1

Table of Context

Introduction..............................................................................................................................2

1. A Brief History of Toyota............................................................................................3

2. What is Lean Production.........................................................................................?3

3. Toyota Production System and Problems of JIT......................................................3

4. The Relation between Supply Chain Management and Lean

Production.....................................................................................................................4

5. Examining the Pedal Problem of Toyota Company..................................................5

6. Competition and Rapid Growth in the Global Automobile Sector.........................6

7. Recommendation..........................................................................................................7

8. Conclusion.....................................................................................................................7

9. References..................................................................................................................8

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Introduction

Toyota after the Second World War began to be successful. The main point was that

manufactures adopted value, quality and methods of American creation system,

(logistics.about.com).

Over the 70 years Toyota has been in auto business and principles of Toyota are that make

quality, safety and the most reliable vehicles around the world. When customers buy an auto

of Toyota, they are not basically buying a vehicle such as; car, truck or van. Consumers are

insertion their trust in Toyota`s Company.

Lean production is a kind of approach to manufacture. The obligation of lean manufacturing

is that reducing waste, and increasing productivity. The purpose is that to be able to respond

to the needs of the Japanese car market. It was very small and they were doing limited export

but demand for different style of car was speedily increasing. The fist aim of this assignment

is that to provide general idea of Toyota Lean Production system and related with supply

chain management.

Nevertheless, Toyota was set an ambitious growth target for the first time in history. At that

time, Toyota had 11 per cent market share in the world and they want to increase to the level

of 15 per cent in 2013 as a result of that Toyota will take first place in the world from General

Motors. They became first but nothing happen better for Toyota. They had pedal problem

which had caused traffic accident and death. The second aim of this assignment is to measure

the recent issue and related with competition of Toyota in during the rapid growth in

automotive sector, effects on sales of Toyota. On the other hand, the company is still the third

biggest manufacturing of automobiles in unit sales and in the net sales on the earth and

finally, third point is to make some recommendations.

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1. A Brief History of Toyota

Toyota is an international company and the main office is in Japan. In 1973 the corporation

was founded by Kiichiro Toyoda. Three years prior to 1934, Type A machine was first

product and four years later, in 1938, the Toyota AA was first passenger car.

The during the Toyota production system, production system were improved at the end of the

1950s. It was established as TPS in 1970 however, it was occurred much earlier by Taiichi

Ohno. According to principles of Jidoka, Just-in-time and Kaizen, the system is an alternative

factor decrease of inventories and fault in the factory of Toyota and its producers.

Nowadays, Toyota is the third biggest producer of automobiles in unit sales and in the net

sales on the earth. In addition, in the Toyota Company, roughly 320,000 individuals are

working and it is the biggest automobile maker by sales. They are manufacturing over 5.5

million vehicles every each year.

2. What is Lean Production?

Lean Manufacturing was developed by Toyota Motor Company in Japan, (Scielo.org.co). It is

a kind of approach to manufacture. The aim of the lean production is to decrease the amount

of capital used up in manufacture. Lean manufacturers apply a smaller amount of resources,

stores, sellers, employment, assets and time therefore lean production is helping to increase

efficiency and reducing costs, (Dave: Rob: Corlo, 1999). The obligation of lean

manufacturing is that reducing waste, and increasing productivity. Lean Manufacturing also

known as the Toyota Production System, (Ventures.com)

3. Toyota Production System and Problems of JIT

Toyota`s lean production in Japan is known as lean production. Lean production system

developed in North America, but in Japan Toyota Production System (TPS) also developed

from the beginning, (Leanmanufacturingsecrets.com). To work effectively JIT, sometimes

called stockless production. Therefore company need to be aware of mistakes because they

are working with minimal stocks. It is easy make a mistake. The minimal stock is reserved re-

working faulty product, (Toyota.co). TPS has been recognized and always it is under control

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to improve it permanently. The goal is clear that the customers are easy and quick to give

orders and provide their orders to be delivered in the shortest period of time, (Toyota.co).

TPS is a kind of manufacture system. The main reason of Toyota Production System is that

cost decrease. The key point is that what is required, in the right quantity and at the correct

time, (Hino, 2006). However, there is big problem can occur suppliers and employees

problem because achievement of JIT depend on the quality and dependability of employees

and suppliers and if stocks are not delivered on time, all manufacture programmes might be

delayed, (Leanmanufacturingsecrets.com).

JIT means that finished goods are produced just-in-time for them to be sold. The components

or raw materials needed to produce finished goods arrive just when required for use.

Therefore another problem of JIT is that there are no extra completed manufactured goods

obtainable to congregate unpredicted orders, the reason is that whole products are completed

to congregate real instructions.

4. The Relation between Supply Chain Management and Lean

Production

Supply chain; products, suppliers, manufacturers, wholesalers, distributors, retailers and

ultimately allow movement between the consumer. A recent development in production

methods is that of just in-time (JIT) which originated in Japan, (Dave: Rob: Carlo, 1999). It

has proved to be so successful in increasing productivity that is now being adopted by many

UK businesses. Although it is often referred to as supply chain management, based on

working with suppliers to achieve quality and efficiency, (Stephen, 1995). About supply

chain management we can say that as a system of organizations, related with individuals and

also interested in producing and shipping those products to customers

directly, (oppapers.com). The benefit of supply chain is that it is keeping relationship between

suppliers and purchasers as a result of that wastage is going down. Toyota is completely

applying a lean supply chain and also they were found lean manufacturing. The best way to

decrease waste is that information and resources should be shared between suppliers and

buyers thus company can develop their designs, procedures and processes, (allbusiness.com).

This is essential if projects are to be delivered in the shortest possible time, and calls for new

planning and control systems - which must originate in the company itself - in order to cover

the whole supply chain. Implementing lean in the chain will bring the idea of trust as a whole.

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Researching the structure of supply chain is quite new as we can say that carried out research

in the 1990s. Area of logistics, systems engineering and other organization hypothesises

impact on lean production system and developed theories, (Stephen, 1995).

5. Examining the Pedal Problem of Toyota Company

Toyota has an accelerator pedals problem in its cars were jamming. It appears that, the cause

of the problem is a component of the pedal that supplies the driver with additional physical

feedback while increase the speed. Nevertheless that is a good thing which results in the

following problems; wear and tear generates, sometimes, as a result of that a sticking effect

will occur a pedal to lock in position. On the other hand, a sticking pedal will cause an

immediate risk to diver because of this reason they are recollecting roughly eight millions of

faulty cars around the earth. In addition 1.8 million from Europe, over the 200,000 owners in

the UK have been affected. Toyota has publicized to fix that problem which is accelerator

pedals. They are illuminating to the community that problem in detail and also to apology to

the nation, (technorati.com).

In spite of the recalls, sales of Toyota had not stopped in the UK. The models of vehicles

Avensis and Auris which are part of the recollect cars and in 2009 made up almost a third of

sales of company in the UK, (Lea, 2010).

According to experts, Toyota`s manufacture and sale were influenced by sudden acceleration

problems which was not single problem but was important. Floor mats were interfering with

the pedals therefore Toyota Company recalled more than 4 million vehicles. We can define;

this situation is very extraordinary and very rare cases condition and has to happen at the

same time. Furthermore Toyota Company thought the pedal problem caused by the materials

used thus they changed that materials but the pedal problem still continued. Finally,

engineering still searching that what is the problem exactly and what is the reason of that

problem. The searching is incomplete, (msnbc.com).

Because of this problem Toyota has lost reliability for making safety vehicle. Toyota could

spend much money to get responsibility because there were really damage and passing away

rumours. Nevertheless there was no evidence that someone was hurt by jammed pedal,

(Stempel, 2010).

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6. Competition and Rapid Growth in the Global Automobile Sector

A chapter of the Japanese industrial competitiveness is the result of a combination of factors.

Japan companies are creating quite small many different models thus they attained

comparatively elevated flexibility`s level.

In the late 1970s and 1980s, nine main Japanese automobile production abilities of their

product development and steadily to move the chief competition area have benefited.

In 1999 Toyota today is the beginning of the problems. The beginning of the second issue

was in 2002. Toyota was set an ambitious growth target on this date for the first time in

history. At that time, Toyota had 11 per cent market share in the world and they want to

increase to the level of 15 per cent in 2013 as a result of that Toyota will take first place in

the world from General Motors. They became the first but it was not better for the company.

In very rapid growth their need for new executives increased therefore they had not sufficient

time to train their worker or staff. They were concern little bit their principles of founder they

were consider on rapid growth. There were some issues that their supply chain was not ready,

they weren’t complete preparations and before prepare warrant, without manpower and

prepare new managers and they chosen hurry over growth. Finally, good things did not

happen.

In 2008 Toyota Corporation had pedal problem which was not single issue but was important

because Toyota`s manufacture and sale were influenced by sudden acceleration problems. As

a result of that Toyota`s competitiveness decrease. It is an international company and end of

the pedal problem roughly 8 million vehicles recalled around the world it means that the

company lost its reliability for making safety vehicle.

7. Recommendations

Toyota must review their pedal problem and its cause to the global competition. The

company must ensure that issue do not happen again.

Toyota also recruited from universities in the ordinary people who were all engineers.

They tried to develop the Toyota Production System. Later on Japan`s high on the

egos of stars, university are being preferred. Guidance system, the deviations are in

the master apprentice relationship. There were distance between administrator and

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workers. This case effected Toyota`s quality and sales therefore they should consider

about this case. The important is not that employees are from which university.

The company have to reconsider about their information flow because it is important

for supply chain, JIT and also to deliver all products on time.

Great companies learn from their faults or mistakes. Whatever issues have occurred

within their company, the strength and commitment to fix them resides within their

company as well.

8. Conclusion

Toyota was set an ambitious growth target on this date for the first time in history. In 2008

Toyota Corporation had pedal problem which was not single issue but was important because

that problem caused many traffic accident and several people lost their life. Moreover,

Toyota`s manufacture and sale were influenced by sudden acceleration problems.

There are two aspects of the debate about this issue one of them says Toyota was set up an

ambitious growth target for the first time in history. In very rapid growth their need for new

executives increased therefore they had not sufficient time to train their worker or staff.

However, according to other aspects is that workers of Toyota and information flow inside

supply chain did not adapt to their rapid growth target. Finally around 8 million vehicles

recalled around the world it means that the company lost its reliability for making safety

vehicle. In spite of the recalls, sales of Toyota had not stopped in the UK.

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9. References

Text Books:

1. Satoshi H. (2006) “Inside the mind of Toyota” New York: Productivity press

2. Taylor B. (2007) “Introduction to management science” ninth edition, New Jersey:

Prentice Hall

3. Hall D., Jones R., & Raffo C. (1999) “Business studies” second edition, Causeway

pres limited: British library

Web-internet:

4. “Origins and Principles of Lean Manufacturing” (Accessed; 25/05/2010)

Available at: http://logistics.about.com/od/tacticalsupplychain/a/lean_manufacturing.htm

5. “Lean Manufacturing Measurement: The Relationship between Lean Activities and

Lean Metrics” (Accessed; 26/05/2010)

Available at: http://www.scielo.org.co/scielo.php?

pid=S012359232007000400004&script=sci_arttext

6. “Lean Production” (Accessed; 14/05/2010)

Available at: http://www.1000ventures.com/business_guide/lean_production_main.html

7. “What is Lean?” Accessed; 19/05/2010)

Available at: http://www.lean.org/WhatsLean/

8. “Lean Manufacturing” (Accessed; 21/05/2010)

Available at: http://en.wikipedia.org/wiki/Lean_manufacturing

9. “The Toyota Lean Manufacturing System” (Accessed; 13/05/2010)

Available at: http://www.leanmanufacturingsecrets.com/blog/2008/03/23/the-toyota-lean-

manufacturing-system/

10. “The Toyota Production System” (02/06/2010)

Available at: http://www2.toyota.co.jp/en/vision/production_system/

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11. “Supply Chain Management and Lean Production Through-Out the World”

(Accessed; 09/06/2010)

Available at:

http://www.oppapers.com/essays/Supply-Chain-Management-And-Lean-Production/277405

12. “Lean Supply Chains Require Investment in Suppliers” (Accessed; 13/05/2010)

Available at:

http://www.allbusiness.com/company-activities-management/management/11674050-1.html

13. “No easy answer to why Toyota accelerators stick” (Accessed; 27/05/2010)

Available at: http://www.msnbc.msn.com/id/35110966/ns/business-autos/

Articles:

14. “Toyota Knew of Accelerator Pedal Problem in UK a Year Ago” (Feb. 2010),

Robert Lea

Available at:

http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article7011671.ece

15. “Toyota's other pedal problem: Lawsuits” (Feb 2010), Jonathan Stempel

Available at: http://www.reuters.com/article/idUSTRE61060G20100201

16. “The Root of Toyota's Pedal Problem” (Feb 2010), Jeremiah Bourque

Available at: http://technorati.com/lifestyle/autos/article/the-root-of-toyotas-pedal-problem1/