Issues Faced by Toyota Corporation
Question:
Your are required to choose a problem in any company, and write about this problem. and Also write how we use the decision making in order to solve this problem.
Decision making process is integral for every organization because of many years of crisis and downturn high quality management in quality mangers are needed by not only large organization but also for small organization, real and public sector and profit and non-profit organization. The topic of issue has been chosen of Toyota Company that is multinational car Manufacture Company. The company has been using its values and principles to manufacture the trustworthy car for the customers along with it focuses on the sustainable development of society by apply innovative and super quality products and services (Chart, Industry & Industry, 2010). However, the Toyota company has become the largest automaker along with that over the past many years, Toyota Motor Corporation is not only spite of the automotive industry but also been recognized in high esteem in the term of manufacturing and leadership excellence (Piotrowski & Guyette, 2010). The report will discuss the crisis of the Toyota Corporation and its impact over the customers and company. Problems are faced by every company but it is vital to solve the issues as soon as possible in the favor customer’s faith. The approaches used by Toyota Corporation will be reflected in this report which will be helpful to understand the various aspects of the company in the context of decision making process
The Toyota Production System prides it as a company that provides safety, secondly as a company that build quality car with good material and thirdly as a company that has interest to make number of cars quickly for increasing the volume of sales. Toyota is faced gigantic issues in terms of quality that has cost lives and it has also faced with substantial nightmare as consequences of bad public relations which have put the company on frame (Collins, Muthusamy & Carr, 2015). It has been analyzed that the features and the functionality of the car has become intricate due to increment number of wires and computer chips that is utilized in auto electronics along with sensors. The confusion has arisen in Toyota Car in the testing of quality control, challenging suspicions and interferences. It has been informed by Toyota Corporation to the general public that the founded defects in the vehicles that were recalled had source no accident and could be mended within an hour which will cost the company in millions of dollars (Lee & Jo, 2012).
The tragic incident took place in the San Diego in 2009, California in which the four members of one family lost their lives, when their car Lexus careened out of control at over 100mph, and thrust into a narrow valley after crashing with an oncoming car has become the cause of problems of defects which led the company to a recall. These incidents has described that there were issues with car and defects were found in the brakes and accelerators. It has been described by Liker and Ogden, Lehane, Fabiani and Guttentag (2012) that before the accident case of family, the Toyota Corporation was aware about the issues regarding brakes and accelerates. The paper investigated the whole scenario and found some results that are the setting up of drive through wire systems was the first issue of Toyota Corporation in the context of acceleration issues. In that case, there were 1,200 complaints received for the customers of Toyota for uncontrolled acceleration and involuntary acceleration even after the replacement of floor mats. The tried has been done by Toyota Company to stop releasing the data gotten from on-board recorders that had bad experience about the acceleration. It has been found through the research of Los Angeles Times reports that there were number of deaths recorded from uncontrolled acceleration including Toyota Car (Bhasin, 2016). The image of Toyota is suffered with the recalls and the various release data from survey data is not able to help out the Toyota to maintain the brand image. It brings the negative impact on stock price and undesirable media reports for various companies can be the reason of key issues for manufactures (Lucky & Takim, 2015). It has been found that there are various defects in the manufacturing the products that are mentioned below:
- Process condition change
- Material distribution
- Operators errors
- Composition fraction change
Impact on Toyota’s Brand Image
Toyota is a multinational company and there are number of users of its brand. The decision making process has been made by the company to improve the condition and goodwill in the point of view of customers. Company uses various approaches to improve the quality. The approaches of Toyota for the strategic decisions of operations management reflect the importance of the efforts of the company for ensuring modernized operations and high productivity at a global scale (Petison & Johri, 2016). The various approaches to improve the condition of the company due to recall are mentioned below.
Quality management: Toyota uses Toyota Production System for enhancing the quality. Quality is considered as the essential component for the TPS. The continuous improvement has been made by the company to improve the manufacturing process.
Process and capacity design: it is the strategic decision area of the operation management and for this company utilizes the lean manufacturing which is personified in TPS. The waste minimizations are emphasized by the company which increases the efficiency and capacity utilization.
Supply Chain Management: lean manufacturing is used by the Toyota Company for supply chain management. The company utilizes automation systems for making adjustments of real time in the activity of the supply chain. In this manner, Toyota can reduce the influence of bullwhip effect in its supply chain.
Just in time approach: Toyota reduces the inventory level by just in time approach in the zone of operations management. The major aim of this is to reduce the inventory size and its cost of corresponding. The approach of just in time is comprised in the Toyota Production System (Chiarini & Vagnoni, 2015).
Along with that Toyota US and its supplier has attempted to comprehensively make good use of Failure Mode Effect Analysis (FMEA) which make ensure that measurement uncertainty issues are minimized. It has various factors of advantageous such as it is liable to increase the external as well as internal contentment (Victor & John, 2011). It is a procedure that simplifies the process improvement. Toyota adopted the Social Network Sites strategy to get the recent news about the company’s customer feelings and image. Connected problems with the recall have carried to define a serious that is interlinked with the digitization of the automobile (Mell, Seshadri, Kwong & Dalman, 2013). Company made itself technology expert by involving number of technology experts which are able to control digitally by computer chips as well as software
Conclusion
From the above discussion, it has been concluded that decision making process is playing an integral role in every organization. The report has been made on the issues of Toyota Company and the discussion has been reflected in the context of solving the issues. However, the Toyota Corporation has to face various issues and recall but company has taken step and applied various approaches to retain the customers. Toyota has implemented the system to monitor the feedback of customers. However, the recall of Toyota crisis bring the bad image in the mind of customers but the taken step by company to improve the mistakes are able to bring back the trust of customers .
References
Bhasin, H, (2016). Marketing mix of Toyota – Toyota Marketing mix. Retrieved on 15th September 2017 from: https://www.marketing91.com/marketing-mix-toyota/.
Chart, S., Industry, M., & Industry, S. (2010). Toyota Motor Corporation. Retrieved on 15th September 2017 from:https://www.toyota-global.com/company/vision_philosophy/.
Chiarini, A., & Vagnoni, E. (2015). World-class manufacturing by Fiat. Comparison with Toyota production system from a strategic management, management accounting, operations management and performance measurement dimension. International Journal of Production Research, 53(2), 590-606.
Collins, K. F., Muthusamy, S. K., & Carr, A. (2015). Toyota production system for healthcare organisations: prospects and implementation challenges. Total Quality Management & Business Excellence, 26(7-8), 905-918.
Lee, B. H., & Jo, H. J. (2012). The mutation of the Toyota production system: adapting the TPS at Hyundai Motor Company. International Journal of Production Research, 45(16), 3665-3679.
Lucky, B, O & Takim, S. (2015). Manufacturing defects in the automobile industry, a case study of the remote causes and effects of Toyota’s transmission malfunctions in cars. International Journal of Engineering and Applied Sciences, ISSN: 2394-3661, Volume-2, Issue-8, August 2015.
Mell, M. W., Seshadri, S. B., Kwong, T., & Dalman, R. L. (2013). Implementing Toyota Production System Practices improves efficiency of patient care in an academic vascular practice. Journal of Vascular Surgery, 57(5), 96S.
Petison, P., & Johri, L. M. (2016). Driving harmony: philosophy of Toyota Motor Thailand. Strategic Direction, 2(11), 3-5.
Piotrowski, C., & Guyette, R. (2010). Toyota Recall Crisis: Public Attitudes on Leadership and Ethics. Organization Development Journal, 28(2), 89-97.
Victor, L. H. & John, R. D. (2011). Toyota in crisis: Denial and mismanagement. Journal of Business Strategy, 32(5), 4-13
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