An automobile accident involving a Lexus (subsidiary of Toyota) vehicle resulted in the deaths of four people in California on August 28, 2009. Mark Saylor took his car into the Bob Baker Lexus dealer in El Cajon, CA to have it serviced and they provided him a loaner 2009 Lexus. While Saylor was driving the Lexus loaner it suddenly accelerated and he couldn’t control the car. One of the three other occupants in the car called the police on their cell phone to report that the car’s accelerator was stuck. The Lexus rear ended another vehicle before going down an embankment and bursting into flames at the bottom of the San Diego River killing everyone inside the car. According…
On September 29, 2009, Toyota recalled 3.8 million U.S. vehicles, and on January 16, 2010, another 2.3 million more were recalled for what was determined years after the initial complaint of a “stuck accelerator pedals.” (Greto, 2010) After Toyota’s executives were called to congress and forced to stop selling their cars, the U.S. fined Toyota with a 16.4 million dollar civil penalty. In addition, Toyota Motor Corp., in December 2012, agreed to pay $1.1 billion to settle a class-action lawsuit stemming from complaints of unintended acceleration in its vehicles that soured its reputation for quality and undermined its sales globally. (Ramsey, 2012) Three processes were identified within Toyota that will benefit from improvement: 1) Leadership, 2) Quality Management, and 3) Communication.…
“We deeply regret the inconvenience and concern caused to our customers and others by our recent recalls of multiple vehicle models across multiple regions.” – Aki Toyoda, the CEO of Toyota Motor Corporation1 (Toyota website). Beside the regretful expression we can learn from this public release, it also implies that Toyota, one of the world’s largest automakers, is suffering in their recent recalls of millions of vehicles round the world. Safety recalls are common issues occurring in the automobile industry, few may have long run impact on the automakers involved if handled correctly. However, in this case, the disaster engulfing Toyota is of a different order (The Economist, Feb.6, 2010). Toyota’s quality brand has been scrutinised and at risk due to its sedans’ safety problems that have sequentially emerged recently.…
Processes need to be constantly analyzed in order to see if they are operating at full potential. The Toyota Production System (TPS) is one of the most effective processes in the world but it was not fully integrated into foreign market plants. Following is a refined problem statement elaborating on the prior one: The TPS process is not fully in place in all plants across all markets. A fishbone diagram and a flowchart have been provided in order to get to the root of the problem and develop a process improvement plan as well as a complimenting scope. In order for Toyota to remain successful and be prevalent well into the future, the TPS rollout process must be completed smoothly and full-heartedly into all foreign markets.…
Toyota used to sit on top of the world. It basked in the reputation of building high-quality cars efficiently. It enjoyed unprecedented growth, even surpassing General Motors as the largest car manufacturer in the world. But all of that came tumbling down with reports that cars were accelerating out of control, careening down highways, and putting everyone’s lives in danger. There was even a recording of a 911 call from an off-duty policeman who lost control of his car and died in the ensuing crash. Toyota responded with a recall of historic proportions—nearly 8 million cars in the United States and 1.8 million in Europe. It even suspended sales of brand new models, including the best-selling Camry and Corolla, until the vehicles could be repaired. But still, there was confusion about what was causing the problems—was it the floor mats, the braking system, the software controlling the engine, or something else? Conspiracy theorists argued that Toyota had no clue what was causing the sudden acceleration and that their recall was basically worthless.…
Toyota abandoned its mantra of quality, and aggressively seek market share. Toyota expended rapidly in order to become the top global manufacturer, but its quality began to decline and also leading to its reputation beginning to slip. Toyota developed a pattern of slow reactions and secrecy in regards to safety concerns and defects in its vehicles. When definitive causes were found, their marketing team should have publicized the investigation to show that the company was listening to consumers and in complete control of the situation. Lentz said Toyota 's recall crisis taught the automaker need to be "much more transparent, both inside and outside the company." "You have to be able to listen to your customers, not just hear them, but listen to what they 're telling you -- and be quick about it." (Rechtin, 2014)…
“Since Jan. 27, NHTSA has received complaints of 13 more deaths and 10 injuries in U.S. crashes, since 2005, that allege sudden acceleration as the cause in Toyota vehicles,” chronicles the Detroit News. “That brings to 34 the total number of deaths since 2000 allegedly related to unintended acceleration in Toyotas.” “In addition to the fatalities, federal regulators said 22 people reported injuries from unintended…
There were several advantages of Toyota’s manufacturing system when compared with conventional manufacturing system. Ohno Taiichi was the person responsible in helping Toyota shift from the established method of manufacturing automobiles set by Ford. The basic philosophy was to produce everything in mass quantity to gain maximum economies of scale. The logic was to spread the fixed cost over the production line and benefit from lower cost. Another characteristic of this philosophy was to make each worker perform a single task only. This premise was supported by the fact that if one worker performs the same task over and over again then eventually he or she would get faster in doing so. Ohno Taiichi was able to identify several flaws in this philosophy. Firstly, mass production of same item meant that what was not used had to be stored in warehouses. This resulted in high storage cost. At the same time it tied up inventory in unproductive uses. Secondly, if anything goes wrong in initial machine setting, that would mean massive production of defective parts. Thirdly, if each worker is assigned to do only one task then that resulted in quality mismanagement. Fourthly, this philosophy created the problem of employing specialist at extreme ends of division of labor. There were many tasks that could have been performed by one person. Lastly, mass production system created hindrances in making customizable products.…
Toyota believes in order to maintain its highest level of quality; their vehicles should be produced where the demand exists with the same level of quality no matter where the manufacturing plant is located. Among the hurdles that must be…
i. Toyota hopes that by introducing a smaller car they will differentiate themselves from Detroit cars, which at the time are big heavy cars loaded with horsepower and options.…
The Ford Pinto case study clearly presents an unethical and immoral practice that shows corporate greed for a positive bottom line is more important than the value of human life. Along with the issue of greed is the need to outdo the competition to be the best in the automobile industry. Together these issues cloud the judgment of Ford’s management. The use of cost-benefit analysis to determine if the flaw in Ford Pinto automobiles is worth the financial risk in comparison to the value of human life is unconscionable and indefensible. Because of this cost-benefit analysis, Ford made a costly decision not only in terms of money but also human life, pain and suffering for victims and their families, and to its own reputation. Ford chose to pay for possible lawsuits in lieu of recalling and repairing the Ford Pinto. Many deaths and catastrophic injuries were the result of Ford’s unethical decision that resulted in dozens of lawsuits and also led to the three reckless homicide indictments against Ford Motor Company. If Ford had the right business ethic and moral integrity to put consumer safety first, instead of profit and competition, there would have been no loss of life or financial suffering because there would not have been lawsuits.…
16/03/2010, http://www.usatoday.com/money/autos/2010-01-29-toyotacts29_CV_N.htm 6. Linebaugh, K. & Shirouzu, N., 2010, Toyota Halts Sales Over Safety Issue, accessed 20/03/2010, http://online.wsj.com/article/SB20001424052748704905604575027671658649384.html 7. Pedal Recall, accessed 25/03/2010, http://www.toyota.com/recall/pedal.html 8. Toyota Motor Manufacturing, Alabama, Inc. (TMMAL), accessed 22/03/2010,…
3) Where if at all, does the current routine for handling defective seats deviate from the principles of the Toyota Production Systems?…
I fear the pace at which we have grown may have been too quick. I would like to…
Case Study for MGMT The Case Study “Did Toyota’s Culture Cause Its Problems?” illustrates the slow reaction to safety problems and the arrogant culture of Toyota regarding the issue of unintended acceleration (Robbins &Judge 2013). The key issues in the case study are the arrogant culture of Toyota, miscommunication, groupthink and poor human resource management. The problems in Toyota began with the recall of 10000 Laxus Cars in 2000 (Finch 2010, p 475), followed by a series of recalls for different models in 2010 (Robbins & Judge 2013). These recalls associated with the unintended acceleration gave birth to lots of questions regarding the countermeasures of Toyota towards safety and the culture of the organization.…