Toyota Production Systems Analysis

9909 Words40 Pages
A Critical Assessment of the Toyota Production System Today November 14, 2010 Executive Summary Toyota Motor Corporation is a leading global automobile manufacturer that has built its reputation on constructing quality cars. Incorporating concepts such as “just-in-time” delivery and kaizen, the company’s highly effective Toyota Production System is considered best in class and many have attempted to emulate it. Toyota is truly a unique organization. As an international conglomerate, it faces many decisions that equate to substantial sums of money and affect the surrounding communities in which it operates. For example, Toyota must decide where in North America to build its Lexus RX 330 line of vehicles. The use of a grid analysis, which incorporates both endogenous and exogenous factors, will show that a weighted scoring model signals that such a venture handled at its Canadian location and that the use of the consensus-building techniques found in the methods of Nemawashi and Ringo-Sho are critical to obtaining final approval of such a decision (Nemawashi, nod.). Toyota also needs to determine the level of production of the RX 330s it should build in order to perfect processes and increase earnings. Using the decision tree methodology, it has been determined that Toyota should build 20,000 units per year, realizing revenue of $551,250,000 over five years. While the decision tree process does not account for all externalities, e.g., bias in data collection, it is a proven technique by which to plan for operations. Finally, Toyota’s production systems and North American distribution network has allowed it to penetrate a market some manufactures consider saturated, though the company looks at these areas opportunistically. Toyota, its processes, and its corporate outlook have all led to successful growth in the Americas, as well as the world. .

More about Toyota Production Systems Analysis

Open Document