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Lexus and Production Capacity

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Week 10 Toyota Production Team Assignment
Group Category Group Week 10
Group Name Hawks
Instructions

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 …show more content…

Each block of 5,000 units of capacity will also cost $5M per year to maintain, even if the capacity is unused.
Assume that the number of units actually sold each year will be the lesser of the demand and the production capacity. Marketing has provided three vehicle estimated demand scenarios with associated probabilities as follows:
Demand
2003
2004
2005
2006
2007
Probability
Low
10,000
10,500
11,000
11,500
12,000
0.25
Moderate
15,000
16,000
17,000
18,000
19,000
0.50
High
20,000
24,000
26,000
28,000
30,000
0.25 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 reduced?
c. It is now fall 2011. 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? Do some online research; it's part of improving your attainment ofInformation Literacy, one of the UMUC MBA Competencies. Exercise 4: Assessment of Toyota’s Current Regional Production Strategy
North America Source:www.worldatlas.com/webimage/countrys/na.htm, a. After doing necessary research online or otherwise, document and evaluate the current distribution of Toyota production in North America. Here be sure

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