Robert E. Cole Professor Emeritus Haas School of Business University of California, Berkeley Visiting Researcher, ITEC Doshisha University EOQ June 2011 1
How Many Quality Problems Do They Have? • Operationally: 3 problems (as of 2/08/10) • From a “customer first” perspective, they had 7 million problems • From a future customer perspective, the universe of potential car purchasers
EOQ June 2011
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The Unfolding Big Picture • Subsequent to the recalls associated with floor mats and sticky pedals causing unintended acceleration, Toyota had 14 safety related recalls through Sept. 2010. • These highly publicized recalls may well have solidified in the U.S. public’s mind that Toyota has serious quality problems.
EOQ June 8
Early Warnings • Basic Principle of Risk Management: Identify risks early and eliminate them while they still are minor • Early internal warnings • No large scale counter measures.
EOQ June 2011
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Root Causes of Toyota’s Quality Problems (1) Hyper Growth • In 1995, Hiroshi Okuda, Toyota President, set in motion a new global growth strategy. It included a set of challenging interim goals to move Toyota’s global market share to 10%. This goal morphed into a new target of 15% by 2010. • They were moving toward that goal, reaching 13% in 2008, before the global financial meltdown recalls derailed their efforts.
EOQ June 2011
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Root Causes of Toyota’s Quality Problems (2) Growing Technical Complexity Vehicles in developed countries becoming more complex • Governments of developed countries imposing stricter regulations governing safety, emissions &fuel consumption • Customer expectations rising as seen in demand for green cars, advanced features and performance in luxury cars • High end features in luxury cars spreading faster into lower cost vehicles • Automakers advancing technological capabilities.
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Impact of Hyper Growth & Growing Technical Complexity on Supplier Management – Toyota personnel were increasingly stretched thin – Toyota had to delegate more design work to outside contract engineers and new overseas suppliers – Toyota found it increasingly difficult to have
Executive Summary When thinking of Toyota, the first thing that comes to mind is a good quality vehicle and the recent recall that affected a large amount of people. With just one set of recalls Toyota went from being a highly trusted brand to a brand that was questionable in terms of quality and regard for customers. Now that there are threats presented through the company itself, preparing best practices to be reinstated and revamped in addition to the new recommendations to help with the negative…
Marketing 3301 Toyota Prius: The Power of Excellence in Product Innovation and Marketing 1. In what stage of the product life cycle is the Toyota Prius? Explain. The Toyota Prius was in the market introduction stage then it matured into the market growth stage. In the Product life cycle there are four different phases. There is market introduction, market growth, market maturity, and sales decline. The Toyota Prius as explained by the book was a new experimental technology that Toyota wanted to test…
Toyota Recall Improvement Warren Johnson Res/351 Business Research 02/07/2013 Professor Joe Anthamatten In previous reports, Toyota Motor Corporation in 2009 was considered one of the highly publicized recall automotive companies in the United States. Toyota estimated over 3.8 million vehicles being reported for a recall across the nation. The recall was revealed by a reported crash in California, where the accelerator by a Lexus sedan got jammed, resulting in a driver’s death (Cole, 2011)…
The main purpose of this case study is to talk about how Toyota overcame their production problems in their Georgetown, Kentucky Plant. Toyota has always strived for “better cars for more people”. Therefore when their company started having trouble with the run ratio and seat defects of their cars it was very intense. In early 1992, the concern about product proliferation began to arise. The old model Camry consisted of seats that had five styles and only three seat colors. In March, TMM launched…
Table of content ➢ Introduction of TOYOTA ➢ Marketing Plan of Toyota Launch a “PRIUS” ➢ Objectives ➢ SWOT analysis ➢ Competitor ➢ Target Market ➢ Production System ➢ Conclusion ➢ Bibliography Introduction of Toyota Toyota is one of the best car selling companies in the world. TMC (Toyota Motor Corporation) was established in Tokyo, Japan…
Culture: Lessons From NUMMI GM and Toyota launched their joint auto plant where GM’s work force had been at its worst. Here’s what happened next. And why. BY JOHN SHOOK IN SPRING 2010, New United Motor Manufacturing Inc., the famed joint venture experiment by Toyota Motor Corp. and General Motors Co., will close its doors. As someone who was there at its launch and witnessed a striking story of phenomenal company culture reinvention, I am often asked: “What did you really do to change the culture…
population create for companies & Opportunities do graying population create for firms - Challenge-driven innovation In 1993 Toyota Motor Company shifted gears in its development of what it thought of as the car of the future. The deadline was the start of the 21st century. In America at that time car designers were sketching gas-guzzlers or sport-utility vehicles. But the Toyota team, mostly in their early 30s, wanted to create something that would “do the Earth good”. Within two years they had come…
and Habib, 1996). As the GM-Toyota negotiations were seen as a meeting of cultures it can be assumed culture played a significant role in the case. The negotiations were a successful win-win, however, there were still many clashes and conflicts due to factors such as, cultural differences and differing/similar negotiation strategies. Negotiation transcripts, Academic research and Ghauri’s framework for IBNs will be used to identify what happened between the GM and Toyota and how these two culturally…
if Justin’s Trudeau's supporter or other supporters are satisfied with what he is doing, their perspective will stay the same. Other viewers may also perceive this advertisement as another reason to support Justin Trudeau due to the fact that he has lived a very normal Canadian life and understands the perspective of the people. | Presenter: BenedictTitle: Ottawa’s VIP jets becoming obsoleteSource: The Toronto Star | What do you think the government should do about these four challenger jets…
Course 1: Ethics Businesses and Management Introduction----what is business ethics? The textbook says ‘ethics in management is concerned with those parts of organisational, operational, occupational and professional conduct that relate to absolute standards and moral principles.’1 Absolute standards and moral principles are always varying due to different views. For example, foods from fast/convenience restaurants like McDonalds and Burger King are unhealthy. On one hand, the manager does not…
