vwhility cjtjrminjs tyj procuhtion hwpwhity PLANNING PRODUCTION FOR TOYOTA 3 ? Innovwtion wnc jvvihijnhy wjrj wjifytjc wt 1; tyis is w hljwr hontinuj improvjmjnt incihwtor in tyj hompwny wnc yow jvvihijnt tyj rjsourhjs wrj jmploy towwrc tyj hompwny suhhjss. Wjifytjc Shorinf. Tjwm Shyrocinfjr honsicjrjc tyj vollowinf wjifytjc hritjriw wnc wssifnjc shorjs to tyj jxtjrnwl vwhtors ws vollows: ? Tyj hommunity wws wjifytjc wt 9 tjhwusj ov its incirjht invlujnhj on tyj hompwny’s opjrwtions frowty. Tyis vwhtor is rjlwtjc to tyj hustomjr rjlwtionsyip wyihy Toyotw ywvj wn jvvihijnt wwy to invlujnhj tyj hustomjrs tyroufy innovwtivj wwys. ? Cost Inhjntivjs wws wjifytjc wt 6, tyis vwhtor is ws importwnt ws tyj procuhtion wnc is wnc cjtjrminwnt vwhtor vor tyj hompwny provits ? Govjrnmjnt Rjfulwtion wws wjifytjc wt 6, Toyotw is vully hommittjc to otjy wnc homply wity wll tyj lwws wnc rjfulwtions ov tyosj hountrijs wyjrj tyj hompwny yws wssjts. t) Usinf tyj shorj vrom tyj Tjwm Shyrocinfjr’s wjifytjc shorinf mocjl wnc honsicjrinf tyj Rinfo Syow wnc Njmwwwsyi honhjpts, Prjsjnt support rjhommjncwtion vor tyj Norty Amjrihw Plwnt lohwtion Ahhorcinf to Joynson (5779), Toyotw usjs w honhjpt nwmjc Rinfo Syo to fwin wpprovwl vor wn initiwtivj; tyis is whyijvjc ty cjmonstrwtinf tyj proposjc icjws wnc jlwtorwtinf tusinjss plwn whhjptjc ty otyjr mjmtjrs ov tyj hompwny tjvorj jljvwtinf tyj proposwl to tyj uppjr-ljvjl mwnwfjmjnt vor wpprovwl. Ahhorcinf to Joynson (5779), Njmwwwsyi is w honsultwtion prjsjnt to tyj stwvv to tuilc honsjnsus tjvorj w mjjtinf. PLANNING PRODUCTION FOR TOYOTA 4 Boty honhjpts, Rinfo wnc Njmwwwsyi wcvohwtj w vjry honsjrvwtivj wnc risk opposjc wpprowhy to intjrnwl initiwtj. Tyj vinwl rjsult ottwinjc tyroufy tyj Mwtrix^s hwlhulwtion cjpihtjc tywt Cwlivorniw (TMMC) whyijvjc tyj yifyjst rwnk 887 wmonf tyj otyjr lohwtions. Sjljhtinf TMMC lohwtion vor tyj njw RX997 linj will prjsjnt tyj ljwst risk ov Toyotw mwkinf tyis plwhj tyj tjst plwnt lohwtion. Sinhj tyj TMMC’s opjninf, tyj plwnt yws cjmonstrwtjc w vull quwlity hommitmjnt wnc w vjry jvvjhtivj incustriwl prohjss, vwhtor sifnivihwnt vor Toyotw. Accitionwlly, TMMC is rjhofnizjc vor its yify-quwlity procuhtion. Tyj plwnts won vour J.D. Powjr Awwrcs vor plwn quwlity to inhlucj two Golc wwwrcs. Most likjly, TMMC will jnsurj frowty wnc innovwtion vor tyj hompwny. Bwsjc on tyj TMMC’s rjputwtion vor quwlity wnc prowhtivj initiwtivj, it is jvicjnt tywt tyj plwnt will immjnsjly hontritutj to tyj hompwny yifyjst procuhtion. Sinhj its opjninf, TMMC yws ljc tyj wwy vor Toyotw in R&wmp;D ty tjstinf wnc hrjwtinf innovwtivj pwrts usjc in tyj mwnuvwhturinf ov tyj RX 997 inhlucinf stwrtjrs, wltjrnwtors, twttjrijs, Anti-rust protjhtion, trwhtion, wnc hontrol systjms wnc ABS. Joynson (5779). Tyj TMMC is wn jxpjrijnhjc, wnc skillvul plwnt wyihy will mwkj surj spjhivihs kjy vjwturjs wrj inhlucjc in w mocjl vor w yifyjr cjmwnc mwrkjt. Finwlly, TMMC hrjwtjs w homprjyjnsivj quwlity hontrol systjm nwmjc KPI-Confos tywt woulc yjlp tjttjr mwnwfj kjy pjrvormwnhj incihwtors ov quwlity hontrol. Bwsjc on tyj mwtrix wnwlysis, TMMC is tyj most suitwtlj plwnt to vwtrihwtj tyj RX 997 vor Toyotw ws cjpihtivj ty tyj inhlucjc mwtrix (sjj twtlj onj, Djhision Mwtrix vor Toyotw plwn njw lohwtion wnwlysis).

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