Toyota Supplier

Fixing the Suprima Chassis

Nitesh Mahto, Abylay Duzbayev, Phuc Hoang Chu, Roman Lineitsev, Agha Aliyev
Background and the Relationship’s initial phases
Toyota Motor Corporation is a Japanese multinational automotive
manufacturer headquartered in Toyota, Aichi, Japan.

Chassis Co. , LLC manufactures motor vehicle parts and accessories. It

provides wheel hubs, spindles and stems, rotors, exhaust manifolds, knuckles
and spindles,splash shields, and engine bridges

The Suprima rear suspension cradle contract was ChassisCo’s first experience
working with Toyota

ChassisCo engineers were enthusiastic learners of the Toyota Way and

technically excellent.

Quality award in 2002 for some innovative work in applying TPS principles to
their inventory management
Background of Case

❖ “This situation is one of the most challenging I have faced in my 20 years

with Toyota." Walt Bernstein.

❖ There were quality and conformance issues with the rear suspension
cradle for Toyota’s new Suprima crossover

❖ Chassisco not follow on the Toyota principle

❖ 2003 suprima model – more complex compare to 1997.

The Toyota Production System (TPS)
Problem faced by ChassesCo
❖ “ChassisCo did not have the project management skills they needed,” Lucy
Martinez.
❖ They did not have the capacity.
❖ ChassisCo. was responsible for all second-tier parts sourcing and
development, but they had no system for tracking parts.
❖ They lack of knowledgeable person due to all the specialist was reinstated
to the other country.
❖ ChassisCo had a rise in demand created by new launches form a set of
different customers.
❖ Could not get the resource and the senior management support
❖ No executive review process where problems could be highlighted and
resourced.
❖ Accounting system did not recognize and separate operations expenses
from pre-production or launch expenses.
Step taken to solved the problem
❖ Sending Experienced production manager on-site at ChassisCo in 1997 to
mentor the Toyota Way and support interface and problem-solving with
Toyota.
❖ Toyota engineering had to hold ChassisCo’s hand during the development
phase, but they were enthusiastic learners of the Toyota Way.
❖ Toyota engineers had designed the plant and its equipment to ensure
successful integration of product and process.
❖ Created a parts tracking system for them once we observed this
deficiency.
Recommendation and Conclusion
CHASSISCO

❖ Chassisco must shift its culture towards one more compatible with the
Toyota way.
❖ Should bring their most experienced staff in order to tackle a problem of
such magnitude.
❖ Focus on long term growth as opposed to short term profit
❖ The principal continuous improvement and respect for people

TOYOTA

❖ Toyota also should consider in getting new suppliers that could increase
the quality and compatibility of their manufacturing processes.
❖ Toyota should stay open and listen to the risks issued by the people
working on the supplier side.
Toyota 6 Challenge 2050