TOYOTA
Process improvements
Toyota: Case study
What exactly needs to be improved?
The Toyota Corporation built its reputation upon safety and quality. Based upon its perceived superiority to its competitors, particularly its American competitors, the Japanese carmaker had established itself as 'benchmark' of excellence in the international marketplace. All of this began to change in the late 1990s and early 2000s. Toyota's safety was questioned after a series of highly-publicized recalls. In particular, the revelation that its accelerators could get 'stuck' and cause vehicles to go dangerously fast was profoundly damaging to Toyota's reputation.
Toyota's fall from grace was so disturbing because Toyota's managerial philosophy had been so influential. Pillars of the Toyota Way included the need for long-term planning; lean manufacturing; keeping inventories low; and cultivating strong relationships with suppliers. Toyota had long been considered the paradigm of what to do 'right,' but its response to the recalls seemed the epitome of what a company could do 'wrong.'
Background
During the 1990s, the normally robust health of the Toyota Corporation was failing, given the many internal difficulties Japan was facing at the time. Toyota embarked upon an aggressive policy of international expansion as a result. It also created a Value Innovation program which required the company to work closely with suppliers, reducing component parts of the vehicles to their simplest denominators. Toyota always had close relationships with suppliers, enabling it to keep inventories low. Suppliers were involved in design, in contrast to American firms which had transient relationships with suppliers and simply looked for the lowest-cost products.
However, there were concerns that Toyota was "growing more quickly than the company's...
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