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Toyota - Process Identification

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Toyota - Process Identification
Process Identification
Abstract

Signs of the impending recall crisis began as early as 2006 when the National Highway Traffic Safety Administration (NHTSA) initiated an investigation into driver reports of “surging” in Toyota’s Camry models. This investigation was closed the next year declaring that there were no defects. Known in the industry for their quality and reliability, Toyota would silently recall almost nine million Toyota and Lexus models due to the sudden acceleration problems. Because of the lingering reaction in dealing with these problems, Toyota’s leadership had been highly ridiculed, so now they had a big job in identifying the solution that would make sure of the safety of their vehicles and reinstate consumer confidence, as well as protecting the Toyota brand and salvaging the dropping share prices.

Process Identification

From its humble family business origins, Toyota had modernized management, manufacturing, and production philosophies. Many business scholars applauded its values and business methods and, as a result, the Toyota Way was adopted by many businesses in a wide range of industries. The Toyota Way mandates planning for the long term; highlighting problems instead of hiding them; promoting team work with colleagues and suppliers; and, perhaps most importantly, instilling a self-critical culture that fosters continuous and unrelenting improvement. From the assembly line to the boardroom, Toyota’s principles urge employees to strive for perfection (Greto, Schotter, & Teagarden, 2010, p. 3).

Toyota weathered through a lot of problems over the years from the accelerating recall to the engine oil sludge, but found their way to sustain and grow. Mr. Toyoda had to sort out what combination of structural, cultural, or strategic challenges led to the current recall crisis. Clearly, Mr. Toyoda had much to do to fix the problems of the recent past, and restore confidence in his company and the brand moving forward. More



References: Deming, W.E. (Dec 1987). Transformation of Today’s Management. Executive Excellence; 4, 12; ABI/INFORM Global. Pg. 8. Greto, M., Schotter, A., & Teagarden, M. (2010). Toyota: The Accelerator Crisis Case No. A09-10-0011. Thunderbird School of Management, 24. Greto, M., Schotter, A., & Teagarden, M. (2010). Toyota: The Accelerator Crisis Case No. A09-10-0011. Thunderbird School of Management, 24.

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