Toyota Motor Corporation
2011
Planning & Assessing RX 330 Productions for Toyota North America
Team Charlie Oscar Oscar Lima AMBA 640, Section 9044 8/9/2011
Section I II III Executive summary Introduction Exercise 1: Toyota Production System (TPS) today TPS term definitions & practical examples IV Exercise 1: TPS as a total entity Advantages Limitations Evolution TPS use among other companies V Exercise 2: Grid analysis (Weighted scoring model) Exogenous factors & assumptions Endogenous factors & assumptions Constraints VI VII Exercise 2: Location recommendation Exercise 3: Decision tree analysis TMMC production capacity recommendation Limitations Past performance: RX 330/350 VIII Exercise 4: Current regional production strategy Assessment Change recommendations IX Summary Appendix A References
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I. Executive Summary Toyota Motor Corporation is leading the way to future mobility through innovation, productivity, quality and efficiency. Toyota uses a self-developed strategy known as the Toyota Production System (TPS) to guide business process improvements. TPS has been utilized by a variety of industries all over the world, though many organizations tailor system components to their needs rather than embracing TPS as a total management system. The advantages of TPS are savings in time, space and resources resulting in increased efficiency and revenue, however, TPS limits organic production capacity by narrowing supplier relationships and inventory. A grid analysis is used to compare Toyota Motor Manufacturing Canada (TMMC) and USA locations for the Lexus RX 330/350 North American plant. Nine weighted factors are used to compare plant sites. These factors relate to government control, taxes, brand recognition, infrastructure and more. The three critical factors are distance to market, distance to suppliers and government regulation. Grid analysis results favor the TMMC site over USA by a
Planning & Assessing RX 330 Productions for Toyota North America
Team Charlie Oscar Oscar Lima AMBA 640, Section 9044 8/9/2011
Section I II III Executive summary Introduction Exercise 1: Toyota Production System (TPS) today TPS term definitions & practical examples IV Exercise 1: TPS as a total entity Advantages Limitations Evolution TPS use among other companies V Exercise 2: Grid analysis (Weighted scoring model) Exogenous factors & assumptions Endogenous factors & assumptions Constraints VI VII Exercise 2: Location recommendation Exercise 3: Decision tree analysis TMMC production capacity recommendation Limitations Past performance: RX 330/350 VIII Exercise 4: Current regional production strategy Assessment Change recommendations IX Summary Appendix A References
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I. Executive Summary Toyota Motor Corporation is leading the way to future mobility through innovation, productivity, quality and efficiency. Toyota uses a self-developed strategy known as the Toyota Production System (TPS) to guide business process improvements. TPS has been utilized by a variety of industries all over the world, though many organizations tailor system components to their needs rather than embracing TPS as a total management system. The advantages of TPS are savings in time, space and resources resulting in increased efficiency and revenue, however, TPS limits organic production capacity by narrowing supplier relationships and inventory. A grid analysis is used to compare Toyota Motor Manufacturing Canada (TMMC) and USA locations for the Lexus RX 330/350 North American plant. Nine weighted factors are used to compare plant sites. These factors relate to government control, taxes, brand recognition, infrastructure and more. The three critical factors are distance to market, distance to suppliers and government regulation. Grid analysis results favor the TMMC site over USA by a