Toyota

 2nd largest manufacturer of automobiles.  Toyota has 52 overseas manufacturing companies in 27 countries outside Japan  Toyota markets vehicles in more than 170 regions .About Toyota  7th largest company in the world .  Production facilities in 28 nations around the world.

Question 1 Where should the plants be located and what degree of flexibility should be built into each? What capacity should each plant have? .

Apply its “global complementation” strategy to its part plants Each plant should be designed with the capacity to supply its regional factories .

Question 2 Should plants be able to produce for all markets or only specific contingency markets? .

Flexibility to supply other markets when their local market demand is weakened Plants must be able to supply at least one more market/region .

Question 3 How should markets be allocated to plants and how frequently should this allocation be revised? .

 Standard allocation should be optimized during the planning phase  Adjusted when necessary. reviewed either annually or biannually .

Question 4 What kind of flexibility should be built into the distribution system? .

Optimized regionally between the factories and their supplying parts plants It will be necessary for cost effective distribution to occur between plants & factories to non-local markets .

Question 5 How should this flexible investment be valued? .

Toyota to capture demand and revenue from non-local markets Toyota's supply chain will have greater access to markets and has the potential to capture greater value .

Question 6 What actions may be taken during product design to facilitate this flexibility? .

Uniformity among global products for flexibility among markets Product design engineers should craft elements that both maximize uniformity and satisfy local needs .

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