Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330

This exercise illustrates how when deciding among two or more competing plant location options, various decision factors (which can typically be characterized

as exogenous - in the environment external to the company, hence largely outside its control - or endogenous - internal to the company, therefore largely under its control) can be qualitatively identified, and how these factors can then be weighted to obtain an overall score for each competing location option.

An example of an exogenous factor is regulations or laws established by the government where the company operates. An example of an endogenous factor is the wages the company elects to pay, where not constrained by law.

You will use grid analysis, another important tool employed by operations managers, to support your recommendation.

a. List the factors your team considers key to the Toyota Motor Manufacturing Canada (TMMC): The Lexus RX 330 Line North American plant location decision, identifying these factors as either exogenous or endogenous, weighting them using your team's best judgment (stating any relevant assumptions or constraints), and assigning two scores to each factor: one for production of the Lexus RX 330 at TMMC, and one for production at a Toyota factory in the USA.

b. Using the scores from your team's weighted scoring model and working with regard to Ringo Sho and Nemawashi, make and support your recommendation for the RX 330 North American plant location - TMMC or a factory in the USA.

c. Include an executive summary.