CASE: Toyota Motor Manufacturing, U.S.A., Inc

On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product-Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution is readily apparent.

STUDY QUESTIONS:

1. Answer the following questions:

a) What is the cost of an average chord pull resulting in a stoppage of (i) 1 minute, (ii) 30 minutes, and (iii) 60 minutes?

b) Based on your answers in a) what is your qualitative assessment of the practice of letting employees stop the line?

c) Now, focusing on seats only: Do you think the line should be stopped when the station identifies a defective seat?

Note that only part 2a) is quantitative; both parts a) & b) relate to an average chord pull at any station. Part 2c) deals with the seat problem only.

2. As Doug Friesen, what would you do to address the seat problem? Where would you focus your attention and solution efforts?

3. Where, if at all, does the current routine for handling defective seats deviate from the principles of the Toyota Production System?

4. What is the real problem facing Doug Friesen?

Attachment:- Toyota Case Reading.rar