Toyota Motors Manufacturing (TMM) faces increasing problems with its single seat supplier, Kentucky Framed Seat (KFS), who is responsible for material flaws and missing parts. These problems are occurring more as seat varieties and demand increase. TMM must address the seat issue before production of the new Camry Wagon is impacted. Suggestions to management include quality control teams to work with suppliers, a supplier development program to improve processes, and combining seat installation systems to reduce manufacturing time.
Manzana Insurance is the second largest insurance company founded in California in 1902. โข They operated through a network of autonomous branch offices in California, Oregon and Washington. Each branch is treated as a separate profit and loss centre. โข Manzana does not directly interact with public but instead has its 2000 agents who represents Manzana. โข Fruitvale was one of the Manzanaโs smaller branches, with 3 underwriting teams and 76 agents. Our case concern is the falling performance and hence the profitability on Property Insurance for this branch.
Manzana Insurance is the second largest insurance company founded in California in 1902. โข They operated through a network of autonomous branch offices in California, Oregon and Washington. Each branch is treated as a separate profit and loss centre. โข Manzana does not directly interact with public but instead has its 2000 agents who represents Manzana. โข Fruitvale was one of the Manzanaโs smaller branches, with 3 underwriting teams and 76 agents. Our case concern is the falling performance and hence the profitability on Property Insurance for this branch.
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There are four main types of pricing strategies from which Atlantic Computers canchoose. First, Atlantic Computers could stay with the status quo and offer software tools for free. Second, it could choose competitive based pricing. Third it could choose from Cost-plus pricing. Finally, it could choose value-in use pricing.In addition to determining which pricing strategy to use, Atlantic
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ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS Akshay Jain
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There are four main types of pricing strategies from which Atlantic Computers canchoose. First, Atlantic Computers could stay with the status quo and offer software tools for free. Second, it could choose competitive based pricing. Third it could choose from Cost-plus pricing. Finally, it could choose value-in use pricing.In addition to determining which pricing strategy to use, Atlantic
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The Toyota Company is the biggest auto-manufacture in the world. The company headquarters are located in Japan but has global plants in Europe, North America, Australia and Asia. The company has indulged in a customer driven philosophy that has kept top amid economic recession in Europe and North America, its chief customers. This philosophy is known by the company employees as the Toyota Production system (TPS). The three main objectives of this philosophy includes: providing their customers with the best quality vehicles in terms of cost and timely delivery, to treat their employees in such a way that they are satisfies with their jobs and ensure job security. Thirdly, TPS intends to give the company flexibility to respond to market while recording returns through cost reduction measures (Wilson, 2012).
According to Toyota (2012) TPS has the responsibility of minimizing wastes and overloading its employees. It works to ensure that the whole process of production through distribution flows smoothly and efficiently. The integration of human and mechanical resources to ensure maximum quality of the cars as well as improving efficiency and reduction of wastes is the foundation philosophy of the Toyota Company and defines best kaizen. To achieve this, the employees continuously work to improve the standards of increasing their efficiency and waste elimination. This is called kaizen in Japanese โor change for the betterโ in English. The kaizen was invented by Toyota decades ago and have since acquired a universal acceptance. Just in time production was also coined by the same company in an effort to respond to the forces of demand and supply. The whole process is initiated once the customer places an order to the company. The company then moves to produce the exact parts ordered, assemble and dispatch the car. This limits the production of inventory since production is proportional to the magnitude of the demand (Toyota. (2012).
Lean Production 2
For instance, if the company received a daily order of 400 cars and happen to be operating in 920 minutes daily, the takt time (from German โtaktzeitโ meaning cycle time) will amount to 2.3 minutes. If this time is operated at a minimum, then the resources will be increased.
Jidoka is a Japanese word for automation. The Toyota Company defines the word as 'automation with a human touch'. This allows all employees the responsibility to stop the production process in case he or she identifies a problem within the production line (Toyota, 2012).
Lean Production Philosophy
Lean production encompasses the reduction of wastages through labor, inventory management, time, space with the primary objective of delivering high quality products. This strategy strives at responding to the market needs through introduction of the right product in the right place in the quantity in the right time. In turn, the production process helps in the realization of reduced wastes and responds to fluctuating market demands. The pr ...
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
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Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
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2. Toyota Motors Manufacturing (TMM) faces
increasing problems with its seat supply.
TMMโs single seat supplier, Kentucky Framed
Seat (KFS), is responsible for the majority of
the problems with material flaws and missing
parts as the major encountered defects.
Powerpoint Templates Page 2
3. These problems are increasingly occurring
with an increase in varieties of and demand for
the seats. Toyota currently addresses these
problems offline; however, this is a deviation
from the policies and procedures under the
Toyota Production System (TPS). Now, as
TMM ramps up for the production of the
Camry Wagon, it must address the seat issue
before seriously impacting production
performance.
Powerpoint Templates Page 3
4. THIS IS CAUSED BY THREE
FACTORS
โข 1) Seats need to match each particular car,
therefore stock parts cannot be used
โข 2) The supplier process operates under Just In
Time (JIT)
โข 3) KFS cannot readily supply replacements for
defective seats
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5. PURCHASE DEPARTMENT
SUGGESTIONS TO TOP
LEVEL MANAGEMENT
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6. Q1.BUYING QUALITY MATERIAL AT LOW PRICES:
SOLUTION:
โข Purchase Department has suggested following ways to
procure material at low price and with best quality:
โข Downward Integration: As Toyota is huge industry and
requires large no of stock so if it can go for downward
integration it would be a good idea as than it can very well
control the inventory for JIT and it will also have a total
quality control and will save the cost.
โข Quality Control : Quality check Teams can be formed which
would work in close collaboration with suppliers so to check
on quality of materials supplied by them and suggest them
measures to overcome any defect in their manufacturing
process
Powerpoint Templates Page 6
7. โข Build a Supplier Chain Development Program: This
program would help in providing suppliers training and
development for their existing staff and manufacturing process
by providing them technological aid and at the same time
management expertise.
It can include development of techniques like
โข 1. Six Sigma
โข 2. JIT
โข 3. KAIZEN
All this will reduce their cost of production which in turn will
help Toyota to acquire raw materials and low price without
actually lowering profit margin of suppliers and gaining their
confidence.
Powerpoint Templates Page 7
8. Problem 2: Providing Data having Cost of
Production to TOP LEVEL MANAGEMENT
Solution: This would be tough deal to crack as nobody
will like to share their cost of production with other
company but this can be done by entering into contract
with them to share their cost of production so that
without lowering their profit margin we can help them
to reduce their cost of production and providing them
aid in management as well as production process so that
they can work up to their full efficiency.
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10. 1.Procurement schedule should match with
production schedule.
2. Seat material would be provided at the time
of procurement of seats.
3. When the cars would be finally made, a
quality check would be done.
4 . Direct link between production and
operation department.
5. Scheduling process= production schedule
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12. Q. How do we reduce the manufacturing and installation
time?
Ans. The manufacturing and installation time can be reduced by
following the following options:
1. As Toyota can use combined seat installation technique, as
they have made two separate systems in a divided order, in
order to install two seats, so these systems can be combined so
that the seats are installed in a car simultaneously, and the time
would be saved.
2. We can use a better robot, which is much efficient and quick.
As when the robot will be quick enough to cope up with faster
production , painting system would receive the car sooner,
thereby increasing the manufacturing speed.
Powerpoint Templates Page 12
14. Q1-Provide all information on Kanban cards for inventory
movement?
Ans.- A Kanban Card include a part code number, its batch
size, its delivery address and other related information. Every
part container sitting on the flow rack along the assembly line
held one batch & had its own card. The card would physically
travel between this part -use point & the supplier, whether in
house or outside to signal the actual parts needed. When the
supplier receive the Kanban, it began making that part in the
stated quantity, & shipped a container full of that part to the
proper address on the assembly line. Assembly group leaders
adjust the number of circulating kanbans for each part within
the set range to avoid having team runs out of every parts.
Kanban cards are used by PC department to determine
appropriate kanban range & to feed information back to parts
ordering for even better inventory control.
Powerpoint Templates Page 14
15. Q2- Feed necessary parts into TMM operating that are
needed and write the no. of cars that could be delivered to
sale with JUST IN TIME.
Ans.- To feed necessary parts into TMM operating PC relied on the extensive
forecasting and planning that TMC performed for worldwide markets. To
prepare for May production, for example, PC first received, in January, a
Production Planning Order (PPO) for key specifications from the sales
company. This PPO was revised in February and, after one more update,
was fixed as a Total Vehicle Order (TVO) by the end of March. While total
volume was fixed in the late March, the PPO was generally accurate only
within "20%" of the TVO for most specification categories at that
point. Next, the TVO was broken down weekly: by the end of the second
week of April it was done for the first week of May. During the third week
of April, the initial May week's information was translated into final part
orders for local suppliers as well as a daily production sequence for TMM
operations. This procedure left one full week for production preparation.
The number of cars would call for 500 base models and 500 luxury models
every single day and also demand that a base model and a luxury model be
made alternately. Powerpoint Templates Page 15
16. Q3- Need to balance out the total order in daily production
sequence Hijunka practice?
Ans.- By balancing of the total order in daily production
sequence Hijunka practice, the same supplier could stick to a
uniform cycle time throughout the month without creating the
waste of inventory. Similarly, offsetting cars that required a
particular operation against those that did not prevented any
particular work station from becoming a severe bottleneck or
remaining unreasonably idle. Hijunka also synchronized the
assembly line with the ultimate sales of the cars.
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18. CONTRACT BETWEEN TOYOTA AND
COMPONENT SUPPLIERS
Based on the principle of โlong-term stable transactionโ,
Toyota makes an unique โbasic control of component
transactionโ with a component supplier. On this contract
Toyota confirms to promote long lasting prosperity for both
parties and an ideal quality assurance for customers. Hoping
that, perfect quality control is carried but by every component
manufacturer, Toyota includes in the contract the basic rules of
quality control, the steps to be followed when defective goods
come out and etc.
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19. UPBRINGING OF COMPONENT
SUPPLIERS
โข In order to develop the component suppliers Toyota
assists them in improving management as well as
quality control. Various means are available for
assisting suppliers in improving systems of
management such as:
โข Toyota quality Control Reward
โข Guidance of Toyota Production system (Kanban
System)
โข Mutual development by supplierโs organization and
etc.
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