SlideShare a Scribd company logo
1 of 17
TOYOTA MOTOR MANUFACTURING INC.
U.S.A
Prepared By –
Ashwin Mehta – 313
Pratik Mehta – 314
Ishaan Parekh – 315
Ankit shah – 317
Dishank Shah – 318
Fenil Shah - 319
Agenda
 Current Scenario
 Problems Faced
 Analysis
 Suggestions and recommendations
 Risks and contingencies
Current Scenario
• Toyota Motors Manufacturing (TMM) faces increasing
problems with its seat supply.
• Kentucky Framed Seat (KFS), is a single seat supplier
for TMM.
• KFS is responsible for the material flaws and missing
parts as the major encountered defects.
• These problems are increasingly occurring with an
increase in varieties and demand for the seats.
Problems Faced
• Product proliferation problems with defective seats.
• Company’s deviation from its normal production plan and lack of
a recovery system.
• Run ratio dropped from 95% to 85%.
• This means 45 less cars were being produced per shift.
• This translated in overtime of workers.
• Too many cars needed off-line operations of one type or the
another before they could go on shipping.
Questions Raised
• Will the sales company get cars on time as promised?
• What does it mean to implement JIT and Jidoka
principles to this situation?
• Is TMM handling seat defects correctly on the line?
• Is the current routine for handling seat-defect cars
really a legitimate exception to TPS, or could it be a
dangerous deviation from TPS?
• Is there a way to kaizen TMM’s off-line routine?
Analysis
The Problem
 Rise in number of Camry’s with defective seats,
leading to a reduced run ratio at the TMM
Georgetown Plant.
 On April 27th the run ratio was down from 95% to a
damaging 85%.
 Decrease in per-shift production is close to 50 cars.
 Producing the missing cars via overtime capacity
will cost TMM in excess of $16,000 per shift.
 This translates to around $8.4 Million per year
considering two shifts and a 5-day workweek.
Stations 353
Employees 769
Wage/Hour $ 17.00
Overtime $ 25.50
Cycle Time 1.05 Cars/Min
Shift Length 525 Minutes
'Productive' Minutes 450
Run Ratio
100% 473
95% 449
85% 402
'Lost' Cars Per Shift (95% to 85%) 47
Cost per Hour of Production Overtime $ 19,610
Time Required to Produce Add'l Cars 50 Minutes
Cost to Produce Additional Cars $ 16,215
The Reason
 Product proliferation
 From 3 styles x 4 colors, to 36 different seat styles.
 Seats need to match each particular car, therefore stock
parts cannot be used.
 Sequential pull with a 57 sec line cycle time means
response time for KFS to come up with the next seat is
minimal
 Greater variety of styles and heijunka concept means more
frequent changes in seat line setup
 Suppliers operate under JIT
The Root Cause
 TMM did not internalize the TPS philosophy. It only
emulated the systems from Toyota, Japan.
 KFS balanced capacity to meet TMM Production. It
did not have the TPS implementation to respond to
the product proliferation.
 It only learnt system from the Japanese seat suppliers,
not the underlying philosophy.
 Not allowing the seat problem to be solved in real time
but just tagging it for storage in the rework area is a
gross violation of the jidoka concept.
The Snowballing Mistakes
 Thinking that it is too expensive to stop the line. Andon pulls
don’t stop the line at once. 353 workstations would slow down to
a halt depending upon time taken for rectification.
 Illegible re-order form instead of a proper kanban system might
be leading to slower turnaround from KFS
 Additional time pressure on KFS would further interrupt their
production line, deteriorating quality further
 KFS is blamed for the seat defects without going for the Five
Why’s to determine the root cause of the problem
 KFS being treated as a supplier as opposed to the partnership
model JIT actually professes
Suggestions
• Given that 88% of seat defects is from KFS, TMM needs to participate
in KFS’s QC Process, perhaps by placing its own personnel
• Defective items need to be fixed on assembly line and not postponed
• Design review needs to be done to see if so many different seat styles
are actually necessary
• Heijunka system may be avoided given the wide variety. This would
ensure that a replacement is at hand within 1 minute
• A drum-buffer-rope model of intimating KFS of replacement stock as
soon as it is discovered needs to be installed. A contingency kanban
may be designed.
Suggestions (Contd.)
Seat spec recvd
at KFS
Seat setup as per
spec on KFS
Assy Line
Seat inspected
by TMM QC
person at KFS
Seat despatched
to TMM
Seat recvd at
TMM (different
dock for
replacement)
Seat carried
above TMM
Assy Line
Seat installed
in the car
Seat checked
for defect
during
installation
If seat found
defective,
andon cord
pulled
If seat needs
replacement, a
kanban sent to
KFS
Car continues
with other
processes
Seat is re-
checked.
Seat replaced if
replacement is
indicated
Car Assy
completed
Finished car
rolls out of
Assy line
Legend Normal flow Flow for replacement seats
Implementation
TMM should immediately implement the following measures:
 Assign an employee to manage seat correction and replacement
and implement a one-shift requirement.
 Designated area should be available for the vehicles with the seat
problems.
 Problems should be resolved by notifying the suppliers of
defective seats.
 Actions should be introduced to revise current procedures in
response to problems.
Recommendations
 TMM should consider the following long-term solutions:-
 Close relationship should be maintained between KFS,
TMM and TMC to over come barriers.
 TPS integration will benefit the Toyotas supplier network.
 TMM should recommend a reduction in the variety of
seats with TMC.
Risks and Contingencies
• TMC might not feel that the variety of seats could be
reduced.
• KFS might not be able to react to the increased
demand
• KFS could refuse to adopt TMM and TPS procedures

More Related Content

What's hot

Sport Obermeyer Case Study
Sport Obermeyer Case StudySport Obermeyer Case Study
Sport Obermeyer Case StudyGourav Anvekar
 
McKinsey & Company: Managing Knowledge and Learning
McKinsey & Company:  Managing Knowledge and LearningMcKinsey & Company:  Managing Knowledge and Learning
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
 
Toyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutionsToyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutionsGaurav Khatri
 
Manzana insurance case study analysis.
Manzana insurance case study analysis.Manzana insurance case study analysis.
Manzana insurance case study analysis.Abanta Kumar Majumdar
 
Toyota Motor Manufacturing (Tmm)
Toyota Motor Manufacturing (Tmm)Toyota Motor Manufacturing (Tmm)
Toyota Motor Manufacturing (Tmm)shekhar619
 
Presentation Case Tri Star - Final
Presentation Case Tri Star - FinalPresentation Case Tri Star - Final
Presentation Case Tri Star - FinalSpencer Cheung
 
Donner case Operations Management
Donner case Operations ManagementDonner case Operations Management
Donner case Operations ManagementHarish B
 
Classic pen company activity based costing
Classic pen company activity based costingClassic pen company activity based costing
Classic pen company activity based costingHarish B
 
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS Akshay Jain
 
curled-metal case study analysis
curled-metal case study analysiscurled-metal case study analysis
curled-metal case study analysisancientsoul90
 
Tweeter Electronics: Marketing Case Analysis
Tweeter Electronics: Marketing Case AnalysisTweeter Electronics: Marketing Case Analysis
Tweeter Electronics: Marketing Case AnalysisDipak Senapati
 
Cola Wars Continue: Coke and Pepsi in 2010
Cola Wars Continue: Coke and Pepsi in 2010Cola Wars Continue: Coke and Pepsi in 2010
Cola Wars Continue: Coke and Pepsi in 2010Sharon
 
Thomas Green Case Study Presentation.
Thomas Green Case Study Presentation.Thomas Green Case Study Presentation.
Thomas Green Case Study Presentation.Mimansha Bahadur
 
Kristen Cookie case study
Kristen Cookie case studyKristen Cookie case study
Kristen Cookie case studyAmit Walawalkar
 
Merton Truck Company
Merton Truck CompanyMerton Truck Company
Merton Truck CompanyTushar Arora
 

What's hot (20)

Sport Obermeyer Case Study
Sport Obermeyer Case StudySport Obermeyer Case Study
Sport Obermeyer Case Study
 
McKinsey & Company: Managing Knowledge and Learning
McKinsey & Company:  Managing Knowledge and LearningMcKinsey & Company:  Managing Knowledge and Learning
McKinsey & Company: Managing Knowledge and Learning
 
Airborne Express
Airborne ExpressAirborne Express
Airborne Express
 
Toyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutionsToyota motor manufacturing: Problems and solutions
Toyota motor manufacturing: Problems and solutions
 
Manzana insurance case study analysis.
Manzana insurance case study analysis.Manzana insurance case study analysis.
Manzana insurance case study analysis.
 
Toyota Motor Manufacturing (Tmm)
Toyota Motor Manufacturing (Tmm)Toyota Motor Manufacturing (Tmm)
Toyota Motor Manufacturing (Tmm)
 
Presentation Case Tri Star - Final
Presentation Case Tri Star - FinalPresentation Case Tri Star - Final
Presentation Case Tri Star - Final
 
Donner case Operations Management
Donner case Operations ManagementDonner case Operations Management
Donner case Operations Management
 
Case study- Newell
Case study- NewellCase study- Newell
Case study- Newell
 
Montreaux (1)
Montreaux (1)Montreaux (1)
Montreaux (1)
 
The Fashion Channel
The Fashion ChannelThe Fashion Channel
The Fashion Channel
 
Classic pen company activity based costing
Classic pen company activity based costingClassic pen company activity based costing
Classic pen company activity based costing
 
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS
 
curled-metal case study analysis
curled-metal case study analysiscurled-metal case study analysis
curled-metal case study analysis
 
Ncc case study
Ncc case studyNcc case study
Ncc case study
 
Tweeter Electronics: Marketing Case Analysis
Tweeter Electronics: Marketing Case AnalysisTweeter Electronics: Marketing Case Analysis
Tweeter Electronics: Marketing Case Analysis
 
Cola Wars Continue: Coke and Pepsi in 2010
Cola Wars Continue: Coke and Pepsi in 2010Cola Wars Continue: Coke and Pepsi in 2010
Cola Wars Continue: Coke and Pepsi in 2010
 
Thomas Green Case Study Presentation.
Thomas Green Case Study Presentation.Thomas Green Case Study Presentation.
Thomas Green Case Study Presentation.
 
Kristen Cookie case study
Kristen Cookie case studyKristen Cookie case study
Kristen Cookie case study
 
Merton Truck Company
Merton Truck CompanyMerton Truck Company
Merton Truck Company
 

Similar to Toyota Seat Supply Issues

Tesla final presentation ent
Tesla final presentation entTesla final presentation ent
Tesla final presentation entMohammedAmmar51
 
Fleet Control Secrets to Success
Fleet Control Secrets to SuccessFleet Control Secrets to Success
Fleet Control Secrets to SuccessJosh Turley
 
Other Subject Related Lecture Formula Student Sheffield Hallam University
Other Subject Related Lecture  Formula  Student  Sheffield  Hallam  UniversityOther Subject Related Lecture  Formula  Student  Sheffield  Hallam  University
Other Subject Related Lecture Formula Student Sheffield Hallam Universitygsengar
 
Everwear Fluid Program Midas Set Up
Everwear Fluid Program Midas Set UpEverwear Fluid Program Midas Set Up
Everwear Fluid Program Midas Set UpLROLeary
 
Internship111111111111111111111111111111
Internship111111111111111111111111111111Internship111111111111111111111111111111
Internship111111111111111111111111111111rkishone4444
 
What IT capacity planning can learn from manufacturing's just-in-time models ...
What IT capacity planning can learn from manufacturing's just-in-time models ...What IT capacity planning can learn from manufacturing's just-in-time models ...
What IT capacity planning can learn from manufacturing's just-in-time models ...Internet World
 
MAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptx
MAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptxMAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptx
MAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptxRinaGupta10
 
Toyota motor manufacturing, USA, INC
Toyota motor manufacturing, USA, INCToyota motor manufacturing, USA, INC
Toyota motor manufacturing, USA, INCArna Banerjee
 
Repair, Replace, or Upgrade
Repair, Replace, or UpgradeRepair, Replace, or Upgrade
Repair, Replace, or UpgradeGarry Brinton
 
fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...
fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...
fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...PatrickFo1
 
Engine Design Report
Engine Design ReportEngine Design Report
Engine Design ReportVan Le
 
Sheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docx
Sheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docxSheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docx
Sheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docxbagotjesusa
 
Flat tappetcamtechbulletin
Flat tappetcamtechbulletinFlat tappetcamtechbulletin
Flat tappetcamtechbulletinHenry Rahmananto
 
Presentation.... Internship at Millat Tractors Limited (MTL)
Presentation.... Internship at Millat Tractors Limited (MTL)Presentation.... Internship at Millat Tractors Limited (MTL)
Presentation.... Internship at Millat Tractors Limited (MTL)Azlan
 

Similar to Toyota Seat Supply Issues (20)

Toyota case study
Toyota case studyToyota case study
Toyota case study
 
Tesla final presentation ent
Tesla final presentation entTesla final presentation ent
Tesla final presentation ent
 
Book Review-Toyota Production System
Book Review-Toyota Production SystemBook Review-Toyota Production System
Book Review-Toyota Production System
 
Toyota case study
Toyota case studyToyota case study
Toyota case study
 
Fleet Control Secrets to Success
Fleet Control Secrets to SuccessFleet Control Secrets to Success
Fleet Control Secrets to Success
 
Other Subject Related Lecture Formula Student Sheffield Hallam University
Other Subject Related Lecture  Formula  Student  Sheffield  Hallam  UniversityOther Subject Related Lecture  Formula  Student  Sheffield  Hallam  University
Other Subject Related Lecture Formula Student Sheffield Hallam University
 
Everwear Fluid Program Midas Set Up
Everwear Fluid Program Midas Set UpEverwear Fluid Program Midas Set Up
Everwear Fluid Program Midas Set Up
 
SMED overview
SMED overviewSMED overview
SMED overview
 
Internship111111111111111111111111111111
Internship111111111111111111111111111111Internship111111111111111111111111111111
Internship111111111111111111111111111111
 
What IT capacity planning can learn from manufacturing's just-in-time models ...
What IT capacity planning can learn from manufacturing's just-in-time models ...What IT capacity planning can learn from manufacturing's just-in-time models ...
What IT capacity planning can learn from manufacturing's just-in-time models ...
 
MAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptx
MAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptxMAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptx
MAINTENANCE-TYPES-PLANS-AND-SCHEDULES-ON-4-WHEELED-CAR-1.pptx
 
ie450pp4.ppt
ie450pp4.pptie450pp4.ppt
ie450pp4.ppt
 
Lean manufacturing
Lean manufacturingLean manufacturing
Lean manufacturing
 
Toyota motor manufacturing, USA, INC
Toyota motor manufacturing, USA, INCToyota motor manufacturing, USA, INC
Toyota motor manufacturing, USA, INC
 
Repair, Replace, or Upgrade
Repair, Replace, or UpgradeRepair, Replace, or Upgrade
Repair, Replace, or Upgrade
 
fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...
fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...
fdocuments.net_lubrication-reliability-in-flour-milling-operations-2018-1-24-...
 
Engine Design Report
Engine Design ReportEngine Design Report
Engine Design Report
 
Sheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docx
Sheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docxSheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docx
Sheet1ASU - CON 243NameRoss DodenhoffHomework Chapter 2Student IDP.docx
 
Flat tappetcamtechbulletin
Flat tappetcamtechbulletinFlat tappetcamtechbulletin
Flat tappetcamtechbulletin
 
Presentation.... Internship at Millat Tractors Limited (MTL)
Presentation.... Internship at Millat Tractors Limited (MTL)Presentation.... Internship at Millat Tractors Limited (MTL)
Presentation.... Internship at Millat Tractors Limited (MTL)
 

More from Ishan Parekh

Internship Presentation - Scarecrow Communications
Internship Presentation - Scarecrow CommunicationsInternship Presentation - Scarecrow Communications
Internship Presentation - Scarecrow CommunicationsIshan Parekh
 
Consumer Driven Marketing - Online Marketing
Consumer Driven Marketing - Online MarketingConsumer Driven Marketing - Online Marketing
Consumer Driven Marketing - Online MarketingIshan Parekh
 
New Product Development - Automative Industry & Nanotechnology
New Product Development - Automative Industry & NanotechnologyNew Product Development - Automative Industry & Nanotechnology
New Product Development - Automative Industry & NanotechnologyIshan Parekh
 
Business Newspapers in India
Business Newspapers in IndiaBusiness Newspapers in India
Business Newspapers in IndiaIshan Parekh
 
Leadership in Organizations - Amul (Case Study)
Leadership in Organizations - Amul (Case Study)Leadership in Organizations - Amul (Case Study)
Leadership in Organizations - Amul (Case Study)Ishan Parekh
 
Project Communications Management - Information Technology
Project Communications Management - Information TechnologyProject Communications Management - Information Technology
Project Communications Management - Information TechnologyIshan Parekh
 
Services Marketing - Cinemax (Case Study)
Services Marketing - Cinemax (Case Study)Services Marketing - Cinemax (Case Study)
Services Marketing - Cinemax (Case Study)Ishan Parekh
 
The Osborne Effect - A Case of Nokia (Research Paper)
The Osborne Effect - A Case of Nokia (Research Paper)The Osborne Effect - A Case of Nokia (Research Paper)
The Osborne Effect - A Case of Nokia (Research Paper)Ishan Parekh
 
Integrated Marketing Communications - Marvel Studios
Integrated Marketing Communications - Marvel StudiosIntegrated Marketing Communications - Marvel Studios
Integrated Marketing Communications - Marvel StudiosIshan Parekh
 
Entrepreneurship Management - Adventure Training Center
Entrepreneurship Management - Adventure Training CenterEntrepreneurship Management - Adventure Training Center
Entrepreneurship Management - Adventure Training CenterIshan Parekh
 
Energy Management - Biomass Based Cogeneration
Energy Management - Biomass Based CogenerationEnergy Management - Biomass Based Cogeneration
Energy Management - Biomass Based CogenerationIshan Parekh
 
Business Models in a Digital Economy - On Demand Webinars
Business Models in a Digital Economy - On Demand WebinarsBusiness Models in a Digital Economy - On Demand Webinars
Business Models in a Digital Economy - On Demand WebinarsIshan Parekh
 
Brand Management - Walt Disney (Case Study)
Brand Management - Walt Disney (Case Study)Brand Management - Walt Disney (Case Study)
Brand Management - Walt Disney (Case Study)Ishan Parekh
 
Internship Presentation - Larsen & Toubro
Internship Presentation - Larsen & ToubroInternship Presentation - Larsen & Toubro
Internship Presentation - Larsen & ToubroIshan Parekh
 
Internship Presentation - Vitruvian Technologies
Internship Presentation - Vitruvian TechnologiesInternship Presentation - Vitruvian Technologies
Internship Presentation - Vitruvian TechnologiesIshan Parekh
 
Study of the Nokia - Microsoft Deal (Research Project)
Study of the Nokia - Microsoft Deal (Research Project)Study of the Nokia - Microsoft Deal (Research Project)
Study of the Nokia - Microsoft Deal (Research Project)Ishan Parekh
 
Management of Technology - Service Industry
Management of Technology - Service IndustryManagement of Technology - Service Industry
Management of Technology - Service IndustryIshan Parekh
 
Intellectual Property Management - Case Study (Dummy Project)
Intellectual Property Management - Case Study (Dummy Project)Intellectual Property Management - Case Study (Dummy Project)
Intellectual Property Management - Case Study (Dummy Project)Ishan Parekh
 
Industrial Marketing - Telecommunications / Telecom Sector
Industrial Marketing - Telecommunications / Telecom SectorIndustrial Marketing - Telecommunications / Telecom Sector
Industrial Marketing - Telecommunications / Telecom SectorIshan Parekh
 
ERP - Automative Industry
ERP - Automative IndustryERP - Automative Industry
ERP - Automative IndustryIshan Parekh
 

More from Ishan Parekh (20)

Internship Presentation - Scarecrow Communications
Internship Presentation - Scarecrow CommunicationsInternship Presentation - Scarecrow Communications
Internship Presentation - Scarecrow Communications
 
Consumer Driven Marketing - Online Marketing
Consumer Driven Marketing - Online MarketingConsumer Driven Marketing - Online Marketing
Consumer Driven Marketing - Online Marketing
 
New Product Development - Automative Industry & Nanotechnology
New Product Development - Automative Industry & NanotechnologyNew Product Development - Automative Industry & Nanotechnology
New Product Development - Automative Industry & Nanotechnology
 
Business Newspapers in India
Business Newspapers in IndiaBusiness Newspapers in India
Business Newspapers in India
 
Leadership in Organizations - Amul (Case Study)
Leadership in Organizations - Amul (Case Study)Leadership in Organizations - Amul (Case Study)
Leadership in Organizations - Amul (Case Study)
 
Project Communications Management - Information Technology
Project Communications Management - Information TechnologyProject Communications Management - Information Technology
Project Communications Management - Information Technology
 
Services Marketing - Cinemax (Case Study)
Services Marketing - Cinemax (Case Study)Services Marketing - Cinemax (Case Study)
Services Marketing - Cinemax (Case Study)
 
The Osborne Effect - A Case of Nokia (Research Paper)
The Osborne Effect - A Case of Nokia (Research Paper)The Osborne Effect - A Case of Nokia (Research Paper)
The Osborne Effect - A Case of Nokia (Research Paper)
 
Integrated Marketing Communications - Marvel Studios
Integrated Marketing Communications - Marvel StudiosIntegrated Marketing Communications - Marvel Studios
Integrated Marketing Communications - Marvel Studios
 
Entrepreneurship Management - Adventure Training Center
Entrepreneurship Management - Adventure Training CenterEntrepreneurship Management - Adventure Training Center
Entrepreneurship Management - Adventure Training Center
 
Energy Management - Biomass Based Cogeneration
Energy Management - Biomass Based CogenerationEnergy Management - Biomass Based Cogeneration
Energy Management - Biomass Based Cogeneration
 
Business Models in a Digital Economy - On Demand Webinars
Business Models in a Digital Economy - On Demand WebinarsBusiness Models in a Digital Economy - On Demand Webinars
Business Models in a Digital Economy - On Demand Webinars
 
Brand Management - Walt Disney (Case Study)
Brand Management - Walt Disney (Case Study)Brand Management - Walt Disney (Case Study)
Brand Management - Walt Disney (Case Study)
 
Internship Presentation - Larsen & Toubro
Internship Presentation - Larsen & ToubroInternship Presentation - Larsen & Toubro
Internship Presentation - Larsen & Toubro
 
Internship Presentation - Vitruvian Technologies
Internship Presentation - Vitruvian TechnologiesInternship Presentation - Vitruvian Technologies
Internship Presentation - Vitruvian Technologies
 
Study of the Nokia - Microsoft Deal (Research Project)
Study of the Nokia - Microsoft Deal (Research Project)Study of the Nokia - Microsoft Deal (Research Project)
Study of the Nokia - Microsoft Deal (Research Project)
 
Management of Technology - Service Industry
Management of Technology - Service IndustryManagement of Technology - Service Industry
Management of Technology - Service Industry
 
Intellectual Property Management - Case Study (Dummy Project)
Intellectual Property Management - Case Study (Dummy Project)Intellectual Property Management - Case Study (Dummy Project)
Intellectual Property Management - Case Study (Dummy Project)
 
Industrial Marketing - Telecommunications / Telecom Sector
Industrial Marketing - Telecommunications / Telecom SectorIndustrial Marketing - Telecommunications / Telecom Sector
Industrial Marketing - Telecommunications / Telecom Sector
 
ERP - Automative Industry
ERP - Automative IndustryERP - Automative Industry
ERP - Automative Industry
 

Recently uploaded

NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...
NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...
NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...Amil baba
 
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand FinaleBiswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand FinaleQui9 (Ultimate Quizzing)
 
The Fine Line Between Honest and Evil Comics by Salty Vixen
The Fine Line Between Honest and Evil Comics by Salty VixenThe Fine Line Between Honest and Evil Comics by Salty Vixen
The Fine Line Between Honest and Evil Comics by Salty VixenSalty Vixen Stories & More
 
Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)finlaygoodall2
 
办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书
办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书
办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书zdzoqco
 
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)Salty Vixen Stories & More
 
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...Amil baba
 
Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170
Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170
Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170Sonam Pathan
 
Princess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainmentPrincess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainmentazuremorn
 
Call Girls Near Delhi Pride Hotel New Delhi 9873777170
Call Girls Near Delhi Pride Hotel New Delhi 9873777170Call Girls Near Delhi Pride Hotel New Delhi 9873777170
Call Girls Near Delhi Pride Hotel New Delhi 9873777170Sonam Pathan
 
Call Girls Near The Corus Hotel New Delhi 9873777170
Call Girls Near The Corus Hotel New Delhi 9873777170Call Girls Near The Corus Hotel New Delhi 9873777170
Call Girls Near The Corus Hotel New Delhi 9873777170Sonam Pathan
 
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...TeslaStakeHolder
 
Call Girl Contact Number Andheri WhatsApp:+91-9833363713
Call Girl Contact Number Andheri WhatsApp:+91-9833363713Call Girl Contact Number Andheri WhatsApp:+91-9833363713
Call Girl Contact Number Andheri WhatsApp:+91-9833363713Sonam Pathan
 
Taken Pilot Episode Story pitch Document
Taken Pilot Episode Story pitch DocumentTaken Pilot Episode Story pitch Document
Taken Pilot Episode Story pitch Documentf4ssvxpz62
 
Zoom In Game for ice breaking in a training
Zoom In Game for ice breaking in a trainingZoom In Game for ice breaking in a training
Zoom In Game for ice breaking in a trainingRafik ABDI
 
NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...
NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...
NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...Amil Baba Dawood bangali
 
Aesthetic Design Inspiration by Slidesgo.pptx
Aesthetic Design Inspiration by Slidesgo.pptxAesthetic Design Inspiration by Slidesgo.pptx
Aesthetic Design Inspiration by Slidesgo.pptxsayemalkadripial4
 

Recently uploaded (20)

NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...
NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...
NO1 Certified Black magic/kala jadu,manpasand shadi in lahore,karachi rawalpi...
 
S10_E02_How to Pimp Social Media 101.pptx
S10_E02_How to Pimp Social Media 101.pptxS10_E02_How to Pimp Social Media 101.pptx
S10_E02_How to Pimp Social Media 101.pptx
 
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand FinaleBiswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
Biswanath Byam Samiti Open Quiz 2022 by Qui9 Grand Finale
 
The Fine Line Between Honest and Evil Comics by Salty Vixen
The Fine Line Between Honest and Evil Comics by Salty VixenThe Fine Line Between Honest and Evil Comics by Salty Vixen
The Fine Line Between Honest and Evil Comics by Salty Vixen
 
Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)Fight Scene Storyboard (Action/Adventure Animation)
Fight Scene Storyboard (Action/Adventure Animation)
 
办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书
办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书
办理滑铁卢大学毕业证成绩单|购买加拿大文凭证书
 
Moveable Feast_Travel-Lifestyle-Culture Quiz.pptx
Moveable Feast_Travel-Lifestyle-Culture Quiz.pptxMoveable Feast_Travel-Lifestyle-Culture Quiz.pptx
Moveable Feast_Travel-Lifestyle-Culture Quiz.pptx
 
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
What Life Would Be Like From A Different Perspective (saltyvixenstories.com)
 
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
Uk-NO1 Amil In Karachi Best Amil In Karachi Bangali Baba In Karachi Aamil In ...
 
Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170
Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170
Call Girls Near Taurus Sarovar Portico Hotel New Delhi 9873777170
 
Princess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainmentPrincess Jahan's Tuition Classes, a story for entertainment
Princess Jahan's Tuition Classes, a story for entertainment
 
Call Girls Near Delhi Pride Hotel New Delhi 9873777170
Call Girls Near Delhi Pride Hotel New Delhi 9873777170Call Girls Near Delhi Pride Hotel New Delhi 9873777170
Call Girls Near Delhi Pride Hotel New Delhi 9873777170
 
Call Girls Near The Corus Hotel New Delhi 9873777170
Call Girls Near The Corus Hotel New Delhi 9873777170Call Girls Near The Corus Hotel New Delhi 9873777170
Call Girls Near The Corus Hotel New Delhi 9873777170
 
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
Flying Avocado Cat Cryptocurrency Created, Coded, Generated and Named by Grok...
 
Call Girl Contact Number Andheri WhatsApp:+91-9833363713
Call Girl Contact Number Andheri WhatsApp:+91-9833363713Call Girl Contact Number Andheri WhatsApp:+91-9833363713
Call Girl Contact Number Andheri WhatsApp:+91-9833363713
 
Taken Pilot Episode Story pitch Document
Taken Pilot Episode Story pitch DocumentTaken Pilot Episode Story pitch Document
Taken Pilot Episode Story pitch Document
 
Zoom In Game for ice breaking in a training
Zoom In Game for ice breaking in a trainingZoom In Game for ice breaking in a training
Zoom In Game for ice breaking in a training
 
NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...
NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...
NO1 Certified Black magic specialist,Expert in Pakistan Amil Baba kala ilam E...
 
Aesthetic Design Inspiration by Slidesgo.pptx
Aesthetic Design Inspiration by Slidesgo.pptxAesthetic Design Inspiration by Slidesgo.pptx
Aesthetic Design Inspiration by Slidesgo.pptx
 
S10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptx
S10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptxS10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptx
S10_E06-Sincerely,The Friday Club- Prelims Farewell Quiz.pptx
 

Toyota Seat Supply Issues

  • 1. TOYOTA MOTOR MANUFACTURING INC. U.S.A Prepared By – Ashwin Mehta – 313 Pratik Mehta – 314 Ishaan Parekh – 315 Ankit shah – 317 Dishank Shah – 318 Fenil Shah - 319
  • 2. Agenda  Current Scenario  Problems Faced  Analysis  Suggestions and recommendations  Risks and contingencies
  • 3. Current Scenario • Toyota Motors Manufacturing (TMM) faces increasing problems with its seat supply. • Kentucky Framed Seat (KFS), is a single seat supplier for TMM. • KFS is responsible for the material flaws and missing parts as the major encountered defects. • These problems are increasingly occurring with an increase in varieties and demand for the seats.
  • 4. Problems Faced • Product proliferation problems with defective seats. • Company’s deviation from its normal production plan and lack of a recovery system. • Run ratio dropped from 95% to 85%. • This means 45 less cars were being produced per shift. • This translated in overtime of workers. • Too many cars needed off-line operations of one type or the another before they could go on shipping.
  • 5. Questions Raised • Will the sales company get cars on time as promised? • What does it mean to implement JIT and Jidoka principles to this situation? • Is TMM handling seat defects correctly on the line? • Is the current routine for handling seat-defect cars really a legitimate exception to TPS, or could it be a dangerous deviation from TPS? • Is there a way to kaizen TMM’s off-line routine?
  • 7. The Problem  Rise in number of Camry’s with defective seats, leading to a reduced run ratio at the TMM Georgetown Plant.
  • 8.  On April 27th the run ratio was down from 95% to a damaging 85%.  Decrease in per-shift production is close to 50 cars.  Producing the missing cars via overtime capacity will cost TMM in excess of $16,000 per shift.  This translates to around $8.4 Million per year considering two shifts and a 5-day workweek.
  • 9. Stations 353 Employees 769 Wage/Hour $ 17.00 Overtime $ 25.50 Cycle Time 1.05 Cars/Min Shift Length 525 Minutes 'Productive' Minutes 450 Run Ratio 100% 473 95% 449 85% 402 'Lost' Cars Per Shift (95% to 85%) 47 Cost per Hour of Production Overtime $ 19,610 Time Required to Produce Add'l Cars 50 Minutes Cost to Produce Additional Cars $ 16,215
  • 10. The Reason  Product proliferation  From 3 styles x 4 colors, to 36 different seat styles.  Seats need to match each particular car, therefore stock parts cannot be used.  Sequential pull with a 57 sec line cycle time means response time for KFS to come up with the next seat is minimal  Greater variety of styles and heijunka concept means more frequent changes in seat line setup  Suppliers operate under JIT
  • 11. The Root Cause  TMM did not internalize the TPS philosophy. It only emulated the systems from Toyota, Japan.  KFS balanced capacity to meet TMM Production. It did not have the TPS implementation to respond to the product proliferation.  It only learnt system from the Japanese seat suppliers, not the underlying philosophy.  Not allowing the seat problem to be solved in real time but just tagging it for storage in the rework area is a gross violation of the jidoka concept.
  • 12. The Snowballing Mistakes  Thinking that it is too expensive to stop the line. Andon pulls don’t stop the line at once. 353 workstations would slow down to a halt depending upon time taken for rectification.  Illegible re-order form instead of a proper kanban system might be leading to slower turnaround from KFS  Additional time pressure on KFS would further interrupt their production line, deteriorating quality further  KFS is blamed for the seat defects without going for the Five Why’s to determine the root cause of the problem  KFS being treated as a supplier as opposed to the partnership model JIT actually professes
  • 13. Suggestions • Given that 88% of seat defects is from KFS, TMM needs to participate in KFS’s QC Process, perhaps by placing its own personnel • Defective items need to be fixed on assembly line and not postponed • Design review needs to be done to see if so many different seat styles are actually necessary • Heijunka system may be avoided given the wide variety. This would ensure that a replacement is at hand within 1 minute • A drum-buffer-rope model of intimating KFS of replacement stock as soon as it is discovered needs to be installed. A contingency kanban may be designed.
  • 14. Suggestions (Contd.) Seat spec recvd at KFS Seat setup as per spec on KFS Assy Line Seat inspected by TMM QC person at KFS Seat despatched to TMM Seat recvd at TMM (different dock for replacement) Seat carried above TMM Assy Line Seat installed in the car Seat checked for defect during installation If seat found defective, andon cord pulled If seat needs replacement, a kanban sent to KFS Car continues with other processes Seat is re- checked. Seat replaced if replacement is indicated Car Assy completed Finished car rolls out of Assy line Legend Normal flow Flow for replacement seats
  • 15. Implementation TMM should immediately implement the following measures:  Assign an employee to manage seat correction and replacement and implement a one-shift requirement.  Designated area should be available for the vehicles with the seat problems.  Problems should be resolved by notifying the suppliers of defective seats.  Actions should be introduced to revise current procedures in response to problems.
  • 16. Recommendations  TMM should consider the following long-term solutions:-  Close relationship should be maintained between KFS, TMM and TMC to over come barriers.  TPS integration will benefit the Toyotas supplier network.  TMM should recommend a reduction in the variety of seats with TMC.
  • 17. Risks and Contingencies • TMC might not feel that the variety of seats could be reduced. • KFS might not be able to react to the increased demand • KFS could refuse to adopt TMM and TPS procedures