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Toyota Motor Manufacturing, U.S.A., Inc.

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Ronya Kobrosli

on 1 October 2013

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Transcript of Toyota Motor Manufacturing, U.S.A., Inc.

Toyota Motor Manufacturing, U.S.A., Inc.
Christina Longo
Ronya Kobrosli
Toyota Production System (TPS)
Alternative 1-4
Pros and Cons
Toyota Today
How can Doug Friesen, the manager of assembly at Toyota, solve the problem of cars being assembled with defective or problematic seats without hurting TPS line utilization?
Toyota Production
System (TPS)
"Good thinking, good products."
Reduce costs
Eliminate waste and overproduction
1) Just-In-Time (JIT)
What? How much? When?
2) Jidoka
Production problems
Alternative 1
Involve TMM quality control with Kentucky Framed Seats (KFS)by going to KFS to identify the source of the problem and correct it on site. As well as positioning quality control member(s) at the seat arrival station before seats enter the facility.

Follows Toyota's philosophy
Stops problems before entering facility
Prevents problem from leaving KFS
Eliminates cost to fix and return
Involves Toyota more with manufacturer
KFS is geographically close to TMM ensuring effective pull system
Eliminates stopping the line
Keeps work flow steady
Majority of seat problems come from the manufacturer
Not necessarily long-term commitment
Costly to create and maintain new quality control positions
KFS could feel invaded and lack of trust
Time consuming
KFS could refuse to cooperate
Alternative 2
Maintain an on-site supply of safety stock for when unexpected problems arise.
Resources available on site to reduce time wasted
Enables smoother flow of goods in the production process
Reduced disruption time
Short- term fix
Contradicts TPS goal to eliminate waste
Contradicts the concept of lean and JIT
High cost of storing and maintaining stock
Not a long-term fix
Demanding of space
Could backfire in terms of time as seat needs to be physically matched to car
Too many variations of seats, which would demand more storage space
Alternative 3
Employ a different seat manufacturing company who can keep up with multiple seat varieties and has a low rate of manufacturing defects
Could reduce number of issues with seats
Could keep a more efficient production line
Possibility to find a less expensive or better quality manufacturer
majority of problems came from the seat manufactures end
Expensive to implement change
Lose existing relationship with KFS
Establish a new relationship and trust
Potentially regret decision to switch manufacturer
Potentially unable to find reasonable price or quality
KFS is geographically close to TMM, current pull system effective
Higher cost of implementing pull system from further location
Alternative 4
Reduce the number of seat variations offered
Increase chance of a non-defective seat being available
Lowers the demand on KFS
Not as many problems until TMM increased demand of seat variety
Short-term fix
"Better cars for more people"
Contradicting position of meet diverse customer preference
Restricts availability to change in future
Less variety for consumers
Eliminates expansion of product development
Alternative 1

Involve TMM quality control with Kentucky Framed Seats (KFS)by going to KFS to identify the source of the problem and correct it on site. As well as positioning quality control member(s) at the seat arrival station before seats enter the facility.

KFS has been a reliable supplier to date
Established strong trustworthy relationship
Problem will be identified at root
Time and cost will be reduced
Ensuring only quality seats enter the plant
Follows TMM's 5 why philosophy
Stronger pull system
Short- term
Designate an employee(s) to the KFS plant to manage seat correction and quality control

Designate an employee(s) to TMM receiving dock
Identify the problem/ all possible problems and solve immediately

Monitor KFS continuously
Implement Toyota's TPS at KFS and throughout their supply chain

Integrate TPS training to KFS employees to identify problems within the line so solutions can be identified and fixed quickly
Toyota Today
TMMK was designated as a “zero landfill facility” in 2005

Toyota announced that TMMK would begin production of the Lexus ES sedan beginning in 2015, adding 50,000 vehicles annually and 750 jobs to the facility

Toyota is the 11th largest company in the world by revenue, and 3rd largest automobile manufacturer after GM and Volkswagen

In July 2012, the company reported it had manufactured its 200-millionth vehicle, they employ over 326 thousand people worldwide

From November 2009 to 2010, Toyota recalled more than 9 million cars and trucks worldwide

In Oct. 2012, they had to make a recall of just under 7.5 million vehicles worldwide due to problems with the power window switches.

Toyota is still an industry leader in manufacturing and production, and still focuses their strategies on Lean Manufacturing and Just In Time.

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