Toyota Motor Manufacturing, Usa, Inc. Case

Executive Summary

TMM was facing not only the quality of seat supplied by KFS but also the deviation on the TPS framework which violates the Jidoka Principle. The violation in the TPS framework was just a reactive solution to the increasing rate of seat defects. The seat defect issue was caused by the increasing variability of seat. This translates to a numerous change-over in the KFS production area that may lower their capacity. Rigorous review in capacity planning was needed to supply the same quantity of demand having more variation. The lead time given to KFS for this capacity planning was not sufficient. This translates to poor quality of product supplied to TMM and resulted to lower efficiency in TMM assembly. To address this issue, TMM should distribute the product load required to KFS and help them increase process capability and in return minimized seat defect quality. While doing this, sourcing seats to other suppliers is needed to allow KFS adjust to the new scenario and implement changes slowly to their process. Another recommendation is to distribute the quality control people to different station, this is to help resolve issues immediately and instill the Jidoka principle to workers. New workers should be partnered by a senior worker for guidance and proper training to the attitude and principles inside TMM.

Problem Statement/Key Issues

There are two key issues: increase of defects in seat sets from KFS and deviation to Jidoka practice at assembly operation of TMM. The secondary problem is the increase of andon pulls from 12 to 120 pulls per shift in the rear seat installation station. (Please Refer to Appendix 1 for Why-Why Analysis)

Supporting Argument

TMM faced problem on identifying the root cause of the defective seats and the faulty processes, which only disturbed the production operations and detracted the product sales. This also contradicted the firm TPS principles. TMM