the case study of Toyota
Quality Management
2nd Half | Fall 2013
Prof. Sónia Dahab
Toyota: The Acceleration Crisis
Francisco Vasconcelos | Inês Ferreira | Miguel Peñalta | Tomás Mourão
Agenda
1. Case Summary
2. Current Issues
3. Solutions from Toyota
4. Toyota Now
5. Discussion
Quality Management | Fall 2013
2
Case Summary
Industry Analysis – brief description
•
The global automotive market is highly concentrated – fierce competition •
The top four manufacturers:
Toyota, GM, Chrysler and Ford – C4 = 37.6%
•
Japanese automakers were not subject to expensive pension funds (legacy costs), unionized workers, and the insistence that consumers would always demand big vehicles – competitive
advantage comparing to the U.S market
Quality Management | Fall 2013
3
Case Summary
Toyota Background
•
The firm Toyota Motor Company was founded in 1937
•
Currently is one of the leading automobile manufacturers in the world •
High reputation for its methods of continuous self-improvement
•
Toyota’s products are acknowledge for their quality and reliability
Quality Management | Fall 2013
4
Case Summary
Toyota Background
•In 1982, it formed a joint venture with General Motors seen as a learning opportunity - New United Motor Manufacturing Inc.
(NUMMI)
•In 1988, Toyota produced more than 5.2 million cars
BUT… aggressive penetration in other countries (Brazil, China or India) strained the company’s resources, led it to misread the market, to
produce faulty products and to built underutilized plants
Quality Management | Fall 2013
5
Case Summary
Why was Toyota facing a recall crisis?
•Toyota has been under a lot of pressure as a result of the increasing number of complaints over defective accelerator pedals being
reported
•Signs of the coming recall crisis began when NHTSA opened an investigation towards Toyota’s Camry models
•Four year later, the largest recall occurred: nearly 9 million
2nd Half | Fall 2013
Prof. Sónia Dahab
Toyota: The Acceleration Crisis
Francisco Vasconcelos | Inês Ferreira | Miguel Peñalta | Tomás Mourão
Agenda
1. Case Summary
2. Current Issues
3. Solutions from Toyota
4. Toyota Now
5. Discussion
Quality Management | Fall 2013
2
Case Summary
Industry Analysis – brief description
•
The global automotive market is highly concentrated – fierce competition •
The top four manufacturers:
Toyota, GM, Chrysler and Ford – C4 = 37.6%
•
Japanese automakers were not subject to expensive pension funds (legacy costs), unionized workers, and the insistence that consumers would always demand big vehicles – competitive
advantage comparing to the U.S market
Quality Management | Fall 2013
3
Case Summary
Toyota Background
•
The firm Toyota Motor Company was founded in 1937
•
Currently is one of the leading automobile manufacturers in the world •
High reputation for its methods of continuous self-improvement
•
Toyota’s products are acknowledge for their quality and reliability
Quality Management | Fall 2013
4
Case Summary
Toyota Background
•In 1982, it formed a joint venture with General Motors seen as a learning opportunity - New United Motor Manufacturing Inc.
(NUMMI)
•In 1988, Toyota produced more than 5.2 million cars
BUT… aggressive penetration in other countries (Brazil, China or India) strained the company’s resources, led it to misread the market, to
produce faulty products and to built underutilized plants
Quality Management | Fall 2013
5
Case Summary
Why was Toyota facing a recall crisis?
•Toyota has been under a lot of pressure as a result of the increasing number of complaints over defective accelerator pedals being
reported
•Signs of the coming recall crisis began when NHTSA opened an investigation towards Toyota’s Camry models
•Four year later, the largest recall occurred: nearly 9 million