Toyota Operations Improvement Plan Essay

3376 WordsAug 25, 201514 Pages
Process Improvement: Operations Improvement Plan Jordan Barnes MBA 6022 I. Process Identification Background of The Issue In the 1960's Toyota linked together quality, customer satisfaction, and profit. These became pillars for Toyota's foundation and the company's baseline for growth and expansion. In 2009, the company's recalls started with what was deemed a floor mat issue. “Over the next four months, the company recalled 3.4 million more vehicles in three separate recalls over and above the initial 3.8 million, for a total of more than 7 million” (Cole, 2011). The issues were linked to different things; Sticky gas pedals, more floor mat problems, software glitches, and electrical problems. But one fact remained, the percentage…show more content…
“The communication from Toyota to its dealerships was nonexistent in the sense that we were learning things as we read about them in the press.” (Brooks, 2010). To fully understand how this disconnect can occur, you have to look at the organizational structure of Toyota. Such as most family owned big corporations, Toyota has a hierarchy of power. Toyota’s board of directors is composed of 29 Japanese men, all of whom are Toyota insiders. As a result of its centralized power structure, authority is not generally delegated within the company; all U.S. executives are assigned a Japanese boss to mentor them, and no Toyota executive in the United States is authorized to issue a recall.” (Toyota Struggles With Organizational Structure, n.d.). This makes communication one-sided as information flows up and decisions are made with no information coming back down. Often times people are reluctant to send the bad news up for fear of the consequences or the lack of response. As you can see, non-communication affects the people on the bottom of the hierarchy directly and then ultimately the higher level management. Toyota saw first hand that not responding to the people who had the most contact with consumers (The dealers) quickly can cost you billions in the long run. This may be a cultural issue so changing this process may take longer than it should. After a plan is drawn up, it should
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