Toyota

1. Toyota is doing automotive operations, financial services operations and other

operations. 2. 53 production sites in 27 countries in global. 3. Sales decrease start from 31 march 2009 (330000 units) compare with last year. Net revenue decrease 7.7%. 4. 01 February 2010, suspend sales eight popular car models and discontinued six production car assembly plants at North American. 5. 2008, Toyota instead of GM as the world’s biggest carmaker. Successful of Toyota before 1. Toyota employees has philosophies for example: Kaizen (continuous improvement), PDCA (plan, do check, action), Pokayoke (mistake proofing) and just in time to achieve excellence in production. 2. Rigorous methods of checking and set up quality and assurance systems through various division which are including development, purchasing and production. 3. Good quality, reliability and durability. 4. 2000-2001 Toyota meet demand luxury cars by mass production of quality products. Additionally, ‘Toyota Way’ (conduct guidelines) and link with to all overseas manufacturing plants. Thereby, luxury cars exported to US increased rapidly. So earn much profit. 5. Because Toyota use ‘customer first’. In the US 2009, Camry top selling and Corolla was second selling. 6. Make it quality by quality division to launch the “customer quality engineering (CQE) division.” Toyota current problems
1. Product defects and quality not good- sticky accelerator pedal defects in its

vehicles (Prius)
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Violated safety regulation and Act.

Unbridled growth 6. -Recall almost 2. Weak on crisis management because slow to recall which was said by expert. <November.4 million vehicles. Significant harm to the reputation of Toyota 9. newspapers and websites. 6. <January. Suspension the sale of 8 of its best selling cars & shutdown production 5. 2010> -Recall almost 5. Toyota pays us 16. Faces customers complaints. Use the same component parts across different models – cost reduction Reasons of Toyota problems 1. Ignored quality 5. congressional investigations . law suits. 4. Led to financial loss <US 500m in lost revenue in last week of Jan 2010> 8. 2.4 million fine which is imposed by (national highway traffic safety administration) NHTSA <April> -Largest civic penalty levied on an automaker by NHTSA. Witness a slump on customer demand 7.3 million vehicles (Prius). Lapses in R&D 6. Recall by television commercials. Slow responding to customers 7.5 million between November 2009 and April 2010> 3. Public relation disaster reveal 3. Misjudgement & overconfidence in its own quality 4. Pressure of rapid globalization 2. 2009> <Recall almost 10. Toyota did not disclose defects within 5 business days which are required by us regulator. 4. Over-expansion. Cultural factor Consequences faced by Toyota 1. Given more precedence to growth 3.2. Destroy goodwill 5.

shareholders etc 6. Analyse the root causes 4. Respond to public quickly 5. Appointment of new CQO (Chief Quality Officer) . Communicate effectively to customers.Solution to Toyota 1. 3. Toyota mentions did not try to hide the defect to avoid dealing with a safety problems 2. Enhance the quality assurance operations and ability to meet customer expectation.

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