Toyota Motors Manufacturing U.S.A Inc. Harvard Case Solution & Analysis

Toyota Motors Manufacturing U.S.A Inc. Case Study Solution


The Toyota motor manufacturing company is a Japanese Company that was founded in 1937. It has long history in manufacturing of the car, and has gained expertise in producing quality cars at affordable prices. However, the company expanded very fast, and in 1980 it built its first production plant in North America. Meanwhile, the company has been manufacturing products that were customer focused in terms of quality and price.

However, increasing competition in the market has created complexities for the company to approach the maximum quality level and remain an affordable product. Since, it was only possible when company has efficiency in the operations. So, the company had worked on many initiates to improve and maintain the quality of the products, and also remain cost effective by eliminating the unnecessary costs associated with operations.

Similarly, to address the risen challenges in the market company has implemented The Toyota Production system (TPS) that soon became a competitive advantage for the company to meet with the risen challenges in the market, and the reduced the production cost by eliminating the cost. On the other hand, itcan be saidthat  Just in time (JIT) has also given an edge to the company.

However, the increasing problems in the seat defects might affect the production facility of the company. On the other hand, the seats are most important part of the cars that gives sense to the customers about the reliability within seconds after a customer sits. Therefore, it was a concern for the company to eliminate the seat defects, and approach the root cause. Since, it might affect the whole production system, and might also lead to decline in sales.

Problem statement

How company could eliminate the seat problems before it affects the whole production system, and the customer’s in the market?



The company has been operating well in the market in terms of producing quality cars in the market at affordable prices. Meanwhile, the company has Toyotas production system that is aimed at providing efficiency in the operations of the company from the supply of raw material to last assembly lines. Since, the aim of the TPS was to reduce the costs in the production system by eliminating the wastages in the company.

On the other hand, the problem was the identification of the wastages in the company was major problem. However, the increasing issues in the production process the company implemented two principles one Just-In-time (JIT) that refers to the not bearing extra inventory in the company. The Just-In-time is an inventory control techniques to stop company from retaining or making the company full of inventory.

So, Just-In-time offers flexibility in controlling the inventory or the stock in the company. Because, the Just-In-time emphasizes over the receiving stocks, inventory or the material when it is needed in the production line. By, this the company would be able to eliminate the wastage cost. Because, the production line would have nothing in excess to waste.

Similarly, the company could eliminate the waste completely from the production line, and maintain the stock levels thatare needed. As demand rises in the market, the supplier would provide stocks, inventory, and material as per requirements of the company following the demand.

On the other hand, it can be determined that company also implemented “jidoka”, this system is self-sufficient in managing the quality of the products during the production line, or assembly line. Because, the system stops production if it detects any problem in the products quality, and problems would be immediately solved right after it is been known.

Similarly, the both implemented the systems of the company has given value to the company and to the customers. However, it is important to know that there are many complications and complexities in the production system, and assembly line. Since, there are many labors working on their lines. But, the important is that how effectively they are working tomaintain the quality of the products.

Meanwhile, the increasing issues in the company are a reflection of the rising customer demands in the market about the quality products, and at even at affordable price, and it also has fueled the competition the market. Similarly, it can be determined that Toyota has implemented many techniques to bring the efficiency in the company. But, the there are many other concerns that needs more attention than they are given.

Toyota Motors Manufacturing U.S.A Inc. Harvard Case Solution & Analysis



The seat issues

The company has been manufacturing products with quality, and reliability. However, the matter of seats was more important for the company due its sensory position that customer would realize within seconds about the quality of seats. So, the engineers have difficulties in maintaining the quality of seats. Because, on one hand they have to ensure the safety of the customers in the car, and they also have to maintain the quality of the seats.........................

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