Toyota Case Study Analysis

1553 Words Oct 18th, 2010 7 Pages
Toyota

From:
Toyota in 2009:
The Origin and Evolution of the World’s Leading Automobile Manufacturer by: Charles Hill

The Toyota Case study by Professor Hill includes several very interesting items for consideration. Among the most notable is the difference between Toyota’s manufacturing processes and those in use by the majority of the automotive industry, including the large automobile manufacturers in the United States.
There are several important items that are integral to Toyota’s manufacturing system, just-in-time inventory, long-term partnership agreements with major suppliers, team-based production, and a focus on identifying issues/defects at as early a point in the process as possible. Each of these components provides an
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This change in supplier model enabled Toyota to develop a more productive, quality-focused supply chain than its larger competitors. It also enabled Toyota to leverage the advances made by its suppliers, improving productivity, profit, and quality.
By improving quality and increasing product variety Toyota is able to increase sales; reduced costs yield higher profits on those sales. The improved relationship with suppliers brings them into a partnership in which all parties benefit, further improving the overall product and reducing costs.
The improvements made by Toyota were developed due to a combination of external influences and internal ideas. In fact, this is one area where Toyota has differentiated significantly from its main competitors – they have embraced new ideas from their customers and partners. These new ideas, some from Toyoda Kiichiro and many from Ohno Taiichi, led to the major changes in Toyota’s production systems including the development of the ability to change stamping dies very quickly, which led directly to small production runs and just-in-time inventory, team-based production, and the “kanban” system.
After studying the mass production systems in use at American automobile manufacturing facitlites Ohno Taiichi determined that there were five major

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