Mini Case Paper #1-Building “World Car”

The case describes the details about the production process of Toyota and the principles they are following, like JIT & Jidoka in Toyota Production System (TPS), heijunka & kaizen. How they have control the cost, maintain quality through process

One reason that Americans prefer foreign-built cars is foreign-built cars offer better reliability and are better built to last. For example, just about everyone knows someone who is driving an old Toyota that is

In the book, The Toyota Way, Jeffery Liker provides an in-depth account of, not only the tools and methods of Toyota’s Production System, but also a broader explanation of the principles at work in the Toyota culture. This philosophy of manufacturing can be summarized through two important pillars: “Continuous Improvement” and “Respect for People.” These pillars help define Toyota’s approach to doing business, were the focus is on continuous learning and embracing change. By incorporating this ideology and its 14 principles into its manufacturing operations, Toyota has become the greatest manufacturer in the world. In this essay, I will provide a synopsis of Toyota’s 14 principles and also offer my own account of lean manufacturing at CNH Industrial.

The last several years were also tumultuous for the U.S. auto industry. After dominating the market for decades, American automakers had grown complacent about product development. At the same time, rising gas prices and uncertainty about the economy caused consumer preferences to shift from SUVs to more fuel efficient vehicles. Foreign competitors entered the U.S. market offering more reliable, higher quality and more fuel efficient vehicles at a lower price and began to steal market share away from American automakers. In order to remain competitive, U.S. automakers need to focus on increasing production efficiencies and developing innovative product offerings. Firm Analysis

Yet, the public perceptions may be at odds with the objective measures. In Toyota’s case, there have been indications that the quality level of the company’s products had fallen off in a span of few years. There are changes that have taken place during a period when most of the company’s close competitors, such as Fords, were producing more cost-effective and efficient automobiles. In addition, the company’s unique production approach and the emphasis on continuous improvement and learning coupled with a matrix structure are key reasons for the company’s leadership in the cat manufacturing industry. Toyota’s Production Systems (TPS) was founded in the principles of “Just-in-time. This approach has less opportunity for slack resources and focuses of the benefits of efficiency on the part of employees and reduction on waste resources (Griffin and Gregory, 5). Further, Toyota Company enacts its production system with the assistance of its human resources strategies, culture, and organizational structure. Toyota’s Production System emphasizes on learning and modesty when it comes to assessing past success and differentiated them from

Much like any manufacturing, the American auto industry is directed to global competition. As declared beginning, the car was first developed in Germany and France. In 1995, the United States and Japan made a business contract that supplied more seller outlets and provided natural replacement part is selling in each other’s countries, (Nauss 1995). This makes auto components and replacement auto pieces for Japanese cars manageable to reach in the United States and vice versa. Not only does this supply for more USA works, but it more supplies for more Japanese operates in the car industry,(Nauss

The Japanese automakers such as Toyota are dangerous competitors for the General Motors Corporation and the have scrambled for quite a large part of market shares if the GM in America and the global markets. The Japanese competitors cut down the cost tremendously by lean production. However, the production cost is still high in the General Motors Corporation. And the inefficiency of production cause the high price of its automobiles and the market share shrinks accordingly. (Coffey, 2005) Especially in face of the financial crisis, the General Motors Corporation has much to learn form lean production to cut down its production prices.

The value of this source to the topic at hand is the book’s heavy focus on the automobile’s progress over time, in the case of the pursuit of fuel efficiency and practicality over time, to the eventual issue of the environment. The limitation of this source is the book’s primary focus on the history of the

Jaguar is one of the most popular automobile company in the world. The Jaguar Company was earlier owned by Ford Group and now been over taken by Tata Motors. The company manufactures cars and other vehicles that are commercial and non commercial. The most successful model of the Jaguar Company is Jaguar S-type. The company has been applying the change process from last so many decades. The main idea behind applying lean production system is to decline wastage and errors that actually adds to the cost of production. In addition the Jaguar Company applies JIT or Just in Time technique wherein the assembling of automobiles takes place just when the order comes in. Finally Kaizen technique is applied that help in achieving continuous improvement in the business process.

The Japanese could modify their manufacturing process with low-cost skilled labor along with raw materials obtained at a cheap rate. The Japanese focuses on quality products for their customers and as the gas prices increased demand shifted to smaller vehicles where the Japanese were already designing and rolling out to customers. The aggregate effect of these changes improved Japanese company’s ability to market their

This paper deals with the production systems of two major leaders in the automobile market. Mass production is briefly touched up on and its advantages and disadvantages are discussed. Lean production is the emerging trend, which talks about minimizing waste and increasing production. We have also thrown light on when to use lean and mass

Lean production is known as lean where the aim is to remove waste, which is known as Muda a Japanese word which means waste, where the first company to use lean was Toyota. The company caught the “world attention in 1980” (Liker, 2004) as cars where lasting longer than American cars and Toyotas finical turnover was increased as well its shares increased by 24% when the market was crashing. Toyota production system (TPS) and lean production are similar as the aim is to remove waste and make the best quality product aswel to make the product the most valuable as this will make the production line will only have adding cost to the product none adding value. There is three types of waste the first waste is Mura a waste caused due to variation between products which can cause delay and further costing. The second waste is Muri which is cause by overworking employers to the maximum to the point where they

* Political/Legal: The political portion of the general environment is often overlooked because businesses and people alike think that it is enough to follow the laws and abide by regulations set forth by the government. This is incorrect. Many automobile companies such as Chrysler operate in foreign countries and look to export their products to foreign countries as well. The laws and regulations in these foreign countries have to be navigated and understood just as precisely as those in the home country. In the case of Chrysler, when it was acquired by Daimler-Benz, the company had to develop a whole new outlook on its business practices. Taxation policies had to be revamped polices on the export, import, and manufacturer of

Some of the main issues that companies in the automobile industry are currently facing are, “reporting and regulation, sustainability and the environment, plant location, closures, and relocation, emerging market companies, evolving distribution channels, consumer trends, private equity investment, improving operational efficiencies, market entry and expansion, and business operating model structure” (“Automotive,” n.d.). Issues such as reporting and regulation are often results of the government attempting to regulate the industry because they feel the current situation is not adequate. Along with this, many companies are concerned about the sustainability of the company, as well as the environment. With this in mind, some companies have made changes in their operations to make an attempt to preserve the environment. However, other issues in the industry such as plant location, closures, and relocation can be the result of other aspects of society related to government restrictions, downturns in the economy, and lack of space available with an increasing population. On the contrary, emerging market

Lean manufacturing originated long before Toyota and Ford, however the thought that it originated with Toyota is flattering since they are the ones who perfected it. By creating the Toyota Production System (TPS), Toyota found a better way to produce large quantities of product efficiently with eliminating the waste factor and while cutting down cost. Taiichi Ohno a former Toyota vice president promoted the idea of JIT (Just-in-Time) which means “producing the necessary units in the necessary quantities at the necessary time.” (Monden) Which leads to Toyota’s ultimate goal in the TPS is to improve productivity for better return in investment. To have continuous flow in a production system Toyota sought out to achieve the concept of JIT and autonomation . Since the TPS is what creates the parts who monitors the JIT system? The kanban system which is an informational system that controls quantities being produce in each process. As the discussion carries on throughout this paper about Toyota and their use of the kanban system the topic