Toyota Recall Essay

4694 Words19 Pages
Toyota Motor Corporation – Recalls Organizational Dynamics BU 531 Dr. C. Hayes, III By: Bisalehalli, Manjunath Bisel, Charles Obney, Terry Palmiere, Robert Table of Contents 1. Introduction 2. Define Problem – Recalls a. Floor Mat Recall b. Accelerator Pedal Recall c. Anti-Brake Software Recall 3. Analyze – What went wrong? a. Outdated Management Structure b. Compromised Organizational Goals c. Cultural Differences d. Supply Chain 4. Make Choice a. Outdated Management Structure b. Compromised Organizational Goals c. Cultural Differences d. Supply Chain 5. Toyota’s Actions – Right or Wrong? 6. Evaluate Toyota’s Results 7. Conclusion 1. Introduction Toyota, the icon of operational excellence and pristine quality, recalled more than eight million vehicles in the six months before mid-February, calling into question everything we thought we knew about the Toyota way (Liker, 2010). The recent recalls have tainted Toyota, says Peter DeLorenzo, editor of AutoExtremist.com: "Toyota is in serious trouble, because now there are too many competitive models from savvy competitors — Ford and Hyundai for instance — that are presenting a real alternative to the consumer. (Healey, 2010) Perhaps even more troubling for Toyota is that the recalls uncovered glaring weaknesses in what was previously considered a model company with an innovative manufacturing process and impeccable reputation for quality. Toyota factories were famous for implementing lean manufacturing techniques and "just-in-time" production methods that kept part inventories lower than those of their American counterparts. Toyota also initiated a process of quality control that allowed any member of the assembly team to stop the production line if they noticed a problem. The so-called "Toyota Way" gave all company employees ownership of the products and a
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