Toyota Motor Manufacturing

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Toyota Motor Manufacturing, USA, Inc Case Analysis * Main and sub ideas of the case. The main topic of the case was the problems caused by defective or damaged seats. TMM USA's seat problem was threefold. The first was the actual defects with the hooks and the damaged caused by cross threading by employees when installing the seats. This problem led to the second problem, which was the departure from the Toyota Production System (TPS) when dealing with the seat problem. Rather than fix the problem with the seat when it happened, they continued with the car's production and worried about the seat afterwards. And this led to the third problem, a build up of cars with seat . required to maintain production numbers. Ø What is the real problem facing Doug Friesen? The real problem facing Mr. Friesen is the fact that cars with seat problems are sitting in the overflow lot way too long, which means that the run ratio had dropped from 95% to 85%. Thus there appears to be a problem with the handling of cars through the off-line process. Mr. Friesen needs to determine whether the cause of increase in the number of cars sitting in the overflow lot is caused by the process used for defective and damaged seats, the overall off-line process, or the supplier's ability to meet TMM USA needs Toyota Motor Manufacturing USA, Inc. (TMM) encountered product proliferation problems with defective seats due mainly to the company’s deviation from its normal production plan and lack of a recovery system. In April 1992, TMM’s run ratio dropped from 95% to 85%, meaning that 45 less cars were being produced per shift, which in turn translated into overtime for the workers. As a result, too many cars needed off-line operations of one type or another before they could go on to shipping. The main source of the problem was the seats defects in the cars, in which case the car would go through the assembly line with the defective seat still in it. Then the car would proceed to the Code 1 clinic...
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